Commercial Strengthening of Smallholder Cocoa Production

Overview:

Launched in 2009, the three-year, $2.9 million Commercial Strengthening of Smallholder Cocoa Production (CSSCPP), funded by the Bill & Melinda Gates Foundation (2009-2012), aimed to stimulate capital investment and enhance the lives of farmers in the Ghanaian cocoa business. CSSCPP promoted improved production techniques and increased access to inputs, finance and crop diversification. Through the use of strategically designed matching grants, the project also leveraged $5.8 million in private investment.

CNFA, in collaboration with the National Cocoa Producer Association, Kuapa Kokoo Farmers Union and Chemico Limited, provided support to cocoa farmers through training, certification programs, land tenure and association development.

Approach:

1. Improved Association Development: To promote more convenient access to inputs, training, finance and collective marketing, CNFA supported farmers in organizing into groups, clusters and associations, allowing for better service of the maximum number of farmers through project activities to give farmers easy access (within six kilometers) to products and services.
2. Developed Integrated Warehouse: CNFA collaborated with agro-input suppliers and farmer associations to build model pilot mini-warehouses to serve cocoa producers. Each mini-warehouse had two separate areas: a cocoa buying and certification area operated by local buying companies, and a room for the producers to use for association meetings, trainings and other events. A small, independent agro-dealer shop selling agro-inputs (seeds, fertilizers and crop protection chemicals) was typically located nearby. By offering inputs for many crops rather than just cocoa, these agrodealers encouraged crop diversification.
3. Improved Technical Capacity and Certification: Farmers and agro-dealers received technical training on cocoa production. In addition, demonstration plots and farmer field days organized with input suppliers encouraged crop diversification and improved cocoa production practices. After determining the cost-benefit tradeoffs of various certification schemes, the project provided information and training for farmers who chose to secure internationally recognized certifications like Fair Trade, UTZ and Rainforest Alliance. As a result of project training and certification services, beneficiary farmers’ yields increased by 189% and incomes increased by 309%.
4. Stimulated Capital Investment: CNFA conducted an extensive study of land tenure issues as they impact the cocoa industry, focusing on the impact on the very small-scale producers, women and sharecroppers. In addition, CNFA piloted land-titling training for landowners and worked with financial institutions to pilot new credit and crop insurance to mitigate farmer risk.

Overview:

CNFA implemented the four-year (2006-2010), $20 million Agribusiness Development Activity (ADA), funded under the Millennium Challenge Georgia Fund (MCG) as part of the Compact between the Government of Georgia and the Millennium Challenge Corporation (MCC), to catalyze local matching investments from Georgian partner enterprises and farmers. Through matching grants, farmers received access to innovative agricultural production technology, inputs, quality control practices and output marketing as well as stronger market linkages and reliable sources of inputs and methods to market higher-value products.

Approach:

1. Supported Local Enterprise Development: ADA awarded resources to groups of farmers and enterprises applying innovative business solutions and technology to boost household incomes and net revenues. Applications submitted included a business plan built for domestic market demand.
2. Facilitated Improvements to Agricultural Value Chains: Value chain improvements were accomplished through technical assistance via long- and short-term consultants and volunteers, formal and informal training and access to grants and capital mobilization proposed by bidders responding to ADA’s request. The Value Chain Initiative built strategic commercial linkages between producers, processors and markets in promising Georgian agricultural sectors, including dairy, meat and poultry products, fruits, citrus, nuts, vegetables and potatoes.
3. Conducted Rural Outreach: ADA launched a mass media campaign to empower Georgians to make better choices about their business environment and families through access to information.

Overview:

The five-year, $90 million Pakistan Agribusiness Project (TAP), funded by USAID/Pakistan, strengthened local capacity within key value chains to increase sales in domestic and foreign markets. From 2011 to 2016, the project bolstered economic growth, created employment opportunities and amplified the competitiveness of horticulture and livestock value chains. TAP also increased the effectiveness of smallholder enterprises, enhanced agriculture productivity and was the first USAID economic growth program led by a Pakistani organization, the Agribusiness Support Fund (ASF).

As ASF’s stateside partner, CNFA assisted ASF in strengthening grant management, accounting, reporting, monitoring and evaluation and environmental and information management systems and procedures, as well as providing technical assistance for the development of horticulture and livestock value chains.

Approach:

1. Supported with Technical Assistance: CNFA provided capacity-building support to farmers, associations and agribusiness enterprises across the target value chains.
2. Provided Grant Funding: Through TAP, CNFA customized cost-sharing grant products across the key value chains.
3. Improved Agribusiness Marketing: Provided international support for agricultural marketing and brand development to identify and capitalize on high-price market opportunities and develop linkages.
4. Promoted Sub-Sector Development: CNFA established several “Value Chain Platforms: to promote the development of specific subsectors and create linkages between the stakeholders involved in value chains.

Monitoring and Evaluation and Data Collection: CNFA provided technical support regarding USAID regulations, baseline studies, participatory rapid horticulture and livestock appraisal assessments, gender analysis, data collection tools, development of indicators and training project staff in development evaluation to comply with ASF’s Performance Monitoring Plan (PMP). This included designing the activity reporting formats, developing the data entry, analysis and reporting software and defining the data in-and-outflow mechanism. This assistance also included efforts to build the capacity of TAP regional teams in the operation of the monitoring and evaluation (M&E) systems.

Environmental Compliance: CNFA helped ensure that the project and its associated grant activities complied with USAID environmental regulations. This cooperative effort drew on CNFA’s experience in knowledge management, compliance, M&E studies and reporting environmental impacts of project interventions. CNFA spearheaded the Environmental Assessment (EA) of the Agribusiness Project, which involved identifying potential environmental and social issues that could develop as a result of project activities. As a result of CNFA’s technical assistance on the EA, USAID approval was obtained, clearing the way for large grants. CNFA also helped ASF by training regional M&E staff and developing an environmental compliance system that incorporated USAID’s approval for grant activities.

Geographical Information System (GIS) and Management Information System (MIS): The CNFA GIS team provided technical support to the Agribusiness Project by developing GIS maps reflecting project regions, value chains, activity sites and beneficiaries. In addition to developing more than 300 maps, the CNFA team used Google Earth to create animated video tours for the targeted value chains. GIS support in the design, implementation and monitoring of the project accomplished the following:

• Mapped project interventions and beneficiaries across the targeted value chains and regions.
• Provided environmental screening on project activities.
• Tracked project progress on activities and performance indicators.
• Identified value chain clusters with respect to regions and value chain actors including producers, processors, market agents and service providers.
• Located exact locations of project beneficiaries and grantees.

CNFA also initiated the development of a Geographical Information-based Decision Support System, available on- and offline for project data management to provide centralized information readily available to all relevant stakeholders. CNFA supported the Agribusiness Project in its development, maintenance and transfer of M&E and information technology systems for impact assessment and reporting to a web-based, integrated management information system (IMIS). This system automated the functions of human resources, finance, procurement, grants management, M&E and GIS to increase the efficiency of internal communication and improve decision-making capacity of management.

Capacity Building: CNFA provided technical assistance and capacity building for both TAP staff and beneficiaries. The CNFA Capacity Building Advisor assisted TAP in various project components, including short-listing business development service providers for a more comprehensive TAP capacity building grant. CNFA’s team supported needs assessments, drafting of scopes of work and the development of implementation plans for a capacity development program for Farm Service Centers (FSCs) in FATA, a market linkages program between National Food Limited and progressive red chili farmers and a capacity development program for representatives of the horticulture and livestock value chains in the AJK region. Additionally, CNFA assisted ASF in organizing exposure visits for representatives of the FSCs from FATA.

Overview:

The five-year (2004-2009) USAID-funded Agribusiness Development Project (ADP) in Moldova, implemented by CNFA, improved the international competitiveness and trade performance of the country’s high-value agriculture sector, ultimately increasing rural incomes and employment. The $19.2 million project was successful in preparing Moldovan enterprises to meet the challenges of the international market. ADP strengthened the capacity of all participants in the value chain in Moldova, including producers, processors, aggregators and exporters. The approach emphasized the identification of markets for individual products, the use of value-chain drivers, production of marketable products, financing for replication and the dissemination of market information.

Approach:

1. Developed High-Value Agriculture Sector: ADP focused on developing the high-value agriculture sector by increasing the quality of crops through new technologies, including cold storage, better pre- and post-harvest handling techniques and improved seeds. By the end of the project, participating firms had exported over $105 million in processed agricultural products, an increase of more than 23 percent.
2. Promoted International Quality Assurance & Certifications: To boost exports to higher-value international markets, ADP facilitated largescale gains in crop quality assurance and certification in food safety and quality standards.
3. Expanded Access to Markets: Due to Russia’s 2005 embargo on Moldovan fresh fruits and vegetables, ADP began identifying and cataloging new markets for Moldovan produce. Target market conformation studies were conducted in the Baltics, Belarus, Germany, Poland, Romania and Ukraine to assess the demand and market qualifications for 12 products, including apples, sweet peppers, tomatoes, table grapes and other fresh fruits and vegetables. ADP conducted detailed rapid market appraisals in Romania, Russia and Ukraine to give greater market detail and identify specific buyers. Domestic and international study tours followed to allow more than 1,500 people to make important international buying contacts.
4. Leveraged Private Investment Through Matching Grants: ADP employed matching grants to increase local buy-in and promote investment in new technologies, awarding 23 producers and processors with grants worth $1.3 million to implement modern technologies including cold storage and new drying facilities. With a matching ratio of two-to-one, the grants leveraged an additional $2.9 million from local enterprises. Producers were able to increase their annual sales from $500,000 to over $4.2 million, almost $2 million in high-value products. Similarly, processors increased their sales of high-value products from $1.3 million to $6.1 million.
5. Promoted Market Information: To ensure producers and processors had access to the latest market information and training material, CNFA worked with the National Extension Network, a local Moldovan non-profit development agency, to create Export Moldova. Export Moldova provided market surveys and training materials on international safety certifications, modern agricultural practices and planning and management.