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

Through the three-year (2009-2012), $5.1 million USAID-funded Access to Mechanization Project (AMP), CNFA used a commercially sustainable and market-oriented methodology to develop machinery service providers across Georgia. Building on CNFA’s existing nationwide presence, AMP combined matching investments, commercial finance and technical training to establish Machinery Service Centers (MSCs) and provide custom machinery services to small farmers.

Approach

1. Provided Volunteer Technical Assistance: Utilized local consultants and F2F volunteers to provide technical assistance to ensure sustainable operation and long-term availability of services.
2. Improved Competitive Environment for Machinery Services: AMP improved the competitive environment for machinery services by reducing the cost to farmers as a result of increased supply of machinery and service businesses.
3. Improved Access to Finance: Leveraged grant funds with local partner matching investment, including large-scale involvement of commercial finance to maximize impact and investment in rural economy.

Ongoing support from CNFA Farmer-to-Farmer (F2F) volunteers was an integral part of implementing AMP. A total of 25 volunteer assignments, focused primarily on conducting various types of trainings, were completed during the project. Through F2F, AMP:

1. Business Management Training Sessions: F2F volunteers conducted a wide array of trainings on business management. With the assistance of the AMP Training Coordinator, volunteers selected local trainers, finalized business and extension training topics and developed standardized training materials for dissemination.
2. Financial and Credit Trainings: F2F volunteers led basic financial trainings for AMP’s farmers on credit lending, record keeping and risk assessment, which were especially useful for farmer clients looking to better understand their budgets and recognize when they could rent equipment from MSCs.
3. Environment Trainings: AMP organized volunteer-led trainings focused on environmentally friendly agricultural practices for MSC owners and trainers of a local extension training provider consortium. Training was conducted on irrigation and drainage systems, pest and disease control, technologies of land cultivation and agricultural mechanization.
4. Marketing and Communications Support: AMP fielded volunteers to help develop communications and marketing strategies for MSC owners, demonstrating the services they could offer. Additionally, volunteers worked with the Georgian Public Broadcaster to design the format of the Agricultural TV show “Farmer’s Day” and create a full-scale business plan to facilitate the funding of the show.

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.