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Newsletter N° 3 April 2018
E D I T O R I A L
This third issue of our
Newsletter provides more insights on
the work done by the Implementing
Agencies to consolidate the activities
initiated 4 years ago in the different
ACP countries and regions. The vari-
ous interventions are paving the way
to enhancing ACP producers' capacity
to play their role as commercial part-
ners in an environment dominated by
the last segments of the value chains,
leading to a pressurization of the
prices, with dramatic effects on the
livelihood of a vast majority of small-
holders.
In this regard, the various ini-
tiatives launched by the ACP-EU
Commodities Programme are seeking
to address the constraints met by the
family farmers, whether at technical,
organizational, financial or commer-
cial level.
The setting up of productive and
commercial alliances by ITC and
CARDI in the Caribbean region has
led to interesting developments, as
these structures, made of farmers,
processors and buyers, are offering
business opportunities for commercial
and financial partners. In Jamaica
and in Dominican Republic, coconut
and banana industries are starting to
merge their efforts and agendas for a
more concerted approach in defend-
ing the interests of their respective
constituencies.
Training activities have continued in
various areas of production and busi-
ness development. Through the
Farmers Field Schools, an approach
developed and implemented by the
FAO, the production of Irish potatoes
in Uganda and Rwanda has increased
Strengthening producer organizations to provide business
services to their members (GIZ)
The Genesis
The Farmer Business School (FBS)
approach has been developed by GIZ together
with local partners in 2010, during the first
phase of the Sustainable Smallholder Agri-
Business Programme. To sensitize smallholders
about the benefits of being member of a strong
farmer-based organization (FBO), one module of
the FBS curriculum is dedicated to this topic.
With support from the ACP-EU
Commodities Programme, FBS training has been
implemented since end 2014 for 171.866
farmers of whom 52,817 are women. Since
2010, GIZ partners have trained over 450,000
cocoa producers in FBS. FBS training enhances
farmers’ understanding of individual and group
business opportunities. This motivates them to
get organized to access input and product
markets as well as services.
Evaluations of FBS show that FBS-training
“incubates” producer organizations: 40% of
FBS-trained producer groups have registered
cooperatives. Evaluations also revealed that
there is still potential for improvement to
strengthen FBOs’ capacities to provide business
services to their members.
Cooperative Business School as next step after Farmer Business
School
Considering the scale of these impacts and
opportunities, there was a need to develop a
standard support protocol for large scale
outreach to existing and newly registered
producer organizations. As cooperatives are
member-based business entities, their core
business are relevant services of added value to
their members. However, comparison of
ACP-EU COMMODITIES
PROGRAMME
(To be continued on page 2)
2
A C P - E U C O M M O D I T I E S P R O G R A M M E
different training manuals revealed that emphasis
was on institutional development (registration,
statutory aspects, accountability), whilst the area of
business services of cooperatives were insufficiently
or not at all tackled.
Beyond institutional development, managing
teams of producer organizations need technical,
economic and organizational skills on the one hand,
and the buy-in of members to succeed with these
business services, on the other.
Contents of Cooperative Business
School
To bridge this gap, SSAB-CFLP has developed
the Cooperative Business School (CBS) training
programme. CBS targets smallholder-based
producer organizations and groups. It strengthens
capacities of these organizations to deliver services
to their members. Starting from practical examples,
farmer leaders and members of producer
organizations acquire knowledge and skills on
services that they can develop.
They also learn how to plan, price, provide and
admini ster them. Market or i entat i on,
entrepreneurship, knowledge of value chains, good
governance of farmer organizations, technical and
economic viability of services are underlying
principles that are crucial for cooperative business
success.
CBS is a full-week, 5-day training facilitated by
professional trainers using an adult learning
approach and creating learning opportunities
through experiential learning, business services and
related business models.
The contents and tools are relevant for all
types of producer organizations in West- and
Central Africa beyond cocoa, and can easily be
adapted to the context of other countries. The
manual is accompanied by a trainers’ guide that
contains short modules (max. 100 minutes long).
These modules can be used either for subsequent
trainings or separately, according to the needs and
interests of the producer organization. The didactic
approach combines presentations on business tools
with related interactive exercise, role games and
simulations of typical situations.
in a range between 50% to 100%. On
the other hand, GIZ is assisting farm-
ers organisations to raise their mana-
gerial and commercial capacities,
through its 'Farmer Business Schools'
training, initiated 7 years ago under
another initiative. This training pro-
gramme has been very successful and
is now being complemented by a
'Cooperative Business Schools' train-
ing, which focuses more on business
services that are provided by coopera-
tives.
Efforts to fight diseases remain a
key priority in all ACP regions. The
outbreak of Coconut Rhinoceros Beetle
is posing a huge threat to the coconut
industry in the entire Pacific region.
SPC is now engaging a harsh action to
try to limit the damages and control
the spread of this invading pest,
through a set of different actions,
mainly in Solomon Islands but also at
regional level.
The combination of actions men-
tioned above is meant to provide a co-
herent and comprehensive pack of
tools and services, aimed at increasing
the capacities of farmers, farmer or-
ganisations, and SMEs in the various
areas of activities. With the "New ap-
proach to ACP Group support for the
development of agriculture value
chains", the ACP Secretariat is seeking
to amplify this trend, by providing a
comprehensive platform of comple-
mentary tools, enhancing the dialogue
among all programme partners, and
filling in the financial gap between the
family farmers and MSMEs, and the
financial institutions.
Viwanou GNASSOUNOU
Assistant Secretary General Sustainable Economic Develop-ment and Trade
(From page 1)
(To be continued on page 3)
3
A C P - E U C O M M O D I T I E S P R O G R A M M E
I m p l e m e n t a t i o n o f Cooperative Business School
Implementation of CBS builds on
partners experienced in FBS. Across
Côte d’Ivoire, Ghana, Togo, Nigeria and
Cameroun, 78 partners trainers with a
good FBS track record have been
selected and qualified to deliver CBS
training to management teams and
members of cooperatives. Emphasis is
put on cooperatives that benefitted
earlier from FBS training. Rolling-out
started in 2017 and as at end of March
2018, a total of 1,360 leaders and
members of 232 cooperatives have
benefited from training.
P a r t i c i p a t i n g c oope ra t i v e
delegations comprise 2 cooperative
leaders and 2 to 4 members. Training is
concluded with a round to identify
priority change projects. Certificates of
participation are issued to cooperatives
only if they provide feed-back that they
have shared lessons learnt during the
training and envisaged change projects
with their members.
Towards sustainability of Cooperative Business School
Implementing partners have
expressed interest in CBS from the very
beginning. Their priorities comprise (i)
strong and operational cooperatives as
business entities of smallholders, (ii)
enhancing professional organization of
youth and (iii) youth employment in the
framework of service provision of
producer organizations. Cost-sharing
agreements could thus be achieved
early in Ghana, Togo and Côte d’Ivoire.
Considering the approaching end of
CFLP and SSAB, business models have
been developed for partners to allow
them to mobilize funds for continued
CBS training beyond programme
duration and to prepare trainings based
on producers’ payment of fees. The
average cost is between 280 and 300
euros per participant.
Unlocking the required invest-ment in the Jamaican Coconut Sec-tor (ITC/CARDI)
Market trends
for coconut and as-
sociated indicate tre-
mendous opportuni-
ties for local agri-
business industries
in Jamaica and the
Caribbean. There are
untapped opportuni-
ties for thousands of
smallholder farmers
and SMEs to raise
incomes and profit-
ability by connecting
them to local, re-
gional and interna-
tional value chains
and by developing required productive and marketing
capacities. Indeed, global demand for coconut products
has remarkably increased. Demand for coconut water in
particular is projected to grow 25% per year during
2017-2023.
However, over the last 15 years, supply growth
has been sluggish. This is due to lack of information
and stakeholder collaboration and organization around
existing opportunities. Diseases such as lethal yellow-
ing and sustained lack of investment have depressed
outputs and returns over decades. In addition, financial
and technological constraints contribute to the slow
pace of production and industry expansion. Given the
new market opportunities, quality declared coconut
seedling supply seems to be the major bottleneck;
without rapid multiplication and availability, stake-
holders will not venture into revitalization of coconut
production.
The ACP/EU funded project “Coconut Industry De-
velopment for the Caribbean” is contributing to address
the constraints. In order to secure the required invest-
ment and tap the potential opportunities, ITC and
CARDI are partnering with the Government of Jamaica,
Coconut Industry Board, local firms and other relevant
stakeholders to facilitate productive and commercial
Value Chain Alliances (under “Alliances for Action”).
Promoting strong investment and financial inclusion in-
struments is key to unlocking the potential of the in-
dustry. As part of a regional effort that started with Ja-
maica, the first step to achieve this objective was to
enable the coconut industry, financial institutions, gov-
ernment and research stakeholders to explore options
for improving finance and investment supply.
(To be continued on page 4)
(From page 2)
4
A C P - E U C O M M O D I T I E S P R O G R A M M E
Industry stakeholders gathered in King-
ston in March 2018, in the context of the
ACP/EU project, and modeled the projected
economic and financial impacts of investing in
Jamaica’s coconut sector.
Three investment opportunities were consid-
ered:
Investments in revitalized coconut pro-
duction (seedlings and nurseries);
Increased investments in planting and
farming coconuts with focus on domes-
tic market;
Investments in coconut water process-
ing for export.
Investments were explored over a 10-
year period, and assumed an additional
growth of 10,000 acres per year, with 87
trees per acre and an average yield of 60
nuts per tree. A price of J$75 per nut was
considered. These numbers are based on ex-
isting conditions and the extent of under-
utilized plantations in Jamaica currently.
In the coming months, the process will
be repeated in Dominican Republic, Guyana
and other Caribbean states. Inclusive invest-
ment and value chain partnerships will pave
the way for the mobilization of finance and
commitment by lead firms, local institutions
and government.
Range of products marketed by Barnhill Organics, a coconut processor in Jamaica
Initial results from economic analyses
(project life 42 years)
Total investment need
(total per 10y) – (total=A +B
US$ 399.18 million
A. Investment - seedling produc-
tion
US$ 16.82 million
B. Investment – farming US$ 290.49 million
C. Investment – processing US$ 91.87 million
Aggregate expected Internal
Rate of Return (from A -after 10
26%
IRR (from B -after 10 years) 20%
IRR (from C -after 10 years) 16%
New industry jobs created 10,631 jobs
Smallholder farmers reached Up to 40,000 farmers
New tax revenues (per year after
year 6 and during 36 years)
US$ 11.85 / 13.52
million
Export value (per year after year
6 and during 36 years)
US$ 261/ 291 million
Estimated climate value (per
year after year 6 and during 36
2m tCO2e
Site visit during training with farmer group by Coconut Industry Board and RADA, Portland, Jamaica, March 5th
2018
(From page 3)
5
A C P - E U C O M M O D I T I E S P R O G R A M M E
Introducing BANELINO, Partner of the “Alliances for Action” in the Dominican Re-public (ITC)
Banelino, a family farmer organization
producing and commercializing Fairtrade or-
ganic bananas in the Dominican Republic,
brings together some 340 smallholder farmers.
Since 2017, it has become a member of the
National Coconut Stakeholder Platform. Such
platforms facilitate public/private partnerships,
develop policies and networks along the value
chain and build capacities of Alliances which
include the producers.
As a strategy to improve its existing pro-
duction and business models, Banelino is in-
vesting in organic coconut production and as-
sociated value-added product manufacturing
Coconuts is a good business for Banelino be-
cause:
Diversifying production is vital for resil-
ience and risk management; in particular
with climate change effects that result in
floods, drought and soil deterioration
causing loss of income and crops
Banelino can complement its income and
improve its farmer members’ cash flow
by diversifying markets, crops, value
adding products and commercialization
channels.
The Banelino family farmer members
have become a strong advocate of crop diversi-
fication for both economic and environmental
resilience and joined the “Alliances for Action”
network – a strategy of partnerships for sus-
tainability that promotes income-risk diversifi-
cation for smallholder farmers – to boost in-
come and improve livelihoods. This initiative
forms part of the Intra-ACP project funded by
the EU for the Coconut Industry Development
for the Caribbean and jointly implemented by
the UN’s International Trade Centre (ITC), the
Caribbean Agricultural Research and Develop-
ment Institute (CARDI), The Ministry of Agri-
culture and Junta Agro Empresarial Dominicana
(JAD). As an Alliance member, Banelino has
benefited from technical assistance including
coconut GAP and seed multiplication as well as
market support to engage in diversification
strategies and expand their farmers’ business
while strengthening their resilience against
climate change.
“When my farm was flooded, only the coco-
nut trees survived. With support from ITC
and the Banelino Farmer Association, I will be
able to diversify production, supplement my
income, and secure my family’s well-being”
shares Maria, a banana – and now coconut –
producer from the Dominican Republic.
Through technical assistance by the co-
conut project and JAD, Banelino has recently
secured the finance required for investment
in productive capacities and the purchase of
31,000 coconut seedlings. The loan amount
was USD 125,000 from the EC’s Banana Ac-
companying Measures (BAM), a support
package for banana-exporting countries in
the ACP region designed to foster competi-
tiveness and encourage crop diversification.
As a result Banelino’s coconut production is
expected to begin in April 2018.
Banelino has become an example for
the country and region on how to form pro-
ductive, commercial and financial alliances
that boost income and resilience through the
connection of banana and coconut value
chains – with guidance and support from the
project. Addressing climate change and its
impacts is high on the new sustainable devel-
opment agenda, with people and communi-
ties experiencing dramatic repercussions.
Taking urgent action that leaves no one be-
hind is a priority.
Maria, Organic Coconut and Banana Farmer, Dominican Republic
6
A C P - E U C O M M O D I T I E S P R O G R A M M E
Increasing sustainable mar-ket-led production intensifica-tion of cassava, potato and yam (FAO)
Thanks to the support of the ACP-EU Com-
modities Programme for the Roots & Tubers (R&T),
FAO is promoting a series of activities in the area
of cassava, yam and Irish potato production inten-
sification. The most relevant ones are the Farmer
Field Schools (FFS) for roots and tubers. Only in
Rwanda, 2.745 farmers have accessed these in-
plot trainings, followed by 780 in Ghana and 300 in
Benin.
Among the outstanding achievements of
these activities, in Uganda (3.512 farmers as of
2017), the production of the majority of potato
beneficiary farmers almost doubled after the FFS
trainings (from 6 bags of 120 Kgs to 11 bags of
120 Kgs of potato seeds) while in Rwanda, Im-
proved Practices (Integrated Pest Management)
resulted into 46 percent increase in production
compared with traditional farmer practices for the
Kinigi potato variety. Efforts are in place to dupli-
cate this activity in the neighbouring regions of
Northern Benin, targeting the yam sector.
In addition, as part of the Commodities Pro-
gramme, FAO organized a Regional Workshop on
‘’Experience Sharing on Cassava Production and
Protection” in Kumasi, Ghana, from 05 to 07 De-
cember 2017. Representatives of farmer organisa-
tions and public institutes joined from the countries
where the project is supporting the cassava value
chain (e.g. Benin, Cameroon, Ghana, Ivory Coast,
Malawi)
The agenda of the workshop included
some technical training and related field
visits.– The training were delivered by some
of the most well-known centers of excel-
lence for cassava and yam production and
protection in Africa, namely: (i) the Inter-
national Institute of Tropical Agriculture
(IITA); (ii) the Crop Research Institute
(CRI): (iii) the Kwame Nkrumah University
of Science and Technology (KNUST); (iv)
the African Agricultural Technology Founda-
tion (AATF); and (v) the West and Central
African Council for Agricultural Research
and Development (CORAF/WECARD).
The workshop also included sessions
aimed at sharing knowledge, experiences,
results and lessons learned from the pro-
ject’s implementation. Field visits to the
CRI and KNUST were organized to learn
about the breeding activities and the in-
vitro multiplication of the planting material
used to renew material with virus-free
planting tools and innovations in cassava
mechanization. These trainings and knowl-
edge sharing spaces, will serve to benefici-
aries countries to develop new or improve
existing varietal catalogues and strengthen
the overall system of cassava production.
FFS Demonstrating best potato production techniques in Chogo, Bukimbiri, Uganda
Participants of the field training to the Crop Research Institute, Ghana, organized by FAO under the ACP-EU Commodities Programme
7
A C P - E U C O M M O D I T I E S P R O G R A M M E
Coconut Rhinoceros Beetle Outbreak Threatens Pacific in-dustry (SPC)
While countries such as Samoa and Fiji,
which have been impacted by the Coconut Rhi-
noceros Beetle-Pacific type (CRB-P), still struggle
to control beetle populations, an outbreak of a
new variant of the rhinoceros beetle, CRB-G, has
occurred recently. In the absence of control, the
beetle will spread throughout the Pacific, threat-
ening palm industries, food security and putting
at risk the considerable investments in develop-
ing the Pacific coconut industry made by the EU-
funded Coconut Industry Development for the
Pacific (CIDP) programme and other pro-
grammes.
Responding to the call by the Government
of Solomon Islands and other stakeholders for
concerted action against the beetle, the project
steering committee of the CIDP programme has
agreed to support urgent action to help manage
CRB in the Solomon Islands, and to control the
spread of this damaging pest to other Pacific
countries. The CIDP is a component of the ACP-
EU Commodities Programme, being imple-
mented by the Pacific Community (SPC) to the
benefit of the 15 ACP Pacific Member States,
namely: Cook Islands, Federated States of Mi-
cronesia, Fiji, Kiribati, Marshall Islands, Nauru,
Niue, Palau, Papua New Guinea, Samoa, Solo-
mon Islands, Timor Leste, Tonga, Tuvalu and
Vanuatu. Stakeholders who joined the call for
concerted action include the palm and coconut
industries in the Solomon Islands, SPC, AgRe-
search NZ and the University of Guam.
Activities identified in consultation with
Solomon Islands to control the pest include:
Development of a regional communica-
tions plan and of awareness materials for
both Solomon Islands and regional use.
Enhanced surveillance activity at ports,
which includes procurement of trap mate-
rials and pheromones as well as damage
symptom assessment materials
Diagnostic training on beetle and symp-
tom recognition and surveillance materi-
als for focus groups (boat owners, ports
authorities etc). Damage assessment
training as a tool for monitoring beetle
population will also be an integral part of
this training.
To date, efforts to confront the beetle
have been initiated with funding from MFAT
(NZ), ACIAR (Australia) and USDA. The out-
break in Solomon Islands is particularly con-
cerning as it is highly damaging, has entered
commercial plantations, and is threatening
food security and the economic viability of the
coconut and oil palm industries. In Solomon
Islands, the coconut industry contribute
SI$150-200 M to rural economies, and provide
essential food and economic support to the en-
tire rural population. The oil palm industry is
the major employer in the islands, and pro-
vides SI$150-200 M (15-20 million Euro) in
export income.
Given the scale of the problem, additional
efforts are required to provide any real level of
protection to other Pacific countries. Hence the
importance of the CIDP contribution, which will
also support development of a regional biose-
curity system plan for CRB-G in the Pacific.
Example of damages caused by Coconut Rhinoceros Beetle
8
A C P - E U C O M M O D I T I E S P R O G R A M M E
Private sector pilot pro-jects awarded in Samoa and Vanuatu (SPC)
The Coconut Industry Development for
the Pacific (CIDP) programme has awarded pilot
project support to six enterprises in Samoa and
Vanuatu. The support is in the form of technical
assistance and equipment. The purpose of di-
rectly supporting pilot projects is to provide
know-how and models for improved coconut
production, processing and marketing that can
be replicated in the region, thereby improving
opportunities for the many smallholders who
depend on coconuts for their livelihood.
An open competitive expression of inter-
est (EOI) process was undertaken and a total of
15 EOIs were received. EOIs were assessed for
compliance to eligibility criteria and, at national
level, governments verified that compliant EOIs
aligned with the national development priorities
for the sector.
An independent business development
expert then undertook due diligence on the
short-listed EOIs and made recommendations
to a technical advisory group (TAG) – an inde-
pendent panel of experts in business, market-
ing, financing and development.
The TAG undertook an in-depth analysis
of the shortlisted proposals, based on the due
diligence reports and the members’ own areas
of expertise, and selected the top-ranking pro-
posals for CIDP support. A priority criterion for
assessment was the impact the project would
have on smallholder livelihoods. The TAG’s rec-
ommendations were then referred to the gov-
ernments of Samoa and Vanuatu for final en-
dorsement.
The enterprises endorsed for support are
listed below.
Samoa
• Mailelani Samoa Body Care. Mailelani has
developed a wide range of coconut-based
body care products. The support will im-
prove production processes and expand lo-
cal and international marketing.
• Samoa Coconut Cluster (SCC). SCC pro-
duces organically certified virgin coconut oil
for local and export markets. The support is
designed to improve the quality of VCO pro-
duced and diversify the range of products
produced by SCC.
• Serendi Coco Samoa Ltd. Serendi Coco
processes organic and fair trade certified
coconut oil for export markets. The support
is designed to develop seed supply and re-
planting of smallholder plantations, leading
to medium-term improved supply and
higher incomes for suppliers.
• Women in Business Development Inc
(WIBDI). WIBDI exports organically certi-
fied virgin coconut oil to various markets,
including The Body Shop International. The
support will allow production of a deodor-
ised VCO, opening up new market opportu-
nities.
Vanuatu
• Elcress Agra. Elcress produces organically
certified coconut oil for the cooking oil mar-
ket. The support intends to develop a coco-
nut oil product that does not solidify in tem-
perate conditions and to build the capacity
of coconut farmers through an ongoing
‘academy’ training programme.
• Ambrym Coconut Farmers Cooperative So-
ciety Ltd (ACFC). ACFC supplies coconuts to
produce virgin coconut oil to the Virgin Co-
conut Oil Factory, and the Happy Islands
Coconut Oil, which market the product. The
support will improve production on the co-
conut plantations, leading to increased pro-
duction.
Women at work at Ambrym Coconut Farmers Cooperative
Society Ltd (ACFC)
9
A C P - E U C O M M O D I T I E S P R O G R A M M E
A C P - E U C O M M O D I T I E S P R O G R A M M E
A joint initiative
Implemented by
ACP Secretariat – Avenue Georges Henri 451, B - 1200 - Brussels, Belgium
email : [email protected]
Tel: +32 2 743 06 00
Fax: +32 2 735 55 73
This publication is an initiative of the ACP Secretariat funded by the European Union . Its content is the sole responsibility of the technical
assistance team.
SOME FACTS - Did you know that:
COCOA
World cocoa production is forecast to reach 4.748 M tonnes in 2017/18, of which over 70% will
come from West African ACP countries.
Côte d’Ivoire is one of three countries growing ruby cocoa beans used to manufacture the recently
released ruby chocolate which was put on the market in September 2017.
CASHEW
Some 1.5 million ACP smallholder farmers account for roughly 53 % of the world’s cashew produc-
tion or about 1.2 million tons.
However, productivity stands between 180 to 640 kg/ ha in African countries, compared to as much
as 1,000 – 1,500 kg/ ha in India, Vietnam or Brazil….
Less than 10% of the African output is processed on the continent.
COCONUTS
In 2016, the Pacific and Caribbean countries represented respectively 4% and 1% of the estimated
60 billion coconuts produced worldwide, Southeast Asian countries accounting for 84%
Coconut water is projected to grow at more than 25% per year over 2017-2023, reaching approxi-
mately US$8.3billion in 2023
The intra-regional trade for coconuts in the Caribbean region has risen from 12% in 2008 to 75% in
2014, and from 29% to 36% for all products
In Dominican Republic, the average annual price quadrupled between 2002 and 2017 (from US$7.1
per 100 nuts to US$28.9)
COTTON
The fibre from one cotton bale (227 Kgs) can produce up to
215 pairs of jeans, or 2,100 pairs of boxer shorts, or
250 single bed sheets, or 3,000 nappies, or
1,200 t-shirts, or 4,300 pairs of socks.
Cotton can absorb up to 27 times its own weight in water
In 2015/16, there were 25 cotton-producing countries in Africa,
Outputs expressed in cotton fibre ranged from 1 000 tonnes in Burundi, to some 200 000 tonnes in
Burkina Faso and Mali