BDS and Value Chains Annual Conference · The SMART program developers worked closely with local producers, farmers and the women who process the goods, to create links with strategic

BDS and Value Chains Annual ConferenceBDS and Value Chains Annual Conference

The Case for LebanonThe Case for Lebanon

Stimulating Markets and Rural Transformation Stimulating Markets and Rural Transformation Program (Program (SMARTSMART))

Table of ContentsTable of Contents

1. Overall Objective of 1. Overall Objective of ConferenceConference

2. Overview of the Case study 2. Overview of the Case study ““Stimulating Markets and Stimulating Markets and Rural Transformation (SMART)Rural Transformation (SMART)”” ProgramProgram

3. SMART 3. SMART -- ObjectiveObjective-- Methodology of ProgramMethodology of Program-- Results & ImpactsResults & Impacts

4. Lessons Learned 4. Lessons Learned

Objective of ConferenceObjective of Conference

To learn about case studies from the region that are To learn about case studies from the region that are demonstrating:demonstrating:

•• the ability to benefit many people living in relative the ability to benefit many people living in relative poverty, through Private Sector Development (poverty, through Private Sector Development (PSD)PSD)

•• Focus on the Focus on the development of service markets and value development of service markets and value chainschains

•• has good practice in related themes, such as value has good practice in related themes, such as value chain development that reaches small producers chain development that reaches small producers including women entrepreneurs, or reform of the legal including women entrepreneurs, or reform of the legal and regulatory environment for small businessesand regulatory environment for small businesses



2. Overview of the Case Study 2. Overview of the Case Study ““Stimulating Markets and Stimulating Markets and Rural Transformation (SMART)Rural Transformation (SMART)”” ProgramProgram

3. SMART 3. SMART -- ObjectiveObjective-- Methodology of ProgramMethodology of Program-- Results & ImpactsResults & Impacts

4. Lessons Learned4. Lessons Learned

A Case Study from Lebanon:A Case Study from Lebanon:

Stimulating Markets and Rural TransformationStimulating Markets and Rural Transformation((SMARTSMART):):

The case was selected due to itsThe case was selected due to its•• Ability to benefit many people living in relative poverty, Ability to benefit many people living in relative poverty,

through Private Sector Development (PSD). through Private Sector Development (PSD).

•• Value chain development that reaches small producers Value chain development that reaches small producers including women entrepreneurs.including women entrepreneurs.

Case Study from Lebanon:Case Study from Lebanon:

IntroductionIntroduction

•• SMARTSMART is a 3 year development program (2002is a 3 year development program (2002--2005) 2005) funded by the USAID and implemented by the Young Menfunded by the USAID and implemented by the Young Men’’s s Christian Association (YMCA) in Lebanon.Christian Association (YMCA) in Lebanon.

•• SMARTSMART was translated from another project supported by was translated from another project supported by YMCA/IRDP that focused exclusively on rural development in YMCA/IRDP that focused exclusively on rural development in terms of infrastructure (public roads, water reservoirs). terms of infrastructure (public roads, water reservoirs).

•• YMCA developed YMCA developed SMARTSMART program to convert a localprogram to convert a local--level level cottage industry into a viable, national, regional and cottage industry into a viable, national, regional and international sustainable economic development venture.international sustainable economic development venture.

•• The program is rural development scheme. It tapped into The program is rural development scheme. It tapped into traditional, gendertraditional, gender--based skills of food processing and based skills of food processing and preservation.preservation.

•• One goal was to transform the womenOne goal was to transform the women’’s cooking and food s cooking and food preservation knowpreservation know--how into scientificallyhow into scientifically--based, based, standardized food processing techniques while still standardized food processing techniques while still maintaining the maintaining the ‘‘traditionaltraditional’’ taste and feel of the products.taste and feel of the products.

•• An end product of the program was the establishment of the An end product of the program was the establishment of the all natural, preservative and additive free products which is all natural, preservative and additive free products which is selling locally, regionally and globally in the UK and USA selling locally, regionally and globally in the UK and USA markets among others. markets among others.

Case Study from Lebanon:Case Study from Lebanon:

IntroductionIntroduction



2. Overview of the Case Study 2. Overview of the Case Study ““Stimulating Markets and Stimulating Markets and Rural Transformation (SMART)Rural Transformation (SMART)”” ProgramProgram

3. 3. SMARTSMART Business Development Services Business Development Services -- ObjectiveObjective-- Methodology of WorkMethodology of Work-- Results & ImpactsResults & Impacts


Stimulating Stimulating markets and markets and

rural rural transformation transformation

programprogram

SMARTSMART

BDS ProviderBDS ProviderBDS FacilitatorBDS Facilitator

YMCA YMCA USAID USAID

Wom

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al

Wom

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Area

s Ar

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Beneficiaries Beneficiaries

SMART ObjectivesSMART Objectives

Provide income generation opportunities for rural Provide income generation opportunities for rural women by providing them with the means for women by providing them with the means for sustainable self reliance incomesustainable self reliance income

Add value to agricultural surplus previously wasted due Add value to agricultural surplus previously wasted due to inability to properly market and turn around product to inability to properly market and turn around product in a timely mannerin a timely manner

Link farmers and food processors to the market directlyLink farmers and food processors to the market directly

Increase agricultural productivityIncrease agricultural productivity

Promote natural food production Promote natural food production

Inbound Inbound logisticslogistics OperationOperation Outbound Outbound

logisticslogistics Marketing Marketing ServicesServices

LogisticsLogistics MarketingMarketing

Receiving, Receiving, storing, storing, transportationtransportation

All value All value ––creating creating activities that activities that transform the transform the inputs into final inputs into final productsproducts

Activities Activities required to get required to get the finished the finished product to the product to the customercustomer

Activities Activities associated associated with getting with getting buyers to buyers to purchase the purchase the productproduct

Activities that Activities that maintain and maintain and enhance the enhance the product value product value (after sales (after sales services0services0

The SMART program developers worked closely with local producersThe SMART program developers worked closely with local producers, , farmers and the women who process the goods, to create links witfarmers and the women who process the goods, to create links with h

strategic partners and to assist in the setstrategic partners and to assist in the set--up, establishment and ultimate up, establishment and ultimate marketing and sales of their products. marketing and sales of their products.

SMART Provided Marketing Support SMART Provided Marketing Support SMART Provided Logistical Support SMART Provided Logistical Support

SMART Methodology of Work:SMART Methodology of Work:








Activities that Activities that maintain and maintain and enhance the enhance the product value product value (after sales (after sales services0services0


SMART Logistical Supports come in 4 consecutive steps :SMART Logistical Supports come in 4 consecutive steps :

1.1. Select a townSelect a town:: The selection of a town is solely based on socioeconomic The selection of a town is solely based on socioeconomic criteria such as unemployment, literacy and poverty. criteria such as unemployment, literacy and poverty.

2.2. Training & Building Capacity in the filedTraining & Building Capacity in the filed:: Building on what all women Building on what all women naturally know in rural Lebanon, YMCA refines this knowledge andnaturally know in rural Lebanon, YMCA refines this knowledge and adds to it a adds to it a mixture of carefully selected topics in food safety and hygiene.mixture of carefully selected topics in food safety and hygiene.

3.3. Rehabilitation and Initiation of Food Processing CentresRehabilitation and Initiation of Food Processing Centres. The centres are . The centres are equipped keeping in mind two key concerns: safety and employmentequipped keeping in mind two key concerns: safety and employment. It must . It must adhere to personal safety measures and equipment should satisfy adhere to personal safety measures and equipment should satisfy the programthe program’’s s aim of creating job opportunities to rural womenaim of creating job opportunities to rural women

4.4. Forming Cooperatives to Sustain ActivitiesForming Cooperatives to Sustain Activities:: once the centre is equipped, a once the centre is equipped, a womenwomen’’s cooperative is formed and given full responsibility of the cens cooperative is formed and given full responsibility of the centre. tre. Trained women join the coopTrained women join the coop’’s administrative cadre and assume responsibility of s administrative cadre and assume responsibility of all decisions related to production and processing. Moreover, owall decisions related to production and processing. Moreover, ownership of the nership of the equipment and equipment and centercenter is transferred to this autonomous legal entity. is transferred to this autonomous legal entity.








Activities that Activities that maintain and maintain and enhance the enhance the product value product value (after sales (after sales services)services)


•• For the main purpose of promoting sales under a unified brand For the main purpose of promoting sales under a unified brand name and a wider national and international outreach, name and a wider national and international outreach, SMARTSMARTfacilitated the establishment of, a centralized cooperative, facilitated the establishment of, a centralized cooperative, Atayeb Al Rif Atayeb Al Rif or or Rural DelightsRural Delights

•• Atayeb Al Rif Atayeb Al Rif --functions as the marketing, sales and packaging functions as the marketing, sales and packaging arm for all the other cooperatives/centres and it is the brand arm for all the other cooperatives/centres and it is the brand name of the products producedname of the products produced

•• SMART created linkages with a Sales/Marketing company SMART created linkages with a Sales/Marketing company MAFCOMAFCO, Inc. to assist in uplifting the brand, create the , Inc. to assist in uplifting the brand, create the Marketing strategy, and then manage distribution and sales Marketing strategy, and then manage distribution and sales locally, regionally and globally.locally, regionally and globally.

•• Hence, all centres and farms sell their products, mainly but notHence, all centres and farms sell their products, mainly but notexclusively, to exclusively, to Atayeb Al Rif,Atayeb Al Rif, that markets and resells the that markets and resells the produce under produce under AtayebAtayeb’’ss name. name.

SMART Marketing & Services Supports:SMART Marketing & Services Supports:

•• SMART has a pure agricultural component tackling the SMART has a pure agricultural component tackling the initiation of high value production farms. Instead of initiation of high value production farms. Instead of food processing, some women will focus on producing food processing, some women will focus on producing fruits, aromatic spices, herbs and mushrooms.fruits, aromatic spices, herbs and mushrooms.

•• Meanwhile, the yield will be sold on the market or to Meanwhile, the yield will be sold on the market or to one of the centres to be processed. one of the centres to be processed.

SMART Support to Backward Linkages:SMART Support to Backward Linkages:

FarmersFarmers CustomersCustomersFood ProcessingFood Processing

Until recently, SMART has completed:Until recently, SMART has completed:•• the training of 1325 women, the training of 1325 women, •• finished the construction and rehabilitation of 37 finished the construction and rehabilitation of 37 centerscenters. . •• set up four farms and began working on another one, set up four farms and began working on another one, •• formed 20 cooperatives and prepared for the formation of anotherformed 20 cooperatives and prepared for the formation of another 6. 6. •• Most importantly, working women have been able to earn around Most importantly, working women have been able to earn around

100$/ month, a decent sum to a previously unemployed rural 100$/ month, a decent sum to a previously unemployed rural housewife. housewife.

On the other hand, Atayeb Al Rif has proved to be a success storOn the other hand, Atayeb Al Rif has proved to be a success story with y with sales level at around 500,000 US$ per year and exports to Saudi,sales level at around 500,000 US$ per year and exports to Saudi, Kuwait, Kuwait, Jordan, and potential Markets in USA, Canada, UK and the rest ofJordan, and potential Markets in USA, Canada, UK and the rest of the Gulf the Gulf states states

Sustainability has been a major focus of concern to YMCA. The fiSustainability has been a major focus of concern to YMCA. The final year nal year of the program, 2005, was perceived as a new phase in rural of the program, 2005, was perceived as a new phase in rural transformation; women in their transformation; women in their centerscenters and farms will be able to produce and farms will be able to produce on their own, sell their products, secure a decent monthly incomon their own, sell their products, secure a decent monthly income and e and reinvest this money in the reinvest this money in the centerscenters and families. and families.

Results of SMART Logistical & Marketing Supports:Results of SMART Logistical & Marketing Supports:

SMARTSMARTTargetsTargets

1.1. Set out to train Set out to train 1340 women1340 women on various on various issues relating to the business (food safety issues relating to the business (food safety and hygiene and micro finance issues, etcand hygiene and micro finance issues, etc……

2.2. Set up Set up 5 women5 women owned and run production owned and run production farms cooperatives where various high value farms cooperatives where various high value fruit, vegetables, spices, and herbs are fruit, vegetables, spices, and herbs are cultivated (e.g. red and yellow peppers cultivated (e.g. red and yellow peppers replacing the traditional green pepper)replacing the traditional green pepper)

3.3. Establish Establish 37 women37 women owned and run owned and run processing cooperatives where products are processing cooperatives where products are processed, packaged, labeled and sold processed, packaged, labeled and sold (creating infrastructure to extend produce(creating infrastructure to extend produce’’s s shelf life e.g. surplus apples processed into shelf life e.g. surplus apples processed into apple vinegar that lasts, when properly stored apple vinegar that lasts, when properly stored for at least three yearsfor at least three years

4.4. Launch Launch 1 women1 women owned and run cooperative owned and run cooperative (Atayeb al Rif) where the their packaged (Atayeb al Rif) where the their packaged goods are marketed and ultimately soldgoods are marketed and ultimately sold

Achievements to Achievements to Date Date

1.1. TrainedTrained1600 women1600 women on food processing on food processing procedures procedures

2.2. Set up Set up 5 farms; fully operational5 farms; fully operational

3.3. Constructed and/ or rehabilitated 37 Constructed and/ or rehabilitated 37 centerscenters

4.4. Completed the Atayeb al Rif coop; the Completed the Atayeb al Rif coop; the brand name and central marketing coop. brand name and central marketing coop.

5.5. New advanced training in computer New advanced training in computer literacy, cooperative management, sales literacy, cooperative management, sales and marketing, product cost control, and marketing, product cost control, training the women to train training the women to train

6.6. Two new contracts in the final phases of Two new contracts in the final phases of negotiation for distributorship of negotiation for distributorship of products estimated at a total value of products estimated at a total value of $5.7 million over the next two years$5.7 million over the next two years

Results & ImpactsResults & Impacts

Case Study, Impact : Case Study, Impact : Atayeb Al Rif Atayeb Al Rif

Marketing Marketing

BrandingBranding

Private labelingPrivate labeling

Fairs, Fairs, exhibitions and exhibitions and trade showstrade shows

AdvertisingAdvertising

Media Media To date with potential for growthTo date with potential for growth--$100 per month per women $100 per month per women

Return on Return on InvestmentInvestment

80 products, 100% natural with no 80 products, 100% natural with no preservatives or additives includes:preservatives or additives includes:

-- 15 jams and preserves15 jams and preserves-- sun dried fruit and vegetablesun dried fruit and vegetable-- 4 varieties of fruit compotes4 varieties of fruit compotes-- 5 varieties of syrups5 varieties of syrups-- 12 Lebanese specialty foods 12 Lebanese specialty foods

ProductsProducts

$897,801 and $5.7 million confirmed $897,801 and $5.7 million confirmed orders over the next two yearsorders over the next two years--Local, Regional (Gulf States) and Local, Regional (Gulf States) and International (Europe, Canada and the International (Europe, Canada and the USA) sales contractsUSA) sales contracts

SalesSales

Sustainability of the ProgramSustainability of the Program

Sense of ownership Sense of ownership For the women For the women

Since benefits of the program extend beyond the Since benefits of the program extend beyond the main shareholdersmain shareholders--the womenthe women--basically, their basically, their spouses, local politicians, villages inhabitants, spouses, local politicians, villages inhabitants, they all have a vested interest in maintaining and they all have a vested interest in maintaining and supporting the program supporting the program

For the For the individual villagesindividual villages

Project drew upon the market driven , value chain Project drew upon the market driven , value chain approach that strengthen all the processes from approach that strengthen all the processes from input supply, through production, post harvest input supply, through production, post harvest handling, processing, storage, transportation, and handling, processing, storage, transportation, and marketing to increase overall salesmarketing to increase overall sales

Big picture Big picture

Exit Strategy & Sustainability PlanExit Strategy & Sustainability Plan

The exit strategy for SMART has already been put in action;The exit strategy for SMART has already been put in action;

A contract was signed between Atayeb Al A contract was signed between Atayeb Al RifRif and MAFCO:and MAFCO:•• Atayeb is in charge of coordination of production, Atayeb is in charge of coordination of production, quality control, coordination among the different quality control, coordination among the different cooperatives and is fully in charge towards its cooperatives and is fully in charge towards its shareholders (mostly the individual cooperatives) and shareholders (mostly the individual cooperatives) and towards delivering to MAFCO their orders (quality and towards delivering to MAFCO their orders (quality and quantity) on time.quantity) on time.

••MAFCO is MAFCO is exclusively dedicated to distributing the exclusively dedicated to distributing the Atayeb Al Atayeb Al RifRif product lineproduct line. . Based on their market Based on their market studies, MAFCO has opted to go with 37 cornerstone studies, MAFCO has opted to go with 37 cornerstone products firstproducts first..

Sustainability PlanSustainability Plan

Atayeb Al Atayeb Al RifRif

BDS ProviderBDS Provider

Training, Training, Quality Quality

Assurance, etcAssurance, etc

MAFCOMAFCO

BDS FacilitatorBDS Facilitator

Marketing & Marketing & SellingSelling

Mar

kets

Mar

kets

BeneficiariesBeneficiaries

Training expenses are shared by individual Training expenses are shared by individual cooperatives centres, Atayeb Al cooperatives centres, Atayeb Al RifRif and MAFCOand MAFCO

ProductionProductionCentersCenters

FarmsFarms Wom

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Looking Forward for the ProgramLooking Forward for the Program

For the production of new aromatic plants to be For the production of new aromatic plants to be used in the soap makingused in the soap making

Adding new Adding new farms farms

OlivesOlives—— extra virgin olive oil, olive pickling, and extra virgin olive oil, olive pickling, and traditionally made olive oil based soap packaged traditionally made olive oil based soap packaged with modern appeal with modern appeal

New sectors New sectors will be will be

targeted targeted

Building on the success of SMART –with the funding of USAID the aim is to add new centers:



2. Overview of the Case Study 2. Overview of the Case Study ““Stimulating Markets Stimulating Markets and Rural Transformation (SMART)and Rural Transformation (SMART)”” ProgramProgram

3. 3. SMARTSMART Business Development Services Business Development Services -- ObjectiveObjective-- Methodology of WorkMethodology of Work-- Results & ImpactsResults & Impacts


ParticipatoryParticipatoryApproach Approach

NonNon--Financial Financial InstrumentsInstruments

Autonomous Autonomous InstitutionsInstitutions

Lessons learnedLessons learned

SustainableSustainableInstitutions Institutions

The following comprises the main lessons learned from The following comprises the main lessons learned from the case study, basically the importance of ;the case study, basically the importance of ;

Involving beneficiaries to specify their exact needs Involving beneficiaries to specify their exact needs and give them ownershipand give them ownership

Importance of non financial assistance to members Importance of non financial assistance to members such as training and building capacity especially in such as training and building capacity especially in managementmanagement

Importance of having the BDS provider being an Importance of having the BDS provider being an autonomous institutions that has good relations with autonomous institutions that has good relations with BDS facilitatorsBDS facilitators

Importance of creating ownership & sustaining Importance of creating ownership & sustaining activitiesactivities

Documents

BDS and Value Chains Annual Conference · The SMART program developers worked closely with local producers, farmers and the women who process the goods, to create links with strategic