NEW BUSINESS MODELMECIS ECONOMIC JUSTICE COMMUNITY 0F PRACTICE LEARNING WORKSHOP

WEST BANK TEAM MARCH 17-20, 2014

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From Grove to Market: Making the olive market work for subsistence and small-scale farmers in the occupied Palestinian territory

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Programme Overview Around 4,091,000 EU EU contribution 1,100,000 EUR; SDC contribution around 2,443,000 EUR

(3,200,000 USD) Applicant’s contribution 316,000 EUR; Beneficiaries contribution (individual

farmers/cooperatives) around 232,000 EUR 36 months West Bank (Northern, Central & Southern) OGB is also a technical advisor for PARC/EU

project (3,150,069)

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Partners in the project

Technical support to improve quantity

and quality of olive oil

Organizational development

along with support in the marketing

issues

Project management and networking with interested stakeholders

Women economic

empowerment and leadership

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Target Groups

• small-scale olive farmers in the West Bank governorates of Bethlehem, Jenin, Nablus Qalqilya, Ramallah, Salfeet, Hebron, Tubas and Tulkarem (3525 households, or 21,153 persons)

• 88 producer cooperatives/groups: 16 well-established cooperatives, (b) 12 medium-level cooperatives (c) 43 new producer groups, 17 formal and informal women’s groups

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Oxfam GB: Introduction and Background

• “From Grove to Market” primary focus is on developing the VC of the olive sector so that it works more effectively and sustainably for small scale farmers, especially women.

• Market deficiencies the Programme is addressing:

1.Unfavorable policy and institutional environment;

2.Limited institutional development of farmers’ organisations;

3.Low and unstable productivity;

4.Limited capacity of producers and processors to consistently meet quality standards of domestic, regional and international markets;

5.Inadequate extension services;

6.Limited marketing capacity;

7.Women’s limited economic empowerment.

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Unstable Domestic Olive Production

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Transport

Business Development - minimal services due to vertical integration

MARKETSERVICES

(DIS)ENABLINGENVIRONMENT

MARKETCHAIN

Smallholders (80%) growing Olive Oil

(100,000 HHs)

Consumer:• Internatio

nal

Farm intensification – limited complimentary livelihoods:Herbs, Honey, Almond, Cous Cous

Informal Gulf Gift market

(30%)

Bottlers

(9)

Domestic retailers (20%)

Commercial presses

(280- presses)

US, Far east and European Retailers and Supermarkets

(10%?)Differentiated Markets by quality and certification- virgin/extra virgin

- - FT/Organic/non FT- - Solidarity/mainstream

Israeli’s define trade policy, logistics and access to assets

Lack of trust between actors in the sector

Export logistics in current security situation Liberalisation: disruption in

input supplies, quality control problems

Lack of power/influence of Olive oil council and other

farmers’ representative org.

Limited access to water sources

Producer organisation

(40)

Limited research - drought /pest resistant crops

Extension

All delivered through NGO’s

Finance

Working capital and

export Credit

Insurance Savings

Pests and disease

Rainfed ag. – limited and unpredictable rainfall

OPT Agriculture viewed as an investment

Non-commercial actors with limited

business and financial skills

By-product – Olive paste

Access/maintenance of farms near settlements/

behind the wall/mountains

Supply Stability

Sector management and Trade policy

Land claiming by Israeli’s, declining

soil fertility and fragmentation

Assets

Farmer’s and Coops/groups lack

of a business mentality/passivity

Women lack time and ??

attitudesand beliefs

Consumers solidarity with Palestinian cause

Education levels and skill transfer from Israeli Ag.

Quality image being eroded by ‘Gift’ trade

Wholesalers

(120)

Domestic Manufacturers

(5%)

Export Manufacturers

(?%)

Home consumption

Irrigation – limited technologies

Donor interest

High labour cost

Coop Presses

FLO/IMO/Organic

certification

FLO pricing

Donor money

Low overall quantity

Storing changes specification

First mover advantage on FT

100% Women

95% Men

90% Men

100% men

100% men

Men andwomen

15%women

Men andwomen

100% men

100% men

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From Grove to Market: Key Best Practices

• OGB is active in the Olive sector since 2005 and in the programme’s second phase since 2011, has more deliberately adopted the M4P approach.

• ‘GtM” is a 3-year program (2011-2014) co-funded by the SDC and EU and led by OGB with four local partners (ARIJ, ESDC, BWF and FTDC) in the Palestinian Occupied Territory (OPT).

• SDC is supporting the programme with Euro 2.44 million, along with EC grant of Euro 1.1 million, and Oxfam’s own resources of Euro 316,000.

• GtM aims to influence overall Olive VC and market as a ‘facilitator’; working simultaneously with various stakeholders and markets actors to create a sustainable and growth oriented olive sector for smallholder farmers.

• Women’s participation and visibility in Olive sector is seen as an important aspect of the program within an overall market facilitation approach as women play key role as famers in the olive farming. Thus the GtM is facilitating promotion of alternative olive products such as olive paste, pickle and olive oil soap that can be produced and marketed by women more independently and at scale.

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From Grove To Market: Key Best Practices• The program approach also seeks to incorporate OGB’s GEM approach

(Gendered Enterprises and Markets), combining women’s enterprise and empowerment, climate adaptive improved farming practices and improved functioning of markets for small olive farmers.

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• GtM is engaging with all the important value chain actors, service providers and stakeholders for facilitating systemic change at various levels and in different domains of the oil sector. 

i. Leveraging through developing strong, interconnected value networks.

ii. Respective Roles of Different Partners in the Programme Consortium.

iii.Organizational Development of Farmers’ Bodies

From Grove To Market: The Value Added

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Different Domains of Engagement

Private Sector Companies

Government Departments and Policies

Productivity and Quality

improvement

Community/ Cooperative

Organizations

NGOs and Private Service

Providers

National level bodies (OOCU,

POOC, Paltrade)

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Respective Roles of Different Partners in the Programme Consortium

ARIJ: Facilitating Olive and Oil production and

processing

Farm

ers Coop S

trengthening

Gender F

ocusC

limate A

daptation and

Resilience

FTDC: Developing and leading Market

Facilitation Strartegy

Systemwide Market Facilitation for the smallholder Olive farmers, womenOxfam PMU: Managing M4P

Program and Partners' roles (Strategies, Implementation,

Facilitation), and the Stakolders

ESDC: Facilitating olive and Oil

production and processing

WBF: Facilitating alternative Olive

products and markets for Women

Priv

ate

Sec

tor

Eng

agm

ent

and

part

ners

hip

Eng

agin

g w

ith P

ALT

RA

DE

,

OO

CU

(II

Tie

r) o

rgan

isat

ions

Oxfam: Faciliaiting enabling policies for small farmers

and overall Market facilitatin

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Cooperatives/Federations Model

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•  Developing and prioritizing a specific advocacy programme agenda

• Utilizing universities to play more active role in R&D, applied research and backstopping extension services.

•  To more investigate consumer behavior and preferences in the domestic market

From Grove to Market: Key Programme Learning

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• Farmers are working together and organized in professional and structured groups/cooperatives, thus they better participate in community development, more capable to find collective solutions for their problems.

• Farmers have developed the resources to continue to work towards project objectives after project completion.

• The capacity strengthening of the national extension services providers in the olive oil sector enabled them to provide better extension services around orchard and water management best practices. Thus wider adaptation/enforcement of these best practices by olive farmers and other extension service providers such as local NGOs will take place.

• Engaging with private companies and linking them to created market linkages over the previous phase will promote multiple routes to market for olive products (diversifying markets options).

From Grove to Market: Sustainability and Adaptation

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