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Business oriented farmers’ organization enterprise;
A potential key actor for the participatory Research &
Agricultural Transformation
Jonas MVA MVA
Country Manager
STCP Cameroon
Ibadan, June 24,2008
Presentation plan
- Context
- Clarification of concepts used
- Potential Areas of intervention for the cooperatives in
Participatory research and agricultural transformation
- Key actors for the agricultural transformation
Context
source: 2005 IITACA baseline survey, Centre and South
West provinces of Cameroon
STCP Cameroon Project Location
low productivity
limited access to farm
equipment
rural exodus/Ageing of farmers
limited access to technical know-how
difficult accessto agricultural
inputsweak farmer
organizations
limited access
to financing
lack of professionalism
of MFI
low farm-gate prices
no valorization of cocoa
by-products
inefficiency of marketing channels
old cocoa farms
deterioration of the quality
decrease of the farmers’
income
difficult accessto information
high interestrate
General constraints of the Tree crops
sector in Cameroon
research for alternative crops
institutional framework not favorable
1- Enhancing productivity of cocoa farms;
2- Increasing marketing efficiency at the farmer-
level;
3- Diversifying income of farmers;
4- Improving policy environment to enable rural
transformation in cocoa communities
Challenge:
to move Cameroon from subsistence
agriculture towards market oriented/
commercial system by:
STCP Cameroon approach in PR and
agricultural transformation
STCP = Develop/
Introduce new
techniques/
Technologies
Coop=Dissemi
nate in rural areas
STCP= facilitate
access to
information/ market
Coop= improve
quality of the
products
STCP= Develop/
test and validate
with coops tools/
approach to built
business
enterprises
Guiding Principles
Testing of innovative development options and
approaches (production, institutional, market)
Assessing the process, impact, and conditions for
success of the innovations
Sustaining and institutionalizing innovations
Integrating lessons into national development efforts
(cost effective scaling up)
Using tree crops as a pathway for broader investment
in rural development
Clarification of concepts used:
- Agricultural Transformation
- COOPERATIVE = Business oriented
farmers‟ organization enterprise
- Participatory Research
Agricultural transformation is the process by
which individual farms shift from highly
diversified, subsistence-oriented production
towards more specialized production, oriented
towards the market.
The process involves a greater reliance on input
and output delivery (marketing) systems and
increased integration of agriculture with other
sectors of the domestic, regional and
international economies.
Agricultural Transformation
COOPERATIVE = Business
oriented farmers organization
The social thing of coops is that they generate a better income for the farmer’s household
Economic & Business like
1- Business and market economy based
2- Producers coop. orientation
3- Economic principles
4- Members need to understand and accept risks, liability
and business principles
5- Proportionality in voting
6- Efficiency of cooperatives and therefore profitable for
members
Participatory research=
Farmer field Research-The farm research activities are identified,
oriented and guided by the farmers' organizations
and other potential partners with input of the
research;
- Potential innovations are jointly tested by
farmers„organizations & research;
- Improved innovations are adopted and
disseminated by farmers„organizations (Farmer to
farmer approach); and capitalized, documented
and made public goods by research
Potential Areas of intervention for the
cooperatives in Participatory
research and agricultural
transformation
1- Effective organization of farmers
2- Technology Dissemination
3- Marketing
4- Diversification
5- Credit
6- Policy
Improving skills and knowledge of :
• Farmer/farm organizational
entrepreneurial skills
• Organizational development
(governance, accountability…)
• Efficiency of operations;
• Discipline of members;
• Business principles
• Management
• Financing & capitalisation
• Legislation
1- Organization of Farmers:
Cooperative can play an important role in the
improvement of the production and supply
chain efficiencies to the benefit of farmers
PRODUCTION
Supply chain
cooperati
ve
EducationEducation, , entrepreneursentrepreneurs
hiphip
Marketing, Marketing, qualityquality
control, MIScontrol, MIS
ProductionProduction, , regeneraregenera--
tiontiondiversifidiversifi--
cationcation
SocialSocial
Members
MODEL under testing
Few field achievements
-12 Business oriented farmers
Cooperatives; and
- 1 Union of cooperatives in the
Centre province
Develop approach/
Tools to establish and/
or strength Farmers
Cooperatives
-12 Cooperative organs (Board ,
Supervisory Committee) /Union trained;
- 12 cooperatives employees trained
in entreprise mgt, credit,
good governance and marketing.
Develop tools/methods
for the enhancement
of cooperative
management
Develop tools/approach
to strengthen existing
Public and private
entities such as
local NGOs in the area
of agric business
development
3 Public institutions (MINADER, MINRESI and
MINTRADE) and 18 Private entities(9 NGOs,
6 consultants,3 exporters) strengthened to
deliver effective and efficient services
to cocoa/ oil palm farmers in the supply chain
STCP Coop/Public & Private
Next challenge
1- Develop necessary tools/methods & approach to create
appropriate conditions for business oriented organizations;
2- Develop mechanisms for community associations and
farmer organizations to access production support
services;
3- Develop mechanisms for community associations and
farmer organizations to provide production support services
4- Develop approach to strengthen local private sector to
provide quality production support services
5- conduct impact studies
6- produce public goods: “systematization guide for the
cooperative implementation (in collaboration with
SOCODEVI)”
2- Technology Dissemination
Cooperative play an important role to deliver
key knowledge and technologies to farmers
effectively
Enhancing productivity of cocoa
farms
• Farmer production training
• Use of improved planting material
• Integrated pest and disease
management
• Integrated soil fertility
management
• Safe labour practices …….etc.
Few field achievements
-a farmer-near improved germplasm delivery
System (cocoa, oil plam, plantain, fruit trees)
-More than 300 nursery managers (cocoa,
oil palm, banana plantain, and fruit trees)
-50 000 improved cocoa pods ; 130 000
pre germinated oil palm nuts delivered
to farmers through the system
Develop a participatory
Bio control of pest
and diseases with farmers
in their farms
Trials of bio control products set up with
farmers to maintain their exploitation
and protect the environment
Develop/scale up
appropriate
agricultural
practices for cocoa
through FFS
Develop sustainable
mechanisms to
facilitate farmers
access to improved
vegetal material
An extension rural system set up
-124 FFS operational;
-3 100 cocoa producers directly trained
through FFS
- 6 200 cocoa producers indirectly (F-t-F)
-cocoa yields on average 15 to 40% higher,
while requiring 10 to 20% less pesticides
CooperativeSTCP
Next challenge
1- Develop/test the participatory bio control of pest and
diseases experiment with farmers in their farms;
2- Validate the development of the agricultural extension
system with farmer/cooperatives
3- Develop and scale up knowledge and technology
dissemination approaches (farmer field schools, video viewing
clubs, complementary extension materials, radio messaging,
Farmer-to-Farmer Diffusion Approach, Farmer Learning Groups)
4- Test mechanisms for farmers to access fertilizers
5- Conduct impact studies :
6- Produce public goods: « Oil palm training manual for small
producers”
3- Marketing:
Cooperative can play important role in the
development of marketing strategies and trade &
information systems able to deliver benefits to
farmers and quality products to users
Increasing marketing efficiency
at the farmer-level
• Access to information
• Organizing farmers
• Collective marketing
• Achieving quality responsive
to markets ….etc.
Marketing strategies identified
FOB
CAF
traders
AMSTERDAM
London -NEW YORK
TRADING OF COCOA
Goal of coopérative - create richeness for members
OBJECTIVES OF THE COOPERATIVE
- to sell members products at the best price
- to supply members at the lowest price
FO FO FO FO
ROLE OF THE COOPERATIVE
Reduce the number of intermediaries Short term : from the member to the port
COMMERCIALISATION OF COCOA LONG TERM : from the member to the user
Add value to through processing
Port
DOUALA
Farmgate exp
Rep exp
Buyers
coxeurs
COOPERATIVES
Few Field achievements
Improve access to
Markets by linking
cooperatives
with market-based
buyers
Develop new
market information
systems for the
marketing of products
- Cooperatives linked to SIF
set up by ONCC
Develop quality
control centers within
the cooperatives to
assess the quality of
products put in the
market
- Linkage estalished between coops and
OLAM, ADM;
- Delivery to Douala port strategy tested;
- farmers received 5-15% higher farm-gate
prices.
-About 10 000 tons of good fermented
cocoa marketed from 2005 to 2008
cocoa season
-Price premiums of 9 to 10 percent
-Increase in household cocoa income
on average between 23 and 55% higher.
STCP Cooperative
1- Test/validate collective marketing strategies to
the port of Douala with the cooperatives, and private sector
(OLAM/ADM/CARGILL);
2- Develop/test export marketing strategy with the Union of
Cooperatives and Private sector (ADM/CARGILL);
3- Develop/test/validate access to information for the union;
4- Test/validate quality control mechanisms with the coops
5- Develop approach to integrate marketing of non-cocoa
products from cocoa farms
6- Identify and evaluate market-driven product tracking systems
for differentiated cocoa
7- Explore by-products commercialization opportunities
Next challenge for STCP
4- Diversification:
Cooperatives can play an important role in diversification
strategies to benefit to farmers and increase his revenues
Diversifying income of farmers
• Neighbor trees of cocoa
(timber, fruit);
• Other crop enterprises;
• Agri-business opportunities
…….etc.
Few field achievements
Farmers trained in setting and
monitoring demonstration plots
on cocoa/oil palm agroforest models
Develop new farm
management models
STCP Cooperative
Promote oil palm/
cocoa
by products and
Associated products
-Promotion of mix cropping with maize,
banana plantain and fruit trees,
-Promotion of mushroom production
from oil palm wastes;
-Production of 262 500 plantain suckers;
-Seed funds established in coops
-Setting of 9 oil palm processing units.
Next challenge
1- Identify promising diversification options (introduction of tree
species, e.g. fruits, timber, medicinal) through participatory
research;
2- Develop participatory learning and monitoring approach
3- Integrate farmer-near planting material multiplication with
cocoa planting material delivery systems
4- Study new Agri-business opportunities;
5- Develop Farmers' business school approach/tools
6- Identify promising diversification options (e.g. rubber, oil
palm, cassava, maize)
7- Develop farm-level decision tools on diversification options
8- Produce public goods
5- Credit:
Cooperative can contribute to the development
strategies in order to create a sustainable
financial environment to benefit to farmers and
their enterprises
- Identify/analyze competitive financing
mechanisms
- Study the feasibility of setting up a saving-
loan/credit scheme within cooperatives
Few Field achievement
Experiment new credit
scheme
Develop Micro
finance Institutions
capacities
Develop tools/
strategies to
strengthen
farmers' organizations
capacities in
loan management
-Testing of a rural credit scheme with
an interest rate of 6% for ag. Activities;
-83 millions cfa credit loaned to 10 cooperatives
-15 985 000 FCFA of cooperative saving blocked
at FIFFA;
-48 new accounts opened besides the
Cooperative members‟ones;
-A total of 6 862 769 FCFA saved by non
cooperative members (civil servants,
traders,etc.);
An amount of 201 350 000 FCFA
for FIFFA to test the credit scheme
-Involvement of FIFFA in the project;
-Training of FIFFA agents in rural
entreprise principles;
STCP Cooperative
1- Identify appropriate strategies to create a sustainable
financial environment to benefit to farmers and their
enterprises
2- Facilitate linkages to and development of programs
promoting enterprise development and micro-finance
Next challenge
6- Policy:
Cooperative can participate in the development of
policy changes necessary to promote production
and supply chain efficiency
Policy enabling rural transformation in cocoa
communities and agro-ecologies
Using a multi-market model;
Organizing Public debate and stakeholder
consultations on national policy priorities;
Formulating Policy recommendations with
appropriate authorities
Field achievements
International Private-
Public Partnerships
Effective national & international
collaboration & buy in, exchange of know-how
& experiences across partners
(public institutions such as:
MINADER, IRAD, MINPMESAA,MINRESI;
private such as: OLAM, ADM, farmers coops,
Donors such as: GTZ/DED, Plan International,
FODECC
Regionality
collaboration & exchange between
country projects guaranteeing transfer and
broadening of innovations, tested techniques,
methods and strategies are ensured
a national task force set up including
MINADER, MINEPAT, MINTRADE, ONCC and
CICC to contribute to raising the awareness
of the importance of tree crops to rural
development strategies,
Policy Advocacy
STCP/COOPS
1- Organize Public debate and stakeholder consultations on
national policy priorities;
2- Formulate Policy recommendations with appropriate
authorities
3- Develop and implement social, economic and environmental
sustainability indicators together with cocoa sector
stakeholders to monitor and evaluate rural transformation
processes
4- Conduct regular national round tables to discuss and review
policy and investment issues of national interest
Next challenge
Public Sector
Country/regional understanding, knowledge of development,
networks of expertise/research, support services, labour
environment, infra-structure, policy/institutional framework,
financing capacity
Private Sector
Market discipline, specific knowledge of industry, experience
to design market focused actions, research support, service
provision, input supply, investments in value chain, marketing
Cooperative/Farmer Organizations
Ensure that priority needs of the farmers are addressed,
advocacy, self-regulation, marketing & production services,
linkage between research and producers, platform for
technology testing and transfer/dissemination
Research
Assist the other actors in their respective areas of needs
KEY ACTORS of the Agricultural transformation
IMPORTANCE OF COOPS IN THE AGRICULTURAL
TRANSFORMATION AND PR
1. Private enterprises owned by members
2. linking production with the supply chain, and
providing a conduit for the transfer of knowledge and
technologies
3. Linking social messages with technical ones (child
labour and HIV/AIDS)
4. Participatory approaches building the skills of
farmers, e.g. Field Schools, Business schools,
Learning Groups and Field Research
5. Creating employment in rural areas (hiring Managers,
accountants, warehouse clerks, drivers, etc)
STCP areas of Research and
support to empower the farmers
& their organizations
improve (main stream) cocoa production,
Income diversification and marketing in
general,
linking social, environmental & technical
messages
Production
production, input supply, information,
marketing, farmer organization development
Supply Chain Approach
considering
Integrated &
Participatory Approaches
participatory learning methods (e.g. FFS, FBS
FLG), business-oriented farms and farmer
organizations, collective marketing
& shortening the supply chain
developing & realizing a national/regional
cocoa vision to contribute to raising the
awareness of the importance of cocoa to
rural development strategies, local private
sector development, employment and
foreign exchange earnings
Policy Advocacy
THANK YOU