CFC Annual Report 2012

Annual Report 2012

Common Fund for Commodities


Mission & Vision Statement

Mission

“To contribute to poverty alleviation by strengthening the income-generating capacity of

commodity producers and mitigating vulnerability to their economic well being”

Vision

“To strengthen and diversify the commodity sector in developing countries and transform it to

be a major contributor to poverty alleviation and sustained economic growth and development.”

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Cover photos:

Above: A farmer woman using a magnifying glass to check rice reeds for insects in Kodith, Senegal. Photo: ©FAO/Olivier Asselin / FAO

Below: Bean varieties on sale at a roadside market place in Ouagadougou, Burkina Faso. Photo: ©FAO/Alessandra Benedetti / FAO

© 2013 - Common Fund for Commodities

The contents of this report may not be reproduced, stored in a data

retrieval system or transmitted in any form or by any means without

prior written permission of the Common Fund for Commodities,

except that reasonable extracts may be made for the purpose of

comment or review provided that Common Fund for Commodities

is acknowledged as the source. Common Fund for Commodities

Visiting Address

Stadhouderskade 55

1072 AB Amsterdam

The Netherlands

Postal Address

P.O. Box 74656, 1070 BR Amsterdam

The Netherlands

t +31 (0)20 575 4949

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e [email protected]

i www.common-fund.org

Editor

Royal Tropical Institute, Amsterdam

Graphic Design

Anita Simons, symsign, Amersfoort

Printing

High Trade, Zwolle

Annual Report 2012


Copyright © Common Fund for Commodities 2012

The contents of this report may not be reproduced, stored in a data retrieval system or transmitted

in any form or by any means without prior written permission of the Common Fund for Commodities,

except that reasonable extracts may be made for the purpose of comment or review provided the

Common Fund for Commodities is acknowledged as the source.

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Contents | 3

Contents Annual Report 2012

Foreword 5

I Overview of the Common Fund for Commodities (CFC) 7

Establishment, Membership 7

Objectives, Main Activities and Structure 7

Member States, Institutional Members and Votes 9

Designated International Commodity Bodies (ICBs) 11

Institutional Members of the Common Fund

for Commodities 11

Institutions with Memorandum of Understanding 12

The CFC Partnership Network 12

Organizational Chart of CFC Secretariat 2012 13

II Project profiles in 2012 14

CFC: partner of smallholder coffee farmers

in Latin America 15

Improving smallholder income from domestic

food markets 23

The keys to more effective PPPs 31

III Report on progress of projects under implementation 39

Commitments, Financing and Disbursements 39

IV Regular Projects Approved in 2012 41

V Fast Track Projects Approved in 2012 45

VI Summary of Ongoing Regular Projects 2012 49

Bamboo and Rattan 49

Bananas 50

Cashew 51

Coffee 51

Cotton 56

Fish 58

Grains/Roots & Tubers 59

Hard Fibres 62

Jute 62

Meat and Dairy 63

Oilseeds, Oils and Fats 65

Olive Oil 67

Rubber 68

Sugar 69

Tea 70

Tropical Fruits 71

Tropical Timber 72

Vegetables 73

VII Regular Projects Completed in 2012 75

VIII Twenty-Fourth Annual Meeting of the Governing Council 87

IX Financial Reports 91

Balance Sheet - First Account 91

Balance Sheet - Second Account 92

Income Statement - First Account 93

Income Statement - Second Account 94

Directly Contributed Capital 95

Voluntary Contributions 97

Administrative Budget 2012 97

Auditor’s Report 98

Annex I Governors and Alternates Governors 2012 99

Annex II List of Publications 102

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Foreword | 5

I have the honor to present the 2012 Annual Report of the

Common Fund for Commodities.

The end of year 2012 was a pivotal one, marking the successful

conclusion of the Fund’s Five-year Action Plan (2008-2012) and

approval of new operating guidelines and operational plan for

the CFC for the period 2013-2015 by the Governing Council.

In 2012, Member-States, after a long period of deliberation

finally adopted the report of the Open-ended Committee

established to make recommendations on the reform of the

Common Fund. The Committee after series of consultations

and independent reviews by experts of the structure and staff-

ing and investment policy made recommendations covering

mandate, mission and vision, governance and organizational

structure including staffing during the transitional period,

operations, resource mobilization and fostering development

partnerships, and advocacy and communications.

Some of the fundamental changes in the Fund relate to its

operating principles. There will be a larger emphasis on loan

financing to recycle scarce resources of the Fund, greater

involvement of private sector in project implementation, and

project proposals will be sought through an open call. The

CFC will (i) establish partnerships to realize synergies through

cooperation and implementation of commodity development

activities; (ii) generate and disseminate knowledge in the field of

commodities and provide information on the opportunities for

introduction of new and innovative approaches in the field of

commodities, and (ii) operate as a paid service provider.

The Open-ended Committee has been mandated by the

Governing Council to review the Agreement Establishing the

Common Fund for Commodities and make recommendations

for aligning the Agreement to the present context of inter-

national cooperation in commodities, the emerging global

development agenda, new financing modalities and new vision,

mandate and work program of the CFC. These recommenda-

tions are expected to be considered in the next meeting of

the Governing Council to be held in December 2013.

Project implementation is the core business of the Common Fund

for Commodities. In 2012, the CFC approved 15 projects - four

regular projects and eleven fast track projects. The value of ap-

proved projects stood at USD 9.51 million, of which the Second

Account contribution of the Fund was USD 4.63 million or 38 per

cent of the total project cost, financed as grants. The direct pro-

ject related disbursements in 2012 totalled about USD 16 million.

These direct project related expenditures do not take into ac-

count project related expenditures under the Dutch Trust Fund

nor do they incorporate the European Contribution Agreements

Foreword

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6 | Common Fund for Commodities Annual Report 2012

with the CFC. The implementation of some projects under the

Dutch Trust Fund (USD 4.7 million) continued on a limited scale

in 2012 culminating in two Public Private Sector Partnership

events one in late 2012 and other to be held in early 2013. I wish

to acknowledge the generous support provided by the EU and

the Dutch authorities for the CFC commodity programme. I

hope that this cooperation will continue in the years to come.

In this year’s Report, we have special reports on Public-Private

partnerships, lessons learnt from OPEC Fund for International

Development (OFID) co-funded projects and from coffee pro-

jects in Latin America. These highlight the contributions made

under projects co-financed by OFID and the Common Fund

contribution to coffee sector in Latin America. A special report

on Public-Private partnerships reviews experiences of such

partnerships and provides insight into their possible role and

contribution to development in future.

Regarding policy advocacy matters, in 2012, the Common Fund

participated and co-hosted many several high-level events, in

line with the Fund’s mandate to articulate the need for an open

and flexible strategy for the new role of commodities, as a pillar

of sustainable global growth and development cooperation.

In December 2012 with the kind financial support of the Dutch

Authorities, a joint AGRA-CFC-KIT event was held on “Reaching

Public Goals through Private Sector Investment” to discuss

how business initiatives could contribute to agricultural devel-

opment in Africa.

The CFC participated in High-Level Thematic Debate in April

2012 which took place under the leadership of H.E. Leonel

Fernandez Reyna, President of the Dominican Republic as

a follow up to a UN resolution calling for a debate on the

issues of commodity market volatility. The Common Fund for

Commodities facilitated the participation of the commodity

finance sector in the debate through its network of private

sector commodity actors. The CFC also contributed to the

“High Level Event on food price volatility and the role of

speculation” organised by FAO Rome in July 2012.

To provide a platform for interaction between policy makers

and representatives of financial institutions the CFC organised a

first meeting of the Public-Private Initiative (PPI) on Commodity

Market Volatility in New York at UN Headquarters in September

2012. Public-Private Initiative (PPI) on Commodity Market Vola-

tility is an effort to open such dialogue, and is supported by five

major international banks active in commodity trading as well as

by the Common Fund for Commodities and UN agencies with

mandates touching on commodities and development.

The Common Fund Commodities working with partners such

as the OFID, the European Union (EU), and International Com-

modity Bodies (ICBs), continues to retain its institutional reputa-

tion as the only viable advocate for commodity-dependent

developing countries.

As the review of the Agreement Establishing the Common

Fund continues, it is expected that the members will provide

new directions and provide necessary guidance for the Fund to

fulfill its mandate to the satisfaction of its members and other

stakeholders.

Parvindar Singh

Parvindar Singh,

Managing Director a.i.

Photo: CFC

I Overview of the Common Fund for Commodities | 7

Establishment and Membership

The Common Fund for Commodities (CFC) is an autonomous

intergovernmental financial institution established within the

framework of the United Nations. The Agreement Establish-

ing the Common Fund for Commodities was negotiated in the

United Nations Conference on Trade and Development (UNC-

TAD) from 1976 to 1980 and became effective in 1989. The first

commodity development project was approved in 1991.

The Common Fund for Commodities forms a partnership of 105

Member States plus ten institutional members. Membership of

the Fund is open to all States Members of the United Nations

or any of its specialised agencies, or of the International Atomic

Energy Agency, and intergovernmental organisations of regional

economic integration which exercise competence in the fields

of activity of the Fund.

Objectives, Main Activities and Structure

The Common Fund’s mandate is to enhance the socio-eco-

nomic development of commodity producers and contribute to

the development of society as a whole. In line with its market-

oriented approach, the Fund concentrates on commodity

development projects financed from its resources. These re-

sources consist of voluntary contributions, capital subscriptions

by Member Countries transferred to the Second Account and

interest earned. Whereas voluntary contributions can be used

for either grants or loans, the capital subscription transferred to

the Second Account can only be applied for loan-financing of

projects. Through co-operation with other development institu-

tions, the private sector and civil society, the Fund endeavours

to achieve overall efficiency in and impact on commodity

development.

I Overview of the Common Fund for Commodities (CFC)

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The Common Fund operates under the novel approach of

commodity focus instead of the traditional country focus.

Commodity focus entails concentrating on the general prob-

lems of commodities The CFC’s aim is to realize the potential of

commodity production, processing, manufacturing, and trade

for the benefit of the poor. The CFC supports implementation

of interventions that:

1 are new and innovative that will lead to commodity based

growth, generate employment, increase household incomes,

reduce poverty, enhance food security, provide new oppor-

tunities for systemic change in the markets and create

resilience to shocks,

2 pilot new approaches to risk-sharing with other institutions

in areas that will achieve significant development benefits,

3 are scalable and financially sustainable,

4 have a measurable positive socio-economic impact on

the stakeholders in commodity value chains,

5 develop stronger connections with existing markets or

create new markets along the value chain,

6 increase financial services to commodity producers and

commodity based businesses; and

7 enhance knowledge generation and information

dissemination.

CFC interventions use value chain approach to identify chain

participants and to identify opportunities and obstacles in

specific commodity value chains thereby developing viable

solutions. Value chain analysis leads to identification of oppor-

tunities for value chain development.

The CFC supported interventions cover all aspects of the value

chain from production to consumption i.e. from “field to the

fork”. The CFC targets its support at each link in the commodity

value chain i.e. increasing production and productivity, enhanc-

ing value addition, increasing access to markets and reducing

risks by financing innovative measures and actions. Specifically

targeted areas are:

a Production, productivity and quality improvements

b Processing and value addition

c Product differentiation

d Diversification

e Marketing

f Technology transfer and up gradation

g Introduction of measures to minimise the physical marketing

and trading risks

h Facilitation of trade finance

i Risk Management

The quality of the proposal and not the financial outlay is

the overall guiding principle for assessment of suitability of

the intervention for support from the CFC. The main criteria

for selection are quality, potential impact, beneficiary focus,

replicability, sustainability, cost effectiveness, manageability

and dissemination.

Governing Bodies

The governing bodies of the Fund are its Governing Council

and the Executive Board. The Managing Director is the Chief

Executive Officer of the Fund. The Executive Board is advised by

a Consultative Committee, composed of thirteen independent

experts, on technical and economic aspects of projects submit-

ted to the Fund. The Governing Council meets once a year, and

the Executive Board and Consultative Committee biannually.

Headquarters

The Headquarters of the Common Fund are located in

Amsterdam, The Netherlands.

Special Mentions

The Common Fund’s partnership with OPEC Fund for

International Development (OFID) is historic and dates back

to the very inception of the Fund. The OPEC Fund not only

facilitated and paid capital subscription for as many as 37

Least Developed Countries (LDCs) but continues to make

contributions under ‘’Framework of Financial Support’’

towards CFC’s commodity development projects for the

least developed countries and poorer strata in other

developing countries.

The Kingdom of Norway and the European Commission

have been supportive of the Fund and have sponsored

capital contribution of 9 and 3 countries respectively.

The Kingdom of the Netherlands : A Trust Fund arrangement

set up by the Netherlands Ministry for Development

Cooperation to support CFC projects with co-financing

contributions for the Five Year Action Plan.


Member States, Institutional Members and Votes as of 31 December 2012

Country Region No. of votes LDC

Afghanistan Asia 357 X

Algeria Africa 395

Angola Africa 391 X

Argentina LAC 496

Austria Europe 652

Bangladesh Asia 426 X

Belgium Europe 897

Benin Africa 347 X

Bhutan Asia 343 X

Botswana Africa 347

Brazil LAC 1,024

Bulgaria Europe 417

Burkina Faso Africa 347 X

Burundi Africa 343 X

Cameroon Africa 389

Cape Verde Africa 343

Central African Republic Africa 349 X

Chad Africa 351 X

China Asia 3,000

Colombia LAC 490

Comoros Africa 343 X

Congo Africa 351

Côte d’Ivoire Africa 476

Costa Rica LAC 393

Cuba LAC 584

Democratic Rep. of Congo Africa 476 X

Denmark Europe 643

Djibouti Africa 343 X

Ecuador LAC 391

Egypt Africa 476

Equatorial Guinea Africa 347 X

Ethiopia Africa 366 X

Finland Europe 535

Gabon Africa 368

Gambia Africa 349 X

Germany Europe 4,362

Ghana Africa 426

Greece Europe 309

Guatemala LAC 401

Guinea Africa 357 X

Guinea Bissau Africa 343 X

Haiti LAC 353 X

Honduras LAC 372

India Asia 621

Indonesia Asia 575

Iraq Asia 376

Ireland Europe 309

Italy Europe 2,065

Jamaica LAC 380

Japan Asia 5,502

Kenya Africa 387

Korea, Dem. People’s Rep. of Asia 355

Korea, Republic of Asia 490

Kuwait Asia 351

Lao People’s Dem. Rep. Asia 345 X

Lesotho Africa 343 X

Luxembourg Europe 309

Madagascar Africa 360 X


Country Region No. of votes LDC

Malawi Africa 351 X

Malaysia Asia 768

Maldives Asia 343

Mali Africa 351 X

Mauritania Africa 366 X

Mexico LAC 469

Morocco Africa 449

Mozambique Africa 360 X

Myanmar Asia 355 X

Nepal Asia 345 X

Netherlands Europe 1,086

Nicaragua LAC 382

Niger Africa 347 X

Nigeria Africa 440

Norway Europe 549

Pakistan Asia 407

Papua New Guinea Asia 389

Peru LAC 445

Philippines Asia 580

Portugal Europe 309

Russian Federation Europe 4,257

Rwanda Africa 351 X

Samoa Asia 343 X

Sao Tome and Principe Africa 345 X

Saudi Arabia Asia 357

Senegal Africa 382 X

Sierra Leone Africa 351 X

Singapore Asia 441

Somalia Africa 347 X

Spain Europe 1,126

Sri Lanka Asia 413

Sudan Africa 413 X

Swaziland Africa 355

Sweden Europe 929

Syria Asia 382

Tanzania Africa 380 X

Thailand Asia 449

Togo Africa 358 X

Trinidad & Tobago LAC 353

Tunisia Africa 380

Uganda Africa 395 X

United Arab Emirates Asia 347

United Kingdom Europe 2,550

Venezuela LAC 401

Yemen Asia 544 X

Zambia Africa 505 X

Zimbabwe Africa 343

EC Europe 0

AU Africa 0

COMESA Africa 0

EAC Africa 0

CAN LAC 0

CARICOM LAC 0

SADC Africa 0

ECOWAS Africa 0

EAEC Russia 0

WAEMU/UEMOA Africa 0

TOTAL 65,555

LDC: Least Developed CountryLAC: Latin America and the Caribbean Countries

Designated International Commodity Bodies (ICBs)

1 International Cocoa Organization (ICCO)

2 International Coffee Organization (ICO)

3 International Copper Study Group (ICSG)

4 International Cotton Advisory Committee (ICAC)

5 International Grains Council (IGC)

6 International Jute Study Group (IJSG)

7 International Lead and Zinc Study Group (ILZSG)

8 International Network for Bamboo and Rattan (INBAR)

9 International Nickel Study Group (INSG)

10 International Olive Council (IOC)

11 International Rubber Study Group (IRSG)

12 International Sugar Organization (ISO)

13 International Tropical Timber Organization (ITTO)

14 FAO - Intergovernmental Sub-Group on Bananas

15 FAO - Intergovernmental Sub-Group on Tropical Fruits

16 FAO - Intergovernmental Group on Citrus Fruit

17 FAO - Intergovernmental Sub-Committee on Fish Trade

18 FAO - Intergovernmental Group on Grains

19 FAO - Intergovernmental Group on Hard Fibres

20 FAO - Intergovernmental Group on Meat and Dairy Products

21 FAO - Intergovernmental Sub-Group on Hides and Skins

22 FAO - Intergovernmental Group on Oils, Oilseeds and Fats

23 FAO - Intergovernmental Group on Rice

24 FAO - Intergovernmental Group on Tea

Institutional Members of the Common Fund for Commodities

African Union (AU) - Addis Ababa, Ethiopia

Andean Community - Lima, Peru

Caribbean Community (CARICOM) - Greater Georgetown, Guyana

Common Market for Eastern & Southern Africa (COMESA) - Lusaka, Zambia

East African Community (EAC) - Arusha, Tanzania

Economic Community of West African States (ECOWAS) - Abuja, Nigeria

Eurasian Economic Community (EAEC) - Moscow, Russia

European Union (EU) - Brussels, Belgium

South African Development Community (SADC) - Gaborone, Botswana

West African Economic & Monetary Union (WAEMU/UEMOA) - Ouagadougou, Burkina Faso



Institutions with Memoranda of Understanding

The Common Fund for Commodities has concluded Memoranda of Understanding with the following institutions:

• African Development Bank (AfDB)/African Development Fund

• African Export-Import Bank (AFEXIM)

• Arab Organization for Agricultural Development (AOAD)

• Authority for Integrated Development of the Liptako-Gourma Region (ALG)/

L’Autorité de Developpement Integré de la Region du Liptako-Gourma

• Food and Agricultural Organization of the United Nations (FAO)

• Grupo de Paises Latino Americanos y del Caribe Export Adores de Azucar (GEPLACEA)

• Inter-American Institute for cooperation on Agriculture (IICA)

• International Atomic Energy Agency (IAEA)

• Islamic centre for Development of Trade (ICDT)

• OXFAM

• Sistema Economico Latino Americano (SELA)

• United Nations Conference on Trade and Development (UNCTAD)

• United Nations Convention to Combat Desertification (UNCCD)

• United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

• United Nations Economic and Social Commission for Latin America and the Caribbean (ECLAC)

• United Nations Human Settlements Programme (HABITAT)

• United Nations Industrial Development Organization (UNIDO)

• United States Agency for International Development (USAID)

• West African Economic and Monetary Union (WAEMU)/Union Economique et Monétaire Ouest Africaine (UEMOA)

The CFC Partnership Network

Agricultural Development Research

Institutions (CGIAR)/NARS

National Governments

International Commodity Bodies

(ICBs)

Charity Foundations/Non-profit

organisationsConsultants/Technical experts

Producer organisations/NGO’s

Impact Investing Funds

UN Systems

Private Sector

Organization Chart of the Common Fund for Commodities as at 31 December 2012


Office of the Managing Director

Internal Audit

(outsourced)

Policy, Programme Management,

Evaluation Unit

Project Operations Unit

Accounting and Financial Control Unit

Legal Officer

Finance and Administration

Unit

Communications

Officer


II Project profiles in 2012

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CFC: partner of smallholder coffee farmers in Latin America | 15

Coffee is the second most popular drink on earth: each day

over 2.3 billion cups of coffee are consumed worldwide.

It is also one of the most traded commodities in the world,

produced in more than 50 countries across Latin America,

Africa and Asia and an important source of foreign exchange

for many developing countries. An area of 11 million hectares

is dedicated to coffee, creating employment for 25 million

farmers and farm workers; a further 75 million people are

employed in the rest of the coffee value chain.

South America is the most important coffee producing region,

accounting for around 45% of world coffee production. Brazil is

by far the world’s most important producer, accounting for 35% of

global production. Asia and Oceania produce around 30% of the

world’s coffee, Central America (including Mexico) about 15% and

Africa 10%. Table 1. presents the main coffee producing nations.

CFC: partner of smallholder coffee farmers in Latin America

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Source: www.ico.org1 The coffee industry works with bags, where one bag holds 60 kg.2 ‘A’ stands for Arabica, ‘R’ for Robusta. When both types exist, the most important one is mentioned first.

Country Volume % of world Arabica or

(in 1,000 bags)1 total Robusta2

World total 144,611

Brazil 50,826 35.1 A & R

Vietnam 22,000 15.2 R & A

Indonesia 12,730 8.8 R & A

Colombia 9,500 6.6 A

Ethiopia 8,100 5.6 A

India 5,258 3.6 R & A

Honduras 4,900 3.4 A

Peru 4,100 2.9 A

Mexico 3,900 2.7 A

Uganda 3,200 2.2 R & A

Guatemala 3,143 2.2 A & R

Table 1: Main world coffee producers (figures for 2012)

1 A quick introduction to the world of coffee


Arabica and Robusta are the main species of commercial coffee.

Arabica requires greater care in cultivation and its milder and more

aromatic flavour is reflected in higher market prices (see graph 1).

Robusta is higher in caffeine, more disease resistant, easier

to grow and provides a higher yield. Today, Arabica accounts

for around 60% of global cultivation, but its share is steadily

decreasing in favour of Robusta. International coffee prices are

very volatile, as can be seen from figure 1, presenting challenges

to traders and consumers, and particularly to producers.

Figure 1. World coffee prices over the last 15 years

Source: www.ico.org1 Next to Robusta, the coffee business distinguishes three types of Arabica coffee:

Brazilian Naturals (around 30% of world trade) Colombian Milds (6%) and Other Milds (23%).

2 The ICO composite price is a global reference price consisting of a mix of all major origins and types of coffee.

Coffee production is a laborious activity, not just in the cultiva-

tion but also the processing. The newly-planted coffee tree

bears fruit only after three to four years. The beans are the

seed, enclosed in the cherry, which has a sweet outer flesh.

This is coloured green when young, becoming yellow and then

red when mature and ready for harvesting. Typically, the bean

weighs only 20% of the cherry. Most coffee is picked by hand,

with the fruit either harvested in one pass through the field (for

lower quality grades) or in several passes during an eight to ten

day period (for high quality Arabica beans).

After harvesting, the outer layers of the cherry are removed,

which may be done through the ‘dry’ or ‘wet’ method, to pro-

duce a stable, dry, green coffee bean. The dry method is simpler

and more cost effective and is generally used for lower quality

grades. The cherries are laid out in the sun to dry for a couple

of weeks, until the outer layer becomes a hard shell which can

be removed. The wet method requires more investment and

care and is therefore generally used for higher quality coffee.

The outer layer of the cherry pulp is removed immediately after

harvesting by a pulping machine, leaving the beans undam-

aged. Water is used to wash away the outer layer and to sort

the beans. The wet beans are then left in tanks to ferment in

order to remove the slippery outer skin, known as ‘mucilage’.

After washing, selection and classification, the beans are dried

to produce ‘parchment’ coffee. Hereafter, milling or hulling and

grading (by size, density, and possibly taste) completes the pro-

cess. The beans are now ready to be roasted and to continue

their journey to the consumer.

2 CFC’s commitment to Latin American coffee growers

CFC has acknowledged the crucial role of the coffee sector

in numerous developing countries, a sector which provides

employment and income for many poor people. Over the

years, CFC has invested about 18% of its available resources in

coffee projects. All CFC’s coffee projects have been technically

supervised and managed by its strategic partner, the Interna-

tional Coffee Organization (ICO) (see Box 1), and implemented

by specialized organizations in the project countries. These

projects cover the ‘bean to cup’ process, focusing on and

investing in the most important elements of the coffee value

chain, from improving farmers’ yields to promoting national

coffee consumption by training ‘baristas’.

By 2012, ICO had supervised almost 40 CFC coffee develop-

ment projects, of which 25 have concluded, with an aggregate

value of around US$105 million. Of this, approximately US$55

million was financed by CFC, US$30 million by various multi-

lateral and bilateral donors and US$20 million by the project

beneficiaries themselves (counterpart contributions).

Box 1. ICO – the International Coffee Organization

Since its establishment in 1963, ICO brings together

governments from coffee exporting and importing nations

to tackle challenges facing the world coffee sector. ICO

strengthens the global coffee sector and promotes its

sustainable expansion for the betterment of all participants

in the coffee chain, particularly those facing poverty in

coffee producing countries. ICO does this by, among other

things: enabling governments and the private sector to

exchange views on coffee matters; executing projects that

benefit the world coffee economy; and providing statistics

and technical information on the world coffee sector.

0.01998

Year

US

$ /

lb

2000 2002 2004 2006 2008 2010 2012

0.5

1.0

1.5

2.0

2.5

3.0

ICO composite price Colombian Mild

Other Mild Brazilian Natural

Robustas

Eight projects were developed by CFC and ICO to focus specifi-

cally on Latin America, aiming to improve the competitiveness of

small-scale coffee producers in the region. The total investment

in these projects was almost US$27 million, of which CFC con-

tributed nearly US$12 million. Two projects were relatively small,

involving regional workshops that targeted specific technical

issues: coffee quality (Ecuador, 2001), and the Central American

coffee crisis (Guatemala, 2003). Other CFC/ICO projects have

been much larger, targeting various countries in South and Cen-

tral America (see table below) and running over several years.

3 How does CFC support smallholder coffee producers in Latin America?

Technical screening is undertaken by CFC and ICO to ensure

that each project is designed to fit the specific context where

it is to operate, focuses on removing the key constraints and

unlocks opportunities with the highest potential. All projects

aim to improve the lives of poor rural households, primarily

by generating employment and improving incomes.

Valuable lessons from CFC’s Latin American coffee projects

have been highlighted, based on discussions at ICO, a review

of project documentation and, in particular, field visits to CFC’s

coffee projects in Ecuador (see Box 2) and Guatemala (see Box

3). The top ten lessons are presented below:

1 A ‘bean to cup’ perspective. Looking at the whole coffee

value chain ensures investments are made where they are

most needed, in order to create the biggest positive change

and the highest impact. This approach requires a detailed

analysis of the coffee business, from production to con-

sumption, including all the different links in the chain. Com-

mon elements in this approach include market-orientation,

stakeholder collaboration and practical actions to improve

Conclusion

of project

2005

2010

2011

2011

2012

On-going

Total

(million US$)

5.3

4.5

6.8

1.9

3.2

4.8

CFC

17%

57%

62%

33%

35%

53%

Other partners

65%

25%

7%

67%

27%

21%

Counterpart

contribution

18%

18%

31%

0%

38%

26%

Projects

Strengthen capacity of small coffee producers

and exporters in Mexico and Nicaragua

Diversification of production in the State

of Santa Cruz, Mexico

Rehabilitation of coffee sectors in Honduras

and Nicaragua

Enhancing potential of gourmet coffee

production in Central America

Reconversion of small coffee farms in Ecuador

Competitive coffee enterprise programme

for Guatemala and Jamaica

Budget

Box 2. Key data on Ecuador

Total area: more than 172,000 km2

Population: almost 15 million people

GDP per capita: US$4,569

Coffee types: Arabica (around 30%) and Robusta (almost 70%)

Processing method: dry and wet

Per capita annual consumption of coffee: 0.61 kg

Value of coffee exports as percentage of total exports: 1.2%

Value of coffee as percentage of GDP: 0.4%

Exports in 2012: 1,609,806 bags (of 60 kg)

Box 3. Key data on Guatemala

Total area: almost 109,000 km2

Population: almost 15 million people

GDP per capita: US$3,178

Coffee types: Arabica and some Robusta (less than 1%)

Processing method: wet (mainly) and dry

Per capita annual consumption of coffee: 1.38 kg

Value of coffee exports as percentage of total exports: 11.3%

Value of coffee as percentage of GDP: 2.49%

Exports in 2012: 3,522,793 bags (of 60 kg)



the chain. A chain perspective requires that a project needs

to be in line with market prospects: the coffee needs to be

sold at a profit in order to generate attractive financial incen-

tives for those working in the chain. Focussing on the com-

mercial feasibility of an intervention often leads to the active

participation of private sector operators in project activities.

In a project to promote gourmet coffee in Central America,

for instance, an Italian roasting company had an active role.

Another key element of a chain perspective is the forging of

partnerships between relevant organizations in and around

the chain, including the government sector, NGOs, compa-

nies, financial institutions, research agencies, training, educa-

tion and extension. Specialized and reputable national coffee

organizations function as lead implementing agencies in all

CFC-funded coffee projects and – well positioned as they are

in national coffee society – these organizations take the lead

in developing broad stakeholder collaboration throughout

the chain. In Ecuador and Guatemala, for example, COFENAC

(the Ecuadorian National Coffee Council) and ANACAFE (the

Guatemalan National Coffee Association) were the lead cof-

fee sector agencies in their respective countries.

Coffee value chain projects are never designed to only

achieve analysis or collaboration; projects are rooted in

practice, investing in actions that make the chain function

better. Such actions often take the form of experiments,

due to the complex nature of value chains, which must

be flexible in responding to results, challenges, market

dynamics and other changing circumstances. In CFC’s

projects, investments are made to improve chain perfor-

mance and to empower poorer people within the chain.

The coffee chain is improved through practical actions

that, for instance, strengthen the weakest link in the chain,

open up new end markets, re-design logistical processes,

re-configure the governance of the chain, change policies

or induce new capital flows.

2 Increase yields. Much can be done at production level to

directly improve farmers’ income. Higher quantities and

better quality strengthen farmers’ position in the market,

particularly when overall coffee prices are under pressure,

as is currently the case (see figure 1). Replacing old planta-

tions with new, high yielding and disease-resistant varieties

is one option. Farmers can also review the design of the

farm to select the best possible location to grow coffee,

a process which was actively supported by the Ecuador

project. Other options to improve yields include using

better agronomic practices (e.g. pruning, shade manage-

ment, irrigation, intercropping or using mulch, manure or

fertilizer) or applying agrochemicals or biological treatments

to combat pests and diseases.

Agricultural support programmes, especially extension ser-

vices, have typically been criticized for focusing exclusively

on increasing yields whilst failing to consider market condi-

tions and the commercial viability of producing a particular

crop. However, given good demand prospects leading to re-

munerative price levels, measures to improve yields are often

the most appropriate and quickest means to improve farm-

ers’ income. Such measures are adopted rapidly by farmers

when proven to be successful. The projects in Ecuador and

Guatemala have shown that yield improvements are a critical

Carlos Jarrin from Manta region, Ecuador:

Thanks to new varieties and the new practices I learned from

the CFC project, I have tripled my yields, and I am producing a

much better quality now. One remarkable result I achieved was

decreasing the presence of coffee berry borer in my planta-

tions to less than 10%, by using biological traps. Before, my

coffee plantations were infested with it, sometimes up to 80%.

With the better quality and larger volume, I no longer sell to

local traders but deal directly with the bigger traders from the

capital. Now, they want to do business with me and I obtain a

much better price. I see that coffee growing is picking up in my

area and is regenerating the local economy. Being a part-time

teacher at the nearby agricultural school, I take along the things

I learn from the project to share with my students.

Ph

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: Jo

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step in improving the coffee chain, as increased quantities

and improved quality have allowed farmers, and others

operating in the coffee chain, to mitigate against the effects

of lower coffee prices.

3 Improve processing. Weather and other circumstances at

farm level, including agronomic practices applied by the

producer, impact on coffee quality. However, processing is

also critical: a good bean loses its premium when not

properly processed. The way that coffee is transported,

graded, processed, dried and stored has a direct influence on

its quality. Moving from the dry to the wet processing method

(see above) boosts quality but requires significant investment.

Generally, individual smallholders do not have the capital for

such investment and processing is carried out by large-scale

farmers, farmer groups or bigger traders. However, while

infrastructure and equipment are key, knowledge and skills

to operate them are also of paramount importance.

The CFC projects in Ecuador and Guatemala supported

selected farmer groups (including cooperatives) to install

or upgrade their processing infrastructure. By processing at

group level, additional income flows back to the farmers,

thereby creating more added value for their coffee beans and

a higher value share in the coffee chain. However, for such

endeavours to be successful, organizational issues are of key

importance, including how the technical process is organized

and the logistics, payments, administration and sales.

One particular issue is environmental impact of coffee

processing: wet processing can be detrimental in terms

of abundant water use and water contamination. In

Ecuador and Guatemala, the CFC projects have been

investing in recycling the water used in the process and

converting the by-products, such as pulp and mucilage,

into organic fertilizer.

4 Promote local coffee consumption. Coffee exports are a

major source of national income in many coffee producing

countries but local coffee consumption is often modest (see

low coffee consumption in Ecuador and Guatemala in Box 2

and 3) and generally limited to low quality coffee. Encourag-

ing a coffee drinking culture promotes a more diverse con-

sumer market and reduces dependence on export markets.

In the Central American gourmet coffee project, one way

of promoting a coffee culture was to train baristas (coffee

servers) in preparing the best possible cup of coffee. Other

projects have invested in coffee houses, where high quality

coffee is prepared in a pleasant atmosphere.

5 Promote and support farmer organizations. In principle,

cooperatives and farmer groups have a stronger position in

the market than individual farmers, both for buying inputs

and selling their produce. To decrease transaction costs,

governments and NGOs also prefer to undertake projects

with these groups. Many large cooperatives also play a key

role in lobbying for better policies for farmers and the overall

Drying facilities in

Guatemala

Ph

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agricultural sector. Working through farmer groups is a

typical strategy among Latin American CFC coffee projects,

which has led to tangible results for individual farmers:

revenues have gone up as result of increased volume and

improved quality, cushioning farmers somewhat from

volatile end markets.

Farmer organizations are also typically involved in ‘moving

up the chain’, where farmers engage in additional value

chain activities, such as processing or direct exportation.

Such activities normally require collaboration and organiza-

tion, although cooperatives often have difficulties in

deploying the required organizational and commercial skills.

An innovative way of empowering farmers in the market

has taken place in Guatemala, where CFC projects assisted

farmer organizations to do their own ‘cupping’ (coffee

tasting). Being able to discern the different qualities of their

coffee allows organizations to differentiate their markets and

negotiate a better deal with their buyers.

In Ecuador and Guatemala, a selected group of cooperatives

were provided with simple machinery for roasting, grinding

and packaging of coffee. A few members were trained in

putting this equipment to its best use, while also developing

their marketing skills. The primary aim of this approach is to

move farmers up the chain, thereby enabling them to earn

more from value addition processes.

6 Capacity development. Providing training to producers,

cooperatives, traders, exporters, roasters, baristas, etc.

strengthens the coffee sector, with potential spin-offs to

other sectors. All CFC projects have a strong capacity

development component covering a wide range of coffee-

related topics, but also broader issues such as community

development, administration, leadership and personal skills

development. CFC projects have, in particular, paid strong

attention to developing entrepreneurial skills for farmers,

and also to the management of cooperatives, to enhance

the commercial sustainability of their ventures.

7 Access to finance. To replace old plantations with new ones

requires capital, particularly as it takes three to four years

before new plantations become productive. Money is also

needed to buy the inputs required to increase production

and quality, so the period needs to be covered between

when the farmer needs money to cover these costs and

when it flows back through the sales of the coffee harvest.

Other family needs also require cash. In Ecuador, a simple

revolving fund has helped farming families to cover some of

their financial needs for coffee and for other family matters.

Cooperatives also need money, as they need working capital

to buy from their members. Farmer organizations commonly

miss out on business deals because they are constrained by

working capital; they simple cannot buy more from their

members even when it means they would make more profit.

Improved processing

equipment in Guatemala

Ph

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To resolve this issue, coffee projects need to engage with

financial institutions, who are the professionals in dealing

with credit and savings. This is not an easy task, as the

Guatemalan project has experienced, since bankers tend

to be very hesitant to support agricultural activities, which

they consider very risky.

8 A gender approach. It is critical to recognize the valuable

role of women in the whole coffee business, but also in

farm planning, dealing with finance, safeguarding household

needs, and performing key roles in community organiza-

tions. Sadly, women are often ‘off the radar’ of many donor

interventions. The CFC coffee projects have realized the

importance of gender and have acted accordingly. In

Ecuador the revolving fund is almost exclusively run by

women. In Guatemala, women are engaged in coffee

roasting and selling their coffee on the national market.

9 Environmental sustainability. Environmental sustainability

is not a luxury and is a concern in coffee production,

processing (see lesson 3) and trade alike. In several CFC pro-

jects, organic coffee is promoted, which requires additional

investment from farmers and other chain actors, but also

fetches a higher price in the world market. Apart from going

organic, appropriate application of agrochemicals and

fertilizers not only helps the environment but also saves

money. Most smallholder coffee in Latin America is grown

under shade. The environmental benefits of forest coffee

are widely acknowledged, as it diminishes the impact of rain

on the soil, filters sunlight and contributes to biodiversity.

Julian Alquejay from Rabinal region, Guatemala.

We were lucky the CFC project helped to sort out our

administrative mess. Before, the tax office was charging

us a lot of money all the time for late delivery of our tax

forms. We also registered four different types of organi-

zations, as was requested by different donors to channel

their support. For all of them we received different tax

claims and other legal issues and we didn’t know how to

resolve them. CFC helped us to professionalize; now we

have our administrative systems in place so all members

know what is going on, and meanwhile we send our tax

papers in time, avoiding any fines.

Freddy Chele from Manta region, Ecuador:

When renewing my coffee plantation, I was stubborn. I didn’t listen

to the extension agents when they advised me to carefully choose

where to plant my trees and properly clean the terrain before plant-

ing them. Here you see what happened: a skinny tree with almost

no coffee berries at all. I learned my lesson and tell others about my

mistake so they learn too. Now see what the coffee that I planted

recently looks like: strong trees with lots of berries.

Photo: John Belt

Photo: John Belt


10 ‘Go beyond coffee’. The focus of CFC coffee projects is to

obtain the best possible results from coffee. However for

smallholder farmers, coffee has to be integrated in other

farm activities. Coffee only provides cash during a limited

period, but farmers’ expenditures must be met throughout

the year. In the lean season for coffee, farm labour is some-

times available to be engaged in other economic activities.

CFC projects capture opportunities outside coffee and help

farmers to diversify, which also helps to counteract produc-

tion and price risks related to coffee and to improve income

flow throughout the year.

In Ecuador, farmers have started the production and sale

of honey and animal feed. In Guatemala, women’s groups

make soap and cultivate mushrooms. Coffee tourism has

been mentioned by them as a possible new income genera-

tion activity for the future.

These lessons from the coffee project portfolio in South Amer-

ica may provide food for thought for continuing collaboration

between CFC and ICO in the region, and hopefully inspire oth-

ers outside Latin America and in other sectors, beyond coffee.

A group of Guatemalan farmers during

entrepreneurship training in Rabinal

This group of Guatemalan

women in Santa Cruz Naranjo

have improved their coffee

yields thanks to the support

of the CFC project. Next, they

want to move into processing

and explore additional income

generating activities, such as

mushrooms.

ReferencesAnacafe, 2011. Guatemalan Coffees Green Book. 2nd Edition,

Guatemalan National Coffee Association, Guatemala City.

COFENAC, 2012. Las Estrategias utilizadas para la conversión de

pequeñas fincas cafetaleras en unidades agropecuarias autosostenibles

en el Ecuador: Sistematización de experiencias. Consejo Cafetalerio

Nacional, Manta, Ecuador.

ICO, undated. Coffee Statistics. www.ico.org. International Coffee

Organization, London

ICO, undated. The Story of Coffee. International Coffee Organization, London.

ICO, 2013. Annual Review 2011-2012. International Coffee Organization, London.

Photo: John Belt

Photo: John Belt

ReferencesAnacafe, 2011. Guatemalan Coffees Green Book. 2nd Edition,

Guatemalan National Coffee Association, Guatemala City.

COFENAC, 2012. Las Estrategias utilizadas para la conversión de

pequeñas fincas cafetaleras en unidades agropecuarias autosostenibles

en el Ecuador: Sistematización de experiencias. Consejo Cafetalerio

Nacional, Manta, Ecuador.

ICO, undated. Coffee Statistics. www.ico.org. International Coffee

Organization, London

ICO, undated. The Story of Coffee. International Coffee Organization, London.

ICO, 2013. Annual Review 2011-2012. International Coffee Organization, London.

Improving smallholder income from domestic food markets | 23

1 A growing demand: the need to be competitive

Many African economies still depend heavily on export crops,

such as cocoa, tea and coffee. However the development impact

of agricultural exports, compared to sales in domestic markets,

is subject to debate (KIT, 2012). For African farmers, the greatest

opportunities seem to be found in the rapidly growing domestic

food markets. Population increase, urbanization and an expanding

middle class underpin a booming demand for food. By 2050, 60%

of Africans – about 1.2 billion people – will live in cities, compared

to 28% in 1980 (FAO, 2009). These urban populations already

demand a diverse range of higher-quality food, with processed

food becoming increasingly popular. Moreover, dietary patterns

are changing towards foods with more calories, fats and protein

(Reardon & Timmer, 2007). For farmers and small and medium

enterprises (SMEs) in Africa, the opportunities found in domes-

tic food markets will soon dwarf those of exports. However, to

encourage smallholder farmers to take advantage of domestic

markets requires investment in their capacity and business.

The Common Fund for Commodities (CFC), with co-funding

from the OPEC Fund for International Development (OFID),

particularly targets commodity sectors that cannot achieve their

potential because of limitations in finance and other types of

support. The Fund finances projects for smallholder farmers,

as well as SMEs, involved in commodity production, process-

ing and trade, to enhance their competitiveness. In this paper,

we shed light on the strategies of three CFC projects that aimed

at enhancing the competiveness of smallholders in a domestic

food market (potato, rice and dairy). The three projects used a

similar strategy: increase productivity, add value at farmer level,

and develop marketing arrangements. We will briefly present and

discuss the strategy for each of the projects, highlight some of

the innovative practices and key successes, and draw attention to

challenges for sustaining the achievements of the projects.

Improving smallholder income from domestic food markets

Ph

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2 The projects

Wealth Creation Potato Project

Commodity Potato

Countries Ethiopia, Kenya and Uganda

Aim Enhance the competitiveness of the East African potato sector

and small-scale potato producers

Key achievements:

•2,615farmersaretrainedinseedpro-

duction across the three countries.

•2,900tofcertified/qualityseedare

produced by the seed multipliers in the

three countries.

•SupportedSolagrowPLCintheset-up

of seed potato outgrower scheme.

•127diffusedlightstoresconstructed.

•Aeroponicsunits,co-fundedbythe

project, are established and put into

routine use, resulting in the production

of more than 20,000 mini-tubers in

Ethiopia alone, to date.

•279(179male/100female)extension

workers and farmer trainers are trained

as facilitators of farmer-group learning

on seed quality management.

•253farmergroupswithatotalof6,600

members have been trained since the

beginning of the project.

•Threecrispprocessingcompanies-

Deepa Industries Ltd, NORDA Ltd and

Chirag Ltd - in Kenya and one - TomCris

in Uganda - are assisted in improving

their supply from smallholder producers.

•Ninelocalpotatostakeholderforums

are established.

Competitiveness issue: potato proces-

sors and wholesale buyers chose to

purchase from traders rather than more

directly from smallholders.

Improving the competitiveness of rice in Central Africa

Commodity Rice

Countries Cameroon, Central Africa and Chad

Aim Improving food security and rural incomes, and reducing dependency on rice imports

Key achievements:

•Seedsystemsareredesignedandrebuilt.

•NERICAvarietiesaretestedand

adopted: 178,757 farmers are supplied

with improved seed.

•56farmergroupsareestablished.

•508processorsofrice-basedproducts

are trained.

•6riceprocessingcentersareestablished.

•Morethan30,000farmersimproved

yields by at least 50%, from less than

0.8 to 2 tonnes/ha for upland rice,

and from less than 2 to more than

6 tonnes/ha for lowland rice.

Competitiveness issue: rice bought by

urban consumers is mainly imported, a

missed opportunity for local producers.

Strengthening the productivity and competitiveness of the smallholder

dairy sector in Lesotho and Zambia

Commodity Milk

Countries Zambia and Lesotho

Aim Strengthen the position of resource-poor smallholder dairy producers

in the dairy value chain

Key achievements:

•901farmhouseholdshavebenefitted

directly.

•Farmersaretrainedinproducingim-

proved animal feed and in milk quality

management.

•Thepricepaidtothemilkcollection

centres has increased from US$0.39 to

US$0.49 in Zambia.

•InLesotho,theonlyformaldairy

processor in the country increased

the intake of milk from Mafeteng

from 52,000 to 95,000 litres, an 83%

increase.

•InZambia,Parmalattripleditsannual

intake from smallholders from 920,000

in 2007 to 2.65 million liters in 2010.

•DairyKinginLusakaincreaseditsmilk

intake from Mapepe milk collection

centre over seven times, from 46,000

to 375,000 litres per year.

Competitiveness issue: smallholder

dairy farmers mainly sell their milk on

the informal market, but the growing

formal market offers opportunities for

higher income.


3 Strategies to enhance competitiveness of smallholder farming

Enhancing the competitiveness of smallholders requires prod-

ucts (e.g. paddy rice, seed or ware potatoes, or milk) at an at-

tractive price, that meet the preferred characteristics as defined

by the buyers. Three parallel and synergistic intervention areas

enhance smallholder competitiveness: increased productivity,

value addition at farmer level, and improved marketing arrange-

ments. Each project initiated a mixed package of interventions

in each area (see Table 1).

3.1 Increasing productivity

Improved starting material

Lack of improved starting material is one of the first obstacles

preventing smallholder farmers from realising the full potential

of their crops. All three projects therefore introduced improved

starting material, for potato, rice and fodder respectively. In the

rice project, new Nerica rice varieties - were tested and selected

for upland and lowland cropping systems, and seed multipliers

were trained. The potato project not only promoted new varie-

ties, but also worked to improve the quality of seed potatoes

Opportunity

Productivity increase

Farmer value addition

Marketing

improvements

Table 1: Enhancing competitiveness

Improved starting material

Improved production

practices

Quality improvement

Value addition

Develop marketing

arrangements

Organizing producers

and other actors

Bulking produce

Potato Project

•Testingandpromoting

new varieties

•Productionofqualityseed

by seed farmers

•Seedmultiplicationby

aeroponics

•Seedqualitymanagement

by ware farmers

•Diffusedlightstoragefor

seed

Training farmers in:

•Crophusbandry

•Integratedpestanddis-

ease management

•Seedqualitymanagement

•Improvedwarepotato

quality to respond to pro-

cessor demand

•Facilitatedealsbetween

farmers and crisp

processors

•Localpotatostakeholder

platforms initiated

•Groupmarketingto

processors attempted

•Collectionsystems

developed by processors

Rice Project

•Testingandpromotionof

NERICA varieties

•Seedsystemimprovement

•Trainingofseedmultipliers

Training farmers in:

•Crophusbandry

•Compostingandgreen

manure

•Integratedpestand

disease management

•Improvedricecleaningin

processing centres

•Improvedparboiling,husk-

ing, polishing and grading

•Riceflourproduction

•Promotionofrice-based

by-products

•Linkingproducers,traders

and processors

•Co-owned(traders,farm-

ers, processors) processing

centres established

•Processingcentresupply

system developed

Dairy Project

•Seedforproteinrichfeed

production is made available

•Improvedcattlefeeding

•Milkqualitycontrolsystem

established

•Coolingequipment

introduced

•Farmercooperativesformed

and strengthened

•Milkcollectioncentres

established and improved

•Collectionsystemdeveloped


used. Aeroponics, an advanced mini-tuber production system,

was introduced. The system has a seed multiplication rate five

times higher than conventional multiplication in a screen house.

Additional efforts were made by the project to improve suc-

cessive generations of seed multiplication, by supporting the

development of seed businesses in order to improve the avail-

ability of affordable, high quality seed potatoes to smallholder

producers. In the dairy project, seed for leguminous crops was

distributed, to introduce farmers to the practice of producing

protein-rich feed for their livestock.

Good farming practices and integrated pest

and disease management

Productivity, as well as quality, can often be enhanced through

improved crop and animal husbandry, from seed selection

to postharvest practices. In the potato project, a number of

techniques were promoted: correct plant spacing, seed quality

maintenance through positive selection, integrated pest and

disease management, and regular replenishment of seed stock

from a reliable source. In the dairy project, farmers learned how

to feed their cows to obtain the highest quantity and quality of

milk. And in West and Central Africa, farmers were involved in

rice variety selection and received training in rice cultivation and

quality management.

Berga Lemaga, project coordinator of the Inter-

national Potato Center (CIP): “The reason behind

the success of the project is the fact that people

love to eat potatoes and are willing to pay for it.”

A reduction of losses, as a result of improved pest and disease

management, does provide opportunities for increased farmer

revenues. In the case of the potato project, management

of bacterial wilt, viral disease and late blight were important

determinants of yield. The project promoted an integrated

management strategy for these diseases. Farmers were trained

to combine the use of resistant varieties, proper seed quality

management, and optimum use of fungicides (both environ-

mentally and economically) to minimise crop losses.

The combination of high quality starting material and improved

crop and livestock husbandry practices proved to be a good

recipe. In four years, the productivity per cow and yields of

potatoes and rice have increased. Daily milk productivity of the

direct beneficiaries rose from 8.8 to 10.9 litres per cow in Lesotho

and from 3 to 5.5 litres in Zambia. In the potato project, yield

increases were realized as a result of project activities in each

of the three participating countries. The project showed that

the right combination of starting material and farming practice

could easily double yields under smallholder conditions. In the

rice project, yields are said to have increased from 0.8 tonnes to

2 tonnes per hectare for upland rice and from less than 2 tonnes

to more than 6 tonnes per hectare for lowland-irrigated rice.

3.2 Value addition at farmer level

The projects worked to increase the margin gained by pro-

ducers per unit of product, by ensuring the product was well

demanded in the market. Quality enhancement and farmer

processing are opportunities to increase both the marketability

and profit margin of each product.

Quality improvement

In domestic markets, the largest share of the surplus pro-

duced by farmers is often traded as a non-specified product,

without any specific quality rating. However, in the context

of increasing domestic market demand, smallholder farmers

may earn more if they supply the processing industry or urban

food markets with a specifically demanded quality of produce.

Processing industries, but also, increasingly, urban markets

require a quality standard that is often higher than that of

the bulk market. This provides an opportunity to smallholder

producers to specialize and gain additional income. To sell

their products to these higher-end markets, smallholder

producers need to enhance the quality of their produce, be-

yond the average quality supplied in the bulk market. Quality

enhancement is a relatively risk-free strategy for attempting

to increase margins. It is closely linked to the core business of

farmers - crop and animal production - and, other than mar-

ket intelligence about the desired quality, it requires relatively

little cash investment, making it affordable to cash-strapped

smallholder producers.

In Kenya, farmers in Bomet district became suppliers of quality

potatoes for the crisp processing industry. They produced pota-

toes fit for crisp production by growing a specific variety (Dutch

Robyn) and letting the crop mature fully, which many farmers in

the country do not do. Through the project, producers learned

how to gain this edge in the market, and were stimulated to

improve their production practices to respond to crisp proces-

sor demands.

In the dairy project in Lesotho and Zambia, milk quality was

a major constraint for smallholders competing in the formal

dairy sector. To improve milk quality to the required standard,

a collection system and cooling equipment were required.

The project equipped milk collection centres (MCCs) with

cooling facilities and transportation, and facilitated quality

control through the involvement of a milk quality and safety

control laboratory. As a result, dairy processors were persuaded

to purchase milk originating from smallholders.


Farmer managed processing

In the rice project in Central Africa, six rice service centres were

established to simultaneously improve quality, as well as initi-

ate farmer-managed processing. The centres enhanced the

quality of rice through improved cleaning, grading, husking and

polishing of the rice using improved equipment. This resulted in

a higher quality product and a lower proportion of broken rice,

which made locally produced rice more competitive with im-

ported rice. Secondly, the service centres pioneered value add-

ing by processing the broken rice into flour, from which biscuits,

cakes and other products can be made, which are being sold in

local markets for a premium compared to the raw product.

3.3 Developing marketing arrangements

The potato, dairy and rice projects invested in actively linking

producers to buyers. In the potato project, efforts were made

to link producers directly to a processor that had previously

sourced only from the wholesale market. In the dairy project,

smallholders were linked with processors that previously only

sourced from larger producers. Producers involved in the rice

project were linked to traders and were even made joint share-

holders in the cooperatives that run the rice service centres.

These centres organize input supply and rice marketing, and

provide rice processing services.

Roadside potato retailing,

Uganda

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In Kenya, the potato project attempted to link farmer groups to

a potato crisp processer, Deepa Industries Ltd. Deepa Industries

was seeking a more constant supply of high quality potatoes

by engaging directly with producers. Ultimately, contracting

individual farmers proved to be more efficient than working

with group contracts, as not all group members were able to

consistently deliver the quality required. Farmers still take part

in training and procure inputs as a group, but which processor

they sell to is now an individual affair. This should not be

considered a failure. Collective action is difficult to organize

and even harder to maintain. Economic activity which does

not require collective action is best left in the hands of the

individual farmers.

In the case of dairy however, individual marketing was a serious

constraint for competitive participation in the formal dairy mar-

ket and collective bulking was a necessity. Zambia was already

equipped with a professional, private, processing industry.

However the private processors only procured milk from large-

scale farmers. Quality improvement and informing dairy proces-

sors that sourcing milk from smallholder cooperatives could

be profitable, laid the foundations for fruitful collaboration.

However, in Lesotho, such a private sector was not present

and farmers were confined to the informal market or to selling

to the state owned processing company that was in decline.

Improved marketing arrangements, in combination with pre-

ferred and quality products, have strengthened the position of

farmers in the chain and led to higher prices in both the formal

and informal markets. Bulking of milk by MCCs has proved to

be an effective source for commercial dairy processors such as

Parmalat, Dairy King and FINTA. They offered a premium price,

and this opportunity of selling to the formal market has also

improved the power of farmers to demand higher prices in the

informal market.

Similarly, by buying directly from producers, the potato proces-

sor in Kenya has empowered potato farmers in Bomet. The

formal market outlet has also increased prices in local markets

as a consequence of farmers’ increased bargaining power. In

addition, the area has become even better recognized for pro-

ducing potatoes fit for crisp processing, resulting in competition

between buyers. Intermediary traders previously exploited the

farmers by putting potatoes in bags of up to 180 kg instead of

the recommended 110 kg, with payment per bag. Standardized

bags and scales provided by the company, and fixed prices,

increased transparency and encouraged producers to stand up

for their rights.

In the rice project prices for processed rice are higher and

marketing relations between smallholders and traders have

been intensified by joint cooperatives. There are, however,

substantial costs involved in maintaining the processing centers

and cooperatives, and the processing centers have to proof

to be both economic and organizationally sustainable beyond

the project life.

4 Conditions for impact at scale

The three projects have generated impressive results, reached

numerous farmers and laid the foundation for improved

incomes and livelihoods of smallholder farmers. However,

sustaining these achievements and even scaling up activities

Equipment in a rice processing center Training of technicians on equipment maintenance

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beyond the end of the project life and in other countries will

face several challenges. Some essential pre-conditions for

continued and increasing impact can be deduced from the

three projects, namely: an enabling environment, maintaining

innovation capacity and involving the private sector.

Enabling environment

For commodity sector interventions to be successful, the policy

environment should be enabling. The dairy development pro-

ject, for example, has been very active in involving and guiding

different government ministries in Lesotho and Zambia. It fa-

cilitated the establishment of a dairy act and the creation of the

Dairy Board of Zambia, representing dairy sector stakeholders.

In Lesotho, advocacy based on the project’s successes paid off:

the government made dairy development a national priority.

In Kenya, potato sector development is high on the agenda of

the Ministry of Agriculture with regard to its strategy for food

security and commercial agricultural development. It is already

the second most important food crop and the major cash crop

for smallholder producers in the Kenyan highland areas. The

Ministry of Agriculture has willingly assisted potato farmers and

made its extension officers available to the project. Researchers

from the Kenya Agricultural Research Institute (KARI) and the

International Potato Center (CIP) were also made available.

Developing and maintaining the capacity for

agricultural innovation

An important strategy for continued post-project impact is

the improvement of agricultural advisory services. The potato

project invested in training of public extension officers and

farmer trainers, who have the mandate to continue training

smallholder producers in improved potato husbandry. Similarly

in the rice project in Central Africa, public extension officers

trained NGO workers who were responsible for training farmer

groups. In the dairy project in Zambia, a public-private initiative,

the Golden Valley Agricultural Research Trust (GART), which is

part of the national agricultural research and extension system,

was responsible for extension and advisory services, for which it

employed its own extension officers and veterinary assistants.

Trained farmer groups form an important resource for continu-

ing farmer-extension collaboration. Farmers inform the exten-

sion officers when they are confronted with difficulties and new

field experiences, and thus contribute to the development of

relevant advisory services, adapted to the needs and conditions

of farmers. This is key to continuing agricultural innovation.

From a competitiveness point of view, continuous innovation is

required to be able to adapt to changing markets. The sustainabil-

ity of development and dissemination of new practices is a chal-

Training in improved

farming practices

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lenge. In Lesotho, for example, extension officers were paid by

the project, which cannot be sustained, while smallholder farmers

are not included to pay for training in the near future. Institution-

alisation of activities that have been introduced by a (temporary)

project is difficult. It is, however, possible. The potato project, for

example, initially paid the field allowances of extension staff to

facilitate the implementation of farmer group training. By the end

of the project, however, the respective public advisory service

mechanisms had integrated the farmer group training activities in

the regular activities of the Ministry of Agriculture, thus assuring a

continued increase in impact beyond the project life.

Sustainable use, depreciation and replacement

of equipment

The sustainable use, depreciation and replacement of introduced

processing equipment require sound financial management as

well as technical expertise. Having farmer cooperatives taking up

activities higher up in the value chain, such as processing, sounds

attractive but requires funds, management skills and specific

knowledge. The collective nature of cooperatives is a disad-

vantage for sound use, maintenance and management, both

technical and financial, of processing equipment. It can be more

effective to involve private companies, which have the necessary

funds and skilled personnel. For example in Zambia, private pro-

cessing companies are effective intermediaries between farmers

and the final markets. There are cases however, where there is no

pre-existing private processing industry, in which case processing

by cooperatives is one of the options to consider, as in the case

of the cooperative processing centres in the rice project.

Market opportunities as a pre-requisite for intervention

The main common denominator in the three projects is a grow-

ing domestic market for the three commodities. This does

provide for the most important of all incentives to innovate: the

promise of improvements in income. As said, current develop-

ments in sub-Saharan Africa, especially urbanization, create a

growing demand for food crops, which is presenting itself as

a major driver for change in agricultural systems. The three

projects show that, with a combination of relatively simple

interventions to improve productivity, enhance quality and

create new market linkages, important impacts on smallholder

livelihood can be achieved.

KIT, 2012. Domestic versus export markets: challenging the holy grail.

Royal Tropical Institute Policy Brief 1.

FAO, 2009. The State of Food and Agriculture. Rome, FAO.

Reardon, T. and C.P. Timmer. 2012. The Economics of the Food System

Revolution, Annual Review of Resource Economics, 14: 225-264.

These projects were made possible thanks to a contribution

from the OPEC Fund for International Development

Milk delivery at a milk

collection center

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CFC is undertaking more initiatives to promote PPPs

At the end of 2012, a workshop on ’Business Driving Agri culture

Development in Africa: New Realism or Wishful Thinking?’ was

organised by CFC (Common Fund for Commo dities), together

with the Royal Tropical Institute (KIT). The aim of the event was

to discuss the need for donors to finance the private sector’s

involvement in development. The workshop was followed up

in 2013 by ‘Follow the Money’ - a public debate on public private

partnerships (PPPs).

In general, the public debate on PPPs is polarised. On one

side, there are those that are highly sceptical. Frequent

complaints include:

• Public funding to private companies never reaches

the poor;

• Public money is provided to multinationals which

do not need financial support, instead of to small and

medium enterprises (SMEs);

• Companies would invest in developing economies

without public funding;

• Public money received by the private sector cannot

be monitored.

On the other side of the debate are promoters of public

support to private sector players. They, for instance, stress that:

• The private sector creates jobs and wealth that benefit

many poor people;

• Working with smallholders in developing economies is

a risky business for which companies need support;

• Traditional development aid has obviously failed - it is

time for a new more business-led approach.

These days everybody agrees that a thriving economy is one of

the core ingredients for achieving decent living standards

The keys to more effective PPPs

The keys to more effective PPPs | 31


in a country. Therefore, the question is not whether the private

sector should play a role in development but how they should

play it.

CFC has been forging collaboration between public and private

organisations since its initiation, well before the term ‘PPP’ came

into fashion. CFC’s long-term involvement in PPPs therefore

provides a good opportunity to provide some evidence-based

input into the debate.

In this paper, public as well as private representatives from

three completed CFC programmes in Kenya, Ethiopia and

Ghana/Sierra Leone discuss whether the combination of

public CFC finance and private investments have contri buted

to agriculture-based social and economic development, more

than separate public and private investment. The paper analy-

ses the defining characteristics of PPPs and why public support

was required. The impact of the PPPs is also discussed as well

as the extent to which this impact was directly linked to invest-

ment from public finance, and otherwise would not have been

achieved. Finally, lessons and recommendations are proposed

to help future CFC PPP programmes become more effective in

2013 and beyond.

What have CFC PPPs looked like?

Over the last decade, CFC has provided grants to several

commodity programmes in which the private sector was a

co-funder. By talking to the private companies and project

executing agencies (PEAs) of three PPPs funded by CFC, it

quickly becomes clear that there is no such thing as a blueprint

for a PPP. The three cases show considerable variation in

features such as the duration, the number of farmers involved,

the contributions of private businesses, as well as the invest-

ments made.

Name

Duration of the project

Country of private

sector participation

Budget (for that

country/region)

Private sector

organisation

Private sector

contribution

Private sector contri-

bution as % of total

Other contributing

partners

Project Executing

Agency (PEA)

Type of private

investments

Total farmers involved

Improving coffee quality in East

and Central Africa through enhanced

primary processing practices (Rwanda

and Ethiopia)

4 years

Ethiopia

USD 1,671,360

illycaffè

USD 122,195 (only Ethiopia) (+USD

150,000 technical assistance)

16%

Ministry of Agriculture and Rural

Development

CABI

Equipment: semi-washed coffee

processing and sun-drying systems

1,100 farmers

West African sorghum value chain

development project

5 years

Ghana and Sierra Leone

USD 2,897,000

Ghana Guinness Brewery (GGB) and

Sierra Leone Brewery Limited (SLBL)

USD 531,000 GGB and USD 372,000

SLBL (+investment in adapted factory

equipment)

31%

EUCORD and TechnoServe

EUCORD

Personnel, material costs and supplies,

operational costs, dissemination and

training

10,000 farmers

Wealth creation through integrated

development of the potato production

and marketing sector in Kenya, Uganda

and Ethiopia

4 years

Kenya (private sector only invested

in Bomet district)

USD 1,000,000 (estimated amount

for Kenya)

Tropical Heat (Deepa Industries Limited)

USD 73,483

7% (as part of the country budget which

was used in several districts, not only

Bomet; for Bomet only, this percentage

will be higher)

The Ministry of Agriculture and the Kenya

Agricultural Research Institute (KARI)

CIP - International Potato Center

Personnel (field officer and supervisor)

and operational costs (office rental and

meetings)

3,085 farmers (1,104 in Bomet)


In general major investments were in personnel (project staff-

ing) or provision of technical assistance (and training). The

Ghana Guinness Brewery (GGB) and Sierra Leone Breweries

Limited (SLBL) also invested in a much wider range of activities

than the private investors in the other two projects. illycaffè

was the only company that invested in processing equipment

for suppliers.

In the sorghum case study, apart from some subsistence farm-

ing, the supply chain was non-existent at the start of the pro-

ject. GGB and SLBL started off as the only buyers - a so called

‘buyers’ market’ in which there are only a few buyers. Logically,

this required larger investments from the private partners, who

were also the only commercial beneficiaries (apart from the

farmers).

In relative terms Tropical Heat invested less than GGB/SLBL for

two reasons. Firstly, from the start, Tropical Heat was facing a

lot of competition in the supply market, which increased its risk

in making large investments. Secondly, Tropical Heat is a much

smaller business with far less resources.

illycaffe investments

Equipment 45%

Technical Assistance 55%

4555

Tropical Heat investments

Personnel 93%

Operational cost 7%

93

7

GGB/SLBL investments

Materials and supplies 16%

Personnel 49%

Technical assistance 4%

Dissemination and training 11%

Operational cost 20%

Civil works 0%

494

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20 16

Illycaffé

illycaffè became involved in a CFC PPP to gain access to

improved quality coffee from Ethiopia through introducing

simple but innovative processing technologies. These

included raised drying beds for sun dried, conventional

coffee beans and hand pulpers for pulped coffee. Ethiopia

was, and still is, an important supply area for illycaffè but

the farmers were only producing low quality coffee. After

a small pilot, the late Ernesto Illy believed that Ethiopian

farmers could upgrade quality through support for produc-

tion and postharvest processes. He was already actively

involved in the International Coffee Organization (ICO)

that was implementing a series of CFC programmes. Seeing

the CFC PPP as an opportunity, illycaffè encouraged other

partners to participate in the project, including CABI, who

provide research consultancy. Alone, illycaffè would never

have started the project. As a roaster and seller of high

quality coffee which sources beans from exporting

companies, working with farmers was not a normal part

of its operations within the supply chain.

As an overseas importer, illycaffè does not directly deal with

farmers but depends on supply from local agents, who also

face significant competition for supply at farm level. Invest-

ments in primary production are therefore risky and there are

no guarantees of exclusive supply. This was underestimated at

the beginning of the project.

One of the common elements in the three PPPs was that a

not-for-profit entity was the implementing organisation

for the project. This is interesting because, in the end, the

projects (at least partly) aimed for commercial results. It is

also interesting to note that none of the private enterprises

contributed financially to monitoring and evaluation (M&E)

activities with the aim of tracking and learning from progress

made. Companies generally think that M&E is beyond their

mandate. On the other hand, the implementing organisations

also believe that M&E outcomes are more reliable when

companies are not managing them.


Why did the private sector engage in PPPs?

There are two key reasons why the companies became

involved in PPPs. The first was financial; companies needed

financial support from CFC for investing in new and under-

developed, small-scale supply markets to reduce their

financial risks. It was only under the pre-condition of

co-finance from CFC that the companies’ management

agreed to participate in the PPPs.

In addition, the companies needed technical assistance in

setting up and organising supply chains with smallholder

farmers. As the companies’ role in the supply chain is food

processing (roasting coffee, brewing beer or cutting and

frying potato crisps), and companies were primarily buy-

ing in bulk, without any traceability back to the source,

they were not involved in agriculture and thus lacked the

technical expertise to become directly engaged in primary

production. To gain this expertise, the companies cooper-

ated with CFC implementing partners such as TechnoServe

and ministries of agriculture.

Potato crisps processing

Tropical Heat

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GGB/SLBL

While EUCORD initiated the project within Heineken

(a major shareholder of SLBL), it was very much personally

driven in the beginning by a few senior managers at

Heineken. They believed that local sourcing was important

for the company, as well as for local economies. Because

relatively short-term planning is inherent to companies,

these kind of longer term projects are not always supported

by CEOs. CFC money and technical assistance through the

project in setting up local supply chains enabled Heineken

to make longer-term investments.

Tropical Heat

Tropical Heat was approached to participate in the programme

by CIP (International Potato Center). The key driver for

Tropical Heat to collaborate in the CFC programme was

to improve yields through stabilising supply of good quality

ware potatoes for its factory. Tropical Heat had not previously

been involved in farm production and needed assistance.

It engaged itself actively in supply chain meetings with

farmers and intermediate traders which gave Tropical Heat

a comparative advantage in the market.


Wider impact

So did the private investors feel they achieved their aims?

The table below reveals that, by the end of the project,

GGB/SLBL and Tropical Heat managed to attain higher quality

supply and increased efficiency, which reduced costs. illycaffè

was also successful in improving the quality of coffee supplied

by farmers. However, since the coffee was traded through

an open auction, illycaffè had to compete with other bidders

during the course of the project and could only access a small

proportion of the upgraded coffee.

The private sector players have been generally pleased

by the above results, but what about the wider impact

on society, which is necessary to justify the investment

of public funds in PPPs? The impact at farm level was

encouraging in terms of the number of farmers reached,

increased productivity and extra generation of income,

which benefited not only the farmers, but other family

members. For instance, in the potato project it was noticed

that, as a result of better incomes, farmers bought land,

dairy cows and vehicles, constructed houses and invested

in education.

illycaffé

Unknown

From 82% to 100% superior class for

both semi-washed and dried beans

GGB/SLBL

2,500 MT sorghum Ghana;

600 MT sorghum Sierra Leone

Due to decreasing costs of sorghum

because of more efficient supply

chains, cash was saved in Sierra Leone.

Break-even point was reached after

5 years. In Ghana, sorghum is not yet

competitive, but this is expected in the

near future as costs are still going down

Tropical Heat

500 MT potato

Potato browning went down from 1.79%

in 2010 to 1.19% in 2012

Conversion of raw potatoes to crisps in-

creased from 25% in 2010, to 34% in 2013

Volume purchased by

companies per year

Quality increase

Efficiency

Improving coffee quality in East and

Central Africa through enhanced

primary processing practices (Rwanda

and Ethiopia)

Men are owners, women are pickers

(family labour)

200 MT (green coffee beans)

Improved net income between

20% - 35% Price premiums went up 41%

for sundried and 78% for pulped coffee

Extension services through the project

and later on, government trainers

Organised and trained groups that im-

proved farm production and processing

practices

West African sorghum value chain

development project

10,000 farmers (100%)

Most lead farmers and 46% of

the smaller out-grower farmers

in Sierra Leone were women

2,500 MT Ghana; 600 MT Sierra

Leone (sorghum grain)

0.8 MT to 1.7 MT/ha in Ghana

Farmers doubled their incomes

(approx. 200% in Sierra Leone and

185% in Ghana)

Credit through banks for labour, fer-

tilisers and seeds, and medium-term

credits for tractors

Out-growers model: smallholder farmers

organised around larger lead farmers,

who provided inputs and training

Wealth creation through integrated

development of the potato produc-

tion and marketing sector in Kenya,

Uganda and Ethiopia

110 farmers in 2011 (reduced to

40 in 2013)

Mostly men

500 MT (potatoes)

9 MT to 15 MT/ha

Price per bag (110 kg) rose from

USD 24.6 to USD 35

Credits through Equity Bank for seeds;

fertilisers and spraying pumps through

the company

Organised and trained groups that

improved farm practices and postharvest

activities

PPP projects

Total contracted farmers

in the supply chain

Gender

Volume supplied by

farmers per year

Productivity increase

Farmers’ income

increase

Access to services

Empowerment


In addition, many indirect impacts have been observed. With the

significant increase in quality achieved by the illycaffè project,

improved farm and processing practices were also adopted by

non-project farmers and government extension personnel in

other regions. And the positive results of replacing barley with

sorghum led Heineken to start up similar projects in Burundi

and the Democratic Republic of Congo, with the intention to do

so also in Ethiopia where Heineken has established its newest

factory. At a corporate level, the experience in Ghana and Sierra

Leone has influenced Heineken’s policy to locally source 60% of

its raw ingredients for products made in Africa by 2020. Guin-

ness has followed suit, setting the target even higher, at 75%. A

follow-up project in Sierra Leone, in which more sorghum will

be purchased and processed, is currently being planned. Both

Heineken and Guinness have embraced the business case of

sourcing from smallholders.

Tropical Heat also underwent a significant change as a result

of the project. Before it started, Tropical Heat was completely

unaware of farm practices, growing seasons, required inputs

and so on. However, the project opened its eyes to the

importance of collaboration in the supply chain and, as a result,

the proportion of Tropical Heat’s turnover from potatoes grew

to 40% (compared to 25% six years ago). The company is

procuring 2,500 MT potatoes per year now, part of which is

exported to the UK, and it is currently planning to invest in a

cold storage unit in order to store potatoes for the off season.

Tropical Heat is also planning to increase its potato share to

50% of its business.

Henk Knipscheer (Eucord): “The likelihood that

the impact of present PPP interventions can still

be recognized in 5 years’ time is substantial.”

Would these results have been achieved by the companies

without public CFC funding? According to illycaffè, it would

not have invested alone at this scale in a single source. For

Heineken and Guinness, there was extensive internal resistance

to the new way of organising supply at the beginning of the

project. It was seen by many as too long-term, too small-scale

and thus too risky. Without CFC support, the project would

never have been introduced and accepted. For Tropical Heat,

the project revealed how quality and efficiency could be im-

proved by directly sourcing raw materials locally from farmers.

Coffee drying

Ethiopia

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Without public support, but even more so without the knowl-

edge provided from public institutions, the company would still

be buying on an ad hoc basis from traders bringing potatoes to

the factory.

However, public finance was not only needed to encourage

companies to source from smallholder supply chains. By invest-

ing public finance in private supply chains, public players have

more say and influence in the way companies do go about in-

teracting with smallholders. Without CFC, companies would not

have invested so much time in setting up new supply chains,

and would never have considered including smaller farmers or

paid attention to gender equity, capacity building, organising

farmers and M&E.

The other side of the coin

So what about any downsides to these PPPs? In other words,

are there lessons to be learned? In the case of illycaffè, the PPP

was not particularly successful for the company. The expecta-

tion was that, through its investment, illycaffè would access

good quality coffee. However, its competitors were also able to

gain from the investments made. The sector therefore gained as

a whole, which was good for CFC and the public stakeholders

in the project, but the result is that illycaffè is unlikely to invest

again in a PPP, at least not in this way and particularly not in

Ethiopia, where the sale of coffee is now routed through the

commodity exchange by law.

Tropical Heat also faced challenges, in particular with farm-

ers side-selling to competitors. As a result, Tropical Heat lost

money. This had much to do with the competitive market envi-

ronment and the role of the intermediate trader. In the project,

the trader became a transporter paid by the company; as a

result, farmers’ margins declined and they tried to gain money

in alternative ways. Working with just one transporter who holds

considerable power in the chain has led to a lack of trust be-

tween farmers and the company. This is the main reason why,

in 2013, only 35% of the suppliers remain contracted within the

supply chain.

Another inefficiency with the Tropical Heat and GGB/SLBL

projects was caused by the fact that the PPPs were run by

NGOs, which often hired not-for-profit service providers, such

as extension services, informal seed providers and local NGOs.

These kinds of organisations lack incentives to deliver high

quality services and develop efficient markets, which has been

a major cause for delay in achieving results in the Sierra Leone

sorghum project.

Finally, all cases have shown that for wider sector development,

more than one company should be involved in order to achieve

healthy competition. In the illycaffè project, it would have been

more beneficial if the investment had been shared between

more than one buyer because all the buyers benefited. In the

GGB/SLBL project, if more than one buyer had been involved,

farmers would have had more negotiation power and be less

dependent on a monopoly company (although this is now

changing as more buyers are coming in). Finally, with Tropi-

cal Heat, it would have been better to have shared the cost of

investment for the capacity building of farmers between more

than one processor, and to have worked with more than one

intermediate trader.

Quality manager

Tropical Heat

Photo: KIT


More effective PPPs

So does the combination of public CFC finance and private

investment contribute to agriculture-based social and eco-

nomic development?

Based on the studied examples we can firmly say that is does.

PPPs have the potential to create synergy between private

investment and public resources. There are, however, some key

factors for maximising the added value of CFC PPPs and keep-

ing expectations realistic:

1 The key objective of CFC PPPs should be to encourage ef-

ficiency in commodity supply chains in underdeveloped mar-

kets. By definition, risks in these types of markets are higher,

such that companies do not invest alone; this increases the

need and value of public grants or soft loans;

2 PPPs should promote competition: more than one buyer

should be involved, as well as more than one supplier

(farmers and other actors such as intermediate traders),

in order to balance power and reduce risks for farmer, sup-

pliers and the processing industries;

3 Private investments in activities that benefit an entire sector

(including their own competitors) are logically kept modest,

as they undermine the company’s competitiveness;

4 PPPs should include policymakers, to ensure commitment

and create a favourable climate for investors (e.g. in Ethiopia);

5 The processing industry should be actively involved in training

and multi-stakeholder activities, in order to set up direct rela-

tionships and enhance trust with primary producers;

6 Agri-services should be delivered by organisations that

have clear incentives to deliver high quality services at

a competitive price;

7 Monitoring, learning and evaluation are an essential

component of PPPs but should be independent, in order

to disseminate lessons learned objectively and freely.

M&E should therefore be financed by public money and/or

by the industry as a whole;

8 In order to guarantee the wider value of PPPs in follow-up

projects involving the same supply chains and companies, an

assessment should be made as to whether a company still

needs public support if the initial project has achieved success.

By taking these key factors into consideration, CFC has

the ability to increase its impact now and in the future.

Author Marije Boomsma

Acknowledgements The study benefitted from valuable

contributions of: Charles Agwanda, Morris Akiri, Dinah

Borus, Giacomo Celi, Henk Knipscheer, Berga Lemaga,

Gillian Kadenyi Muriithi and Navin Shah

This paper was made possible thanks to a contribution

of the Ministry of Foreign Affairs of the Netherlands

Left: Coffee

processing Ethiopia

Right: Tropical Heat

potato crisps

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III Report on progress of projects under implementation | 39

This chapter focuses on progress of projects and highlights

trends, patterns and constraints emerging during project im-

plementation in 2012. The overview brings out salient features,

patterns and/or trends with respect to:

• commitments, financing and disbursements;

• commodity coverage, project types and beneficiaries; and

• project start-up, execution, monitoring and supervision.

Commitments, financing and disbursements

By 31 December 2012, the Fund had approved 198 regular

projects plus a further 150 Fast Track projects, together 348

projects, with an overall cost of USD 602.9 million, of which the

Fund financed USD 304.1 million (about 50%). The balance of

project costs is co-financed by other institutions (USD 130.4

million or 22%) and by counterpart contributions in cash and/or

in kind (USD 168.4 million or about 28%), provided either by the

Project Executing Agencies, colla borating institutions, govern-

ments or International Commodity Bodies (ICBs). Common

Fund financing comprises USD 275.1 million in grant (90%) and

USD 29.0 million (10%) in loans.

According to the Fund’s audited statements the direct project

related disbursements in 2012 totaled USD 19,134,159 all grant

disbursements with no loan disbursements recorded. These

direct project related expenditures do not take into account,

project related expenditures under the Dutch Trust Fund nor do

they incorporate the European Contribution Agreements with

the CFC which were approved in 2007 and 2009. Disburse-

ments for the project commitments financed under the EU

AAACP programme (€ 9,043,792) were completed by December

2012. Some of these projects will continue with CFC co-financ-

ing in future years. It is expected that CFC disbursements and

repayments will continue to grow as the disbursement delays

for projects are being reduced both for loan and grant project

III Report on progress of projects under implementation

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operations. For 2013 special efforts will be made to reduce the

delays between project approval and commencement of actual

implementation on the ground.

As at 31 December 2012, 130 projects had been operationally

completed. In several cases these projects were completed with

some savings from the CFC grants originally approved by the

Board. The savings are returned to the pool of Second Account

resources or the First Account Net Earning Initiative once the

project account is closed. A total of 68 regular projects are cur-

rently under implementation or are in various stages of start-up.

CFC funded projects may also be classified into four broad

categories, namely (a) productivity improvement including

research (pre-harvest); (b) processing, marketing and quality

improvement (post-harvest value addition); (c) expansion of

market demand; and (d) price risk management.

Type of regular projects approved

by CFC as at 31 December 2012

Type of project No. of approved projects

Pre-harvest productivity improvement 46 (23%)

(including research)

Post-harvest processing, market access 96 (49%)

and quality improvement

Expansion of market demand 48 (24%)

Price Risk Management 8 (4%)

Total 198 (100%)

CFC-funded projects now cover over 40 commodities including

abaca, arachis, bamboo & rattan, bananas, cashew, cassava,

citrus, cocoa, coconut, coffee, coir, copper, cotton, fish, fonio,

groundnuts, gum arabic, hides & skins, jute, lead, meat and

livestock, medicinal herbs and plants, olive, palm oil, paprika,

potatoes, rice, natural rubber, shea nut, sisal, sorghum & millet,

cane sugar, tea, timber, tropical fruits, spices and zinc, most of

which are produced almost entirely in Developing Countries.

Participation of Private Sector: Private companies contribute

technical, commercial and financial inputs to CFC-funded pro-

jects. Moreover, in order to promote dissemination, replicability

and sustainability of project results, within and across countries,

representatives of relevant private companies are often invited

to final review and evaluation workshops organised for most

projects. Overall, more than 150 private firms have shared the

results of the CFC projects through technology dissemination

workshops, while over 80 private sector companies are directly

participating or have participated in the implementation of

approved projects. The interest of the private sector in techni-

cal cooperation with CFC projects increases by the day. Offers

from the private sector to co-finance specific commodity

projects are increasing. Recently, projects related to certification

of commodities, organic production, cotton classing, preven-

tion of cotton contamination, value addition and marketing with

strong support and co-financing modalities from the private

sector were approved by CFC.

4

24

23

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IV Regular Projects Approved in 2012 | 41

IV Regular Projects Approved in 2012

Cocoa

CFC/ICCO/44FA: Capacity Building on Price Risk Management Strategy for Cocoa Smallholder Farmers in Africa

Submitting ICB International Cocoa Organization (ICCO)

Project Executing Agency TWIN Ltd. (UK)

Countries Directly Benefiting Cameroon, Nigeria, Sierra Leone, Togo

Project Cost USD 654,217

Common Fund for Commodities USD 313,828 (Grant)

Counterpart Contribution USD125,580 (cash), USD127,365 (in kind)

Co-financing USD52,647 (AFD), USD34,797 (others) >>

ICCO/43: Integrated Management of Cocoa Pest and Pathogens in Africa: Controlling Indigenous Pests and Diseases and Preventing the Introduction of Exogenous Ones


Project Executing Agency The responsible PEA will be the Ghana Cocoa Board while the duties of the PEA

will be performed by Cocoa Research Institute of Ghana (CRIG)

Countries Directly Benefiting Cameroon, Cote d’Ivoire, Ghana, Nigeria and Togo

Project Cost USD 3,121,073

Common Fund for Commodities USD 1,232,102 (Grant) of which USD 615,000 will be provided from the contribution

of the OPEC Fund for International Development (OFID) to the CFC

Counterpart Contribution USD 937,724 (cash), USD 275,205 (in kind)

Co-financing USD 676,043 (from the Cocoa/Chocolate private industry)

The Board approved the project in April

2012. The total project cost is USD 3,121,073

of which the Common Fund finances USD

1,232,102 as a grant. Half of this amount

originates from funds of OFID (the OPEC

Fund for International Development), which

have been made available to CFC for spe-

cific project funding activities. Co-financing

of USD 676,043 has been committed by the

private confectionary industry. Counterpart

contributions amount to USD 937,724 in

cash and USD 275,205 in kind. This project

concerns pest and disease management

and prevention of major prevailing cocoa

diseases which have the potential to destroy

the entire cocoa economy in West and

Central Africa.

In 2012 Africa produced about 70% of the

world cocoa output, corresponding to 2.8

million tonnes out of a total of 4 million

tonnes. The five countries participating

in this project (Cameroon, Cote d’Ivoire,

Ghana, Nigeria and Togo) represent 98%

of the African cocoa production. These

countries face the continuous challenge to

protect their crop against indigenous and

exogenous pests and diseases, which con-

stitute one of the major constraints to farm

yield maximization, which in turn calls for

the implementation of an effective regional

strategy on Integrated Pest Management

(IPM). The overall goal of the project is to

implement a coordinated capacity build-

ing program among the major African

cocoa growing countries so as to mitigate

the negative impact of pests and patho-

gens on the productivity of cocoa planta-

tion and the quality of cocoa, which every

year is estimated to produce an average

loss of about 35% of the total marketable

cocoa production. The pests and diseases

identified as being of economic importance

include black pod disease, cocoa Swollen

Shoot Virus Disease (CSSVD), mirids, Frosty

Pod Rot, Witches’ Broom, Cocoa Pod Borer,

Cocoa Die-back Disease, Sting bugs, Stem

borers, Mistletoes and epiphytes. The impact

that these pests and diseases is having on

farmers include low yield and poor quality of

beans which translates to low income, high

cost of production in controlling pests and

diseases, health hazards as a results of use

of agrochemicals, lower morale/low invest-

ment (psychological impact). The project

aims at improving the productivity of cocoa

farms by reducing crop losses to indigenous

cocoa pests and diseases through aware-

ness-raising and capacity building on envi-

ronmentally sustainable and cost effective

IPM techniques. In addition, the project will

strengthen in-country and regional capacity

for improved pest surveillance for preven-

tion, early detection, eradication and contin-

ued control of invasive pests and pathogens.

Crop and pest management strategies, as an

integral part of Good Agricultural Practices

(GAPs) will be adopted as the main tool to

reduce crop losses by indigenous pests and

diseases and at the same time prevent the

spread in Africa of exogenous pests and

pathogens endemic to cocoa growing areas

in Asia and South America.

The project will be implemented by the

Ghana Cocoa Board, more specifically via

the Cocoa Research Institute of Ghana

(CRIG). The project will be launched on 15

April 2013 in Accra, Ghana back to back

with a regional workshop on Integrated Pest

Management in Africa.


The goal of the project is to equip cocoa

producers in West Africa with knowledge

and skills necessary to employ an appropri-

ate mix of instruments available to mitigate

price risks associated with global cocoa

markets.

There is a mismatch in terms of knowledge

and in the availability of appropriate instru-

ments in African cocoa producing countries

to enable effective risk mitigation strate-

gies. To address this issue, there is a need to

build capacity on understanding the price

formation and market information available,

on adequate risk assessment, on price risk

management instruments and on how to

use them adequately.

Using cocoa co-operatives as aggregator of

smallholders’ demands for hedging instru-

ments, the project will address the knowl-

edge gap in risk management by training

and capacity building to develop processes

and procedures to deal with cocoa price risk

in project participating countries. Bridging

this gap would enable cocoa smallholder

farmers to use available instruments to

reduce their exposure to the volatility of

cocoa prices, thus improving their resilience

to market shocks.

This will be achieved by implementing a

programme of awareness raising, train-

ing and capacity building on the costs, the

negative impact and mitigation measures

relevant to intra-seasonal cocoa price vola-

tility. This would lead to more predictable

incomes, better production management

and, eventually, more sustainable long-term

outlook for the cocoa sector in West Africa.

The specific objectives of this project are

(a) to identify the impact of price volatil-

ity in the participating countries and the

strategies in place to cope it as well as to

develop policy recommendations aiming at

improving these strategies; (b) assessment

and selection of price risk management

strategies and instruments followed by

awareness-raising through workshops; and

(c) to build capacity and to deliver train-

ing on price risk management strategies to

cocoa smallholder farmers.

Olive Oil

Economic Valorization of Olive Genetic Resources Creation of Pilot Demonstration Nurseries Centres (Quality Enhancement through Nurseries Development) Phase II of Project CFC/IOOC/03

Submitting ICB The International Olive Oil Council (IOOC)

Project Executing Agency Institut de l’Olivier (IO), Tunisia

Countries Directly Benefiting Algeria, Egypt, Morocco, Tunisia



Counterpart Contribution USD 800,000 shall be equally apportioned as a counterpart contribution in kind

by the four selected countries

The Board approved the project in October

2012. The total project cost is USD 1,700,000

of which USD 900,000 is requested from CFC

as a grant, and USD 800,000 shall be equally

apportioned as a counterpart contribution in

kind by the four selected partner countries

Algeria, Egypt, Morocco and Tunisia. The

Project will be implemented by the Institut de

l’Olivier (IO), Tunisia. The project is the second

phase of the successfully completed project

on “Conservation, Characterization, Collec-

tion and Utilization of Genetic Resources in

Olive”, which had enabled the characterization

and conservation of 310 local olive varieties

specific to the climatic and environmental

conditions of the Mediterranean Basin.

The main objective is to increase the

productivity and quality of the olive crop,

adding value to the commodity and raise

the earnings of the olive farmers. There are

four specific project outputs: a) establish-

ing a pilot nursery centre in each selected

country; b) demonstrating modern meth-

ods for the production of certified quality

olive plants; c) pilot production of a sig-

nificant number of top-quality olive plants

and disseminating and promoting the use

of local genetic material; d) training and

technology dissemination in improved

olive orchard management.

Each pilot nursery centre, to be developed,

will have a minimum production capacity

of 25,000 olive plants per year. The pilot

nursery will serve as a centre of excel-

lence for the demonstration of modern

propagation techniques and updated tech-

nologies in nursery based plant produc-

tion. High quality, high yielding and pest

free olive plants of selected local varieties

adapted to specific environments, climates

and soil proprieties and complying with

optimal phyto-sanitary standards, will

be propagated and distributed to farm-

ers. Project benefits are derived from the

increased value (volume and quality) of

olive production and increased skills of

farmers and nursery technicians in the

four countries. The establishment of pilot

nurseries will promote best practices and

technologies to other existing nurseries

and create a multiplier effect in terms of

number of beneficiary farmers and nursery

technicians. The project is expected to be

launched in the second quarter of 2013 in

Sfax, Tunisia.

Rice

CFC/FIGR/17: East African Rice Sector Development (Tanzania and Uganda)

Submitting ICB The FAO Intergovernmental Group on Rice (FIGR)

Project Executing Agency EUCORD

Countries Directly Benefiting Uganda, Tanzania


Common Fund for Commodities USD 1,044,910 (Grant), (of which USD 515,000 are provided from the contribution

of the OPEC Fund for International Development (OFID)

Cofinancing USD 872,179 (to be identified)

Counterpart Contribution USD 50,000 (EUCORD, Sasakawa Global 2000 and SNV) >>

The overall goal of the project is to improve

the level of food security and living stand-

ards of rice producers in East Africa. In order

to become more competitive with rice im-

ports from Asia in terms of quality and price,

the project will establish demand driven pilot

rice value chains in each country. Next to

smallholder farmers as the primary target

group, the project foresees active participa-

tion of rice millers, commercial farmers,

finance institutions and input providers.

The project intends to work with a minimum

of 8,000 rice farming households on 5,000

ha in each country and seeks to increase

their rice yield/ha from a current country

average of around 1.5-2 MT to an average

3.0 MT paddy/ha/year in the last year of the

project. Cumulative volume of paddy sold

to commercial rice millers is therefore esti-

mated to reach 12,500 MT in each country

and over the life of the project.

The project rationale and activities are

based on the results of two CFC work-

shops that were conducted in 2011 in

Uganda and Tanzania in order to take

stock of all previous and on-going activi-

ties in the East African rice sector and to

identify the major constraints and op-

portunities. It became clear that numer-

ous “upstream interventions” including

research on rice varieties and agronomy

(such as for example development of

NERICA varieties) have been undertaken,

while “downstream” activities such as

the competitive commercialization of

intensified rice production, has so far not

been adequately addressed. This has led

to suboptimal tangible impact of previous

rice sector initiatives in East African coun-

tries. The project will therefore address

the issue of low competitiveness of locally

produced rice, vis-a-vis imported rice in

terms of quality and price, that will lead

to an incentive for East African farmers

to engage in surplus rice production and

make the sector competitive, also for the

time beyond the currently applicable 75%

import tariff imposed on rice imports in

the East African Community.

The project will be implemented by the

European Cooperative for Rural Develop-

ment (EUCORD). EUCORD will engage lo-

cal partners in the implementation of the

project. Key partner in Tanzania will be the

Netherlands Development Organization

(SNV). In Uganda the partner will be the

NGO Sasakawa Global 2000 (SG2000).

Both organizations have a respectable

track record of implementing agricul-

tural development projects with a strong

focus on commercializing smallholder

agricultural systems. As of to date the

identification of a suitable co-financer is

still ongoing.

IV Regular Projects Approved in 2012 | 43

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Coffee

V Fast Track Projects Approved in 2012

CFC/ICO/53/FT/FA: Building a Financial Literacy Toolbox to Enhance Access to Commodity Finance for Sustainable SMEs

Submitting ICB International Coffee Organization

Project Executing Agency Finance Alliance for Sustainable Trade (FAST)



The project is a test case for the upscaling

of the positive outcomes of commodity

projects through financial sources exter-

nal to the CFC. The project would provide

practical facilities to bridge the gap between

technically successful project results and

their financial viability after completion of

CFC project financing. Project stakeholders

would be assisted in approaching private

financiers with interest in commodity sector

to determine financial viability of the project

outcomes.

The project would provide a systematic

framework to help project stakeholders to:

•analyzeandformulatetheoutcomesof

their projects as business models, focus-

sing on their capacity to operate without

donor support;

•meetlendersandothervaluechainstake-

holders (such as certification agencies,

importers etc.) to present their plans and

discuss their capacity to borrow and repay

loans from FAST lending members;

• concludethefinancingagreementbetween

successful project teams and lenders.

Grains/Roots and Tubers

CFC/FIGG/48/FT: An International Workshop on “Enhancing Food Security in Egypt and Sudan through the Development of the Grains Sector”

Submitting ICB FAO-Intergovernmental Group on Grains

Project Executing Agency to be determined

Countries directly benefiting Egypt and Sudan



The main goal of the project is to hold

a Regional Workshop that will facilitate

conduct of a full analysis of the wheat and

maize value chains in Egypt and Sudan and

identify collaborative actions needed to in-

crease wheat and maize production in these

countries. It is expected that the workshop

will assemble practical advice, solutions

and strategies to exploit opportunities to

increase wheat production and to improve

regional cooperation between Egypt and

Sudan. Some of the key outputs of the

project will be:

•Analysisofthesomekeypoliciesofgov-

ernment in the wheat and maize sector.

•Identificationofmainrequirementsand

opportunities for investment to improve

wheat and maize value chains including

technical improvement,

innovations and technologies.

•Preparationofthegroundforregionalcol-

laboration to secure sufficient wheat and

maize supply to meet domestic demand.

• Determinationofappropriatefuture

programmes and activities for increasing

regional wheat and maize production.

Metals (Base)

LZSG/21FT: Transfer of Technology and Promotion of Demand-Zinc Die Casting in India

Submitting ICB International Lead and Zinc Study Group (ILZSG)

Project Executing Agency International Zinc Association (IZA)

Country Directly Benefiting Malawi



Counterpart Contributions USD 160,000

Project activities are focussed on conduct-

ing die cast plant process audits, bench-

marking plant performance and traditional

industrial practices against international

standards with the aim to identify areas

for improvement in cost-efficiency,

productivity, quality and health, labour

safety and environmental sustainability.

In doing so the project contributes to >>


the modernization of the industry and

improving its international competitive-

ness; the first part of the project will be an

overall assessment of the Indian zinc die

casting industry that will include visits to all

major die casting plants. The visits will help

to clearly understand the technical state of

the industry and also to introduce the audit

program and identify potential demonstra-

tion plants. One such visit was conducted

to undertake a techno-economic assess-

ment of the Indian zinc die casting industry

through visits to all major die casting

plants. Five demonstration plants have been

selected for the second stage audits. A

technical expert from IZA India, undertook

a more detailed assessment of the zinc die

casting process in each of the five compa-

nies. An “Action Plan” was agreed between

each company and IZA at the end of the

audit. The Action Plan will be pursued

over the coming months to complete

the second stage, and the work done will

be used for the third stage of the project

which will involve a series of workshops

that will be open to all zinc die casters in

India. This will conclude the project.

Sugar

CFC/ISO/34FT: International Workshop on “Achieving Sugar Self Sufficiency: Challenges, Problems & Issues”

Submitting ICB International Sugar Organisation (ISO)

Project Executing Agency Indonesian Sugar Research Institute

Country Directly Benefiting Sugar producing countries in S.E Asia



Counterpart Contribution USD 10,000

The main activity of the project is a 2 day in-

ternational workshop with the overall objec-

tive of assessing constraints and identifying

opportunities for achieving self-sufficiency

in the sugarcane industry. The workshop

is being convened as a regional event to

share experiences and knowledge related to

achieving sugar self sufficiency in South East

Asia. The Workshop will facilitate stronger

linkages between the government, scientists,

sugar companies and the private sector and

this will assist in increasing production to-

wards achieving sugar self-sufficiency. One

of the expected results from the proposed

project is an arrangement for collaborative

research among countries in South East

Asia. Representatives from successful sugar

industries outside of the region, for example

from South America, will be invited to share

experience and facilitate future transfer of

expertise and technology.

Others

CFC/CFC/31/FT/FA: The Future of Producer-consumer Cooperation in Soft Commodities: redefining development challenges beyond the Integrated Programme for Commodities

Submitting ICB United Nations Conference on Trade and Development (UNCTAD)

Project Executing Agency Finance Alliance for Sustainable Trade (FAST)



Counterpart contribution USD 30,000 (UNCTAD, in kind)

This project addresses the concern of in-

ternational commodity policy makers about

the roots of international consensus on

commodities, based on the Integrated Pro-

gramme for Commodities adopted in 1970-s

which have not been fully re-examined since

then. As the matter of relationship between

commodities and development had never

been fully addressed in a holistic manner

since that time, current discussions on inter-

national measures in commodity markets are

limited in scope, which has impact on the

effectiveness of international cooperation in

commodity driven development.

The project is driven by the UN resolution

on commodities adopted in November

2011, and accompanying resolution on

commodity market volatility which called

on the CFC to facilitate cooperation

between international agencies and to

organize a High Level Thematic Debate

(HLTD) on commodity market volatility

which would report to the UN General

Assembly. The goal of the project is,

therefore, to enable informed debate and

to facilitate proper input to the delibera-

tions of the UN. The conclusions of this

debate will have direct implications on

the discussions on the future role and

mandate of the CFC.

The specific objectives of the project are

as follows:

•tofacilitateinformeddebateonthe

current understanding of development

significance of commodity dependence;

•torecognizefactorsbehindhighvolatility

and risk relating to commo dities; and

•topresentareasforinternational

consensus action in commodities.

CFC/CFC/32/FT/FA: Addressing Impact of Commodity Derivative Trading: A Public-Private Initiative on Market Volatility

Submitting ICB n/a

Project Executing Agency De Novo Agricultura Pty Ltd.


Common Fund for Commodities USD 110,000

Counterpart contribution USD 60,000 private sector, USD 10,000 UN >>

V Fast Track Projects Approved in 2012 | 47

The project builds on the international at-

tention on the matters of commodity market

volatility and its impact on development

to facilitate a larger public-private discus-

sion on the impact of financial trading in

commodity derivatives. The objective of the

project is development of a voluntary code

of behavior for derivative traders.

During the UN High Level Thematic Debate

on commodity market volatility a point was

raised that international organizations should

make an effort to engage with commodity

traders and increase their awareness of the

relevant development issues and concerns

of global community. This will facilitate a

dialogue with larger market participants who

can formulate a group action to respond to

the public concerns about market volatility.

The concentration of commodity derivative

markets in the hands of few large traders

makes it possible to collect a critical mass of

influential people around the issues of social

responsibility of derivative traders.

The private and public sector parties

essentially agree that the socioeconomic

impact of commodity market volatility must

be addressed. Nevertheless, the views on

effective measures to mitigate the problem

differ very considerably, and the lack of

common understanding of key underlying

issues prevents effective joint action.

This gap calls for a dialogue to reach

agreement on issues of common interest

to mitigate commodity market volatility and

its costs, as well as to channel financial

capital into investments into physical

production capacities for commodities of

high socioeconomic significance for

Commodity Dependant Developing

Countries (CDDCs).

The Public-Private Initiative (PPI) on Com-

modity Market Volatility is an effort to open

such dialogue, and is supported by five

major international banks active in com-

modity trading, with a further two banks

interested to join, as well as by the Common

Fund for Commodities, and UN agencies

with mandates touching on commodities

and development.

The project would support the emergence

of a “centre of gravity” in discussions on the

adverse impact of commodity derivative

trading, drawing from the voluntary interest

of the private sector to respond positively

and transparently to the negative public

perception of the rise in commodity market

volatility and its negative impact on develop-

ing countries.

The first meeting of the PPI on Commodity

Market Volatility took place in New York at

UN Headquarters on 25 September 2012,

facilitated by De Novo Agricultura. The

agreed outcomes of the meeting point

strongly to the need for modernised agenda

of action in commodity sector, includ-

ing research on newly emerging issues,

effective and feasible practical actions, and

better communications.

CFC/CFC/33FT/FA: Beyond 2015: The Role of Commodities in Development

Submitting ICB n/a

Project Executing Agency CFC



The project is intended to be a collabora-

tive effort with other international agencies,

academics and development paractitioners

aimed at the defining the role of com-

modities in the possible new framework for

development policy after the completion

of MDG process in 2015. The project would

develop a framework for engagement CFC,

ICBs and commodity dependent coun-

tries in the evolving global development

policy, directing measures and actions and

resources towards sustained economic

growth, enhancing incomes, generating

employment particularly for youth, meeting

needs of rapidly urbanising areas, creating

gender equity, enhancing food security

and creating resilience to internal and

external shocks.

CFC/CFC/34/FT/FA: Bridging the Gap between International Development Banks and SMEs in Emerging Markets

Submitting ICB n/a

Project Executing Agency tbd

Project Cost Euro 200,000

Common Fund for Commodities USD 120,000 (Recoverable Grant)

Co-financing EUR 100,000 (by the Ministry of Agriculture, Germany)

The project would support the implementa-

tion of a lending programme for SMEs by

the KfW and target value chain opportunities

linking SMEs to growing markets. CFC fi-

nancing for this project would allow KfW and

the local financing institutions to develop

and provide new financing products to the

local SMEs under the guidance and feedback

of commodity value chain finance experts

with extensive international experience

across the range of countries and com-

modities sectors. This would allow to trial

a wider range of instruments, schemes and

mechanisms for enhancing the diversifica-

tion of income opportunities available to

SMEs through their better integration in

high-growth value chains locally and inter-

nationally.

The project will enable CFC to leverage its

knowledge and expertise in agricultural value

chains to facilitate the emergence of new busi-

ness opportunities in Russia, with a possibility

of expansion to other developing countries.

CFC/CFC/35/FT/FA: Enabling Producer Organizations to Invest their way out of Poverty

Submitting ICB n/a

Project Executing Agency SCOPEinsight


Common Fund for Commodities USD 120,000 (Recoverable Grant)

Co-financing USD 120,000 >>


The project concerns an initiative to intro-

duce an independent rule-based evalua-

tion framework for farmer organizations to

reduce the barriers they face in accessing

investment. The project addresses one of

the fundamental problems of small produc-

ers in Developing Countries concerning

their poor access to bank credit. Traditional

approaches of lending are based on col-

lateral as the volume of lending involved is

too small and proper due diligence proves

prohibitively expensive. The result is that

large number of farmers with good skills,

good track record and productive practices

cannot get themselves recognized as good

borrowers because of their small size, and

have no opportunity to grow because they

unable to raise investable resources.

The project aims to develop an economi-

cally feasible and reliable scheme of assess-

ment of creditworthiness based on the suc-

cessful experience of certification schemes

into financing for agribusiness in developing

countries. The assessment of credit risk

would be based on the capacity of the bor-

rower to generate sustained cash flow and

manage their production successfully, as

opposed to traditional approach of banks

based on collateral. The project proposes

an innovative solution based, part, on infor-

mation technology and part on lessons from

volumes of data from value chain certifica-

tion schemes and microcredit operations.

A set of simple and observable indica-

tors, based on past experience, have been

identified, and evaluated for large number

of farmer groups by independent assessors.

The data is being put on a common data-

base. The easily accessible database would

reduce the costs of credit assessment of

the financial institutions by a few orders of

magnitude, and eliminate the due diligence

barrier in accessing bank lending for large

numbers of small farmers.

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VI Summary of

Ongoing Regular Projects 2012

CFC/INBAR/07: Development and Commoditization of the Pre-Fabricated Modular Bamboo Housing in Asia and Africa

Submitting ICB International Network for Bamboo and Rattan (INBAR)

Project Executing Agency The International Centre for Bamboo and Rattan (ICBR)

Countries Directly Benefiting Nepal, Ethiopia, China


Common Fund for Commodities USD 1,884,630(Grant) (of which USD 1 million from the OPEC Fund for

International Development - OFID)


The project objectives are to enhance the

design and technology of pre-fabricated

modular bamboo housing. This would

be done by establishing pre-fabricated

bamboo housing production centres in Asia

(Nepal) and Africa (Ethiopia) and by building

local capacities and transferring the tech-

nology developed in China. Specific objec-

tives include developing community-based

production chains and establish linkages

between community-owned pre-process-

ing enterprises and processing centres, in

order to maximise the benefits from the

projects to the poor, to build capacity of

local communities to cultivate, manage,

harvest and pre-process bamboo for the

housing industry and to promote bamboo

in the housing market in Asia and Africa as

a reliable and environmentally friendly

building material.

The project is making satisfactory progress.

Laboratory tests of the selected species have

been completed. Processing equipments

have been shipped and installed in Nepal

and Ethiopia. The processing and pre-pro-

cessing facilities have become operational

since May 2013. The final joint supervision is

planned in 2013 to verify the trial produc-

tion of bamboo panels, after which the final

dissemination workshop will be held and the

project will be officially closed.

Bamboo and Rattan

CFC/INBAR/09: South-South Initiative to Develop an Integrated Bamboo based-development Alternative in Latin America

Submitting ICB International Network for Bamboo and Rattan (INBAR)

International Tropical Timber Organization (ITTO)

Project Executing Agency International Network for Bamboo and Rattan (INBAR)

Countries Directly Benefiting Ecuador and Peru


Common Fund for Commodities USD 1,256,470 (Grant)


This project is a market driven initiative

targeted for poverty reduction and designed

to function effectively in a rapidly evolving

market place. The project’s primary invest-

ment justification is based on strong market

assessment of current and medium term

competitiveness which shows that poor

communities which grow bamboo in the

region are in potentially strong competitive

positions against other global producers. It

will support Ecuadorian and Peruvian small-

holders to produce bamboo efficiently and

competitively by training and field trials. The

project will support businesses at all levels

of the market chain by mobilizing start-ups,

technology and management transfer, busi-

ness services and information, international

and domestic business facilitation, credit

lines, trade fairs. Besides, it will support

government at local and national levels to

create Sector Enabling Environments for

business and farmers through exchange

visits, training of officials, support to national

and local policy development.

The project is making satisfactory progress.

42 training workshops have been held with

757 people trained on silviculture, construc-

tion, processing and business management.

Additionally 45 Trainers received certificate

as bamboo trainers. 6 centers of knowledge

were established. A national congress was

held in Lima in November 2012 and the

project was presented to delegates from

5 countries, and bamboo construction

code was updated. 2 bamboo tours were

conducted for awareness raising among

local and national government officials,

and 2 national committees on sustainable

bamboo management were created in two

countries. A new manual on production and

management of the local giant bamboo

species (Dendrocalamus) was produced.

The project was presented to the INBAR 15th

anniversary meeting.


Bananas

CFC/FIGB/04: Reviving Banana Cultivation in Guinea

Submitting ICB FAO Intergovernmental Group on Bananas and Tropical Fruits

Project Executing Agency United Nations Office for Project Services (UNOPS)

Country Directly Benefiting Guinea



Common Fund for Commodities USD 650,000 (Loan)

Counterpart Contribution USD 1,459,400

The overall objective of the project is to

establish an integrated pilot production and

marketing unit with modern farming and

marketing capacities involving both private

entrepreneurs and smallholder farmers. Pro-

duction focuses on premium quality bananas

for domestic and regional export markets.

Investment is being promoted by demon-

strating the technical and economic feasibil-

ity of modern plantations and associated

post-harvest processing and marketing units.

The project also links smallholder producers

to the input procurement and primary pro-

cessing and marketing capabilities of private

entrepreneurs to enable them to acquire

necessary inputs and access to processing

and marketing facilities. The project aims at

developing a nucleus plantation of private

entrepreneurs and associate smallholder

plantations, producing high quality bananas

through the introduction of new plant ma-

terials and high yielding varieties which are

resistant to pests and diseases. The new

plant material imported from France was

produced in-vitro and 150,000 plants were

distributed to the private enterprise (SITEB)

and to smallholders. The area cultivated in

banana under the project is approximately

75 hectares, comprising 50 hectares on

smallholders’ plots and 25 hectares on the

private plantations. Plant material produced

from the imported varieties is being sold to

non-project growers thus contributing to a

further rehabilitation of the banana sector in

Guinea. Technical assistance was provided

to ensure that plantations are run on sound

agricultural practices and the application of

appropriate inputs. The loan repayment is

overdue. Several rounds of discussion on the

recovery of the loan have been held, and the

beneficiary country has promised to propose

a solution shortly.

CFC/FIGB/10: Promotion of Exports of Organic Bananas from Ethiopia and Sudan

Submitting ICB FAO Intergovernmental Sub-Group on Bananas

Project Executing Agency International Network for Bananas and Plantains

Countries Directly Benefiting Ethiopia and Sudan


Common Fund for Commodities USD 2,340,600 (Grant) (of which USD 227,500 from Dutch Trust Fund contribution

and USD 1,000,000 from the OPEC Fund for International Development- OFID)

Counterpart Contributions USD 1,247,513

The project aims to improve rural develop-

ment through the promotion of organic ba-

nana production and marketing for export in

Ethiopia and Sudan. Specifically, the project

aims (a) to improve the access of the banana

sectors in Sudan and Ethiopia to world-wide

state-of-the-art organic export banana

production and post-harvest technology;

(b) to establish organic banana production

on 160 hectares in two pilot areas with the

active participation and training of small and

medium growers and their field labourers,

private sector suppliers, public and university

scientists, field extension workers; (c) to

export certified organic bananas with the

active participation of growers, field workers,

grower associations, private traders, trans-

port agents and suppliers and public sector

post-harvest specialists; (d) to strengthen

grower marketing associations to capture

greater value-added from export of organic

bananas with the active participation of

small business management specialists.

After a slow start, the project has now

managed to firmly establish an export sup-

ply chain of bananas between Sudan to the

Middle East with simple, yet effective meas-

ures to produce export quality bananas. To-

day some 40 tons of bananas leave Sudan

towards the Middle East on a daily basis. In

addition a number of European importers

of organic fruit are currently working out

first test shipments to Europe. This will over

time increase the number of buyers for

Sudanese bananas and thus ensure sustain-

ability of results. In Ethiopia, administrative

problems led to significant delays and the

project only commenced its activities in

2009. However since then, the project was

instrumental in generating a promising

contact with a large multinational banana

trader and test shipments for marketing in

the Middle East have been made that led

to further investments for preparation of

Ethiopia as a major supplier for bananas for

niche markets in Europe. In 2012, the first

banana exports from Ehtiopia for decades

went beyond Djibouti, with an initial ship-

ment of 18.4 tons to a trader in Jeddah,

Saudi Arabia. Subsequently, a second Saudi

company signed an export agreement for

a further five containers in April 2012 and

two more in May. As a consequence the

Ethiopian Government has financed a first

cold storage facility to further promote this

promising export sector.

CFC/FIGB/15: Promoting Production and Marketing of Organic Bananas in Asia

Submitting ICB Intergovernmental Group on Bananas and Tropical Fruits

Project Executing Agency Institute of Fruit Tree Research, Guangdong Academy of Agricultural Sciences, China

Countries Directly Benefiting China



Counterpart Contribution USD 880,000 >>


The general long-term objective of the

project is production of organic bananas

for export and for marketing in China con-

tributing to economic, environmental and

social well being in rural areas. China has

excellent agro-ecological conditions for

organic banana production, a policy to di-

versify horticultural exports and a strategic

geographic location with reference to Asian

and European markets. Project objectives

are: Piloting and promotion for developing

organic banana industry in China, increas-

ing export and share of organic banana

in domestic markets, larger benefits for

national and local economy, and alleviating

poverty in rural areas. Enhancing linkage

between R&D organizations, enterprises,

farmers, warehouses, exporters, and other

participants of the supply chain of organic

banana and provide to them the latest

information and most necessary services

related to production, post-harvest, and

market, so as to promote development

of organic banana industry and increase

competitive edge of the industry in global

market. 100 hectare of production and

test bases will be established in China, for

organic cultivation and treatment, training

of farmers, experiments to be carried out

by fresh preservation companies, research

institutes, colleges, and local promotion of

organic cultivation. Pilot base of organic

banana will be established to increase peo-

ple’s awareness of farm produce safety and

pollution reduction.

The project is fully operational since

September 2011 and is making satisfactory

progress. Farms from different regions were

selected to participate in the project. Series

of training activities on organic agriculture

practices and certification were organised.

Studies on domestic market for organic ba-

nanas were carried out. Organic fertilizers

and pesticides were distributed. Research

and test on the banana diseases control

were carried out by the PEA.

Cashew

CFC/FIGTF/04: Regional Cashew Improvement Network for Eastern and Southern Africa (RECINESA)

Submitting ICB FAO Intergovernmental Group on Bananas and Tropical Fruits

Project Executing Agency Naliendele Agricultural Research Institute, Tanzania

Countries Directly Benefiting Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Tanzania, Uganda




Cashew is a major source of income for

millions of small-scale farmers worldwide

with an annual production value of close

to 2 billion USD. While global demand for

cashew products is constantly growing in

terms of volume and value, African farmers

and policy makers are seeking to close the

gap on competitiveness with Asian produc-

ers in order to take full advantage of this

rapidly growing global market. RECINESA

stands out as a large-scale project cover-

ing the following countries: Ethiopia, Kenya,

Madagascar, Malawi, Mozambique, Tanzania

and Uganda. The project started in 2010

and revitalized the cashew sector in these

countries.

The project raised the incomes and living

standards of cashew growers, and enhanced

the environmental well-being through the

promotion of improved soil fertility through

agri-inputs provided directly to farmers.

The project collaborated with the central

ministry in each country, researchers, exten-

sion staff and farmers. It provided training to

extension staff in participatory approaches

and cashew-production techniques. These

extensionists in turn helped the farmers

organize into groups of about 50 farmers,

with sub-groups of 10 members each. In

each group of 50 farmers, one farmer leader

was selected to act as a resident extension

agent. The project developed easy-to-un-

derstand training materials such as flyers and

handbooks to support them.

During the 6 years, the project trained 300

extension officers and 17 district coordina-

tors. In total 15,000 farmers were trained

and 520 small farmer groups were formed.

It set up a system to exchange improved

cashew materials between countries and

research institutes. Some 500 kg of seed

were distributed, and germplasm materials

were imported from Brazil and Benin, and

distributed to the countries. The project

established 16 central nurseries to multiply

and distribute seedlings to farmers. Around

340,000 new cashew trees were planted

(about 5,000 ha). Five videos were prepared

and distributed; and 3,000 copies of a cash-

ew handbook were distributed in English,

French and Portuguese. Farmers adopted

most of the tech nologies and improved their

yields and quality of cashew.

RECINESA ultimately raised the incomes

and living standards of cashew growers

in the target region. First ex-post impact

indicators reviewed by CABI indeed confirm

that household income of many cashew

farmers is gradually increasing and first

farmers have reached an economic level

which allows them to apply for commer-

cial credit to further expand their farming

operations.

Coffee

CFC/ICO/11: Pilot Rehabilitation of the Coffee Sectors in Nicaragua and Honduras

Submitting ICB International Coffee Organization (ICO)

Project Executing Agency PROMECAFE

Countries Directly Benefiting Nicaragua and Honduras



Common Fund for Commodities USD 3,200,000 (Loan)

Co-financing USD 505,000

Counterpart Contribution USD 2,112,000 >>


The project includes the development of a

model for the modernisation of damaged

coffee processing facilities. Project activities

include restoring coffee-washing facilities and

enhancing the potential to improve coffee

quality and increase income of farmers. The

project also addressed the environmen-

tal degradation arising as a result of river

pollution emitted from old wet-processing

facilities. Innovative intermediate technologies

which reduce water pollution and econo-

mise on the use of water and energy were

introduced to smallholder coffee farmers.

The project financed the installation of almost

2,000 demonstration coffee-washing stations

using improved clean technologies through

the loan facility contained in the project. The

use of clean technology enabled people who

live downstream to have access to clean

water. The project contributed to a consider-

able improvement of coffee quality and value

exported by Honduras and Nicaragua. Grant

funded activities were successfully completed

in 2011 and loan monitoring is in progress.

CFC/ICO/15: Pilot Rehabilitation of Neglected Coffee Plantations into Small Family Production Units in Angola


Project Executing Agency United Nations Office for Project Services (UNOPS) in collaboration

with the Instituto Nacional de Café (INCA), Angola

Country Directly Benefiting Angola




Co-financing USD 2,980,000


The key activity of this pilot project includes

a demonstration of coffee rehabilitation

schemes by showing how production can be

increased on abandoned coffee estates and

how displaced people can be resettled. The

project provides support services, such as rural

extension, credit facilities and marketing infor-

mation services. Other aid agencies assist in

support for non-commodity related resettle-

ment activities of the farmers. Angola is highly

dependent on oil revenues and wants to

diversify its economy by bringing into produc-

tion abandoned coffee estates through the re-

settlement of displaced people and providing

support services to increase the productivity

of small coffee producers. Thanks to the good

coffee production practices introduced by the

project in the Port Amboin zone of Kwanza

Sul Province in Angola, production increased

three fold: from 529 MT in 2006 to 1,537 MT

in 2012. The 2011 production was even higher

than in 2012 because the 2012 drop was the

result of an unusual drought. One significant

feature of the project is the high level of

ownership of the project by the stakeholders

primarily the various arms of government and

the other stakeholders. The experience from

the project is being disseminated to other

locations of the country as a resettlement

model. The project operational activities will

be officially closed during the second half of

2013 while the loan repayment is scheduled to

be completed by 2016.

CFC/ICO/32: Diversification of Production in Marginal Coffee Areas in the State of Veracruz, Mexico


Project Executing Agency Veracruz Produce Foundation

Country Directly Benefiting Mexico






The project encouraged horizontal and ver-

tical diversification in marginal rural areas for

coffee producers who due to the low coffee

market prices are unable to generate suf-

ficient profits to sustain their livelihoods. The

aim of the project is to establish a defined

process of diversification for marginal cof-

fee farms in the State of Veracruz, Mexico.

Through technology transfer mechanisms

based on the capacity and experience of

the University of Veracruz, an entrepre-

neurial culture for small coffee growers has

been promoted through the setting up of

integrating enterprises. The ultimate goal to

identify and develop productive alternatives

and innovative ways of production which

encourage coffee farmers to stay in the

region. These activities result in additional

farmers income in the short and medium

term and improve the quality of life of coffee

growers’ in these marginal areas. Among the

other results obtained the following should

be mentioned:

• aproductivediversificationprogramincof-

fee farms located in marginal areas of the

State of Veracruz, covering 1,500 ha, (3.1%

of such marginal farms) was established

with current expansion of the pilot project

to the remaining areas of Veracuz which

the the State Government encourages;

•maintenanceofselected1,500haof

coffee under shade so as to generate and

conserve various ecological resources

such as “water conservation”, land and

regional bio-diversity;

•maintenanceofthelocalagro-forestry

system generating environmental benefits.

As a result of the above the security

of tenure of coffee farmers in the target

regions was better protected.


CFC/ICO/40: Increasing the Resilience of Coffee Production to Leaf Rust and other Diseases in India and four African Countries

Submitting ICB International Coffee Organisation

Project Executing Agency CABI Africa and India Office

Countries Directly Benefiting India, Kenya, Rwanda, Uganda and Zimbabwe


Common Fund for Commodities USD 2,918,720 (Grant) (Of which a USD 500,000 contribution from the OPEC Fund

for International Development - OFID)


The overriding objective of the project is to

build the capacity of institutions in order for

them to share improved germplasm between

participating African countries and India.

Objectives of a more specific nature are: to

conduct demand-led applied research for

variety evaluation that generates alterna-

tive methods for control of Coffee Leaf

Rust (CLR) and other diseases; to deliver

new knowledge including CLR resistant

germplasm and environmentally friendly

chemicals/botanicals to coffee growers,

particularly small holders; and to develop

a long-term approach to management of

coffee diseases in a sustainable manner while

increasing the profit margins for small-scale

coffee producers. Activities being undertaken

under the project are: identification of needs

and resources; rural community responses to

CLR and other diseases and the sourcing and

production of improved genetic material for

coffee production; conservation and identi-

fication of coffee varieties and disease races;

trials with new and existing materials under

a range of field conditions, on farms and on

field station; developing Scientific Manage-

ment Information Systems to facilitate faster

dissemination; and project management and

co-ordination. The project is under imple-

mentation in the participating countries of:

India, Kenya, Uganda, Rwanda and Zimbabwe

and is scheduled to close during the second

half of 2013.

Some key project outcomes are:

•Diseasesresistantmaterialsarebeing

experimented in trial farms in participating

countries.

• Farmersarebeingtrained,throughfarm

field school (FFS), in good Agricultural

practices leading to reduction in the use

of chemicals while improving yields. To do

so, the concept of farm field school (FFS)

has been developed with success through-

out the countries.

•Throughcooperationdevelopedbythe

project, planting materials from India

were given to farmers in Africa to test

their resistance to diseases and yield

improvement.

Overall the technical progress of the project

has been satisfactory and encouraging, and it

is on schedule according to the 2012 project

work plans and budgets. However, in Uganda

the droughts of 2008 and 2009 made pro-

gress in evaluation of varieties for resistance

to lag behind that of other countries, although

the trials finally took off and substantial data is

being collected. Very useful results are being

generated in trials and FFSs. From a social and

environmental perspective, the project has

provided the potential for resistant varieties

or sources of resistance to the main coffee

diseases namely coffee leaf rust and berry dis-

eases. This will contribute to a reduction in the

use of environmentally unfriendly fungicides.

In addition, this would reduce losses due to

the two diseases, thus improving coffee pro-

duction, and increased incomes, which in turn

contributes to social benefits to coffee farmers.

CFC/ICO/42: Developing the Potential of the Gourmet Robusta Market Gabon and Togo


Project Executing Agency CABI

Countries Directly Benefiting Gabon and Togo


Common Fund for Commodities USD 1,782,113 (Grant) (of which a USD 500,000 from the OPEC Fund for International

Development- OFID)


The project aims to demonstrate, on a pilot

basis, that farmer incomes derived from

robusta quality coffee production and pro-

cessing can be significantly improved. This

improvement will come from the enhanced

quality and yields from the coffee, as well as

the production of gourmet quality robusta

coffee. This will be achieved through bet-

ter crop husbandry, improved sun-drying/

processing, and the introduction of some

washed coffee processing. The production

and processing work has been linked to a

focus on quality, including liquoring train-

ing and cup quality evaluation, as well as

marketing, with promotion activities aimed

at finding premium buyers for the coffee

produced. The project components com-

prise:- identifying the zones and participat-

ing farmer groups; extension training in crop

husbandry; making seedlings of improved

planting material available to farmers;

improved processing of sun-dried robusta

coffee targeting certain specialist buyers of

fine quality sun-dried robustas; installation

of washing equipment to produce washed

robusta coffee; and training of farmers in

the production of washed coffee; liquoring

training for quality evaluation, and marketing

and promotion activities to ensure premium

prices are obtained. Good progress has been

realised in respect to improving quality and

productivity enhanced by supply of superior

planting materials provision of coffee drying

equipment coupled with capacity building

through training, supply of hand pulpers and

training of coffee liquorers. Progress made

by the project is especially rewarding on the

production side. On the marketing side the

project participates in coffee cup tasting

competitions and in marketing trials organ-

ized by the Specialty Coffee Association of

America. Some of these project outputs are

summarized below:

•Manualongoodagronomicpractices

finalised and distributed for use by various

regional delegations;

•Trainingoffarmersingoodagronomic

practices;

•Establishmentandmaintenanceof

the demonstration and pilot sites;

•Installationofthedrymill;

• Trainingandfollowupongoodprimary

processing and post-harvest handling;

•Observationoftheharvestingand

processing of coffee among pilot farmers

following training and tech nology transfer.


CFC/ICO/46: Competitive Coffee Enterprises Programme (Guatemala and Jamaica)


Project Executing Agency National Coffee Association of Guatemala (ANACAFE)

Countries Directly Benefiting Guatemala and Jamaica




Co-financing Loan USD 1,000,000 (Oikocredit)


The main objective of this project is to

improve the competitiveness of small cof-

fee producers in two selected regions in

Guatemala (Fraijanes and Cobán) and in two

selected regions in Jamaica (the Central and

Northern regions in the Non-Blue Moun-

tain- Lowland). The target of the project

relates to improvement of coffee quality

and productivity as well as to ensure better

organizational and management capacity of

coffee farmers. In addition to grant financing

for capacity building, the project also has

provision for lines of credit through a com-

bination of loans from CFC, and the Dutch-

based micro-finance institution Oikocredit,

to be made available to small holder coffee

farmers in Guatemala through collabo-

ration with local credit institutions. The

identification of Cooperatives and Producer

Organizations in Guatemala and Jamaica

has been completed and activities related

to institutional strengthening are underway

in both countries utilising the proceeds of

the CFC grant. In Guatemala and Jamaica

some 40 producer groups received training

on the entire process of nursery prepara-

tion i.e. from how to establish a seedbed to

transplanting the seedlings to the nursery

bag. In addition training in coffee plantation

management, shade management, fertilizer

application, pruning, coffee quality control,

wet processing methods and promotion of

domestic consumption was also conducted

by the Anacafé technicians and the Coffee

Board of Jamaica. In both countries regular

barista training is conducted as part of a

campaign to promote domestic consump-

tion of coffee.

With reference to the loan component,

Jamaica has confirmed that it is not in a

position to take up the loan portion because

of fiscal constraints. Work is in progress to

complete the documentation towards loan

disbursement for Guatemala.

CFC/ICO/45: Building Capacity in Coffee Certification and Verification for Specialty Coffee Farmers in Eastern Africa


Project Executing Agency Eastern Africa Fine Coffee Association (EAFCA)

Countries Directly Benefiting Ethiopia, Kenya, Uganda, Tanzania, Rwanda, Burundi, Malawi, Zambia and Zimbabwe


Common Fund for Commodities USD 2,000,000 (Grant) (of which USD1 million from the OPEC Fund for International

Development - OFID)

Co-financing USD 1,500,000 (EU/AAACP Commodities Programme)


The rationale of the project is to build certi-

fication and verification capacity within the

national coffee producing bodies of nine East

African countries. Ultimately the project pur-

pose will be to increase the quality and quan-

tity of certified / verified coffee produced and

processed within the EAFCA region through

training of master trainers, trainer of trainers,

certifiers / verifiers (auditors) and farmers. The

process of building capacity for good agricul-

tural practices and sustainable production will

lead to socially acceptable, environmentally

friendly and economically successful coffee

production among producers.

Since its inception, the project has made sig-

nificant progress towards implementation of

project activities which led to farmers who are

now more equipped to produce the quantity

and quality of certified coffees resulting in

greater market access and better prices as

well as an overall sustainability of production

practices. Baseline studies have been com-

pleted in all of the countries to more clearly

identify the specific needs of each country

so that the training planning process can be

tailored accordingly. Another precursor to the

training process was the development of the

training manuals which have been completed

and culminated into the training of master

trainers and on-going trainer-of-trainers

training. One key output was the develop-

ment of the Generic Training Manual which is

being used to guide the training process for

the project.

The 3060 farmers trained in the project so far

have their coffee certified with respect to the

various certification schemes being applied in

the project countries.

Progress in farmer training on Certification/

Verification has been attained in eight coun-

tries including Rwanda, Burundi, Malawi, Tan-

zania, Kenya, Zambia, Zimbabwe and Uganda.

In the same vein, 1411 farmers from Kabonera

Coffee Association from Uganda have been

4C verified. This entails that the said group of

farmers will be able to sell their coffee as 4C

verified or sustainable coffee. Other groups in

other countries are progressing towards cer-

tification in Fairtrade and organic certification.

Farmer training in Ethiopia has been sched-

uled for the upcoming phase as the project

implementation approach in Ethiopia had

to be redefined following the administrative

changes that occurred at the Ministry of Ag-

riculture after signing of the Memorandum of

Understanding (MoU). The project has trained

eighty-eight trainer-of-trainers to date.

To date eighteen (18) auditors have been

trained and ultimately thirty-six (36) audi-

tors will be trained from nine participating

countries.

The project participated in the exhibition

of some of the coffees coming from the

project farmers. The coffee from Kabonera

Coffee Association from Uganda was show

cased at the World of Coffee Conference and

Exhibition in Nice, France in June 2013. Other

coffees from the Taste-of-Harvest (TOH)

competitions from the project participating

countries were also show cased. A coffee

cupping session for European and other

International buyers was also held in order to

show case the quality of coffees coming from

the project participating countries. The quality

of coffees was well received by coffee buyers

from Europe and other regions.


CFC/ICO/48: Sustainable Credit Guarantee Scheme to Promote Scaling up of Enhanced Coffee Processing Practices in Ethiopia and Rwanda


Project Executing Agency CABI and Rabobank International Advisory Services (RIAS)

Countries Directly Benefiting Rwanda and Ethiopia


Common Fund for Commodities USD 1,240,270 (Grant) (of which 600,000 USD from the OPEC Fund for International

Development- OFID)


Co-financing Grant USD 325,870

Co-financing Loan Guarantee USD 4,250,000 (Rabobank, Banque populaire du Rwanda, Oromia Bank)


The project seeks to design and implement

a credit guarantee scheme to enable small-

holder farmers to gain access to commer-

cial loans necessary to purchase and install

improved coffee processing equipment; and

to enable the cooperative societies to more

effectively purchase and export the resulting

high quality coffee produced through the

improved processing practices. At the same

time, the project responds to the emerg-

ing challenges to sustainable production of

high quality coffee by providing technical

assistance to promote good agronomic and

processing practices. The accelerated flow

of market information to all players in the

coffee chain promotes good governance

of the cooperative societies. The primary

beneficiaries are the farmers who benefit

from technical and credit support to pur-

chase inputs and farm equipment for coffee

production. The lead role in terms of imple-

mentation of the grant is taken up by CABI.

Rabobank coordinates the loan operations

and also provides co-financing. ILLYCafe

and UNIDO are also expected to contrib-

ute to the project. The local participating

banks (Cooperative Bank of Oromia and the

Banque Populaire du Rwanda) will benefit

from capacity building in credit assessment

and management. The co-operatives will

also be able to export their coffee directly

to the consuming markets.

The project has so far been successful in

the activities related to capacity develop-

ment but less so in terms of loan disburse-

ments. Some key reasons for the slow

loan disbursement have been identified

as temporary liquidity issues and issues

related to the credit worthiness of the co-

operatives. Steps are being taken to resolve

these issues to improve the disbursement

rate. The project partners recognise that

capacity building towards sustainable

credit worthiness takes a long time and is a

continuous process and this is being built

into the project implementation process.

The project is already showing benefits

that were not identified in the design. For

example Rwanda has recognised that the

system of co-operative unions in Ethiopia

is very effective and would like to develop

a similar system in Rwanda based on the

Ethiopian model.

CFC/ICO/51: Rehabilitation of Coffee Farmers in the DR Congo


Project Executing Agency Café Africa International

Country Directly Benefiting Democratic Republic of Congo (DRC)


Common Fund for Commodities USD 1,368,990 (Grant) (of which USD 700,000 from the

OPEC Fund for International Development- OFID)


The overall goal of the project is to revive

the coffee sector in the DRC and reduce the

rural poverty at the national level. From a

more specific perspective, the project seeks

to improve sustainable livelihoods of coffee

producers affected and/or displaced by war

in three Eastern provinces of DRC (Orientale,

North Kivu, and South Kivu) thus contribut-

ing to supporting their economic integra-

tion in their communities of origin through

coffee farming. The project will contribute

to a broader commodity specific goal: the

revival of the coffee sector in DRC as well as

the sustainable reduction of rural poverty as

stated in the national coffee sector strategy

(2011-2015).

The project will serve as a model for reset-

tlement of persons displaced by war through

providing a sustainable income base which

will contribute to overall economic gains

for the country at large. The establishment

of mother gardens and seed gardens in col-

laboration with national research institutions

will allow for the production of improved

planting material (high yield and disease re-

sistant) which will be disseminated through a

network of local nurseries. The involvement

of well-trained coffee extension services

(ONC) will ensure that local coffee farm-

ers are supported in the adoption of good

agricultural practices which will lead to an

increase in productivity. The project will also

support the creation of linkages between

the various actors of the value chain so as

to improve quality and marketing efficiency.

This will result in improved coffee farm gate

prices. Finally the sustainability of the project

will be assured by supporting the enhance-

ment of the coffee sector governance

through a multi-stakeholder process.

The Project implementation has been de-

layed because after approval of the project,

the originally selected PEA, Cafe Africa

indicated that it would not be in a position

to act as PEA. The CFC identified VECO

(Vredeseilanden) a suitable organisation to

act as PEA for the project.


Submitting ICB International Cotton Advisory Committee (ICAC)

Project Executing Agency CABI - Nairobi

Countries Directly Benefiting Kenya, Mozambique


Common Fund for Commodities USD 464,600 (Grant) (incl. USD 250,000 from the OPEC Fund for International

Development – OFID)


Co-financing USD 1,000,000 (EU/AAACP)

The project sets out to improve the profit-

ability and competitiveness of small-holder

cotton production, making it an attractive

enterprise providing a sustainable sup-

ply of seed cotton to local ginneries. It will

facilitate the development and implementa-

tion of better management practices (BMP)

that result in more sustainable production

of cotton. The project is being implemented

through direct introduction of improved

practices at field level, involving farmers

individually as well as through representa-

tive organizations, and it should provide

operational lessons and recommendations

with regard to small-holder production

improvement in market-oriented production

systems (Kenya) and those in concession

oriented production environments (Mozam-

bique). The project builds linkages within the

value chain to ensure farmers have access

to inputs, technologies and information that

will enable them to produce more cotton

more competitively and with greater profit-

ability. The project forms part of the EU’s

All ACP Agricultural Commodities Pro-

gramme (AAACP), which provides substan-

tive co-financing. The project purpose is

to “improve cotton production efficiency

through formulation and promotion of

Integrated Crop Management (ICM) options

in cotton production systems in Kenya and

Mozambique by involving private enterprises

and public organizations”. The project will

include i) Introduction of best practice ICM

packages; ii) Promotion and adoption of ICM

packages; iii) Building stakeholder linkages

for sustaining ICM; and iv) Evaluation of the

impact of ICM adoption.

The project has reported satisfactory pro-

gress. Baseline studies have been undertaken

in selected areas of both countries and the

results thereof have been published and

presented at the World Cotton Research

Conference (2011) in Mumbai. Results of the

survey’s and other technical cotton area as-

sessments have been utilized to tailor-make

optimum production cum crop protection

packages to be used by the farmers in the

project areas. Farmer Field Schools have

been established and training-of-trainer pro-

grams have been initiated. Training programs

and crop management practices have been

developed (and are being monitored) based

on thorough field/client visits. Consultations

and exchanges focusing on strengthening

within-supply chain linkages are ongoing,

whereby special attention is being paid to the

position of the farmers therein. The project

has been subject of an external expert evalu-

ation undertaken in September 2012. The

outcomes have given guidance to adjust-

ment where deemed useful and recommen-

dations made by the evaluation team have

been incorporated in the 2013 work plan.

Activities in 2013 will focus on continuation

and expansion of training activities strength-

ening the position of small holders in the

supply chain through regular meetings of

actors in the supply chain. Main outcome

of this year’s work will be transparent and

operational information comparing the end-

of-project situation with the outcome of

the base line study conducted at the start of

the project, identifying key areas of progress

(strengthening income security) for small

holder cotton producers as well as drawing

lessons at policy level resulting from the

different cotton-sector structures in the two

countries in the project.

Cotton

CFC/ICAC/37: Improving cotton production efficiency in small-scale farming systems in East Africa (Kenya and Mozambique) through better vertical integration of the supply chain

CFC/ICAC/38: Prevention of Seed Cotton Contamination in West Africa (Burkina Faso, Côte d’Ivoire and Mali)


Project Executing Agency IFDC West Africa

Countries Directly Benefiting Burkina Faso, Cote d’Ivoire and Mali


Common Fund for Commodities USD 2,000,000 (Grant) (incl.USD 500,000 from the OPEC Fund for International




The project aims to increase direct income

accrued by small-holder cotton producers

in the selected production areas through

enabling them to produce and sell uncon-

taminated seed cotton. It is estimated that

ultimately (once the system has gained

credibility) income increases exceeding 5 –

10% of the current incomes can be realized.

The project will facilitate producer training

and provision of required harvest/collection

inputs as well as building/strengthening the

required institutional arrangements between

the different commercial partners involved

in the early stages of the supply chain

(producers and their organizations, traders,

ginners, cotton companies, etc). Target is to

have (at project-end, in 2012) some 27,000

farmers firmly established in the programme,

who should jointly produce at least some

100,000 tons of seed cotton. The project

forms part of the EU’s All ACP Agricultural

Commodities Programme (AAACP), which

provides substantive co-financing (in the

years 2010 – 2011). Parallel to the project

activities, the World Bank (also AAACP-

funded) initiated a programme that will focus

on developing the required institutional and

legislative arrangements at national level to

ensure the regulatory/institutional sustain-

ability next to the commercial sustainability

resulting from the direct project activities.

The project was approved in October 2009.

During the first half of 2010 co-operative >>


arrangements were put in place with the

lead cotton organizations (including pro-

ducers, processors and marketing agents),

after which the project made an effective

start in the second half of 2010.

During 2012 substantive progress has been

reported. In preparation for the 2011/2012

crop more than 18,000 farmers have been

trained, whereby it is to be noted that these

were not evenly distributed over the three

countries as planned. Due to the political

situation in Cote d’Ivoire, fewer farmers

could be reached than planned. This was

“compensated” by increasing efforts in the

other two countries, enabling a reach-out of

some 8,500 farmers in each country. Parallel

to training and awareness programmes ad-

dressing farmer groups in the project area,

also the envisaged trainings to transport-

ers, gin operators, etc was given. Improved

cotton-based harvest kits (consisting of

sacks, tarpaulins and covers) have been

locally produced and distributed. In that

season, some 120,000 tons of seed cotton

was produced by the participating farmers.

Extensive sample taking has taken place

to enable statistically relevant analysis for

quality control/contamination detection in

specialized laboratories in Mali and Burkina

Faso. Although initial results look promising,

more awareness training and quality control

through-out the process of harvesting, col-

lecting, storing, transportation, ginning etc

seems required. These considerations have

been taken into account when planning the

final year’s activities.

The project has been subjected to an ex-

ternal expert evaluation in December 2012.

Overall findings regarding the project’s rel-

evance, approach and results were positive.

Recommendations for improvement were

taken into account in the planning of the

final project activities.

An important aspect that was noted dur-

ing 2012 related to the cotton companies’

efforts to ensure realization of premium

prices on the national and global markets.

This aspect, which should ultimately en-

able higher prices to be paid to partici-

pating farmers requires further reflection

and consultation with, in particular the

marketing departments of, the cotton

companies. This will need to be addressed

in the remaining project period (up to end

March 2013), and subsequently consist-

ently discussed and monitored within the

framework of the activities of the African

Cotton Association (ACA) in its efforts to

increase the overall quality and market-

ability of African cotton.

CFC/ICAC/40: ProCotton: Improving Productivity and Marketing of Cotton through Strengthening of Selected Producer Organizations in Eastern Africa


Project Executing Agency Solidaridad (Netherlands)


Common Fund for Commodities USD 500,000 (Grant) (incl. USD 250,000 from the OPEC Fund for International



The project intends to provide a range of

services to selected producer organiza-

tions, thereby increasing producer incomes

in sustainable manner. Based on self-as-

sessments (if need be supported by project

expertise) producer organizations can re-

quest support from the project in five fields:

technical assistance (focus on agronomic

practices); access to finance; market ac-

cess; capacity building; and diversification/

value-addition. The current project is a pilot

activity to assess the perspectives of using

this approach to effectively access and sup-

port producer organizations in the African

cotton sector, based on successful experi-

ences with other commodities in other

regions. The project has been approved by

CFC in April 2011. The project has made an

effective start-up in both project countries

(Tanzania and Zambia) in October 2011.

In Tanzania, the main counterpart is Bio-

sustain, a ginning/trading company that

aims to set-up sustainable contract farming

systems with producers organized into

semi-informal groups (“primary societies”).

Support is provided in the form of seed

supplies, extension services, services for

certification of organic cotton and seed

cotton purchase contracts. Biosustain is

supported in providing these services to

the farmer/groups through strengthening

its own internal management, technical/

extension skills and its overall management,

targeting the longer term commercial

soundness of its operations. While overall

progress is reported as being reasonably

satisfactory (some 2,000 farmers have been

involved in crop management/training

programs), it has also shown that empha-

sis on a sound and focused commercial

approach, structured towards consistent

income generation (both at farmer as well

as at Biosustain level) remains the basis for

further development. Pure emphasis on

organic cotton may (at least for the time

being) not be the most profitable way for-

ward. This will be taken into due account in

the implementation of the 2013 work plan.

In Zambia, the project is working with CAZ,

the Cotton Association of Zambia. Activi-

ties started slightly delayed but took off

effectively early 2012. The activities focused

on strengthening the internal CAZ structure

and its technical capabilities to provide

high quality support to member farmers,

organized in so-called “study cycle” groups,

This should particularly imply higher

yields for the farmers (through improved

production practices and better/cheaper

inputs) and higher prices (partly through

stronger negotiation skills of the famer

representatives). The PEA reported that

CAZ succeeded in reaching 13,000 farm-

ers, strengthening their business practices,

leading to higher yields and incomes. This

is to be continued and documented further

in planned 2013 activities.


CFC/ICAC/44: Development of National Cotton Classing Systems in Kenya and Mozambique


Project Executing Agency Wakefield Inspection Services Ltd.


Common Fund for Commodities USD 1,160,000 (Grant) (incl. USD 580,000 from the OPEC Fund for International



The project assists both countries to set-

up effective classing structures which will

enable sellers of cotton (including cotton

producers selling seed cotton) to fully as-

sess the quality and thus commercial value

of their produce before offering this on

the national or international market. Based

on a visible government commitment, it

is expected that by the end of the project,

effective and operational instrument-based

cotton classing will cover 100% of each

country’s cotton crop, giving producers a

better insight in the international and na-

tional market value of their produce.

The project has been approved by CFC

in September 2011. Effective start-up in

the two project countries (Kenya and

Mozambique) was delayed to the second

quarter of 2012, after which the identifi-

cation, contracting and fielding of a key

expert/consultant proofed more prob-

lematic than envisaged. When fielded,

the consultant provided valuable analysis

of the existing infrastructure in the field

of cotton classing in both countries. This

resulted in an extended “to do“ list for the

national counterpart teams to bring the

facilities up to the expected standards.

This process is ongoing and on track. In

addition, an important study tour for key

counterpart staff to the USA was set-up

and undertaken, providing first hand

information and training on the operation

and management of 100% classing sys-

tems. Extensive consultations have taken

place to assess the 2012 developments

and to carefully plan to advance the 2013

activities while at the same time address-

ing outstanding 2012 activities.

Fish

CFC/FSCFT/16: Production and Marketing of Value-Added Fishery Products in Eastern and Southern Africa

Submitting ICB FAO Sub-Committee on Fish Trade (FSCFT)

Project Executing Agency Common Market for Eastern and Southern Africa (COMESA) in collaboration with

Lake Victoria Fishery Organization (LVFO)

Countries Directly Benefiting Kenya, Tanzania and Uganda





The key objectives of this project are

threefold. First, the project establishes the

parameters for improving economic benefits

and financial returns on processed Nile

perch, which is the main species exported by

the three participating countries with access

to the fishery resources of Lake Victoria.

This is achieved through the development

of sophisticated value-added products and

using appropriate processing technologies.

Market opportunities and trends in major

markets are researched while the investment

requirements for commercial production are

also assessed. Secondly, the project aims at

improving quality assurance mechanisms, the

processing environment and awareness of

standards commensurate with the new range

of value-added processed products. Thirdly,

the project establishes feasible mechanisms

for the provision of micro-finance to facilitate

the production and marketing of improved

products which contribute to local food

security and the availability of animal protein

for domestic use.

After several years of operation, the pro-

ject made some progress, particularly in-

cludes National Reports on the Status Nile

perch and Dagaa fishery of Lake Victoria

in Kenya, Tanzania and Uganda, Interna-

tional Markets Reports on Nile perch, and

Manual for the Production of Value-added

Nile perch fishery product. Dissemination

of value-added products were carried

out. The project will be closed after some

financial issues are settled with COMESA

and LVFO.

CFC/FSCFT/27: Technical assistance for the upgrading of the small-scale fisheries and their integration in the International Trade

Submitting ICB FAO Sub Committee on Fish Trade

Project Executing Agency The Intergovernmental Organisation for Marketing Information and Co-operation

Services for Fishery Products in the Arab Region (INFOSAMAK)

Countries Directly Benefiting Djibouti, Morocco and Yemen


Common Fund for Commodities USD 860,000 (Grant) (inc. USD 500,000 from the OPEC Fund for International

Development - OFID)



The project is designed to upgrade of small-

scale fisheries and fish processing industry

in the three benefiting countries namely

Djibouti, Morocco and Yemen. The overall

objectives of the project are a) Improving the

competitiveness of the small-scale fisheries

and increasing their contribution in the na-

tional economies of the benefiting countries;

b) Development of value-added (chilled/

fresh and frozen) seafood products using

vacuum packaging technology; c) Improving

the domestic fish market; d) Promoting inter-

regional fish trade; e) Facilitating access to

export markets which will boost investment

opportunities and reduce.

The project is coming to closure. One of the

participating cooperatives in Morocco- Merja

Zerga received the ecolabelling certification

from Friend of the Sea for hake and sole.

In December 2012 a regional seminar on

“Fisheries cooperatives: vector of sustainable

development” was held in Casablanca with

the participation of 60 people from the re-

gion. Themes discussed were issues relevant

to small-scale fisheries and the role of coop-

eratives in economic and social development

of the region: responsible fishing, sustain-

able development, upgrading of small-scale

fisheries, value-addition and integration of

small-scale fisheries products in national and

regional trade. In Yemen, A partner company

was established within the framework of the

project and the company now process and

export fishery products of local cooperatives

to many countries.


CFC/FSCFT/29: Promotion of Processing and Marketing of Freshwater Fish Products: Bangladesh, India, Indonesia, Pakistan and Sri Lanka


Project Executing Agency Centre for Marketing Information and Advisory Services for Fishery Products

in Asia and Pacific (INFOFISH)

Countries Directly Benefiting Bangladesh, India, Indonesia, Pakistan and Sri Lanka

Project Cost USD 1,498,331.00

Common Fund for Commodities USD 901,574.00 (Grant) (of which USD 450,000 from the OPEC Fund for International

Development - OFID)

Counterpart Contribution USD 596,757.00

The project is to provide support for both

export and domestic marketing of freshwater

fish and their products from the Asia-Pacific

Region in a sustainable manner; to provide

technical assistance to facilitate market

development through innovative packaging/

presentation, reducing post-harvest losses

and ensuring safety/ quality of freshwater

fish products marketed; to encourage small/

medium scale operators in production and

marketing of freshwater fish species in export

processing including domestic marketing and

encourage investment in the sector. The pro-

ject is making progress in beneficiary countries

except Pakistan. Series of training workshops

were held in countries and participating com-

panies were proactively working on value-

added fishery products development.

Grains/ Roots and Tubers

CFC/FIGG/46: Sorghum Value Chain Development, East Africa

Submitting ICB FAO Intergovernmental Sub-Group on Grains

Project Executing Agency European Development Co-operative (EUCORD)

Countries Directly Benefiting Tanzania, Uganda, Kenya


Common Fund for Commodities USD 5,000,000 (Grant) (of which USD 500,000 from the OPEC Fund for International

Development - OFID)



Main goal of the project is to improve the

level of food security and living standards

of sorghum farmers in Eastern Africa by

a quantitative and qualitative increase in

sorghum production and the simultaneous

provision of a sustainable market. Among

other activities, a Public Private Partnership

(PPP) will be initiated in order to substantially

enhance the sorghum supply chain from

primary producers to large scale agro-in-

dustrial processors. The strategic goal of the

private sector partner East African Breweries

Ltd. (EABL) is to substitute a considerable

amount of imported grains through locally

produced sorghum. As an outcome of the

project, sorghum farmers will be able to

improve productivity and increase their net

incomes through greater access to improved

inputs, processing technologies, and market-

ing options provided through commercial

agribusinesses and producer associations.

The project would build upon substantial

experiences gained within the CFC financed

project “West African Sorghum Supply Chain”

(FIGG/34) that has been awarded with the

2010 World Business & Development Award

issued jointly by the International Chamber of

Commerce, the United Nations Development

Programme (UNDP) and the International

Business Leaders Forum. On the basis of the

successful implementation of FIGG/34, the

proposed project seeks to make a decisive

step forward; that is by introducing new bev-

erage brands that are marketed on the basis

of their 100% content of locally sourced raw

materials. EABL’s intention is to launch such

a new exclusively sorghum based beverage

brand as soon as a reliable regional sorghum

supply chain is established.

The project is now in its second year of im-

plementation and overall progress is good.

Data available for Kenya and Uganda shows

that sorghum sales already lead to an ac-

cumulated increased income for participat-

ing farmers by more than 1.2 mln USD. While

the increase in volumes of white sorghum

being delivered from smallholder farm-

ers is already significant (close to 10, 000

MT), they do not fully meet the ambitious

milestones set by the private sector partner

EABL. However, there are clear indications

that smallholder farmers are beginning to

substitute maize by white sorghum, due to

its ease of cultivation, its drought resistance

and its palatability. Also due to anticipated

yield increases as the project continues, the

PEA remains confident that the end of pro-

ject targets will be reached and that many of

these targets, e.g. number of families being

reached, may even be surpassed. The col-

laboration and support of the private sector

partners is reportedly very good.


CFC/FIGG/31: Potato Value Chain Development in West Africa

Submitting ICB FAO Intergovernmental Group on Grains

Project Executing Agency European Co-operative for Rural Development (EUCORD)

Countries Directly Benefiting Guinea and Senegal


Common Fund for Commodities USD 794,476 (Grant) (of which USD 100,000 from the

OPEC Fund for International Development - OFID)



develop a competitive potato sector in West

Africa. Specific objectives are to improve

the efficiency of production, the volume of

locally produced potatoes, secure the sup-

ply of the commodity, and to improve the

income of persons and businesses along the

West African potato value chain. This will be

achieved by (a) increasing the productivity

and production of consumption potatoes,

(b) developing and strengthening local seed

potato production and seed production en-

terprises, (c) developing and strengthening

producers associations, and (d) increasing

national and regional market opportuni-

ties and (e) improving national and regional

policy co-ordination.

The project is in its last year of operation.

Seed potatoes produced in the highlands of

Guinea have the same quality as European

imports but come at a substantial price dis-

count and thus lead to an efficient regionally

integrated potato sector. Up to date more

than 40,000 tons of potaotes and close

to 6,000 tons of seed potatoes have been

produced with project assistance. Informal

export is also taking place now to Liberia,

Sierra Leone and Mali. Farmers are increas-

ingly adopting highly productive varieties

supplied by the private sector partner AG-

RICO which are being reproduced in Guinea

and apply better farming techniques. This

has led to an increase of yields by an aver-

age of 50% in Guinea and 25% in Senegal

(to 15 to 29 tons per ha) above a profitable

level for farmers Until now, the presence

of Ralstonia has been a factor limiting local

seed exchange between Guinea and Sen-

egal. However, the Plant Protection agencies

of both Senegal and Guinea refined all the

techniques of Ralstonia detection and made

them operational. At this stage it is highly

likely that the project goals and objectives

will be fully met.

CFC/FIGG/41: Enhanced Livelihood Opportunities of Smallholders in Asia: Linking Smallholder Sweet Sorghum Farmers with the Bio Ethanol Industry


Project Executing Agency ICRISAT

Countries Directly Benefiting China, India and Thailand




The project addresses an important issue:

enable smallholder farmers - including

those located away from major industrial

settlements - to participate in the market

of biofuel production. Sweet sorghum has

been identified as an effective feedstock

for bio-ethanol production. The project

will mobilise groups of smallholder sweet

sorghum farmers in order to improve crop

productivity and enhance production and

marketing of sweet sorghum to distiller-

ies. The project will also engage private

seed companies and input suppliers for

effective input delivery mechanisms. Apart

from direct delivery arrangements for

neighbouring villages, the project will link

marginal farmer groups with commercial

distilleries through introduction of decen-

tralised processing of sweet sorghum into

syrup. Overall the project will contribute

to increased incomes to farmers, without

compromising food and fodder security.

The project will encourage a collabora-

tive action to utilize the potential of sweet

sorghum to the advantage of a number of

countries in Asia, and other parts of the

world, bringing improvements in incomes

of the rural population. The participation of

the private sector ensures a demand driven

approach and practical results that could

have a considerable demonstration effect

for duplication.

After a successful first year of implementa-

tion in India and China, the Indian private

sector cooperating partner was forced to

close operations due to imposed unfavour-

able policies that prevented the processing

plant to operate on an economically viable

level. This is in contrast to China, where

the project has managed to link up with a

second private sector partner (ZTE) who is

purchasing sweet sorghum on a forward

contract basis from surrounding farm-

ers on a large scale with plans for further

expansion.

Quantitative indicators set for the project are

well on target.

ZTE currently cultivates sorghum on 1349 ha

of leased land and 1435 ha under a con-

tract farming agreement with neighbouring

smallholder farmers. Average recorded stalk

yield was between 61 tons and 75 tons /ha.

The project continues to assist farmers to

improve agronomic practises and achieve

higher yields (20% increase compared to last

year). While sweet sorghum is a new crop

in the project area there are ex ante yields

available for comparison. However, the now

achieved yields of stalks per ha recorded in

saline-alkaline soils of Inner Mongolia are one

of the highest in the world. While the ZTE dis-

tillery is not yet operating on full capacity, the

company has crushed 80,000 t of stalk and

produced 4000 t of ethanol in 2012. In ad-

dition the company sold 15,000 tons of ba-

gasse to the electricity industry at and 5000

tons of bagasse was used as fuel by ZTE.


CFC/FIGG/43: Small Scale Cassava Processing and Vertical Integration of the Cassava Subsector in Southern and Eastern Africa – Phase II


Project Executing Agency International institute of Tropical Agriculture (IITA)

Countries Directly Benefiting Madagascar, Tanzania and Zambia



Development - OFID)



enable the development and commerciali-

sation of good quality and competitive cas-

sava products in a manner that significantly

improves the economic welfare of the

stakeholders, particularly the small-scale

farmers and processors of the targeted

countries. Phase I of the project (imple-

mented between 2003 and 2007) success-

fully identified market opportunities for the

development and promotion of primary

cassava derivative products, especially High

Quality Cassava Flour (HQCF), as tradable

commodities in the region. In addition,

phase I identified novel cassava process-

ing technologies that are suitable for rural

conditions. The current phase II project

aims at providing the needed catalyst

to stimulate private sector investment,

including credit institutions, in the sector

by establishing profitable two-step HQCF

pilot supply chains in each of the three

project countries. The project will serve as

a model for investment in HQCF enter-

prises by local entrepreneurs and business

community across Eastern and South-

ern Africa. At the end of the project, it is

expected that the operations of established

pilot units will have reached the level of

self-sufficiency and economic sustainability

for all stakeholders along the cassava value

chain, including producers, processors and

consumers.

With technical assistance by the project,

several private investors have by now

invested in either commercial production

of cassava or processing facilities. However,

so far only in Tanzania a commercial bakery

is now seriously considering in installation

of equipment to process cassava flour that

is marketable for urban mass markets. This

bakery will also be the first licensee of a

project led, commercially designed, cassava

flour consumer brand for the High Quality

Cassava Flour retail end market. Initial target

are sales of 10 tons of HQCF per month. If

successful this will be the final step towards

a credible and sustainable establishment of

cassava as a locally produced competitor to

imported wheat flour.

CFC/FIGG/44: Increased Production of Root and Tuber Crops in the Caribbean through the Introduction of Improved Marketing and Production Technologies


Project Executing Agency Caribbean Agricultural Research and Development Institute (CARDI)

Countries Directly Benefiting Haiti, Jamaica, Trinidad & Tobago, St. Vincent and the Grenades, Dominica and Barbados



Co-financing USD 1,054,680 (EUAAACP)


The overall goal of the project is to support

the development of a commercially viable

and sustainable regional root and tuber crop

industry in the Caribbean Community (CARI-

COM) countries that facilitates the improve-

ment of livelihoods and overall food security

and sovereignty. The project purpose is to

develop Caribbean root and tuber com-

modity value chains in several pilot areas

that can serve as models for implementation

elsewhere in the region. The project seeks

to alleviate identified key constraints along

the value chain of each crop and explore

market opportunities. Interventions address

production issues as a means of satisfying

the market demands for quality and quantity

as well as consequential marketing short-

comings and new opportunities. The project

started in late 2010 and has been identified

as a priority of the EU-AAACP Commodities

Programme for the Caribbean.

Project operations have been success fully

completed. Main result is that functioning

network of plant multi plication and harden-

ing facilities has been established that will

enable Caribbean islands to multiply high

quality and disease free planting material

for various roots and tubers on a sustain-

able basis. In total 8 propagation facilities

and four hardening facilities have been

established. Two germplasm banks, two

tussie culture laboratories and one fully

equipped virus testing laboratory have been

made operational for cassava, sweet potato

and yam planting material propagation in

the Caribbean. At the same time punctual

interventions were made along identified

value chains for roots and tubers that show

promising results. In Haiti, implementation

on the ground are on-going up to Decem-

ber 2013, since activities only commenced

at the end of 2011 due to the difficult

circumstances resulting from the earth-

quake. Project activities are adapted

to the prevailing circumstances and focus

on maximum food supply (e.g. distribution

of improved planting material). In all project

countries yields are observed to increase

between 20 and 100% when using improved

(virus free) planting material.


Hard Fibres

CFC/FIGHF/13: Cleaner Integral Utilisation of Sisal Waste for Biogas and Biofertilizers

Submitting ICB FAO Intergovernmental Group on Hard Fibres

Project Executing Agency United Nations Industrial Development Organisation (UNIDO)

Country Directly Benefiting Tanzania




The project has established a pilot produc-

tion facility to demonstrate the feasibility

of producing biogas and energy from sisal

processing waste. The project also set out

to establish the appropriateness of using the

residues as a basis for solid and liquid ferti-

lizer production. In addition to addressing

the technical requirements of sisal-based

biogas and biofertilizer production, the

project should determine the overall viability

of the proposed process, thereby providing

a substantial contribution to increasing the

profitability of sisal production and process-

ing, and to reducing environmental degra-

dation caused by the disposal of currently

unutilised and untreated sisal waste, which

is around 95% of the sisal leaf. The project

succeeded in successfully establishing the

biogas production facility (in Tanga, Tanza-

nia) with a gas production that exceeds the

quantities that originally had been expected.

The gas production unit (including the con-

version into electricity) has been operating

intermittently for several years and currently

the final technical reporting in combination

with financial/economic feasibility studies is

being undertaken as a final responsibility of

the Project Executing Agency.

A mission was undertaken by an external

consultant contracted by UNIDO, but the

draft report was not considered acceptable

by CFC. Revision of the report has taken

more time than expected. CFC is, however,

following up with UNIDO to have the final

report published with an acceptable and

informative content, in such a way that the

report will be informative and useful for

interested parties. The study will be placed

on the CFC web site once it is received

from UNIDO.

Jute

CFC/IJSG/21: Development and Application of Potentially Important Jute Geo-textiles

Submitting ICB International Jute Study Group (IJSG)

Project Executing Agency National Jute Board (India)

Countries Directly Benefiting Bangladesh, India


Common Fund for Commodities USD 2,045,000 (Grant) (incl. USD 1,000,000 from the OPEC Fund for International


Counterpart contribution USD 1,917,826

The project investigates the commercial

acceptability of potentially important jute

geo-textiles suitable for use in two identi-

fied end-uses namely soil erosion control

and rural road construction in the context of

conditions prevalent in Bangladesh and India.

It is expected that results will lend themselves

to be extrapolated to conditions in other po-

tential market countries. The project includes

development of material specifications, field

application/installation protocols and design

methodologies for these applications in

compliance with requirements and standards

set by public and private sector users. Market

needs assessments and compliance studies

are included in the project. It is expected that

this project will lead to substantial expan-

sion of the market uptake of jute geo-textiles

for use in the fields of soil erosion control

and rural road construction in commer-

cially competitive markets (both domestic

or regional and international). The derived

increased demand for jute is expected to

be ultimately 265,000 tons (based on a 10%

market share of 5,300 mln m2 in 2013/14).

The five-year project has made an effective

start in 2010 with the establishment of the

two project management units in Bangla-

desh and India, under the overall leadership

of the National Jute Board (India). Core of

the project is establishment of extensive

field trial sites where pre-selected jute geo-

textiles are being utilized to establish mate-

rial performance. Two major subcontracts

focus on analysis supply chain and market-

ing aspects of JGT and on undertaking

corroborative laboratory trials duplicating

under controlled conditions major field trial

environments. In addition, national scientific

agencies are undertaking research and

analysis activities in support of the field trials

and the understanding of their outcomes. In

addition, two national high-level technical

committees of non-project experts, mainly

from national regulatory bodies, have been

set-up to provide authoritative advice on

core activities undertaken or planned to be

undertaken by the project.

While initially 16 trial sites were identified in

India, work has meanwhile been completed

in 12 locations with another 10 locations

with work in progress. In Bangladesh, 10

locations were identified. Work has been

completed in 5 locations, with another 4

with work in progress. Adding another 5

location is under consideration. For the sites

where work is completed the focus is now

on effectively monitoring the behavious of

the area throughout the remaining project

period. Monitoring methodologies have

been developed and staff has been trained

in their use.

The project has been subjected to an ex-

ternal expert evaluation in November 2012.

The evaluation team was generally satis-

fied with its findings, but has given useful

recommendations to be kept in mind in the

remaining project period. The project has an

operational website where progress can be

monitored (www.jutegeotech.com).


Meat and Dairy

CFC/IJSG/25: Increased Production Efficiency in Small-holder Kenaf Production Systems for Specific Industrial Applications

Submitting ICB International Jute Study Group (IJSG)

Project Executing Agency United Nations Industrial Development Organization (UNIDO), Vienna

Countries Directly Benefiting Bangladesh, China, Malaysia


Common Fund for Commodities USD 2,107,746 (Grant) (incl. USD 1,000,000 from the OPEC Fund for International


Counterpart contribution USD 1,096,431


demonstrate the competitiveness of the

kenaf sector and to prove that it can con-

tribute to increased incomes from kenaf

production and processing for the cur-

rent producers of the fibre. The project is

designed to strengthen the capacity of the

producers to meet the demands set by the

fibre users/industry, in terms of quality of

the material, at competitive cost and with

an assured, reliable system of (high volume)

supply. Tangible targets have been set for

the agricultural components as well as the

fibre extraction/processing components

of the project. The industry/factory trials

will provide detailed information on the

technical suitability of the material for the

identified applications. Whereas no success

can be ascertained beforehand, proper

documentation of the trials and their results

will provide insight in the perspectives for

successful industrial uptake.

The delays encountered during 2010, fol-

lowing the project start-up in 2009, have

resulted in less than envisaged progress

in 2011. To the delays in variety selection

and subsequent seed multiplication pro-

grammes, problematic arrangements related

to release and transfer of the targeted plant-

ing materials from Bangladesh and China to

Malaysia contributed to overall relatively low

levels of progress. Towards the end of 2011,

however, effective steps had been taken and

it was envisaged that during 2012 the project

would get back on track. Unfortunately,

progress has been less than planned and ex-

pected. The project was due for a mid-term

evaluation, but this is postponed as a result

of lack of substantive progress. The PEA has

committed itself to submit a documented

request for project extension, with a now

proposed completion date of mid 2014.

Planning of 2013 activities is based on this

extended duration.

CFC/FIGMDP/18: Improving the Productivity and Market Access of Smallholder Cattle Farmers in Mozambique and Zambia

Submitting ICB FAO Intergovernmental Group on Meat and Dairy Products

Project Executing Agency Golden Valley Agricultural Research Trust (GART), Zambia

Countries Directly Benefiting Mozambique and Zambia


Common Fund for Commodities USD 999,000 (Grant) (of which USD 500,000 from the OPEC Fund for International

Development)


The project is aimed at improving the vol-

ume and value of the marketable off-take

of live beef cattle through the enhanced

productivity and quality of livestock,

thereby increasing the incomes and liveli-

hoods of traditional small and medium

scale cattle farmers in the selected regions

of Mozambique and Zambia. A total

of 1500 cattle farmers, evenly spread

between the two implementing countries

are directly targeted by the project. The

project undertakes numerous training

courses on a broad range of topics linked

to livestock productivity and marketing.

Other activities include training of farmers,

lead-farmers and facilitators, especially on

areas of market access, improved feeds

and feeding and animal health services.

The combination of training and exten-

sion services will offer small & medium

scale farmers the opportunity to market

their cattle to the best advantage, thus

benefiting of increased incomes, as a result

of improved productivity of livestock and

improved access to the formal market for

their live cattle. The project was effectively

launched in August 2011 in Maputo, Dur-

ing the first year of project implementa-

tion, activities have been focusing mainly

on setting up the project structure and

personnel on field, acquiring the foreseen

equipment, gathering base line data on

the livestock sector in both implementing

countries, providing training for livestock

extension and animal health personnel on

cattle feeding and animal husbandry and

field demonstrations for cattle farmers,

producing technical extension materials

in the form of fact sheets and manuals on

herd management. A first steering com-

mittee meeting and field visit to the target

farmers in Mongu, Western Zambia has

been held in October 2012. The mission

highlighted significant progress in terms

of organization and management, training

of extension staff and updating of training

materials (posters & manuals), while some

delays have been registered on farmers’

training and on market access-related

activities which will be considered as a

priority in the first half of Year II.


CFC/FIGMDP/19: Smallholder Dairy Development in Bangladesh, Myanmar and Thailand: Improving the Bargaining Power and Sustainable Livelihood of Smallholder Dairy Farmers, through the Enhancement of Productivity and Market Access in Dairy


Project Executing Agency FAO Regional Office for Asia and the Pacific

Countries Directly Benefiting Bangladesh, Myanmar and Thailand


Common Fund for Commodities USD 1,999,778 (Grant) (of which USD 1 million from the OPEC Fund for International

Development - OFID)



The project is aimed at improving the

bargaining power and sustainable liveli-

hoods of smallholder milk producers in

Bangladesh, Myanmar and Thailand and

enhancing the production and market-

ing of quality milk and dairy products. The

project interventions focus on improving the

quality, productivity and market access of

smallholder dairy farmers in the 3 targeted

countries. Organization of activities along

the value chain including mechanisms for

milk collection, processing, pricing, market-

ing and payment to farmers will vary across

project locations to suit the local conditions.

The value derived from dairy production will

substantially improve. While the project tar-

gets specific country interventions based on

nationally identified priorities, it also includes

a regional element that aims at establishing

the Asian Dairy Network to share knowledge

and disseminate market information about

smallholder dairy across the region. 5000

smallholder milk producers organized in

Milk Producers’ Organisations (MPOs) in 6

selected pilot milk-shed areas are expected

to directly benefit from the project in terms

of improved market access and milk pro-

ductivity, reduced post-harvest losses and

improved quality and shelf-life of milk and

dairy products, leading to higher incomes

and food security through increased milk

consumption and sales. The availability

of more and safer milk is also expected

to benefit a further 6,000 children under

pilot school milk nutrition schemes. The

inception meeting was held in Bangkok and

Chiang Mai in February 2011. The project has

completed the 2nd year of implementation.

Activities are progressing in line with the

approved annual work plans.In 2012 project

activities have been focusing on enhancing

dairy extension services, feeding and fod-

der management and organizing the pilot

school milk nutrition schemes in Bangladesh

and Myanmar.. A Mid Term Review meeting

for the assessment of the progress of project

activities has been scheduled for the second

half of April 2013 in Chiang Mai, Thailand.

CFC/FIGMDP/20: Diversification of the Caribbean Livestock Sector through the Production of Small Ruminants


Project Executing Agency Caribbean Agricultural Research and Development Institute (CARDI),

Trinidad & Tobago

Directly Benefiting Countries Jamaica and Trinidad &Tobago





The project aims at improving the pro-

duction, productivity and quality of small

ruminant meat and the availability of breed-

ing stock in order to enhance the income

and food security of small scale mutton &

chevron farmers and meat processors in Ja-

maica and T&T, reducing, at the same time,

the dependency from food imports into the

targeted countries. The meat quality will be

improved by enhancing safety and quality of

livestock through the systematic training of

farmers in hygiene and sanitary standards,

improved animal husbandry and linkages

with service providers, private meat proces-

sors and traders. The increase in livestock

productivity will be accomplished as a result

of strengthening feed management and

veterinary services and implementing train-

ing activities on improved animal nutrition.

A medium scale abattoir will be refurbished

in each target country as a training tool for

best practices for meat processing storage

and packaging.

The project was effectively launched in 2011

in the presence of the Minister of Agricul-

ture and Fisheries of Jamaica. In T&T, 152

sheep (144 ewes and 8 rams) and 126 goats

(118 does and 8 bucks) were purchased

from USA and placed into the project

Livestock Station, while the purchase of the

remaining 10 (4%) animals (6 ewes, 2 rams

and 2 bucks) is expected be finalized in the

first quarter of 2013. In Jamaica, 75 ewes,

5 rams, 49 does and 3 bucks, for a total of

132 animals were purchased from USA and

placed into the project Livestock Station,

while the purchase of the remaining 112

(46%) animals (75 ewes, 5 rams,25 does

and, 7 bucks) is expected to be finalized in

first quarter of 2013. With respect to the

processing component, refurbishment

of the abattoir at the Livestock Station in Ja-

maica is being completed (80%). In Trinidad

& Tobago there has been some progress

in pasture development and construction

and refurbishment of animal housing and

barns. In Jamaica, maintenance works were

continued on existing pastures and animal

housing and construction of the Train-

ing Facility has been completed. Priorities

for the second year include the further

procurement of breeding stock and the

construction of animal housing.

Oilseeds/Oils/Fats


CFC/FIGOOF/26: Production of Oily Plants and Commercialisation of Natural Vegeta-ble Oils as Fuel in Replacement of Diesel for the Public Transport in Peru and Honduras

Submitting ICB FAO Intergovernmental Group on Oilseeds, Oils and Fats

Project Executing Agency German Service for Social and Technical Co-operation

(Deutscher Entwicklungsdienst), DED

Countries Directly Benefiting Peru and Honduras




Through a Public Private Partnership ap-

proach, the project meant to promote the

cultivation of alternative crops like Rape and

Jatropha Curcas by smallholder farmers,

which will be processed and subsequently

used as a substitute fuel by adapted private

commuter transport vehicles in selected

cities in Peru and Honduras. Progress in

2012 has been less than hoped for, although

valuable lessons were learned and use-

ful experiences were gained through-out

the year. Activities focused on agricultural

aspects (addressing optimal production

environments/requirements), processing

and the marketing and use of the oil. Results

pointed to the importance of proper cost/

yield assessment when determining land use

for Jatropha or rape seed production. Per-

spectives for oil production within existing

agricultural structures (e.g. small-scale vs

larger scale/commercial operators) should

be carefully assessed. Training programmes

for engine conversion/adaptation have been

held. The project will be completed by mid

2013 following an international dissemina-

tion meeting in February. Extensive project

documentation is under preparation.

CFC/FIGOOF/27: Development of Export-oriented Sesame Production & Processing in Burkina Faso and Mali


Project Executing Agency Royal Tropical Institute (KIT)

Countries Directly Benefiting Burkina Faso and Mali

Co-financiers OPEC Fund, KIT, NGO groups in both countries, Governments and the

Semafo Foundation (Canada)


Common Fund for Commodities USD 1,271,920 (Grant) (incl. USD 750,000 from the OPEC Fund for

International Development – OFID)

Common Fund for Commodities USD 473,025 (Loan)

Co-financing Grant USD 1,146,966

Co-financing Loan USD 473,025

Counterpart Contribution Grant USD 524,362

The project has the overall goal to increase

income and alleviate poverty of small-

holder sesame farmers in Burkina Faso and

Mali through improved production and

processing of sesame seed and improve-

ment of the position of small producers in

the value chain. The main purpose of the

project is the sustainable improvement

of the profitability of smallholder sesame

production leading to an average 50%

increase in income per hectare by the par-

ticipating farmers. The projects implements

improved farming practices, introduction

of new equipment, training of personnel

and increased exports. The position of the

producer in the value chain is expected to

be improved, and communication and co-

ordination between producers, public and

private actors in the sector are actively en-

couraged. A feasibility study for the setting

up of an industrial-scale processing facility

will be undertaken, and the management

of the supply chain will be initiated through

producer-private sector collaboration, fa-

cilitated by the project. Both the quality and

the quantity of sesame supply are expected

to improve to better answer the demands of

the processors and exporters.

Activities in 2012 have shown a huge

demand from farmers to participate in the

Farmer Field School (FFS) training opportuni-

ties. More than 8,000 effectively participated

up to end 2012, which is five times the num-

ber initially envisaged to be trained through-

out the full project. Provisional results show

yield increases of up to 75%. A manual for

sesame FFS has been published by the

project and is widely used in both countries.

Experiences gained in 2011 and 2012 are

further analyzed and being used in the 2013

program, aiming to lead to an additional

2,000 farmers trained. Collection centres

have been established in Burkina Faso (4)

and in Mali (14 established/improved) and

their effective utilization and operational

functioning will be assessed based upon two

operational years (2012 and 2013).

The results obtained in supporting local,

commercial sesame processing are less

outspoken, as the ultimate progress is

determined by commercial considerations

of local entrepreneurs. It became clear that

the project can only provide a supportive

role in reply to demands from the commer-

cial sector.

Focus for 2013 is on running the FFS for

another season and to document care-

fully the lessons, costs and benefits of

such system. In addition, the relevance and

longer term commercial sustainability of the

collection centres and their services will be

documented.

In spite of the sometimes difficult opera-

tional conditions due to political unrests in

both countries, project progress is consid-

ered to be satisfactory. It is expected that

tangible results will be reported by the end

of the project in December 2013.


CFC/FIGOOF/28: Improving the Income Generation Potential of the Oil Palm in Nigeria and Cameroon


Project Executing Agency United Nations Industrial Development Organization (UNIDO)

Countries Directly Benefiting Cameroon and Nigeria





The long-term objective of the project is to

promote the development of the sustain-

able production and utilisation of the oil

palm in West and Central African countries,

with a focus on markets as the driving

force behind such sectoral development.

The project will contribute to the reduc-

tion of poverty in rural areas where palm

oil is widely cultivated creating rural and

urban employment and value-addition to

ultimately improve the economy of the

target countries. The project strategy has

been developed utilising the value chain

approach with interventions formulated to

target critical areas along the value chain

from production of the raw material at the

farm level to processing at the enterprise

level and marketing. Emphasis has been laid

on value addition with focus on small scale

palm oil processing enterprises.In addition,

the project will be focusing its interven-

tions on three areas as follows: improving

the technological and skills inputs in palm

oil processing through technology transfer;

developing capacity for the sustainable

development and supply of fresh palm fruit

bunches; improving market access and

competitiveness for palm oil produced in

the region. The project activities have been

initiated in 2010.

Progress in 2012 has been less than ex-

pected, although in the later part of the year

the project has been catching up. Key prob-

lem was that the establishment of the pilot

processing units had been delayed, thereby

also leading to delays in training on opera-

tion and effective maintenance programs.

Likewise, introduction of new and improved

varieties and improved farm management/

agricultural practices have been delayed in

both project countries. Although in some

fields successful training activities have been

undertaken, they have not yet been docu-

mented for wider dissemination. Important

aspects like national/regional oil palm sector

planning and strategy development have not

yet been effectively addressed.

In view of 2013 being the last project year,

there is an increasing pressure on effec-

tively implementing all remaining scheduled

activities, in order to avoid last minute com-

plications with an ad-hoc project extension.

CFC/FIGOOF/30: Improving the Competitiveness of Small Scale Oil Palm Farmers and Production in Latin America and the Caribbean: Bridging the Yield Gap

Submitting ICB FAO Intergovernmental Group of Oilseeds, Oils, and Fats

Project Executing Agency Latin American and Caribbean Fund for Oil Palm Innovations (FLIPA)

Countries Directly Benefiting Colombia, Ecuador


Common Fund for Commodities USD1,840,794 (Grant) (incl. USD 678,755 from the OPEC Fund for International



Yield of oil palm varies significantly both

within and across production regions in

the project countries, with differences

estimated between 5 and 15 t/ha of fresh

fruit per hectare. Most of it can be bridged

through improved crop management

practices and appropriate programs for

technology transfer. The project goal is

therefore to prioritise the most promising

crop practices for high yields in oil palm

and design, implement and execute an

appropriate program of technology transfer

for small growers in order to (a) bridge

yield gaps; (b) enhance the Latin American

and Caribbean competitiveness in oil palm

production through improving current

on-farm yields; (c) increase and sustain the

profitability of investments of small growers

specially the low-income farmers who are

last in the bridge often the weakest link in

the value-chain. The project activities have

been initiated in 2010.

Both the Project Executing Agency and the

Supervisory Body report that project activi-

ties are being implemented as planned and

that the project is likely to be successful.

Since it became visible that lead farmers

achieve more than 30% in yield increases

when adopting newly introduced manage-

ment techniques, relevant national institu-

tions in the palm oil sector and commer-

cial extractors (as central links in the value

chain) take ownership of the project which

is important for future further “snowball”

dissemination. In Ecuador the number of

participating extractors has increased from

initially 2 to 22. These extractors employ

technicians for dissemination of technolo-

gy to increase raw material supply. Similar

achievements are to be noted in Colom-

bia. The project is now reaching the stage

where project staff-induced developments

are slowly reduced, placing more empha-

sis on project beneficiary/partner induced

expansion developments, supported by

trained staff from national organizations.

One constraint in that respect is the noted

departure of trained staff of national col-

laborating institutions and the PEA. It is

important to ensure a commitment of

both national partners to maintain staff

after the project has been closed in order

to ensure further dissemination of results.

This will be specifically addressed during

monitoring/supervision activities through-

out 2013.


CFC/FIGOOF/32: Integration of Small Scale Farmers into the Market Economy Through Soybean Value Chains in Malawi and Mozambique


Project Executing Agency International Institute of Tropical Agriculture (IITA), Nigeria

Countries Directly Benefiting Malawi and Mozambique


Common Fund for Commodities USD 1,756,830 (Grant) (incl. USD 800,000 from the OPEC Fund for International


Counterpart Contribution USD 1,033,732 Out of which: USD 704,655 (IITA), USD 243,817

(National Institutions) and USD 85,260 (Private Sector)

The project will promote the integration

of subsistence farmers into the market

economy by linking them to end user in-

dustries. Soybean production is expected to

increase and the project targets to establish

pilot demonstration plants for processing

of soybean into products of high nutritional

and industrial value, and the introduction

of processed products. These products are

to be marketed to the industry and to other

emerging markets for import substitution.

It is expected that increased demand for

soybean and its products, in two of the most

poor counties in Africa, would stimulate

demand for improved soy products, and

consequently, increase the competitiveness

of local production. The project launching

meeting was held in Nampula, Mozambique

in September 2011.

The project has made a fairly satisfactory

start-up into 2012, in particular in the activi-

ties focusing on training on, and introduc-

tion of, improved seed varieties and crop

management practices. First year experience

revealed that close oversight and monitor-

ing of field activities is required in order

to ensure reliable results from the efforts

undertaken, in particular with regard to the

important seed production activities. The

project involves a fair number of participat-

ing institutions and organziations, each

providing important inputs and institutional

contributions to the project. It was noted

that specific attention needs to be given

to effectively facilitate and coordinate the

respective needs for support and the diverse

capabilities of each entity to contribute to

substantive project activities. This will be an

important point for the Project Executing

Agency to address when implementing the

2013 work plan.

CFC/IOOC/06: Programme for the Development and Dissemination of Sustainable Irrigation Management in Olive Growing

Submitting ICB International Olive Council (IOC)

Project Executing Agency International Centre for Agricultural Research in the Dry Areas, (ICARDA), Aleppo, Syria

Countries Directly Benefitting Morocco and Syria

Project Cost USD 1,431 300.00

Common Fund for Commodities USD 799,460.00 (Grant) (of which USD 399,730 from the OPEC Fund for International

Development - OFID)

Counterpart Contribution USD 631,840.00 in kind

The main objective of this project is to

enhance crop yields of the smallholder olive

farmers in Morocco and Syria, through the

optimisation of water management prac-

tices applied to olive cultivation. Improved

and more stable olive yields will then turn

in to improved earnings and livelihood for

the small holder olive farmers targeted

by the project. The project demonstrates

sustainable irrigation technologies and water

management practices adding value to the

commodity in terms of the productivity of

olives and the quality of olive oil.

Four pilot demonstration fields have been

set up in both countries in significant olive-

growing areas of differing soil and climatic

conditions, where rainfed or traditional

irrigation methods now prevail. The project

transfers best practices and know how in the

four locations via systematic training ses-

sions and distribution of technical manuals.

A minimum of 400 farmers will be targeted

during field days. Extension officers will be

trained in rational irrigation management

practices in order to tutor the farmers in

the adoption and replication on field of the

proposed water management practices.

Project operations have started in May 2010.

While in Morocco project activities are been

implemented as per the approved work

plan, in Syria they have been delayed by the

political unrest which is affecting the country

since April 2011. The project conducted a

Mid Term Review in June 2012: in Morocco

the irrigations systems are installed and

functioning along with the weather sta-

tions (Component 1), enabling both data

analysis (Component 3) and farmers’ field

days (Component 4) to be implemented on

schedule. In Syria, the purchasing and install-

ing of the required irrigation equipment for

both field plots (Component 1) were finalized

together with most of the planned activities

for Component 2 (Irrigation and Field Man-

agement). The Syrian project team was able

to accomplish all the research objectives at

the project sites by planting, managing and

harvesting the olive crop on time during both

the completed implementing years. However

field research in Aleppo Province has been

interrupted since July 2012, but continues

in Dara’a Province at both - agricultural

research station and farmers field. Dissemi-

nation and extension activities (Component

4) are the most affected by the prolonged

unsafe conditions that prevail in the country.

Olive Oil


CFC/IOOC/08: Creation of a Pilot Demonstration Plants and Training to Improve Olive Oil Quality in Latin America

Submitting ICB International Olive Council (IOC)

Project Executing Agency BERCI INTERNATIONAL (with technical collaboration of IVALSA –

Istituto per la Valorizzazione del Legno e delle Specie Arboree)

Country Directly Benefitting Argentina

Project Cost USD 2,137,077.68

Common Fund for Commodities USD 1,653,950.00 (Grant)

Counterpart Contribution USD 483,127.68 (in kind)

The main objective of this project is to en-

hance the cost-effective and environmen-

tally sustainable production of high quality

olive oil in the region of Catamarca, Ar-

gentina and increase the revenues of small

holder olive farmers and boost the overall

economic development of the region. The

setting up of a modern & innovative olive

oil Pilot Processing Plant, together with the

implementation of training activities for the

dissemination of improved olive oil pro-

cessing techniques and the intensive man-

agement of olive orchards, will certainly

add value to olive oil as commodity.

Project activities are implemented within

a 48 months life cycle. Following the pro-

curement and setting up of the pilot olive

processing plant, three permanent staff,

two operators and the plant manager, has

been recruited and technical trainings have

been organized together with training for

olive farmers on the adoption of good

agricultural practices and good orchards

management. The modern olive oil pilot

processing plant set up by the project is

located in the industrial area of Catamarca,

known as the “pantanillo”, 7 Km from the

city center. With its processing capacity

of 2000 Kg/Hr provides s state-of-the-

art crushing, testing, storing and bottling

facilities for the production of high quality

olive oil to be promoted and sold under

the brand “Olivares del Valle” owned by the

project. The Logo was created, bottle labels

designed and promotional materials were

designed and printed (posters, brochures),

an ad-hoc web site (www.olivaresdelvalle.

com) have been developed.

During the 2012 crop season, an ex-

ceptionally limited harvest did not allow

engaging in a full production scale of

olive oil, which is postponed to crop

season 2013, but it enabled the produc-

tion of 5,900 Kg olive oil of which 350 Kg

were retained at the plant to be used for

the chemical tests and the marketing &

promotion campaign.Upon completion of

activities in the third quarter of 2013, the

CFC pilot project in Catamarca will be a

Center of excellence and knowhow and

dissemination for olive oil development

in Latin America.

Rubber (natural)

CFC/IRSG/17: Enhancing Incomes of Smallholder Rubber Farmers in West and Central Africa

Submitting ICB International Rubber Study Group (IRSG)

Project Executing Agency International Rubber Research and Development Board

Countries Directly Benefiting Cameroon, Côte d’Ivoire and Ghana





increase the incomes of rubber smallhold-

ers in Africa through a process of transfer of

technology. To achieve this broader objec-

tive the project aims at improving cultiva-

tion, harvesting and post harvest handling

of raw material; diversification of income

base through inter-cropping using the best

available technologies; and improvement

of the supply chain for natural rubber by

developing a network of certified nurseries

and introducing the appropriate standards

and treatment that would guarantee a better

income to the smallholders while meeting

the requirements of processors.

To date the project has completed a

series of exposure visits to several rubber

producing countries in Asia on a “Training

of Trainers” basis. Follow up in-country

workshops have been concluded and

there is evidence on farmers’ holdings of

adoption of technology and systems

observed in Asia. These exposure visits

included familiarization with new systems

and technology for rubber production

and have tangibly demonstrated that

African farmers are gradually adopting the

new techniques following their visit. Some

areas that they highlighted included the

system of nurseries for new planting

material, the cultivation practices, tapping

and collection systems and the farmer

organisations. Smallholder baseline

studies have been completed and work

has started on establishing primary and

secondary nurseries and distribution of

elite varieties.

The project has been extended to Febru-

ary 2014 on a budget neutral basis, to

complete all activities satisfactorily taking

into consideration the initial time delays

and the crop cycles.

Sugar


CFC/IRSG/21: Promoting Development of Economically Viable Rubber Smallholdings in West Africa

Submitting ICB International Rubber Study Group (IRSG)

Project Executing Agency International Centre for research Agroforestry (ICRAF)

Countries Directly Benefiting Nigeria




This is a demonstration project designed to

enhance economically viable rubber cultiva-

tion in smallholdings through:- planting of

good quality planting materials of high yield-

ing clones; reduction of immaturity period;

successful integration of high value arable

crops with rubber thus providing sustainable

income for the smallholder during the imma-

ture phase; and diversification of income base

and integrating high value agro-forestry tree

crops and medicinal plants in rubber based

farming systems during the mature phase.

The project was launched in August 2009.

Progress to date include initiation of work

to upgrade the central nursery for provision

of elite rubber planting material; identifica-

tion of farmers and initiation of work to

establish model farms on farmers’ holdings;

collection of germplasm and production of

planting material of domesticated high value

crops for inclusion in agroforestry systems.

Some key project outputs/achievements are

summarised as:

•Plantingmaterialshavebeendistributedto

participating farmers since the inception of

the project in 2009.

•Atotalnumberof93haofmodelfarms

have been established in Edo, Delta, Ogun,

Akwa Ibom and Kaduna states.

•Farminputssuchplantingmaterials,

agro-chemicals, bags of fertilizer, Bee

hives, Rabbit hutches and snail hutches

have been given to selected farmers in the

selected states.

•Prioritywillbegiventocomponent5

(Training and extension activities) of the

project in 2013.

•Soilsampleshavebeencollectedand

analyzed for the five states selected for the

project

•Fertilizerrecommendationhavebeenex-

plained to farmers using simple measure-

ment materials such as empty tins tomato

paste and milk

•Studiesoffertilizerrateforcompanion

crops is ongoing

•Fertilizermanagementinmatureplanta-

tion has commenced with studies on the

impact of rubber in soil environment

•Some20farmersweretrainedonpestand

disease control.

CFC/ISO/29: East African Sugar Development

Submitting ICB International Sugar Organization (ISO)

Project Executing Agency Sugar Board of Tanzania

Countries Directly Benefiting Kenya, Tanzania and Uganda




The Project aims to improve the productiv-

ity of cane production in the East African

Community (EAC) through a five-year

variety importation programme. The

project has selected, imported and tested

a statistically meaningful number of new

cane varieties from cane industries that

share similar cane growing conditions to

those in the EAC. It is being supported by a

clean seedcane initiative, aimed at growing

and distributing treated seedcane (and new

varieties as they are commercialised) to

the smallholder cane growers (outgrow-

ers) in the region. An important objective is

the acquisition and transfer of technology

and international best practice to the EAC

cane research staff and from there to the

mill personnel (agricultural and outgrower

managers and agronomists) and the out-

grower community.

Outputs to date include the establishment

of: the East African Cane Improvement

Network; establishment of regional quar-

antine protocols between the participating

countries; ongoing importation of im-

proved varieties; development of a training

manual and training programme for exten-

sion and outgrowers’ officers. The project is

scheduled to close during the second half

of 2013 following a budget neutral exten-

sion of one year.

CFC/ISO/32: Development of Sugarcane Variety Improvement and Seed Multiplication Programme for Nigeria and Cote d’Ivoire

Submitting ICB International Sugar Organization (ISO)

Project Executing Agency National Sugar Development Council of Nigeria

Countries Directly Benefiting Nigeria and Côte d’Ivoire




The overall objective of the project is to en-

hance incomes and livelihoods in the sugar

sector through the establishment of a sugar

cane variety improvement programme.

The programme involves the importation,

evaluation and selection of adaptable high

yielding cane varieties to replace the pool

of poorly performing varieties currently in

use in both Nigeria and Cote d’Ivoire. This

initiative will contribute to a reliable supply

of improved sugarcane raw materials to

existing and new sugar projects which >>


will in turn generate rural employment

and generally enhance the socioeconomic

circumstances in the cane growing com-

munities of the participating countries.

The project will focus on the provision of

improved varieties of sugarcane for farmers.

This will ensure the realization of more cane

and sugar tonnage per hectare which will

in turn lead to enhanced incomes for the

farmers. The versatility of the crop makes it

very useful for the production of not only

sugar but also ethanol and electricity gen-

eration which are added advantages of the

adoption of this commodity approach. The

problem of poorly performing sugarcane

varieties affects the whole of the West Africa

sub-region. Each country has attempted to

solve this problem individually. The project

will facilitate regional collaboration in

addressing this problem.

Some noted project achievements to

date are:

1 Capacity Development/Skills Acquisi-tion -21 Trainees drawn from all 3 CIs

and PEA were trained in two batches at

Mauritius Sugar Industry Research Insti-

tute (MSIRI), Reduit between 21st October

and 7th December 2010. The training

covered disciplines such as Breeding,

Agronomy, Extension, Laboratory Tech-

nology and Field Techniques. A sensitiza-

tion workshop was also convened for

project laerers and accountants at

each collaborating institution.

2 Identification and Acquisition of Improved Cane Varieties - 20 newly

imported sugarcane varieties from Bar-

bados, India and Sudan have been

acquired by the PEA. Importation of the

remaining 20 from Brazil and Mauritius

respectively are still being processed.

3 Acquisition/Establishment of Grand-mother Nursery - Twenty (20) cane

varieties (10 from Barbados, 5 each from

Sudan and India) have been acquired.

The materials were planted at the

PEA pre- nursery at Kadawa Irrigation

Scheme, Kano.

Tea

CFC/FIGT 04: Development, Production and Trade of Organic Tea

Submitting ICB FAO Intergovernmental Group on Tea

Project Executing Agency The International Federation of Organic Agriculture Movements (IFOAM)

Countries Directly Benefiting China and India



Common Fund Loan USD 1,739,714


The project aims at developing the tech-

nology, skills and systems of organic tea

production. This includes the development

of appropriate technology for the establish-

ment of new, and the conversion of existing,

tea areas to organic tea farms. The project

also aims at the development of accept-

able international standards for the export

of organic tea and the establishment of

an internationally accepted certification

mechanism in both countries. The project

includes an assessment of the demand for

organic tea exports and the development of

appropriate export strategies. The project

activities in China have been completed and

the following results were obtained:

1 Production: • ProjectSitesweresuccessfullyidentified

and Model Farms were established.

• ResearchandDevelopmentwascompleted

and technology and skills necessary to

produce organic tea were developed suc-

cessfully converting conventional farm to

organic farms and developing composting

methods of organic matter.

• Goodagriculturalpracticesweredeveloped

and brought into practice including soil,

pest and disease management; organic

fertilizers; weed control; biological control

of pests and diseases; and development of

processing technology and packaging ma-

terials and methods for processing organic

tea products.

• Disseminationoftechnologythrough

manuals, newsletters etc. and development

of skills for farmers and processors, through

training which included: regularly sched-

uled organic farming workshops; on-farm

technical services; training of trainers in or-

ganic farming methods; and development

and/or strengthening of national counter-

part organic farming extension services.

2 Organic tea certification standards developed

3 Market Analysis and Strategy including:• Assessmentofselectedinternational

organic tea markets: Japan, EU and

United States.

• Demandanalysisofinternationalorganic

tea markets, including pricing policies and

international trade considerations, was

only partially addressed, as was the devel-

opment of a global promotional strategy.

The strong demand at the domestic level

has underpinned the success of the pro-

ject and at a later stage the development

of a global strategy will be required.

China has fully reimbursed the loan while

India is complying with the reimbursement

schedule. The Indian project’ segment

started in September 2008. Activities in India

started later and all the set targets have been

met including experiments; domestic market

development and a final evaluation will be

undertaken in 2014.

CFC/FIGT/05: Capacity Building and Re-Juvenation of Tea Smallholdings in Indonesia and Bangladesh

Submitting ICB FAO Intergovernmental Group on Tea

Project Executing Agency Indonesian Tea Board

Countries Directly Benefiting Indonesia and Bangladesh



Co-financing USD 151,600 >>


The aim of the project is to strengthen

the knowledge-base of tea small-holders

and rejuvenate smallholdings in Indonesia

and Bangladesh for enhanced productiv-

ity and quality improvement by producing

high quality leaf that is free of extraneous

chemical residues. The project also aims to

strengthen the bargaining position of the low

income small holder tea farmers in the value

chain for higher remuneration and will there-

fore have consequent impact on alleviation

of poverty and unemployment, bringing

about a social upliftment in the life style of

the poor farmers in the two countries.

The project has become fully opera-

tional in Indonesia since early 2010 but in

Bangladesh the activities have not started.

The baseline study in both countries was

completed and series of trainings were

conducted. Self Help Groups (SHGs) were

organized and fertilizer for participating

farmers was distributed.

In Indonesia, soil conservation measures,

environmentally friendly and integrated

good agricultural practices are intensively

practiced. SHG unions are introduced

in each region. All the SHG unions have

established partnership linkages with green

tea processing factories. Revolving fund

has been established in all 3 project regions

and some funds have been collected by the

SHG unions. Trainings, workshops and on-

farm advisory visits have been extensively

conducted. Up to now 47 trainings and

workshops with 1485 participants in project

areas have been carried out on all aspects

of tea cultivation. About 40 mobile and 20

fixed leaf collection centers and 3 transport

vehicles have been set up.

Tropical Fruits

CFC/FIGTF/24FA: Production of Certified Fruits and Vegetables in the Greater Mekong Sub-Region

Submitting ICB FAO Intergovernmental Group on Tropical Fruits and Vegetables

Project Executing Agency FAO, Regional Office in Thailand

Countries Directly Benefiting Laos, Myanmar, Thailand and China Indonesia and Bangladesh


Common Fund for Commodities USD 1,664,866 (Grant) (First Account)


Parallel Financing USD 709,620

The project objective is to upgrade produc-

tion, handling and transport technologies

to improve product safety and enhanced

quality as well as output volume. The project

will also aim to help farmers organise them-

selves into effective producer-marketing

group and clusters; and integrate the

supply chain participants with the purpose

of extending distribution ranges, improve

feedback on market requirements, reduce

product wastage, consolidate income levels

among producers and share inherent risks.

The project is mainly operating in two LDC

countries (Laos and Myanmar).

Over the course of 2012, the project con-

tinued to introduce new ideas and business

processes to ensure the ongoing success of

Myanmar’s mango producers. In collabo-

ration with the government of Myanmar,

the project helped establish a new packing

house in Mandalay. Land and construction

costs were covered by the government,

while the project financed the majority of

the equipment. Facilities included a machine

for grading fruit by weight, a tank for hot

water treatments (to kill fruit fly eggs), a tank

for cooling and fungicide treatment, a pack-

ing line and a cold storage unit. The facility

and treatments will enable the fruits to be

certified (similar to ASEAN GAP), furthering

the potential for facilitating sales in China,

Thailand, Malaysia and Singapore.

CFC/FIGTF/25: Pilot Project on Production of Fruit and Vegetable Chips Using Vacuum Oil-bath Dehydration Technology

Submitting ICB FAO Subgroup on Tropical Fruits of the Intergovernmental Group on Bananas

and Tropical Fruits

Project Executing Agency All China Federation of Marketing and Supply Cooperatives (ACFMSC)

Countries Directly Benefiting China with dissemination to African countries




The project introduces an innovative ap-

proach by integrating capacity building,

market developments and an institutional

set-up to adopt the Vacuum Oil-bath De-

hydration Technology (VODT) to transform

fresh fruits and vegetables into chips for

the urban convenience food markets. This

technique will reduce rural poverty and en-

sure farmers’ fair and sustainable economic

benefit, which can be disseminated to other

developing countries. The facility established

under the project in China will become a

technological training center, new product

development center and integrated VODT

adoption dissemination center.

The project became fully operational

in 2010. The construction of process-

ing plant in Anhui Province has been

completed and the processing equip-

ment has been procured and installed.

Cooperatives were organized and two

trainings were provided. The PEA started

the marketing strategy and activities. The

knowledge centre has been established.

The PEA has launched some initiative

marketing activities.


Tropical Timber

CFC/ITTO/80: Marketing Eucalyptus Citriodora Essential Oil

Submitting ICB International Tropical Timber Organisation (ITTO)

Project Executing Agency Service National De Reboisement (Snr) – National Reforestation Service

Countries Directly Benefiting Congo and Democratic Republic of Congo




Essential oils are a high value-added by-

product of eucalyptus. The project goal is

to put this resource to use for poverty al-

leviation in rural areas. This will be achieved

by reaching out to forest communities and

disseminating techniques to extract essential

oils from planted Eucalyptus citriodora.

Specifically, the project provides village

community members with the technologies

and expertise to extract essential oils and

implements measures to create a marketing

chain for essential oils.

Members of rural communities in Congo and

Democratic Republic of Congo are trained on

the techniques of essential oil extraction and

marketing, as well as planting and mainte-

nance of Eucalyptus citriodora species. With

SNR acting as a facilitator, the pilot project

aims to develop models which could be fol-

lowed by village communities in developing

the extraction and marketing of essential oils.

The project activities started in 2010. By

the end of 2012, the following has been

achieved:

•ThesurfaceofplantationsofEucalyp-

tus citriodora by the project partners in

Congo and DRC stand at 63 ha, which

represent 63% of the surface envisaged

in the project document. It is important

to notice that the rainy season started in

October, therefore the local partners will

have in a few months a good supply of

biomass for the production of essential

oils. A map identifying with GPS coor-

dinates the location of these sites has

been already submitted to CFC.

•Inordertoassuremoreestablishment

of future plantations and supply of raw

material for essential oils, the PEA a

national forestation and reforestation

programme, called PRONAR.

•Trainingintheextractionofessential

oils by local actors has been carried out

in the localities of Loudima, d’Odzibe

and Gamboma. The PEA is expecting to

extend training in 4 additional localities.

The quality of essential oils extracted so

far is good enough for non-food uses.

Reports of the training have already been

submitted to CFC.

•Basedontheworkcarriedoutbythe

International Consultant, the PEA

recently requested the no-objection

for the acquisition of 5 semi-industrial

extractors with a production capacity

of 1,000 liters each.

The project term has been extended to

2013 to allow the completion of a market

study and the identification of a suitable

laboratory for the analysis of the products

to ensure consistent quality and market-

ability of essential oils produced by forest

communities.

CFC/ITTO/81: Promoting Timber Processing in Congo Basin

Submitting ICB International Tropical Timber Organisation (ITTO)

Project Executing Agency Economic Community of Central African States (ECCAS)

Countries Directly Benefiting Cameroon, Gabon and Central African Republic (LDC) with dissemination to the

Democratic Republic of Congo (LDC) and the Republic of Congo


Common Fund for Commodities USD 1,253,345 (Grant) (of which a contribution of USD 600,000.00 from the

OPEC Fund for International Development)


The specific project objective is the

implementation of a support system for

the promotion of further timber process-

ing for stakeholders in member countries

of the Cenral African Forests Commission

(COMIFAC) and ITTO member countries

(Cameroon, Gabon and the Central African

Republic) and piloting and dissemination of

the approach in the Democratic Republic of

the Congo and Congo.

The project intends to directly assist

the artisans, SMIs/SMEs whose methods of

operations are intermediary between those

of artisans and the industrialists involved in

the value-added processing of timber in the

form of sawn wood and veneer. The project

furthermore indirectly benefits trade part-

ners of the crafts, SMIs/SMEs, and industrial-

ists (suppliers of consumables, glue, varnish

material); forest managers; member states;

decision-makers who will have relevant

indicators made available to them for guid-

ing the development of the industrial and

craft segments of the sector; and consum-

ers within each country and the region as

a whole who will have a broader range of

products derived from locally-processed

timber offered to them, and international

consumers who will have access to new

products manufactured from African timber.

In terms of employment generation in rural

and urban areas, if the countries are bench-

marking with Western Africa, additional

37,000 jobs can be created.

At the end of the project, the sector of

further timber processing will be identified

(number of processing plants, operational

procedures, stakeholders needs); its eco-

nomic weight will be assessed and from

the identification the various stakehold-

ers needs, its potential for growth will be

known, the missions of the supporting

structures will be refined, and the support-

ive structures will be operational. The in-

tended mission of the supportive structure

is to enable a favourable environment for

the further processing of timber by acting

as a coordination entity among the relevant

stakeholders (private and public sectors,

financial sector, academy and training

institutions, forest owners, regional and

international community, etc.).

The project started operations in 2011 and

is expected to complete by 2015.


Vegetables

CFC/FIGTF/26: Increased Production of Vegetables and Herbs through the use of Protected Agriculture in the Caribbean

Submitting ICB FAO Intergovernmental Group on Tropical Fruits

Project Executing Agency Caribbean Agricultural Research and Development Institute (CARDI)

Countries Directly Benefiting Haiti, Jamaica and Trinidad & Tobago



Co-financing USD 634,830 (EU/AAACP)


The goal of the project is to strengthen

the competitiveness of vegetable farmers

in the Caribbean engaged in the produc-

tion and later the export of fresh vegetables

and herbs through the use PA. The central

objective of the project is to pilot and

expand the use of protected agriculture

PA systems through capacity building and

infrastructure enhancement. Through the

strategy of adapting and transferring PA

technologies to vegetable farmers and other

stakeholders in Haiti, Jamaica, and Trinidad

and Tobago, the project will develop and

intensify food production and security

on the limited land available. This should

increase the regularity of supplies and at the

same time enhance the capacity to manage

the quality and regulatory (both public and

private) requirements of the markets, which

are becoming more stringent, particularly

with regard to Sanitary and Phytosanitary

(SPS) requirements, including traceability. A

complementary goal is to develop improved

production and marketing tools, including

more integrated PA production and market-

ing information systems and database,

accessible to all stakeholders. The project

started in late 2010 and has been identified

as a priority of the EU-AAACP commodities

programme for the Caribbean.

Project activities have been successfully

completed, All demonstration infrastructure

(greenhouses) have been constructed and

are operational (i.e. 8 greenhouses have

been newly contructed and another 6 were

fully refurbished). Four greenhouses have

been equipped to serve as training cernters

for complex greenhouse management. Up

to now some 800 farmers have received

such training which focusses on issues

like crop establishment, crop care, growth

media and plant nutrition, as well as post-

harvest operations, marketing and business

management.

The project has initiated direct market link-

ages with hotels/resorts fast food chains

etc, which are willing to pay premium

prices for fresh local vegetables in order

to demonstrate the economic viability

of investment into greenhouses. In Haiti,

implementation on the ground only com-

menced at the end of 2011 due to the

difficult circumstances resulting from the

earthquake. Project activities will continue

up to December 2013.


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VII Regular Projects Completed in 2012 | 75

VII Regular Projects Completed in 2012

Cocoa

CFC/ICCO/26: Cocoa Productivity and Quality Improvement: A Participatory Approach


Project Executing Agency International Plant Genetic Resources Institute (IPGRI) (Bioversity)

Countries Directly Benefiting Four African, Five Latin American and Two Asian countries





The project aims to improve the welfare of

the large number of smallholders growing

cocoa through sustainable higher produc-

tivity of good quality cocoa at lower pro-

duction cost. This global project contrib-

utes to this objective through the selection,

distribution and use of new cocoa varieties

with improved yield capacity, resistance

and quality traits. Use of improved cocoa

plant materials will make cocoa cultivation

more competitive. It should also facilitate

diversification of cocoa-based farming sys-

tems by reducing the land, labour and cash

requirements for cocoa cultivation. The

project specific objectives are: (a) to dis-

seminate and validate promising cocoa va-

rieties in farmers’ fields through participa-

tory approaches, involving farmers directly

in evaluation and selection processes; (b)

to increase sustainability in cocoa improve-

ment programmes through validation and

dissemination of select cocoa varieties

between partners, enhanced regional

and international collaborative research

and development activities, and capacity

development; (c) to exchange information

and disseminate results between pro-

ject partners and other cocoa producing

countries not directly participating in the

project; and (d) to establish and maintain

functional linkages between national cocoa

breeding programmes, international cocoa

gene-banks and quarantine centres and

international cocoa research and develop-

ment efforts. At present all activities have

been completed. Promising cocoa varieties

have been validated, R&D collaboration

enhanced, information generated and

exchanged, and networks established.

At all project sites, numerous clone and

hybrid varieties have been selected for

further use in breeding. Major project

achievements are:

•Reinforcementofexistingcocoabreed-

ing programmes in 11 countries.

•Selectionanddistributionofimproved

cocoa varieties with higher yield capac-

ity, resistance to pests and pathogens to

be used in further breeding.

•Aselectionof55newcandidatevarie-

ties for distribution to farmers in Brazil,

Ecuador, Nigeria, Papua New Guinea and

Trinidad and Tobago.

•Atotalof1500promisingtreesidenti-

fied by using a farmers’ participatory

approach.

•Morethan100selectedgenotypeswere

quarantined and distributed to user

countries.

Establishment of two Regional Variety Trials

in six countries in the Americas and in four

countries in Africa, aiming at sharing of

varieties with disease resistance:

•Initiationofdistributionofgermplasm

selected in the project through quarantine

at the Reading University to user countries,

especially African countries.

•Unprecedentedcooperationwasachieved

among research institutions in the cocoa

producing countries, regional and interna-

tional institutions, and the private sector.

•Humancapacitybuildingwasachieved

through the organization of four regional

workshops and exchange of results (publi-

cations, project reports).

The final publication is available on the CFC

website as Technical Paper 59.

Coffee

CFC/ICO/30: Access to Finance for the Development of Diversification Crops in Coffee Producing Areas (Burundi and Cote d’Ivoire)


Project Executing Agency Fonds de Garantie des Cooperatives Café – Cacao (FGCCC) – Côte d’Ivoire

Countries Directly Benefiting Burundi and Côte d’Ivoire





The project is designed to demonstrate, on a

pilot project basis, how crop diversification,

if implemented with proper means and cau-

tion, brings profit both to the smallholder

producers and to the financial institutions

which underwrite their funding. Through this

process food security will also be promoted,

as essential staple crops such as rice, cas-

sava, yam and plantain which can substitute

imports, can be selected under the diver-

sification process. The project is seeking

to set up a credit scheme that enables

targeted farmers to diversify their income

base through the development of additional

crops or livestock activities thereby reducing

their dependence on coffee production.

It also assists in enhancing the willing-

ness and capacity of existing institutions’

to provide micro finance to farmers for

crop diversification. In both countries, the

project strengthened the agricultural credit

system and expanded the credit schemes to

integrate the credit activities relating to di-

versification of crops. The project builded up

a more sustainable scheme with a direct link

between farmers and financial institutions.

Strengthening the capabilities of coffee-

growers’ co-operatives, providing them with

improved access to credit and encouraging

diversification in their agricultural activities

helps in reducing the impact of the coffee

crisis on the economies of coffee-exporting

developing countries and their rural popula-

tions. The project implementation period

was been extended to make up for lost time

due to some civil unrest in the participat-

ing countries with all activities successfully

concluded by the end of 2012.

There was remarkable enthusiasm among

project participants for the diversification

activities introduced by the project which

included production, and marketing in

combination with coffee, of crops such

onions, tomatoes, cabbage, rice, cassava,

potatoes and the rearing of small live-

stock. Despite some deficiencies noticed

in the supply of certain inputs, particularly

seeds and pesticides, improved yields were

observed for most crops. Under the project

all selected farmers benefited from access

to warehouses and other equipment to fa-

cilitate their post harvest activities including

storage, processing and transport. Overall

the project was successful in contributing

to food security as well as improvement in

farmers’ income. The project was equally

successful in training and sensitizing farmers

in the use of credit for their diversification

activities. In both countries loan recovery

rates in excess of 70% were observed. It was

noted that prior to implementation of the

project, many producers, particularly in Cote

d’Ivoire, did not belong to cooperatives. For

those who were members their coopera-

tives were located at some distance in the

main city of the zone. The project provided

an opportunity for farmers to have closer

contact with their cooperatives allowing

them to organize group purchases and sales

as well as undertaking activities relating to

processing and commercialization. These

cooperatives have the potential to create

important business centres for multiplication

of economic activities. in the rural areas.

CFC/ICO/31: Reconversion of Small Coffee Farms into Self-Sustainable Agricultural Family Units in Ecuador


Project Executing Agency Consejo Cafetalero Nacional (COFENAC)

Country Directly Benefiting Ecuador





The project seeks to strengthen the manage-

ment capacity of producer organisations and

related agencies involved in the project areas

in Ecuador. The project reconverts coffee

farms into self-sustaining agricultural units

through diversification of their agricul-

tural production systems. The project also

promotes processing of primary commodi-

ties and the development of co-operative

marketing channels for the local market.

Given the declining income of small farmers

exclusively producing coffee, it is proposed

to diversify the income sources of farmers

through redesigning the farms into diversified

product farms. The project objectives are (a)

to strengthen the management capacity of

producer organization and bodies involved

in the project areas; (b) to reconvert 1,200

coffee farms into self-sustainable agricultural

units through diversification of their agricul-

tural production systems; (c) to promote pro-

cessing of primary production and the devel-

opment of co-operative marketing channels

for the local sale of the surplus agricultural

production. The project has been successful

in terms of diversification of the coffee based

rural economy of Ecuador. Some specific

projects results are summarised below:

Organizational strengthening - The direct

participation of 1,244 small coffee family units

(including 101 female heads of households),

organized into 31 producer organizations

Diversification of agricultural production on farms - The main diversification activities

carried out for the reconversion of coffee

farms were:

• Trainingforcoffeeproducersontechnical

aspects of agricultural and livestock produc-

tion through on-farm demonstration.

• Diversificationinitiativesalsoincluded

replacement of 2,122 hectares of old or

damaged coffee trees affected by El Niño

with new improved varieties.

• Qualityimprovementofcoffeeforexport

included the establishment of coffee pro-

cessing units in various locations.

• Developmentoffamilyfarmsandagricultur-

al production has improved food availability

for the 1,200 participating family units.

• Promotionofhusbandryproductionto

increase, at family level, the availability of

protein sources for the diet and additional

sources of income from the sale of sur-

pluses.

• Reforestationforenvironmentalmainte-

nance and commercial purposes.

Agro-industrial development and co-operative marketing - The project promoted

processing of primary products and joint

marketing as a strategic means of improving

the use of agricultural and livestock surpluses

while adding value to primary production.

The project activities ended during July 2011

and the project was officially closed during

August 2012. Results of the project have been

disseminated to other countries in the region

through workshops and more extensively

through various publications and reports.


CFC/ICO/39: Enhancing the Potential of Gourmet Coffee Production in Central American Countries


Project Executing Agency Istituto Agronomico per l’Oltremare (IAO), Italian Ministry of Foreign Affairs (MAE)

Florence, Italy

Countries Directly Benefiting Honduras and Nicaragua




The main objective of the initiative is to im-

prove the standard of living of small coffee

producers in rural mountain communities

by increasing their income through efficient

production and marketing of gourmet cof-

fee. The project seeks to organise and train

farmers in the production of gourmet coffee

and assist them to export their coffee direct-

ly. The specific objectives of the project are:

to select potential gourmet coffee produc-

ing areas; to reorganise the coffee produc-

tion chain with special attention to cultiva-

tion and harvesting; to identify and transfer

new techniques for coffee processing and

quality control; to set up a new production

system and promote quality coffee.

The project was successful in the partici-

pating countries of Guatemala, Honduras

and Nicaragua to implement strategies to

develop sustainable gourmet quality cof-

fee with accompanying tourism strategies.

Some noted project outputs were:

•Atotalof12smallcoffeeproducers’

organizations benefited reaching a total of

1159 members (24% women) in 3 Central

American countries.

•Three(3)ecologicalwetmillsweresetup

in 2 participating countries.

•Atotalof78solardryingunitswerebuilt

on the premises of 11 organisations of

small coffee producers in 3 Central Ameri-

can countries. The introduction of solar

dryers has greatly improved bean quality

by avoiding heterogenous drying in an

environmentally friendly manner.

•Atotalof33mushroomproductionunits

were constructed and are currently oper-

ating in all of the participating countries.

Mushroom production was successful in

introducing the communities to nutrient

rich, high protein oyster mushrooms. The

research showed that the production of

mushroom could be increased by using

coffee pulp as a substrate.

•Theprojectdemonstratedthatthequal-

ity of small producers’ coffee can be

improved be significantly by applying the

appropriate techniques and facilities but

the biggest obstacle is financial.

Overall there was increased income as a

result of better coffee quality. Also new jobs

were created as a result of the introduction

of new coffee processing techniques and

alternative income ideas.

CFC/ICO/49FA: Economic Crises and Commodity Dependent LDCs: Mapping the Exposure to Market Volatility and Building Resilience to Future Crises


Project Executing Agency United Nations Conference on Trade and Development (UNCTAD)

Countries Directly Benefiting project implementation locations in Tanzania, Zambia, Benin, Burundi, Nepal and Lao PDR



Counterpart Contribution USD 50,000 (UN OHRLLS), USD 53,000 (UNCTAD trust fund TXB/2136/X77J/2411)

The fallout from the financial crisis in the in-

dustrialized world has brought to the fore the

issue of exposure of commodity dependent

LDCs to the volatility of the global markets, the

transmission of crisis effects and its long-term

adverse consequences on development.

Before the global economic and financial

crisis, the LDCs exhibited impressive

economic performance with real GDP

growth averaging 6 per cent per annum for

the last 5 consecutive years. The crisis has

brought this to an end, with several

countries recording negative per capita

income growth for the first time in over a

decade. This demonstrated that growth

achieved so far was highly dependent on

boom in commodity prices, increased

external finance and continued expansion of

demand for primary commodities. The

central development challenge facing

commodity dependent LDCs is to use

incomes generated in commodity sector to

create additional jobs and livelihoods for a

rapidly growing labour force.

The experience of the last decade and

current global crisis indicate that in practice

LDCs need to develop their resilience as a

pre-requisite to effective re-investment of

their commodity incomes. The project

examined the experiences of National

Governments of participating institutions

and development partners in applying

different to building such resilience which

include greater economic diversification and

moving away from dependence on exports

of narrow range of commodities, and

dependency on food imports. The experts

carrying out case studies of crisis response

by LDCs looked at imported food and

energy prices, and the vulnerability of the

general population to price induced food

shortages. The first outcomes of these

studies have been presented to the UN LDC

IV Conference in Istanbul and the lessons

have been reflected in the Istanbul Plan of

Action (IPoA) deliverables.

Following the feedback received in UN LDC IV,

the analysis and recommendations have been

further refined and included in the preparatory

process for UNCTAD XIII conference.

Immediately preceding the Conference, the

LDC Ministerial Meeting was held to discuss

the views on priorities for development

activities in commodity dependent LDCs.

Ministers of the world’s 48 least developed

countries (LDCs), met in Doha in advance of

the UNCTAD XIII quadrennial conference and

adopted a declaration calling for strengthen-

ing of the organization and for bolstering its

research, technical-cooperation, and

consensus-building work.


Cotton

CFC/ICAC/33: Commercial Standardization of Instrument Testing of Cotton for the Cotton Producing Developing Countries in Africa


Project Executing Agency Faserinstitut Bremen (FIBRE), Germany

Countries Directly Benefiting Mali, Burkina Faso and Tanzania





The main objective of the project was to

support the development of a globally

accepted system of quality assessment of

cotton which is based on instrument testing,

including the setting of testing rules, certifi-

cation criteria, instrument calibration stand-

ards, etc. A second focus of the project was

to develop a programme of initial support

for the establishment of two regional centres

in Africa that will be capable of providing all

required services to national quality control

institutions (in particular in the field of labo-

ratory certification, instrument calibration,

equipment and facility maintenance, etc) to

enable African cotton producing countries

to fully participate in the global system of

cotton trade on the basis of instrument-

tested quality parameters. The project was a

component of the EU’s All ACP Agricultural

Commodities Programme (AAACP), which

provided substantive co-financing.

The project was operationally completed in

March 2012 after slightly more than four years

of implementation. A successful dissemination

workshop has been held in Arusha (Tanzania)

in January 2012 where project results from the

regional activities as well as from the global

activities have been presented.

The detailed final report (including technical

Annexes) has been published on the project’s

web site (www.csitc.org). A downloadable ver-

sion of the final report (without Annexes) is also

available through a link on the CFC web site.

An extensive summary article on the project

has been included in the September 2012 issue

of the ICAC Recorder (Vol. XXX, No.3), available

in three languages, English, French and Spanish.

The project contributed to the further develop-

ment of instrument-based cotton testing in the

world and enabled the establishment of two

African Testing Centres, capable of provid-

ing all required technical services and training

activities. The centres, hosted by the Tanzania

Bureau of Standards in Tanzania and the CER-

FITEX in Mali (operating jointly with SOFITEX of

Burkina Faso) are state-of-the-art technologi-

cal development centres with the capacity to

assist cotton companies in their respective

sub-regions to further effectively support the

high quality of African cotton and to secure

premium prices for their farmers when selling

the cotton on the national and international

markets.

Effective utilization of the established ca-

pacities and capabilities within the Regional

Technical Centres, which are available for

the cotton producing countries in the service

regions, should enable cotton exporting coun-

tries to access market premiums of around

$50/ton of lint.

Fish

CFC/FSCFT/22: Diversification and Marketing of Value-Added Fishery Products

Submitting ICB FAO Sub-Committee on Fish Trade

Project Executing Agency Intergovernmental Organisation for Marketing Information

and Advisory Services for Fishery Products (INFOPECHE)

Countries Directly Benefiting Guinea and Mauritania


Common Fund for Commodities USD 621,300 (Grant) (of which USD 500,000 from the

OPEC Fund for International Development - OFID)



This is a pilot project on production of val-

ue-added fishery products through transfer

of appropriate technology and know-

how; improve product quality; develop

new market opportunities and assess the

longer term investment needs for increased

processing in Guinea and Mauritania. The

specific objectives are: (a) product specific

market investigations; (b) pilot production

of value-added products; (c) training in

quality control and marketing; (d) develop-

ment of new market opportunities including

non-traditional markets and conducting

market trials; (e) assessment of longer term

investment needs and investment promo-

tion; and (f) dissemination of project results

to other countries in the sub-region.

The project is operationally closed. Due to

the political unrest in Mauritania and Guinea

in 2008 and 2009 and the security situation

of Côte d’Ivoire where the PEA is headquar-

tered, the project encountered some delay,

after which it made progress. Progress

made so far includes: market studies, audit

for selection of participating companies,

several training workshops on develop-

ment of fresh and frozen value added

products, etc. The project in Guinea has

been extended to mid-2013. An important

output in terms of exports of fish products

from Guinea to the European Union has

been the audit of four establishments for

fish processing in Guinea. Out of the four

enterprises three were confirmed to be

compliant with the standards.


CFC/FSCFT/28: Enhancing Market Access of Amazonian Aquaculture and Fisheries Products


Project Executing Agency Centre for Marketing Information and Advisory Services for Fishery Products

in Latin America and the Caribbean (INFOPESCA)

Countries Directly Benefiting Brazil, Peru and Colombia




The project introduces quality Amazonian

fish products to the regional markets in

order to encourage the development of

a large scale sustainable aquaculture in

the Amazon region. The main purpose

of the project is to achieve the sale of a

regular flow of Amazonian fish products

outside the Amazon basin, on the regional

South American market, with a quality

standard considered acceptable by the

sanitary authorities, meeting the demands

of quality and regularity of the buyers and

being economically rewarding. After three

years of operation, all the set objectives

have been met. The final dissemination

workshop was held in November 2012,

and project outcomes have been widely

disseminated.

Grains/ Roots and Tubers

CFC/FIGG/37: Cassava Value Chain Development by Supporting Processing and Value Addition by Small and Medium Enterprises in West Africa

Submitting ICB FAO - Intergovernmental Group on Grains

Project Executing Agency International Institute of Tropical Agriculture (IITA)

Countries Directly Benefiting Benin, Nicaragua and Sierra Leone




Dutch Trust Fund USD 800,000

The project developed new market oppor-

tunities and supply lines for cassava farmers

and small and medium scale processors in

West Africa by upgrading traditional cassava

products for consumption as a convenience

food in urban markets, and the develop-

ment of industrial marketing channels for

processed cassava products as a low cost

substitute for bakery flour (instead of wheat).

In both market segments, good regional ex-

amples of successful supply chains that ap-

ply efficient technologies and management

structures for improved small and medium-

scale processing plants are currently almost

non-existent. The project was based on the

premise that the identified strong open or

latent market demand is the best incentive

for farmers to adopt productivity-enhancing

and resource-conserving technologies. To

retain a maximum proportion of the extra

value accumulated from processing, the

project introduced processing methods

adapted to small groups of women or farm-

ers, or small rural entrepreneurs.

The project has achieved all goals and objec-

tives in a very satisfactory manner. During

project implementation thirteen cassava

processing centers were upgraded, com-

missioned and made operational. Proces-

sors, other key stakeholders, and some NGO

partners at the centers were trained at dif-

ferent capacities on value chain; equipment

operation and maintenance, good process-

ing practices, product development, record

keeping, and business plans implementation.

The established processing centers re-

corded production and sales of 4800 tons

of processed cassava products such as gari,

odorless fufu and High Quality Cassava Flour

under guidance of developed business plans

that ensured profitable work processes. This

is an increase of more than 400% com-

pared to sales volumes recorded before the

project. The project introduced modern

processing techniques to all the sites, which

has led to the drastic reduction in cost of

production and processing drudgery (with

traditional technology, it takes about two

hours to roast about 40 kg of gari - with

innovative technology introduced, the same

amount is now produced within an average

of 30 minutes). The technology introduced

by CFC in the production of odorless fufu

flour and HQCF has made those products

to be a quality benchmark within the region

with a noticeable consumer preference. Two

products from the Nigerian SME (instant

fufu flour and gari) were formally registered

with the National Agency for Food and Drug

Administration and Control (NAFDAC); thus,

improving the products’ commercial com-

petitiveness and marketability. In connection

with project training on agronomic practices

for cassava production, there was an overall

recorded increase of yields for participating

farmers from an average below 10 tons/ha

to 13-18 t/ha in Nigeria, 20-25 t/ha in Sierra

Leone, and 15-20 t/ha in Benin.

Overall a total of some 2000 farmers, pro-

cessors and traders have directly benefitted

from the project through various training

measures, dissemination of improved pant-

ing material and sales increases of pro-

cessed cassava.


CFC/FIGG/39: Wealth Creation through Integrated Development of the Potato Production and Marketing Sector in Kenya, Uganda and Ethiopia


Project Executing Agency International Potato Center (CIP)

Countries Directly Benefiting Ethiopia, Kenya and Uganda



Development - OFID)


The overall goal of the project was to im-

prove the livelihoods of smallholder potato

producers in Ethiopia, Uganda and Kenya

through integrated development of the seed

and ware potato production and market-

ing chain. The purpose of the project was to

demonstrate the effectiveness of poverty re-

duction through integrated potato sector de-

velopment in the pilot intervention areas and

to disseminate the approach for country wide

and regional implementation. The project

pursued four specific objectives: to increase

the availability of high quality seed potatoes

at an affordable price; to increase small-

holder potato farmers’ income by boosting

potato yields through improved seed potato

quality management and crop husbandry; to

improve market linkages and communication

between potato value chain stakeholders;

and to translate project results into national

potato sector development plans and share

project lessons with international partners.

At completion the project has fully met or

even surpassed the set objective goals.

Major outcome of the project is that in total,

about 4000 framers that were trained on

potato cultivation increased their yield from

less than 8t/ha to an average of nearly 30 t/

ha (up to as high as 50 t/ha in Ethiopia). Due

to the value chain approach and linkages

established through the project these farm-

ers were able to sell their seed at farm gate

or at predetermined prices. Three potato

processors and one seed company were

connected to about 500 smallholder farm-

ers who engaged in contract farming. >>

CFC/FIGG/38/FA: Grain Farmers’ Access to Warehouse Inventory Credit in Ethiopia and Tanzania

Submitting ICB FAO Intergovernmental Group on Grains (FIGG)

Project Executing Agency AMIS International Ag. Consulting Inc.

Countries Directly Benefitting Ethiopia, Tanzania, Malawi



Counterpart contribution USD 172,000

This project focused on the opportunities

created by warehouse receipts and

inventory credit in East Africa to improve

financing of smallholder farmers and

increase their incomes. Greater financial

flexibility was expected to strengthen the

farmers’ position in marketing their crop

and contributed to improved quality control

and marketability of the produce.

The specific project objective was to

improve farmers’ access to bank financ-

ing by developing the use of warehouse

receipts as collateral. Further benefits from

wider use of warehouse receipts include

standardisation and certification of grain,

improvement of information manage-

ment systems and general improvements

to standards of storage. Specific outcomes

produced by the project include:

•ThedevelopmentofWarehouseInventory

Credit (WIC) supports the country in the

design and implemen tation of commodity

chain strategies by facilitating the

financing of commodity sector

•BysupportingthedevelopmentofWIC

the project promotes functioning of

markets (input, output & financial).

Through improved access to finance,

WIC also enhances marketing and vertical

integration capacities in the countries

commodity sector.

•AfunctioningWICsystemininstrumental

in creating enabling environment for the

introduction of Commodity Risk Manage-

ment (CRM) instruments. The use of WIC

provides has been seen to provide the

basic level of price risk management by

effectively offering farmers an option to

sell at a date of their choosing.

Today a Warehouse Receipts Board is

operating in Tanzania and is fully embedded

in the national regulatory framework. The

Board staff are now housed in permanent

offices paid for out of the Ministry of In-

dustry and Trade general operating budget.

There’s considerable volume of warehouse

receipts issued, and financed by participat-

ing banks, but the preference of commer-

cial players is with high value crops such as

cashews, rather than paddy or maize.

In Malawi, the Agricultural Commod-

ity Exchange (ACE) has introduced a fully

integrated electronic system for managing

Warehouse Receipt (WR) and Warehouse

Inventory Credit (WIC) The ACE trade sys-

tem has three components:

•Thenormalbid/offermatching

functionality

•TheBidVolumeOnly(BVO)auction

system; and

•Thewarehousereceiptsystem

Malawi and Tanzania components ex-

changed specialists to share the experience

on setting up the electronic registry and

market information management systems,

based on the Malawi work, in Tanzania.

Licensing system for public warehouses

had been set up, and 5 core warehouses

assisted to reach a certifiable standard in

Tanzania, 4 in Malawi.

One of the key findings of the project is that

smallholder farmers need further technical

support in marketing their crops. Failure to

address this constraint results in lost op-

portunities, missed markets, financial losses,

etc. Project staff has developed a Market-

ing Training Program that is effective in

addressing marketing issues for smallholder

farmers. Follow-up activities are pursued

in collaboration with USAID’s COMPETE

programme and with private sector com-

panies working on market information

infrastructure.


To decrease storage losses and maintain

quality, more than 160 so called Diffused

Light Stores were constructed with a seed

storage capacity of about 800 tons, of

which more than 60 were established

with own funds of farming communi-

ties. In collaboration with USAID, the CFC

also supported the construction of three

innovative “aeroponics” units which sub-

stantially improved the ability of national

research stations to produce disease free

basic potato seed - a prerequisite for high

potato yields.

The project has shown that that the ap-

proach of integrated potato subsector

development can have a significant and im-

mediate impact on poverty alleviation. Some

participating farmers, especially in Ethiopia,

have a disposable cash income through

potato sales for the first time in their lives. It

is apparent that there is a huge unexploited

market for both quality seed and ware

potatoes. This forms the basis for evidence-

based policy advice to extrapolate project

lessons to the larger potato sector for future

national level sector development.

Hard Fibres

CFC/FIGHF/15: Sisal Development: Sisal Fibres Replacing Asbestos in Cement Composites

Submitting ICB FAO Intergovernmental Group on Hard Fibres

Project Executing Agency Brazilian Micro and Small business Support Service (SEBRAE)

Countries Directly Benefiting Brazil




The project was designed to establish at

a pilot level the technical and economic

viability of the use of sisal fibre in the

production of construction materials for

the building industry. The emphasis would

be on assessing the potential for the

replacement of asbestos fibres thus far

frequently used in the building materials

industry in Brazil. The project had made

a cumbersome start and the completion

of two key studies (on the “state-of-

the-art” of international developments/

experiences related to the use of sisal in

composites, and on the internal market

structure/potential in Brazil, outlining

provisional competitiveness of the new

to develop materials) were delivered after

considerable delays. The project was

subjected to an external independent

evaluation in 2009. Follow-up by the PEA

on CFC’s substantive recommendations

for the possible start-up of Phase II have

not been addressed to the satisfaction of

the Fund. The project was closed in 2012

and the unused funds earmarked for this

project have been returned to the Fund’s

general project resources.

Herbs and Medical Plants

CFC/FISGTF/16: Medicinal Plants and Herbs: Developing Sustainable Supply Chain and Enhancing Rural Livelihoods in Eastern Himalayas

Submitting ICB FAO Intergovernmental Sub-Group on Tropical Fruits

Project Executing Agency International Centre for Integrated Mountain Development (ICIMOD)

Countries Directly Benefiting Bangladesh, Bhutan and Nepal


Common Fund for Commodities USD 1,618,515 (Grant) (of which USD 1 million from the OPEC Fund for International

Development - OFID)



The project was designed with the overall

goal of improving livelihoods of mountain

communities in three countries of eastern

Himalayas: Bangladesh, Bhutan and Nepal.

Project activities aimed to increase incomes

of medicinal and aromatic plants (MAP)

producers by designing local, national and

regional interventions through assess-

ment of community needs, information,

knowledge and resource base of medicinal

herbs sector in the three countries and to

strengthen supply chains of herbal com-

modity, involving collectors, cultivators, and

producers to better access national, regional

and international markets. At the same time

enabling policies, institutions and market

infrastructures and private sector investment

have been promoted. Specific components

included i) situation analysis and baseline as-

sessments; ii) improved supply chain man-

agement to enable a) production enhance-

ment and producer-market linkages and

b) processing and marketing through value

addition, and iii) policy, legal and adminis-

trative reforms and to facilitate policy and

institutional support for strengthening the

sector. The project has been implemented

in Bangladesh by the Development of

Biotechnology and Environmental Conser-

vation Centre (DEBTEC) and the Bangladesh

Neem Foundation (BNF), in Bhutan by the

Ministry of Agriculture (MoA) and in Nepal by

the Herbs and NTFP Coordination Commit-

tee (HNCC) under the Ministry of Forests

and Soil Conservation (MFSC).The support

and ownership of the project by the national

governments facilitated the achievement of

the project objectives in terms of improv-

ing the processing, capacity development

and marketing of MAPs as premium price

products, successfully linking the producers

of medicinal plants to formal markets with

positive spillovers on farmers’ income. The

project was successful in introducing the

concept of supply chain management of

MAPs in line with the national Governments

long term vision for poverty reduction

and sustainable mountain development.

Altogether 600 farmer households from

24 community forest users groups were

mobilised as direct beneficiaries in Nepal. In

Bhutan 290 farmer households were mobi-

lised for the project. The beneficiary >>


Oilseeds/Oils/Fats

CFC/FIGOOF/22: Sustainable Coconut Production through Control of the Lethal Yellowing Disease


Project Executing Agency Coconut Industry Board of Jamaica

Countries Directly Benefiting Honduras, Jamaica and Mexico




The project was directed at maintaining and

improving coconut production, in particular

by small-holders, in a sustainable manner. It

aimed to provide urgently needed technical

assistance to research efforts in that region

aiming to identify and deploy disease-re-

sistant coconut germplasm. It also targeted

the development of detection methods

for the suspected resistance-breaking new

pathotype of the disease which are needed

for phytosanitary and research purposes.

In addition, it addressed development and

promotion of possible control options by ad-

vancing and applying knowledge on disease

epidemiology, spread/transmission, and on

possible phytosanitary measures. Coconut

farmers in outbreak areas have participated

in efforts to find sources of resistance and

cultural control methods and knowledge

gained, are being disseminated and promot-

ed by means of participatory approaches to

those threatened by the disease. The project

strengthened international collaboration, in

particular within the Caribbean and Central

America, among countries affected by coco-

nut lethal yellowing and related diseases.

Activities in 2012 focused on winding up

the project as per the scheduled program.

Targeted progress in scientific achievements

is not reported to be fully realized, while

substantive results are reported in the field

of introducing novel and improved practical

disease containment measures through

effective training and support at field level.

The regional cooperation between the three

countries has developed well. Jamaica had

taken the lead by advocating good farm

management practices as one method

for controlling the disease. All the findings

through implementation of this project have

been disseminated through Famer Field

Schools. The project was operationally com-

pleted by mid 2012. Full documentation and

reporting on project activities, findings and

achievements is currently ongoing to ensure

an as wide as possible dissemination of prac-

tical and scientific results. When finalized, the

report will be published at the Fund’s web

site. A technical peer review cum dissemina-

tion meeting is under consideration.

households in Nepal and Bhutan initi-

ated cultivation of MAPs in 27 hectare and

30 acres of land respectively. Develop-

ing farmers’capacities to produce the

target species in plantations, introduc-

ing primary processing at the producers

level and developing market linkages were

major thrusts. Activities related to primary

processing like cleaning, drying, grading,

and packaging were further consolidated

and used as the strategy for successful mar-

keting. Institutional development such as

producer’s cooperatives and strategies for

their efficient management were supported.

Business linkages for the cooperatives

were developed with the private sector in

Nepal and a contract for buy back has been

signed with the private sector agency ‘Bio

Bhutan’ in Bhutan. Common facility centres

(CFC) were constructed in both countries,

which functions as a platform for market-

ing, value added processing and forward

and backward linkages that are being

managed by the cooperatives. Policy issues

were identified in Nepal together with the

stakeholders and the recommendations

concerning revising royalty for cultivated

MAPs, transparency in transport of herbs

and facilitation for the development of

MAPs based enterprise development have

been approved by the Secretary, MFSC and

is currently with the Ministry of Finance

for approval. The Government of Nepal

through the MFSC has formed a panel to

upgrade the Herbs and NTFP Coordination

Committee (HNCC) to a National Me-

dicinal Plants Board, the process for which

was supported by the PEA. In Bhutan, the

project was linked to the Government’s

policy of One Geog Three Products (OGTP)

and the Government to Community (G2C)

linkage development programmes. Farmer’s

income from five targeted MAPs species in

Nepal increased to NRs 15,442 (USD 1821)

from an average income of NRs 3000 (USD

42) from the same before intervention.

The farmers’ cooperative in Nepal traded

196 tons of raw MAPs with a value of USD

11,200 in end of 2012. Average household

income of the sample households from

MAPs increased to NRs 79,450 (USD 934)

from NRs 19,272 (USD 267) before interven-

tion. This huge increase is also attributed to

the increase in incomes from yarsa gumba

from NRs 49,381 (USD 685) to NRs 325,844

(USD 3833) in one of the project districts.

However, even without the income from

yarsa gumba the farmers in Nepal achieved

more than four times increase in income

from MAPs post intervention. The farmer’s

cooperative in Bhutan sold 8.8 tons of 3

species of MAPs worth Nu 2,472,542 (USD

49,450) in 2012. In Bhutan the interven-

tions have enabled the farmers to earn cash

income of Nu 5000-8000 (USD 96-1532)

from MAPs on an average per household.

This is the first time that farmers in the pro-

ject sites in Bhutan have earned additional

cash income from new crops that helped

them increase their household incomes. In

both the countries processing of value add-

ed products will be initiated once a secured

market for such products is identified and

processing technologies are perfected. This

project was completed in October 2012.

1 1 USD = NRs 85 in October 2012 and NRs 72 in November 2007.2 1 USD = NU 52 in 2012 and NU 45 in December 2007.


Rice

CFC/FIGR/14: Improving the Competitiveness of Rice in Central Africa

Submitting ICB FAO Intergovernmental Group on Rice

Project Executing Agency Africa Rice Center (WARDA)

Countries Directly Benefiting Cameroon, Central African Republic and Chad



Development - OFID)


The project goal was to reduce depend-

ency on rice imports, and to improve food

security and rural incomes in CEMAC

countries through innovative interventions

that promote competitive domestic rice

production and marketing. To achieve this

goal, the project introduces improved rice

varieties - particularly newly developed rice

hybrids (“NERICA”) that are especially well

adapted and available for various African

agro-ecological zones - as well as simple

market-oriented post-harvest technologies

to smallholder-farmers and farmer groups,

allowing them to integrate production

with market development activities. The

development objectives of the project

were to: improve on-farm rice productiv-

ity and quality through the deployment

of NERICAs and other improved produc-

tion and post-harvest technologies; to

develop pilot-scale quality rice processing

and milling centres at community-level

for the supply of quality rice to wholesale/

retail markets; to improve the capacity of

male and female farmers to participate

in integrated production, processing and

marketing operations, and to strengthen

the human and institutional capacity in the

region for promoting profitable rice pro-

duction, processing and marketing.

The project even surpassed its ambitious

goal, i.e. to reach a total of 60,000 farming

households and enable them to self-

reproduce NERICA seeds on a permanent

basis: Latest (2012) figures collected from

extension agencies and NGOs amount to

over 180,000 farmers in the three countris

which now have access to project intro-

duced high yielding rice varieties. Recorded

figures from shareholders of the estab-

lished six processing centers indicate that

the use of these varieties lead to a substan-

tial increase in productivity from less than

0.8 tonnes per hectare to 2 t/ha for upland

rice, and from less than 2 t/ha to more than

6 t/ha for lowland varieties.

The construction of the village based rice

processing centers (a ‘one-stop-shop’

for quality along the whole value chain

from seed through milling, sorting and

packaging, to marketing) with an innova-

tive business model on a pilot basis has

been completed and an innovative joint

private sector/farmer management model

has been successfully applied in practice.

First indicative figures available suggest

that these processing centers are highly

profitable. This will increase the quality

competitiveness of locally produced rice

vis-a-vis imports and will trigger economic

activity in remote rural areas.

CFC/FIGR/15: Transformation of Upland to Irrigated Rice Through Use of Water Har-vesting in Costa Rica, Mexico and Nicaragua

Submitting ICB FAO Intergovernmental Group on Rice

Project Executing Agency International Centre for Tropical Agriculture (CIAT) /

Latin American Fund for Irrigated Rice (FLAR)

Countries Directly Benefiting Costa Rica, Mexico and Nicaragua




The project introduced and disseminated

water harvesting technologies to increase

food production and income generated

from a diversified rice-based production

system under small-scale irrigation. Farm-

ers and technical staff are being trained

in site selection for water catchments,

construction of water harvesting facilities

and improved crop management practices

under irrigation. Fish cultivation in the

water catchments was demonstrated and

aquaculture technology disseminated. The

established pilot water harvesting facilities

provide a visible blueprint to regional gov-

ernments and the international develop-

ment community for further expansion of

irrigation to small upland rice growers in

the region.

The project successfully met its objective

of demonstrating the feasibility of water

harvesting for capturing water for irrigation

on small farms. The project established low

cost reservoirs at 12 sites in Nicaragua and

4 in Mexico. The availability of irrigation

combined with high productive agronomic

practices resulted in large increases in pro-

duction of various crops and milk, stimulat-

ing farmers’ income by 5 to 10-fold (e.g.

net profits in Nicaragua from maize farming

increased from 100 USD to 1,500 USD per

hectare). Project staff also made significant

strides in developing proposals for sustain-

ing and expanding activities in Nicaragua

and in Mexico. Due to the demonstration

effect of the CFC project, Government

authorities, foremost in Mexico, have taken

up the technology and expanded water har-

vesting to the citrus and sugarcane sector.

27 additional reservoirs were constructed

during 2012 and another 100 are under

evaluation for approval.


CFC/ITTO/60: Genetic Resistance of Iroko to Phytolyma Lata

Submitting ICB International Tropical Timber Organization (ITTO)

Project Executing Agency Société de Developpement des Forest (SODEFOR), Côte d’Ivoire

Countries Directly Benefiting Côte d’Ivoire





Iroko (Milicia regia and Milicia excelsa)

are African forest species with high com-

mercial value due to their natural longevity

and technical properties. The project

addresses the problem of the Iroko species

falling prey to insect attacks which stunt

growth, affect stem shape and size and

jeopardise the future of the timber spe-

cies. The project focuses on broadening

the genetic pool of collected plant stock,

propagating the selected clones on a large

scale and establishing pilot-scale industrial

plantations based on the silvicultural tech-

niques developed.

The main outputs are the availability of more

resistant genotypes, improved cuttings, 100

ha of Iroko plantations mixed with other spe-

cies and expanded cooperation and exchange

between the three countries involved. The

project team carried out transfer of plant

materials, from Iroko clones resistant to >>

Tropical Fruits

CFC/FIGTF/19: Development and Piloting of Horticulture Out-Grower Schemes for Export Markets in Eastern and Southern Africa

Submitting ICB FAO Intergovernmental Sub-Group on Tropical Fruits

Project Executing Agency TZI and other institutions

Countries Directly Benefiting Tanzania and Zimbabwe


Common Fund for Commodities USD 1,740,000 (Grant) (of which USD 1,000,000 from the OPEC Fund for International

Development - OFID)

CFC Loan USD 1,200,000



The objective of the project is to strengthen

capacity of smallholder outgrower farmers

so that they will be able to participate and

produce vegetables and fruits for export

markets and enhance their incomes and

standard of living. These export markets will

result in increased foreign currency earnings

for Zimbabwe and Tanzania. The project aims

to pilot the outgrower scheme for vegetable

and fruits. It is focusing on: encouraging local

farmers to participate in outgrower schemes

for vegetables and fruits; improving the

hectarage and volumes of exports from local

smallholder farmers; improving the quality

of produce from small scale farms; enhance

the market base for the produce and support

initiatives to seek market opportunities.

Project activities in Zimbabwe mainly

concentrated on vegetable production

and marketing while in Tanzania attention

was given to mango development. Some

progress was made. In Tanzania mango

seedlings were distributed and exten-

sion services were provided to selected

participating farmers. Since there were

some changes in the project management

structure so the project was extended in

both countries. The project is closed and

the loan has been recovered.

Tropical Timber

CFC/ITTO/42: Research & Development (R&D) for Energy Alternatives


Project Executing Agency Forest Research Institute Malaysia (FRIM)

Countries Directly Benefiting Cameroon and Malaysia




The objectives of the project are to utilise

timber and agricultural waste to generate

energy which is usable in various industries

by: a) Improving the technologies for the

sustainable use of bio-mass resources and

promoting their use in agro-business and in

rural communities for family energy supply;

b) Testing the technologies under semi-

commercial conditions to demonstrate their

technical and financial viability; c) Estab-

lishing strategies for the introduction and

replication of appropriate bio-mass energy

technologies on a commercial basis. In Ma-

laysia the testing of a briquetting technology

system and a direct combustion (suspension

burner) technology was a success on a pilot

basis within the premises of FRIM.

Activities in Cameroon started in 2010 with

a new identified counterpart institution. The

Steering Committee held in March 2012

concluded that instead of adapting equip-

ment designs developed in Malaysia, a cycle

of design and development of the system

by local experts will be required with the as-

sistance from FRIM. Since apart from a visit

from Cameroonian experts to FRIM, no ma-

jor progress was made, CFC concluded that

the project will need to be closed in 2012,

inviting the proponents to reformulate their

ideas in the context of the new operational

guidelines of the CFC.


Phytolyma lata, which had been selected in

Kani area during the first phase of the project,

to secured sites located in the Sangoue

Gazetted Forest; SODEFOR staff have been

trained in FORIG-Ghana in Kumasi on the

cuttings propagation techniques of Iroko;

2560 seedlings of Iroko have been produced

using the cuttings propagation techniques

based on the experiences learned from

FORIG-Ghana. A nursery has been established

in Sangoue, near two water reservoirs fed by a

permanent river, for the cuttings propagation

work for the production of seedlings of Iroko

clones resistant to the attacks of Phytolyma

lata. 65 ha of experimental mixed plantations,

composed of Iroko and Khaya anthoteca,

Tectona grandis and Acacia mangium, have

been established in the Sangoue Gazetted

Forest; and fringe communities have been in-

volved in the project implementation (nursery

and plantations).

CFC/ITTO/62: Utilisation of Small Diameter Logs from Sustainable Sources for Bio-Composite Products


Project Executing Agency Faculty of Forestry, Bogor Agricultural University, Indonesia

Countries Directly Benefiting Indonesia, Malaysia, Papua New Guinea and the Philippines




The project, under implementation in

Indonesia, Malaysia, Papua New Guinea and

the Philippines, uses small-diameter logs,

normally waste products in logging and

lumber production, to enable manufacture

of biocomposite products. Use of small-

diameter logs (SDLs) for the production

of biocomposite products represents an

untapped resource. Timber species in native

forests that never reach merchantable size

as established by market regulations and

the gradual thinning of the plantations, have

not been significant as timber resources.

Small-diameter logs are a sustainable

source of raw material enabling an increase

in production of value-added biocompos-

ite products to meet the growing demand

for construction products in the timber-

producing countries as well as in developed

countries. The final project workshop was

held in December 2011 in Bogor, Indonesia

to disseminate research conducted through

the project.

The results of the project are:

•Increasedsupplyofbiocomposteprod-

ucts such as plywood, laminated veneer

lumber, glued laminated lumber (glulam),

particleboard, medium density fiberboard,

and also cement board. All the boards can

meet the standard requirements by regu-

lating the factors in processing variables.

•MarketoperatorsnowrealizethatSDL

based timber products have an added

advantage in facing to global market

orientation, as logs from sustainable forest

management are required.


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VIII Twenty-Fourth Annual Meeting of the Governing Council | 87

Summary of address by the Chairperson

The Governing Council of the Common Fund for Commodi-

ties held its 24th Annual Meeting in The Hague, Netherlands,

from 11 to 12 December 2012. H.E. Mr. Sirajuddin Hamid Yousif,

Ambassador of Sudan, opened the 24th Meeting of the Govern-

ing Council in his capacity as the Chairperson.

The Chairperson welcomed the delegates, representatives, and

invited guests. He acknowledged the presence of H.R.H. Prince

Jaime de Bourbon de Parme of The Netherlands representing

the host Government.

In his opening remarks Chairperson of the Governing Council

referred to the historic nature of the meeting as this meeting

would consider recommendations on the “Future Role and

Mandate of the Common Fund for Commodities”. He stated

that the meeting was being held at a time of continuing global

economic crisis which remained a cause for serious concern for

Governments around the globe as the road to recovery was not

foreseen to be early or an easy one.

The Chairperson stressed the importance of investment in

commodities as the global population had doubled between

1970 and 2000, global economic output had increased tenfold

but the global agriculture production had lagged behind and

only increased by a factor of three. Thus it was not surprising

that issues of raw materials supplies and food availability were

of rising concern.

He stated that there was an almost-universal consensus

that greater investment in commodity sectors was required

to recover global stability and enhance food security. It was

estimated that in the coming years, up to 80% of increase

in food production in developing countries would have to

come from intensification and technology improvement,

rather than expansion of cultivated areas. This implied need

for large volumes of investment in developing countries in

their commodity sector or they would face rising food

insecurity and social tensions.

The Chairperson referred to the emergence of commodities as an

asset class and increased financialisation of commodity markets

VIII Twenty-Fourth Annual Meeting of the Governing Council

Ph

oto

: C

FC


which had led to rising volumes of investment in derivative instru-

ments, but not in investments in physical productive capacities for

food and other essential products. Turning the interest of global

investors towards investments in physical commodity sector

remained an unresolved challenge in global economic govern-

ance and this would have to be addressed if global sustainable

economic development in the medium and long term was to be

achieved. The CFC with its mandate and expertise could play a

more proactive and positive role in these discussions.

He referred to the hope and optimism in the early years of the

new millennium offered by development of financial markets,

the use of market based hedging instruments as a new remedy

to commodity related vulnerability, and resulting commodity

dependence. However, these hopes had been belied as financial

instruments were costly, and did not provide sufficient protec-

tion for vulnerable countries at the time of crisis. Advancing the

search for new measures to address the vulnerability of com-

modity dependent countries was, therefore, another challenge

for the Common Fund.

The Chairperson noted the shift in the global balance of

economic power. The new centres of growth and changing

patterns of global trade presented new opportunities but also

posed new challenges to commodity dependent countries.

These needed to be recognised and reflected in the work of the

CFC and the CFC should pay greater attention to strengthening

the positive development impact of south-south cooperation

and trade.

He enjoined the CFC to combine the momentum of interna-

tional cooperation with innovation and result orientation of

the private business that would enable the Fund to leverage its

resources for greater impact and greater economic returns for

all Members of the Fund.

Welcome address, on behalf of the host country

Prince Parme speaking on behalf of the host Government and

Minister of Trade and Development Cooperation, Ms. Lilliane

Ploumen, welcomed the delegates noting that raw materi-

als and commodity issues, central to the CFC’s mandate, will

become more important in the next decade.

He referred to the expected increase in the world population,

from 7 to 9 billion by 2050 with increased needs food, water,

housing, clothing and fuel. The rising incomes would shift con-

sumption patterns and decline of agricultural output due to lack

of investments and climate change would affect resources in

unpredictable ways. He expected innovation and the introduc-

tion of new technologies to tackle some of the challenges but all

these issues would have economic and political consequences.

He referred to the meeting at the World Resources Forum in

China, where Chairman Jinghai Li announced the need for

a new forum to discuss resources, similar to the IEA which

demonstrated the growing concern over resources and issue of

resources coming at the forefront of politics in the next decade.

Prince Parme emphasised the need to optimize the use of natu-

ral resources for which engagement of private sector, which in-

cluded farmers, was the key but at the same time governments

were responsible for resource governance to facilitate trans-

parent and responsible use of natural resources. He referred

to important role played by CFC in commodity development.

Especially the contribution of the CFC’s innovative projects in

opening opportunities to use natural rubber in the tire and car

industry or the use of bamboo in sustainable building of houses

or increasing the price for cotton by inventing a method to

improve quality of cotton production to address the issue of

sticky cotton project and his favourite example of collaboration

of CFC with Heineken that shifted the corporate policy from

central procurement of raw materials to local procurement

Welcome address by H.R.H. Jaime de Bourbon Parme, Special Envoy

Natural Resources, Ministry of Foreign Affairs of the Netherlands

Photo: CFC

VIII Twenty-Fourth Annual Meeting of the Governing Council | 89

which increased the income of local farmers and gave them a

stable market for their products.

He stated that the CFC had always followed the supply chain

approach since its establishment while today supply chain

management in public-private alliances is the new way forward.

In this spirit The Netherlands had started an Initiative for Sus-

tainable Trade two years ago. This agency served as a neutral

broker, bringing all the actors in the chain together to improve

the livelihood of farmers in sourcing countries: socially and

environmentally. This in turn enabled sustainable production for

future generations. In the same spirit he had recently launched

a conflict free supply chain of tin out of the conflict sensitive

Kivus, in eastern DRC. He had brought miners, exporters, trad-

ers, smelters, soldering manufactures and end-users such as

Philips, Tata Steel, Motorola Solutions, RIM Blackberry, IBM, HP

and Fairphone together to promote a peace economy instead

of a war economy. He emphasised the role of UN agencies and

governments as neutral brokers and smart investors to make

resources work for all and for the next generation.

Prince Parme stated that due to the financial crisis ODA funds

were decreasing. Governments were rethinking aid. Tax payers

wanted to see a clearer ‘return on investment’ (or effectiveness)

in social and economic terms. Governments wanted a clearer

relationship with recipient countries, beyond pure development

assistance. With less resources one had to invest smarter. This

was another reason to invest where the greatest impact could

be made for development. Resource rich countries often suf-

fered from the resource curse: income increased value of cur-

rency, import became cheaper than production, the economy

becomes dependent on the one resource as the sole source

of income, corruption, and in worst case war was the effect.

Bending it to become a resource blessing was a good invest-

ment: good (resource) governance. That is where part of the

int’l aid and knowledge should be directed to.

He brought to the notice of delegates that The Netherlands had

recently appointed a minister for both Trade and Development

Cooperation, anticipating that there was much synergy to be

found between these two functions. The minister had an-

nounced that global food and water security would remain high

on our political agenda.

Prince Parme called upon delegates, while debating the func-

tioning of the CFC, not to lose sight of increasing role it could

play in global discussions on resources, providing information on

agricultural commodities at the level of producers, inspiring and

operationalizing innovative approaches (PPP and supply chain

management) and promoting new technologies and innovation

to optimize distribution, access to food and competition.

Summary of the Statement of the Acting Managing Director on the Activities of the Fund during 2012

Mr. Parvindar Singh, Acting Managing Director welcomed the

delegates to the 24th Meeting of the Governing Council and

thanked H.R.H. Prince Jaime de Bourbon de Parme to have

taken time out from his busy schedule to deliver the welcome

remarks on behalf of the host Government.

The Acting Managing Director referred to the historical highs

of commodity prices in mid-2008 and the devastating effect of

triple crisis of food, fuel and finance that erupted in 2008 had

on prices of most commodities which declined sharply. The

rebound in commodity prices that commenced at the begin-

ning of 2009 had not been sustained as the sovereign debt

issues, inflationary pressures, and extreme weather events had

cast a dark shadow on the global growth prospects and thus on

commodity prices. The word economy was still not out of the

difficult situation and it was hoped that measures collectively

put forward by the world community would lead to revival and

sustained recovery.

He referred to the process of deliberations on the “future role

and mandate of the CFC and its long-term financial sustainabil-

ity” which commenced in 2009 and after three years of active

consultation between members, the recommendations of the

Open-ended Committee were before the Council for consid-

eration. The recommendations covered mandate, mission and

vision, governance and organizational structure including staff-

ing during the transitional period, operations, resource mobili-

zation and fostering development partnerships, and advocacy

and communications. The deliberations and conclusions of this

Statement by representative

of Italy Mr. Luca TrabalzaPhoto: CFC


meeting would determine the future direction of the CFC. He

urged the Members to put forward all their views on the future

directions of the CFC, so that the CFC continued to reflect the

common interests of the Members and worked towards meet-

ing their evolving expectations.

He stated that 2012, 15 projects, i.e. four regular projects

and eleven fast track projects worth USD 9.51 million were

approved. In anticipation of changed procedures for 2013

onwards, the CFC had invited proposals for financing through

an open call in October 2012 to which there was an over

whelming response and more than 300 proposals from small

and medium enterprises, producer associations, cooperatives

and NGOs were received. The response showed the unmet

demand for funds for commodity development. He hoped that

other institutions would come forward to support commodity

development measures.

He referred to a joint AGRA-CFC-KIT event on “Reaching Public

Goals through Private Sector Investment” was held in December

2012, with kind financial support of the Dutch Authorities, to

discuss how business initiatives could contribute to agricultural

development in Africa particularly focusing on how smallholder

farmers could benefit from such interventions. He stated that

the conclusions of the event would be integrated in future work

of the CFC.

He informed the Council that the administrative budget for the

year 2013 took into account the expected restructuring of CFC

for the current transitional period including savings in meeting

costs and operational expenditure of the Fund. To align the ad-

ministrative expenditure with the expected revenues, numbers

of measures have been initiated and he hoped to match expen-

ditures with earnings over time.

The volatility of commodity markets, and increasing role of

financing investors have come to prominence recently as one

of the important development issues for commodity depend-

ent countries. This reflected financial instability following the

crisis of 2008, as well as the food crisis of 2010 and forecasts of

global food shortages in 2012-13. In December 2011 the United

Nations called on international organizations to do more to

address the issues of commodity market volatility. The CFC was

invited to join other UN bodies in the High-Level Thematic De-

bate in April 2012 under the leadership of H.E. Leonel Fernandez

Reyna, President of the Dominican Republic. The CFC was also

invited as panel member in the “High Level Event on food price

volatility and the role of speculation” held in Rome in July 2012.

The CFC focussed its contribution on the role of private sector,

commodity dependence, vulnerability and resilience as key fac-

tors defining the impact of market volatility on the poor.

It was recognized that private and public sector parties es-

sentially agreed that the impact of volatility must be addressed.

Nevertheless, there was an apparent lack of agreement and

common understanding of key underlying problems related

to volatility. This prevented effective joint action by public and

private sector.

Recognizing the challenge, the CFC supported the emergence

of Public-Private Initiative on Commodity Market Volatility as an

effort to open such a dialogue. This initiative was supported by

five major international banks active in commodity trading. The

first meeting of the PPI on Commodity Market Volatility took

place in New York at UN Headquarters in September 2012. The

outcomes provide a blueprint for greater collaboration to pro-

mote productivity and resilience of CDDCs to market shocks.

Major Outcomes of the Meeting

The Governing Council adopted the recommendations of

the Executive Board on the “Future Role and Mandate of the

Common Fund for Commodities and its Long-term Financial

Sustainability” and stressed the need for early review of the

Agreement Establishing the Common Fund for Commodities

to align it to the present context of international cooperation

in commodities, the emerging global development agenda,

new financing modalities and new vision, mandate and work

program of the CFC.

The Governing Council noted that the consideration of projects

under the new procedures and priorities would commence in

2013, and the initial results will be reported in April 2013. The im-

pact of new projects would only be visible from 2014 onwards.

To enable operationalization of new procedures of project

financing the Governing Council agreed to suspend selected

provisions of the Agreement Establishing the Common Fund for

Commodities for a period of three years i.e. up to end 2015.

The Governing Council adopted new “Policy towards Member

Countries not meeting their financial obligations towards the CFC”

H.E. Mr. Sirajuddin Hamid Yousif (Sudan) was elected as Chair-

person the Governing Council for 2013.

Following were elected as Vice-Chairpersons for 2013

African Group: Mr. Dauda Kigbu (Nigeria); Asia and Pacific

Region Group: H.E. Mr. Buddhi K. Athauda (Sri Lanka);

China: Mr. Fei Li; Latin American and the Caribbean Region

Group: to be announced; OECD Group: Ms. Anna Tofftén

(Sweden); Russian Federation: to be announced.

IX Financial Reports | 91

Balance Sheet - First Account, as of 31 December 2012 (expressed in USD & SDR)

2012 2011 2012 2011

USD USD SDR SDR

ASSETS

Cash and Cash equivalents

Cash in Bank 20,084,200 7,531,100 13,067,800 4,905,400

Time Deposits 8,409,200 8,473,800 5,471,500 5,519,400

28,493,400 16,004,900 18,539,300 10,424,800

Investments

Debt Securities 84,699,600 98,100,900 55,110,000 63,898,100

84,699,600 98,100,900 55,110,000 63,898,100

Promissory Notes 58,528,700 59,690,300 38,081,800 38,879,400

Amounts Receivable From Members

Amounts Receivable From Members 14,949,000 14,736,600 9,726,600 9,598,700

Provision For Overdue Members Capital Subscription -13,929,800 -13,736,300 -9,063,500 -8,947,200

1,019,200 1,000,300 663,100 651,500

Prepayments 111,600 186,700 72,600 121,600

Other Receivables

Accrued Income on Investments 956,400 1,012,900 622,300 659,800

Recoverable Taxes on Goods & Services 67,200 118,100 43,700 76,900

Receivable from Dutch Trust Fund 111,000 29,400 72,200 19,100

Receivable from EC Trust Fund 632,400 1,276,700 411,500 831,600

Other receivables 92,700 84,300 60,300 54,900

1,859,700 2,521,400 1,210,000 1,642,300

Total Assets 174,712,200 177,504,500 113,676,800 115,617,700

LIABILITIES AND EQUITY

Liabilities

Accrued Liabilities 1,209,200 1,202,800 786,800 783,400

Payable to EU/EC 2,000 493,600 1,300 321,500

Turkey settlement 156,600 156,600 101,900 102,000

Japan settlement 30,986,100 0 20,161,200 0

Belgium settlement 1,030,300 0 670,400 0

33,384,200 1,853,000 21,721,600 1,206,900

Capital Subscriptions & Accumulated Surplus

Paid-in-Shares of Directly Contributed Capital 124,777,800 154,872,900 81,186,900 100,876,700

Provision For Overdue Members Capital Subscription -13,929,800 -13,736,300 -9,063,500 -8,947,200

Net Earnings Programme 19,243,800 20,570,800 12,400,900 13,258,000

Accumulated Surplus 7,852,900 7,858,600 5,109,400 5,118,600

Translation Reserve 3,383,300 6,085,500 2,321,500 4,104,700

141,328,000 175,651,500 91,955,200 114,410,800

Total Equity and Liabilities 174,712,200 177,504,500 113,676,800 115,617,700

IX Financial Reports


Balance Sheet - Second Account, as of 31 December 2012 (expressed in USD & SDR)

2012 2011 2012 2011

USD USD SDR SDR

ASSETS

Cash and Cash equivalents

Cash in bank 5,479,700 2,710,200 3,565,400 1,765,300

Time Deposits 6,400,000 8,264,300 4,164,200 5,383,000

11,879,700 10,974,500 7,729,600 7,148,300

Investments

Debt Securities 67,086,000 78,083,800 43,649,600 50,860,000

67,086,000 78,083,800 43,649,600 50,860,000

Promissory Notes 6,824,500 6,753,700 4,440,400 4,399,000

Amounts Receivable From Members

Amounts Receivable From Members 408,000 400,500 265,500 260,900

Provision For Overdue Members Capital Subscription -408,000 -400,500 -265,500 -260,900

0 0 0 0

Loans

Deferred Loan Receivable 7,078,600 9,915,200 4,605,800 6,458,300

Current Loan Receivable 883,300 763,300 574,700 497,200

7,961,900 10,678,500 5,180,500 6,955,500

Other Receivables

Accrued Income on Investments 1,295,200 1,430,700 842,700 931,900

Receivable from Dutch Trust Fund 69,700 42,000 45,400 27,400

Receivable from EC Trust Fund 1,934,500 2,768,000 1,258,700 1,802,900

Other Receivables 23,100 21,700 15,000 14,100

3,322,500 4,262,400 2,161,800 2,776,300

Total Assets 97,074,600 110,752,900 63,161,900 72,139,100

LIABILITIES AND EQUITY

Liabilities

Turkey Settlement 234,900 234,900 152,800 153,000

Belgium Settlement 1,846,300 0 1,201,300 0

Payable to Dutch Ministry 313,700 385,200 204,100 250,900

Payable to EU/EC 10,400 649,200 6,800 422,900

Other Payables 92,900 86,600 60,400 56,400

2,498,200 1,355,900 1,625,400 883,200

Capital Subscriptions and Accumulated Surplus

Paid-in-Shares of Directly Contributed Capital 26,256,900 27,898,000 17,084,100 18,171,400

Provision For Overdue Members Capital Subscription -408,000 -400,500 -265,500 -260,900

Accumulated Surplus 65,084,600 77,968,600 42,347,400 50,784,900

Translation Reserve 3,642,900 3,930,900 2,370,500 2,560,500

94,576,400 109,397,000 61,536,500 71,255,900

Total Equity and Liabilities 97,074,600 110,752,900 63,161,900 72,139,100


2012 2011 2012 2011

USD USD SDR SDR

Income

Net Income from Investments 3,960,000 4,218,900 2,585,300 2,672,200

Other Income 44,100 427,400 28,800 270,700

Realized Exchange (loss)/gain on Operations 676,500 793,400 441,700 502,500

Unrealized Exchange (loss)/gain on translation of Balance Sheet items -2,702,300 -1,428,000 -1,783,100 -931,300

Total Income 1,978,300 4,011,700 1,272,700 2,514,100

Expenses

Staff Salaries & Benefits 3,393,800 3,724,500 2,215,600 2,359,000

Operational Expenses 476,200 580,400 310,900 367,600

Meeting Costs 321,900 523,800 210,200 331,800

Premises Costs 468,100 405,500 305,600 256,800

Project Preparation Facility 26,400 -18,700 17,200 -11,800

Advocacy 21,900 70,100 14,300 44,400

Information Dissemination 14,700 8,400 9,600 5,300

Total Expenses 4,723,000 5,294,000 3,083,400 3,353,100

NETT (LOSS)/PROFIT -2,744,700 -1,282,300 -1,810,700 -839,000

Accumulated Surplus as at 1 January 7,858,600 7,634,400 5,118,700 4,957,300

Nett (Loss)/Profit -2,744,700 -1,282,300 -1,810,700 -839,000

Transfer Unrealized Exchange (loss)/gain to Translation Reserve 2,702,300 1,428,000 1,783,100 931,300

Transfer to Net Earnings Program (Advocacy & Information Dissemination) 36,700 78,500 24,000 49,700

Exchange adjustment 0 0 -5,600 19,400

ACCUMULATED SURPLUS AT 31 DECEMBER 7,852,900 7,858,600 5,109,500 5,118,700

Income Statement for the period 1 January to 31 December 2012 - First Account (expressed in USD & SDR)


2012 2011 2012 2011

USD USD SDR SDR

Income

Net Income from Investments 3,331,800 3,737,500 2,175,200 2,367,200

Income from Loans 60,200 155,700 39,300 98,600

Voluntary Contribution in cash 1,798,100 4,005,000 1,173,900 2,536,700

Realized Exchange (loss)/gain on Operations -218,000 -161,200 -142,300 -102,100

Unrealized Exchange (loss)/gain on translation of Balance Sheet items -288,000 -40,600 -190,000 -18,300

Total Income 4,684,100 7,696,400 3,056,100 4,882,100

Expenses

Project Payments 17,856,100 14,025,300 11,666,900 9,234,700

Total Expenses 17,856,100 14,025,300 11,666,900 9,234,700

NETT (LOSS)/PROFIT -13,172,000 -6,328,900 -8,610,800 -4,352,600

Accumulated Surplus as at 1 January 77,968,600 84,256,900 50,784,900 54,711,200

Nett (loss)/profit -13,172,000 -6,328,900 -8,610,800 -4,352,600

Transfer Unrealized Exchange (loss)/gain to Translation Reserve 288,000 40,600 190,000 18,300

Exchange adjustment 0 0 -16,700 408,000

ACCUMULATED SURPLUS AT 31 DECEMBER 65,084,600 77,968,600 42,347,400 50,784,900

Income Statement for the period 1 January to 31 December 2012 - Second Account (expressed in USD & SDR)


Directly Contributed Capital, as at 31 December 2012 (USD)

First Account Second Account

Outstanding Payments Outstanding Payments

Constibutions* Cash Promissory Constributions* Cash Promissory

Notes Notes

Afghanistan 0 399,412 432,729 0 0 0

Algeria 0 862,744 0 0 0 0

Angola 0 61,786 0 0 339,823 482,184

Argentina 0 0 445,060 0 627,603 59,757

Austria 0 900,429 1,013,822 0 0 0

Bangladesh 167,322 95,062 0 0 308,154 412,123

Benin 5,770 344,491 412,123 0 0 0

Bhutan 0 3,424 4,121 0 338,969 408,001

Botswana 5,770 344,491 412,123 0 0 0

Brazil 0 1,692,815 0 0 701,208 0

Bulgaria 877,021 284,202 0 0 0 0

Burkina Faso 5,770 344,491 412,123 0 0 0

Burundi 0 34,239 41,212 0 308,154 370,910

Cameroon 0 990,853 0 0 0 0

Cape Verde 0 342,393 412,123 0 0 0

Central African Republic 11,539 346,588 412,123 0 0 0

Chad 17,309 364,254 412,123 0 0 0

China 0 3,807,113 4,578,684 0 0 0

Colombia 0 1,060,568 0 0 0 0

Comoros 0 342,393 412,123 0 0 0

Congo 1,197,793 0 0 0 0 0

Dem.Republic of Congo(zaire) 0 1,213,098 0 0 0 0

Costa Rica 0 833,938 0 0 0 0

Cote d’Ivoire 53 1,273,830 0 0 0 0

Cuba 0 291,399 350,354 107 393,960 348,302

Denmark 0 599,933 471,468 0 718,430 0

Djibouti 0 388,206 412,123 0 0 0

Ecuador 0 126,968 0 0 699,028 0

Egypt 0 616,445 605,821 0 0 0

Equatorial Guinea 0 734,443 0 0 0 0

Ethiopia 46,158 187,975 206,061 0 171,197 206,061

Finland 0 586,004 704,730 0 154,611 30,469

Gabon 359,816 455,118 0 0 0 0

Gambia 11,539 346,588 412,123 0 0 0

Germany 0 5,954,753 7,088,512 0 657,485 114,917

Ghana 0 1,085,935 0 0 0 0

Greece 0 347,901 412,123 0 0 0

Guatemala 0 423,346 0 0 408,621 0

Guinea 28,849 13,911 4,121 0 338,969 408,001

Guinea-Bissau 0 342,393 412,123 0 0 0

Haiti 17,309 348,685 412,123 0 0 0

Honduras 45,334 37,758 0 408,001 339,823 0

India 0 370,828 440,971 0 560,088 106,973

Indonesia 0 449,328 136,001 0 579,573 158,575

Iraq 0 878,501 0 0 0 0

Ireland 0 3,455 4,121 0 615,094 122,826

Italy 0 2,558,455 3,074,436 0 612,520 135,359

Jamaica 0 48,056 57,697 0 612,816 148,124

Kenya 0 906,469 0 0 0 0

Dem. People’s Republic of Korea 857,215 0 0 0 0 0

Republic of Korea 0 517,919 622,305 0 0 0

Kuwait 0 941,579 0 0 0 0

Lao People’s Dem. Republic 0 387,130 416,244 0 0 0

Lesotho 0 342,393 412,123 0 0 0

Luxembourg 0 647,393 0 0 55,150 24,751


Directly Contributed Capital, as at 31 December 2012 (USD)

First Account Second Account

Outstanding Payments Outstanding Payments

Constibutions* Cash Promissory Constributions* Cash Promissory

Notes Notes

Madagascar 0 48,209 0 0 703,374 0

Malawi 17,309 348,685 0 0 0 412,123

Malaysia 0 832,788 1,022,064 0 0 0

Maldives 0 34,239 0 0 308,154 412,123

Mali 17,309 40,531 41,212 0 308,154 370,910

Mauritania 46,158 395,774 412,123 0 0 0

Mexico 0 170,697 0 0 770,650 177,757

Morocco 0 471,279 4,121 0 375,021 152,151

Mozambique 0 439,549 388,673 0 0 0

Myanmar 23,079 342,665 415,420 0 0 0

Nepal 5,770 310,251 370,911 0 34,239 41,212

Netherlands 0 752,209 1,772,128 0 730,118 0

Nicaragua 0 98,166 0 0 653,459 0

Niger 5,770 344,491 0 0 0 412,123

Nigeria 0 124,171 144,243 0 624,220 111,230

Norway 0 347,901 424,486 0 608,489 116,732

Pakistan 0 871,363 0 0 0 0

Papua New Guinea 0 120,151 0 0 699,703 0

Peru 0 1,074,903 0 0 0 0

Philippines 0 614,978 0 0 785,857 0

Portugal 0 171,346 0 0 447,097 121,433

Russian Federation 7,686,089 6,368,048 0 0 0 0

Rwanda 17,309 348,685 412,123 0 0 0

Samoa 0 342,393 412,123 0 0 0

Sao Tome and Principe 0 734,443 0 0 0 0

Saudi Arabia 0 360,373 432,729 0 0 0

Senegal 1,314,084 0 0 0 0 0

Sierra Leone 17,309 348,685 412,123 0 0 0

Singapore 0 227,143 276,122 0 411,896 72,960

Somalia 417,893 344,491 0 0 0 0

Spain 0 2,547,890 0 0 619,883 0

Sri Lanka 0 422,309 511,032 0 0 0

Sudan 138,473 290,011 288,486 0 102,718 123,637

Swaziland 0 94,101 428,606 0 262,885 0

Sweden 0 874,180 1,088,004 0 640,618 117,771

Syrian Arab Republic 0 916,910 0 0 0 0

United Republic of Tanzania 75,006 198,462 206,062 0 171,197 206,061

Thailand 0 485,578 564,608 0 0 0

Togo 0 763,530 0 0 0 0

Trinidad & Tobago 0 680,870 0 0 0 0

Tunisia 0 959,840 0 0 0 0

Uganda 103,855 380,145 412,123 0 0 0

United Arab Emirates 1,174,535 0 0 0 0 0

United Kingdom 0 3,166,031 3,613,648 0 664,193 0

Venezuela 0 878,775 0 0 0 0

Yemen 11,540 688,981 824,245 0 0 0

Zambia 222,992 912,100 0 0 0 0

Zimbabwe 0 725,106 0 0 0 0

TOTAL 14,949,048 68,895,308 40,933,480 408,109 19,463,201 6,385,559

* As stated in Schedule B of the Agreement Establishing the Common Fund for Commodities, Members in the category of least developed countries as

defined by the United Nations shall pay only 30% of the number of shares exceeding 100, over a period of three years. The remaining 70% (of shares

exceeding 100) shall be paid as and when decided by the Executive Board. This remaining 70% is also included in the Outstanding Contributions.


Voluntary Contributions, as at 31 December 2012 (USD)

Payments Cash up Payments Cash

Pledge (3rd 5YAP) to 31 Dec. 2011 2012 Payments Total

Country Currency USD (1) USD USD USD SDR

Austria USD 2,000,000 2,000,000 0 2,000,000 1,301,304

Belgium EUR 3,000,000 3,235,542 0 3,235,542 2,105,212

Cameroon USD 0 7,994 0 7,994 5,201

China USD 2,000,000 1,876,914 119,400 1,996,314 1,298,906

Denmark DKR 2,615,246 794,987 0 794,987 517,260

Ecuador USD 0 45,311 0 45,311 29,482

Finland USD 2,000,000 2,011,089 0 2,011,089 1,308,519

France (3) USD 15,000,000 2,385,648 0 2,385,648 1,552,226

Germany USD 22,549,790 22,549,790 0 22,549,790 14,672,065

India USD 5,000,000 4,589,023 0 4,589,023 2,985,857

Indonesia USD 1,000,000 1,000,201 0 1,000,201 650,782

Ireland USD 250,000 250,000 0 250,000 162,663

Italy USD 15,000,000 14,999,999 0 14,999,999 9,759,778

Japan USD 27,000,000 32,231,940 0 32,231,940 20,971,775

Luxembourg USD 150,000 149,989 0 149,989 97,591

Madagascar USD 8,643 8,616 0 8,616 5,606

Malaysia USD 1,000,000 936,242 63,680 999,922 650,601

Netherlands USD 17,000,000 19,560,207 0 19,560,207 12,726,887

Nigeria USD 150,000 150,000 0 150,000 97,598

Norway USD 22,490,000 21,035,491 1,410,971 22,446,462 14,604,834

OPEC Fund USD 45,400,000 26,400,000 0 26,400,000 17,177,212

Papua New Guinea USD 0 70,055 0 70,055 45,581

Republic of Korea USD 300,000 277,807 21,528 299,335 194,763

Singapore USD 250,000 231,505 18,495 250,000 162,663

Sweden USD 2,345,996 2,247,561 98,435 2,345,996 1,526,427

Switzerland (3) USD 6,000,000 3,000,000 0 3,000,000 1,951,956

Thailand USD 1,000,000 934,364 65,636 1,000,000 650,652

United Kingdom (2) STG 6,881,524 7,399,909 0 7,399,909 4,814,766

200,391,199 170,380,184 1,798,145 172,178,330 112,028,167

(1) Amounts pledges have been converted to USD equivalent using the IMF rates of 31/12/12

(2) Payment of MOU of GBP 4,270,000 received considered as contribution under Article 18.1.(e)

(3) Not a member of CFC

2012 Administrative Budget, Summary

Item Approved Administrative Budget 2012

USD EUR

Staff Costs 3,821,000 2,636,500

Operational Costs 1,108,100 764,600

Meeting Costs 505,700 348,800

Contingency 14,500 10,000

TOTAL 5,449,300 3,759,900


Annex I Governors and Alternate Governors as of 31 December 2012 | 99

Annex I Governors and Alternate Governors as of 31 December 2012

Chairperson of the Governing Council during 2012: H.E. Mr. Sirajuddin Hamid Yousif (Sudan)

Vice-Chairpersons:Africa: Mr. Dauda Kigbu (Nigeria)

Asia and Pacific: H.E. Mr. Buddhi K. Athauda (Sri Lanka)

China: Mr. Fei Li

Latin America and the Caribbean: to be announced

OECD: Ms. Anna Tofftén (Sweden)

Russian Federation: to be announced

Country Governor Alternate Governor

Afghanistan c/o H.E. Mr. Nanguyalai Tarzi

Algeria H.E. Ms. Nassima Baghli

Angola Mr. Sebastião de Sousa e Santos Junior

Argentina Mr. Luis Pablo María Beltramino Ms. Melisa Campitelli Mayor

Austria Mr. Guenther Schoenleitner Mr. Klaus Oehler

Bangladesh Mr. Mahbub Ahmed H.E. Mr. Muhammad Ali Sorcar

Belgium Mr. Pierre Dubuisson

Benin H.E. Mr. Charles Borromée Todjinou Ms. Gladys Marcelle Attiogbe epouse da Silveira

Bhutan H.E. Mr. Daw Penjo Mr. Tenzin Choda

Botswana H.E. Ms. C.T. Modise Mr. Micus Chiwasanee Chimbombi

Brazil Mr. Paulo Estivallet de Mesquita Mr. Ricardo de Souza Monteiro

Bulgaria Mr. Petar Dimitrov

Burkina Faso Ms. Salimata Some-Traoré Mr. Amadou Sagnon

Burundi Ms. Victoire Ndikumana Mr. Emmanuel Niyungeko

Cameroon Mr. Luc Magloire Mbarga Atangana H.E. Ms. Odette Melono

Cape Verde c/o Minister for Foreign Affairs

Central African Republic Mr. Fidèle Gouandjika Mr. Ernest Gothard-Bassebe

Chad Mr. Youssouf Abassallah Mr. Daouda Tabanda

China Mr. Wenliang Yao Mr. Fe LI

Colombia H.E. Mr. Eduardo Pizarro Leon Gómez Ms. Maria Alejandra Páez Gómez

Comoros Mr. Said Mohamed Ali Said

Democratic Republic of Congo c/o Mr. Sébastien Mutomb Mujing

Congo Mr. Juste Benjamin Lekaka

Costa Rica H.E. Mr. Jorge A. Urbina Ortega Mr. Jorge Sauma Aguilar

Côte d’Ivoire Mr. Mamadou Sangafowa Coulibaly Mr. Aly Toure

Cuba Ms. María de la Luz B’Hamel Ramírez Ms. Alina Revilla-Alcazar

Denmark

Djibouti Mr. Ismaël Ali Abane

Ecuador H.E. Mr. Miguel Calahorrano Mr. Arturo Cabrera

Egypt H.E. Mr. Mahmoud Ahmed Samir Samy Ms. Amany Fahmy

Equatorial Guinea c/o H.E. Mr. Vitorino Nka Obiang Maye c/o Director General de Comercio

Ethiopia H.E. Mr. Kassu Yilala Ashame

Finland c/o Ms. Sari Laaksonen

Gabon Mr. Fidèle Mengue M’engouang Mr. Bertrand Rubens Matteya

Gambia H.E. Mr. Mamour Jange Ms. Fatou Mbenga Jallow

Germany Mr. Reinhard Krause Mr. Edgar Gansen

Ghana Mr. Joseph Samuel Annan Mr. Kwado Owusu-Agyeman

Greece Mr. Nikolaos Thomopoulos Ms. Stella S. Papoutsi

Guatemala H.E. Mr. Eduardo Sperisen Yurt Ms. Mónica Guerra Garrido

Guinea Hadja Zénab Diallo Mr. Mohamed Camara



Guinea-Bissau c/o Embassy of Guinea-Bissau

Haiti Mr. Wilson Laleau

Honduras Mr. Héctor Hernández Amador Mr. José Adalberto Sorto

India Mr. J.S. Deepak Mr. Asit Tripathy

Indonesia Amb. Hasan Kleib Mr. Andin Hadiyanto

Iraq Mr. Hashim Mohammed Hatem Mr. Mwafak Taha Izulddin

Ireland H.E. Ms. Mary Whelan

Italy Ms. Giuseppina Zarra Ms. Laura Calligaro

Jamaica c/o Mr. Roger Clarke H.E. Mr. Wayne McCook

Japan Mr. Ryusuke Nakayama Mr. Yutaka Kikuta

Kenya H.E. Ms. Ruthie C. Rono Mr. George Kwanya

Democratic People’s Republic of Korea Mr. An Myong Hun Mr. Sok Jong Myong

the Republic of Korea Mr. Jan-Wan Bahk Mr. Choongsoo Kim

Kuwait c/o H.E. Mr. Hafeez Mohammed Salem Al-Ajmi

Laos Mr. Somvang Ninthavong Mr. Thongphane Savanpheth

Lesotho Mr. Mohlabi Tsekoa H.E. Ms. Mamoruti A. Tiheli

Luxembourg H.E. Mr. Pierre-Louis Lorenz Mr. Sergej Hentzig

Madagascar H.E. Mr. Albert Camille Vital Mr. Eric Beantanana

Malawi H.E. Ms. Brave R. Ndisale Mr. Joseph Chiteyeye

Malaysia Ms. Nurmala Abdul Rahim Mr. Wan Mazlan Wan Mahmood

Maldives c/o Mr. Abdul Samad Abdulla Mr. Abdulla Salih

Mali H.E. Mr. Ibrahim Bocar BA Mr. Mamadou Macki Traore

Mauritania Mr. Mohamed Ould Hitt Mr. Mohamed Moctar Alaoui

Mexico Mr. Jose Antonio Meade Ambassador Patricia Espinosa Castellano

Morocco c/o Mr. Abdelkarim Ben Sellam Mr. Brahim Bah

Mozambique Ms. Cerina Banú Mussá Mr. Joao José Macaringue

Myanmar Mr. Tin Naing Thein Ms. Myo Nwe

Nepal H.E. Mr. Ram Mani Pokharel c/o Mr. Lakshuman Khanal

the Netherlands Mr. Jaap Smit Mr. Robert-Jan Scheer

Nicaragua Mr. Orlando Solórzano Delgadillo H.E. Mr. Carlos J. Argüello Gómez

Niger Ms. Florentine Pierrette Araoye

Nigeria Mr. Dauda Kigbu H.E. Ms. Nimota Nihinlola Akanbi

Norway Ms. Torun Dramdal Ms. Siri Beate Barry

Pakistan Mr. Zafar Mahmood H.E. Mr. Aizaz Ahmad Chaudhry

Papua New Guinea Mr. Michael Maue Obe

Peru H.E. Mr. Allan Wagner Mr. César Talavera Silva Santisteban

the Philippines H.E. Ms. Lourdes G. Morales Mr. José I. Laquian

Portugal Mr. Vítor Gaspar Mr. Helder Reis

Russian Federation Mr. Juravlev Alexander Gennadievich Mr. Cherevko Alexander Nikolaevich

Rwanda Mr. Emmanuel Hategeka Ms. Peace Basemera

Samoa c/o Deputy Prime Minister

Sao Tome and Principe Minister for Foreign Affairs

Saudi Arabia Mr. Abdulrahman A. Aloraini Mr. Ahmed Al-Teraifi

Senegal H.E. Mr. Amadou Kebe Mr. Amadou Dame Sall

Sierra Leone Mr. Ibrahim Keh Turay

Singapore H.E. Mr. Kwok Fook Seng

Somalia c/o H.E. Mr. Yusuf Mohamed Ismail

Spain Mr. Enrique Fanjul Martin

Sri Lanka Mr. P.D. Fernando H.E. Mr. Buddhi K. Athauda

Sudan H.E. Mr. Sirajuddin Hamid Yousif Mr. Ali El-Sadig Ali Al-Hussien

Swaziland Mr. Andreas M. Hlophe

Sweden Ms. Anna Tofftén

Syrian Arab Republic Mr. Mohammad Ghassan Al-Habbash

the United Republic of Tanzania H.E. Mr. Matern Y. Lumbanga Ms. Joyce Mapunjo

Thailand c/o Mr. Apichart Jongskul Mr. Apichart Jongskul

Togo H.E. Mr. Kodjo Félix Sagbo Ms. Biam Bidinabe Hodjo

Trinidad & Tobago Mr. Vasant Bharath Ms. Edwina Leacock

Tunisia H.E. Mr. Karim Ben Becher Ms. Chiraz Ben Abdallah

Uganda Mr. Fredrick E. Mwesigye Ambassador Mirjam Blaak

Annex I Governors and Alternate Governors as of 31 December 2012 | 101


United Arab Emirates c/o Mr. Eisa Alhammadi

United Kingdom of Great Britain

and Northern Ireland c/o Mr. Jonathan Lingham

Venezuela Mr. Rubén Darío Molina H.E. Ms. Haifa Aissami Madah

Yemen Mr. Mohamed Yahya Saad-Al-Katta’a Mr. Omar G. Al-Soufi

Zambia H.E. Ms. Grace Musonda Mutale Kabwe Mr. Chris C. Mbewe

Zimbabwe Ms. Abigail Shonhiwa H.E. Ms. Mary Margaret Muchada

European Union Mr. Jean Pierre Halkin

COMESA Mr. Sindiso Ndema Ngwenya Mr. E.A. Mohammed

African Union c/o Ms. Tarana Loumabeka

East African Community Amb. Richard Sezibera Ms. Flora Musonda

Caribbean Community (CARICOM) Amb. Irwin LaRocque Ms. Desiree Field-Ridley

Southern African Development Community (SADC) c/o Mr. Tomaz A. Solamão

Andean Community c/o Mr. Adalid Contreras Baspineiro

Union Economique et Monetaire Ouest Africaine

(UEMOA) c/o Mr. Rui Duarte Barros

Economic Community of West African States

(ECOWAS) c/o Mr. James Victor Gbeho

Eurasian Economic Community (EAEC) Mr. Alexander Kasakov Mr. Michael Shishatski


Annex II List of Publications

Bananas• The Banana Improvement Project (BIP), Amsterdam, 2001

(CFC Technical Paper No. 5)

• Banana, Breeding, and Biotechnology (Commodity Advances

through Banana Improvement Project Research, 1994-1998)

Cashew• Regional Meeting on Development of Cashew Nut Exporters

from West Afric. (CFC Technical Paper 23)

• The Cashew Sub-Sector in Eastern and Southern Africa.

Proceedings of a Sub-Regional Workshop held in Maputo,

Mozambique. Amsterdam, 2001 (CFC Technical Paper 19)

• Cashew nut production - handbook.

Cocoa• Collaborative and Participatory Approaches to Cocoa

Variety Improvement (CFC Technical Paper 59)

• The use of molecular biology techniques in search for

varieties resistant to witches broom disease of cocoa

(CFC Technical Paper 55)

• Global approaches to Cocoa germplasm utilization and

conservation. (CFC Technical Paper 50)

Coffee• Rehabilitation of the Coffee Sector: Rwanda. Development of

Washed Processing of Coffee within a Framework of Private

Investment, Amsterdam, 2001 (CFC Technical Paper No. 7)

• Characteristics of the Demand for Robusta Coffee in Europe,

Amsterdam, 2001 (CFC Technical Paper No. 4)

• Study of Marketing and Trading Policies and Systems in

Selected Coffee Producing Countries, with Country Profiles

on: Angola, Cameroon, Democratic Republic of Congo,

Ethiopia Ghana, Guatemala, India, Madagascar and Togo,

Amsterdam, 2000 (CFC Technical Paper No. 3)

• Final report: Integrated management of coffee berry borer.

Cotton • Commercial Standardization of Instrument Testing of Cotton

with particular consideration of Africa (CFC Technical Paper 60)

• Utilisation of Cotton Plant By-produce for Value Added

Products (CFC Technical Paper 58)

• Regional Consultation of Genetically Modified Cotton for

Risk Assessment and Opportunities For Small-Scale Cotton

Growers (CFC Technical Paper 53)

• Cotton Bollworm (CFC Technical Paper 45)

• Sustainable Cotton Production West & Central Africa


• Cotton Facts, 2004 (CFC Technical Paper 25)

• Genome Characterization of Whitefly-transmitted Gemini-

viruses of Cotton and Development of Virus-resistant Plants

through Genetic Engineering and Conventional Breeding.

Faisalabad, Pakistan, 2002 (CFC Technical Paper 22)

• Improvement of the Marketability of Cotton Produced in

Zones Affected by Stickiness. Amsterdam, 2001 (also avail-

able in French and on CD ROM) (CFC Technical Paper 17)

• Integrated Pest Management of the Cotton Boll Weevil

in Argentina, Brazil and Paraguay. Amsterdam, 2002


• Guideline Manual on Integrated Pest Management for

Cotton with a Focus on White Fly and Aphids. Amsterdam,

2000 (also available in French) (CFC Technical Paper No. 11)

• Integrated Pest Management for Cotton with a Focus on

White Fly and Aphids, Amsterdam, 2000 (also available in

French) (CFC Technical Paper No. 10)

Fish • Improving Marketing Efficiency of Artisanal Fishermen in

Central America, Southern Mexico and the Caribbean


• Valorisation of Fishery Products in West Africa. Proceedings

of a Workshop held by the Common Fund for Commodities

in association with the Ministry of Fisheries and Maritime

Economy of Mauritania (CFC Technical Paper 26)

• Manual on Processing, Processing, Packaging and

Presentation of Value-Added Fisherey Products (INFOFISH)

• Tilapia: Production, Marketing and Technological Develop-

ments

Grains/Tubers/Roots• Alternative Uses of Sorghum and Pearl Millet in Asia. Andhra

Pradersh, India, 2003 (CFC Technical Paper 34)

• Utilisation of Regional Germplasm in the Improvement

of Sorghum and Pearl Millet and Improved Post-harvest

Technologies, Amsterdam, 2003 (CFC Technical Paper 28)

• Strengthening Potato Value Chains

Jute• Jute Reinforced Polyolefines for Industrial Applications-

Phase II: Material Optimization and Process Up-scaling

for Commercialization (CFC Technical Paper 54)

• Jute Road Map (CFC Technical Paper 44)

• Jute Geotextile: Techno-Economic Manual, Amsterdam,

1998 (CFC Technical Paper 1)

Annex II List of Publications | 103

Hard Fibres• Symposium on Natural Fibres (CFC Technical Paper 56)

• Coir Building and Packaging Materials (CFC Technical Paper 43)

• Manual for the in Vitro Culture of Agave (CFC Technical

Paper 38)

• Comparative Advantages of Sisal, Coir and Jute Geotextiles.

Amsterdam, 2004 (CFC Technical Paper 31)

• International Coir Convention. Proceedings of a Convention

held by the Food and Agriculture Organization of the United

Nations and the Common Fund for Commodities. Colombo,

Sri Lanka, 2002 (CFC Technical Paper 20)

• Alternative Application for Sisal and Henequen. Amsterdam,


• Sisal: Past Research Results and Present Production Practices

in East Africa, Amsterdam, 2001 (CFC Technical Paper 8)

• Coir Processing, Amsterdam, 2001 (CFC Technical Paper 6)

• Product and Market Development of High Value-added Coir

Products, with Special Reference to Rubberized Coir and

Coir Geotextiles, Amsterdam, 1998 (CFC Technical Paper 2)

Hides and Skins• Commercialisation of hides and skins by improving collec-

tion and quality in small holder farming systems in Botswana,

Malawi, Zambia and Zimbabwe (CFC Technical Paper 52)

• Pre-slaughter Defects of Hides/Skins and Intervention

Options in East Africa: Harnessing the Leather Industry

to Benefit the Poor (CFC Technical Paper 47)

• A Blueprint for the African Leather Industry: a Develop-

ment, Investment and Trade Guide for the Leather Industry

in Africa. Amsterdam, 2004 (Also available in French) (CFC

Technical Paper 30)

Meat and Dairy • The Success story of small holder dairy in Zambia and

Lesotho (CFC Technical Paper 62)

Metals • Zinc Die Casting, Amsterdam, 2002 (CFC Technical Paper 15)

Oilseeds/Oils/Fats• Shea Kernel & Shea Butter in Africa: From Product to Markets


• Coconut Hybrids for small holders (CFC Technical Paper 42)

• Groundnut seed supply systems in West Africa: Current

practices, constraints and opportunities (CFC Technical

Paper 40)

• Market prospects for groundnuts in West Africa (CFC

Technical Paper 39)

• International Workshop on Processing and Marketing of

Shea Products in Africa. Dakar, Sengal, 2002 (CFC Technical

Paper 21)

• Proceedings of the Expert Consultation on Sustainable

Coconut Production through Control of Lethal Yellowing

Disease, held in Kingston, Jamaica. Amsterdam, 2002


• Proceedings of the Final Workshop of the Groundnut

Germplasm Project

Olive• Conservation, characterization, collection & utilization of

the genetic resources in olive (CFC Technical Paper 57)

• Good Practice in Vegetable Water and Compost Spreading on

Agricultural Land: Case of Olive Growing/Technical Manual.

Plants and Herbs• Medicinal Herbs & Plants Scope for Diversified and

Sustainable Extraction (CFC Technical Paper 37)

Rice• Rice Sector Development in East Africa(Soft copy only)

Roots and Tubers • Strengthening Potato Value Chains

Rubber• Blends of Natural Rubber (Novel Techniques for Blending

with Speciality Polymers)

Sugar• Proceedings of the Symposium on Challenges and Opportu-

nities for Organic Sugar, held in Guatemala City. Amsterdam,


• Sugar Factories Surplus Bagasse Utilisation for Co-gen-

eration Processes for Sugar Industries in Eastern Africa,


• Policies for Small-Scale Sugar Cane Growing in Swaziland,


Timber• Cocowood Utilization in the Philippines: A Compilation

of Abstracts (FPRDI/ITTO/CFC Project)

Others• Current trends and the new development role of commodi-

ties - Summary Report - Sept. 2006 (CFC Technical Paper 49)

• Tsunami Regional Consultation Meeting Proceedings (CFC

Technical Paper 48)

• Finance for Small-Scale Commodity Processing: From Micro

to Meso Finance. Amsterdam, 2004 (CFC Technical Paper 32)

• Pilot System of Warehouse Receipts in the Grain Sector,

Samara, Russian Federation. Amsterdam, 2004 (CFC Techni-

cal Paper 27)

• Proceedings of the Workshop on Enhancing Egypt’s Export-

ers: Market Opportunities for Food and Agriculture-led


Commodities. Proceedings of a Workshop held by the

Common Fund for Commodities in collaboration with the

International Executive Service Corps/Center for Business

Support (OESC/CBS). Cairo, Egypt, 2002 (CFC Technical

Paper 24)

• African Dryland Commodity Atlas

• Booming Commodities: Recent Market Changes and

Their Implications for Commodity Dependent Developing

Countries

• Certification of Commodities: Opportunities and challenges

for the rural poor

• Coffee - An exporter’s guide

• Commodity Atlas

• Commodity Markets and Excess Volatility: Sources and Strat-

egies to Reduce Adverse Development Impacts, 2010

• Commodities and Their Common Fund

• Commodity Markets and Excess Volatility: Sources and

Strategies to Reduce Adverse Development Impacts, 2011.

• Dealing with commodity price volatility in developing

countries

• Desarrollo de productos pesqueros de valor agregado

• Enhancing Productive Capacities and Diversification of

Commodities in LDCs and South-South Co-operation

• From Sorghum to Shrimp: A journey through commodity

projects

• Global information system on tropical fruits with special

focus on Africa

• Three dimensional woven bamboo products

• International Seminar on Strengthening of Collaboration for

Jute, Kenaf and Allied Fibres Research & Development, 2012

• Linking Farmers, Extension and Research at Community Level

• Manual de Manipulación y Comercialización de Productos

Pesqueros de la Cuenca Amazónica

• Manual for collaborative research with smallholder coffee

farmers

• Manual on processing and presentation of value-added tuna

products African Drylands Commodity Atlas (English/French)

• Natural enemies, natural allies

• Promoting Beneficial Financial & commodity market

synergies, Brussels, 2011

• Special edition of the ICAC Recorder. Cooperation for

Development: Results and Impacts of Joint ICAC-CFC

Activities. Vol. XXIX No. 4, December 2011. (English, French

and Spanish)

• The Gourmet Coffee Project Vol. I & 2

• UNCTAD Commodity Yearbook 2003 - Annuaire Des

Produits de Base - Vol. 1 and 2

Commodity Issues Series

• Small-scale Mining in Africa: A Case for Sustainable

Livelihood, Amsterdam, November 2008

• Biofuels: Strategic Choices for Commodity Dependent

Developing Countries, Amsterdam, November 2007

• Current Trends and the New Development Role of

Commodities, Amsterdam, November 2006

Conference Proceedings

• Proceedings of the International Seminar: The Role of

Commodities in Development, The Hague, The Netherlands,

14 December 2009

• Round Table Meeting on Commodity Development in Asia

and the Pacific, Nanning, China, 17-21 August 2009

• Round Table Meeting on Commodity Development in in the

Middle-East and Arab Region, Dubai, 24 & 25 August 2008

• Round Table Meeting on Commodity Development in Latin

America and the Caribbean, Peru, 10 - 13 September 2007

• Round Table Meeting on Commodity Development in Africa,

Cameroon 18 - 21 September 2006

• Round Table Meeting on Commodity Development in Asia and

the Pacific, Kuala Limpur, Malaysia 23 - 26 November, 2004

• Proceedings on the Joint UNCTAD/CFC Workshop on

Enhancing Productive Capacities and Diversification of

Commodities in LDCs and South-South Co-operation,

22 - 23 March 2004

• Commodity Development in Latin America and the

Caribbean, Havana, Cuba, 17 - 20 November, 2003 (Available

in English & Spanish)

• Commodity Development in Africa, Burkina Faso, (Available

English & French), 18 - 21 November, 2002

• Commodity Development in Asia and the Pacific Region,

Kochi, India, 19 - 21 November, 2001

• Proceedings on Structured Short and Medium Term Finance

to Small-Scale Farmers, 4 - 6 April, 2001

• En busqueda de soluciones a la crisis del café en centroamé-

rica, el caribe, México Y colombia - Guatemala (Spanish only)

Cover photos:

Above: A farmer woman using a magnifying glass to check rice reeds for insects in Kodith, Senegal. Photo: ©FAO/Olivier Asselin / FAO

Below: Bean varieties on sale at a roadside market place in Ouagadougou, Burkina Faso. Photo: ©FAO/Alessandra Benedetti / FAO

© 2013 - Common Fund for Commodities

The contents of this report may not be reproduced, stored in a data

retrieval system or transmitted in any form or by any means without

prior written permission of the Common Fund for Commodities,

except that reasonable extracts may be made for the purpose of

comment or review provided that Common Fund for Commodities

is acknowledged as the source. Common Fund for Commodities

Visiting Address

Stadhouderskade 55

1072 AB Amsterdam

The Netherlands

Postal Address

P.O. Box 74656, 1070 BR Amsterdam

The Netherlands

t +31 (0)20 575 4949

f +31 (0)20 676 0231

tx 12331 cfc nl

e [email protected]

i www.common-fund.org

Editor

Royal Tropical Institute, Amsterdam

Graphic Design

Anita Simons, symsign, Amersfoort

Printing

High Trade, Zwolle

Annual Report 2012



Mission & Vision Statement

Mission

“To contribute to poverty alleviation by strengthening the income-generating capacity of

commodity producers and mitigating vulnerability to their economic well being”

Vision

“To strengthen and diversify the commodity sector in developing countries and transform it to

be a major contributor to poverty alleviation and sustained economic growth and development.”

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CFC Annual Report 2012

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