ECONOMIC JUSTICE PROGRAMME IN ZAMBIA

Support to Women and Youth Enterprise Development through Market

Systems Strengthening and Private Sector Engagement

(Livingstone Chili Project)

END OF PROJECT REPORT

JUNE 2014 – March 2015

Submitted by Emil van Wyk, ASNAPP-Zambia

Lead Organization: Agribusiness in Sustainable Natural African Plant Products – Zambia

In collaboration with: Rutgers University and ASNAPP-South Africa

I. PROGRAM SUMMARY

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Goal: To contribute towards poverty reduction by improving agriculture markets and market systems for small

scale farmers in Zambia Objectives:

1. Empower Farmer’s Cooperatives and farmer groups, collectively representing their interests to buyers

2. To increase crop production and productivity among participating farmers 3. To ensure small scale farmers have a greater access to a range of markets and buyers 4. To enhance business management skills among farmer cooperatives, famer groups and individual

farmers

Start Date: June 2014 End Date: March 2015 II. ANALYSIS OF IMPLEMENTATION The initial goal of phase II of this project was strengthen the horticulture supply chain for African Birds Eye

Chilli (BEC) and chilli peppers to increase incomes for rural farmers and to contribute to their food security,

through public/private partnerships, science-based approach to the production of high quality produce and

to gain access to markets for high value products and to BEC and other vegetables to build their capacity to

trade within the local and cross border economies.

ASNAPP and Rutgers University successfully upgraded 9.2 ha of land to high tech solar irrigation, replaced 4

hectares of chilli with improved varieties, planted 2 cycles of different types of fresh crops on 3 hectares,

improved production of 2.2 ha existing chilli plantings and linked each of the communities to the best local

and international markets possible. Farmers in four communities are growing chili and other horticultural

crops for sale locally and regionally. Initial post-harvest facilities were also added for the Mambova

community to improve post-harvest handling and to reduce post-harvest losses. The project also supported

the upgrade of irrigation infrastructure on all the communities, helped with support on inputs for increased

production and supply packaging material for marketing purposes. The Kazuni community was successfully

linked to both the communities involved with field production of chillis and with supply contracts for

seedlings to industry leading companies and projects. The community members engaged in the project

achieved sales in total of more than $70, 000 with an outstanding amount of one full production cycle

ready to be harvested in May / June 2015.

Other highlights of phase I include:

Trained 312 farmers (208% of target) in chili production and management;

Trained 1104farmers (730% of target) in conservation farming and eco-friendly farming techniques;

Trained 416 farmers (310 % of target) in marketing and market linkages;

Trained 484 farmers (322% of target) in business management skills;

Trained 320 farmers in gender awareness;

Project managed to include 63 youths (under the age of 24) full time in the project;

Total beneficiaries reached exceed 600 family members;

Managed a MOU between the communities and the leading distribution center (DC) in Livingstone;

Managed a MOU between communities and leading hotels in Livingstone;

Manage a 3 party agreement between communities, Livingstone base DC and the leading DC in Lusaka;

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Successfully introduced several highly nutritional crops on all sites;

Strengthened access to suppliers and agri-dealers with MOU’S between communities and several suppliers;

Managed strong focus on climate change mitigation strategies and introduce solar technology by means of solar pumps for irrigation at all sites;

Garnered tremendous support for the project from traditional leaders and local communities.

Kazuni community maintained a 98% germination rate and proved to deliver high quality seedlings.

The project introduced new advanced breeding lines of chilies developed by Rutgers University. These chilies vary in their hotness (pungency), time of maturity, growth and vigor, intensity of red color (for pigment extraction) and other qualities have been shared with ASNAPP-Zambia for further development to support this project. These new chili lines, which are now available in Africa only in Zambia and as part of this project, can be developed into commercially registered Zambian varieties under the supervision of ASNAPP-Zambia and Rutgers University and in concert with OXFAM with ownership and profits going to the producing communities.

Members of the communities led the business and trade of the community’s products.

This project exceeded the original objectives and generated substantial leveraging in time and resources

from ASNAPP-Zambia and Rutgers University. The project is at a crucial juncture for phase III follow-up. A

third phase will allow for continued work with current growers and an expansion into new communities that

have shown interest in chili production. However, due to previous experience, many of these communities

will not register with the project until they are sure of continued support. In addition, the high quality

African BEC has been noticed by the regional, national and international industry that now wants this

product. Having such a strong market demand for a product allows for careful expansion and strengthening.

Having more than one key buyer mitigates against risk and inadvertent competition between each

community (that is potential price reductions just to sell faster) and allows for communities to set prices

rather than serve as price takers because the product is in such demand. Increased total area supply is

needed to attract more buyers into the region and a phase III would allow that to be initiated which then

fosters longer-term sustainability for the communities.

With funding for phase III, the immediate next steps include training sessions on food safety, harvesting,

postharvest handling such as drying, sorting and grading, packaging, storage, quality control and market

facilitation.

Chili production with new solar energy irrigation in Livingstone

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Objective #1: Empower Farmer’s Cooperatives and farmer groups, collectively representing their interests to buyers Indicator Tracking Table

a. Key Accomplishments ASNAPP has exceeded its targets for business skills training for the project thanks to a visit from Professor Govindasamy from Rutgers University and his “training tour” of the Livingstone area. He, Miss Silvia Mwowo and Christabel Kabole trained the communities of Mambova, Kazuni, Nsongwe, Mapenzi and Mukuni during a one week visit to the area and follow up trainings were done by COP Emil van Wyk and District Manager Muunga Mapenzie. The total number of farmers trained in business skills achieved is 484 (322% of target). More than 60% of the community members trained are women and members younger than 24 years old. Trainings were focused on site specific activities and farmers are now in a position to work cost of production and profit margins. These trainings help them to determine minimum prices of their produce they have to achieve on the market to make a profit. With this information they are able to negotiate better prices from the traders and markets and they can support it with the necessary information.

b. Challenges & Recommendations The weakening of the ZMW against the USD and EUR has influenced the accuracy of crop budgets. Based on enterprise budgeting, Rutgers University Professor Ramu Govindasamy is updating crop budgets for per acre of cabbage, eggplant, large fresh market tomato, onion, green sweet pepper, spinach, lettuce, rape, cauliflower, and Amaranthus with current yields, prices and input costs. The updated budgets will be completed in phase 3 of the project.

High yielding chili fields at Livingstone communities.

Type

Objective 1 Target Actual Female Male % Tg Met

Custom 150 484 300 184 322%

Indicators LIFE OF PROJECT

Empower Farmer’s Cooperatives and farmer groups, col lectively representing

their interests to buyers

Farmers tra ined in bus iness ski l l s and marketing

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2 Objective #2: Increased crop production and productivity among participating farmers

Indicator Tracking Table

a. Key Accomplishments ASNAPP has exceeded its targets for training in increased crop production and productivity for the project thanks to intensive training by Prof Jim Simon and two post graduate students (Rutgers University), the COP Emil van Wyk and District Manager Muunga Mapenzi with 1104 farmers trained (730% of target). Of the farmers trained more than 50% are women and more than 40% are under the age of 24 years old. The introduction of solar for irrigation on all the sites is a major achievement for the project. This not only reduces the cost on operation dramatically (K500 saving per week on fuel per community) but also makes it more effective and easy to irrigate the fields. Crop specific training manuals compiled by ASNAPP in concert with Rutgers University, were handed out during the training sessions to the communities and communities can use it in future as production guides on all major crops. b. Challenges & Recommendations ASNAPP were overwhelmed by the amount of community members attending the training sessions yet the current budget didn’t allow for more trainings, and follow-up meetings. Nor did we have the budget to print and provide to growers all our developed training manuals. Follow up training will be needed on some crops not under production at this stage.

Cabbage Livingstone.

Type

Objective 2 Target Actual Female Male % Tg Met

Custom 150 312 210 102 208%

Custom 10 12 120%

Custom 150 1104 559 545 730%

Indicators LIFE OF PROJECT

Increased crop production and productivi ty among participating farmers

Farmers tra ined in crop production and management

To compi le Crop tra ining manuals .

Farmers tra ined in conservation- and eco-friendly farming techniques

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Chili garden Livingstone

Newly established cabbage fields Livingstone

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3 Objective #3: Small scale farmers have a greater access to a range of markets and buyers

Indicator Tracking Table

a. Key Accomplishments ASNAPP focused in phase 2 mainly on marketing, market training and linkages to existing market outlets for the fresh produce from community sites. The major challenge with any community project is post-harvest handling, food safety, packaging and transport. ASNAPP successfully linked all the communities to the leading marketing company in Livingstone, ZambonaChoice, with a MOU in which ZambonaChoice is committing themselves for the following actions:

- Product collection at all sites with the assistance of ASNAPP; - Post-harvest handling and training to members with the inputs from ASNAPP and Rutgers; - To introduce the principles of a distribution center (DC) to the communities by means of

participating training sessions in food safety and packaging; - Fixed price orders and grading for different clients; - Market standards and price influence on quality; - Data collection on production and sales (with Rutgers inputs).

ZambonaChoice delivers fresh produce to all major hotels, lodges and supermarkets in Livingstone. Furthermore ASNAPP linked ZambonaChoice to Fruit&Veg in Lusaka for overflow or over supply of any given product in the Livingstone market. This agreement opens a total new market to the communities and also helps them with their challenges on transport to the markets outside Livingstone. We are proud of facilitating such an arrangement as ZambonaChoice is well respected, will provide fair prices in a transparent manner and will provide to the communities the transportation and logistical assistance that they themselves identified as a need. ASNAPP also lead the renewed agreement with Sun International Hotel and all the communities as a niche market for selected produce. This is a small high end market exclusive for the Oxfam project communities. ASNAPP linked the communities to the David Livingstone Hotel (via discussions and meetings between ASNAPP Country director and PI Emil Van Wyk and Rutgers Prof. Simon with Head Chef and Purchasing Officer) and this new agreement will be signed and represent another high-end market. This new agreement will be activated in phase III of the project. ASNAPP assisted the communities on the existing informal market established the past two years by means of crop margin information and minimum price establishments where all the communities commit to participating. This prevents the traders to play the communities off against each other for lower prices. b. Challenges & Recommendations ASNAPP supported Lumuno in the application of an USAID TradeHub grant which was successful for the upgrading of their facility and equipment to the value of $100 000. Unfortunately, Lumuno wanted to focus on a volume driven price, which is too low for our communities. Unfortunately, Lumuno also ordered fresh vegetable produce from these communities but then refused to collect the produce. ASNAPP is currently negotiating with them on solving the relationship with the communities.

Type

Objective 3 Target Actual Female Male % Tg Met

Custom 1 1 100%

Custom 3 5 167%

Custom 150 466 341 125 310%

Market survey conducted

Market relationships with the private sector brokered by the project partners

Farmers tra ined in marketing and market l inkages faci l i tation

Indicators LIFE OF PROJECT

Smal l sca le farmers have a greater access to a range of markets and buyers

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Objective #4: To enhance business management skills among farmer cooperatives, famer groups and individual

farmers

Indicator Tracking Table

a. Key Accomplishments

ASNAPP has exceeded its targets for training in business skills and marketing for the project thanks to intensive training by Prof Ramu Govendasamy (Rutgers University), the COP Emil van Wyk and District Manager Muunga Mapenzi with 484 farmers trained (322% of target). Of the farmers trained more than 60% are women and more than 40% are under the age of 24 years old

b. Challenges & Recommendations

Follow training on negotiation skills and the understanding of the influence of quality and consistent supply will be needed in the near future.

PROJECT IMPLEMENTATION NOTES In addition, ASNAPP-Zambia in concert with Rutgers University has made a short documentary film (by Rutgers students and digital filmmaking staff) on this project to highlight the work by OXFAM and the grower’s success when such an opportunity can be introduced into their community. This documentary seeks to illustrate how agriculture can be effectively used to generate income, improve health and nutrition of a community and importantly provide hope and inspiration to the members of the community that they can be engaged in commercial horticulture and agriculture and earn monies that can be used as per their needs and choices (e.g. payment of school fees and more). ASNAPP also achieve the following inputs on training:

Type

Objective 4 Target Actual Female Male % Tg Met

Custom 150 484 300 184 322%

Custom 150 180 120%

Farmers tra ined in bus iness ski l l s and marketing

Training manuals for farmers on bus iness ski l l s and entrepreneurship

Indicators LIFE OF PROJECT

To enhance bus iness management ski l l s among farmer cooperatives , famer

groups and individual farmers

Type

Additional tra ining in support of the project Target Actual Female Male % Tg Met

Custom 150 351 145 206 %

Custom 15 27 18 9 %

Custom 150 351 145 206 %

Custom 150 183 98 85 %

Custom 150 320 228 92 %

Custom 150 414 186 228 %

Custom 15 16 12 4 %

Custom 35 48 37 11 %

Custom 150 175 133 42 %

Custom 150 192 152 40 %

Custom 150 220 156 64 %

Custom 150 175 133 42 %

Indicators LIFE OF PROJECT

Good agricultura l practises

Research and gross margin analys is

Nursery management

Water harvesting and drip i rrigation management

Soi l Management

Gender tra ining

Post harvest tra ining

Field exposure vis i t

Chemical handel ing

Solar pump operation and maintanance

Value Chain anal isys and management

Marketing and va lue chain relationship

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Production data

Sales data

PHASE 3 PROJECT PROPOSAL :

ASNAPP propose the following activities in Phase 3:

Expand Mambova with 4 hectare to include more members of the community. This will prevent

jealousy in the community and will also utilize the market demand;

Increase production by replacing the old plantings in early September 2015;

Strengthen markets with higher volume;

Support the distribution center in the form of support on training, packaging material and food

safety accreditation (Global Gap);

Increase cop budgets and gross margins to all produce under production and according market

demand;

Continue production support on training;

Include other programs operating in the province to address HIV infection concerns in the

implementing communities;

Target more youth to participate in the project.

Reimburse ASNAPP for bridging to project from March 2015 until now.

Community Onion Tomato Beans Cabbage chili Maize OtherTotal by Community

Mambova 460 156 88 1240 3200 1380 1800 9324 kg

Nsongwe 555 287 904 1720 1500 1780 3200 9946 kg

Kazuni 10000 17000 0 110000 80000 0 45000 262000 Seedlings

Community Onion Tomato Beans Cabbage chili Maize Other

Mambova 1610 639 238 2560 80000 15300 4800 105147 K

Nsongwe 1998 1176 3082 3440 29500 12800 7680 59676 K

Kazuni 10000 5100 0 16500 32000 0 9000 72600 K

TOTAL 13608 6915 3320 22500 141500 28100 21480 237423 K

Total by Community

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LIVINGSTONE CHILLI PROJECT

Financial Report - As at 31st March 2015Budget Amount -

ZMW

Actual Spend

ZMW

Variance (Actual

Vs Budget) ZMW

A Project Activities

1 Empower Farmers Cooperatives and farmer groups.

1.1 Review and update the baseline survey 53 682.25 51 469.80 (2 212.45)

1.2 Establish market linkages & Procure Buyers for diferent Market Segments 20 130.85 19 021.45 (1 109.40)

73 813.10 70 491.25 (3 321.85)

2 To increase crop production and productivity among farmers

2.1 Post Harvest Management 111 726.19 109 831.45 (1 894.74)

2.2 Support to Production of other Income Generating crops 496 560.85 496 246.77 (314.08)

2.3 Programme Support staff Costs & other related costs 253 111.83 252 932.21 (179.62)

2.4 Project Monitoring & Evaluation 110 115.72 108 978.94 (1 136.78)

971 514.60 967 989.37 (3 525.23)

3 To ensure small farmers have a greater access to a range of markets

3.1 Tranings of farmer 230 farmers 61 734.59 65 660.00 3 925.41

61 734.59 65 660.00 3 925.41

4 To enchance business management skills among farmers

4.1 Tranings of farmer 300 farmers 40 261.69 29 182.90 (11 078.79)

40 261.69 29 182.90 (11 078.79)

1 147 323.98 1 133 323.52 (14 000.46)

B ADMINISTARTION COSTS/OVERHEAD

Staff costs (CD &FAM 20% Contribution) 154 538.00 164 361.61 9 823.61

Communication (Livingstone & Lusaka) 7 045.79 18 665.62 11 619.83

Rent (Livingstone Office) 3 522.89 5 099.81 1 576.92

Stationery 1 644.01 1 643.58 (0.43)

Repairs and maintenance 2 583.45 2 583.20 (0.25)

Computer and laptops 23 754.50 15 586.00 (8 168.50)

Other Administration costs (Rutgers) 135 901.38 134 917.96 (983.42)

328 990.02 342 857.78 13 867.76

1 476 314.00 1 476 181.30 (132.70)

TOTAL ADMINISTRATION COSTS

GRAND TOTAL

Activity Description

Sub-total- Objective 1

Sub-total- Objective 2

Sub-total- Objective 3

Sub-total- Objective 4

TOTAL PROJECT ACTIVITIES COSTS