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Working with Cooperatives and Groups in Root Marketing and Product Development: Lessons earned Kirimi Sindi
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Page 1: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Working with Cooperatives and

Groups in Root Marketing and

Product Development: Lessons

earned

Kirimi Sindi

Page 2: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Constraints of OFSP/Sweetpotato

marketing Perishability

bulkiness

Irregular supply

We have booms and burst

Lack of storage

Lack of awareness of the benefits of OFSP

Tastes and preferences (Majority still prefer white and yellow flesh)

Marketing channels not well developed- weak market linkages

Lack of timely marketing information

Lack well developed OFSP/Sweetpotato facilities and infrastructures

Page 3: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Cooperatives “A cooperative is an autonomous association of persons

united voluntarily to meet their common economic, social

and cultural needs and aspirations through a jointly owned

and democratically controlled enterprise.”

Cooperatives formed by producers, consumers, workers,

businesses and local authorities have demonstrated their

enormous potential in creating decent work opportunities,

empowering people, providing social protection and

alleviating poverty.

Cooperatives bring together over one billion people as

members and maintain 100 million jobs.

They are enterprises that proven their resilience to crisis over

time and so they are important economic, social actors as

well as environmental actors.

Page 4: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Marketing of sweetpotato roots

Started with groups because that is a very

easy way to organize

Easy to train in marketing as well as other

aspects of sweetpotato

Then went to groups, individuals,

cooperatives, and other forms of marketing

Page 5: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Types of groups involved

Farmer groups based on farmers interest in

farming

Commercially oriented groups

Youth groups

Vulnerable members of the societies groups

Page 6: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Sources of the rootsCollective group plots

This is where we started as a sort of demonstration or farmer field school

This is an expensive way of production because of labor is costly

Inputs are a problem because of the tragedy of commons problems

Individual farmers plots but within a group framework

Farmers learn from collective effort then transfer the skills to own farms

Usually more resourced and productive

Individual farmers effort with no group affiliation

These are usually more resourced farmers

Some have a guaranteed market due to better networking

Have more information

Page 7: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Price comparison of different types of

OFSP

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GICUMBI KAYONZA RUHANGO RWAMAGANA

PR

ICE P

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KG

(R

WF/K

G)

DISTRICT

Change of SP Price to Consumer(Price/1kg)

WFSP

YFSP

OFSP

WYFSP

Page 8: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

How long does it to see the OFSP in the market

It is taking at least two seasons for the OFSP to be available in the market which could be a

factor of the amount of OFSP planting material

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GICUMBI KAYONZA RUHANGO RWAMAGANA

PR

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KG

(R

WF/K

G)

DISTRICT

Change of SP Price to Consumer(Price/1kg)

WFSP

YFSP

OFSP

WYFSP

Page 9: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Types of markets

Private Processors

Pro

These provide year round market

Consistently gives good stable prices

Can assist in inputs

Assist in supply chain management

Provide a great incentive for adoption

Cons

Difficult to give a contract

Sometimes can be a source of hold up

May not be very responsible to prices in the market

Page 10: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Type of marketWet/Regular roots markets

This market takes at least 40% of all the roots produced for the market

Pro

Always available

Provides a market for all roots qualities that are discriminated by prices

Utilized by more people

Con

Difficult to reach by some customers particularly medium to upper income earners

Do not discriminate SP in terms of flesh colors

May not use a consistent unit of measure

High price fluctuations

Inconsistent in terms of root quality

There is a lot of room for development in this markets

It is an important driver of OFSP adoption

Opportunity to develop OFSP corners

Page 11: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Types of Markets

Road side market

New concept to brand/build a roadside markets

Pro

If located at a strategic location it will be an important vehicle to build

an OFSP brand and expose the brand to more potential consumers

Provides market for farmers throughout the year

Stable prices

Opportunity to provide more nutrition information

Cons

Can be capital intensive

When new it takes time to build or brand

Takes time to build clientele

Page 12: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Types of market

Specialty markets

High end restaurants, hotels and other institutions

They can also be online businesses

Pro

Provide a very stable market

Provide premium prices for good quality roots

Cons

Requires consistent premium products in terms of quality

Requires better post harvest handling and not all farmers can meet

quality standards

Takes time to develop and grow the market hence takes patience

Page 13: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Product development

Products can be divided into two categories

Raw roots products

Processed products

Page 14: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Raw Roots

Any value addition that makes

the roots more appealing and

convenient

Post harvest sorting

Cleaning

Packaging

Page 15: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Processed products development

Processed products are divided into two

categories

Low level products - that requires minimal cost

in terms of equipment and skills investment

High level products –that requires more

capital and skill investment to produce and

market

Page 16: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Processed products development

Low level products

Pro

Easy to produce in terms of skill required because they are sold in mass

market

They are cheap to produce

Requires minimal marketing skills and costs

Can be produced by just anyone

Even in high level processing these products still drive the processors revenue

Con

Generic products are not easy to brand

Not easy to control quality in terms of nutrition value or hygiene

Easy to copy

Can easily give OFSP a negative image

Page 17: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Processed products development High level products

Pro

When produced and marketed they provide a good roots market for the farmers

They are great for OFSP marketing campaign

Profitable to the processors

Easier to control the quality of the products

Easy to brand for market segmentation

Cons

High capital intensive

Requires lots of Research and Development

Requires proper marketing effort and money

Not easy to manage the whole process for some processors

Requires clear targeting of the consumer segment for each product

This is a product segment that cooperatives have struggled due to the nature of their composition

Page 18: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

What were the sales

From July 2014 to Dec 2015 the project beneficiaries marketed 32,440 Kg of

OFSP roots valued at US $ 10,413.

From July 2014 to June 2015, Urwibutso Enterprises produced OFSP-based

bakery products worth US $ 364,410 and the farmer cooperatives sold

products worth US $ 1,463

Page 19: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

What we have learnt from the

processing work for the market

It takes a lot of capacity building to work with private sector

It take even more capacity building for cooperatives because of the

nature of their membership

Marketing of products at cooperative level is not easy because of their

understanding of business and income flow

Gender is an issue when it comes to processing and marketing of the

product- who captures the benefits (Youth, Women or Men)

It is important for all to be informed

Page 20: Working with Cooperatives in Root Marketing and … › wp-content › uploads › 2016 › 03 › ...2016/03/16  · Cooperatives “A cooperative is an autonomous association of

Take home message

Branding is a key for success

Linkages with the industries is key for adoption and

availability in the market

We the researchers have to be continue the

facilitators role

Research and development should be taken

serious at all times to ensure that these products

are successful


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