Azb strawberry ppt

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ENTERPRISE DEVELOPMENT MECIS ECONOMIC JUSTICE COMMUNITY 0F PRACTICE LEARNING WORKSHOP SAIDA, AZERBAIJAN MARCH 17-20, 2014

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Transcript of Azb strawberry ppt

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ENTERPRISE DEVELOPMENTMECIS ECONOMIC JUSTICE COMMUNITY 0F PRACTICE LEARNING WORKSHOP

SAIDA, AZERBAIJAN MARCH 17-20, 2014

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ENGAGING POOR FARMERS IN STRAWBERRY VALUE CHAIN IN AZERBAIJAN

BENEFICIARY NUMBERS (MALE/FEMALE): Total 1700

beneficiaries, 50% female beneficiaries

LOCATION: Central Part of Azerbaijan (Barda, Tartar, Agdam)

STAFF AND PARTNER NAMES: Oxfam staff

PROJECT DURATION: 3 years

YEAR OF IMPLEMENTATION: November 2010 – October 2013

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SECTION I: CONTEXT ANALYSIS

• About the country – Background

Azerbaijan - a nation with a Turkic and majority-Muslim population - regained its independence after the collapse of the Soviet Union in 1991. Despite a 1994 cease-fire, Azerbaijan has yet to resolve its conflict with Armenia over the Azerbaijani Nagorno-Karabakh enclave. Azerbaijan has lost 16% of its territory and must support some 570,000 internally displaced persons as a result of the conflict. Corruption is ubiquitous and the promise of widespread wealth from Azerbaijan's undeveloped petroleum resources remains largely unfulfilled.

• Population: 9 million

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• Geography - Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range

• Literacy: age 15 and over can read and write total population: 97% male: 99% female: 96%

• Capital: Baku

• Refugees and internally displaced persons: IDPs – 570,000 (conflict over Nagorno-Karabakh)

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• What were the problems and what did you try to address? Describe the underlying cause (s) of these problems.

• In rural areas high rate of poverty persists because of neglect of the agricultural sector

• Dysfunctional water management system and soil husbandry, and unregulated input supply chain, unproductive varieties are in the main at the root cause of the barriers that prevent the smallholder vegetable producing sector to profitably compete in the market.

• Information about relevant laws and rules does not reach ordinary farmers

• Lack of access to market information, reliable extension support, proper and affordable storage, and the unavailability of timely credit.

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Vision in Strawberry Value Chain System of out-grower arrangements based on business

models that embed access to improved seedlings, information and advice.

A sustainable hub develops in the Central Regions that make available the more productive strawberry planting materials and advice

Local processors will be incentivised with the development of alternative sourcing by buying from local growers.

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Project Interventions

Strawberry Interventions/Activities

1.Access to more productive strawberry seedlingsIdentifying& work with key players in seedling supplyIdentifying& work with key players in the marketing chainFacilitate seedling sourcing models

2.Access to bulking and marketing servicesTemporary support to a production & marketing activity to demonstrate result & start the momentum goingDevelop bulking / aggregation functionsBuild capacity in coordination functions

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Temporary support to nursery establishment-0.25 ha (project support

70%)

Temporary support to nursery establishment-0.25 ha (project support

70%)

Stakeholder mappingStakeholder mapping

Business Model between processor and contract

farming

Business Model between processor and contract

farming

Facilitating PO establishment (2)

Facilitating PO establishment (2)

Market research-15 traders, 3 Processors were identified as a

potential partner

Market research-15 traders, 3 Processors were identified as a

potential partner

First engagement with right contacts-Irevanli strawberry

growers

First engagement with right contacts-Irevanli strawberry

growers

Linking Irevanli growers to Jalilabad nursery

Linking Irevanli growers to Jalilabad nursery

Exposure Visit to Turkey

Exposure Visit to Turkey

Capacity building by Aktivta

Capacity building by Aktivta

Business Management

Training for the POs

Business Management

Training for the POs

Coordination Meeting of Stakeholders

Coordination Meeting of Stakeholders

Cost-Benefit Analysis of

Future Expansion

Cost-Benefit Analysis of

Future Expansion

Irevanli Nursery functions as a seed supply source)and extension service (gives

training and publishes book )

Irevanli Nursery functions as a seed supply source)and extension service (gives

training and publishes book )

Facilitating linkages between processors and

Irevanli nursery

Facilitating linkages between processors and

Irevanli nursery

Business offer for joint ventures

Business offer for joint ventures

Coordination meeting with stakeholders

Coordination meeting with stakeholders

Open field days –during harvest season (5000 kg)Open field days –during

harvest season (5000 kg)

6 POs operate in

the strawberry

supply chain

6 POs operate in

the strawberry

supply chain

Crowding in of new traders, POs,

markets

Crowding in of new traders, POs,

markets

2 Processors sign interest agreement 2 Processors sign interest agreement

3 Traders enters into Joint venture with 9 farmers-

1.15 ha

3 Traders enters into Joint venture with 9 farmers-

1.15 ha

Stimulating aggregation services

Stimulating aggregation services

Scale up 25 ha

Scale up 25 ha

Irevanli Nursery expands to 0.50

ha

Irevanli Nursery expands to 0.50

ha

Strawberry VC Intervention Logic

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Changes in Who does? Who Pays?

Before Project

Functions Players

Who does Who pays

Supply of Fruit

Farmers (Central Region)(10%)Export- (20%)

Traders,Consumers,Processors

Extension Services

None None

Aggregation services

None None

Initial investment to small farming

None None

After project

Functions Players

Who does Who pays

Supply of seedlings

Irevanli nursery

Farmers,Traders

Supply of fresh Fruit

Farmer(Central Region)(30%)Export(20%)

ProcessorsTradersConsumers

Extension Services

Irevanli Nursery

Farmer

Aggregation services

Irevanli Collection Point

ProcessorsTrader

Initial investment to small farming

Farmers Farmer/Trader/Processor

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Support Functions

• Providing the seedlings of new variety. Nurseriesnprovides quality seedlingsties and fertilisers.

Seedling and

fertilisers providers

Financial Services

Difficulties to access low rate interest loans especially for women farmers. No collateral No referee No insurance. Considered to be high credit risk. MFI offer six months rate

Rules and functions

Poor quality communal services

(gas,water, electricity

Impact of processing

companies: 3 processor is interested to

purchase from small growers

Equal distribution of land & water between men &

women but mainly men decide what to

grow

Low paid work. High profitability from Viktoria affects wages

Waged Workers

80 % women mainly in

harvesting and weeding. Agro service centres

funded by WB not functioning. Some women extension workers. Nurseries function as an extension service

Laws on cooperatives. People working as

cooperatives pay 14% tax but individuals pay 2%.

Disincentive to collective business action. New

cooperative law proposed by Oxfam & partners read

in parliament. 6 POs emerged

Small farmers have limited access to

loans

Technologies

Small/Big Processing

companies/women employees 40%

Wholesalers & traders (10% women) in Baku

main markets & city supermarkets (40% women employees

Irevanli, Seydimli, Gayali, POs

Bazaars & markets in

other Districts (10% women)

Jelilabad & Khachmaz (90% men)

Difficulties in trading.

Advantages of new strawberry make it easy to trade. PO

capacity and power Contacts with traders, POs,

processor and markets

No planning in cultivating the agricultural crops. No Rotation plan. Prognosis

for Bulk and sale for demands and supply

• No good agricultural practice• No access to machinery • Limited condition for soil, water

analyses.fertilizers/modern technology.

• Drip irrigation and new growing methods are being applied for new variety

Lack of trust between

market actors. Joint ventures with contract

basis

Market Information

Agro Information

Services

Lack of contacts (traders/market)-

Contacts with traders, POs,

processor and markets

THE STRAWBERRY CURRENT MARKET MAP

Distributers

No reliable market information sources . Low capacity. Weak relations. Contacts with traders, POs,

processor and markets make the

information accessible

Foreign Suppliers

Traders/retailers in Barda & Ganja bazaars & markets

(40% women)

Smaller markets (10%

women)

Joint trader-farmer venture

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SECTION III: STAKEHOLDER ANALYSIS• Main stakeholders in SMART Farmers Project: strawberry

growing farmers, strawberry nursery, traders, input shops and processing companies

• Establishment of relationships with key actors through:

a. Selection of right contact persons

b. Clear explanation of the project goals

c. Correct business vision

d. Trust building issues among stakeholders (joint venture)

• Most critical stakeholders to our approach to achieving change: farmers and processing companies

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Market level outcomes in Strawberry Value Chain

Economic Impact

3 local traders and 9 small growers (all women) entered into a joint venture (GTE) to open a new cropping area of 0.65 hectare. 344 Farmers (210 of whom are women)have access to quality seeds and adviceProcessors -are ready (with an official agreement) to buy strawberry from smallholdersStrawberry Nursery is functioning already as a seedlings supply source110 HH out of 217 in 4 target communities growing new variety. Overall 110 HH from different districts grow new varietySmall growers directly benefited from increased income – i.e., between 2 to 3 times more compared to the traditional growers and against the baselineThe performance of Irevanli Strawberry Nursery translates to 200% more income compare to traditional growers

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Social Impact

Women waged workers switch to strawberry farming Women make additional income from kitchen garden and this empowers her position within community and on a household level Women enter into negotiation with market actors which enhances their power Small farmers invest to expand their business and becomes an entrepreneur PO encourages community voice with their communication with government agencies to solve community problems (Irevanli PO)Women spend additional income to health and education of themselves and their children Family spend their income to purchasing additional assets like furniture Irevanli Strawberry Nursery purchases new machinery –tractor and engages in additional business

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SECTION V: WHAT WORKED WELL AND WHAT DIDN’T?

• What was particularly successful? Involvement of the not strawberry growing farmers into strawberry business

• What was relatively unsuccessful? Some of the farmers did planting of strawberry without having the analyses of the soil and irrigation water. And due to high water salinity and lack of necessary elements in the soil, they lost their crops (lesson learnt)

• What were the success factors? Three big processing companies with written official letters expressed their interest to buy strawberries from our farmers.

• What approaches or factors constrained your ability to achieve wider change? Lack of access to the reliable agricultural credits made barriers for poor farmers to start their strawberry businesses with drip irrigation systems

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SECTION VI: LEARNING AND RECOMMENDATIONS• How could you change what you are doing in future? Looking through

the lessons learnt from the project and make necessary changes in good way the project can achieve more success in the future

• With the benefit of hindsight, what should you have done differently? Women are not automatically in a position to actively participate and take on a leading role that can be opened as a result of initial interventions. There is a need to include also as a priority some key activities that will inform a more targeted and informed intervention that will facilitate women becoming active and taking on lead roles in making change happen

• What advice would you give to someone facing a similar situation? Use gendered market and household economic mappings as tools to facilitate the identification of interventions that can be better targeted and rightly informed