Proposal for a joint project of Fair Planet and KKL-JNF An implementation plan for the Seeds of Hope Project

New Economic Opportunities for Smallholder Farmers in Ethiopia

- Volunteers Leading Change -

Contact: Dr. Shoshan Haran: Tel +972-54-5656341 shoshan@fairplanetseeds.com

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TABLE OF CONTENTS

A. EXECUTIVE SUMMARY ....................................................................................................... 3

B. TECHNICAL INFORMATION ................................................................................................ 5

1. PROBLEM DEFINITION .................................................................................................................................................. 5

2. BACKGROUND ............................................................................................................................................................. 5

Agriculture and climate diversity ....................................................................................................................... 5

Food and Nutrition Insecurity ............................................................................................................................ 5

Resilient high quality vegetable seeds are inaccessible to smallholder farmers ............................................... 6

C. GOAL STATEMENT AND OBJECTIVES .................................................................................. 6

1. PROJECT OBJECTIVES:.................................................................................................................................................... 6

2. RESEARCH STATUS AND RESULTS TO DATE ........................................................................................................................ 6

Project 1 - Butajira ............................................................................................................................................. 7

Project 2 - Haramaya University highlands ....................................................................................................... 7

Project 3 - Haramaya University lowlands (Dire Dawa site) .............................................................................. 8

3. SINGLE FARMER BUSINESS CASE .................................................................................................................................. 8

D. DEVELOPING PROTOTYPE TRAINING PROGRAMS ............................................................. 10

E. PARTNERSHIP STRUCTURE ............................................................................................... 11

F. FUTURE PROSPECTS ........................................................................................................ 12

G. VOLUNTEERS LEADING CHANGE ...................................................................................... 13

H. BUDGET BREAKDOWN ..................................................................................................... 14

PROPRIETARY 3

A. EXECUTIVE SUMMARY

The African continent has been plagued for years by a cycle of poverty and hunger and many humanitarian

aid projects have failed to permanently address this situation. We believe that poor crop varieties and

inadequate agricultural practices are at the root of the problem. Several International seed companies have

graciously responded to our request and are offering Fair Planet access to their seeds and know-how, to

fulfill both requirements. These seed companies have developed a vast collection of crop varieties suited

for diverse agricultural and climatic conditions and provide them for our evaluation and introduction to the

hunger stricken countries of Sub Saharan Africa.

Fair Planet and KKL-JNF are engaged in the Seeds of Hope Project aimed at increasing food production and

providing new economic opportunities for smallholder farmers in the Eastern part of Ethiopia. The project,

in collaboration with Haramaya University, one of the biggest agricultural universities in Ethiopia, is

focusing on the research phase of performing professional variety trials in order to identify tomato varieties

that are best suited to the needs of Eastern Ethiopia's smallholder farmers. Access to these varieties,

combined with advanced agro-technical practices will enable local farmers to significantly increase their

crop yields with minimal changes in their production technologies.

We are proposing to expand the Fair Planet and KKL-JNF collaboration by initiating 2 new programs: (a)

New Economic Opportunities program that will implement the research results of the Seeds of Hope

project and (b) Volunteers Leading Change program that will enlist the help of Jewish volunteers from all

over the world to join our efforts to alleviate hunger and improve the livelihoods of the Ethiopian people.

In the New Economic Opportunities project we will initiate training programs that will be based on the

'Train the Trainers' concept: Fair Planet experts will train local experts who will then train local development

agents and smallholder farmers how to maximize their economic benefits from high quality seeds. In

addition, we shall expand our current collaboration with KKL-JNF to the Central-Southern part of Ethiopia,

where Fair Planet is operating a project since September 2012. This project is located in Butajira within rural

communities that live in a different agro-climatic zone than that of Haramaya. Expanding the cooperation

to this region will scale the impact of the KKL-JNF and Fair Planet program.

Within the New Economic Opportunities project, we will develop two prototype training programs: one in

Butajira and one in Haramaya. These programs will include introduction of advanced know-how such as

seedling production, improved agro-technical practices, hands-on training and access to the best

performing varieties identified in the Seeds of Hope project. The programs will be managed and operated

by agriculture and training experts and employ local labor. Program results and impact will be monitored

and assessed in order to determine the program’s economic impact.

A centerpiece of the Fair Planet's activity is the role of volunteers who spend three months each at the

project locations, managing the demonstration fields and helping the local farmers to improve their

agricultural practices. More than twenty volunteers have participated in the project to date, all from Israel.

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We are proposing to add an important layer to the New Economic Opportunities program and expand it by

creating the Volunteers Leading Change program. In this program, we will invite young Jewish people from

communities all over the world to participate in our efforts to help the poor smallholder farmers, and

improve their families’ livelihoods. Our mission to empower the most vulnerable people is rooted in the

Jewish value of social justice "Tikkun Olam"- healing our world. This project will create meaningful social

change and will certainly help shed a positive light on Israel and the Jewish people.

The proposed cooperation will operate as follows:

Fair Planet will operate the New Economic Opportunities project with the help of the Volunteers Leading

Change participants. The program will include development of the 2 prototype training programs for

capacity building of local experts at Haramaya and Butajira; management of demonstration plots, provision

of seedlings and extension services to trained farmers, evaluation of crop performance in farmers' fields,

performing baseline and market research and assessment of the economic impact.

KKL-JNF will contribute by participating in funding the 2 programs in the total amount of 266 K $ for 2 years,

which includes the cost of the New Economic Opportunities project at 124 K$, and the cost of the Volunteers

Leading Change program at 142 K$*. In addition, KKL-JNF will contribute know-how and expertise in

seedling production, nursery operation and extension services; KKL-JNF will also help to recruit

international Jewish volunteers, leveraging from the organization’s extensive international network and

links to the Jewish communities world-wide. KKL will benefit from doing good on an international level and

receive appreciation of their contribution.

KKL-JNF donors will gain an effective and tremendous return on their contribution by providing aid that

improves food security, allows sustainable economic growth and provides new economic opportunities to

smallholder farmers in Ethiopia. Their contribution will enable Israeli experts and Jewish volunteers to use

the Israeli experience that transformed Israel from a country with limited resources and revolutionized it

into an agricultural phenomenon, and spread this revolution to food-deprived people.

Future prospects Following the current 2 years proposal and the development of proven methodologies for capacity building,

the program will focus on scaling up the training programs, implementing and operating mass training

programs. The operational heart of the mass training centers will be professional nurseries that will be

established with the help and expertise of KKL-JNF.

* Budget breakdown is presented on page 14

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B. TECHNICAL INFORMATION

1. Problem Definition Smallholder farmers in Ethiopia are using low-quality or farm saved degenerated vegetable seeds which

lead to poor crop performance, low quality produce, significant post-harvest losses and poor market

potential, which ultimately keep them in a static unchanged low economic position. In the last decades,

international seed companies developed hundreds of resilient high quality vegetable varieties for almost

any climate condition in the world. These excellent and highly productive varieties are not accessible to

poor African smallholder farmers.

In the Seeds of Hope project, Fair Planet received seeds from leading seed companies, and identified tomato

varieties with high yield, disease resistances, and improved shelf-life, that yielded more than 5 fold the

Ethiopian national tomato yield. However, without transfer of know-how and capacity building for local

farmers, these farmers will not be able to benefit from the improved varieties. The New Economic

Opportunities program will focus on implementing the results of the Seeds of Hope Project and will offer an

opportunity for Ethiopian smallholder farmers to improve their techniques and crop production

performances, link them to high-end markets and increase their profitability.

2. Background

Agriculture and climate diversity Ethiopia, a country of 90 million people with more than 10 million smallholder farmers, is characterized by

a wide range of agro-climatic conditions with diverse cultural and farming practices. Agriculture is the basis

for the country's entire socioeconomic structure and has a major influence on all other economic sectors

and development processes. It provides about 80 percent of the total employment. Farming systems at

smallholder farmers' fields are traditional and managed with simple production technologies. Traditionally,

farmers use farm saved seeds and also exchange these seeds through traditionally established networking.

These are some of the reasons why crop production has not been able to keep up with the rate of

population growth.

Food and Nutrition Insecurity Much of the rural population in Ethiopia lives in a state of chronic food shortage and nutrition insecurity.

Recurrent droughts, degradation of natural resources and rapid population growth are among the main

causes of declining per capita food production. Several times over the past 30 years, precarious food

security has tipped over into full-blown famine. Vegetable consumption is very low compared to world

average, leading to poor nutrition and low vitamin consumption (see below sample FAO STAT data).

Country

Onions Tomatoes

Kg/Capita/Year % of world's

average Kg/Capita/Year

% of world's

average

Ethiopia 1.9 19% 0.40 2%

World Average 9.9 20.50

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Resilient high quality vegetable seeds are inaccessible to smallholder farmers Global leading seed companies have developed cutting-edge know-how and genetic resources to accelerate

the breeding of new and improved varieties suitable for specific geographical conditions worldwide. The

companies have already invested hundreds of millions of dollars in R&D costs required for developing these

resilient varieties, some of which will suit the specific local conditions and market preferences of the various

agro-climatic conditions in Ethiopia. However, existing hybrid varieties with suitable traits such as disease

resistances, drought tolerance and improved shelf-life, remain out of reach of the smallholder farmer in

Ethiopia. Experience from other developing countries teaches us that when smallholder farmers have

access to improved varieties suitable for their needs and the agro-technical know-how, they prefer to

purchase the high-quality seeds due to their added economic value, and profitability potential.

C. GOAL STATEMENT AND OBJECTIVES

The goal of this project is to increase food production and provide new economic opportunities for

smallholder farmers in Ethiopia, by providing agro-technical training along with affordable seeds of high

quality vegetable varieties and improved irrigation practices. Access to high-quality seeds suitable for local

conditions combined with advanced crop management practices (such as seedling production, plant

protection, drip irrigation and fertilization regimes) will enable these farmers to grow and sell significantly

higher yields of better quality. This will allow greater food security and improved nutrition for the rural and

urban communities along with additional income to smallholder farmers, making vegetable production an

effective and sustainable aid tool that leads to sustainable economic growth of the rural community.

1. Project objectives: a) Develop and implement 2 prototype training programs together with the local partners and initiate

training on a small scale. The training programs will include demonstration of advanced crop

management, hands-on training, provision of high quality seeds to farmers with credit and links to

market information. Program results and impact will be monitored and assessed in order to

determine the economic impact of the program on trained farmers.

b) Perform baseline research to identify vegetable demand areas in Ethiopia and market preferences

for specific crops, and acquire knowledge of the agribusiness value chain.

c) Transfer training methodology to local trainers for capacity building.

2. Research Status and Results to Date Fair Planet is currently operating 3 research projects in Ethiopia (see illustrative map below).

Haramaya Butajira

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Our partners are KKL-JNF, global Seed companies (Syngenta, Limagrain, Enza Zaden, East-West Seed),

Netafim (irrigation solution supplier), Haramaya University, Masahav-USAID and the Ethiopian Ministry of

Agriculture. In Butajira, located in the South Central part of Ethiopia, we have completed variety trials,

validation trials and initial tests in farmers' fields. In the Harar region, located in the Eastern part of Ethiopia,

we have completed the first cycle of tomato variety trials in Haramaya highlands and we are performing

variety trials in the lowlands of Dire Dawa. Each of the 3 project locations represents another agro-climatic

region.

Project 1 - Butajira Butajira is the capital town of the Meskan-Mareko municipality, with 22,000 smallholder farmers. In the

first season we have demonstrated that with the use of professional seeds and accessible improved crop

management practices, the local farmers will be able to significantly increase their household's income. We

have also demonstrated the advantages of using Netafim drip irrigation kits for smallholder farmers, where

applicable. Better crop performance will result in higher yield, larger fruits of better quality, improved shelf-

life, higher prices in the markets and ultimately in higher net return for the smallholder farmer.

Our results from Butajira are presented in the following graph.

Project 2 - Haramaya University highlands Haramaya University is one of the biggest agricultural universities in Ethiopia (15,000 students on campus).

Haramaya is located in a rural region with more than 60,000 smallholder farmers in its vicinity. Fair Planet

has established strategic collaboration with the University since 2013. Tomato variety trials were conducted

using in-furrow irrigation. Planting was done on Jan. 21st 2014 and we held an open day with KKL-JNF at

Haramaya University on May 2014 (see pictures below). The results of these trials indicated the best

varieties for this agro-climatic region.

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Project 3 - Haramaya University lowlands (Dire Dawa site) The Dire Dawa lowland region is characterized by arid conditions and high incidence of the Tomato virus

TYLCV. Therefore we are seeking to identify varieties that are drought tolerant and resistant to the virus.

Transplanting was done on September 17th 2014. Due to shortage of water and light soil composition,

irrigation is performed using low pressure drip system supplied by Netafim (see pictures below).

Open Day with KKL-JNF at Haramaya Univ. 1.5.2014 (left) Field view at Dire Dawa – 30.11.2014 (right)

3. Single farmer business case Production of vegetables by smallholder farmers in Ethiopia is mainly for subsistence. Those growing

surplus for local marketing are generally achieving low yields with low fruit quality, thus resulting in low

income. The typical income from a 1,000 m2 vegetable plot (based on data collected by Fair Planet in

Ethiopia in the past three years) is demonstrated in the figure below.

Farmers use low quality seeds and low levels of inputs, thus generating very little income. By improving

agro-technology and supplying farmers with high quality varieties, we could demonstrate X5 yield

improvement and X2 market price due to higher quality, leading to income elevation (see figure below,

based on preliminary work with local tomato growers in 2013-2014).

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The above results were achieved at the local market, with almost no marketing costs. We estimate that

marketing the same crop to high-end markets, could generate further income as demonstrated below

(based on actual figures from Ethiopian high-end markets collected by Fair Planet).

Local markets at Dire Dawa (left) and Butajira (right)

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D. DEVELOPING PROTOTYPE TRAINING PROGRAMS

The objective of the training program is capacity building for local researchers, trainers, development agents

and extension specialists by transferring training and crop demonstration methodologies. Capacity building

for local farmers will focus on introduction of advanced agricultural practices (such as seedling production,

improved irrigation regimes, drip systems, fertilization, crop protection, sanitation, crop rotation) along with

hands-on training.

The success of any training and capacity building program is greatly dependent on particular cultural

characteristics, especially when targeting smallholder farmers in the rural regions of the country, who

largely lack formal education. The program will offer a strong combination of training and knowledge

transfer alongside practical hands-on implementation support, paired with business training, to drive an

economic boost for the smallholder farmers. The project is operating in collaboration with two different

types of local partners: Agricultural University (Haramaya) and Governmental Center for agricultural

development (Butajira). We plan to initiate training activities on a small scale that will allow us in the next

phase, following the current 2 years proposal, to scale up the training programs, implement and operate

them as mass training programs.

Prototype A - In Butajira, the training program will start in 2015 and will be hosted and operated within

the Center for Agricultural Development established by the Ministry of Agriculture –USAID-MASHAV.

Government Development Agents (DAs) and extension experts will be our partners for the training,

extension and capacity building phase.

Prototype B - In Haramaya, the training program ‘Train the Trainers’ will start in 2016 and the University

infrastructure will host the training activities. University researchers and personnel as well as regional

DAs and Farmers Training Centers (FTCs) will be our partners for the training, extension and capacity

building phase.

Baseline Research will be performed to determine target communities’ current level of awareness,

behaviors and attitudes and overall livelihood conditions within the wider context of the agricultural

operations of this project. The baseline research will enable us to monitor and assess the impact of the

program.

Monitoring and Evaluation

During the project we will collect data on the level of implementation and the economic impact on

implementing farmers.

The evaluation will include the following parameters:

a) Yield performance of the recommended varieties grown by local smallholder farmers in their own plots.

b) Level of implementation of agricultural practices and costs of ag-inputs for crop production. c) Data on actual farmers’ sales (yield x price) will be collected using questionnaires.

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d) Potential income and profit increase will be calculated based on the average vegetable prices in relevant accessible markets and actual costs incurred.

e) Know-how transfer and training effectiveness will be assessed and the implementation rate of the recommended varieties by local farmers will be monitored.

These data will be used to substantiate the hypothesis that better seeds combined with improved

agricultural practices and better market reach, can increase smallholder farmers’ income by more than 7

fold.

Fair Planet trainer – Haim Goldman – meets smallholder farmers in Butajira to provide crop guidance

E. PARTNERSHIP STRUCTURE

The partnership will operate as described below:

Fair Planet will design and implement prototype training programs together with the project local partners

and initiate training on a small scale. The training programs will include (a) capacity building for local trainers

that will enable them to train local smallholder farmers on a mass scale; (b) supply of seedlings to trained

farmers at credit for the first season to allow availability and affordability; (c) connecting smallholder

farmers to markets. Fair Planet will provide agricultural inputs, manage the demonstration plots while

implementing advanced crop management practices, evaluate variety performance in local farmers' fields,

collect data on their production costs and produce sales and assess the economic impact. These activities

will be carried out by Fair Planet experts with the help of volunteers who will reside on-site.

Seed companies: will provide Fair Planet with access to their existing high quality resilient vegetable

varieties and with an initial supply of seeds for trials along with relevant know-how. Seed companies will

receive the results and trial reports related to their varieties, will benefit from positive reputation, will gain

PROPRIETARY 12

access to the Ethiopian seed-market and help it grow. Eventually, seed companies will provide a sustainable

supply of seeds and agricultural inputs to smallholder farmers through their local distributers.

Local Partners: will provide resources for the training programs (land, agricultural equipment and office

facilities), help in developing the training and capacity building programs, provide links to the local farmers,

operate the training programs and assist in connecting the smallholder farmers with market information.

KKL-JNF: will contribute by participating in funding the project for 2 years and will provide know-how and

expertise in seedling production, nursery operation and extension services. In addition, KKL-JNF will help

to recruit international Jewish volunteers, leveraging from the organization’s extensive international

network and links to the Jewish communities world-wide. KKL will benefit from doing good on an

international level and receive appreciation of their contribution.

KKL-JNF donors: will gain effective and tremendous return on their contribution by providing aid that

improves food security, allows sustainable economic growth and provides new economic opportunities to

smallholder farmers in Ethiopia. Their contribution will enable Israeli experts and Jewish volunteers to use

Israeli knowledge, that transformed Israel from a country with limited resources into an agricultural

phenomenon, and spread this revolution to food-deprived people.

Netafim will donate advanced irrigation solutions including demonstration of drip irrigation kits suitable for

smallholder farmers. In return for their contribution, Netafim will gain positive reputation and future

marketing opportunities.

Local Farmers: will gain access to affordable high-quality seeds and advanced crop management solutions

along with market information. These farmers will be able to grow and sell significant yields with gradual

changes in their production technologies. The increased yield and additional income will provide their

families with greater food and nutrition security along with new economic and educational opportunities.

F. FUTURE PROSPECTS

Following the current 2 years proposal and the development of proven methodologies for capacity building,

the program will focus on scaling up the training programs, implementing and operating mass training

programs. The operational heart of the mass training centers will be professional nurseries that will be

established with the help and expertise of KKL-JNF. The nurseries will serve as training hubs and will be

located near vegetable production demonstration plots. These nurseries will produce professional

seedlings and provide training to researchers, development agents and local farmers as well as the supply

of agricultural inputs and assistance in creating links to the markets. These training hubs will support the

economic growth of the surrounding rural communities. Additional vegetable cash crops will be considered

for variety testing, production and marketing evaluation, to diversify smallholder farmers' economic

opportunities.

PROPRIETARY 13

G. VOLUNTEERS LEADING CHANGE

A centerpiece of Fair Planet's activity is the role of volunteers who typically spend three months each at

the project locations, managing the demonstration fields and helping the local farmers to improve their

agricultural practices and productivity. More than twenty volunteers have participated in the project to

date, all from Israel.

In the Volunteers Leading Change proposal we plan to expand the scope of the volunteering program by

offering Jewish youth from around the world a chance to participate in the program through a KKL grant.

This will enable them to "do good", while interacting with Israeli youth, thus learning about Israel through

an Israeli project in Ethiopia. The program will offer 3-6 months volunteering periods in one of Fair Planet’s

projects in Ethiopia, in a group of four – two volunteers from Israel and two volunteers from abroad. The

program will include working in the project as well as joint field trips in Ethiopia. The program will include

18 international volunteers in 2015 in 3 locations, and 24 international volunteers in 2016 in 4 locations. A

similar number of Israeli volunteers will be recruited by Fair Planet using its own resources.

To manage the international volunteering program we will appoint a Volunteer Coordinator who will recruit

the volunteers and manage the volunteering program during their stay in Ethiopia. The international

recruiting process will be done jointly by KKL-JNF and Fair Planet in order to benefit from the KKL-JNF’s

extensive international network and links to the Jewish communities world-wide.

Our mission to empower the most vulnerable people is rooted in the Jewish value of social justice "Tikkun

Olam"- healing our world. This project will create meaningful social change and will certainly help shed a

positive light on Israel and the Jewish people.

International Volunteer program requirements:

Year 1 – 18 international volunteers (50% flight costs and on-site living costs), 75% coordinator and

recruiting costs (travel, communication, consultants)

Year 2 - 24 international volunteers (50% flight costs and on-site living costs), 100% coordinator and

recruiting costs (travel, communication, consultants)

PROPRIETARY 14

H. BUDGET BREAKDOWN

2015 2016 2015-2016

New Economic Opportunities - Training program

1 training site 2 training sites Total

(cost in US$) (cost in US$) (cost in US$)

Program management 5,000 5,000 10,000

Technical management 13,000 13,000 26,000

Coordination of training 4,000 4,000 8,000

Travel 8,000 13,000 21,000

Baseline Research 2,000 4,000

Impact Analysis (results) 2,000

Agricultural inputs and direct training costs

15,000 35,000 50,000

On-site training manager and DAs 1,500 3,000 4,500

Subtotal 48,500 75,000 123,500

Volunteers Leading Change – International program

2015 2016 2015-2016

18 international

volunteers

24 international

volunteers

Total

(cost in US$) (cost in US$) (cost in US$)

Volunteers (50% flight costs + on-site living costs)

29,700 39,600 69,300

Coordinator of International program

27,000 36,000 63,000

Recruiting cost 5,000 5,000 10,000

Subtotal 61,700 80,600 142,300

2 programs combined (Training and International

Volunteers)

2015 2016 2015-2016

(cost in US$) (cost in US$) (cost in US$)

Total 110,200 155,600 265,800