Zambia Visit21 April-1 May 2009

“Knowledge is like manure; what good is it, if you don’t spread it around?”

Where in the process are we?

Common denominators / products Timing

1. Affiliation matrices developed containing activities of relevant stakeholders

February 2009

2. First assessment of entry points through APF member meetings in the Netherlands (to discuss initial ideas, jointly decide on the process to follow-up, and agree on preparatory activities)

February 2009

3. Country-visit to discuss and design process; link up to the Dutch Embassy / LNV representative and other stakeholders

End of April 2009

4. Write up of synthesis paper based on collection, and analysis of (sector) policy and strategy documents and focussing on trends and issues with regard to farmer entrepreneurship

May-June 2009

5. Development multi-stakeholder workshop programme to be held in Lusaka

June-September 2009

6. Invitation of stakeholders to join the workshop. Participants will – depending on the context - be a mixed group of:local and national producer organisations;in country service providers;private sector representatives;government representatives;Agri-ProFocus directly involved liaison professionals ;Dutch government / embassy officials;and – if applicable – other funding/research/implementing organisations.

June-September 2009

7. Cost sharing (human and financial resources) of workshop between the APF members and logistical arrangements.

June/July 2009

Visit Schedule

Schematic overview of people seen

Enabling environment

Chain actors (in selected chains)

Service providers to chain actors

Other non value chain specific

APF members

Swedish International Development Agency

Heifer Zambia (dairy)

ZATAC DAPP SNV (interest in rice and honey)

Royal Netherlands Embassy

Cotton Association Zambia (cotton)

IFAD/ RUFIP Hivos (interest in honey)

Zambia National Farmers Union

OPPAZ (organic cotton)

(ZANACO) Solidaridad (interest in organic cotton)

Agri Consultative Forum

(Dick Muis (dairy))

GART (cotton/ dairy)

Zambia Business Forum

Agri Business Forum (honey/ rice)

Heifer International Zambia (Dairy, chain actor)

Points for improvements in Zambia:

• Training on quality is required to

connect to market demand

• Strengthening of links to the private

sector is required

• Farmer groups must be linked to farmer unions, where lobbying and advocacy can be strengthened.

• Monopoly of processors needs to be broken, in order to negotiate prices

• Entrepreneurial skills and Value addition (Processing milk near the farm)

• (ZNFU lobbies for more equipment against dumping of (powder) milk products from eg. South Africa)

• http://www.heifer.org/site/c.edJRKQNiFiG/b.3978591/

DAPP (no specific chain)

DAPP builds on the capacity of communities:

• Selection of viable farmers for loans

• Organizing field days to show how good farmers operate

• Organize ‘open Sundays’, to promote certain issues (best crops, best processed product)

• DAPP is good in structuring the learning process for developing responsibility/attitude toward entrepreneurship.

Strength of DAPP:

• Structuring the learning process for developing responsibility / attitude toward entrepreneurship

• http://www.dappzambia.org/

ZATAC (financial service provider)

ZATAC intervenes not a PO level but higher up the chain (agro-processing companies)

• Discuss ‘MODELS THAT WORK’ in Value Chains & agree on things that we should STOP doing

• http://www.zatac.org/mission/mission.htm

Producer Level Group businesses Association Developm + Group Approach To develop Competitive business

SME Development Enterprise Developm Support (not Buss Dev Services). Developing business plan (describe what it takes from current situation to reach a more competitive position) ZATAC brings in TA for specific projects

Financial Services: ZATAC Investment Fund (US$ 4 M/yr)

1) Business apply to ZATAC for financing (MATEP is in ZATACs consortium)

2) Or ZATAC looks for clients based on a specific program (Package Services)

SIDA (lead bilateral donor Agriculture)

• SIDA funded the ASP (Agricultural Support Programme, http:// asp.ramboll.se)

• ASP= A Programme supporting increased Food Security & income by promoting the “Farming as a Business” concept in Central, Eastern, Northern and Southern Provinces of Zambia, through a process of facilitation, training, infrastructure improvement, capacity building among support structures/service providers and linkages to relevant service providers.

• The initial programme period was from 2003 to 2005, and then extended to 2008. Plans for a follow-up on the ASP are in progress (starting in Sept/Oct 2009)

• SIDA gives support to the civil society, notably ZNFU and ACF (as of 2009.)

• It aims to link these partners up to the ASP, and to improve market access and marketing.

• http://www.sida.org/sida/jsp/sida.jsp?d=402&language=en_US

• Currently a self assessment is taking place at MACO which may identify a need for capacity building within the Ministry, which in turn may

lead to more effectively supported programmes.

Cotton Association Zambia (Cotton, chain actor/ facilitator)

• Bottleneck in cotton value chain: productivity

• One approach is to promote Conservation Farming Methods

• (increased food security, increased soil fertility, increased productivity)

• Producers’ dependency on ginneries; they provide services (inputs/ extension) but add most of the value

• CAZ wants to pilot value adding at farmers level by using (mobile) baby gins

• CAZ model that has worked: Pricing model (minimum price agreed with ginneries, private sector dynamics determine top up)

• http://www.cotton.org.zm/about.php

ZNFU (Enabling evironment)

The ZNFU is to promote and protect the interest of members as farmers, individuals corporation/companies and other organisations involved in the business of farming in order to achieve sustainable

economics and social development.

Key Issues for ZNFU:

- Value chains & Financial Services

- New strategic plan (2008-1012) aims at improving services to members;

- Farmers Organisations depend for 70% on donor funding: aim is to introduce cost recovering services, to stimulate self-financing;

- Improve the Fertilizer Support Programme (and transfer to private sector/demand-driven approach)

- Core activities ZNFU: Create enabling environment

- ZNFU has shares in ZANACO

- http://www.znfu.org.zm/

Agri Business Forum (Honey, Chain facilitator)

Issues in honey value chain: • Lack of organisation on all levels (producers,

processors, enabling environment)• PO: low productivity• SMEs: confusion and distortion because of non

uniformity of donor support• NGOs/ BDS no agreed approach to capacity building • Internal capacity of chain actors limited• potentially very viable sub sector to increase income of

small producers

Models that work:• ABF plays a role in facilitating Honey Multi Stakeholder

Platforms• http://esaanet.com/_ehp/index.php?option=com_content&view=article&id=106

Agri Consultative Forum (enabling environment)

ACF is a membership organisation with 45 registered members from public, private sector, NGO’s, research Institutes and Donor organisations (www.acf.org.zm)

Activities:

- Policy dialogue + Platform

- Monitoring of Sector Programmes

- Networking and information sharing

Lobby Issues

- Credit Act (bring in provision of WRS and strengthen contract enforcement)

- Marketing Board Act (vs Food Reserve Agency)

- http://www.acf.org.zm/mship.htm

Dutch Embassy (Enabling environment)

A fruitful discussion clarifies the aim of APF activities in relation to the approach the Dutch took on private sector development:

It was noted by the Embassy:

- Ownership of the (APF) process should be with Zambians

- Learning between value chain is important

Concluding:

- End double functions re. support by Dutch organisations

- Promote effectiveness in specialisation

- Less transaction costs

- Bottlenecks identified during this mission and at MSM will provide the direction for the Country Programme

The (agricultural) entrepreneurship focus is stressed during the meeting and is positively received.

IFAD (1) (Existing VCD support structures)

IFAD started as project to respond to food crisis

Rural Finance Programme (>January 2008) to increase use of financial services in rural areas

• develop sustainable community-based financial institutions

• promote rural banking services

• increase small-scale production in contract-farming operations

• develop new and existing financial service products in rural areas

• establish a more efficient policy and institutional framework for rural finance

http://www.ifad.org/english/operations/pf/zmb/index.htm

IFAD (2) (Existing VCD support structures)

Small Agribusiness Promotion Programme (SAPP):

- SAPP is an off-spring of SHEMP (Smallholder Enterprise and Marketing Programme )

- Focus is on Agribusiness and 10/12 commodities/value chains

- Aiming at partnership or co-financing…

IFAD’s advice to Agri-ProFocus:

- Ensure a short response time

- Clarify the product/added value dat APF offers

- Understand / Integrate the enabling environment

- Initiate projects that show results at short/medium-term, to motivate progress/cooperation

- Show ‘models that work’!

Zambia Business Forum (Enabling environment)

• Farming sector is priority 1 in Zambia

• ZBF is involved in Credit Guarantee Scheme (with Rabobank)

• Market access difficult, due to:

– Bad infrastructure: No incentive for private sector distributors/logistic operators (high (maintenance) costs)

– Old habits (government used to collect harvest at farm gate)

• ZBF considers ‘Agri-Production Sector’ the weakest link:

– Logistics & Distribution is centrally organised: through Lusaka.

– This should be more de-centralised: Add value close to the production area

– Improve transport (sector) for (semi-)finished product

– www.zbf.org.zm

Organic Cotton (OPPAZ-Solidaridad) (selected value chain and chain facilitator)

Two-and-half day workshop was organised by OPPAZ and Solidaridad to discuss potential for Organic Cotton Project

Invitees: KATC, GART, WCS, UNZA, CAZ, CHOPPA, CHIKULE, PETAUKE, RAFEEN, KAMBE

Project target: produce 500 tons of organic cotton on 1,200 ha by 6,000 farmers

Next step: Perform Marketing and Sales study for organic cotton from Zambia

Improve production as well as develop niche market for organic cotton from Zambia

www.oppaz.org.zm

HIVOS (APF member)

- Hivos is active in the honey sector

- Hivos -in cooperation with SNV- would like to add ‘Biofuels’ as a value chain in the APF Country Programme for Zambia.

- We adviced to place Biofuels on the ‘ning’

(apf-zambia.ning.com), to check for participation from other APF members

http://www.hivos.nl/dut/community/partner/40008170

SNV (APF member)

• Interested in taking on an active (leading) role in Rice and Honey value chains in identifying issues for MSW and generating lessons

• Volunteer to take on the part of knowledge development/ knowledge brokering

• Already working with AgriBusinessForum in honey (strengthening its role as chain facilitator)

• Plan to identify a chain facilitator for rice

• Different advisors for different chains/ localities , but Ekanath contact person

• http://www.snvworld.org/en/countries/zambia/Pages/default.aspx

GART (Golden Valley Agricultural Research Trust, Dairy, chain facilitator)

GART’s mission is to contribute to optimisation of production, commerce and trade of crops, milk, chicken, goats and contribute to income security.

Activities are in the field of 1) Knowledge; 2) Impact; and 3) Influence.

Advice to APF:

- Use the STRENGTH of each APF member/stakeholder

- Ensure that APF activities do not conflict with National Programme

GART can function as chain facilitator for value chain ‘Dairy’ towards the Multi Stakeholder Meeting

www.gartzambia.org

Notes on proposed process

• Choice for value chain perspective shared by stakeholders

• Selected chains so far: (organic) cotton, honey, rice, dairy, possibly jatropha

• Scope of process untill MSW in September: joint analysis of bottlenecks in value chains (facilitated by researcher and Zambian chain actors)

• MSW in September: 1 day chain specific, 1 day issue specific, expected output: ‘deals’ between APF members and Zambian partners around issues

• In MSW: Joint analysis of cross cutting/ overarching issues (Zambian chain actors and APF members)

• APF members’ support more relevant and demand driven

• Zambian chain actors willing to take a leading role in generating issues for MSW

Next Steps (1)

• Back in Netherlands:

– APF support office will inform APF partners on Zambia visit and impressions, through:

• Zambia Online Platform (apf-zambia.ning.org )

• Meeting in NL with partners: 3 June 2009

• Between now and MSM in October 2009:

– Synthesis Paper/Context Analysis

– Prepare Cooperation Paper (MoU) for MSM cooperation

– Ask Zambian organisations for more specifics on hot topics (value chains, cross cutting issues) for MSM input preparation.

Apf-zambia.ning.com

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