Zambia Visit 21 April-1 May 2009

1. Zambia Visit21 April-1 May 2009 “Knowledge is like manure; what good is it, if you don’t spread it around?”

2. Where in the process are we?

3. Visit Schedule

4. Schematic overview of people seen

5. 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/

6. 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/

7. 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

8. 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.

9. 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

10. 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/

11. 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

12. 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

13. 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.

14. 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

15. 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’!

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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.

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