IFC and Agribusiness in a Changing Environment

1. IFC and Agribusiness in a Changing Environment • Strengthening value chains and cooperatives • Dieter Fischer • Senior Operation Officer • Manufacturing, Agribusiness and Services • International Finance Corporation

8. Food Prices Spiking Upwards from long term trends FAO Real Food Price index, 2002-2004 = 100 44 million people pushed into poverty by rising food prices in developing countries in 2011-12 A long period of low investment and government neglect 2008-11 price spikes a wake-up call 12 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 SOURCE: FAO High prices driving increased investment interest in food production 8

9. IFC Supports an Integrated Value Chain Approach as Key Part of its Agribusiness Strategy… Agribusiness strategic interventions across the value chain Investment Climate (Business environment) Infrastructure, Public-Private Partnerships Input producers and distributors Food Processors Distributors Retailers Farmers Traders Financial/Risk Management Products Advisory/Technical Assistance Environmental and Social Ecosystem Services

10. Goal—build a sustainable pipeline of professional farmers who are aggregated into effective producer organizations

11. Goal—build a sustainable pipeline of professional farmers who are recognized by the market Organized farms, optimal yield Organized, > average yield Future State Current State Organized SME farms, higher yield Requires significant investment Smallholders, low yields Smallholder farmers, low yield, unorganized

12. Farmer organizations are key to change We aim to strengthen individual farmers by working with farmer organizations and other aggregators. Examples include cooperatives, producer groups, and field agents.

13. Unlocking financing from banks and off-takers • Exchange standardized assessment data on creditworthiness and capacity • Identify “early mover” producer organizations that can deliver crop volume, quality and traceability required by markets • Provide targeted training and coaching to raise capacity where gaps are identified • Build trust among members by strengthening governance and educating members on the benefits of collective marketing

14. Financing farmers through producer organizations • Working capital for producer organizations to purchase crops from members • Truck leases to increase logistical capacity • Drying tents for maize to reduce aflatoxin risk • In-kind loans of agricultural inputs • Long term loans for replanting tree crops • Long term loans for irrigation equipment

15. Agribusiness Leadership Program The Agribusiness Leadership Program integrates SCOPEinsight assessments, classroom training, and coaching in a 6- to 24-month program designed to measurably improve the management skills and professionalism of farmer organizations.

16. These are the 3 core elements… 3. Coaching 1. Assessment 2. Training

17. We build others’ capacity to deliver the 3 elements Training needs assessment and strategy development Reassessment, additional training, and/or financing 3. Coaching 1. Assessment 2. Training SCOPEinsight trains the assessors IFC trains the coaches IFC trains the trainers

18. … bookended by training strategy and reassessment Training needs assessment and strategy development Reassessment, additional training, and/or financing 3. Coaching 1. Assessment 2. Training

19. We build others’ capacity to deliver the 3 elements Training needs assessment and strategy development Reassessment, additional training, and/or financing 3. Coaching 1. Assessment 2. Training SCOPEinsight trains the assessors IFC trains the coaches IFC trains the trainers

20. The first training courses have been completed Advanced Cooperative Management (for literate cooperative leaders from more established cooperatives) Foundations of Cooperative Management (for literate cooperative leaders from newer/smaller cooperatives) Cooperative Basics (for farmers with lower literacy levels)

21. Farmer graduation leads to opportunities, including access to markets and finance Higher level of professionalism Increased opportunities Graduation through training Start of assessments Reduced risk of providing financial services for banks and off-takers P.O.s can access financial services, which supports their membership • Training focuses on main gaps • Farmer organization moves to next level Assessment measures levels of professionalism Assessment 1 Assessment 2 Assessment 3 Time

22. Selected Agribusiness Advisory projects Niger Success fee-based development grant for expansion of efficient irrigation for smallholders Rwanda and Ethiopia: Aggregation, assessment and business management training for Smallholder farmers in cooperatives in the maize and soy supply chain Rwanda: Aggregation, assessment and business management training reaching 45,000 Smallholder farmers in 26 cooperatives in the maize supply chain and establishment of 10 irrigation pilots Cote d’Ivoire Supporting client strengthen farmer groups and access finance Kenya - Improving productivity through soil testing, fertilizer blend recommendations and farmer training. -advice on clean energy solutions. SIPRA Cote d’Ivoire Providing client support with meeting IFC performance standards Mozambique Support client to implement Stakeholder Engagement and Community Development Plans. (in development) South Sudan/ Ethiopia Reimbursable Grant/Supervision; Agronomic and business management support to smallholder farmers via Technoserve World Food Program (in development) Tanzania, Rwanda, Malawi and Zambia Smallholder aggregation, assessment and business management training

23. Contact us to learn more: AgriLeaderProgram@ifc.org