International Centre North South Dialogue - ICNSD

1. International Centre North South Dialogue - ICNSD Marketing concepts for small scale organic producers in Africa - experiences and approach of the Network for Ecofarming

2. Personal Introduction International Centre North South Dialogue ▬ Consulting for development in Africa ▬ Dr. Sahle Tesfai • Head of the Board of the International Coordination of: NECOFA- Network for Ecofarming in Africa • Member of the Board of: “Journal of Agriculture and Rural Development in the Tropics and Subtropics” • Project-Cooperation with the German Agriculture Association and University of Kassel

3. Content • NECOFA- Internetworking for Development • Marketing concepts for small scale organic producers in Africa and the experiences and approach of the Network for Ecofarming

4. NECOFA NECOFA - Network for Ecofarming in Africa ...a internet platform for the exchange of experiences in Ecofarming in Africa.... Development Policy: • The foundation of the network as a instrument for the follow-up of the workshop held in Ethiopia 1998 to ensure the development of Ecofarming and living standards in Africa. • Supporting the planning activities of Ecofarming projects and their implementation • Lobbying Ecofarming within Africa

5. Backround • International Foundation-Workshop: "Ecofarming: Ecologically and Socially Sustainable Land Management“ (Äthiopien 16.Nov.-11.Dez. 1998) • The foundation was financed by: German Government, InWEnt (before Centre for Development and Agriculture (ZEL) of the German Foundation for Development) • The German Institute for Tropical and Subtropical Agriculture (DITSL) was a cooperating organization at the foundation of the network

6. General Activities • NECOFA assists national groups and members to sensitize political and administrative decision makers regarding issues of Ecofarming, to elaborate information and extension materials and to realize meetings, information and training workshops. • NECOFA provides scientific and conceptual advise to its members regarding planning and performance of small-scale participatory projects in Ecofarming. • NECOFA provides a platform of experience exchange, exchange of research results and coordination of new applied research projects to prevent unproductive repetitions. The Global Campus 21, NECOFA Workgroup platform is the information gateway for discussions, information exchange, advanced professional training and follow-up in the internet.

7. Services • Consultation integrate further experts of Ecofarming in African countries, to exchange information and to cooperate with other working groups and networks with same or similar objectives. • Supplying all information to the Internet-platform. platform of experience exchange for a rapid diffusion of latest findings, information and news in research, implementation strategies and extension methodology in Ecofarming

8. Services • Quarterly Newsletter the quarterly newsletter is a tool for the regular distribution of the collected information via internet as well as paper print. • “e-mail networking” e-mail networking is used to coordinate activities over distances • Linklist a link list is provided at the NECOFA homepage

9. Service Content of Page »Vol.7, No.4« • Workshop Report of NECOFA- EthiopiaTitle of the workshop - Organic Coffee Production and Local Inspection • BRIEF REPORT ON NECOFA KENYA ACTIVITIES 2004/2005by NECOFA Kenya • CROP PRODUCTION WITH EMby Peter Mwaura • ANIMAL PRODUCTION WITH EMby Mrs. B. Karanja and Ouma

10. Services • Publications: • Ecofarming - Ecologically and Socially Sustainable Land Management in Africa Proceedings of an International Training Course - Workshop held from November 16 to December 11, 1998 in Ethiopia Edited by: Sahle Tesfai and Hartmut Gast Published by: DSE • NECOFA-NIGERIA: Papers from the First Country Ecofarming Workshop December 20 to 21, 2000. Invited and presented workshop papers • Nutrient Quantity or Nutrient Access? A New Understanding of How to Maintain Soil Fertility in the Tropics by Roland Bunch. The paper is based on Ana Primavesi's: "The Ecological Management of the Soil" (only available in Spanish and Portuguese)

11. Membership The membership is free and open to persons as well as to organizations and institutions promoting Ecofarming Free subscription at: www.necofa.org

12. NECOFA-Structure

13. Cooperating Institutions • InWEnt- Internationale Weiterbildung und Entwicklung GmbH • University Kassel, Centre for rural development • GNE – Association for Sustainable Development

14. Results of networking • All NECOFA-groups managed to register as NGO • GTZ- projects were implemented in Ethiopia, Kenya and Ghana • NECOFA-country groups managed to organize demonstration plots and run small-scale agricultural projects • Since 1998 NECOFA is growing bigger and a number of experts, other networks and organizations joined the network • In October 2005 the Marketing Promotion project “NECOFA-EXPO” started to operate

15. Marketing concepts … for small-scale producers in Africa. Content • Market structure • Market instruments • Concept development • Experiences and approach of NECOFA

16. Market structure

17. Market structure Distinguishing • between markets: • Local (mostly rural) • Regional (rural and urban) • National (rural and urban) • International • by type of business partner (wholesaler, retailer, …)

18. Market structure Resources needed in the marketing process

19. Market structure Forms of export to the international market • Indirect: (mostly used for small amounts) • product is bought from an importer in the country of production • Importer carries the risk of transport and the transaction cost • The farmers minimise their marketing risks but just a lower price is realisable by the farmers • Direct: (used for large amounts) • The farmers are trading directly with the retailer or wholesalers in the country of destination • Farmers are carrying the transport risks and the transaction costs but realize higher prices

20. Market structure Price development for instants on the basis of coffee.

21. Market structure Trading terms: Price development on the basis of the different terms: • FOT – Free on Truck (of the roaster) • CF – Cost, Freight • CIF – Cost, Insurance and Freight • FOB – Free on Board (in the port of the country of producer)

22. Market structure Certification of organic products – Why? • consumer protection and information • protection from fraudulent marketing activities • transparency, building up consumers trust • development of markets, additional value, facilitates trade

23. Market structure Standards and Certification: Definitions Standard = Norm, technical specification • Private Sector • voluntary, no official status unless they are incorporated into country's legislation • ISO (International Standards Organization) develops standards and guidelines for many industries (e.g. ISO 65 for certification bodies) • Governmental Sector = Regulation • mandatory • adopted by a governmental body • Inspection • to prove/verify whether standards are complied • EU-Regulation 2092/91: inspection is carried out by a state run authority or by an approved private inspection body

24. Market structure Standards and Certification: Definitions • Certification • A system in which the conformity of products to applicable standards is determined and confirmed normally by a third party • compliance of standards by operator • inspection in compliance with defined process • Accreditation • “Inspection of the certifiers” • Procedure by which an authoritative body gives a formal recognition that a body or person is competent to carry out specific tasks. Control and supervision at all levels

25. Information is very important. Make sure you are informed! Internet Exhibitions Literature, newspaper,… Branch registers Trade chambers, Governments and Departments Personal contacting … Market instruments

26. Marketing instruments With the goal of linking the growers to the market various activities to create market and business linkages: • Inviting traders to meet with farmer group • Assisting growers to find new market outlets (iii) Creating linkages between growers and a processor (iv) Assisting farmers to overcome transport problems (v) Promoting new marketplaces (vi) Provision of information and negotiating support to farmer group

27. Market survey: Comparison between countries Political stability Monetary transactions and exchange rate risks Legal frame Comparison between markets Transport Trade restrictions Prices Communication technologies Quality and quantity of product Concurrence Potential demand in the country of destination Trading structure Networking and support of the project partner Cooperation options Optional Exhibitions Contacts and consulting options Market instruments

28. PROJECT OR GROUP NAME GROUP ORGANIZATION STATUS GROUP LEADER & TEL CONTACT NUMBER IN GROUP LPDA EXT OFFICER & TEL CONTACT SITE LOCATION ACCESS LOCATION DESCRIPTION GENERAL TOPOGRAPHY ARABLE LAND AVAILABILITY SOIL DESCRIPTION WATER AVAILABILITY RAINFALL FROST FENCING OUT BUILDINGS PRESENT FARMING CAPABILITY SITE PREVIOUSLY CHEMICALLY FARMED? LAND USE & AGRICULTURAL ACTIVITY LIVESTOCK/POULTRY ORGANIC EXPERIENCE GROUP LITERACY OTHER STAKE-HOLDERS MARKETS OBSERVED CROP POTENTIAL COMPOST BIOMASS eg. BANA-GRAS AVAILABILITY CONSTRAINTS MARKET ACCESS BUSINESS DESCRIPTIONS INFRASTRUCTURE COVERAGE ASSETS: eg. TRUCKS, EQUIPMENT Market instruments SITE ANALYSIS: LIMPOPO SMALL-SCALE FARMERS PILOT PROJECT

29. Concept development • Market Survey (RMS) • Identify Beneficiary Groups • Diagnose Market Options • Profile: Biophysical & socio-economic • (v) Identification of Market Opportunities • (vi) Characterize Opportunity Requirements • (vii) Participatory review of market options • (viii) Design organic production system • (ix) Select Growing Options • (x) Consider Enterprise Options TRAINING • Final Integrated Agro-Enterprise Development Plan

30. Approach and experiences of NECOFA THE NECOFA KUMASI DECLARATION The participants of NECOFA follow-up workshop which took place in Kumasi – Ghana (between September 26 to October 09 2004) under the theme ‘Promotion of Ecofarming for food security, protection of Natural resources, Health and Income Generation have critically analysed that Africans: • Are not actively participating in development and policy issues • Have inadequate access to food • Are utilising their natural resources unwisely as a result of which desertification is expanding • Are facing high rate of unemployment • Indirectly forced to accept GMO’s, which is the main cause of genetic erosion, and loss of biodiversity. • Are threaten to face cultural identity by rejection of local practice and indigenous knowledge • Are suffering from lack of infrastructural networks through which they access to infrastructure • Are threaten from unfair trade as a result of the subsidy of the northern farmers • Are under high certification fees and complex standards of organic products which are monopolised by the multinationals certifiers mainly from USA • Are in short of rural macro finance programmes, which could have helped them to generate extra income. • Are suffering from food and nutrition insecurity as result of which infant mortality and diseases at the climax. • Are under high rate of illiteracy • Are suffering from lack of good governance and absence of democratic forms of Governments • Are facing serious HIV/AIDS cases, which is sapping out the production sector of the society. ……

31. Approach and experiences of NECOFA …. The participants are well convinced that at this advanced technological error, Africa is overburdened by food insecurity and poverty. Wishing to work for the continent’s bright futurity dictate that this conditions should be diverted: • Thus, we the workshop participants declare that: • That the rural poor in general should be given the right to participate actively in all issues concerning development and policy formulation. • Those poverty reduction strategies should centre on the empowerment of the rural poor in particular women and youth. • Say no to Genetically Modified Organisms that destroy our livelihoods and biodiversity • Deliberate neutralisation of African cultural identity should be stopped • The Africans should be recognised as certifying bodies of Organic produce. • The declaration was signed on the 07th of September 2004 at Kumasi by the following country representatives:

32. Approach and experiences of NECOFA Approach of NECOFA: NECOFA is running an export support programme since 5 Month – “NECOFA-Expo” • The aim of the programme is to enable farmer and farmer cooperatives to participate on the world market • With the participation on the international markets the rural development can be supported

33. Approach and experiences of NECOFA • Experiences: • Contacts are rare and must be handled with care • International exhibitions providing good chances for making contacts • Once a contact is made required information must be provided to the buying company • But: be aware that you need to negotiate the price, so don’t tell everything

34. Approach and experiences of NECOFA • Products that could be traded soon: • Coffee from Ethiopia • Sesame from Ethiopia • Tea and Herbs from Kenya • Herbs from South Africa