Agri-ProFocus Ethiopia Annual Network Day Working Group on Contract Farming 13 December 2013 Addis Ababa

Background Created on the APF Annual Network day of 13 December 2012 Conducted 2 regular meetings Many members (next slide) Chairperson: Solagrow, but open

Member Organizations Target Consult HEDBEZ Consult Meset Consult FFARM FC Hundee SOS Sahel CDI SNV EUCORD Terrafina RNE FSRE Future Agri-Consortium Solagrow Fair Fruit AfricaJUICE Woira Oil Plc Africa Bamboo Maranatha Farm Heineken Velocity Marginpar Van Oers Eco Coffee Arbaminch-Silk

Approach and progress of the WG Two presentations :  Outgrowers Incubator Project AfricaJUICE  Pioneer hybrid maize seed production The follow up discussions focused on:  The role of Producers’ Organisations in Contract Farming  The role of MFIs in Contract Farming. Second meeting: FSRE winners

FSRE fund winners - Contract farming Facilitators for Change Catalyzing Transformation of Chickpea Value Chain Project Boost on-farm production and productivity through new practices and by facilitating input access and providing chickpea agronomy training Build capacity of cooperatives to deliver post harvest services to members: aggregation, cleaning, grading, packing and sales; Facilitate linkages and purchase agreements between agro-processors (GUTS Agro processing) and Hundura Becho union Enable smallholder farmers to receive quality inputs, technical assistance, and a guaranteed market (purchase agreements) from agro-processors in exchange for a reliable quality and quantity of raw materials.

FSRE fund winners - Contract farming Arbaminch-Silk  Produce quality and quantity silk and silk products  Process the silk products into threads and garments  Creating international market link (How do the farmers lead to a international market link?)  Out growers will be trained by the AMSPC  Castor & Mulberry will be cultivated on Company’s and out growers’ farm  Eri & Mulberry silkworms will be reared to produce cocoon  Purchasing and installing reeling, spinning & weaving machines  Cocoon Spinning, weaving & painting

FSRE fund winners - Contract farming Ayetu Agriculture and Trading PLC (Eco-Coffee) Testing inclusive business model in coffee value chain Boost incomes of 1560 coffee growers and the company by catering more lucrative and expanding specialty coffee seeds production and marketing, improving quality, productivity of coffee, providing coffee processing services and promote ethical and environmental friendly business practice. Affordable and environmentally sound wet coffee processing (washing) technologies adopted and functioned Sustainable and affordable access to specialty Coffee seeds enhanced in the project vicinity & beyond

The way forward: Plans in Checklist of issues in contract farming 2.Set up a database with experiences and ideas 3.Check regulatory issues with MoA 4.Explore:  Contract farmers exporting (outside ECX); e.g. sesame and (haricot) beans  Busa Gonofa and Wassasa work with Malt Barley  Farm Africa and Diageo work in Ambo on malt barley 5.Field visits to explore these and test checklists 6.Identify best practices and list of DO’s and DONTs 7.Make a format / model that can be used in Ethiopia 8.Look for funding of local initiatives FEEDBACK AND IDEAS PLEASE !!

Contacts Agri-ProFocus in Ethiopia: Fair & Sustainable Ethiopia Phone: +251 (0) Mr: Jan J. van de Haar Tel: