Learning Agenda of the FSRE DEVELOPMENT EXPERTISE CENTER (DEC) Adequate Farming Project Innovative agricultural practice and commodity value chain development April 2014 Addis Ababa

Learning Agenda of the FSRE DEVELOPMENT EXPERTISE CENTER (DEC) Adequate Farming Project Innovative agricultural practice and commodity value chain development April 2014 Addis Ababa

The ADEQUATE: Adept-Qualified-Technology (ADEQUATE) farming project is:  an innovative project planned to enable four mutually interdependent cooperative members increase their income,  involve them in full time job, and  create market chain for their products.

ADEQUATE Cont…. Ultimate goal  Improve food security on sustainable way and create future investment capital for small holder farmers.  Value chain the project involving:  Goat fattening  Poultry and  Pig fattening  Fodder production 

The complementary business relations model of the project

Technology The Innovation:  New way of feeding (sweet potatoes, alfalfa, oats) –helps animals fatten short period  Use of HYV ( goats, pigs, chickens) – high production yield  Intensive cropping, three times production per year – reduced dependency on rain water Technical aspects: Feasibility study by woreda & zone experts (three options) 1.Bore hole development (previous experience, ground water 300 meter, expensiveness) 2.Pump Awash river (harmful for human& animal consumption)

Technology cont… 3. Spring development using climate friendly technology – solar panel (both for drinking and irrigation) (Spring which has the capacity to discharge 30l/sec of water) Soil test for animal feed production (implies mineral deficiency of the soil, sample taken) helps in type of fertilizer used and selection of irrigation system (Debre Zeit research center)

Spring water development Collection chamber Spring developed

Reservoir construction

Organization The ADEQUATE farm comprises of the following four types of cooperatives: 120 animal feed producing members, 40 goats fatteners / raisers, 20 pigs fatteners / raisers 40 poultry breeders, o Internal bylaw within and among all coops o Input – out put relationship o Trained on each value chain Coops engaged on land preparation

Marketing Targeted markets per value chain  Goat and poultry marketing “Ashufe” open market neighboring kebele – whole sellers from Bushoftu, Koka ( shop shelter to be constructed from coops saving) – discussion with kebele manager and coops. (opportunity – 20km constructed recently) Existing SHGs – Agreement reached with three SHGs  Pig: discussion is undergoing with Luna Export in the same woreda  Four cooperative themselves (MoU) ( Animal feed producing cooperative will sell their product to animal farming cooperative and in turn buy manure used for animal feed production)

Economics  Chicken feed locally produced, technical assistance from district Agriculture office.  Locally made feed (mix of maize, salt, bone, and “nora) has no negative impact productivity  Lesson from previous experience – as result of improved variety of chicken, locally production of feed the we can reach to 80% of efficiency.

Cont.. Pig is purchased in kilogram for fattening  1kg of pig=70birr*50kg of pig, purchasing cost of one pig=3,500birr.  1pig eat 2.5kg/day(cost of purchase =12.50birr)  1pig eat 75kg of feed/month(its cost is 937.5)  1pig eat 225kg feed/3month(its cost is 2,812.5birr)  The fattened pig after three month reach to 170kg*70birr= and soled to 11,900birr the investment cost of 1 pig is 7,250birr and the profit is 4,650birr.

Cont.. 1 chicken feed 120gram/day and 1chicken feed 3,600 gram/ months=3.6kg. 100kg of locally produced feed is 500birr 3.6kg will costs 18 birr The average egg collected from one chicken is 22 eggs/month this will soled to 44 birr/month.The benefit will be 26birr/chicken/month.

Financial efficiency  The mutual interdependence and a market chain created among the four cooperatives is a golden opportunity that an input of one cooperative member is an output for the other cooperative members and vice versa.  This mutual integration minimizes the cost and maximizes the profit of the cooperative members  from their weekly saving coops have 12,439birr as a capital

Environmental issues  Promotion of Zero grazing approach  The project also creates conducive environment for the cooperative members to generate consistent income that help them stopping deforestation for as a means of earning.  Moreover, the project introduces environmentally friendly technologies for the rural people and conserving the natural resources. Eg: solar energy for the irrigation development (spring development), Community based nursery introduced

Gender  58% of the ADEQUATE project beneficiaries are women.  To curve the effect of social set towards women, life skills & FAL is being delivered.  Orientation on gender value chain Cooperative s Mal e Femal e Total Feed producer Goat -40 Pig -20 Chicken -40 Total Percentage 42%58%100%

Cont…

Food Security  The mutual interdependent market chain created among members of the cooperatives will ultimately ensure food security through enhancing productivity and introducing innovative technologies for the targeted smallholder farmers in a sustainable way.

Entrepreneurship  The project will demonstrate concept of mutually interdependent business model easily replicable and defused.  It will also introduce appropriate technology in animal farming and promote creation of financial capital and entrepreneurship skill for future environmentally sound, socially acceptable and economically viable investment.

Conclusions  The ADEQUATE: Adept – Qualified – Technology project envisaged to contribute towards sustainable food security for smallholder farmers in the district.  The targeted four cooperatives are engaged in integrated and mutually interlinked farming business.

Learning questions  How to enhance the capacity of each coops to be engaged in huge investment?  What technical backstopping are needed to coops?  How to create their market linkage to the local co-owners and Exporters Enterprise?

Action plan: what to measure and how to organise this ? Finalizing the shelter of  Goat  Pig  poultry Bringing goats and pigs to their shelter Sowing the Animal feed on the coops farm land Monitoring and follow up