Farmers Fighting Poverty Entrepreneurship in Development 2011 annual report
Farmers FightingPoverty
Entrepreneurship in Development
2011annual report
Publication details
Content: AgriterraEditorial: Opraappers Communicatie b.v.Photography: AgriterraPhoto cover: Debby Gosselink
Ordering: copies of this report are available through www.agriterra.org; tel: 0031-26-4455445; e-mail: [email protected].
The annual report Farmers Fighting Poverty 2011 is an Agriterra publication.
Extracts from this report may be published provided permission is first obtained from Agriterra and the source is duly attributed.
© AgriterraArnhem, September 2012
Table of contentsForeword 3
Agriterra in 2011 4
Sowing the seeds for growth and development 6
Dairy processing along Dutch lines 7
Engaging financiers’ interest in cooperatives 8
Agriterra around the world 10
Encouraging farmers’ groups to join forces 12
Visiting the farms of Vietnamese colleagues 14
Knowledge transfer essential for progress 14
Beekeepers forge an alliance in divided country 15
Giving farmers a voice in agricultural policy 16
Financial report 2011 18
Cooperatives have a long-term orientation and are geared towards sustainability. The focus lies on the challenges that are confronting the world of agriculture: climate change, population growth, changes in consumer behaviour and depletion of fossil fuels. In order to face up to these challenges, it is essential that farmers pool their resources.
Cooperation leads to new ways of thinking, innovation and understanding between stakeholders. It is a prerequisite for growth. Cross-border collaboration is necessary in a globalising world. Through Agriterra the Dutch agricultural and horticultural organisations are collaborating with colleagues in developing countries. In the period 2007-2010 Agriterra reached 4.5 million farmers in the “Farmers Fighting Poverty” programme. These farmers belong to organisations
and cooperatives with a total of 20 million members. In 2011 Agriterra focused its efforts on achieving tangible economic benefits for these members. As a result greater interest and commitment to cooperate with Agriterra were shown by Dutch agricultural organisations and the agribusiness sector.
The next step will be geared more towards risk management, sustainable production and the pooling of resources within the food supply chain. In order to become ever better at fulfilling our important role as food producers, farmers’ organisations must join forces in the search for new and innovative ideas.
Albert Jan MaatPresident of Agriterra and LTO Nederland (Dutch Organisation for Agriculture and Horticulture)
Strengthening the position of farmers through cooperation is key for development
The Dutch agricultural sector is among the largest in the world. This position has
been achieved because farmers cooperate – not only with each other but also with
other stakeholders in the supply chain. Cooperatives open up new markets and
provide opportunities for collective investment. By pooling our efforts and resources
we strengthen our market position, which is a prerequisite for growth for the
cooperative and the individual farmer.
Agriterra | 3
Ugandan farmers win business plan award Mbadifa Enterprises Ltd of Uganda won the Agriterra business plan contest for 2011. The competition challenges organisations in developing countries to produce a good business plan, with the ultimate aim to bring them into contact with banks and investors that are willing to support those plans. Mbadifa will use the first prize of €15,000 as start-up capital for a shop selling agricultural inputs such as seed, fertilisers and disease control products. This will enable the 10,000-plus members of the national farmers’ organisation to improve their production of vegetables, fruit and seeds. The jury commended the business plan for its focus, thorough market research and realistic growth expectations.
Worldwide deal for Peruvian cooperative Coopain Cabana, an agricultural cooperative based in southern Peru, has signed a worldwide contract with Specialty Commodities Inc (US). Under this deal, Specialty (a supplier to Kellogg’s and Nestlé) will buy organic quinoa from the Peruvian cooperative. Quinoa is a “pseudo-grain”, rich in proteins, vitamins and minerals, and it is also gluten-free. Agriterra advises Coopain Cabana on its marketing and promotional activities. Financial support from Agriterra enabled Coopain Cabana to take part in national and international trade fairs, where the initial contacts for this valuable grain deal were made.
Successful negotiations yield more subsidiesAgriterra’s support to advocacy organisations in Moldova pays off. By improving its negotiating strategy, the National Farmers’ Federation (NFFM) has secured substantially more subsidies for its members. The NFFM organised two press conferences to voice its criticism of government subsidy schemes. This led to meetings with the Prime Minister, which ultimately resulted in Moldova’s total agricultural subsidy funding being increased by MDL 150 million (around €9.5 million).
Agriterra in 2011
Agriterra | 4
Philippine farmers join forces to boost food security The EU-funded Philippines’ Farmers for Food Programme proves to be a successful driver of greater food security in the Philippines. Agriterra brought together four agricultural organisations who started to work closely together. As a result more than 200 clusters of local farmers are now sharing and expanding their knowledge of production, processing and marketing. The collaboration has also given rise to stronger farmers’ organisations which are better able to represent the interests of the farming community, resulting in increased production of vital foodstuffs in the Philippines.
Congo enacts its own agricultural legislationThe Democratic Republic of Congo (DCR) has had specific agricultural legislation since May 2011. This Code Agricole enacts a set of fundamental principles relating to agriculture. It protects the 70% of the DRC population who rely on farming for their livelihood. The legislation is the result of vigorous lobbying led by the provincial farmers’ federation, FOPAC NK. This organisation has flourished with the advice and financial support from Agriterra. Inspired by this success, a national umbrella organisation for DRC farmers, CONAPAC, has now also been established with further support from Agriterra.
Jordanian women’s organisation becomes advisor to King AbdullahKing Abdullah of Jordan is advised on agricultural policy by around twenty agricultural organisations. Since 2011 this select group of advisors has been joined by the Specific Union of Women Farmers in Jordan. This is the first organisation in the Arab world to have been founded by and for rural women. With its help, and by organising training courses, women are able to start their own businesses. Agriterra is funding this training and assisting in activities designed to raise the profile of the Specific Union.
Agriterra | 5
Sowing the seeds for growth and developmentThe agricultural sector is the engine that drives the economy. Entrepreneurial farmers and growers foster development and play a crucial role to fight problems of hunger and poverty. If they do not manage to organise themselves, they will remain powerless on a political level and will be economically disadvantaged. Agriterra seeks to ensure that farmers’ organisations and cooperatives in developing countries are strong enough to help their members to establish a strategic position in the market and to represent their interests. This does not only mean providing financial support but, above all, facilitating the transfer of knowledge. Assistance and advice are provided in the field by agripoolers – Dutch farmers
and agricultural specialists who share their knowledge and experience. By strengthening farmers’ organisations, Agriterra wants to enable them to teach farmers how to run their farms better and stimulate their entrepreneurship by improving product processing and marketing. Strong, healthy farmers’ organisations and cooperatives improve the entrepreneurship of their members. They establish relationships with governments and other national and international players in order to achieve demonstrable benefits for their members. They improve the income position and future prospects of their members. This is why Agriterra supports them in realising their growth ambitions.
board of directors
management
department of support and quality
department of financial
administration
team agribusiness
team grass-roots entrepreneurship
team advocacy and innovation
Our foundersAgriterra was founded by a number of organisations representing the rural population and agricultural sector of the Netherlands. These organisations help Agriterra to provide their colleague organisations in developing countries with the skills that are needed for organised cooperation and entrepreneurship. The organisations are:
OrganigramAgriterra’s activities are built around three key areas in which we wish to achieve results. These areas are managed by three teams. The results are clearly defined and each team has a specific remit with regard to numbers of clients, participating farmers and how they should strengthen the organisations.
Our partnersAgriterra collaborates with other “agri-agencies” within AgriCord with research and educational institutions and other non-profit organisations in Agri-ProFocus. It is by cooperating with others that Agriterra is able to offer the best possible support to farmers’ organisations in developing countries and thereby increase its impact.
Rien Geuze (agribusiness advisor in Kenya):
“Running a business is in the Kenyan blood. Dutch
agricultural know-how can prove really useful in translating wishful thinking into a realistic business plan. The problems are the same as in the Netherlands,
only bigger.”
Ninoska González Herrera (liaison officer):
“Through our farmer-to-farmer approach, farmers see with
their own eyes how colleagues in other countries are working
and gain better insight into how they can improve their
own production, processing and selling activities.”
Kees Blokland (managing director):
“What we know, is available to everyone. All our activities, expenditure and results can be followed on the internet (www.agro-info.net). This puts us at the forefront of current efforts to improve the transparency of
aid flows.”
Quality Farmer-to-farmer
Knowledge transfer
Cooperation
Transparency
EntrepreneurshipAdvocacy
Agriterra
Agriterra | 6
Actually Jan Drenthen, senior project manager at Friesland- Campina, had no connection with Africa. And yet when Agriterra asked him to join them on a trip to Kenya, on account of his experience with dairy products, he said yes. Now he is enthusiastically and intensively involved in business development at Kiambaa Dairy. When Jan Drenthen first visited the dairy cooperative two years ago, Kiambaa had the ambition of setting up its own factory. The first things to be considered in taking the cooperative to a higher level were internal organisation and the business plan. Together, Agriterra and Kiambaa Dairy drew up an action plan aimed at improving the quality of the milk, hygiene and logistics. For example, they considered where the milk collection points could best be located in order to ensure that the milk can be collected on time even under the most challenging conditions.
Kiambaa Dairy turned out to be too small to have a factory of its own. Consequently a merger has now been initiated with the nearby Ndumberi cooperative, with advice from Drenthen. The expertise and knowledge of dairy products that Dutch agripoolers such as Drenthen bring to the table are serving Kiambaa Dairy well. “I keep track of developments during advisory trips to Kenya and from a distance via e-mail and Skype. That way I find out what problems they encounter and where there is room for further improvement. Agriterra sees to it that we are able to move around freely on our working visits, that nothing happens to us, and that we are properly insured. As a result we can carry out our work there effectively.” And when the agripoolers depart, Agriterra makes sure that the work continues. So the process does not grind to a halt. Agriterra assists the people from Kiambaa Dairy to implement the advice, providing training on such issues as production improvement, and supporting them to obtain funding. In this way Agriterra enables the cooperative to realise its ambition and improve the farmers’ standards of living.
Jan Drenthen: “Agriterra makes the difference. Not by giving money, but through knowledge transfer and consultation on economic development.”
Dairy processing along Dutch lines
Project description:• Adviceoninternalandexternal
organisation; • Qualityimprovementthrough
knowledge transfer
Agriterra | 7
Engaging financiers’ interest in cooperatives
Farmers in developing countries are
joining forces in order to strengthen
their position in the marketplace.
They need to pool their resources and
scale up their activities in order to
create market power. In many countries
cooperatives have difficulty gaining
access to credit for investments.
Although there is growing interest in
agriculture within the financial sector,
the cooperatives have not as yet quite
succeeded in translating their ambitions
into bankable business plans. Agriterra
assists these cooperatives in realising
their growth ambitions.
Agriterra | 8
Establishing a solid business planAll cooperatives that want to work with Agriterra are submitted to a business analysis. “We look at the organisation, its management (financial and general) and its relationship with the members. In addition we study the relationships with other parties, such as banks, suppliers, customers and other entrepreneurs. We analyse the business case with each client and draw up an action plan that will result in a business that is healthy and ripe for investment”, says team manager agribusiness Cees van Rij. “Furthermore we act as an intermediary in dealings with banks and investors.”
A proactive search for ambitious cooperatives with growth potential resulted in 23 contracted clients in 2011. The large majority of these are located in Kenya, Uganda, Ethiopia and Peru. They are mainly engaged in the production of dairy produce, coffee and cocoa, oilseeds and maize. Agriterra also has a number of savings and credit cooperatives in its client portfolio. The requested total funding of business plans is in excess of €1 million.
Sharper focus maximises return on investmentTeam agribusiness directs 80% of its funding and manpower at Uganda, Kenya, Ethiopia and Peru. The business climate in these countries is a determining factor in this strategy. Limiting the number of countries results in a sharper focus, more specific knowledge and a more extensive network. In 2011 Agriterra has appointed agribusiness advisors in Kenya and Peru. These two advisors are able to provide the clients there with frequent support and specific know-how, thereby stimulating rapid progress. In 2012 Agriterra will also engage agribusiness advisors in Ethiopia and Uganda.
Clear goals Agriterra’s clients have made promising steps in 2011. “We shall find out in the near future whether the participating businesses will manage to realise their growth ambitions”, says Van Rij. “The goal is that by 2014 our clients will have achieved the following business objectives:
1. sales growth of at least 25%;2. attract an average of €250,000
external capital per business;3. growth of at least 25% in the number
of members or shareholders;4. at least 120 new jobs.”
2011 in figures• Totalnumberofcontracted
clients: 23 • Contributionpledgedby
Agriterra: €1.2 million• Contributionallocatedby
Agriterra: almost €1 million• Numberofproducersreached:
almost 74,000 (27% of them women)
Common features of our agribusiness clients• Atleast1,000registered
producers.• Engagedinpurchasing,
processing, selling and/or financial services.
• Demonstrableandrealisticgrowthambitions accompanied by a need for advice and investment.
Extra capital drives new growthOro Verde (Spanish for “green gold”) is a farmers’ cooperative operating in North-Eastern Peru. Its 1,046 active members mainly produce coffee and cocoa. Agriterra conducted a business analysis to identify the cooperative’s strengths and weaknesses. Oro Verde then received support in drawing up a medium-term financial plan (2011-2016) and a marketing plan for ground coffee. The initiative proved successful, with Oro Verde subsequently receiving a substantial €750,000 injection of working capital from Banco Continental. And the improved marketing activities resulted in space being secured on the shelves of the Peruvian supermarket chain Plaza Vea.
Agriterra | 9
Agriterra assists farmers and agricultural
organisations around the world in their fight
against poverty. This map shows which
countries Agriterra is active in (in orange)
and where remarkable results have been
achieved.
HDI: the United Nations’ Human Development Index (HDI) measures average life expectancy against the birth rate, illiteracy, education and standard of living in a given country or region. The size of the index number represents the position in the world ranking.
By way of comparison:The NetherlandsHDI: 3Population: 16.7 millionLife expectancy: 80.7
Agriterra around the world
Bolivia
HDI: 108Population: 10 millionLife expectancy: 66.6Result:•Establishmentoffirst
commercial school for organic coffee farmers
Peru
HDI: 80Population: 29.4 millionLife expectancy: 74.0Result:•Quinoafarmerssign
worldwide deal with Specialty Commodities
•Andeanfarmers’alpacawool makes its debut on the international fashion scene
Agriterra | 10
DR Congo
HDI: 187Population: 67.8 millionLife expectancy: 48.4Result:•Introductionof
agricultural legislation •CONAPAC(national
farmers’ umbrella organisation) established
Kenya
HDI: 143Population: 41.6 millionLife expectancy: 57.1Result:•Prosperingofdairy
cooperatives
Uganda
HDI: 161Population: 34.5 millionLife expectancy: 54.1Result:•Mobilewashingunits
boost coffee farmers’ incomes
Ethiopia
HDI: 174Population: 84.7 millionLife expectancy: 59.3Result: •Oilseedproduction
increased and improved through training in cultivation and harvesting techniques
Niger
HDI: 186Population: 17 millionLife expectancy: 53.8Result:•Establishmentofgrain
banks increases food security
Jordan
HDI: 95Population: 6.3 millionLife expectancy: 73.4Result:•TheArabworld’sfirst
women’s union with open membership for rural women leasing land
Moldova
HDI: 111Population: 3.5 millionLife expectancy: 69.3Result:•Lobbyingboostsfarm
subsidies by E9.5 million
Vietnam
HDI: 128Population: 88.8 millionLife expectancy: 75.2Result:•Improvedcultivation
and negotiating techniques bring increased mushroom output and 30% higher price
Nepal
HDI: 157Population: 30.5 millionLife expectancy: 68.8Result:•Betterteapricethanks
to good negotiation and improved quality
Agriterra | 11
Initiatives launched by cooperatives and individual
farmers have a greater chance of success if farmers work
together. Joint purchasing of agricultural inputs, increased
production, access to market information and joint selling
enable entrepreneurial farmers to improve their incomes
and give rise to sustainable farming practices. Agriterra
works in partnership with farmers’ organisations with the
aim of reaching their grassroots level and strengthening
cooperation within groups and optimising the services
provided to the members.
Encouraging farmers’ groups to join forces
Better negotiation delivers higher tea pricesMembers of the Tea Sector Service Centre (TEASEC) in Nepal underwent training in negotiating skills and improvement of tea quality in 2011. These training programmes, funded by Agriterra, delivered immediate benefits. Thanks to better tea quality and negotiating techniques, farmers were able to command a higher price. As a result they earned 10 to 15% more per kilogram of tea than in 2010.
Agriterra | 12
Investment in knowledge boosts mushroom growers’ profitsIn Vietnam the demand for mushrooms is high, production is low, and product quality is poor. Mushroom cultivation is an interesting area for farmers since it requires relatively little land. Agriterra brought the farmers’ cooperative Ninh Binh Cooperative Alliance (NBCA) in touch with two Dutch mushroom experts. Having examined the production methods, they offered the mushroom growers practical tips on how to increase their yields and product quality. Armed with this new knowledge, six producer groups within NBCA have succeeded in increasing their output by 61 tons and negotiated a 30% higher price for their mushrooms.
Encouraging farmers’ groups to join forces
Better services to groups“There are a number of basic principles that we apply in our work”, says team manager grass-roots entrepreneurship Frank van Drosten. “Agriterra supports organisations so they can improve the services provided to their members. For example, the formation of groups must result in better incomes for the farmers. Working in groups also strengthens leadership. This in turn improves the groups’ ability to represent the interests of their members.”
Farmers’ group target comfortably exceededBy the end of 2011 our clients reached a total of almost 12,000 farmers’ groups, which is around 3,500 more than at the beginning of the year. We have therefore exceeded our target figure of strengthening 2,500 groups.
Tailoring support to clients’ stage of developmentAgriterra works in partnership with the groups to gradually develop their entrepreneurship, tailoring its support to the stage of development that they have reached.
The majority of the groups focus on increasing their production and work with market players on joint selling. Agriterra supports them in conducting market studies, improving product quality, and strengthening commercial relations and cooperation with key players in the value chain.
Over the next few years Agriterra will continue to concentrate its efforts on increasing production and improving market access.
Economic benefits of group formationAgriterra’s team grass-roots entrepreneurship uses a derivative of the FAO People’s Participation Programme to teach agricultural organisations how they can stimulate their members’ economic development initiatives by forming groups. Members share a common interest and have an incentive to cooperate and support one another. Examples range from joint purchase of animal feed or seed and the procurement of loans to collective selling of agricultural products. Other activities conducted at group level are knowledge generation and the acquisition of agricultural inputs. Agriterra advises its clients to nominate coordinators who will assist the groups. These are volunteers from the groups who provide a link between the agricultural organisation and the groups and ensure that the right services are provided.
Stage of development
Group formation and strengthening
19%
Increasing production 27%
Marketing/market access 35%
Joint economic development initiative
19%
Total 100%
Access to credit 11%
2011 in figures• Numberofnew/strengthenedgroups:
approx. 3,500• Totalnumberofclients:53• ContributionpledgedbyAgriterra:€5.2 million• ContributionallocatedbyAgriterra:€4.4 million• Numberofproducersreached:
more than 255,000 (28% of them women)
Agriterra | 13
Knowledge transfer essential for progress
Visiting the farms of Vietnamese colleagues
In her everyday life, Grieta Gootjes is a pig farmer and chair of the women’s farmers’ group ‘Vrouw en Bedrijf’. Because of this background she was asked to join a visit to Vietnam and share her experiences with the members of Quang Tri Cooperative Alliance (QTCA). For a number of years now, QTCA has been receiving grants aimed at strengthening its member cooperatives’ position in the market. However, insufficient progress was
made. Consequently Agriterra decided to visit QTCA and provide advice on market analysis and business planning. One of the aspects examined was the internal organisation, and in particular the need to take the interests of various members into consideration when setting up a cooperative at local level. To inform the local farmer about market developments Agriterra suggested several useful solutions. “Using our experience from the Netherlands, we give the local farmers practical tips that will boost production. Like castrating piglets at five days of age rather than waiting for three weeks”, explains Gootjes. “We are,
after all, colleagues. And even though the situation is different, we speak the same language and see the possibilities for moving forwards. That is why the farmer-to-farmer contact that Agriterra facilitates is so important.”
Grieta Gootjes: “Agriterra facilitates farmer-to-farmer development cooperation.”
Project description:• Promotionofstudygroups• Practicalsupportforthelocal
groups
Project description:• Improvinglocalfarmers’
standards of living through knowledge transfer
• Adviceoninternalorganisation
Joseph Nkole is national coordinator of the Cotton Association of Zambia (CAZ), which represents the united interests of cotton farmers in Zambia since 2005. For example, CAZ succeeded in negotiating a better price for cotton in 2007. “But we wanted to do more for the local cotton farmers and reach out to more farmers. The farmers had very limited knowledge
of ways in which cotton production might be improved. Consequently CAZ got in touch with Agriterra and a partnership was duly forged”, says Nkole. “Together, we looked for the areas to be improved.” One such area is the need to increase the incomes of local farmers by improving production and market knowledge. Agriterra provides the funding to train field
workers and coordinators, who are setting up study groups where farmers learn how to increase yields, cultivate and improve the soil, and make proper use of pesticides. The groups are also trained in negotiating with traders and reading purchase contracts. “The selling price of cotton has risen by around 40% since this initiative began. In conjunction with improved
cultivation methods, average incomes have quadrupled from 2009 to 2011. Partly as a result of this, the cooperative was able to collect more membership fees. The revenues of CAZ rose by over 14% from €22,816 to €26,062. The financial services provided by CAZ brought substantial improvements in the standards of living of the cotton farmers”, says Nkole enthusiastically.
Agriterra | 14
Kees Veldkamp, a member of the Dutch Beekeepers Association (NBV), visited Bosnia-Herzegovina in November 2011 at the request of Agriterra. “The purpose of my visit was to advise beekeepers on how to set up an umbrella organisation to represent their interests. This is a country with professional beekeepers whose livelihoods depend on the honey harvest. Bosnia-Herzegovina consists of ten federal units (cantons), each with its own Minister of Agriculture and its own regulations. Also the beekeepers have organised themselves at federal level, which is far from ideal when it comes to lobbying and influencing policy at national level”, explains Veldkamp. Consequently the Union of Beekeepers
in Republika Srpska province (UBA) and the Beekeepers Association of Una Sana Canton (SPUSK) want to create an overarching umbrella organisation. This should give rise to greater uniformity within national policy, which is important for the future of the professional beekeeper. But how can this be achieved? The country is divided by religious and ethnic differences, with a war fresh in the memory. It is a question of being patient and showing great empathy in order to forge a dialogue between the different parties. As a “bee man”, Veldkamp speaks to representatives of the various associations. He uses his diplomatic experience as a former military attaché to bring the various parties to the table.
Veldkamp advises the beekeepers on organisational infrastructure, while Agriterra supports them with the practical tools that they need in order to get the organisation off the ground. “I am touched by the way the people are trying to overcome their differences. You might say that the bees are building a bridge between peoples”, says Veldkamp. “Agriterra’s intervention is enabling different ethnic groups to talk to one another again, and even to go on joint study trips.”
Joseph Nkole: “We are better organised and have more profitable cotton production
thanks to Agriterra.”
“Without Agriterra we would not have achieved so much. We are now busy trying to recruit more farmers into local cooperatives. This will strengthen their position in relation to traders, banks and local government.” In addition, CAZ is lobbying the government for greater market and price transparency, an improved credit position for farmers, and a guarantee fund. Joseph Nkole
expresses the hope that Agriterra will provide them with further assistance, based on the knowledge and experience from the Netherlands and from other cotton producer organisations around the world.
Beekeepers forge an alliance in a divided country
Kees Veldkamp: “Agriterra brings the people to the table.”
Project description:• CooperationbetweenDutch
and Bosnian beekeepers• Creationofaunitedpressure
group in a divided country• Organisationaladvice• Practicalsupportintheform
of computers
Agriterra | 15
More involvementCollective lobbying delivers rewards, both direct and indirect. The PGPP method enhances the representational and negotiating capacities of the farmers’ organisation concerned. This approach helps them to identify a position that is based on members’ input. Consequently the proposals receive broad support and the actual needs of the members are reflected.
A question of patienceLobbying requires a lot of time and patience. Agriterra supports the farmers’ organisations throughout this process. Agriterra encourages the organisations to build their lobbying agenda from the bottom up, thereby ensuring that their position is sufficiently strong so that their voices will be heard. In 2011 Agriterra identified organisations that were likely to exercise direct and specific influence on policymakers. At that time it was estimated that eight organisations could influence their national government’s policies. Five organisations succeeded in doing so in 2011, partly by virtue of their strong position within their own region and their extensive
national and/or international network. The aim is that by 2014 funding to the value of €35 million will be available to improve the income position of the local farmer.
Innovation strengthens farmers’ organisations“In order to survive, it is essential that farmers and their organisations continue to innovate. Constant innovation is needed to ensure food security and the farmers’ livelihoods. This is made possible by creating space for ideas and underpinning them with knowledge and money from within and outside the organisation”, says Van der Pasch.
Agriterra’s innovation policy is based on the People, Planet, Profit approach, which hinges on the sustainable production of food. These three pillars must be in balance in order to feed the world’s population, now and in the future.
Giving farmers a voice in agricultural policy
“Agricultural policy and the market influence
farmer development. If the farmers’ situation is
to improve, it is important that their voice should
be heard”, says team manager advocacy and
innovation Nellie van der Pasch. “This requires
good negotiating skills and representation
of as many farmers as possible. We support
advocacy organisations by providing training and
helping them to draw up a relevant advocacy
agenda using a method known as participatory
generation of policy proposals for advocacy
(PGPP).” This systematic approach combines the
needs of farmers with the knowledge of external
experts and translates these two elements into
policy proposals.
Agriterra | 16
2011 in figures• Fundsmobilised:€9.75 million• Totalnumberofclients:50• ContributionpledgedbyAgriterra:€3.6 million• ContributionallocatedbyAgriterra:€3.4 million• Numberofproducersreached:
more than 380,000 (59% of them women)
West African livestock farmers consulted on developmentRBM (Réseau Billital Maroobé) is an umbrella organisation representing West African and nomadic livestock farmers. Using the PGPP methodology, Agriterra is helping RBM to incorporate input from farmers into the lobbying agenda. In doing so, the organisation increases its support base both among the farmers and in dealings with governments and public organisations. Thanks to this lobbying work, livestock farming is now an established issue on
the strategic agenda of the Economic Community of West African States (ECOWAS). During implementation of the agricultural investment programme, RBM represents the nomadic livestock farmers’ interests at regional level within the ECOWAS working group and at national level in member states. This working group is currently also looking at the possibilities for investment in livestock farming within the ECOWAS action plan for 2011-2020.
Agriterra | 17
Financial Report 20112011: reorganisation and a new phase of Farmers Fighting PovertyFor Agriterra 2011 was, in several respects, a year of new beginnings. The restructuring undertaken within the organisation brought a sharper focus, which resulted in many changes. Agriterra focused more on entrepreneurship among farmers in developing countries and their organisations than in the past. In addition, the second phase of Farmers Fighting Poverty also brought changes, to which both Agriterra itself and its clients have had to adjust. Consequently the estimates given in the budget (drawn up in 2010) sometimes differ from the amounts actually reported.
Breakdown of expenditure by region (2011)
Breakdown of donations from sources other than the DGIS in 2011
Total amount: €1,575,504.00
Expenditure in 2011Agriterra contributed just over €9.75 million to various client projects in 2011. The clients themselves contributed approximately €6 million, giving a total spending of €16 million on projects within the Farmers Fighting Poverty programme.
Nearly three-quarters of the project funding went to agricultural organisations and cooperatives in Africa.
Latin America
International
Europe
Asia
Africa
Other donations
Investment assets EU Food Facility (2011)
IFAD (2011-2012)
PSO (2011-2012) DGD-TRIAS (RD2011)
AgriCord (Formin) (2011)
EU Paysans européens (2011-2012)
Bal
ance
shee
t(a
fter
app
ropr
iatio
n of
resu
lts)
Am
ount
s in
eur
os ASSETS 31-12-2011 31-12-2010
FIXED ASSETS
Tangible fixed assets 149.273 205.095
Financial fixed assets 8.798 9.488
Total fixed assets 158.071 214.583
CURRENT ASSETS
Receivables 113.636 98.407
Prepayments and accrued income
100.804 113.858
Conditional project funding 938.697 57.905
Liquid assets 8.301.364 2.694.793
Total current assets 9.454.501 2.964.963
Total assets 9.612.572 3.179.546
LIABILITIES 31-12-2011 31-12-2010
RESERVES AND FUNDS
Reserves
•Continuityreserve 1.268.703 1154.715
•Appropriatedreserves 205.384 105.384
•Revaluationreserve 432 432
Funds
•Appropriatedfunds 52.077 30.200
•Expertsfund 26.995 21.642
Total reserves and funds 1.553.591 1.312.373
SHORT-TERM LIABILITIES
Other liabilities 302.743 357.525
Accrued liabilities 163.843 89.832
Conditional project commitments 7.592.395 1.419.816
Total short-term liabilities 8.058.981 1.867.173
Total liabilities 9.612.572 3.179.546
Agriterra | 18
Government agencies are the principal donorsThe Directorate-General for International Cooperation (DGIS; Dutch Ministry of Foreign Affairs) is the principal funder of the Farmers Fighting Poverty programme. The total budget for the period 2011-2014 amounts to just over €50 million, of which €8.3 million was utilised in 2011. Furthermore, Agriterra managed to mobilise nearly €1.6 million in additional funding for the programme in 2011. These funds are mainly derived from government agencies and donations. The total achieved comfortably exceeds the €1 million that had been anticipated.
Agriterra in 2011•Projects in progress: 154•Numberofclients:126 organisations
in 42 countries
•Clients’owncontribution: €6 million
•Numberofproducersreached: over 700,000 (44% women) 95% of them at local level
•Numberofexpertson working visits: 236
Actual 2011 Budgeted 2011 Actual 2010
INCOME
Income from own fundraising and third-party activities 72.640 50.000 172.573
Subsidies from third parties 1.439.915 1.000.000 935.560
Subsidies from governments 8.304.322 8.375.000 5.412.593
Income from investments 102.427 60.200 58.679
Other income 34.074 32.800 31.849
Total income 9.953.378 9.518.000 6.611.254
EXPENDITURE
On achievement of objectives:
•FarmersFightingPovertyprogramme 9.253.000 8.737.885 5.740.308
•EU,IOBandPSO 583.888 0 891.264
•Appropriatedreservesforprogrammes 33.162 50.000 18.911
•Deferredexpensesfromprogrammesin2006 0 0 0
Total expenditure on achievement of objectives 9.870.050 8.787.885 6.650.483
Cost of generating funds:
•Costsofownfundraisingactivities 0 0 0
•Costsofthird-partyactivities 0 0 0
•Costofsecuringgovernmentsubsidies 0 0 0
•Investmentcosts 1.809 1.000 765
Total cost of generating funds 1.809 1.000 765
Management and administration:
•Staffcosts 2.296.240 2.151.900 2.071.439
•Premisescosts 191.904 210.000 217.917
•Generalexpenses 261.074 361.800 386.151
•Activity-relatedcosts 5.352 10.500 3.589
•Chargedtoobjectives -2.914.272 -2.086.771 -2.815.175
Total management and administration costs -159.702 647.429 -136.079
Total expenditure 9.712.157 9.436.314 6.515.169
Surplus (+), deficit (-) 241.221 81.686 96.085
“Charged to objectives” consists of an allowance of €2,105,587 for chargeable hours in relation to Farmers Fighting Poverty 2011-14, the settling of Farmers Fighting Poverty 2007-10 to the amount of €204,000 and a general handling fee of €604,685.
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Agriterra | 19
Agriterra
Willemsplein 42
6811 KD Arnhem
P.O. Box 158, 6800 AD Arnhem
The Netherlands
Telephone 0031-26-4455445
Website: www.agriterra.org
E-mail: [email protected]