3 rd International Conference on Linking Markets & Farmers: Linking Egyptian Smallholders to EU Markets: A Case Study

Transcription

1 3 rd International Conference on Linking Markets & Farmers: Linking Egyptian Smallholders to EU Markets: A Case Study Dr. Thomas J. Herlehy 12 March 2007

2 Who is CARE? International NGO Established in 1945 in USA Projects in 60+ countries In Egypt since 1954 Focus today on Upper Egypt in the agricultural, natural resources and education sectors.

3 Linking Egyptian Smallholders to EU Markets: A Case Study 1. Approaches used by CARE & partners. 2. Results to date. 3. Lessons learned.

4 The Agricultural Exports and Rural Incomes Horticultural Grant: USAID-funded project $18.5 million September 2003 September 2007 Purpose: to enhance the livelihoods of smallholders in Upper Egypt by enabling them to participate in the high-value export chain for fruits and vegetable and medicinal and aromatic plants. Implemented by CARE and our four partners: UC-Davis, ACDI/VOCA, NVG and EQI.

5 EL-SHAMS TARGET AREAS 9 3 Governorates 1000 km Nile River Regional Offices: Beni Suef Assuit Qena

6 The Approach CARE identified 105 progressive farming communities in Upper Egypt to form member-based, service oriented Farmer Associations (FAs) registered as NGOs. CARE and the FAs sign an agreement identifying mutual roles and responsibilities. Board & Committees: Volunteers

7 The Approach - 2 CARE in-kind donation of office equipment to 105 FAs. CARE trains FA leaders and members computer skills apply modern technology operate FA and farms as businesses.

8 The Approach - 3 CARE in kind donation of agricultural equipment to 105 FAs. Plastic containers. Weighing Scales. Sifters.

9 The FA is the LINK Farmer Associations the means to link dispersed small, land-holding farmers to EU markets. CARE identifies buyers and exporters and facilitates meetings between them and the FAs in order to make forward contracts for high-value crops. Generic forward contract used by FA and buyers in negotiations.

10 The Approach - 4 Training and technical assistance to enhance and strengthen the communication and technical skills of more than 300 MALR Horticultural Extension Agents (HEAs). Elite HEAs trained at UC- Davis and within Egypt

11 The Approach - 5 Training and technical assistance to FA member growers in order to meet export high quality standards (EurepGAP). Production, Harvest & Postharvest handling.

12 أحمد عبدالمنعم حسن Crop Manuals Squash Cover Example د. أ. الا ستاذ بكلية الزراعة - جامعة القاهرة نشرة إرشادية أعدت عن طريق شرآة وادى النيل للتنمية الزراعية لمشروع الشمس/ هيي ة آير الدولية مصر/هيي ة المعونة الا مريكية. Squash Production Traditional Method, Drip Irrigation Method, and under Plastic Tunnels Ahmed A. Hassan Professor of Vegetable Crops, Faculty of Agriculture, Cairo University An extension bulletin prepared by NVG for EL SHAMS Project, CARE International-Egypt, funded by USAID. 2005

13 Crop Manuals Already Prepared Fruit and Vegetables Fruits and Vegetables Medicinal, Aromatic, Herbs and Spices Artichoke Okra Anise Asparagus Onion Bulb and Green Aromatic Plants Broccoli Potatoes Basil Brussel Sprouts Pumpkin Caraway Cabbage Red, White, Chinese Radish Chamomile Capsicum Red, Yellow, Green Squash (18 varieties) Coriander Celery & Lettuce Sugar Peas Cumin Chicory Sweet Corn Fennel Chinese Mustard Sweet Onion Hibiscus Eggplant Tomatoes Cherry, Cluster Lemon Grass Mushrooms Marigold Melons Galia, Charantay, Majenta, Watermelon Baby Vegetables Marjoram Garlic Baby Squash Mint, Peppermint, Spearmint Grapes Baby Carrot Nigela Green Beans Baby Eggplant Parsley

14 Results to Date 6,500 smallholders cultivating more than 9,200 feddans of land under forward contracts. An increase of 47% in growers and 53% in land from last year.

15 Results to Date: Farmers and Buyers 92 FAs working with 109 buyers 257 forward contracts 19 fruit and vegetable crops; 16 medicinal and aromatic plants; 58 repeat buyers, working with 71 FAs in sustainable business relationships: TRUST.

16 Results to date: Smallholder Exports From 7,700 MT (2005), exports grew by 80% to 14,000 MT (2006); From a farm-gate value of LE 15 million ($2.63 million) in 2005, exports grew by 128% to LE 34.0 million ($5.96 million) in 2006; Exports are 56% of total sales volume (MT) and 71% of the value of farm-gate income (LE) earned by smallholders growing under forward contracts (2006).

17 Results to Dates: Smallholder Incomes Total volume of high-value sales for is about 25,000 MT with a farm-gate value of more than LE 47.7 million ($8.36 million). Farmers earn an average net farm-gate income of LE 5,200 ($912) from highvalue crop sales.

18 Results to Date: Illustrative Crops 4500 MT of green beans exported with a value of LE 5.5 million paid to growers; 1700 MT of bulb onions exported with a value of LE 1.7 million paid to growers; 1525 MT of grapes exported with LE 7.3 million paid to growers; 1000 MT of spring onions exported with a value of LE 3.0 million paid to growers;

19 Results to date: illustrative crops 851 MT of tomatoes exported with a value of LE 1.3 million paid to growers; 650 MT of cantaloupe exported with a value of LE 3.1 million paid to growers; 616 MT of fennel exported with a value of LE 2.3 million paid to growers. Processed food companies: okra and dehydrated onions.

20 Lessons Learned Farmers: Don t plant a seed unless you know who will buy what you will grow. FA and growers: Honor the contract maintain production levels and quality standards. Buyer: communicate openly and honestly with your growers.

21 Lessons Learned 2 FA do not depend only on one buyer. Make multiple contracts for the same crop in order to reduce risk. Farmers grow more than one high-value crop.

22 Lessons Learned 3 Improved access to post-harvest handling centers (e.g. pre-cooling and cold stores) will improve bargaining position of FAs and farmers. Grow crops that can be dried and sold when prices return to medium or high levels e.g. medicinal and aromatic plants (herbs and spices).

23 Lessons Learned 4 Know your market and your consumers. Share the risks and share the rewards. Communicate openly and honestly. Be a partner of choice build sustainable business relationships through honesty, transparency and trust. CARE - Egyptian Exporters Delegation in Germany (Fruit Logistica February 2006)

24 Linking Egyptian Smallholders to EU Markets: A Case Study Thank you! Dr. Thomas J. Herlehy 12 March 2007