Edamame Development Program

Transcription

1 Edamame Development Program A funded initiative to grow a new crop industry in South Africa, leading to improved food security and job creation Progress and Potential 22 January 2016

2 Organisational detail - Managed under the Newlands Mashu Community Development Centre. Is a registered Public Benefit Organisation (PBO). Registered Not for Profit Co. (NPO) 1995/003138/08 Established primarily to develop opportunities for emerging farmers & disadvantaged communities with initial seed capital from Catholic funding bodies. Now based at Mariannhill Monastery, Pinetown, KZN. 10Ha Research farm & offices with a low-care GlobalGAP* & HACCP* audited processing facility. * Audit 26 Jan 2016

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6 Organisational detail - continued Two core components of the holding company. Aggregation Agrihubs (supporting small-scale growers) Edamame Development Program (EDP) Funders include: The Jobs Fund; ethekwini Municipality (EDP) NPCCimpor, Lafarge Aggregates, National Lotteries Commission, ethekwini Municipality (Agrihubs) Research partnerships with UFS, UFH and DUT Local and international specialist Edamame consultants

7 Context (emerging farmer sector in SA) SA has a history & legacy of skewed agriculture development policy compounding current farming sector challenges Growth of this sector is affected by urbanisation & limited role-model farms & farmers - especially youth Fragmented focus & often unsustainable delivery methodologies of existing role players & service providers (public, private and NGO s) Current & long term drought challenges

8 Context - continued Varied size of farmer initiatives (>0.1Ha community gardens to +10Ha individually farmed lands) all require separate & focused intervention strategies. Typical challenges on the ground: Challenge of means of production (incl. equipment) Lower group collective commercial skills, capacity & quality farming experience Challenge to access finance, and ability & commitment to service loans Market access Poor plannning Generally very low levels of output

9 Context - continued HOWEVER We have a massive potential to succeed in this sector through good planning and the commitment of ALL service providers & ALL role players to unlocking latent synergies

10 Edamame Development Programme background A pilot program was funded by ethekwini Municipality (2011) Objectives- to determining: Whether imported Edamame variaties could actually be successfully propagated & grown in KZN. If satisfactory market demand existed Potential uptake/appetite by emerging farmers (commercial and homestead food security) Develop a detailed business plan

11 EDP background continued Based on the pilot success, a further grant was made available from ethekwini Municipality in September 2012 & The Jobs Fund (a programme of National Treasury) in (Two growing/learning seasons). Targets: Establish the foundation for a new industry that can stimulate emerging farmer sector production of a niche crop INCLUDING off-season support. Facilitate the creation of 507 Full time Jobs, 3,200 Part time Jobs & 3,091growers trained

12 Edamame (pronounced ed-ah-ma-me) Superior protein source with significant agriculture, environmental and health qualities a superfood What does it mean for South Africa & KZN? An opportunity to meet national demand and compete internationally - export opportunities A vehicle for broader but localised Agro-processing & value adding benefitting emerging growers Jobs (improved opportunities for Emerging Farmers accessing the value chain through the EDP) Improved nutrition and food security for vulnerable communities through informal small-grower initiatives.

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16 Edamame (pronounced ed-ah-ma-me) What does it mean for our Emerging Farmer partners & contract growers? Early market access, to high-value niche crop production opportunity including processing opportunities for other crop types. Preferential off-take agreements (dependending on quality) with EDP. Specific technical crop, market and logistics support through the EDP. Broader support including capacity development, farm planning, institutional support & market introductions.

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21 Progress 2012 Secured support form ethekwini Municipality Supplied small volumes of fresh pods to Food Lovers Market & engaged consumer awareness 2013/14 season First season presented challenges but just managed to get a crop in the ground (planted on Christmas Day) Registered 4 edamame varieties on the SA National Plant Database First shelled supply through through Metro Farms to FLM (Central Depot) resulted in significant challenges

22 Progress 2014/15 season Trialed fresh bulk sales and poor frozen pods at Oxford Supply partnership with Fresh-to-Go (Woolworths SA Agents) for fresh shelled product +1.2T Shelled and sold in Woolworths Its possible!! * Audit 26 Jan 2016

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25 Progress 2015 Seed bank stabilised (Non-GMO) expensive! Low Care Facility upgrade completed HACCP and GlobalGAP Compliant* National planting trials completed New varieties established Research partner & farmer partnerships strengthened

26 Progress 2015 Market & processing partnerships strengthened Export registration approved Small-scale growers planted Edamame; 60 new Emerging Farmers contracted; 35 Ha planted Woolworths order secured for 50T Frozen Pod and 3T fresh shelled 2016

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29 Progress 2015 National snack supplier agreement for roasted product secured (12T) First international queries received Variant development confidence First small-scale growers sales of mature seed back to program (part of informal market growth) Jobs - Achievements against targets: 91% Full time Jobs, 22% Part time Jobs, Training 114%

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34 Challenges Emerging Farmer supply & production challenges New Crop in SA No local knowledge (technical challenges machinery & processing) 3 Month - Seasonal production challenge require northern area grower partners for annual production IQF currently outsourced to partner facility in Vryheid (600Km round trip) costs

35 Challenges cont.. Seed development shatter resistance varieties requires further research Identifying industry support partners BBBEE level 1/CSI Research Farm Soils Phase 2 capital requirements and suplimentary operational capital A good 2016 challenge demand currently exceeds supply

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37 Potential Door opened for other niche crop types secondary industry development Emerging Farmer opportunity Very good relationships established with key agents, processors & retailers Exports (Fair Trade) Edamame continues to feature on international trends platforms (health, snacks and protein sectors) Growth in International demand

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39 Potential cont.. Can compete with International product landed price (one variant currently) Agro-processing investment in localised Freezing Facilities - IQF) New Product Development (Coffee, beer, pasta etc) Nutrition impact through growth of Informal markets & homestead/community garden growers

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41 The key wish list Growth Capital - Expansion equipment (Phase 2) partnerships/ grants R&D and business partnerships Emerging Farmer development support/partnerships Further Inter-governmental and international research sector relationship facilitation (BRICS) National product distributors Volunteers with skills and passion

42 Learnings The enormous widespread challenges facing the Emerging Farmer sector and the difficulty moving towards commercialisation, will requires sustained long-term investment and commitment Building good farmer & supplier relationships can be achieved by identifying & responding to key farmer needs through a mutually respectful approach. Hand-up not hand-out Industry development requires a go big or go home attitude Retailers & processing partners have a short fuse but can tolerate newbees thanks!

43 Acknowledgements ethekwini Municipality (fantastic teams at EDU & MILE) The Jobs Fund Existing partners, markets and consumers The EDP team of believers & the Board of Directors The Farmers and Contract growers

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48 THANK YOU