Agri and Co-operative Training and Consultancy Services Ltd

2ND REGIONAL CO-OPERATIVE VALUE CHAIN SYMPOSIUM REPORT

NOVEMBER 2011

Theme: Innovation Bridging the Gap in Value Chains

Held on September 29th 30th, 2011 Nairobi,Kenya.

Anchored on the goals of

The United Nations International Year of Co-operatives 2012

2nd Regional Co-operative Value Chain Symposium Report

1. Opening Ceremony

The two-day symposium started with pomp and celebrations through song, dance and poetry by Youth involved in Agriculture and Co-operatives. Led by the Chief Guest, Hon. Linah Chebii Kilimo who is the Assistant Minister in Kenyas Ministry of Co-operative Development and Marketing, the speakers applauded ATC for making the 2nd Regional Cooperative Value Chain symposium a reality with impressive results in terms of individual participants, countries represented, papers presented, Youth and Womens participation, exhibitors, sponsoring organizations and international appeal. In comparison to the 1st value chain symposium held in 2010, it was noted that in the 2nd Symposium: (i) Participating countries increased from three to thirteen including Ghana, Tanzania, Uganda, Benin, Rwanda, Germany, Ivory Coast, The Netherlands, Senegal, Nigeria, New-Zealand, Kenya and South Sudan; Individual participants increased from 100 to 200; Exhibitors increased from 10 to 19; The number of sponsors increased from five to ten. Value chain financing and Youth participation in co-operatives and rural development was placed at the centre of the symposium.

(ii) (iii) (iv) (v)

The Second Regional Co-operative Value Chain symposium addressed specific issues which focused on special

interests of participants and allowed many presenters to highlight results, insights, novel and transformative tools in short lightning talks. 2. Symposium objectives The general objective of the symposium was to provide a platform for learning, knowledge exchange, networking and creation of collaborations among the diverse actors and service providers in the agricultural value chains. During this forum innovation on value chain financing and youth involvement in co-operatives and rural development was the focus of the event. Specific objectives:
a) Realizing economies of scale through collective efforts For many value chain actors, this is the biggest stumbling block to advancing performance of their respective value chain. This applies to small holder farmers, producing small quantities of crop, a processor with limited processing capacity or an individual trader trying to access the market. Forming groups, associations or co-operatives can help them to realize economies of scale. Leadership in Co-operatives can be a driving force for value chain promotion or the result of successful value chain promotion. In which way can we create an environment for leadership respecting the Co-operative values? Ethics, governance, social and ecological awareness, and leadership skills are essential to fully 2nd Regional Co-operative Value Chain Symposium Report
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utilize the potential of Co-operatives in value chain promotion. Are we preparing the next generation of co-operative leaders? What can be done to involve the youth, learning institutions and parents so that future generations can live in economic and social freedom?

b) Reaching out

Many public and private institutions have identified value chain promotion as a main opportunity to tackle poverty, food insecurity and to address environmental and social issues. How can these institutions be supported to fully benefit from the opportunities of value chain promotion? What are the experiences with institutionalizing value chain promotion; should it be integrated in day to day work or added on top? How can we make sure that tomorrow there is still enough farmers and workers capable to continue to work in the value chain? Can we create opportunities for young rural people to work in or along the value chain? How can the efforts be coordinated to utilize synergy effects? How can learning institutions integrate the value chain approach in their curricula? What innovative finance models are available? How did you overcome financial constraints while upgrading your enterprise? What experiences have been gained in other countries?

c) Reaching deeper

In order to achieve sustainable development of value chains we have to look beyond the immediate business interests of value chain actors and service providers. Climate change is real and interventions should be climate neutral and mitigate the effects of climate change. Which tools have been developed to assess the impact of value chain promotion on climate change? How do we measure the carbon footprint of our product? Have gender issues, labor rights and environmental aspects been considered while planning the value chain upgrading

3. Innovation- Bridging the gap in value chains

Under the theme of Innovation - bridging the gap in value chains, speakers made the following key observations: (i)
The symposium was very helpful to me as a farmer and as a leader of a farmers grassroots organization. The presenters were all knowledgeable and relevant in their presentations Mr. Charles Aritho, Kiirua/Naari Dairy Farmers Community-Based Organization (CBO). Meru County, Kenya

Increased Youth participation in agriculture and Co-operatives is the surest way to profitable and sustainable value chains at a time when, progressively, farming organizations are dominated by an ageing membership and leadership;

and

farmers

(ii)

Agriculture remains the mainstay of the economies of most East African countries but productivity remains lower than the rest of the continent; Innovative ways must be found to strengthen and develop more effective producers, service providers, and consumers in the agricultural value chains; 2nd Regional Co-operative Value Chain Symposium Report
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(iii)

(iv)

Increased value addition in agriculture provides decent work, creates jobs and industries in rural areas and mitigates against rural-urban migration; Making the ATC Value Chains Symposium an annual event will enhance sharing of experiences, innovations, and best practices between farmers, service providers, researchers, academics and practitioners of different disciplines within Africa and beyond.

(v)

4. Management of the Symposium Proceedings and Exhibition

The symposium had exciting presentations but the live The symposium was structured in such a way that key testimonies, especially those of the Youth, made it unique speakers made timed presentations of their papers in and the best of all symposia that I have attended across plenary sessions followed by a question and answer Africa. It was also unique in the manner time was kept session. The moderator ensured time is kept and issues and the programme followed to the letter Mr. David remain focused. Theoretical concepts were well balanced Nyameino. CEO, Cereal Growers Association, Kenya. with practical experiences on the ground and support services available. Participation of Youth and Women was highlighted in most segments of the symposium to underscore the significance of their participation in the long term success of value chains. Exhibitions were on-going throughout the symposium in addition to special sessions that were set aside to allow participants time to see, learn, make contacts and buy merchandize or place orders.

5. Symposium Proceedings The proceedings for both the first and second days were divided into four main blocks comprising of plenary presentations with Questions & Answers, breakaway sessions, case studies in form of light talk appetizers, and visits to exhibitions tents. 5.1 Day 1: Morning Session The main issues discussed on the first day during the morning session were around successes and innovations. These were covered under the following four plenary presentations: The co-operative business model; Financing value chain development; CAADP, an Africa owned value chain development; and, Champions to drive change. The key conclusion from these presentations and discussions were that: (i) The notion by some people that the Co-operative business model is outmoded and inefficient was disabused, its empowering nature affirmed, and attested to the fact that Co-operatives have stood the test of time including surviving better than multinational conglomerates during the recent global economic crisis; Urgent need was identified to intensify efforts to make farmers professional and make farming profitable, bankable and sustainable. Systematic capacity building and mentoring was recommended noting that organizational success is highly dependent on its internal organization, supply and market, agricultural risk and strength of networks and strategic partnerships. Also recommended was the need for organizations to enter into financing partnerships and create linkages between producers, 2nd Regional Co-operative Value Chain Symposium Report
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(ii)

processors, service providers and consumers in order to solve the current widespread challenge in financing working capital, asset finance, and risk insurance in agricultural commodity value chains. (iii) African countries were asked to embrace more the innovations by Africas own value chain approach of the Comprehensive Africa Agriculture Development Programme (CAADP), which has a membership of 25 countries, to hasten commercialization of agriculture, increase agricultural productivity by at least 6% and achieve food security and meet MDGs by 2015 in line with the Maputo Declaration of 2003.

5.2 Day 1: Afternoon Session The afternoon session during the first day was dedicated to focus group discussions in four break-away sessions based on interest-groups. The four break-away sessions were organized around topics clustered under the following four thematic areas whose outcomes were later presented and discussed in plenary: Innovations in resource mobilization at grassroots level; Corporate project innovation at grassroots level; Youth in Co-operatives and rural development; and, Innovations in mainstreaming value chain upgrading strategies.
Learning about the different opportunities for value chain financing through Co-operative Bank and Cooperative Insurance Group was an eye opener for me Laetitia Sossou, GIZ/Economic Development Programme, Ivory Coast.

Each break-away group had rich presentations and representation from different African countries to wide sharing of innovations, experiences, expectations and good practices.

facilitate

The key conclusion from these presentations and discussions were presented in form of presentations that are available from ATC on request. 5.3 Day 2: Morning Session

PowerPoint

The morning of the second day was dedicated first to plenary presentation of the outputs from the break-away sessions and later presentations by value chain support institutions and service providers. The following are the four plenary presentations: Market outlets for co-operatives; The role of co-operatives in value chains to achieve Kenyas Vision 2030; Youth empowerment; and, Innovative solutions to farming.

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The following were the main conclusions and recommendations from the discussions generated through the above presentations:
Agriculture in Africa has no future if the Youth are neglected along the value chain. This symposium by ATC-Kenya is very remarkable that it showcased successful Youth enterprises in agriculture; I have greatly benefitted from it as a young and successful agribusiness executive. I am sensitized and highly motivated to go back to my country Ghana with singular focus of organizing the youth to pursue agriculture as a business Mr. Benjamin Asare. Technical Advisor, Ghana GIZ/SCB.

Individual and organized groups such as co-operatives will always find good market outlets if they produce and market high quality products especially if they develop a market niche for traditional farm produce that attract changing lifestyle needs; Youth can and have shown interest in agribusiness if they are properly mentored and supported to access the necessary skills, finance and are also provided with creative secondary youth activities such as sports;

Co-operatives are well aligned with the three pillars of Kenyas Vision 2030 which are social, economic and political since they are anchored on positive social, economic and political values. Therefore, Co-operatives are compatible with any countrys social, economic and political development agenda if properly utilized; Innovative farming systems and partnership development is providing many farmers with alternatives to rain-fed agriculture through use of farmers kits that include greenhouses, quality seeds, fertilizers, pesticides and drip irrigation systems. 5.4 Day 2: Afternoon Session The afternoon session was divided into the following three sections: Wrap up of the morning sessions; The Market Place; and, Closing cocktail.

5.5 The Market Place The nineteen exhibitors present displayed a variety of services and merchandise ranging from farm inputs, incomegenerating projects by young people, environmental conservations projects, agricultural productivity programmes, non-rain-fed farming systems, institutions and companies providing specialized We all could profitably exploit the services such as training, banking and financing, insurance and many contacts made at the symposium and exhibition consultancy.
Juergen Koch. GIZ, South Sudan.

Individual participants who had a successful story to tell participated market place by displaying their information on pin boards and market goers.

in the responding to enquiries from interested

Visitors and customers were well received and had ample time to engage the exhibitors learn, exchange contacts, buy merchandize or make orders.

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Conclusions and Recommendations

The symposium concluded on a high note of satisfaction and Make agriculture attractive to our young optimism by the participants and the organizers. The event generation by showing them that it is fun and was rated highly successful whose business. This is the key lesson that I have taken objectives were met. The back home Mr. Stefan Kachelriess-Matthess. lessons learnt enlightened participants and provoked GIZ/ACI/COMPACI, Accra, Ghana. them to go back to their respective developmental ventures and enrich programmes, spur greater interest in the value chain approach, affirm the benefits of the co-operative business model and emphasize the need for urgent action to enhance the participation of Youth in agriculture and the leadership of famer-based organizations. Challenges in value chain development were clearly brought out with the following recommendations: There is need for attitude change towards agribusiness and entrepreneurship. There should be mentorship programs for the Youth who venture into agribusiness. The Youth need to realize that innovative ideas are the starting point for change. There is need to look at holistic approach to assuring food safety and quality through coregulation. This relates to PPPs. All areas in agriculture will be impacted by climate change and therefore we need to adapt. It should therefore be an integral part of VCD approach. There is need for adaptation of a systematic and reliable tool for VC assessment There is need to enter into financing partnerships and create linkages between producers, processors, service providers and consumers

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Annex 1: 2ND REGIONAL CO-OPERATIVE VALUE CHAIN SYMPOSIUM PARTICIPANTS FEEDBACK

Date: Course: Venue: Participants: Area of evaluation

29TH SEPTEMBER TO 30TH SEPTEMBER,2011 RCVCS II Co-operative Bank Management Centre 200 Average rating by 31 Key participants

How were presentations

4.3

1 = very poor, 5 = very good 1 = very poor, 5 = very good 1 = yes; 2 = no 1 = very poor, 5 = very good 1 = very poor, 5 = very good

Break away sessions( How did you find choice of topics) 3.9 Moderation done to your satisfaction Comment on choice of venue How were the meals? 1 4.1 4.1

General Comments Positive (97.3% of the respondents) Well organized Excellent customer care, marketing at both the hall 7 exhibitions Good progress

Need for improvement Keep it up include accommodation to avoid lateness Well organized, consider NRB as avenue Next time, invite larger figures of corporate to co-operatives Well organized, enhance networking by including the name of the org. on the tag Have more youth participating Require more awareness so that many participants come on board Consider residence for those without means

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Annex II Organizations that attended No.

Name of Organization
1 APY 2 3 4 5 Programme Development Economique En Milieu Rural MAWACOM INVESTMENT Hamusavi Mashroom G.CS LTG Millennium villages in agriculture

6 Sustainable Economic Development in Nigeria (SEDIN) Program 7 Self employed/ Consultant 8 Ministry of Agriculture 9 10 11 12 13 14 15 Sector Programme Social- and Environmental Standards Techno serve ICCO (International Cocoa Organization) Agri Profocus MOCD & M Amiran Kenya Innovation Empowerment programme

16 Central Deposit Taking Micro-finance Ltd 17 Innovation Empowerment programme 18 CMA/WCA (CAADP PILLAR 2 LEAD INSTITUTION) 19 Fore Finance 20 KUSCCO LTD(Kenya Union of Savings & Credit Co-operatives 21 Lukiko Consulting Trust 22 Private Sector Youth Federation 23 PSDA (Private Sector Development Services 24 Africa Lead 25 Science Africa Media 26 IEP-ONE HEN CAMPAIGN 27 28 29 30 TATRO/ATC Co-operative College of Kenya Kenya Agricultural Commodity Exchange Limited Hamusavi Mashroom G.CS LTG

31 century Deposit Taking Microfinance 32 Community Development Trust Fund 33 Amiran Kenya 34 Solidaridad East & Central Africa Expertise 35 ACDI/VOCA 36 Fore Finance 37 ECCOS Economic Consultancy Services) 38 Cereal Grower Organization of Kongwa 2nd Regional Co-operative Value Chain Symposium Report
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39 Farm Africa 40 KARI, machakos 41 Bukura Technical Inistutute of Agriculture & Technology 42 43 44 4 46 47 48 49 50 51 52 53 54

Kenya Coffee Producers Association Mutira F.C.S LTD

Bunyala Fishermen Co-operative Society AFA FCU LTD Niko Farm Ministry of Agriculture EAAPP CIC MVP (Millennium Village Project) Teke Teke Services Swedish Cooperative Centre AbSS/FAO

Annex III: Speakers

NAME OF THE SPEAKER 1. Gideon Muriuki 2. Nelson Kuria 3. Abraham Sarfo 4. Kimberly Smith 5. Gituro wainaina 6. Joseph Mutua 7. Stefanie Koenen 8. Evince Yegbemey 9. Charles Kwame Sackey 10. Benjamin Asare 11. Margret Will 12. Njambi Kibe 13. James Makini 14. Stefan KachelriessMathess 15. Arshfod Njenga 16. George Oballa 17. Jonathan Ciano 18. Luisa Gikonyo 19. Yariv Kedar 20. Beth Mwangi 21. Vava Angwenyi

ORGANIZATION Co-operative Bank CIC CAADAP(Comprehensive Africa Agriculture Development Plan) CAADAP(Comprehensive Africa Agriculture Development Plan) Vision 2030 Techno Serve Coffee Initiative GIZ(Pro Agri Benin) GIZ(Pro Agri Benin) GIZ(Market Oriented Agricultural Program, Ghana) GIZ ( Sustainable Cocoa Business) GIZ (Sector Project Agricultural Trade ACDI/VOCA (Co-operative Development Program) Innovation Empowerment Project GIZ ( Gesellschaft Fuer Internationale Zusammenarbeit) GIZ ( Gesellschaft Fuer Internationale Zusammenarbeit) ForeFinance Uchumi Private sector youth federation Amiran Ideal Matunda Vava Coffee

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22. Dr. Adrian Mukhebi 23. Pauline Githugu 24. Eberhard Krain 25. Gladys Maingi

KACE( Kenya Agricultural Commodity Exchange) Century Microfinance GIZ ( Gesellschaft Fuer Internationale Zusammenarbeit) GIZ ( Gesellschaft Fuer Internationale Zusammenarbeit)

Annex IV: List of Exhibitors

No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Exhibiting organizations.
ATC Co-operative College Co-operative bank CIC CGOK Tanzania One hen Project Vava Coffee Amiran SOLIDARIDADS KCCA/Othaya farmers Agri- hub: Agri pro focus Fish Association- PSDA KEMPMA-PSDA National Potato Council-PSDA Dairy Goats PSDA ISAK PSDA FTNOAK- PSDA KEVIAN - PSDA Fore finance

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Annex V: Symposium Programme Outline

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