Support to Business Organisations and their Access to Markets (BOAM)

Achievements

 
Introduction  [top]

The BOAM Programme will shortly wind up its pilot phase and get into expansion phase counting on its achievements and the lessons taken form the former. The pilot phase of the programme has promoted four value chains namely: Oilseeds and Edible Oil, Honey and other Bee Products, Milk and Dairy Products and Perennial Crops with specific focus on Pineapple.

The Programme was successful in many aspects. For instance, to mention the pineapple value chain, it was learnt that there was a big shortage of pineapple products as well as planting materials after having launched the development of this value chain. The annual production of pineapple in Ethiopia was only 3 million most of which were Red Spanish variety. The Red Spanish is good for selling fresh. Studies and multiples of orders received by many exporters indicate that there is a very big market for dried as well as canned pineapple. MD2 and Smooth Cayenne varieties are currently popular in the market even though different varieties are emerging time to time. The BOAM Programme has used its fund for assessing suitable land study and for propagating planting materials in a research laboratory, promoting the findings on investors’ workshop organised by it and preparation of business plans for investors.

The workshop attracted more than 14 investors who are registered to invest in this product. In all this, the programme has mobilised several actors including but not limited to local and regional government investment bureaus, research institutes, universities, business development consultants, investors, farmers’ associations, cooperative bureaus, banks, etc. All these stakeholders meet on a Coordination Group Workshop which takes place semi-annually. The overall effort was just like creating a new product with big market potential which will eventually become one of the biggest export products and foreign currency earners for Ethiopia. All this, in about one year.
 

Achievements on Value Chain level  [top]

• 21 Coordination Group meetings conducted involving 598 stakeholders (529 M / 69 F) from all the four value chains

• Creation of “Ethiopian Honey & Beeswax Producers and Exporters Association” facilitated (10 member companies and participation of its chairman to honey conference in Ireland assured).

• Creation of “Ethiopian Milk Processors Association” facilitated– 10 companies.

• Activities for Honey and Beeswax accreditation for EU listing started; Honey Quality working group with MoARD established (3 meetings) to prepare an inventory of the national infrastructure (3 consultants were assigned). International consultant is to finalise EU accreditation document. Mission conducted and the collection and analysis of samples with MoARD is in process.

• 25 project proposals for Leverage Fund accepted, contract signed and activities started: total Birr 7,389,241.06

• 3 research studies for Research and Study Fund accepted, contract signed and completed (pineapple, milk & oil seeds chains) and one research study for Honey and Bee products is in process: total Birr 588.300.04,-

• 10 technical and financial proposals for Financial Intermediation Fund accepted, contract signed and activities started: total Birr 418,940,-

• Pineapple land survey was completed in July (with SARI and IFPRI) and results presented in an investors workshop organised by the Bureau of Investment of SNNPR in Awassa on August 1. Result: 14 investors signed a request to purchase up to 3000 ha of land for pineapple cultivation.

• Investor’s workshop conducted for the commercialisation of tissue culture. Result: 3 investors are ready to engage in this activity.

• Diversification of oil seeds: Product development of safflower petals and oil as cash crop.

• Studies completed and promoted: “Research on Standards, Price Incentives, Input Supply and Regulatory Mechanisms to Improve the Supply and Quality of Oil Seeds” and “Development of a Market led Strategy for the Ethiopian Dairy Industry”. 
   

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Milk products value chain  [top]

• SNV-BOAM achieved the participation of the world leader in packaging and milk processing equipment Tetra Pak in the value chain meetings. This led to a concrete Public Private Partnership perspective for the milk and milk products sector in Ethiopia: Consultancy and advice on market research (on a cost sharing basis for the study “Developing a Market led Strategy for the Ethiopian Diary Industry”), engagement on a school feeding programme, know how transfer and advice to optimising support to existent and newly to create milk collection centres.

• On request of various milk processing companies SNV-BOAM has successfully contributed to the creation of the Ethiopia first Milk Processors Association. By doing so, it is expected to deliver direct impact on the four results of actual operation plan (particular results 4 and 5). Processed milk can be better promoted by effective service delivery to processing companies and farmers, policy issues can be better tackled by effective advocacy and lobbying and the coordination of the whole milk value chain could considerably improved.   

• Leverage Fund (LF) contract signed with Ethiopian Milk and Milk Producer and Processors Association (EMMPPA). Promote Milk in the Motto of "Taste the full Cream, Enjoy Milk in 40 ways", on August 30-06; cost sharing of featuring in Addis Ababa Exhibition Centre.

• The members of EMMPPA have promoted their products in the Addis Ababa trade exhibition center for one week (September 2006) and BOAM programme has co-sponsored the promotion.

• Permanent CDS and advice is given for EMPAA and Ada Liben Dairy Cooperative: introduction of new milk processing equipment (milking machines, quality control equipment, chilling technology etc.); amendment of various training proposals.

• A visit to Adaa Liben / Debre Zeit revealed that the cooperative opened a L/C. They are ready to import dairy equipments.

• Sile Enat Dairy Farm Micro Enterprise Associations’ proposal for leverage fund entitled “Training to Improve the Quantity and Quality of Milk Supply and Processing” is approved and contract is signed on September 2006.

• A joint workshop was organized by Land O' Lakes and SNV-BOAM to promote a study on "Consumer Research" in October 2006. 53 stakeholders and most of the members of EMPPA who are working in the dairy business attended the meeting. The outcome of the study was that the best way to promote processed milk & milk products is to focus on quality, diversification of the product range and branding (even of traditional products like Ayib).

• A market research and dairy value chain study “Developing a Market Led Approach for the Ethiopian Dairy Industry” by Technoserve, Kenya was completed and promoted in December 2006. Main findings of the study focused on: Production system,  animal diseases and detection, transport, producers (cooperatives), processors, investment opportunities. The study recommends that Ethiopian Dairy Cooperatives should transform into business hubs in which farmers are able to access services such as education, credit facilities, AI and extension services, access to inputs including feed, transport and testing services. In addition, it was recommended that a dire need to revamp the current dairy cooperatives by separating the management from policy issues, mobilize and recruit producers based on improved access to services that will result in tangible commercial gains for members and shareholders.

• A milk collection centre improvement system via the creation of several models of milk collection centers for the Addis Ababa milk shed (Holetta and Debrezeit) was developed. The models will be implemented by using capital grants (FIF window 2) as tools for working with innovative partners (Fantu supermarket, Adaa Liben cooperative, etc.). Current activities include contracting of a GIS mapping (using GPS technology) of the milk collection system by location, proximity to infrastructure (roads, electricity), quantity supplied and quality supplied. SNV-BOAM team members went on various morning collections to observe current practices and in process of collecting full price information of technology to be purchased as part of the scheme.

• A joint workshop was organized by Land O' Lakes and the programme to promote a study on "Consumer Research". 53 stakeholders and most of the members of EMPPA who are working in the dairy business attended the meeting. The outcome of the study was that the best way to promote processed milk and milk products is to focus on quality, diversification of the product range and branding (even of traditional products like Ayib).

• Advice was given to a private investor assisting him to understand the UHT milk market in Ethiopia and to encourage him to invest in this technology.

• Selale Dairy Farmers' Cooperative Union requested fund to provide Training on Dairy Processing & Marketing for its members and training is on going.

• Cheese coating research is going on (Evaluation of Imported & Locally Available Beeswax for Cheese Processing).

• 46 women participated in training course entitled “Training to Improve the Quantity and Quality of Milk Supply & Processing “ from Oct.23 -November 3, 2006 and they acquainted knowledge & technical skills regarding the management of milk & milk products (including animal feeding, milk quality control and  milk technology)

• At present, they are planning to open milk collection centers with processing facilities (butter, yoghurt)

   

Outcome

• Improved knowledge and understanding concerning factors that are driving the market and linkages between producers and processors of the dairy sector in Ethiopia and improved information concerning market potential, value added in the chain and technological potentials has been granted on a permanent basis.

• Registration of EMMPPA and its role as service provider for its members and advocate and lobbyist.

• Expansion of services offered (e.g. by cooperatives to members, processors to farmers and equipment suppliers to processors) via qualified BDS providers.

• Increased measurable interest of private investors in the dairy sector (value addition in milk processing, e.g. Ultra High Temperature (UHT) technology.

Impact Indicators of the Programme Objective (impact according to the milk value chain):

• Impact in terms of increased production capacity and increased turnover and sales:Private investors showed interest for investments into value-addition (e.g. milk processing). EMPPA, together with partners, is actively promoting efforts to establish school milk feeding systems; and the organization has taken a leading role in promotional campaigns for milk and milk products. These activities will have the expected result on increased production, turnover, sales and income.

• Impact in terms of improved product quality: Town Milk Supply (TMS) technology is initiated and technologies with the result of better milk quality are introduced for milk stakeholders. Collection improvement system is on the way (mapping).

• Impact in terms of increased employment: MB Plc (milk value chain) is in the process of establishing dairy processing plant in Addis Alem. The total employees needed for the operation of the project is about 67 permanent and a number of casual laborers during peak seasons as indicated in the business plan.

• Impact in terms of networking: The Milk Coordination Group meets regularly. Networking activities are functionning on the basis of concrete value chain interventions and bring concrete benefit to the milk value chain members.

Edible Oil and Oil Seeds  [top]

• Main activity in the oil seed value chain and in the context of diversification (part of result 5) and in the process of value development, the value chain members took initiatives for the development of new products like safflower petal. This development initiative could have a great impact to generate income for the farmers and benefit all actors in the value chain.

• The Oromia Cooperative Promotion Commission {OCPC} bureau has been visited on July 3, 4 & 6 2006 on quality and quantity of the oil seeds production awareness creation to Ambo farmers’ cooperative  & Didea farmers’ cooperative representatives.

• EPOSPEA visited CDS in July 2006 and got advice on the implementation strategy of the oil seeds market information updating and dissemination mechanism to its member companies. Operating management information system was set in place for EPOSPEA

• Two companies (Addis Alem, Hadia) requested fund from SNV-BOAM to conduct “Feasibility Study and Business plan for Processing Plant” and the study is under way.

• A contractual agreement signed on August 15 - 06 between Agro Prom International PLC and SNV Ethiopia to conduct study on “Feasibility Study & Business plan for Sesame Seeds Cleaning & Hulling Plant”. The study is completed.

• A contractual agreement signed on Oct.31-06 between Addis Edible Oil Producers Association and SNV Ethiopia to conduct study on “Feasibility study of Edible Oil Refining Plant and the study is started.

• Eight Oilseeds and Edible Oil Consortium meetings have been assisted in their activities; the setting of an implementation planning timeframe was facilitated

• Commenced (and near completion) a mini-study into the “Viability of an Ethiopian Edible Oil Industry” – this was mandated by the CG due to reporting from BACTEC that the industry may be unfeasible (also reported by several edible oil owners that are now out of business and also by the millers association). This study is a value chain development activity, as the answers will guide the next CG discussion as to whether the value chain will be just “Oilseeds” as we found that conceptually this chain is really two chains. The study will be presented at the next CG meeting

• Oromia Cooperative Commission Promotion Bureau, Addis Edible Oil Producers Association (AEOPA), Oilseeds Exporters and Edible Oil Producers Consortium, Oromia Cooperative Commission Promotion Bureau & QSAE were visited by the facilitator to discuss which support is needed  & follow-up implementation of project proposals.

• Ambo Farmers cooperative Union and Didaa Farmers Cooperative Unions requested fund from SNV-BOAM to conduct training for their members on “Quality Improvement of Oil Seed Crops” and training is under way.

• Oil seeds purity test and oil content study started (sample is collected and contact is made to make analysis).

Outcome

• Communication and coordination between competing bodies - edible oil processors and oil seed exporters - established (Oil Seeds Consortium)

• Induction of  investments into value-addition (establishment of seed processing plants).

• Direct communication between small safflower producers and private business operators.

• Lobbying started at the government level to improve the conditions for Safflower production and trade.

• International company (BIOSS Rohstoffe,) interested to engage in the business

• Awareness created in Amara and Oromia regions regarding on how to utilize safflower seed and petals swell.

• Market/business opportunity for safflower development is created

Impact Indicators of the Programme Objective (impact according to the oil value chain):

• Impact in terms of increased production capacity and increased turnover and sales: Export opportunities are identified and commcercial relationship with international importers are created. International company (BIOSS Rohstoffe,) interested to engage in the business. If this relationsship comes to a positive end, then production, turnover, sales and income will absolutely increase.

• Impact in terms of better product quality: Partly, they tackled the oilseeds adulteration problem (both exporters and oil millers agreed not to buy poor quality oilseeds from middlemen.

• Impact in terms of minimising costs: Because of the availability of market information, various costs are reduced (salary, transport, allowances etc), efficiency improved (more time close information is lowering transaction costs)

• Impact in terms of increased employment: If the safflower initiative (edible oil value chain) comes into action, then more production capacities and workers will be necessary. Moreover, Agro Prom International PLC is in the process to establish Sesame Seeds Cleaning & Hulling Plant that will crate employment opportunity for 32 workers (17 permanent and 15 semi-permanent employees as indicated in the business plan). Similarly, Bezu Edible Oil Factory  also needs  the same number of employees for his Oil Extraction and  Refinery Plant.

• Impact in terms of networking: The edible oil Coordination Group meets regularly. Networking activities are functionning on the basis of concrete value chain interventions and bring concrete benefit to the edible oil value chain members.

Honey and products  [top]

• SNV-BOAM has assisted to the request of 7 honey processing companies at the creation of “Ethiopian Honey & Beeswax Producers and Exporters Association” (EHBPEA) by facilitating (through its contacts to the Addis Ababa Chamber of Commerce) their  registration formalities with the Ministry of Trade and Industry (MoTI), conducting an annual planning workshop, brokering intermediate start-up finance of office space and managerial support in  Cooperation with USAID GEM project.

• BOAM has assured the participation of the chair of EHBPEA to international conference on honey in Ireland.

• A discussion was held with SOS Sahel regarding the potential for collaboration on developing a synergistic approach to the development of international labeling standards. In one case, BOAM’s consultant has been asked to assist with the SOS Sahel’s new programme to develop bee products with small-scale producer groups in the Kafa District. The assistance is focused on achieving certification and the necessary export grades. This may be a project that SNV could work with, through a synergized approach, to piloting an organic and fair-trade bee products initiative in the Kafa district.

• Other areas of concern included access to trade finance, understanding the opportunities of fair-trade and of securing low interest supportive loans from ‘green’ banks and ethical trade finance institutions.

• Further guidance and advice was provided on marketing and product development information.

• The SNNPR Micro & Small Enterprises Development Bureau requested fund for the project entitled” Training of women Entrepreneurs on Producing Honey Harvesting Clothes and Other Materials in SNNPR “ is approved

• The SNNPR Bureau of Agriculture and Rural Development funds request for the project entitled ”Sensitizing Workshop on Planting Indigenous Bee Forage in SNNPR “ is approved. This project is a community-based activity intended to promote the forage quality in rural areas by mobilising the civil society.

• 285 (265M & 20F) farmers’ beekeepers in Kaffa zone, Bonga area got knowledge & technical skills after they trained on beekeeping management.
  Outcome: The trainees are able to:

  • Identify composition of bee colonies

  • Identify basic beekeeping equipments & their use

  • Understand  how to transfer bee colonies

  • Understand how to store & handle honey

• 210 (192 male + 18 female) beekeepers in Ada’a and Zequala areas have got  knowledge & technical skills after they trained on beekeeping popularization. They are ready  to train others as per work plan of the project

 Outcome

• A strong network of private and public, local and international resource persons and consultants with complementing expertise has been created (Honey Quality Working Group, national and international consultants who are working on EU accreditation).

• Stakeholders now are able to identify and take responsibility in the respective roles in value chain development.

• Capacities of stakeholders (beekeeping training for farmers) being strengthened: better beekeeping skills.

• The creation (registration/ foundation) of EHBPEA.

Impact Indicators of the Programme Objective (impact according to the honey value chain):

• Impact in terms of increased production capacity and increased turnover and sales: Tentative arrangements/agreement made among local operators and international buyers. Accordingly, Tropical Forest Product Ltd made a contact with Beza Mar Agro-Industry. Similarly, Walter Lang Honig Import GmbH also appreciated taste, smell and color of Kaffa honey has got good feedback from the seminar. If the established commercial relations come to a positive result, then production, turn over, sales and income will absolutely increase. Contracts are expected to be signed following the EU accreditation.

• Impact in terms of improved product quality: Professional capacities of stakeholders (beekeeping training for farmers) being strengthened: better beekeeping and bee product processing skills.

• Impact in terms of increased employment: Beza Mar Agro-Industry (honey value chain) has a plan to recruit 56 employees for his commercial Bee Farming and Establishment of Semi-Processing Plant in Sheka Bench Maji Zones of SNNPR (as indicated in the business plan). Similarly, Apinec Agro-Industry is in the process of establishing honey-processing plant that will create job opportunity.

• Impact in terms of networking: A strong network of private and public resource persons and consultants with complementing expertise has been created (Honey Quality Working Group, international consultants who are working on EU accreditation).
   

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Pineapple and products  [top]

• A contractual agreement signed on October 20, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAM to conduct a “Women Training on Production of Pineapple Planting Material”

• A contractual agreement signed on October 20, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAM to conduct an “Exposure Visit for Pineapple Farmers to Jimma Agricultural Research Center on Modern Pineapple Planting & Management”

• A contractual agreement signed on October 15, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAM to conduct a ”Training of Pineapple in Agronomy , Post harvest  Handling & Marketing”

• A contractual agreement signed on October 15, 2006 between SNNPR Cooperative Promotion & Agricultural Input Sector and SNV BOAMto conduct the ” Development of Legal &  Institutional Frame work and Guideline for Production, Supply & Distribution for Pineapple Planting Material “

• The first large scale Pineapple plantlet micro propagation practice started by JARC (500,000 plantlets) and the seedings will be distributed to farmers in the SNNPRS Cooperative Promotion Bureau.

• Out of 14 investors 3 of them (Hadia, Lemat & Family International Trading PLC) have shown interest in commercial tissue cultures business.

• One investor (Family International Trading Pc) leased land from Addis Ababa City Government to establish tissue culture laboratory. The same company participated in the East African Tissue Culture Conference held at Bujumbura conference (Nov. 29-Dec1, 2006) with his own initiative.

Impact Indicators of the Programme Objective (impact according to the pineapple value chain):

• Impact in terms of increased production capacity and increased turnover and sales: The pineapple plantlet micro propagation with distribution of seedings to farmers will have an impact on the production capacity, sales and income. If the interest shown by 3 potential investors for commercial tissue culture will become reality, then we will have an impact on production capacity, sales and income.

• Impact in terms of improved product quality: The intended laboratory for tissue culture of "Family International Trading" company will contribute to fulfill the indicator for product quality.

• Impact in terms of increased employment: New seeds, new investors and the laboratory will have an impact on increased employment.

• Impact in terms of networking: The regular meetings of the pineapple coordination group have already contributed to experience exchange and synergies in the pineapple value chain. Networking is funtionning.

Meso and Macro level  [top]

Business information and Information sharing  [top]

The BOAM programme webpage is a national value chain development related Internet portal with business and network information as well as information of private and public support institutions for all the four value chains has been published providing links to actors of the selected chains:

• Business development organisations

• Financial institutions

• Business associations

• Chamber of Commerce, etc.

A newsletter is integrated in the BDS–newsletter
of the Business Network Ethiopia: www.bds-ethiopia.net.

Public Private Partnership (PPP)  [top]

The established private–public partnership between SNV, the milk CG and Tetrapak is ready to engage in joint activities. Tetrapak has assisted financially in market research concerning milk and dairy products and to promote school milk feeding programmes in Ethiopia. The initiative on policy level has been taken by AU-NEPAD.

The BOAM programme has established working relations with different partners among others: USAID (FINTRAC), UNIDO, ILRI, IDR, ICCO, CBI, CDE, VOCA, SOS, Sahel, FACETGTZ / PSDA programme (Kenya), Tetrapak, BIOSSL, Land O Lakes, IFAD FAO, Irish Embassy, and CORDAID.

Various other activities have been undertaken as such:

• Facilitating 8 “Oil Consortium” meetings (since January 31,2006) involving oil seed exporters, oil millers and Chamber of Commerce (Addis) in order to create consensus on how to compete (for the same scare crops).

• Connecting Jimma Agricultural Research Centre (JARC) with two international tissue culture companies (Ghana, NL)

• Assisting TEAMPRO and RNE to prepare trade missions to the Netherlands by identifying representatives from various value chains for match making.

• FIF Window 2: A strategy document for FIF window 2 and guidelines manual for capital grants is being prepared (see under 3.1.6.4)

• BDS: meeting between BOAM and GTZ-ECPB was held to discuss cooperation between BOAM and GTZ to develop training for BDS providers.

• PPPF: Proposal by Ethiopian Chamber of Commerce was advised of our requirements to further improve it and is working with them to get Public Private Policy Forums running for the four value chains.

A major crosscutting issue is “quality development”. Dr. Ghirma Moges (a private service provider on Hazard Analysis Critical Control Point, HACCP), and Dr. Greiling (SNV) have been working to develop a holistic and integrated approach concerning quality.  

Networking  [top]

Since the identification of the value chains has taken place, for each of the four value chains so called Coordination Groups (CG) have been established. The CGs are commodity oriented and therefore activities decided within the chain for a particular commodity may take place outside the specific lead region of intervention. Within these CG issues of various levels of intervention (policy, capacity building, technical, funds) are taken into account in the coordination mechanisms.

Each CG has chosen a “chain leader” as focal person who guarantees the ownership of the CG and who is representing the CG. The actual chain leaders are all representing key organisations of the private sector in their respective chain (see Annex: 1).

The Groups consist of representatives of the key organisations that have been identified and agreed to provide services related to constraints earmarked in the respective intervention areas of the strategic intervention plans. They include representatives of key actors in the chain (regional, national or even international).

The responsibilities of the CG are:

• Discuss and review Strategic Interventions plans for the respective agricultural value chain. This will include the roles of different actors and the timing of desired interventions.

• Discuss policy and operational issues affecting the specific chain at national, regional and woreda levels and refer them to appropriate levels for action.

• Mediate conflicts of interest between partners at the implementation level.

• Conduct monitoring and review sessions on regular basis.

• Coordinate programme activities to avoid duplication and overlap with other similar interventions in the different levels of the chain.

• Decides on priority subjects for Research and Study Fund, approves ex-post on funding decisions of the Leverage Funds. 

• Facilitate communication and coordination between the different components of the programme and with other interventions and actors.

• Initiate periodic experience-sharing and learning sessions, particularly with the representatives of the beneficiaries of the programme intervention.

Facilitation  [top]

BOAM has made available for each of the CG of each value chain a facilitator.  The objective of deploying local facilitators is:

• To facilitate and activate communication amongst members of the respective value chain CG and to disseminate information in order to find solutions and trigger activities within agreed intervention areas of the BOAM programme.

Women Participation  [top]

In order to strengthen the gender equality orientation of the programme, we agreed to start two interventions focusing on women empowerment within our value chain development activities:

Quarterly training workshops with women entrepreneurs (ILO GET training module)

ILO has a elaborated 5-day training workshop programme called:

Gender and Entrepreneurship Together (GET)

In collaboration between SNV-BOAM and the ILO-WEDGE programme we will cary out quarterly training workshops for up to 25 women involved in our value chain development activities.

Quarterly women network meetings

In adition to the workshop we planned to organize quarterly network meetings of women involved in the value chain development activities: About 30 women of all value chains will come together for 2 days. First discuss their professional, personal and gender related problems and solutions and then carry out a field visit to Merkato in order to explore themselves in an action-oriented approach the commercialisation-side of their respective value chain. At the end of the network meeting, fulfillment of expectations and recommendation for the next meeting will be discussed. A women facilitator will moderate and document the meeting. The programme of the first meting is rather openand flexible, because it will be up to the women themselves to discuss on how to organize.

Funds  [top]

The first one, the so-called Leverage Fund, will finance those interventions identified through a sub-sector analyses that will leverage certain agricultural value chains. The second one is a Research and Study Fund and it will finance action-oriented research activities relevant for either specific agricultural value-chain development or for the overall programme development. The third fund will be a Financial Intermediation Fund and its purpose is to enable organisations to acquire technology and hardware relevant in the context of a particular agricultural value chain.

Results:

Leverage Fund (LF)  [top]

Research and Study Fund (RSF)  [top]

Financial Intermediation Fund (FIF)  [top]

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