Sustainable Vanilla Smallholder development & enhanced livelihoods in the supply chain

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1 Sustainable Vanilla Smallholder development & enhanced livelihoods in the supply chain Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Constanze Helmchen, Anja Meinecke Berlin, Oct 13, 2015 Seite 1

2 Agenda Partnership between the private and public sector Project Sustainable Vanilla" Challenges and Solutions Achievements and Outlook 26/10/2015 Seite 2

3 Partnership: private and public sector 26/10/2015 Internal use only Seite 3

4 Private and public partners aim at common goals Private Sector objectives Development partnerships Development cooperation objectives Market entry & expansion in developing and emerging markets Marketing of products, gaining new customers and ensuring customer loyalty Strengthening supply chains Corporate Responsibility (CR) Improving local economic and living conditions Establishing sustainable supply chains Involving local communities in economic cycles and value creation Mobilising capital and know-how Seite 4

5 Project Sustainable Vanilla 26/10/2015 Internal use only Seite 5

6 The project at a glance Madagascar Improving the livelihoods of Madagascan Vanilla Farmers Partner: Symrise AG, Unilever, GIZ Duration: Jan Dec 2016 Total budget: 1,38 Mio 26/10/2015 Seite 6

7 Expected results of the project Indicators At least 60 % of the targeted farmers have improved their food self-sufficiency (decrease of lean season* from 5 to 2 months). At least 70 % of the producers in the intervention area have improved their vanilla productivity (kg/ha) by 40 %. At least three autonomous rural colleges provide vocational training based on benchmarked agricultural curricula. *lean season meaning the period farmers consider they don t have enough rice Overall objective The objective of the project is to enhance the economic selfsufficiency and improve access to farming education and training of 4,000 vanilla farmers and their families in rural Madagascar. Seite 7

8 Challenges and Solutions 26/10/2015 Internal use only Seite 8

9 Vanilla farming faces many challenges Major challenges include: Food security is the highest priority for farmers Decision for farmer betweeen food crop and cash crop Vanilla is a labor intensive crop (e.g. pollination by hand) The business case for vanilla farming is not ovious to farmers Small scale farming Relatively low productivity and high vulnerability to climatic conditions Mismanagement of farms due to lack of skills in good agricultural practices (GAP), sustainable farm management & farm ecomomics Seite 9

10 Also the vanilla supply chain is fragmented and highly competitive Seite 10

11 The main intervention areas of the project at a glance Farm level General education Agricultural extension Primary school Text support Text Diversifying income Environmental education Financial education & farm management Rural colleges Monitoring and Evaluation, Learning Seite 11

12 The tool ESFM is one of the key innovations of the project ESFM = Economically Sustainable Farm Model Data gathering on 64 reference farms Benefit for the project Benefit for the farmer Household characteristics Farm components/activities Farm resources Farm needs Farm difficulties and strategy Understand farmers strategy Understand production costs Understand evolution over time Evaluate satisfied livelihood needs Integration of findings in training content Improved farm management through better planning Improve farmers understanding of comparative product costing & vanilla business case Seite 12

13 Achievements and Outlook 26/10/2015 Internal use only Seite 13

14 Each partner contributes to the project Smallholder engagement expertise Sourcing requirements Demand creation Marketing Sustainable sourcing expertise Local team and infrastructure Outreach to farmers Functional commitment Sourcing requirements Sustainable development expertise Local team Monitoring & Evaluation Capacity development Impact Learning and Improvement Further Local Partners Local network, technical expertise AFDI GLAE UNMFR DLC, CEFFEL CURSA Planet Finance Rural Cap Value of the partnership: No institution could do it by itself! Seite 14

15 Joint objectives are likely to be reached Indicators Improvement of food self-sufficiency (decrease of lean season from 5 to 2 months). Improvement of vanilla productivity (kg/ha) three autonomous rural colleges provide vocational training Current status Currently decrease from 5 to 3 months, but many variable influencing factors (weather conditions, prices of cash crops ). Good indications that productivity will improve, but effects of application of GAP in Vanilla take several years, and production is highly variable from one year to next. This indicator is already met: three rural colleges (MFR) with Management Boards are set-up and are operational. Seite 15

16 Overall strategy: Upscaling the partnership to achieve even higher impact Sustainable Vanilla Initiative? Envisaged Multi-Stakeholder Platform to enhance sector-wide dialogue Partnership with Symrise 3000 farmers in Diana and Sava-Region 24% average income increase through diversification Partnership with Symrise and Unilever 4000 Farmers, beneficiaries Expected reduction in lean season Expected Increase in productivity Access to education improved for future generation of farmers Seite 16

17 If you want to go fast, go alone. If you want to go far, go together. African proverb Thank you for your attention! Seite 17

18 The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a federal enterprise with worldwide operations. We support the Federal German Government in achieving its goals in the fields of international cooperation for sustainable development and international education. Published by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered Offices: Bonn and Eschborn, Germany Responsible Constanze Helmchen Author Annika Powitz Photo Credits GIZ/ Annika Powitz developpp.de Tel.: Fax: developpp@giz.de URL: Seite 18