REPORT. Regional Value Chain Training Workshop September 23rd 24th September 2011 Blue Horizon Hotel, Barbados

Transcription

1 REPORT Regional Value Chain Training Workshop September 23rd 24th September 2011 Blue Horizon Hotel, Barbados 1

2 Table of Contents Abbreviation. 3 Executive Summary.. 4 Introduction. 5 Overview of Workshop and Intended Outcome.. 5 SESSION I: REVISITING THE VALUE CHAINS CONCEPT 5-7 The Concept of a Value Chain. 5 Food Supply Chains vs. Food Value Chains 6 Discussion: Clarity and Articulation of Value Chain Concept. 7 SESSION II: BUILDING FOOD VALUE CHAINS: CARIBBEAN EXPERIENCE AND BEST PRACTICES 8-20 Characteristics of a Successful Value Chain and Requirements to Get There. 8 Caribbean Case Studies. 10 The Role of FO in Developing Food Value Chains in the Caribbean.. 12 CaFAN s Integrated Production and Marketing Project Value Chain Upgrading Strategies and Tools Working Groups: Constructing a Capacity Building Programme for the Upgrading of Selected Value Chains.. 19 Working Groups: Plenary Session and Discussion.. 20 SESSION III: DEVELOPING A FARMER/CaFAN-LED ACTION PLAN FOR VALUE CHAIN UPGRADING Drafting a Producer-led Plan of Action for Value Chain upgrading strategies development in the Caribbean region Based on CaFAN Production and Marketing Programme Golden Apple Value Chain Upgrade Pineapple Value Chain Upgrade.. 21 Ginger Value Chain Upgrade 23 Sweet Potato Value Chain Upgrade. 24 Lessons Learned 26 Upcoming Challenges.. 26 Recommendations. 26 Follow-up Action, Closing Remarks, and Workshop Evaluation 27 APPENDICES Programme 28 Participants list.. 30 Fruit Producers Co-op Value Chain Example.. 32 Original Dominica Pineapple Value Chain 33 Upgraded Pineapple Value Chain. 33 2

3 Abbreviation AAACP ACP ASTT BAS CaFAN CARDI CARICOM COTED CPGCA CTA EC ECTAD EU FAO FO GAPA IICA JAS MOA NEFO RFNSP All ACP Commodities Programme African, Caribbean and Pacific States Agricultural Society of Trinidad and Tobago Barbados Agriculture Society Caribbean Farmers Network Caribbean Agriculture Research and Development Institute Caribbean Community Council for Trade and Economic Development Christiana Potato Growers Cooperative Association Technical Centre for Agricultural and Rural Cooperation European Commission Eastern Caribbean Trading Agriculture and Development Organisation European Union Food and Agriculture Organization Farmers Organisations Guyana Agricultural Producers Association Inter American Institute for Cooperation on Agriculture Jamaica Agricultural Society Ministry of Agriculture North East Farmers Organization Regional Food and Nutrition Security Policy 3

4 UN United Nations Executive Summary The mission of the Caribbean Farmers Network (CaFAN) is to enhance Caribbean food and nutrition security, foreign exchange earnings and foreign savings, by repositioning agriculture through the capacity building of farmers and the institutional strengthening of farmers organisations. The Regional Value Chain Training Workshop was hosted by Barbados, and held on September 23-24, 2011 at the Blue Horizon Hotel. CaFAN organized the event with support from the Technical Centre for Agricultural and Rural Cooperation (CTA-ACP- EU), the Inter-American Institute for Cooperation on Agriculture (IICA), FAO, and the Barbados Agricultural Society & Government of Barbados. The objective of the workshop was to improve the understanding of value chain frameworks, mechanisms and tools to be used in the development and implementation of projects within the regional network of CaFAN. Specifically, CaFAN aimed to build capacity among farmer leaders in upgrading and managing commodity value chains, which will assist in formulating effective action plans for integrated production and marketing strategies related to specific crops. CaFAN has also received support from the Italian-funded CARICOM/CARIFOUM Food Security Program, which sought to identify a regional sustainable provider of value chain development services to small farmers in the regional fresh produce industry. The two-day workshop was attended by forty participants from eleven countries, representing CaFAN, IICA, the EU, FAO and farmers organisations from across the region. An official opening ceremony on September 22 inaugurated CaFAN s Week of Activities. The workshop was divided into three sessions. First, the value chain concept was presented as a model framework. Case studies specific to the Caribbean region were then shared as practical examples of food value chain best practices, and the role of farmers organisations in developing these concepts was explored through panel discussions. Finally, participants formed working groups to construct capacity building programs for the upgrading of four selected root crop, fruit, and spice value chains in the region. Throughout the workshop, CaFAN shared its vision for the Integrated Production and Marketing Project currently under development for exporting roots and tubers to the international market. Methodologies of the workshop included presentations, group discussion, collaboration and group work, and a thorough analysis of the presented action plans. Specific outputs from the workshop included four feasible action plans for upgrading value chains for pineapple, ginger, golden apple, and sweet potato. The plans outline constraints, interventions, and strategic actions for implementation within a three-year 4

5 schedule. The basis of these strategies can be extended and modified for various countries seeking opportunities for production and market development. Introduction Overview of Workshop and Intended Outcome Mr. Jethro Greene; Chief Coordinator, CaFAN The purpose of the workshop is to give participants a clear understanding of value chain mechanisms and tools, which can be used to implement, develop projects, and negotiate with potential buyers in their respective regions. CaFAN aims to build capacity among farmer leaders by sharpening these tools and strategizing how value chains can be upgraded and implemented for specific crops. This will require a collaborative and participatory effort among the workshop participants, to ensure the efficient development, management, and control of farmers value chains. Once the value chain process is better understood, farmers can eliminate waste and become more efficient in working together. The workshop also seeks to train industry and farming leaders, so they can apply their skills and empower those within their respective fields. SESSION I: REVISITING THE VALUE CHAINS CONCEPT Mr. Robert Reid; IICA The learning objectives of this component were for participants to internalize and properly articulate the Value Chain concept to producers and other stakeholders by returning to its basic foundation. 1.1 The Concept of a Value Chain The definition of a Value Chain (VC) has many interpretations and variations, and often times FO s and institutions can not find a common thread when developing VC strategies. Some examples of what industry and farming leaders thought a value chain is are as follows: Interdependent activities pre- and postharvest Farmer to Consumer Management and Coordination Competitive Strength Interaction for Consumer Satisfaction Stakeholder Involvement Productive activities resulting in the final delivery of a commodity Interaction for Competitiveness and Positive Decisions Range of Connecting Activities Level of Trust, Value and Efficiency Greater generation of income Value Addition Collective resources to maximize benefits Linking players in a production and distribution system Elimination of Waste Bringing a commodity from production to market Harmonized articulation of linkages 5

6 From a professional point of view, most of the above responses are a description of traditional food chain management systems, and not a value chain. According to Mr. Robert Reid, a more precise definition of a value chain is as follows: Agreed interaction and sharing of information between economic actors, providers of services, and policy makers, grounded in proper assessment of production and markets and Joint Action Plans, to consistently deliver products demanded by consumers that are of specified quality, highly differentiated/branded (very important point, ex. Caribbean products), competitively priced, safe to consumer/use, and which will generate equitable and sustainable profit margins for all concerned. 1.2 Food Supply Chains vs. Food Value Chains Traditional Food Supply Chains Traditional food supply chain systems follow the linear transfer from input supplier to producer to buyer and finally to end consumer. These standard food supply chains are characterized by having: No agreed interaction between actors (mainly transactions); Little or no sharing of information between actors; No adhering to standards for product quality and safety; No stipulated mechanism for resolution of disputes; Unstable price and business relationships that impact negatively on sustained profit generation and business development; Inequity of margins generated and power relationships between individual actors; and No joint investments or lobbying of the government to improve product quality, differentiation, delivery systems, policy environment, access to technical support, etc. Differences Between Old and New Definitions Unlike the food supply chain, the value chain strongly promotes the sharing of information across all parties involved through dialogue platforms. It is these platforms that allow information to move freely along the chain, which ultimately motivates more actors to get involved. Further, by sharing information among chain members, more collaboration and less waste can be achieved to better the industry as a whole. Another key difference is that value chains focus on groups of actors, thus involving a wider range of participants. For example, a small farm holder will have a much different resource endowment than a large or medium sized farmer. And buyers and suppliers differ on their needs, incomes, and capabilities. This makes it very difficult to include all of these members in a value chain strategy using the traditional definition. By looking at a chain in terms of groups grouping all types of farmers together, or buyers etc - strategies can be more inclusive to benefit all parties involved. Example: A case study in the promotion of Jamaican pork consumption illustrated how this differentiated product could fit into the new definition of a value chain. 6

7 A signed agreement for joint action grounded in analysis, provided a high quality, highly differentiated product that enabled Caribbean Passion Meat to be competitively priced against Canadian imports in a highly fragmented industry. 1.3 Discussion: Clarity and Articulation of Value Chain Concept An open dialogue was conducted as a forum to further clarify and articulate the value chain concept. As a result, the following concerns, issues, examples and points were raised and discussed: A question was asked of whether a verbal or contractual agreement is made in sharing information among chain members. These agreements are not always formal, and are often times based on verbal contracts. In terms of proper assessment, it is necessary to know details of the actors and their supply systems, including an assessment of production, trends, where people are located, resource endowment, and costs. It should never be assumed that everyone who is a producer is operating at the same level and serving the same markets. Though constraints will vary at all levels of the chain, the overall purpose is to eliminate each constraint to benefit all stakeholders. Market assessment was identified as being of particular importance in achieving profitable success as market opportunities present the optimal potential for growth. However, in the Caribbean, most farmers organizations are small and lack the skills and resources required to conduct these proper assessments. It thus becomes incumbent that the ministry or some independent organization such as CaFAN provides assistance in conducting these assessments for smaller farmers, or ideally to build the capacity to enable these organizations to undertake proper production and market assessments. Though government intervention is not always necessary, these bodies do have certain tools and incentive programs, also available through extension services that can be of assistance to the development of a food value chain. There are many examples of successful lobbying in the Caribbean, one of which being the poultry industry in Trinidad and Tobago. In moving forward with the workshop, the issue was put forward to consider what triggers and motivates actors (particularly small farmers) to participate in a value chain, and what incentives can drive this participation. Within Mr. Reid s definition of the value chain, what items ought to take priority in the development of particular value chains given resource constraints and porous borders? 7

8 SESSION II: BUILDING FOOD VALUE CHAINS: CARIBBEAN EXPERIENCE AND BEST PRACTICES Mr. Heiko Bammann; FAO The learning objectives of this session are for participants to have a clear appreciation of the process of building Value Chains with a specific emphasis on roots and tubers. This session hopes to clearly outline the ideal environment required to create and sustain a successful value chain. Best practices in various regions will be identified and value chain upgrading strategies and tools will be discussed in the hope of inspiring leaders to implement value chain mechanisms in their respective regions. 2.1 Characteristics of a Successful Value Chain and Requirements to Get There Five main characteristics of a successful and sustainable value chain: 1. Information (transparency, exchange, access to, and ability to use both consumer and chain performance related information) 2. Relationships (trust, developing and maintaining constructive relationships) 3. Technology (access to and ability to use appropriate technology) 4. Governance (making individuals and business responsible and accountable for their performances) 5. Competitiveness Possessing these characteristics requires good management of the value chain and an effective dialogue platform (e.g., Value Chain Coordination Committee). In addition, continuous adjustments need to be made regarding changing consumer preferences, using information fed through feedback and the dialogue platform. Improving value chain performance and impact takes significant investment of time, and adequate resources or funding may be necessary. Technology must also be updated in accordance to consumer preferences. Six principles of value chain management: 1. Focus on customers and consumers (be market-led, focus on end buyer) 2. Logistics and distribution 3. Proactively form and manage relationships 4. Get the product right every time 5. Accountability (be accountable to ease litigations and increase credibility) 6. Existing information and communication strategy In value chain analysis and upgrading for farmers organizations, it is important to identify the target audience and beneficiaries, the development objective, and the key issue. In the case of CaFAN, the target beneficiaries are small farmers; the development objective is to a) increase the volume and total value of products that small farmers sell in the value chain and b) increase the margins per product and get a relatively higher income compared to other value chain actors. Key issues being faced are low supplies, and supplier incompetency creating barriers to entry for small farmers. 8

9 Four important actions for agricultural value chains (1) Systematically map the actors and their characteristics; (2) identify the distribution of benefits and risks of actors in chain; (3) examine the role of upgrading within the chain; and (4) Recognize the important role of good governance and management. Value Chain Mapping Value chain mapping is a tool for analyzing the current situation. It identifies the key constraints that inhibit the growth of the value chain, and then seeks solutions to overcome these bottlenecks. The objectives are to gain a basic overview that will guide the full analysis; identify possible solutions to constraints at various levels; identify the location and position of small farmers; visualize networks and connections; demonstrate interdependencies; and create awareness. A value chain map can illustrate a global enabling environment in which a value chain operates, including the direct actors involved in converting products into final goods for sale and consumption. It includes various financial, business development, and technical service providers. The five structural elements of the Value Chain Framework are endmarkets, vertical linkages, horizontal linkages, enabling environment(s), and support services. Plans, decisions, and strategies should be adjusted when considering enabling environments for domestic markets and international exports. Through this mapping exercise, we can see how the chain operates, and better understand where inequalities lie or where opportunities exist. In order to upgrade this VC, there are two broad strategies: 1. Strategies that reduce cost (greater efficiency or effectiveness) 2. Strategies that increase income (more customers, sales, or price increases) These strategies may shift the value chain pie so some less fortunate parties receive more income, or they may grow the pie all together so all parties are better off. There are a number of key questions to be answered through any value chain analysis and mapping exercise, and these should be adjusted based on their relevance for the roots and tubers project (see Appendix). Enabling Environments Ideal environments must have rules and regulations, policies, standards (private, industry, health), laws, transport infrastructure, communication infrastructure, fees, taxes, and law and order (e.g., for praedial larceny). Proper understanding of these mechanisms requires transparency and information sharing. Tools for value chain analysis and management These tools include grower-buyer meetings, analysis of costs and margins, seasonal calendars, participatory toolkits, surveys, and tools to improve management, governance, and information exchange. These are not new tools; it is a matter of gaining access to these technical tools to be properly applied to individual situations. 9

10 A visual map example found in the Appendix can facilitate a fruit producer s co-op addressing the distribution of profits within a particular value chain. If for one carton of 20 fruit, retailed at $2 each, consumers pay a total of $40, that total dollar value created must be distributed within the chain. Working backwards one can identify the cost/price at each level, and with this information you can create transparency and discussion for potential upgrading strategies to maximize value sharing for farmers. Two groups of strategies exist in this case: those that reduce costs and those that increase income. The main disadvantage to this overall value chain approach is the length of time required to effective make and implement decisions, especially in the face of conflict resolution. The Dominica Pineapple Value Chain is an excellent example of the value chain process in action among Caribbean farmers, and is furthered detailed in the upgrading strategy section of the report. Resource materials available freely available are the FAO-GTFS VC Toolkit (currently being finalized), the M4P Value Chain Toolbook (found online and can be printed as a tool for training purposes), and the GiZ Value Links Manual. Challenges with Value Chains Although many benefits can be sought from using the value chain approach, there are a few key challenges or drawbacks that need to be made aware of. The most important is that the decision making process can be lengthy, even with sophisticated dialogue mechanisms in place. Additionally, disputes may commonly arise when various parties are involved. As a suggestion from discussion, dispute resolution mechanisms should be a requirement for all value chains. 2.2 Caribbean Case Studies Mr. James Paul; Barbados Agricultural Society The learning objective of the case study session was for participants to gain direct insight into practical commodity value chain experiences and practices from various Caribbean countries that illustrate the fundamental concepts of the value chain approach in action. Onion Chain, Barbados Mr. James Paul; Barbados Agricultural Society With the re-start of this program in 2010, a value chain committee was established that included all persons involved throughout the entire process of production and distribution. The purpose was to involve all actors related to onions, including input suppliers of seeds, as well as those who provide services critical to the onion production process such as the BADMC and Ministry of Agriculture extension personnel. In this industry, yields are highly dependent on the efficiencies of individual farmers, although all farmers currently face the challenge of unseasonably wet weather conditions. Within the current value chain there are initiatives for improving processes and encouraging farmers to apply onion drying. As a result of the project, Barbados will be developing a model prototype of an onion-drying facility targeted at farmers for future expansion. 10

11 In addition, BAS has reviewed their onion production manual with a new version soon to be distributed. Three workshops have been held addressing three production issues affecting members of the chain. Farmers are being trained to improve and upgrade skills to contribute to the enhancement of farmers organizations. White Potato Chain, Jamaica Michael Price; Jamaica Ministry of Agriculture Production in Jamaica has adopted a market-led approach. It was apparent that Jamaica has the microclimate to produce potatoes year-round, though the industry has traditionally been restricted due to an over-dependence on imported seeds from Holland. This resulted in Jamaica importing large amounts of potatoes and potato products. This reality has been guiding some of the value chain s current actions. Farmers, traders, and distributors met to discuss this significant opportunity for import substitution, and the ministry shared its vision of increased production to become price competitive with their quality advantage over imported potatoes. Large importers needed to be persuaded to contract with local potato farmers and getting the support of financial institutions were a challenge. Gradually there was success in incrementally increasing production and in 2010 it was over 100% of where it began in 2008, and 1/3 of the countries potatoes were supplied locally. This involved supporting actions driven by grades and standards, post-harvest handling and quality assurance, and partnerships with private storage to ensure a continuous supply throughout the year for the produce. They also successfully introduced a summer variety, to combat the lack of seed inputs during this time. It has been important for Jamaica to identify areas that require technical intervention, including training and quality control, the supply and size of seed, and border control for disease mitigation. They are now looking to develop a local processing industry for the potatoes and trying to develop the local seed industry through the use of greenhouses. Pineapple Chain, St. Lucia Ignatius Jean; The St. Lucia pineapple industry traditionally has had a very short chain from farmer to consumer. Of about 50 pineapple farmers, 30 take their produce directly from their fields to hotels for consumption, while the remaining small producers sell directly to consumers through roadside stalls or markets. A new strategy being implemented is the development of a cooperative of pineapple farmers. All producers would sell directly to the cooperative, which would in turn act as the supplier to hotels. An arrangement regarding a fixed price for pineapple will be set based on its consistency with quality standards. Payment will be given no more than two weeks after purchase. The long-term goal of the cooperative initiative is to export pineapple to new markets. There is a high level of trust within the cooperative, where it is believed that everything belongs to the farmers, so no contract is being signed between members. Despite this confidence, participants expressed concern regarding this lack of formal agreement. Pork Chain, Jamaica Ms Angela Bardowell; Jamaica Pig Farmers Association 11

12 The pork industry in Jamaica is comprised of small, medium, and large farmers. As each of these producers have very different experiences, their expectations for a value chain varied. The Jamaica Pig Farmers Association (JPFA) formed a pork industry committee in the best interest of producers to assess production and market demands. Through dialogue and negotiation a consensus must be met on a common plan of action. One of the main challenges is explaining the entire value chain concept and the overall business to small farmers so they understand how prices are determined. JPFA invites all members to attend their quarterly training sessions, which are supported by international organizations like IICA and FAO. There are also financial challenges with the pork industry in Jamaica because the main input of feed is imported. Farmers have no control over input costs, which can hinder improvements in efficiency. As such, farmer groups in the chain are encouraged to purchase feed in bulk to reduce costs. Root Crops, Saint Vincent Mrs. Audrey Walters-Butler and Mr. Michael Dalton, ECTAD Dasheen is being successfully produced in large quantities in many areas of Saint Vincent, but there are certain challenges among actors in the value chain. Lack of accurate record keeping among small farmers, poor road infrastructure, and problems identifying proper fertilizer inputs are being addressed by ECTAD by utilizing technical expertise, best practices, and training for planting dasheen. Although consumer demand in certain markets is for a specific size, there is also a need to find a market for the smaller produce. Root crops are set to replace the income lost in Saint Vincent through the collapse banana industry. Dasheen has a low cost of production due to excellent soil fertility for root crops in the country, which also include sweet potatoes, yam, eddoes, and ginger. For example, the cost of production for sweet potato is EC30cents/lb with a yield of about 20,000lbs to the acre. Research is being done by CARDI into introducing even higher yield varieties. The issue of quality standards and determining cultivation practices for the exact variety of produce demanded exists for many of these crops. 2.3 The Role of Farmer Organizations in Developing Food Value Chains in the Caribbean (Panel Discussion) Mr. Robert Best; FAO The objective of the panel discussion was for participants to gain insight into specific issues and activities that farmers organizations should address. This was to ensure proper participation of producers and small holders in value chain initiatives. Specific questions discussed in the forum included the following: What the organization does to support the development of the value chains in their respective countries; How the organization helps individual farmers organizations and the development of value chains; How to improve negotiations with buyers and promotion of industry position; What various levels of services are offered across the chain; 12

13 How to facilitate dialogue and/or advocate to the government for specific outcomes when speaking on behalf of or with the chain. The following are key points regarding the individual organizations strategies in addressing these issues in developing food value chains. Agricultural Society of Trinidad and Tobago Mrs. Dhana Sookoo The organization sees a need to ensure a strong production base through proper production planning in order to create sustainable food chains for the market. By empowering farmers with ownership of the value chain and linking them with other service providers, farmers establish a more stable future for their product. Actions are driven by the membership of their farmers, who are considered the main stakeholders in the agriculture sector or the country. Successful advocacy measures have been taken on behalf of poultry industry farmers to force change when necessary. The Agricultural Society is part of the roots and tubers sector chain, specifically in negotiating the provision of sweet potatoes to be processed as fries for KFC. The have also participated in discussions for new incentive programs that will enhance the development of many commodity industries. ECTAD, Saint Vincent Mrs. Audrey Walters-Butler The main supportive efforts of ECTAD as an organization have been to create a facilitating environment for small farmers to cluster into working groups, with the goal of sharing skills, labour, and best practices to improve production. This assistance in value chain development has mostly been seen through technical training programs, for example to improve record keeping, which will contribute to overall efficiencies in approaching the market. In terms of negotiations and advocacy, Jethro Greene, Chief Coordinator of CaFAN and Executive Director of ECTAD, underwent negotiations with the government for a packing facility in Saint Vincent and continues to advocate to the Ministry of Agriculture for the best interests of small farmers. IICA Dominican Republic Mr. Manuel Martinez This agri-business group plays a significant role in the country s organic banana value chain. Their strategy is to work as a cluster of banana production and related activities, and cooperatively group the input suppliers, producers, and related institutions to solve problems collectively. When a need for government intervention does arise, the organization utilizes press releases and the media to enforce action. An example of this process in action found a solution to control pest infestations and resistance among banana crops. By strengthening the laboratory facilities involved in the chain they aim to develop methods to control the fruit pesticide residues with improved access to technologies and technical resources. They conduct plant and soil analysis, identification of diseases and pests, and field work. 13

14 Dominican Republic, like most Caribbean islands, is small with limited resources and land availability; hence the development of a strong orientation to protected agriculture using methods such as greenhouses. Between tons of tomatoes and tons of sweet peppers were produced in an average of 4700 square meters of greenhouses. The tomato value chain is a good example of small and large farmers working together with the industry and government to achieve a unified goal. Negotiations for agreements on behalf of all farm groups have resulted in much of the financing provided by the private sector of banks and cooperatives. The lowest interest rates for farmers come from the agricultural bank at 12% per year in the Dominican Republic. Barbados Agricultural Society (BAS) Ms. Keely Holder The strongest chain connection for the Barbados Agriculture Society is the poultry value chain, which has processors and growers working very closely together to control the industry in the country. The poultry industry does advertising that has been enabled them to significantly grow their portion of the value chain profits. BAS supports these initiatives that have resulted in increased poultry sales, even during the recession. The organization believes in sharing information through input suppliers at every stage of the process and production planning for effective forecasting at all levels of the chain. Along with information dissemination through the association, they also provide financial assistance and participate in the national agricultural festival with a number of the association s branded products. BAS has facilitated the establishment of a laboratory focusing on introducing new genetics and improving characteristics of products on the market. In terms of dialogue, BAS coordinates meetings of chain members and sets up private public sector partnerships to improve government support to the industry. For example, during food crisis of 2008, BAS was able to lobby the government to give price security to poultry farmers allowing for affordable and competitive prices for members of the value chain. Jamaica Pig Farmers Association (JPFA) - Ms Angela Bardowell The Jamaica Pig Farmers Association is a lobby group that works to represent its members best interests. They encourage farmers to be primary producers and maximize the value of their role in the value chain. Technical support is provided to assist farmers in supplying markets with the best possible pork. They also encourage farmers to determine what section of the market they are most capable of supplying with the greatest efficiency in order to maximize value for themselves at the end of the process. Further assistance and support is provided in calculating cost of production, husbandry training to reduce mortality. Industry meetings are held for all members of the value chain, including technical support services, veterinary services, marketing divisions, and so on to discuss various issues that affect the entire industry. For example, the issue of how to meet the higher demands for production around Christmas time. 14

15 The Ministry is always represented at monthly meetings, and as such JPFA works to ensure that whatever policies implemented by the government take into consideration the impact on farmers. Though roughly 75% of members are relatively small farmers, all members are treated as equals in meetings. These forums allow for larger farmers to offer assistance by sharing their own experiences. In terms of conflict resolution between smaller and larger farmers in allocating volumes in a limited market, JPFA breaks down producers into groups according to size. When forecasting, they conduct a survey of production based on farmers with a commercial input who have a stronger commitment to the value chain. 2.4 CaFAN s Integrated Production and Marketing Project Mr. Jethro Greene/Mr. John Soler; CaFAN The objective of this presentation was for participants to appreciate the initiatives of the regional farmer s organization, in order to support the production and marketing of specific commodities. The improved technical knowledge will help members of the network in these strategies into action. COTED Projects CaFAN has identified two key projects in its submission to COTED on behalf of small farmers. A selected crop was highlighted for each country and in each case the target market will be domestic, regional, or international. Roots and tubers will be the overall focus of the project. At the regional level, CaFAN has engaged in dialogue with four supermarket chains and a number of hotels. At the extra-regional level, the organization has identified core buyers set to market the four pilot projects, which is planned to expand gradually to include other crops. Roots and tubers were chosen based on the alignment with cultural patterns of most farmers, the potential for value addition, their resistance to natural risks, the region s control over planting materials, the environmental and health association with food and nutrition security, and the relative ease of shipping. Internationally, the trend of demand for these commodities is growing tremendously. Caution must be paid to competitive factors in capturing the market, however, as large forces such as China are now dominating eddoes and ginger, and have taken a large interest in roots and tubers. CaFAN Strategy Based on the external environment and threat from international sellers, CaFAN plans to penetrate a niche market with its specialty brand, Caribbean Small Farmers. The main crops CaFAN intends to sell are dasheen, sweet potato, eddoes, yams, and ginger. The organization aims to build a consistent and professional system of production planning and engagement in making legally bound agreements with distributors in the UK. 15

16 Three other potential buyers have been identified outside of the UK, in Holland, Germany, and France. Considerations to the low ginger and eddoes prices from China are a growing concern; however, CaFAN s main differentiation is on branding, not price. By taking a regional approach, the project will be diversified against risk. Regardless, a program of this nature requires a significant investment of time for development. There are also systems under development to forecast climate issues such as hurricane patterns. As Mr. Greene emphasized, CaFAN takes the approach that any obstacle is a challenge that can be turned into a success. Penetrating the International Export Market Mr. Soler s successful relationship with CaFAN began with trial shipments of dasheen in Despite the recent global economic downturn, conditions have been improving in the European market. He explained the initial plan to target London where the volumes demanded are large that extended to Paris as the market began to slow. In the UK, CaFAN is now striving to move out of London into Burmingham and further north. A marketing trip is being arranged to identify new outlets beyond these markets. Because of their size and volume, supermarkets in the UK will only deal with large nominated suppliers that are responsible for securing, packing, pricing, and delivering products to stores. CaFAN has identified three such contacts interested in potentially bringing root crop produce into stores. Three companies are also affiliated in Holland, France, and also Germany, lending to further opportunities for expansion. The plan will process with dasheen, yams, some eddoes and ginger. Root crops are a nearly full-year commodity with a two-month slump during the holiday season. In the past, the region was a strong market for breadfruit, avocado, mangoes, and peppers, which is being considered for potential long-term expansion of the program. Another future outlook involves a CaFAN office in the UK where they will become a registered legal entity capable of dealing directly with shipping and transport. The organization needs to establish a reputation through quality and presentation in the market to effectively take on competition. 2.5 Value Chain Upgrading Strategies and Tools Mr. Heiko Bammann/Mr. Robert Best; FAO The objective of this presentation was for participants to understand the concept of a value chain upgrading strategy and how it is being developed in order to construct a capacity building programme for the upgrading of selected commodity value chains within the Caribbean region. Value chain vision describes the aspired change of the value chain with respect to how it should look five years from present. Goals should be set based on what can realistically be done to meet priorities. It is important that a consensus decision is made among all value chain actors. 16

17 An upgrading strategy is an agreement between chain actors on a joint action for upgrade, which should be documented in a specific action plan for value chain upgrading. The action plan should distinguish whether it is a product (innovation, quality), process (production, logistics), or functional upgrading strategy. It should inform on priority action areas, outputs, activities to achieve said outputs, which will be involved, the scheduled time frame and financial implications or budget. It is important that the overall impact of the upgrading strategy is anticipated, measured and monitored on a continuous basis. To do so, one must identify and formulate both quantifiable and qualitative indicators which will vary depending on the situation and commodity to measure progress. A sound value chain analysis is necessary to measure the impact. A base line of data should be established, and all actors must decide on indicators and a consistent means of verification, record keeping, and frequent feedback. Success of any strategy will rely on good facilitation and mediation skills, information flow, transparency, openness and honesty. NIPPA Upgrading Strategy Example Mr. Best shared a comprehensive example of a successful upgrading strategy in the Caribbean region developed by NIPPA and the Dominica pineapple industry and in association CARICOM/CARIFORUM food security promotion. It began with a Pineapple Value Chain Upgrading Strategy and Action Planning Workshop in Dominica that mapped the original value chain and identified key service providers. Participants agreed on a vision to improve competitiveness and sustainability of the pineapple industry in the country. Preliminary upgrading objectives were determined based on intuitive knowledge and industry understanding based on internal and external environmental factors. The preliminary strategy outlined the objective for NIPPA to gain direct access for direct export to new markets within CARICOM. Based on Value Chain Framework, the strategy focused on increasing income and reducing costs to producers. Immediate actions, under FAO support, were: product upgrading through branding, pack houses, and value-added cordials and jams; functional upgrading from a marketing perspective; and process upgrading through distribution and production planning. The group identified a list of key service providers and selected a value chain coordinating committee (VCCC) and a TOR. NIPPA was chosen as the value chain driver that organized regular meetings. The next major step was to modify the original objective for the work plan with a planning matrix based on all stages of the preliminary value chain analysis. They identified a market gap, did an agro-processing engineer audit, conducted an audit of the supply base, and developed a new business model. The immediate action themes were marketing, post-harvest, production base, and input supplies. At the time of the workshop, the first round of immediate actions had 17

18 successfully been implemented, and the upgrading strategy continues to be a work in progress. The strategic plan involves only a few actions of high impact in the beginning, followed by subsequent program and work-plan improvements over the long-term. A map of the original Dominica Pineapple Value Chain and the Upgraded Conventional Pineapple Value Chain are included in the appendix. Debrief of Day One Sessions Mr. Robert Reid; IICA The second day of the workshop began with a brief synopsis of the activities undertaken from day one. The objective was to reinforce the previous day s lessons imparted, ensure a solid understanding of the definition of the value chain, and discuss the key observations made. Motivation in Value Chains and Dialogue Mechanisms Mr. Reid revisited the question of what triggers and motivates actors to participate in a value chain. Answers surfaced such as: common interest, profits, networking and relationships, and opportunities. Although these are valid responses, Mr. Reid stressed the importance of a constant and sustainable dialogue mechanism established as the pivotal factor in motivating and triggering farmers to work together. Information sharing among parties, and having a mechanism that enables this flow of communication, is critical when bringing people together in value chains; it helps different parties understand common threats, needs, and opportunities. It is these commonalities that drive and motivate people to work together and form value chains. Ultimately, this can lead to an increase or stabilization of profits, and a greater control of the market. In order to sustain these mechanisms, parties must look beyond short-term interests or problems, as once these are solved, value chains may begin to dissipate. Organizations must look at the short-, medium-, and long-term in order to build sustainable relationships. This process of evaluation and dialogue between members is ongoing. Challenges Although these mechanisms are great in theory, funding represents a major problem, especially within the Caribbean region. If the volume of turnover of investments from value chain members fails to sustain these mechanisms, the whole system may break down. Thus, external funding must be considered as a viable option to help alleviate these financial constraints. An example of a successful value chain involving small farmers, exporters, and importers was shared regarding Fiji red papaya. The value chain actors have regular meetings, are transparent, and ensure accountability. The key to success is having a technical secretariat, and this secretariat requires financial support or funding. If the chain itself does not fund it, it is reasonable to seek outside donor assistance. 18

19 2.6 Working Groups: Constructing a Capacity Building Programme for the Upgrading of Selected Value Chains Mr. Heiko Bammann/Mr. Robert Best; FAO Participants were divided into four groups that would develop chain upgrade strategies and capacity building programmes for selected commodities at the national level, with particular reference to the role of farmer organizations. Selected crops and target countries for participation were: Sweet Potato Saint Vincent, Barbados, Dominican Republic, Guyana, St. Kitts Ginger Jamaica, Saint Vincent, Dominican Republic, Grenada Golden Apple Trinidad, Grenada, Saint Vincent Pineapple Dominica, St. Lucia, Saint Vincent, Guyana, Antigua Based on the role of farmers organizations, each group was asked to: (1) identify key/main constraints, with consideration of each country; (2) determine the main areas of intervention needed for upgrade; and (3) develop a three-year action plan. Notes and Considerations In conducting an exercise such as the following it is important to be cognizant that although a value chain for a certain commodity can offer a model of guidance, it should not necessarily be transferred directly to a different country without proper analysis. This is due to variance in players, internal and external factors, and constrains and challenges specific to that environment. In preparing for the working groups, certain matters set for consideration. First, it was necessary to make a distinction between a farmer group and a value chain. Members were also asked to assess the situation of the relative size of all actors in the chain and consequently determine how to link and incorporate small farmers into global value chains. These small farmers, who are majorly responsible for root crops in the Caribbean, are generally individualistic, concerned with price, and have a very different set of endowments and characteristics than larger entities. Another important question to consider is how organizations can build an upgraded value chain with small farmers who have to interface with large global players, and moreover how they can be empowered to effectively negotiate. The role of the farmers organizations is to bring together all players, including farmers of different sizes, and to equally represent their best interests. Role is to bring the players together, facilitate. The organization plays a facilitating role with each individual interaction along the value chain, whether it be clustering groups of farmers to produce high quality commodities that meet the standards and demands of the market or overseeing product branding. It is the leadership role of the organization to ensure market information is shared with members. 19

20 2.7 Working Groups: Plenary Session and Discussion Mr. Robert Best; FAO The objective was for group participants to articulate and discuss chain upgrading strategies and capacity building programmes for their respective crops. These strategies were eventually put into four brief power point presentations. The following approach was taken in developing these strategies: 1. Mapping of current value chain 2. Vision statement 3. Objectives (of upgrade) 4. Constraints 5. Strategic Interventions 6. Immediate Actions SESSION III: DEVELOPING A FARMER/CaFAN-LED ACTION PLAN FOR VALUE CHAIN UPGRADING Drafting a Producer-led Plan of Action for Value Chain upgrading strategies, development in the Caribbean region Based on CaFAN Production and Marketing Programme - Jethro Greene; CaFAN, Robert Reid; IICA The learning objective of this session was to arrive at a consensus as to the approach and mechanisms to be adopted in developing upgraded value chain strategies for crops related to CaFAN s production and marketing program. In presenting their working group results, participants defined the basic elements of a potential action plan for each commodity value chain for the Caribbean region. 3.1 Golden Apple Value Chain Upgrade Trinidad, St. Vincent, Grenada Key players were identified as agro supply shops, farmers organizations, agribusiness institutions, other farmers, sole traders, supermarkets, hotels, wholesalers, and retailers. The major chain enablers were identified as the Ministry of Agriculture (MOA), public health, standards bodies, and food safety institutions. Distribution and consumption would be seen through wholesalers, institutional bodies, retailers, fresh produce markets, hotels (all domestic consumers), supermarkets (sole traders), and exports (regional consumers and sole traders). Chain Suppliers and service providers include private/family resources, development banks, and state development institutions. Vision: To develop a robust, competitive and economically viable golden apple industry supplying a range of products that are consistent, safe, and wholesome for consumers. Objectives: 1. To improve the reliability and consistency of supply of quality golden apples. 2. To facilitate a more enabling environment by establishing an effective dialogue platform among actors, advocating for policy changes and developing a joint action plan. 20

21 Key Constraints Interventions (Strategy) Action Plan (1-3 years) 1. Lack of quality planting materials Policy framework Establish protocol for sourcing and importing material. 2. Labour, machinery and equipment (availability, access, and timeliness) Strategy to make labour, equipment, and machinery more attainable. 3. Appropriate technology Technology needs to be addressed with respect to harvesting. 4. Inadequate physical infrastructure and facilities 5. Lack of awareness and poor information flows Infrastructure development program Development of databases, and information and management systems. Mandate (as a matter of policy) training for all recipients of state resources such as land, planting material, and equipment. Establish a pool of resources with specialized equipment to provide services. Establish one centralized packing facility per year in golden apple growing communities. Undertake national census of growers, including amount planted, expected harvest, and harvest date. By identifying these main constraints, an effective action plan can be made in order to further develop the golden apple value chain. The idea for mandating training stemmed from an example from Trinidad and Tobago where farmers could only apply for loans after six months of training. This helped increase farmers efficiency and effectiveness while preserving the life of the tools. For the action plan regarding appropriate technology, farmers could pay through a private sector initiative or the services could be funded through government subsidies. The national census would be easy to implement for golden apples because tree crops are long-term crops and easy to track. A suggestion for this strategy is to be mindful of the amount of public intervention required for these action plans, which can be a lengthy process. A second recommendation came out of this discussion, and suggested using a specialized picking service by which the farmers would hire a company to pick their apples, inspect and grade the crops according to industry standards, and then sell them to buyers. 3.2 Pineapple Value Chain Upgrade Dominica, St Lucia, Guyana, Antigua, St Vincent Key players: Farmers organizations, shipping agents, financial institutions, research institutions, development agencies, individual farmers, input suppliers, NGOs, and policymakers. In mapping the pineapple value chain, numerous constraints were evident (See Appendix). However, it was noted that although many constraints may exist, not all apply to each country involved. Further, the constraints that present the biggest bottleneck or trigger in upgrading the value chain should be most focused on. 21

22 For Pineapple farmers, the industry was defined as one with limited resources, inputs and low production. Production inconsistency is high due to seasonality, and inputs are limited and less attainable due to their high financial cost. Vision: To strengthen farmers organizations through appropriate marketing, information, and distribution mechanisms that will allow for better collaboration among farmers, and to infuse youth and mechanization into this process. Key Constraints Interventions (Strategy) Action Plan (1-3 years) Implement youth programs such as business mentoring Labour: availability, cost, and aging labour pool High input and packaging costs Bulk purchasing through collaboration and farmers organizations Year 1: Strengthen organizations through private and public initiatives, establish coordinating mechanism across island to enable information sharing, engage in capacity building training. Market research and export price determination Lack of adequate marketing, distribution and communication mechanisms Inefficient production, post handling, and pest management High competition of local vs. imported, and poor standards Strengthen and focus on flow across territories Capacity building training and mechanization of farming techniques Undertake competitiveness studies Year 2: Establish legislative, policy framework and land banks, apply water resource management, add certification and credit policies Year 3: Begin competitiveness studies, branding and promotion (abroad in countries being marketed to through trade shows), develop new product ideas Due to the nature of the industry, these five constraints were highlighted as the most inhibiting to the growth of the value chain across all countries involved. In addition to the brief action plan above, throughout all three years of the initiative, youth engagement such as school interventions and business-mentoring programs would be ongoing to encourage youth involvement. Farm demonstration exercises would be scheduled to assist with production efficiency. This could also assist farmers in protecting their pineapples from pests by ensuring they are using appropriate fertilizers and pesticides with the proper soils. In year two, 22

23 legislative and policy framework would assist in communication and standards, while adding certification will increase consistency and quality of products and make it easier to attract larger buyers. This plan again encounters the problem of relying too heavily on public sector relief for many of these problems. A suggestion was to first target high volume areas as opposed to trying to improve production in all farms at the same time. This may reduce the costs of upgrading the value chain, while increasing buyers and expanding markets for both large and small farmers. 3.3 Ginger Value Chain Upgrade Jamaica, St Vincent, Grenada, Dominican Republic The ginger industry in the Caribbean has strong potential for value added activities, especially in areas such as Jamaica and Saint Vincent where they can be easily grown in the countries fertile soil. However, many problems currently inhibit this growth. Ginger has many different varieties with varying qualities, standards, and prices in the international market. Further, pests and diseases such as rhizome rot present themselves as major constraints as well. Opportunities to pursue unique branding positioning exists such as fair trade or organic but these strategies are inhibited by high costs of certification. Turmeric was also mentioned as a potential crop for Jamaica, but the focus remained with ginger for this exercise. Objective: To improve overall conditions in order to develop the value chain of ginger. Key Constraints Strategy Action Plan (1-3 years) Strengthen production capacities 1.Poor coordination among farmers and farmers organizations regionally and interregionally 2. Lack of dialogue mechanism 3. Lack of good quality planting materials, free of disease and pests Promote the development and enforcement of policies in favor of ginger s value chain 1. Research 2. Development of cultivars and systems for dissemination 3. Training and technical assistance 4. Certifications 1. Access to credit and land 2. Legal and policy framework 3. Policies for creation of value added 4. Arbitration mechanisms 5. Trade and food safety policies 4. Barriers to entry and international competition Increase the worldwide market share for Caribbean 1. Market research 2. Promotion 23

24 5. High input, certification, and labour costs ginger Foster VC national and interregional articulation and coordination 3. Market niches 4. Creation of value added products 5. Geographic indicators and branding 1. Regional and nationals value chains 2. Establishing of VC dialogues 3. Establishing of VC Committees 4. Implementation and monitoring of action plans in each VC To tighten the information gap between farmers, a system of evaluation was proposed to help establish which ginger varieties are available and at which qualities. This will also ease the process of finding appropriate markets with products that meet specific consumer demands. To further assist with marketing and to identify market niches abroad, market research and profitability analysis should be undertaken. With stronger information exchange through value chain dialogues and committees, collaboration may occur more easily. An official program for disease control, traceability, training, and import of material and research should be implemented to improve the quality and consistency of the ginger. Establish systems (including greenhouses) for reproducing clean material. 3.4 Sweet Potato Value Chain Upgrade St Vincent, Barbados, Guyana, St Kitts, Dominican Republic Key players in the chain were identified as input suppliers and farmers. Traders in the Dominican Republic and Trinidad and Tobago included pack houses and shippers, ECTAD in Saint Vincent, and the other countries identified no pack house or shipper. Buyers were to be determined by CaFAN. Objectives: 1. Improve the consistency of supply 2. Increase overall product quality Key Constraints Interventions (Strategy) Action Plan (1-3 years) Government intervention for agricultural financing, land availability, and pesticide access Access to appropriate fertilizers, packaging material, Year 1: -Identify markets, and get commitments from buyers (CaFAN, VCCM) -Identify standards and 24

25 Production Issues- BMP training, pest control, correct planting materials, high costs Post Harvest handling damage, lack of good agricultural practices Trader/Buyer Relations trust to pay, no trader available, poor contracts, and long waiting periods for payment Coordinating production, financing and timely land preparation Support and training for BMP, government intervention for pesticide regulation (MRL) Technical support for post harvest production and management (competitive pricing, quality/standards, food safety), GAP training, PPP s for pack houses Government intervention for information sharing, and legislation, and providing a meeting space for VCCM Sharing market and farmers information, National and Regional VCCM strengthening demands of markets. -Set-up factoring system: revolving fund to guarantee payments (FO s, CaFAN) Year 2: Strengthen regional VCCM and establish national secretariat: to share market info and allocate volumes to market, lobby on key issues, update production process of VC, facilitate and coordinate planting, and establish dialogue platform Year 3: Selling products to export markets (VCCM, whenever all other activities have been set-up) -Monitoring and feedback as a continuous activity once all other engagements have been set-up (National and Regional VCCM) Sharing market information and strengthening farmers organizations allows for a more complete understanding of the chain s complexities; thus, farmers can be represented and supported more adequately. With a dialogue mechanism that allows for information sharing, differentiation and branding support opportunities can be pursued. Through agreed interaction, groups within the sweet potato value chain can improve their governance, management, member communication, policy issues, strategic planning, negotiation, advocacy etc. Additionally, VCCM strengthening would be implemented to remove constraints that prevent stakeholders from working together effectively. Throughout all three years of the action plan, technical support should be implemented to encourage best management and agricultural practices, involving institutions and organizations such as CARDI, IICA, FAO FO, MOA, COLEACP, and CTA. 25

26 3.4 Lessons Learned The following are the key lessons learned from the regional value chain workshop: Understanding of the value chain process and its mechanisms Characteristics of a successful value chain and its enabling environment Dialogue mechanisms and their importance to motivating actors to become involved within the value chain Practical case studies and their key lessons learned were imparted on the group Tools and mechanisms for upgrading value chains CaFAN production and marketing strategy for roots and tubers Action plans for four specific crops within the region, and how they will upgrade their value chain 3.5 Upcoming Challenges Upon analyzing and discussing the various action plans for specific crops, some challenges did arise. Firstly, much of the intervention strategies leaned heavily on public sector support. Relying too heavily on government bodies can slow the process of value chain implementation, and funding for these initiatives may not be available. This poses a greater threat to regions where infrastructure and topography issues arose, as these constraints can be very difficult to overcome without external funding. Lobbying for key issues may be a healthy alternative in some instances. Another challenge is the cost to establish dialogue mechanisms within a value chain. Many of these chains consist of small farmers and farmer organizations, which may lack adequate resources or capabilities to support these sophisticated information systems. An alternative to this solution is to source outside funding to assist in these costs, but this puts the onus on a third party. The final key challenge was creating an inclusive upgrading strategy in sectors with multiple stakeholders, each possessing varying needs, resource endowments, and capabilities. 3.6 Recommendations The following are recommendations for CaFAN members looking to upgrade their respective value chain, specifically; golden apples, ginger, pineapples, and sweet potatoes. Please refer to individual action plans for more detailed recommendations: Create a dialogue mechanism that increases collaboration and information sharing among value chain members. Establish national secretariat: to share market info and allocate volumes to market, lobby on key issues, update production process of VC, facilitate and coordinate planting, and establish dialogue platform. Identify key constraints that inhibit the growth and development of the VC, and look to establish solutions based on these bottlenecks. 26

27 Establish protocol for standards, quality of produce, and legislative/policy framework to improve credibility and accountability. Establish revolving funds to aid farmers in acquiring inputs, fertilizers, and machinery. Create a monitoring and feedback system in support of a dialogue mechanism to ensure a sustained flow of information along the value chain. 4 Follow-up Action, Closing Remarks, and Workshop Evaluation - Mr. Jethro Greene, CaFAN, and Mr. Robert Reid, IICA A brief survey was completed to evaluate the outcome of the workshop and provide feedback moving forward. Mr. Reid informed participants that based on criteria for selection from IICA, the organization has determined the following as top considerations under the Hemispheric Project: 1. Jamaica ginger and turmeric 2. Trinidad and Tobago golden apple 3. Barbados cassava 4. Saint Vincent dasheen 5. Dominican Republic banana 6. St. Lucia pineapple In concluding the two-day workshop, Mr. Greene delivered a short debriefing to participants. CaFAN was very impressed by the level of sophistication and pleased with the quality of participation throughout the workshop. He urged participants to not be intimidated by the extensive list of constraints that derived from the sessions, as not all will apply to every country, nor will they be completely inhibiting. Moreover, the list of commodities under priority from IICA should not send alarm, as what guides the development of commodities is the market, and CaFAN will continue to pursue its market-led approach. If a market and potential for market expansion exists it will be pursued. Special thanks and appreciation were extended to the CaFAN team, FAO representatives, and the participation of all members. Mr. Greene acknowledged the growth of the CaFAN family by its improved relationship with IICA. With the success of all members efforts, it is expected that by the end of 2011 three profile projects will have reached the market. 27

28 Programme APPENDIX DAY ONE: Friday September 23 rd 2011 Time Topic Learning Objectives Resource Persons 8:30-9:00 a.m. Registration Overview of Workshop and intended outcome Participants have a clear understanding of the workshop s objectives Jethro T. Greene; Chief Coordinator, CaFAN SESSION I REVISITING THE VALUE CHAIN CONCEPT The concept of a food value chain 9:00 10:00 a.m. Food Supply Chains vs. Food Value Chains the difference Discussion: Clarity and Articulation of VC concept 10:00 11:00 a COFFEE BREAK Participants internalize and are able to articulate the Value Chain concept to producers and other stakeholders Robert Reid; IICA SESSION II BUILDING FOOD VALUE CHAINS: CARIBBEN EXPERIENCE AND BEST PRACTICES 11:00 12:00 Characteristics of a successful value chain and requirements to get there Participants have clear appreciation of the process of building Value Chains. Heiko Bammann; FAO Caribbean Case Studies: Onion chain Barbados 12:00-1:00 p.m. White Potato chain Jamaica Pineapple chain St. Lucia Pork chain Jamaica Root crops- St. Vincent 1:00-2:00 p.m. LUNCH Participants gain insight into practical commodity VC experiences/practices in various Caribbean countries James Paul; Barbados Agricultural Society 2:00-3:00 p.m. 3:00-3:30 p.m. The Role of Farmer Organizations in developing Food Value Chains in the Caribbean BAS (Barbados) BVFC (St. Lucia) ECTAD (St. Vincent) JPFA (Jamaica) CaFAN s Integrated Production and Marketing project Participants gain insight into specific issues and activities that Farmer Organizations should address so as to ensure proper participation of producers/ small holders in value chain initiatives Participants appreciate the initiatives of the regional farmer s organization to support the production and marketing of specific commodities Robert Best; FAO Jethro Green/John Solar; CaFan 3:30 3:50 p.m. Value Chain Upgrading Strategies and Tools Participants understand what a value chain upgrading strategy is Heiko Bammann; FAO 28

29 and how it is being developed Robert Best; FAO 3:50 4:15 p.m. Working groups: Constructing a capacity building programme for the upgrading of selected value chains root crop (sweet potato), fruit (golden apple), spice (ginger) Participants develop chain upgrade strategies and capacity building programmes for selected commodities at the national level, with particular reference to the role of farmer organizations DAY TWO: Saturday 24 th, 2011 Time Topic Learning Objectives Resource Persons 8:30 8:45 a.m. Recap of Day I and Day II activities Reinforce lessons imparted, key observations made etc. Robert Reid ; IICA 8:45 9:45 a.m. Working Groups: Continued 9:45 10:00 COFFEE BREAK 10:00-11:30 am Working Groups- Plenary Session and discussion Group leaders/ participants articulate and discuss chain upgrading strategies and capacity building programmes for selected products Robert Best; FAO 11:30-12:00 noon Supporting Initiatives by development partners/moa: FAO IICA MOAs Participants are appraised of current and planned initiatives to support value chain development in the Caribbean region Heiko Bammann; FAO Robert Best; FAO Robert Reid; IICA MOAs 12:00-1:00 pm LUNCH SESSION II DEVELOPING A FARMER/CaFAN-LED ACTION PLAN FOR VALUE CHAIN UPGRADING 1:00-1:30 p.m. Approach/Mechanisms to be build synergies at the regional and national level for the implementation of value chain upgrading strategies and capacity building programmes Participants arrive at consensus as to the approach and mechanisms to be adopted Jethro Green; CaFAN 1:30 2:30 p.m. Drafting a Producer-led Plan of Action for Value Chain development in the Caribbean region, based on CaFAN production and marketing programme Participants define the basic elements of a Action Plan for Commodity Value Chain Development in the Caribbean region (with support from development partners) Jethro Green; CaFAN 2:30-3:00 p.m. Follow-up action, Closing remarks and Workshop Evaluation Jethro Green; CaFAN Robert Reid; IICA 29

30 Participants list No. Name & Organization Country Phone Number & Address 1. Pamella Thomas Antigua and Barbuda Team Fresh Produce Cooperative 2. Keeley Holder Barbados Barbados Agricultural Society BAS 3. Barbados (246) James Paul Barbados Agricultural Society BAS com 4. Woodwille Alleyne-Jones Barbados Barbados Agricultural Society BAS Damien Hinds Inter American Institute for Cooperation on Agriculture (IICA) Andre Devonish Ministry of Agriculture Michael W Browne Consultant Nadia Pacquette-Anselm Dominica Export Import Agency NES/DEXIA Manuel Messina Inter American Institute for Cooperation on Agriculture (IICA) Emilio Martinez JAD Phillip Mitchell North East Farmers Organisation (NEFO) Dhaniram Ramchand Guyana Agricultural Producers Association (GAPA) Yonneth Fortune Kuru Kuru Farmers Crop and Livestock Association KKFCALA Renortha Penny Christiana Potato Growers Cooperative Association (CPGCA) Michael Pryce Ministry of Agriculture and Fisheries MOAF- Jamaica Answorth Riley Inter American Institute for Cooperation on Agriculture (IICA) Angella Bardowell JPFA Ioanna de Barros Food and Agriculture Organisation of the United Nations (FAO) Heiko Bammann Food and Agriculture Organisation of the United Nations (FAO) Barbados damien.hinds@iica.int Barbados andredevonish@yahoo.com Barbados pauley@caribsurf.com Dominica dexia@cwdom.dm / nesdominica@cwdom.dm Dominican Republic manuel.messina@iica.int Dominican Republic e.martinez@jad.org.do Grenada Guyana Guyana Jamaica Jamaica Jamaica Jamaica Rome Rome GREENTOLiFE@gmail.com renorthapenny@hotmail.com mapryce@moa.gov.jm ainsworth.riley@iica.int anbardowell@yahoo.com Ionna-DeBarros@fao.org 20. Leonard Herbert St. Kitts and Nevis

31 St Kitts Farmers Co-operative Society Vincent La Corbiniere Ministry of Agriculture Curt Delice Inter American Institute for Cooperation on Agriculture (IICA) Ignatius Jean St. Lucia Pineapple Association Audrey Walters-Butler Eastern Caribbean Trading Agriculture and Development Organisation (ECTAD) Stacy Rose-Richards Caribbean Farmers Network (CaFAN) Jethro Greene Caribbean Farmers Network (CaFAN) Stephanie Dewar Caribbean Farmers Network (CaFAN) Conroy Huggins Eastern Caribbean Trading Agriculture and Development Organisation (ECTAD) Sustang Fergus Caribbean Farmers Network (CaFAN) Christopher Attadia Caribbean Farmers Network (CaFAN) Lesley Grant Ministry of Agriculture Michael Dalton Inter American Institute for Cooperation on Agriculture (IICA) Robert Best Food and Agriculture Organisation of the United Nations (FAO) Edric Harry Inter American Institute for Cooperation on Agriculture (IICA) Yvonne Davidson-McKenzie MFPLMA Terrance Haywood NFFA Trinidad John Soler Solcarib Ltd Dhano Sookoo Agriculture Society of Trinidad and Tobago ASTT Orwin Dillon Tobago Agriculture Society Robert Reid Inter American Institute for Cooperation on Agriculture (IICA) St. Lucia St. Lucia St. Lucia St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines St. Vincent and the Grenadines Trinidad and Tobago Trinidad and Tobago Trinidad and Tobago Trinidad and Tobago Trinidad and Tobago Trinidad and Tobago Trinidad and Tobago Trinidad and Tobago / cafanectad@gmail.com Robert.best@fao.org ext / dhano.sookoo@gmail.com / agrisoctt@yahoo.com orwindillon@hotmail.com robertreid79@gmail.com, 31

32 Fruit Producers Co-op Value Chain Example Where do the dollars go in this chain? An example: A fruit producers co-op How are the dollars shared? Input CHAIN MEMBERS Suppliers Fruit Producers Co-op 11 Freight Company 4 2 Exporter Importer Wholesaler Retailer For one carton of 20 fruit, retailed at $2 each, consumers pay a total of $40. This is the total dollar value created, to be distributed within the chain CHAIN MEMBERS Input Suppliers Freight Company Fruit Producers Importer Wholesaler Retailer Exporter Margin Share of $ Retailer $16 40% Wholesaler $3 7.5% Importer $4 10% Exporter $2 5% Freight Forwarder $4 10% Primary Producer $ % Chain members shares of the consumer dollar Producer 27.5% Freight 10% Exporter 5% How are the dollars shared? Retailer 40% Wholesaler 7.5% Importer 10% How do chain members maximise their share? Is there another way to increase members shares? GROW THE PIE Growing the pie = Creating and sharing more value GROWING THE PIE TWO GROUPS OF STRATEGIES 1. Strategies that reduce costs Greater efficiency Greater effectiveness 2. Strategies that increase income More customers More sales per customer A higher price Key Questions to Ask in VC Analysis and Mapping Exercises What information can you feed into the value chain map? What are the core processes in the value chain? Who are the actors involved in these processes and what do they actually do? What are the flows of product, information and knowledge in the value chain? What is the volume of products, the number of actors and jobs? Where does the product originate from and where does it go? How does the value change along the chain? What types of relationships and linkages exist? What types of services are feeding into the chain? What is the location and position of the poor in the value chain? What key constraints exist at various levels in the chain and what are potential solutions to those constraints? How do products, information and knowledge flow through the value chain? What are costs, margins, profits, losses, and risks at the different levels of the value chain? 32

33 Original Dominica Pineapple Value Chain Upgraded Pineapple Value Chain 33