1.2 Contact details of resource persons and institutions involved in the assessment and documentation of the Approach

Name of the institution(s) which facilitated the documentation/ evaluation of the Approach (if relevant)

HELVETAS (Swiss Intercooperation)

Name of the institution(s) which facilitated the documentation/ evaluation of the Approach (if relevant)

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (GIZ) - Germany

1.3 Conditions regarding the use of data documented through WOCAT

When were the data compiled (in the field)?

01/07/2012

The compiler and key resource person(s) accept the conditions regarding the use of data documented through WOCAT:

نعم

2.1 Short description of the Approach

Improve the income of family farms by setting up an organized trade mechanism that factors in market price fluctuations.

2.2 Detailed description of the Approach

Detailed description of the Approach:

The objective of the practice is to improve the income of family farms by setting up an organized trade mechanism that factors in market price fluctuations. Structuring trade in this way puts producers in a stronger position in their value chains.
The FaAOs’ approach to trade is based, on the one hand, on purchase agreements for preservable produce (cereals, sesame, etc.) between the FaAO and its producers and, on the other, on sales contracts with one or several market operators/suppliers. The practice enables producers to sell their produce after the harvest at an attractive price, depending on market fluctuations. For the operator, it means a large quantity can be purchased over time, without the need for mobilising major pre-financing resources. As the intermediary, the FaAO benefits from a profit margin and charges levied on transactions.
Stages of implementation: 1) Estimating the areas of family farms that are members of the FaAO: Together with its producers, the FaAO calculates sown areas (of rice, for example) fairly speculatively, providing the first estimates of future outputs. 2) Estimating outputs: Prior to harvesting, the initial estimates made in stage 1 are further refined through crop inspections. 3) Evaluating the quantities for home consumption and for sale: After the harvest, FaAO producers assess what part of their output will be retained for home consumption and what will be sold. 4) Contracting between the family farms and FaAO: The FaAO enters into a contract with the producers for the part to be sold. 5) Contracting between the economic operator and FaAO: Research into economic operators; At a consultation day involving producers, FaAO and operators, a contract is negotiated between FaAO and the operators, who will factor in price increases up to the lean period. Operation: Introducing this approach requires a robust FaAO or family farm, a market analysis and good quality produce. The portion of the output for sale is transferred to the FaAO storage facility. The operator draws down this produce over an extended period. The price for each consignment varies according to the market rate prevailing at the time the produce is drawn down.
Producers provide, process and pack the produce, and enter into a contract with FaAO. The apex organisation researches economic operators, negotiates the sales contract on behalf of the economic operators, stores the produce, monitors sales and manages rebates. Operators draw down produce in line with the terms of the sales contract, and make payments accordingly. Support partners deliver training, provide advisory support and foster contacts.

2.3 Photos of the Approach

2.5 Country/ region/ locations where the Approach has been applied

2.6 Dates of initiation and termination of the Approach

2.7 Type of Approach

• project/ programme based

2.8 Main aims/ objectives of the Approach

The objective of the practice is to improve the income of family farms by setting up an organized trade mechanism that factors in market price fluctuations. Structuring trade in this way puts producers in a stronger position in their value chains.
The SLM Approach addressed the following problems: low income of family farms, market price fluctuations

2.9 Conditions enabling or hindering implementation of the Technology/ Technologies applied under the Approach

3.1 Stakeholders involved in the Approach and their roles

3.2 Involvement of local land users/ local communities in the different phases of the Approach

	Involvement of local land users/ local communities	Specify who was involved and describe activities
initiation/ motivation	passive
planning	interactive
implementation	interactive
monitoring/ evaluation	interactive
Research	passive

3.3 Flow chart (if available)

3.4 Decision-making on the selection of SLM Technology/ Technologies

Specify who decided on the selection of the Technology/ Technologies to be implemented:

• mainly SLM specialists, following consultation with land users

Explain:

Decisions on the method of implementing the SLM Technology were made by mainly by SLM specialists with consultation of land users

4.1 Capacity building/ training

Was training provided to land users/ other stakeholders?

نعم

Specify who was trained:

• land users

Form of training:

• on-the-job
• farmer-to-farmer
• public meetings

Subjects covered:

Support partners deliver training, provide advisory support and foster contacts.

4.3 Institution strengthening (organizational development)

Have institutions been established or strengthened through the Approach?

• yes, greatly

Specify the level(s) at which institutions have been strengthened or established:

• local

Specify type of support:

• financial

Give further details:

Improve the income of family farms by setting up an organized trade mechanism that factors in market price fluctuations. Structuring trade in this way puts producers in a stronger position in their value chains.

4.4 Monitoring and evaluation

Is monitoring and evaluation part of the Approach?

نعم

Comments:

socio-cultural aspects were ad hoc monitored by project staff, land users through observations
economic / production aspects were regular monitored by project staff through measurements
management of Approach aspects were ad hoc monitored by project staff through observations
There were no changes in the Approach as a result of monitoring and evaluation
There were no changes in the Technology as a result of monitoring and evaluation

4.5 Research

Was research part of the Approach?

نعم

Specify topics:

• sociology
• economics / marketing

5.1 Annual budget for the SLM component of the Approach

Comments (e.g. main sources of funding/ major donors):

Approach costs were met by the following donors: international non-government: 100.0%

5.2 Financial/ material support provided to land users

Did land users receive financial/ material support for implementing the Technology/ Technologies?

لا

5.4 Credit

Was credit provided under the Approach for SLM activities?

لا

6.1 Impacts of the Approach

6.2 Main motivation of land users to implement SLM

6.3 Sustainability of Approach activities

Can the land users sustain what has been implemented through the Approach (without external support)?

• uncertain

6.4 Strengths/ advantages of the Approach

Strengths/ advantages/ opportunities in the compiler’s or other key resource person’s view
Bank loans guaranteed as a result of retained stocks and management tools
Guaranteed revenues for small-scale producers
Improved post-harvest management
As revenues grow, producers seek to maximise their cropping schedules in order to earn more money. The approach offers producers greater opportunities to access enhanced seeds and inputs (credibility among service providers). When prices become more lucrative, producers are less inclined to sell off their harvest; the risk of slumps in prices is minimal. Incomes are stabilised, which improves living conditions and social cohesion. Communities are better able to pay taxes and more receptive to formalised contracts.
Price stabilisation (to prevent produce from being sold-off) and improved producer incomes (How to sustain/ enhance this strength: A thorough market analysis must be conducted to enable market price fluctuations to be accurately predicted and the best times for sale to be pinpointed. Client relationships must be professional and contractual. Informal commitments often fall through. The FaAO must have committed and business-minded leaders. It is wise to stay vigilant when it comes to the governance of these organisations, as they can fall prey to corrupt practices and the embezzlement of collective funds.)

7.1 Methods/ sources of information

7.2 References to available publications

Title, author, year, ISBN:

Manual of Good Practices in Small Scale Irrigation in the Sahel. Experiences from Mali. Published by GIZ in 2014.

Available from where? Costs?

http://star-www.giz.de/starweb/giz/pub/servlet.starweb

Title, author, year, ISBN:

HELVETAS Swiss Intercooperation: annual report 2010-2011 for the San Hub (Pôle de San)

Title, author, year, ISBN:

HELVETAS Swiss Intercooperation (2013): JIGIYA programme evaluation report