FAO, IFAD sign agreement to promote smallholder financing

Ms Eugenia Serova, Director FAO Rural Infrastructure and Agro-Industries Division, with Adolfo Brizzi, Director of IFAD's Policy and Technical Advisory Division.

The UN Food and Agriculture Organization and the International Fund for Agricultural Development (IFAD) on the 11th of February 2013 have signed an $875 000 agreement aimed at helping small farmers and rural households in developing countries gain improved access to agricultural and rural finance, thereby enabling their investments.

The three-year grant agreement is intended to generate new policy tools and training materials for public-sector agencies, donors, financial institutions and NGOs working to enhance smallholder access to financial services including credit, savings and insurance.

The knowledge gained will be disseminated world-wide through the Rural Finance Learning Center (RFLC), a jointly supported web platform managed by FAO which has been operating since 2004.

The grant agreement was inaugurated here last Friday during the annual meeting of the Improving Capacity Building in Rural Finance  (CABFIN) partnership, which groups the German International Cooperation Agency GIZ, the World Bank, the UN Capital Development Fund (UNCDF) as well as FAO and IFAD. The grant will support CABFIN's work plan for 2013-15. 

"Many development agencies said finance for agriculture was too risky and difficult. The CABFIN Partners believed otherwise and 10 years ago initiated a plan to jointly address learning on polices, products and models by sharing information on how it can be done, by creating the RFLC information gateway and by jointly developing technical guidance documents and working together on strategic initiatives in the sector. The continued and growing commitment of the partners is testament to the global success and impact from the collaboration," said FAO Senior Agribusiness and Finance Officer Calvin Miller.

"This  is a real model of coordination, cooperation, and harmonization in the field of rural finance and agricultural investment. It not only promotes sharing information among local public and private partners, it supports an environment of knowledge sharing and dialogue across regions," said Michael Hamp, IFAD Senior Technical Adviser, Rural Finance.

Rural Finance Learning Centre.

The RFLC is a key component of the CABFIN partnership. It ensures lessons and advice collected from around the world is broadly disseminated among the relevant stakeholders promoting access to agricultural and rural finance. It currently offers more than 3,000 selected and abstracted documents that governments, financial institutions and other organizations can use to design improved financial services, strategies and innovations to serve rural communities.

The RFLC is also the largest source of training courses and capacity building resources on the topic. The online centre serves visitors in three languages, who come from an average of 130 countries each month.

Smallholder agriculture and related businesses currently suffer from under-investment. The objective of the CABFIN partnership is to turn the situation around by enabling local institutions to learn, from others, how to offer improved, specifically-tailored financial products and risk management strategies that make such investments more attractive, including investments by rural households themselves. CABFIN also offers policy tools and advice to governments and public stakeholders.

Smallholder finance

Credit schemes designed for smallholders must, for example, take account of the agricultural cycle and provide flexible repayment plans that fit in with the cash flow of small farmers, who have little income between the planting and harvest seasons.

As an example of CABFIN initiatives, the Rabobank Group collaborates with FAO and other CABFIN members to share its experiences working with producer organizations in sub-Saharan Africa, in order to jointly develop this appropriate agricultural credit product as well as complementary products such as insurance, savings and local institutional development.

FAO has been acting as a facilitator in bringing stakeholders together, drawing and sharing lessons from such experiences.

According to FAO's flagship publication, The State of Food and Agriculture 2012, "only by catalyzing investments by farmers and directing public investment appropriately can we achieve a world in which everyone is well nourished and natural resources are used sustainably."

SOURCE- http://www.fao.org/news/story/en/item/169727/icode/

FAMILY FARMING – a means to Promote Youth’s Involvement in Agriculture and Agribusiness

Andres Solari, his father and me, Olawale Ojo during Solari's farm visit, during the GCARD2, Punta Del Este, Uruguay.

Among the many highlights of my participation at the Second Global Conference on Agricultural Research for Development (GCARD2)  with the theme FORESIGHT AND PARTNERSHIP FOR INNOVATION AND IMPACT ON SMALL-HOLDER LIVELIHOODS at Punta del Este, Uruguay on 29^th October to November 1, 2012, one experience that I would not forget very quickly was the visit to the Solari Family Farm in MonteVideo Rural in Uruguay.
Andres Solari a youth and one of the children of Mr. Solari gave a tour of the farm. The seventeen (17) hectares farm was been cared for and operated by the Solari family. These included Andres, his brother and sister, his parents and regular assistance from three of their cousins.
The farm grows peaches, apples, nectars and oranges. The processing section which is right there on the farm produces wines, jam and juice.
Touching was the fact that Andres and his siblings judiciously joined their parents in the daily running and operation of the farm business. “My mother started this farm in 1998” he said while giving a tour of the farm and sharing the history of the farm. The sister and mother handles the marketing and sales aspect of the  farm while Andres, his brother and father work on the farm itself with the support of their cousins and hired labour when necessary.
A showcase of one of the main themes of the conference itself which is PARTNERSHIP was dislayed by the Solari’s family farm. The farm works hand in hand with the National Agricultural Institute and the Department of Agronomy in the University of Uruguay. One aspect of the partnership is the reduction of the use of pesticide by provision of biological pest control at reduced cost. This partnership makes it possible for the products of the farm fit for export and allows for sustainability of the farm and environment. These factors : active involvement of the family members in the business, partnership with research bodies and cooperatives have made high productivity possible for the Solari family farm and these has bagged them so many awards such as the Sociedad Uruguay Dehortifruiticulun Award in 2005, LATU Sistemas in 2006 and right during the visit an Award of Recognition by INIA (the National Agricultural Institute).
The commercialization of their products through retailers, supermarket and joining other growers makes exporting possible for them. As a matter of fact, as at the time of the visit the mother was away in Italy to attend the Slow Food Fair which is one of the so many international fair the farm attends to expand their market base.
The example of Andres is one that African youths and families can learn from. So if you have parents that have farms: are you joining them to make it a sustainable business enterprise? Do you share your professional skills either as an accountant, HR manager, engineer and so on to improve the activities on the farm thus increasing profitability? Taking a clue from the example of Andres and his family can go a long way to elevate poverty in families both in Nigeria and Africa as a whole.

 First Published on YPARD

Representing African Youths in ARD at The GCARD 2

Speaking on behalf of YPARD AFRICA at the FARA Side- event at the GCARD2

YPARD was invited to present to it activities to theThe Forum for Agricultural Research in Africa (FARA) at it pre-event conference side event activities held on the 28^th of October 2012 at the 2^nd Global Conference on Agricultural Research for Development (GCARD2) holding at Punta del Este, Uruguay. The session was focusing on “Catalyzing African Innovations and entrepreneurship” and it was dedicated to showcasing innovations and entrepreneurships within the agriculture knowledge system in Africa. The objectives of the event were

1.    Share at the global level experiences in catalyzing innovations and entrepreneurship by different regional coordinating bodies from extension to youth and civil society organizations and

2.    Create opportunity to discuss possible partnerships with other continents for South-South and North-South Cooperation.

The Forum for Agricultural Research in Africa (FARA) is the apex organization for coordinating and facilitating agricultural research extension and Education in Africa. It hosts YPARD Africa. As a result, among the many stakeholders in ARD such as ASARECA, AFAAS, RUFORUM, PAFFO, NASRO, and PANGOC who were present at the event, YPARD Africa was also present to showcase to the apex body their activities so far and plans for the future.

I was invited to represent YPARD Africa and present activities of the continental arm of the organization to the stakeholders. Among the many things mentioned was the role of YPARD in networking Young Professionals in Agricultural Research for Development together and providing a structure for them to show case their works in all areas of Agriculture.

I also elaborated on the role YPARD plays in not only giving voice to the youths but also bringing it to the doorstep of the stakeholders and senior professionals. A typical example is the lobbying for sponsorship of four YPs from Africa to join 12 others from all over the world to bring the voice of youths to the GCARD2. The role YPARD plays in sharing and disseminating information to the youth was showcased as well. Stakeholders at the event also found interesting the YPARD’s program to showcase the efforts of YP doing well in agriculture through its YP of the month testimonial page on their website and it was applauded.

I went ahead to explain the challenges faced by young professionals and YPARD as an organization. These included:

     i.        The need for Young Professional to have more access to internships, field works and mentorship from the various arms of agriculture.

    ii.        The need to provide training on entrepreneurship and soft skills to improve innovation systems.

   iii.        The problem of making agriculture attractive to young people

   iv.        Value addition to the career with appropriate reward system and

    v.        Funding for more offline activities and administrative activities of YPARD Africa at national levels

The various stakeholders appreciated the effort of YPARD so for and encouraged that the flag be kept flying. These discussions were brought before the global research community during FARA’s presentation at the conference itself.

Olawale Isaiah is an active member of YPARD from Nigeria and was part of the 4 youths from Africa sponsored to be part of the 2^nd Global Conference on Agricultural Research for Development (GCARD2). This is the second of my post-conference posts. Read the first here.

6 WAYS TO A RIGHT START IN AGRIBUSINESS IN 2013.

As we step into the year 2013, a lot of indications at the last quarter cum earlier activity of 2012 shows that serious attention would be drawn to agriculture, with a business unusual dimension for the sector. What this means is that agriculture would no longer be seen as mere farming- a laborious venture with lot of waiting period for benefits to be gotten but rather as a business, a source of employment for the youths, a source of livelihood and most importantly (especially to me) a sector that young people would begin to find desirous and attractive and lucrative.

To succeed as young people- agric entrepreneurs, it is important that we are armed with not only the relevant information, right and appropriate skills to thrive but have a strong desire and see the attractive but BIG picture in Agriculture, Food Supply Chain, Food Safety etc. Here are a few tips i have decided to share with all the young people out there that desire to go into any part of Agriculture cum Agribusiness or that are already into it.

     i.        Be Business Plan Ready: Funding and grant competitions and opportunities would open up in 2013. One of the basic requirements is that you MUST have a business plan. It is important that you have one ready at all times. Like my friend Allavi Elorm of Syecomp Business Services in Ghana said “Make sure your business plan is handy and accessible in both soft and hard copies”. You just have to be ready when the opportunity comes knocking at the door. Be it a competition or the opportunity to pitch your plan before potential clients or investors.

 

    ii.        Leverage on the Skills and Knowledge (of your friends and associates): Involve trusted friends (vision or dream builders) in our endeavour. The world we live in is blessed with very blessed individuals and this offers us a win-win environment. Be willing to ask for help from friends who would be ready to do some tasks for you at no cost or a cheaper one. Let us take this as a typical example, do you need to do graphic design works for branding of your agro firm why not talk to a friend who has got expertise in graphic design. Often times, such ones are willing to do it for free or at a comfortable discount. BUT never take the help or discount for granted.

 

   iii.        Network and Join the right support Organisations: Trust me, been part of he right networks and organisations either online or offline makes it possible to gain access to information and resources needed. A few examples are Young Professionals’ platform for Agricultural Research for Development(YPARD), Harambe Nigeria, Global Youth Innovation Network (GYIN), National Association of Small Scale Industrialist (NASSI) to mention a few. Like the pages and join groups on social networks that relates to agriculture. All these organisations or networks have products, resources, seminars, workshops and other opportunity openings that young agro entrepreneurs need from time to time.

   iv.        Do not Joke with Farmers’ Organisation: Interestingly, government, research institutions, organisation, banks etc. both local and international desire always to align with groups of farmers rather than individuals. So ensure that you are part of a farmers’ organisation or cooperative at the very least. In Nigeria for example, the government recognises the All Farmers Association of Nigeria (AFAN) and they are found in every state of the federation. So make out time and join one. What more, interacting with fellow farmers and agro allied service providers helps in understanding the terrain and create synergy to tackle common problems and challenges.

 

    v.        Be Information Hungry: it is often said that “knowledge is Power”. As young people (with a so much passion, desire that finds Agriculture attractive), we need to be HUNGRY for relevant and credible information and resources. Sometimes this information opens up tips, opportunities and a large array of doors and networks that would be helpful. This brings me to the Power of the Social Media Networks. Merely following the research bodies like CGIAR, FARA, CIMMIT on twitter connects you to lot of information that would be invaluable.

 

   vi.        Engage in Personal Development and Training: Everyday new findings and results are revealed or unravelled through researches. More knowledge is provided about value chains and investment opportunities for entrepreneurs in the sector. As young entrepreneurs it is important that you get the right trainings through workshops, conferences and specialised training classes. Sometimes you have to pay for them. It could be a new method of cropping or livestock management or even soft skills and business management training. All these makes us fit for the sector and ready to excel.

 

Join the revolution of Young Agroprenuers, our Nation waits on us to turn things around. This is real business. Follow these tips and some more you may have gathered on your own and be sure of success. See you all at the top.

THE COOL TO FARM WORKSHOP AKURE,NIGERIA

“Agribusiness, cool business”, these were the words on the lips of the 39 young people who attended the “Cool to Farm” Workshop series in the city of Akure, Ondo State on the 21^st of November 2012.

The “Cool to Farm” workshop was put together by two youth driven organizations the OAC-Agro Advocacy Initiative and Agropreneur Nigeria. The workshop had the theme “it’s Cool to Farm- Exploring the opportunities in Agriculture and Agribusiness for young Nigerian”.

The workshop kicked off with the Olusola Amusan of the OAC- Agro Advocacy Intiative showing to those present the challenges before them as it relates to food wastage, unemployment and increasing population while Olawale Ojo of Agropreneur Nigeria went on a journey of showing to the youth what the agricultural value chain entails and how they can find their place by developing skills to fit in any of the links of the value chain.

The panel session featured stakeholders from key areas of the agricultural sector such as the All Farmers Association, The World Cocoa Foundation and a seasoned UNDP Consultant on poverty alleviation with over 25 years experience. These facilitators not only showed the audience that agriculture and agribusiness were the way out but also provided practical steps and suggestions to help them get more involved in the sector. All the relevant areas of the sector was touched such as research, extension, ICT,  farmers organizations and the need for partnership among players in the sector.

Mr Idowu Oludare of the All Farmers Association of Nigeria Ondo state chapter proclaimed that the youth were really needed and encouraged to pick up an area of interest and grow passion for agriculture.

Input supply, on- farm production, post harvest handling, export trade , research and development delivery and extension work were some of the opportunities in the cocoa production sector in Nigeria that Mr  Tope Fatunbi opened up to the youth who were surprised that there were a lot more they could do out side having to go to the farm to get dirty as it were.

The women were not left out as Awoyinka Tosin CEO, Afrinutriti a producer of ginger syrup and juice showed to the ladies that they had a very important role to play especially in the area of agro processing of food materials and she emphasis that they do not want to just be laborers on the farm but also producers and job creators.

Breakout sessions that followed had the youths go into two groups to discuss challenges related to factors that hinder the development of youths in agriculture namely, Training, funding, capacity building and the use of ICT in agriculture and agribusiness. The result of the breakout sessions were then discussed extensively to proffer sustainable solutions.

In the words of Mr Isaac Oluwalade of the Cocoa Livelihood Program which is a project between the International Institute of Tropical Agriculture (IITA) and the World Cocoa Foundation “we are happy that the youths are beginning to show interest in the sector and we would continue to work with the organizers of this workshop to reach more youth with the message”

The future of Nigeria and indeed Africa is in agriculture and it is only when the youths take their place in the streams of event that real change can come. The “cool to farm” workshop series has taken upon itself the responsibility of advocating for more youth involvement in agriculture and agribusiness and would be moving from city to city spreading the message in the months to come.

Women and Youth as Catalyst for Agribusiness Development and Growth in West & Central Africa - Songhai Centre, Port Novo, Republic of Benin, 6-9th October 2012

UNIDO, IFAD, UN Women, FAO, UNDP and Oxfam in collaboration with the Songhai Centre, organized a 4 day workshop fair (6^th – 9^th October 2012) on the theme “Women and Youth as Catalyst for Agribusiness Development and Growth in Western Africa”. The event started with a trade fair showcasing agribusiness produces and processing machineries and culminated in a consultative forum which explored strategies for attracting more women and youth in agribusiness - as a credible job and wealth creation option for the sub region.

Stalls at Trade Fair with agro entrepreneurs displaying their products

Dr Patrick Kormawa UNIDO Country Rep Nigeria and First Lady Cross River State

The key objective of the youth workshop fair was to articulate a strategy for attracting and engaging young women and men in agribusiness. Focusing largely on creating decent employment opportunities for young men and women by making agriculture more productive, efficient, remunerative and competitive, the consultative forum made salient inputs towards the development of evidence based set of policy guidelines that promote women and youth entrepreneurs in agribusiness development

A cross section of young entrepreneurs

The workshop was attended by over 200 participants from 14 African countries. Participants included young entrepreneurs, Songhai Centre graduates, government representatives, agribusiness companies, women entrepreneurs and organisations, farmer organisations, business associations, civil society as well as representatives from national, regional and international development agencies.

Agro entrepreneurs sharing their success stories

During the workshop, stakeholders shared experiences and ideas on strategies for implementation of agribusiness programmes. They identified key factors and successful business models like the Songhai Centre - that can attract young people to become engaged in agribusiness and collaborated to produce a plan of action for a strategic approach to making agriculture an attractive option for more women and youth to engage in. Participants acknowledged the enormous potential young women and men possess to effectively contribute to this critical sector - agreeing that agribusiness offers a realistic opportunity for job and wealth creation for young people who are key drivers of economic growth in emerging markets like the West and Central African sub region. Despite these potentials nonetheless, there was a general consensus that more needs to be done; the sector was still not attractive enough to new entrants, as it continues to be characterised by low investment in technology and research, drudgery, policy lapses and unequal access to information, agribusiness inputs and markets. The need to develop policies to address these challenges was underscored by several participants.

A cross section of agribusiness enthusiasts listening to experience sharing sessions

The consultative forum concluded with participants agreeing on specific issues for organisers to follow up on and action:

1.    Establish a platform where women and young people as well as development partners and other key stakeholders can network and share salient information on available opportunities including - best practices, technology and research, innovations, commodity prices and access to market.

Facilitate the formation of communities of practice amongst women and youth agro entrepreneurs utilising participants in the workshop as the pioneer cohort

2.    Utilising inputs from interactive sessions and experiences shared by entrepreneurs, the forum urged organisers to develop a comprehensive policy guidelines for promoting the profitable engagement of women and young people in agribusiness in the West and Central African Region. The policy guideline will serve as a useful tool for programme development, advocacy and fund mobilisation by governments and development partners.

3.    Finalise and disseminate a Strategic Action Plan based on interactive sessions and experiences shared by agro entrepreneurs during workshop. The plan will aim at promoting agriculture as a lucrative business for young men and women in West and Central Africa.

It was agreed that the plan should articulate critical elements discussed in meeting such as effective coordination, capacity building for young agro entrepreneurs to meet required quality standards for markets, resource mobilisation strategy to fund plan, a media and advocacy strategy to rebrand and provide visibility to the opportunities in agribusiness and a Monitoring and Evaluation regime to guide implementation of action plan.

4.    Organise an Annual Award Event aimed at recognising successful agro entrepreneurs as role models in the West and Central African region.

The Minister of Youth Development(Nigeria) Hon Inuwa Abdul-Kadir, listening to young agroentreprenuers

5.    The developmental Institutions present resolved to work with the agro entrepreneurs and Government agencies in addressing the specific challenges affecting women and youth, particularly those relating to unequal access to finance and other agribusiness inputs.

As the phrase ‘business unusual’ was adopted as the guiding ethos for the workshop fair, the organisers were urged by the participants to ensure that resolutions reached by the forum be followed through dutifully. On their part, participants, especially the women and young entrepreneurs resolved to increase the momentum generated from the workshop by spreading the information on the several opportunities they have identified in the sector to their peers in their respective communities and expressed willingness to form themselves into a community of practice where they can continue to share information and have a strong platform for influencing policies that affect them.

For more details please contact:

Maada Gombu   +2347068886330           

Ikechukwu Attah

Leonce Sessou