Value Addition of Primary Products: Business – NGO Investment Cooperation

1. Value Addition of Primary Products: Business – NGO Investment Cooperation Raga Alphonsus, ZOA 28-09-12 Economic Development Advisor

2. Issues at stake and Role of ZOA • Lacking technical/ market knowledge; expertise of primary producers • Lacking market access; Low productivity and quality of local produce • Not very attractive for buyers, unsecure supply, low standards • Lacking investment in value addition of products and socio-economic impact ZOA is placed in between buyers and primary producers • Operational presence in Sri Lanka since 17 years • Technical, staff capacities • Links to government authorities, indepth ground knowledge • Access to producers, local entrepreneurs, buyers Added value for partnering • Facilitate/set-up new or support existing businesses via stakeholder networks • Capacity building community-level: quality standards, technical/business skills • Not – own/Operate&Build/Transfer • Monitoring fair business principles, benefits for communities

3. Business cases @ ZOA Sri Lanka • Formation of companies in collaboration with local entrepreneurs, potential buyers and social investors to strengthen the profitability of primary producers and buyers. • Improving the value chain • Demand-driven production, enhanced productivity • Know-how transfer, skills, quality assurance, entrepreneurship • Market diversification, market linkages • Investments and Public Private Partnerships • Financing at reasonable interest rates,links to banks,fin. management practices Focus on Agri-businesses

4. Breaking Barriers and Bottlenecks for Producers agri-business synergies for war-affected farmers in North Sri Lanka through strengthening the value chain in local and international markets • Breaking barriers and bottlenecks Objectives: • Small holders produce based on market demand and quality standards • Produce is value added/stored and sold at higher market prices to local, high-end, export markets • Fair profits channelled back to producers, guaranteed supply to buyers • Fair and sustainable business relationship farmer-buyer

5. Breaking barriers and bottlenecks for producers Fair Farm Foods Ptv. Ltd. Other/similar companies, e.g. Agribusiness, Aquafood, Handicraft Owned by: investment company, buyers, farmers, local entrepreneurs Managed by: local staff, internat. staff if needed store, skills, inputs invest collateral sell sell Buyers Farmer Bank loan

6. Breaking Barriers and Bottlenecks for Producers Fair Farm Food Pvt. Ltd. • Stakeholders: farmers, local entrepreneurs, buyers, exporters, investors gradually transfer shares to local stakeholders • Purchase farm produce, sell locally/export  fair trade • Value addition through processing/storage enables farmers to receive higher market price • Training for farmers, Technology transfer • Facilitating inputs for farmers, e.g seeds, technology Buyers • By investing in FFF steady supply can be ensured • Control on chain and quality of products

7. You are invited to join us in impact investing! ZOA, att. Raga Alphonsus 34, Gower Street Colombo 5, Sri Lanka raga@zoasrilanka.org Tel +94 773744195 ZOA Netherlands PO Box 4130 7320 AC Apeldoorn l.bos@zoa.nl Tel +31 553663339 Contact: Raga Alphonsus, raga@zoasrilanka.org