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Life after our projects

Life after our projects. Don Jansen Program Manager DE Foundation. Contents. Background DE Foundation Approach in Projects Challenges Types of Partners Why involving Exporters? New Roles for Exporters Dilemma. Background DE Foundation. Established 2002 by Sara Lee International

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Life after our projects

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  1. Life after our projects Don Jansen Program Manager DE Foundation

  2. Contents • Background DE Foundation • Approach in Projects • Challenges • Types of Partners • Why involving Exporters? • New Roles for Exporters • Dilemma

  3. Background DE Foundation • Established 2002 by Sara Lee International • Funding by Sara Lee International @ 1.2 million € / year • Governed by board of directors (2 SL, 3 independent) • Currently financing 8 projects in the following countries: • Coffee: Uganda, Cameroon, Brazil, Perú, Vietnam, Honduras, Colombia • Tea: Indonesia, Malawi • Goal: to further sustainability of mainstream coffee and tea • working in particular with small-scale, unorganized producers • Farmers free to sell coffee/ tea to anybody • SL free to compete for coffee

  4. Approach DE Foundation Projects with focus on: • Better market access with better prices • Improvement of coffee quality, • Certification by UTZ • More efficient farming and processing • adoption of Good Agricultural & Processing Practices • Stimulating and assisting farmers to work in groups to: • facilitate the learning processes • make certification feasible for small-scale producers • develop further organization • Reducing farmers’ dependency on external support

  5. Challenges • Productivity of coffee / tea is under presion • Declining in Africa: a.o. due to diseases, lack of infrastructure • Higher costs of inputs: labor, fertilizers • Lack of adequate credit systems • Production of certified coffee / tea requires specific activities • Good Agricultural / Processing Practices • Internal Control Systems • Trainings: technical, organization, health care, etc. • Small scale producers lack access to required services • Failing / withdrawing governments • Lack of organization among farmers • Lack of adequate service providers

  6. Types of Partners • NGO’s and consultants: e.g. Solidaridad, EDE consulting, Rabobank Foundation • co-financing; project implementation; expertise; contacts • Governmental agencies: Dutch (LNV, BuZa), National (VN), Local (VN/Colombia) • co-financing; execution of activities; facilitation • Value chain partners: exporters (Uganda, Vietnam, Cameroon, Peru, Honduras), mill (Brazil), tea factories (Indonesia / Malawi), producer organization (FNC-Colombia) • execution of activities; enforcing market rigor; contacts

  7. Why involvement of exporters? • Know how the (inter)national coffee / tea market works • To a large extend know how to deal with price risks • Have the contacts in this market • Know which type and quality of coffee is interesting for which buyer and in which price segment • Have logistics in place • Especially to work efficiently on the export market • Have intrinsic interest in sustained production of coffee / tea • Need a base of suppliers that can deliver the required coffees and teas

  8. New roles for exporters • Providing base for small scale producers to become certified • Certification Unit • Internal Control System • Providing / arranging for services • Trainings • Bulk buying of inputs • Warehousing / bulking of coffee • Quality control of produce

  9. Dilemma • In our projects: • Financial and technical support to (partially) develop and execute new activities • Defined end to this support • During project: focus on development of farmers • After project: focus on strengthening competitiveness of exporter? • And is the latter really bad, as long as farmers also benefit?

  10. Thank you

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