Professional Documents
Culture Documents
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Table of Contents
Abbreviation ………………………………………………………………………………. 3
Executive Summary……………………………………………………………………….. 4
Introduction ………………………………………………………………………………. 5
Overview of Workshop and Intended Outcome ………………………………………….. 5
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Abbreviation
EC European Commission
EU European Union
FO Farmers Organisations
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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.
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
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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.
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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.”
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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.
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?
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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.
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.
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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.
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 end-
markets, 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.
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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.
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.
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.
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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.
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.
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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;
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• 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.
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.
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.
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.
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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 100-120 tons of tomatoes and 50-60 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.
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.
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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.
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.
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.
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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.
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.
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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.
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
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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.
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.
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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.
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.
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.
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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
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.
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Key Constraints Interventions (Strategy) Action Plan (1-3 years)
1. Lack of quality planting Policy framework Establish protocol for
materials sourcing and importing
material.
2. Labour, machinery and Strategy to make labour, Mandate (as a matter of
equipment (availability, equipment, and machinery policy) training for all
access, and timeliness) more attainable. recipients of state resources
such as land, planting
material, and equipment .
3. Appropriate technology Technology needs to be Establish a pool of
addressed with respect to resources with specialized
harvesting. equipment to provide
services.
4. Inadequate physical Infrastructure development Establish one centralized
infrastructure and facilities program packing facility per year in
golden apple growing
communities.
5. Lack of awareness and Development of databases, Undertake national census
poor information flows and information and of growers, including
management systems. 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.
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.
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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.
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,
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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.
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5. High input, ginger 3. Market niches
certification, and labour 4. Creation of value added
costs products
5. Geographic indicators and
branding
Foster VC national and 1. Regional and nationals value
interregional articulation chains
and coordination 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
24
Production Issues- BMP Support and training for demands of markets.
training, pest control, correct BMP, government -Set-up factoring system:
planting materials, high costs intervention for pesticide revolving fund to guarantee
regulation (MRL) payments (FO’s, CaFAN)
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
3.4 Lessons Learned
The following are the key lessons learned from the regional value chain workshop:
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:
26
• 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
APPENDIX
Programme
SESSION II BUILDING FOOD VALUE CHAINS: CARIBBEN EXPERIENCE AND BEST PRACTICES
28
and how it is being developed Robert Best; FAO
Approach/Mechanisms to be build
synergies at the regional and
Participants arrive at consensus as
national level for the
1:00 -1:30 p.m. to the approach and mechanisms Jethro Green; CaFAN
implementation of value chain
to be adopted
upgrading strategies and capacity
building programmes
29
Participants list
Phone Number & E-mail
No. Name & Organization Country
Address
Pamella Thomas 1-268-770-9871
1. Antigua and Barbuda
Team Fresh Produce Cooperative Samoth32@yahoo.com
Keeley Holder Barbados 1-246-243-6496
2.
Barbados Agricultural Society BAS keeleykind@gmail.com
Barbados (246) 436-6683
James Paul
3. bdosagriculturalsociety@caribsurf.
Barbados Agricultural Society BAS
com
Woodwille Alleyne-Jones Barbados
4.
Barbados Agricultural Society BAS
Damien Hinds
1-246-253-7015
5. Inter American Institute for Cooperation on Barbados
damien.hinds@iica.int
Agriculture (IICA)
Andre Devonish 1-246-434-5007
6.
Ministry of Agriculture Barbados andredevonish@yahoo.com
Michael W Browne Barbados 1-246-243-7092
7.
Consultant pauley@caribsurf.com
1-767-448-2780
Nadia Pacquette-Anselm Dominica
8. dexia@cwdom.dm /
Dominica Export Import Agency NES/DEXIA
nesdominica@cwdom.dm
Manuel Messina
1-809-553-2797
9. Inter American Institute for Cooperation on Dominican Republic
manuel.messina@iica.int
Agriculture (IICA)
Emilio Martinez Dominican Republic 1-809-563-6178
10.
JAD e.martinez@jad.org.do
Phillip Mitchell Grenada
11. 1-473-414-4599
North East Farmers Organisation (NEFO)
Dhaniram Ramchand
001-592-660-1932
12. Guyana Agricultural Producers Association Guyana
GREENTOLiFE@gmail.com
(GAPA)
Yonneth Fortune
13. Kuru Kuru Farmers Crop and Livestock Guyana 592-658-4232
Association KKFCALA
Renortha Penny
1-876-465-5398
14. Christiana Potato Growers Cooperative Jamaica
renorthapenny@hotmail.com
Association (CPGCA)
Michael Pryce
1-876-927-1206
15. Ministry of Agriculture and Fisheries MOAF- Jamaica
mapryce@moa.gov.jm
Jamaica
Answorth Riley
1-876-927-0020
16. Inter American Institute for Cooperation on Jamaica
ainsworth.riley@iica.int
Agriculture (IICA)
Angella Bardowell 1-876-439-8322
17.
JPFA Jamaica anbardowell@yahoo.com
Ioanna de Barros
18. Food and Agriculture Organisation of the United Rome Ionna-DeBarros@fao.org
Nations (FAO)
Heiko Bammann
19. Food and Agriculture Organisation of the United Rome
Nations (FAO)
20. Leonard Herbert St. Kitts and Nevis 1-869-664-9313
30
St Kitts Farmers Co-operative Society LeoNARDHerbert@hotmail.com
Vincent La Corbiniere St. Lucia 1-758-468-4120
21.
Ministry of Agriculture Lacorbs28@yahoo.com
Curt Delice
1-758-451-6760
22. Inter American Institute for Cooperation on St. Lucia
curt.delice@iica.int
Agriculture (IICA)
Ignatius Jean St. Lucia
23. 758 455-1024
St. Lucia Pineapple Association
Audrey Walters-Butler
St. Vincent and the 1-784-526-7002
24. Eastern Caribbean Trading Agriculture and
Grenadines audrey@vincysurf.com
Development Organisation (ECTAD)
Stacy Rose-Richards St. Vincent and the 1-784-497-8850
25.
Caribbean Farmers Network (CaFAN) Grenadines Stacyanan23@yahoo.com
St. Vincent and the 1-784-431-004
Jethro Greene
26. Grenadines cafancaribbean@gmail.com /
Caribbean Farmers Network (CaFAN)
cafanectad@gmail.com
Stephanie Dewar St. Vincent and the 1-784-453-1004
27.
Caribbean Farmers Network (CaFAN) Grenadines cafanectad@gmail.com
Conroy Huggins St. Vincent and the
1-784-454-0011
28. Eastern Caribbean Trading Agriculture and Grenadines
conroy1h@yahoo.com
Development Organisation (ECTAD)
Sustang Fergus St. Vincent and the 1-784-453-1004
29.
Caribbean Farmers Network (CaFAN) Grenadines cafanectad@gmail.com
Christopher Attadia St. Vincent and the
30. cafanectad@gmail.com
Caribbean Farmers Network (CaFAN) Grenadines
Lesley Grant St. Vincent and the 1-784-532-5879
31.
Ministry of Agriculture Grenadines lesleygrant@gmail.com
Michael Dalton
St. Vincent and the 1-784-457-2698
32. Inter American Institute for Cooperation on
Grenadines iica@vincysurf.com
Agriculture (IICA)
Robert Best
Trinidad and Tobago
33. Food and Agriculture Organisation of the United Robert.best@fao.org
Nations (FAO)
Edric Harry
350-7495
34. Inter American Institute for Cooperation on Trinidad and Tobago
edric.harry@iica.int
Agriculture (IICA)
Yvonne Davidson-McKenzie 622-1221ext2140
35. Trinidad and Tobago
MFPLMA yardavidson@gmail.com
Terrance Haywood 1-868-340-4490
36. Trinidad and Tobago
NFFA Trinidad TH.eAuRR@live.com,
John Soler 1-868-678-9265
37. Trinidad and Tobago
Solcarib Ltd solcarib@gmail.com
Dhano Sookoo 868-337-7072 / 868-672-8995
Trinidad and Tobago
38. Agriculture Society of Trinidad and Tobago dhano.sookoo@gmail.com /
ASTT agrisoctt@yahoo.com
Orwin Dillon 1-868-797-9313
39. Trinidad and Tobago
Tobago Agriculture Society orwindillon@hotmail.com
Robert Reid
40. Inter American Institute for Cooperation on Trinidad and Tobago robertreid79@gmail.com,
Agriculture (IICA)
31
Fruit Producers Co-op Value Chain Example
Where do the dollars go in this chain? How are the dollars shared?
An example: A fruit producers co-op
Freight Freight
Company Company
4
CHAIN Input Fruit
Producers Importer Wholesaler Retailer
17 21 24 MEMBERS Suppliers
Fruit
Input
CHAIN Producers Importer Wholesaler Retailer
Suppliers Co-op Exporter
MEMBERS
11 21 24 40 Margin Share of $
40
Retailer $16 40%
2
Wholesaler $3 7.5%
Exporter
Importer $4 10%
Exporter $2 5%
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 Freight Forwarder $4 10%
distributed within the chain. Primary Producer $11 27.5%
How are the dollars shared? Growing the pie = Creating and sharing
How do chain
Is there another
more value
Chain members’ members
shares of the maximise their way to increase
consumer share? members’ shares?
dollar
GROWING THE PIE TWO GROUPS OF STRATEGIES
Producer
27.5%
Retailer GROW THE PIE 1. Strategies that reduce costs
40%
Freight
Wholesaler •Greater efficiency
10%
Exporter 7.5%
Importer •Greater effectiveness
5%
10%
2. Strategies that increase income
•More customers
•More sales per customer
•A higher price
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Original Dominica Pineapple Value Chain
33