4. VFRC – Purpose and Organization
locations. Their interactions will be facilitated by the most appropriate communications and information networking technology (e.g. secure intranet) that is being established and will be maintained by the VFRC Program Office.
Organizing Concept In essence, the VFRC is a comprehensive multi-year development and commercialization 'program' of IFDC, anchored to its technology agenda and comprising several concurrent projects undertaken over a period of up to 15 years. Key elements of the organizing concept to oversee and manage this program are as follows (Figure 29): 1. Governance While the VFRC will legally operate as an initiative of IFDC and will ultimately be the fiduciary responsibility of the Board of Directors (BoD) of IFDC, the VFRC will operate with significant autonomy with its own Charter which will have the legal force of an IFDC Bylaw. The VFRC has its own Board of Advisors (BoA) (Figure 30) – established in May 2010 – which is supported by three committees – Executive, Science and Commercialization (Figure 31). The Executive Committee has seven members; the Science and Commercialization Committees have four BoA members (with subject matter experts added on a project-by-project basis). The committees are the critical 'gatekeepers' for project definition, team selection, progress and completion. 2. Global Network of Virtual 'Partners' Individual projects will be staffed by specifically selected experts (and/or teams) with multi-disciplinary skills and experiences, working primarily from their current
It is anticipated that 50-75 experts will be networked at any point in time, with as many as 300 experts engaged over a five-year period and potentially available for further developments and follow-on support. 3. Central Program Office A small core staff team, led by the Executive Director, is located in Washington, D.C. to coordinate development efforts, monitor and report on results and accept legal accountability. The Executive Director reports to the President and CEO of IFDC and is responsible for the dayto-day operations of the VFRC and overall program and project management. Staffing (for program management, functional expertise and administrative support) will consist of 10-12 individuals initially, increasing to a maximum of 18-20, depending on project volume. 4. Funding The VFRC will generate its own funding base, distinct from IFDC (but legally reflected in IFDC’s accounts), to cover the VFRC operating budget and for project grants. A preliminary funding target of $75 million has been established for the first five-year period, with $10 million for Year 1. Individual project grants could range from $1 million to $10 million for longer timeframe projects.
Figure 29
Funding (via IFDC)
Science Committee
Board of Advisors
VFRC Board of Advisors Commercialization Committee
Executive Director
Commercialization projects
Development projects
Global virtual partner network
Development partners
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Commercialization partners
Membership: Based on experience, industry and geography Responsibilities: Provide overall guidance to the VFRC Help determine and prioritize the most pressing unsolved problems and their potential to improve global food security Develop the research agenda in broad terms Assist in recruiting project partners, securing needed resources Meetings: Timing and frequency determined by BoA
Figure 30
VFRC Board of Advisors Dr. Jimmy G. Cheek – Chairman Chancellor University of Tennessee Knoxville, TN, USA
Dr. Roelof (Rudy) Rabbinge Chair, Science Council and Partnerships Consultative Group on International Agricultural Research (CGIAR) Wageningen, The Netherlands
Dr. Marco Ferroni Executive Director Syngenta Foundation for Sustainable Agriculture Basel, Switzerland
Dr. Amit Roy President and Chief Executive Officer IFDC Muscle Shoals, AL, USA
Mark Huisenga Agriculture Programs Advisor U.S. Agency for International Development (USAID) Washington, D.C., USA
Dr. Renfang Shen Director General Institute of Soil Science, Chinese Academy of Sciences (ISSCAS) Director, State Key Laboratory of Soil and Sustainable Agriculture Nanjing, China
Assétou Kanouté Assistant Professor Polytechnic Institute for Rural and Applied Research University of Mali Katibougou, Mali
Dr. A.K. Singh Deputy Director General, Natural Resource Management Division Indian Council of Agricultural Research New Delhi, India
Luc Maene Director General International Fertilizer Industry Association (IFA) Paris, France
Ajay Vashee President International Federation of Agricultural Producers (IFAP) Ndola, Zambia
M. Peter McPherson President Association of Public and Land-Grant Universities (APLU) Washington, D.C., USA
Dr. Juergen Voegele Director Agricultural and Rural Development The World Bank Washington, D.C., USA
Honorable Prof. Ruth Oniang’o Chairperson, Sasakawa Africa Association (SAA) Founder and Editor-in-Chief African Journal of Food, Agriculture, Nutrition and Development Founder and Leader Rural Outreach Programme Nairobi, Kenya
Dr. Prem Warrior Senior Program Officer Agricultural Development Group (Science and Technology Team) Bill & Melinda Gates Foundation Seattle, WA, USA
Figure 31 Executive Committee Dr. Jimmy Cheek (Chair) Dr. Rudy Rabbinge (Vice Chair) Mark Huisenga Peter McPherson
Prof. Ruth Oniang’o Dr. Juergen Voegele Dr. Prem Warrior
Executive Director Sanjib Choudhuri
Science Committee Dr. Rudy Rabbinge (Chair) Dr. Marco Ferroni
Dr. Renfang Shen Ajay Vashee
Commercialization Committee Dr. Prem Warrior (Chair) Mark Huisenga
Assétou Kanouté Luc Maene as of October 2011
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Links to IFDC As previously noted, the VFRC will operate with significant autonomy while legally categorized as an initiative of IFDC. In addition, the VFRC will have other links to IFDC that offer meaningful benefits either to the VFRC’s operations or to its new fertilizer technology development and commercialization agenda. •
The accounts and financial activities of the VFRC will be subject to all IFDC internal and external
Figure 32
Figure 33 IFDC BoD
VFRC BoA President & CEO Executive Director Director of Operations
VFRC Financial Accounts
Separate financial statements Consolidated with other IFDC accounts for public auditing and reporting purposes To include any support services provided by IFDC and funded by VFRC To include all reasonable expenses for BoA travel and VFRC interaction
Accounting Manager
Urea supergranules shown on a demonstration site in Kenya.
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audit requirements and procedures; IFDC will assign an Accounting Manager to the VFRC to aid in this responsibility and to assist the Executive Director in the execution of budgetary and financial management responsibilities (Figure 32). A summary of the financial control arrangements is shown in the diagram below (Figure 33).
VFRC Accounting Manager
Assigned from IFDC, reports to IFDC Director of Operations Located in VFRC Program Office Assists VFRC Executive Director in execution of budgetary and financial management responsibilities Provides VFRC program and financial status reports at each BoA meeting
Figure 34 VFRC Project Management Process Board of Advisors
Likely benefits and realization timeframe High-level 1development priorities
Skill sets and funding requirements
Science Committee
Adaptive or applied research Specific 2development projects
Competition or sole source
BoA and both Committees Market benefits delivered Viable 3 commercialization projects
Implementation and adoption requirements
Commercialization Committee Market success targets
Industry players
non-industry 4 Local parties
VFRC implementation partners
Go-to-market, financial qualifications
BoA, Executive Director: Incentive structure
Project Management Process The VFRC Project Management Process (PMP) is the core 'engine' that will be deployed by the VFRC to move its technology agenda into commercial reality (Figure 34). It will be the primary tool for the VFRC BoA, its committees and the Executive Director to initiate priority projects; to select project teams; to allocate funds; to ensure the proper balance between development and commercialization; and to manage, monitor and report progress. Important considerations to be reflected and balanced in initial project selection by the BoA will include: •
•
•
•
Primary market benefit and likely timeframe for development and follow-on commercialization. High-level commercialization implications (e.g. accessibility and affordability by developing markets and smallholder farmers, likely interest by established industry players) will need to be considered. Know-how required – i.e., applied versus adaptive research, few versus several disciplines, available intellectual property (IP) (open innovation sourcing) versus project-generated IP (collaborative innovation sourcing). A corollary consideration will be the nature, extent and sequencing of interactions required between multiple disciplines and skill sets. Available 'expert' community (skills, resources, locations, likely availability), and accordingly the pros and cons of competitive, invited or sole sourcing of project partners. Note: A major donor may desire a specific 'cooperating partner' to be considered for a project; it will be the BoA’s decision whether to accept. Likely funding required and its timing, in absolute terms and in relation to the VFRC’s overall funding base.
Projects selected for development will be converted into detailed requests for proposals (RFPs) with guidance from the Science Committee, which will include the
merits of adaptive versus applied research and the most likely 'expert' communities to be targeted (usually for competitive bidding but occasionally for invited or sole sourcing), and the funding available. Final proposals and team selection(s) for development projects will be made by the Science Committee and approved by the BoA. Development projects which are successfully completed and ready for commercialization will be reviewed and prioritized jointly by the Science and Commercialization Committees. •
Key criteria for selecting projects for commercialization will be market benefits delivered by the project (particularly to smallholder farmers) and the requirements/challenges for adoption and implementation, including the availability and readiness of likely commercialization partners.
•
Projects prioritized for commercialization will be converted into RFPs with guidance from the Commercialization Committee on market success targets (e.g. farmers served, tonnage used) and minimum go-to-market and financial qualifications needed of potential commercialization partners. Projects selected will be ratified by the BoA.
Depending on the situation, projects prioritized for commercialization will be offered simultaneously to a number of 'qualified' invited partners (for widespread early adoption) or to potential partners for competitive bidding. These commercialization partners will likely include: •
Global or pan-regional industry players committed to smallholder farmers.
•
Local industry players or entrepreneurs with good corporate social responsibility (CSR) standing and financial capability.
•
VFRC-identified 'implementation partners' with unique relationships with smallholder farmers but who will require funding (e.g. from venture capitalists).
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Intellectual Property The VFRC will pursue both open (i.e., using sourced IP) and collaborative (i.e., using VFRC project-developed IP) innovation to maximize the value from the multidisciplinary sciences that will be tapped and to facilitate early commercialization. Additionally, projects may have a single major donor or multiple/general donors. VFRC IP Principles As an over-arching principle, any IP involved in a VFRC project (i.e., sourced or developed) should reach developing regions on 'advantageous' commercial terms. This principle is depicted in the exhibit below (Figure 35). In essence: •
Any VFRC-developed IP (whether single, multi- or general donor funded) will be available openly for developing markets.
•
Any sourced IP will be 'paid for' by commercialization partners benefiting from the IP (e.g. royalties or fees) and will be offered at a discounted price to farmers in developing regions.
•
In all instances, VFRC will act to ensure that there are no encumbrances to open and advantageous access to VFRC IP in developing regions.
Applying urea supergranules in Bangladesh.
In practical terms, VFRC will have 'template' IP agreements reflecting these principles that will be used with every VFRC project, with final IP arrangements established on a case-by-case basis.
Figure 35 VFRC Intellectual Property Principles INNOVATION IP SITUATION
Developed by project (collaborative innovation)
Donor/co-op partner can have IP rights for developed markets; otherwise VFRC has rights VFRC will have IP rights for developing markets
Sourced for project (open innovation)
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Multiple or general project donors
Single project donor
VFRC has IP rights for all markets, for open public use VFRC may sometimes seek IP patent for subsequent licensing
Commercialization partner will be responsible for all sourced IP licensing fees VFRC will seek a 'price discount' from a commercialization partner for a product sold in developing markets
Key Supporting Programs
Figure 37
Communications and Marketing
VFRC Fundraising Program
A guiding framework has been established for two activities essential to the successful continuation of the VFRC-marketing and fundraising programs. Actively marketing and promoting the VFRC will be targeted initially to help expand the VFRC's programs and subsequently will encourage adoption as new fertilizers are available for commercialization (Figure 36). In the initial stages, donors/supporters and potential project partners will be important audiences (and will remain so). The broader agricultural community (farmers, extension agents, rural community leaders, supply chain participants, governments, etc.) will become important for commercialization. Vehicles used will match the audiences and will comprise a combination of public and targeted speaking engagements and discussions forums, the support of influential individuals as spokespeople and targeted media outreach through multiple channels.
'Vision for a decade' Leadership funders Donor considerations: Responsiveness Reporting accuracy, transparency VFRC institutional quality VFRC term commitment, integrity, expertise
•
General contributions are those offered in support of the program as a whole and offer maximum flexibility to program management. Alternatively, contributions may be directed to support specific projects.
•
In-kind contributions will generally be of the type whereby a donor provides funding directly to a 'cooperating partner' to cover its cost of participating in a project (e.g. when a national government agrees to support the participation of a national research organization).
•
A Challenge Fund is also being considered as a mechanism to provide competitive grants for projects that further the VFRC’s research and development or commercialization agendas.
Launch and nurture VFRC
Key Messages
Vehicles Public Engagements
Audiences Donors
Need for urgent action, support VFRC Today’s fertilizer cannot meet tomorrow’s daunting global challenges VFRC has tapped the best minds to bring the new generation of 'smart' fertilizers that are also ecoand smallholder farmsensitive
Targeted Engagements Mission Caliber Agenda Progress
'Expert' Community Influential 'Spokespeople'
We must act together
Media Coverage
Crop Production Stakeholders
Direct to donor: Targeted Open (grant writing) Corporate (in-kind contributions) Implementation partners follow-on Third parties (selectively)
Accordingly, flexibility in fundraising may be a key to achieving the VFRC’s mission and the matching of resources to objectives. Contributions to support the activities of the VFRC may be of several types – general or directed, cash or in-kind.
VFRC Marketing Program
Encourage new fertilizer adoption
Supporting funders, channels
Lead fundraisers
Central database and communication management system
Figure 36 Goals
Campaign model
Conclusion The VFRC will be the coordinating body to deliver the next generation of fertilizers and fertilizer technologies to the world's smallholder farmers – 'global research to nourish the world.'
Donor Support Equally important, donor support will be needed to fund the VFRC for an extended period of time and will require a 'campaign model,' which in essence promotes 'a vision for a decade.' The donor base will comprise a select group of leadership donors that will provide an important foundation that the VFRC can build upon. Additional donors may represent particular priorities and interests (Figure 37).
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Global food security is a critical issue to be faced and solved.
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