Report are 150910 english version

Where will our rice come from tomorrow ?

Report African Rice Exchange 2 – 13 August 2015 by bus from Dakar to Ouagadougou ‌ 3500 km ? with participants from Congo, Tanzanie, Uganda, Belgium and of course West Africa

INTRO DUCTION

The objective of ARE The origin of ARE dates back to 2014. In October, 4 farmer leaders of West Africa and 3 staff members of VECO participated in the International Rice Conference held at Bangkok and broadly exchanged with rice producers and actors in Thailand.

It was such a fruitful experience that the return of the team gave birth to the idea of organizing an exchange visit at the level of Africa with this red thread: business models. It is obvious that the technical and production aspects are important; but the intended result of the trip is to spread a broad and rich vision among the participants relating to the different inter-linked business models in the white rice and parboiled rice sectors as a source of inspiration for work.

Itinerary and Program Date Sun 02/08 Mon 03/08 Tues 04/08 Wed 05/08 Thur 06/08 Fri 07/08

Sat 08/08 Sun 09/08 Mon 10/08 Tues 11/08 Wed 12/08 Thur 13/08

Country Program Senegal Arrival of delegations at Dakar Senegal

Visa applications for Mali Travel to north, St Louis, Rosbethio Visit to the Company Société Filières Agricoles Senegal Travel from St Louis to Tamba via Thies and Kaolack: night at Tamba Senegal Visit of the FO FEPROBA at Anambé night at Tamba Senegal- Travel from Tamba to Bamako Mali Night at Bamako Mali Visit to Segou; visit of the dam of the Office of Niger, presentation of the National Platform of Rice Producers of Mali (PNPRM) + experiences in marketing with the Commissioner for Food Security Exchanges with the Sexagon on their experiences of co-operatives in processing and marketing; visit to the Artisanal Cooperative of Blacksmiths of the Office du Niger (SOCAFON) Night at Segou MaliTravel from Segou to Bobo via Bama: Burkina Night at Bobo Dioulasso Burkina Rest in Bobo Dioulasso ; sightseeing tour night at Bobo Dioulasso Burkina Visit of Research Station of Farakoba Visit of the parboiling center of Douna managed by Departmental Union of Female Parboilers of Douna Night at Bobo Dioulasso Burkina Exchanges with the interprofessional organization CIRB and with the National Union of Female Parboilers UNERIZ Departure to Ouaga ; Night at Ouaga Burkina Exchanges with CORIS BANK international and with AnacorBF Evaluation of the trip; lessons learned; action points on return Night at Ouaga Departure of foreign participants

This diagram gives only the visits and meetings scheduled.

But a large part of the program was presentations based on the lessons learned from the visit to Thailand and those prepared by the participants: a clear and concise story relating to a business model of rice in the participant’s country that he/she describes/explains to the others. These presentations took place in the bus when conditions allow it.

Another part of the program was the feedback sessions on learned items, reflections made by everyone after visits and previous presentations. These reflections also took place in the bus at times when conditions allow it.

But we did not limit our activities to presentations; besides we carried out practical exercises.

Participants Country Congo RD

Tanzania

Uganda Benin Burkina

Mali Senegal Belgium

Participants Fabrice MAGHULU Sylvestre LUECA B.

Position S.A. C. D. /Coordinator of the branch office at VECO North Kivu CDV Specialist in charge of Marketing and Trading VECO South Kivu Francoise KABUGHO KABINDO Female rice producer ; member of LOFEPACO Gerald Sakaya SSD Program Manager VECO Tanzania Kilendu Abdarahamani Juma Rice Producer, chairperson of LOMIA Mshana Safina Dominiki Female Rice Producer, member of LOMIA John Mudusu Rice Producer, chairperson of DIFACOS Ereng Atyang John SSD Program Manager VECO Uganda Hermann Reis Azagnandji SSD Program Manager VECO WA branch office of Benin Bernadette P. Ouattara/Wininga SSD Regional Coordinator VECO WA Ibrahim Ouedraogo Regional Representative of VECO WA Michel Tougma SSD Program Manager VECO WA Burkina Omar Mbathie BDS Regional Coordinator - VECO WA Stephane Bayala TRIAS Djibrill Traore Translator interpreter Brehima Dembele SSD Program Manager branch office of VECO Mali Seydou Keita Director National Platform of Rice Producers of Mali Babacar Toure IMM and PLA Regional Coordinator VECO WA Mame Birame Ndiaye SSD Program Manager VECO WA branch office of Senegal Jan Aertsen Former Managing director of VECO ; Program Advisor Congo Christ Vansteenkiste Program Advisor Rice | Agrifinance | West Africa

The Chairman and the Coordinator of the CRCOPR were expected to participate, but this was not possible as they were otherwise engaged.

Structure of the report In each country 2 rapporteurs wrote down notes. This report provides only a summary.

For the details of the visits and presentations, you should consult the documents in appendixes.

The report follows the timeframe of the different items in the program more or less.

In order to better find your way through this report, it should be noted that each presentation has its own title style and symbol:

Visits and meetings

Presentations in the bus

The Reflections of the day

Practical exercises in group

MO 03/08 SENEGAL

Introduction: The rice sector in Senegal rd

On Monday, the 3 August, the journey started with the general statements of the context of the rice sector in Senegal (see appendix). A few key items:  Production: seems to stabilize in the range of 400,000 to 500,000 tons of paddy per year, equivalent to 300,000 tons of white rice  Demand: estimated at 1,200,000 tons of white rice in 2013  Imports: more than 70% of the demand  Consumption: preference for the broken rice

Societé des Filières Alimentaires (SFA) - Saint Louis At the Société des Filières Alimentaires (SFA), the group was entertained by Mr. Paul Kock, chief operating officer of the unit of husking in SFA. This company aims to support producers so that they can provide the company with paddy of good quality. They promote an inclusive business model for small producers that are not taken into account by the classical model applied in the region of St Louis.

Double value proposition  Towards customers: it provides two qualities: the broken grain ', as the preferred one in the Senegalese market, and 'the whole grain '.Even though the latter still contains + /- 15% of broken rice, it is regarded as a rice of good quality by the Senegalese market. Only 2 types of plain packaging with the same logo and trademark are provided with a yellow bag for the whole grain rice and a blue bag for the broken grain rice (25 and 50kg only). The company claims that packaging matters less than its content..  Towards producers of paddy, suppliers of agri inputs: services of plowing and harvesting, access to credit for inputs and a purchase price of paddy fixed by common agreement at the beginning of the season. The structure of micro finance ascertains loan extension for the season.

Since SFA collects the paddy, the loan is deemed paid back to the MFI which can extend other loans to producers.

Then SFA should pay off the amount of the loan (see diagram as an example) Customers - distribution - Relationships  Wholesalers of Dakar; the mass market of Dakar  SFA hires trucks for the transportation of the finished product.  The quality itself ensures a charge free advertising 'by word of mouth' Key Activities > Quality control of the paddy > Storage of paddy with traceability system and feedback on the quality in case of problems > Drying of paddy in case it is supplied above 18% RV > Transport Logistics for paddy and finished products by hauling partners.

The system of quality control of SFA consists in a first time to classify the stocks of paddy according to their origin and the variety. The bags are therefore marked out so as to make it easier to find out the origin of bad stocks and ensure the feedback to the relevant producers.

Before processing, 10 to 12% of stocks are inspected: humidity rate, quality of the winnowing, uniformity of the variety (no blending of variety). All rejected bags are marked out with the detected faults in order to facilitate the feedback to producers. The inspection is made before paying producers..

> > < <

Husking, polishing, calibration and packaging of the white rice Sale of the white rice and the husk.

Negotiations with CNCSA or PAMECAS for input loans.

Contracting with producers (repayment in paddy to the value of inputs and services delivered) < Services of plowing and harvest < Technical Support with advice for the production of a paddy of good quality Key Resources  Rice Mill from China with capacity of 8,000 t per year  husking and polishing in several stages ; mechanical calibration and optical sortex  Electrical drying unit with adjustment of the temperature and the air volume  Warehouse for storage of paddy of 3,000 tons ; rental of additional warehouses  Chief operating officer + team ; workers recruited in the community  Presence of an animator on the field by the producers

2 Qualities: 'the broken grain rice and the whole grain rice ', in 2 types of plain packaging with same logo and trademark

Partners  The producers of paddy  PAMECAS and CNCAS for loans  The SAED for the perimeters  The haulers flows of revenues /Cost Structure  We could not get tangible figures  The whole grain rice is sold at 380 F/kg; the broken grain rice at 320 F/kg and the paddy purchased at at 125 F/kg (correct ???)  Cost of processing: 15F/kg

High performing rice mill with several components, including mechanical calibrator and sorter

For more info: Terral - Durabilis

TUE 04/08 SENEGAL

The Reflections of the previous day  The mode of land management in West Africa differs from that of RD Congo: It seems as though there were no conflict between the customary landowners and the state (actually, this conflict exists also in West Africa).  There is a support of the state to producers: land development; monitoring.  There are opportunities for technical and financial assistance to producers offered by the private sector and the State; which is not the case in the DRC.  Producers master production costs and they know how to develop their income statements.  SFA develops an inclusive business model for small producers that are not taken into account by the conventional banks; this control system has enabled gaining confidence of producers. The strategy of market penetration consists in meeting the required quality and using an appealing token (image of an Indian).  SFA succeeds because the business environment is conducive.  SFA offers two value propositions : the first one to producers and the other one to consumers; the company targets the local market. The business is brisk because the environment is conducive to rice trade.  The quality and the taking into account of the local distribution network foster an effective market penetration; each link is content with playing its role in the value chain; good relationships between the actors of the chain.

 The quality of the product depends on the quality of the agri input and the performance of the processing unit.  The most important point in the marketing is to ascertain the good quality; once the content is fine we don’t need to invest in packaging.  The broken rice is valued in Senegal.  The existence of agricultural banks in Senegal (CNCAS).  To ensure a health chain, the support of the government is capital.  Rice should be processed with delicacy; the whole processing system is regulated in such a delicate way to avoid breaking the rice.  Quality asserts itself but a competitive price is required as well.  Relating to the model: it is a contractualization with groups of small farmers: the specificity of this model is the pre-funding of the season with repayment in kind  It is an effective model because there are few middle agents and a very pragmatic one. Example: the transport is ensured through the rental of vehicles.  In a business model, there is some risk sharing and each of the actors is the guarantor of minimizing the others’ risks. There is always a bank involved in each model.  One cannot build a performing business model by excluding the banks.

Where will our rice come from tomorrow?     

Presentation by Christ V.; see appendix for details.

Summary: Three factors demonstrate that rice importation process for Africa is not a sustainable option.

An ever-increasing demand due to population growth, urbanization and changes in food habits.

A strained offer because of the lack of developed land for rice cultivation, the lack of water and climate change.

A precarious balance at the global level between the offer and the demand strongly influenced by ever changing policies.

Business Model Canvas: the theory   





 

Presentation by Christ V. ; see appendix for details.

A Business Model describes how the company will earn money.

The Business Model Canvas is a specific way of presenting a business model; this presentation is made on a single sheet of paper with 9 parties, so a canvas.

All the key items are presented on page 1; the value proposition on page 2;Customerson page 3; the channels of distribution on page 4; the relationships with the customers on page 5; the flow of revenueson page 6 ; the key activities on page 7; the key resources on page 8; the partners and cost structure on page 9.

In English 'canvas' also means the web (or surface) on which a painter puts his paintings. The Business Model Canvas is a way to 'draw up' together 'the picture' that represents our company. Thus it is a participatory tool, a way of mobilizing reflections of relevant actors regarding the majordecisions, which will determine the company’s life. 'To canvas people' also means to mobilize people around a common goal. The BMC may be the first step on the road to the development of a business plan.

An inclusive BM will have a double value proposition: one geared to clients, but also another geared to Agro input suppliers. (see p. e. SFA)

WED 05/08 SENEGAL

Business Model DIFACOS Uganda  



Presentation of a Ugandan model by John Ereng ; The business model presented by Uganda develops the customers demand and makes a choice in favor of wholesalers in cities because they need large volumes nd rd and the 2 and 3 grades (that the rice mill can deliver) and pay in cash.

The business model contains a double value proposition: one geared to clients and the other geared to the main partners who are member producers.

Business Model Canvas : DIFACOS Key Partners

Main Activities

Direct partners: Farmers Agro-input suppliers Buyers

Capturing value: Installing a standard mill, expansion of drying and storage facilities, supervision & coordination of production, bulking

Indirect partners: NGOs (VECO, IFDC, etc) Research (NaCRRI/Africa Rice) Local & Central Government BDS providers (EPSEDEC, UCA, etc)

Creating value: sourcing of quality agro inputs, training farmers in quality management, provision of credit, maintenance of irrigation infrastructure Key Ressources Human: Management staff Physical: Drying yards, stores, mill, office, machinery

Value Proposition For customers: We produce and supply high quality non-aromatic rice at competitive prices What makes us different?

Quality, consistency, competitive prices Capacity to supply rice in large quantities For members: Market rice at higher prices, facilitate access to credit, access to storage and drying facilities, access to extension services, access to farm equipment

Client Relations Personalized attention (calls and visits) Maintain regular contact with clients

Staff/personnel Capacity development (trainings for members) Infrastructure maintenance Working capital (for equipment and bulking) Marketing

Supermarkets: Need low volumes of first and second grade rice in constant supply.

The rice should be in small and well branded packs (ranging from 1kg-10 kg) Institutional markets: Need low volumes of 2nd & 3rd grade rice

Distribution Channels Direct delivery to retailers, supermarkets, and institutional markets

Financial: Working capital

Cost structure

Clients

Urban-based wholesalers: Need very large volumes of 2nd and 3rd grade rice supplied constantly to them at low prices as they pay in cash Urban-based retailers: Need low volumes of grade 3 rice supplied to them constantly

Revenu Flows Commission from sale of rice (Ushs. 1,058,000,000/= annually) Hire of farm equipment Milling charges (from non-members) Sale of briquettes

Anambe FEPROBA: Cooperative of rice seed Background / History FEPROBA On Wednesday 05/08/15 the participants in the trip visited two business models: a business model of the cooperative specialized in the production of quality rice seed and a business model on parboiling .

The basin of Anambeis located in the departments of Velingara and Kolda, in Casamance. In Anambe is located a developed perimeter (1983) of 5,000 ha powered by two operating dams. In 2008, VECO intervened to support FEPROBA (Federation of Producers of the Basin of Anambe). ( feproba.anambe@gmail.com.). FEPROBA is comprised of 3,600 members organized into 5 hydraulic unions and 264 groups, of which a female parboilers’ union and a co-operative of seed producers. From 2008 to 2013 VECO empowered FEPROBA .VECO experimented with this umbrella organization the contractualization with SFA/Durabilis. Unfortunately it did not work for various reasons: lack of pumps; constraints to access quality seeds, land development difficulties in 5 areas; lack of synergy between the actors.

The seed co-operative: a business model  Created in 2008, the cooperative of seed production has 100 members (95males / 5females) ; It is a subsidiary of FEPROBA. The objective of the co-operative is to promote the access of members to certified seeds.

Value Proposition  Certified rice seeds in several varieties from foundation seed The customers ...  Members of FEPROBA, the DISEM by contractual means, FAO, private customers ;  Production on order placed by customers Partners:  Key partners: the selected multipliers  FEPROBA has been authorized by the technical departments of the State to perform as a seed operator since2015.  (VECO and subsequently FAO)  SODAGRI ( a state run company responsible for the development of the perimeter); it provides with the supply of 7 technicians  DiSem (Seed Division of the State): responsible for the certification and the technical monitoring ; charge with 15,000 F by ha  ISRA (Research Institute) + AfricaRice: stem seed Key Activities  The seed plots are followed up by the DISEM and the SODAGRI (seedling density, calendars, purification, techniques and harvest date).  Conditioning, packaging and storage of seeds  Selecting seed multipliers, based on the following criteria: be a member of FEPROBA ; attend training on the techniques of seed multiplication; have a fertile field of at least 1.35 ha ; comply with the specifications (sufficient labor force, field monitoring, respect the previous cropping, etc) ; sell the total seed output to the cooperative.

Key Resources  The following stem seeds come from ISRA : Sahel 177, 328, 201, 202 and 159.  The following stem seeds come from AFRICARICE: NERICA 4, 6, and WITA 09.  Stores.  Equipment for seeds conditioning.  Coordinator of FEPROBA. Outcomes  High performing varieties have been identified and introduced into the basin of Anambe.  A greater demand for certified seeds.  The Mastering of the techniques of production by the producers.  Production in 2013 : 125 tons (sold at 300 F/kg)  Production in 2014/15 : 1732 tons (sold at 475 F/kg for R1 and 600 F/kg for foundation seed).

Seed production field of Mr Diallo

Seed conditionning equipment

Label of certification seeds R1 with number

Warehouse for stocking certified seeds

Anambe FEPROBA: Unit of Parboiling Parboiling is conducted by the Union of Female Parboilers of Anambe. The model is still in its infancy. The Union has benefited from the support of the Regional Agency for the Department of Kolda and that of VECO for the construction of infrastructure and the acquisition of equipment and tools for soaking, drying, parboiling, husking and conditioning. The women process 6 to 10 bags per day. The work is divided into groups and each group work 3 days /week. The parboiled rice is sold at 300 FCFA/kg at the market of Diaobe.

The demand is greater than the supply of this processing unit.

Provided that they are competitive, there is a large market in Casamance and Guinea Conakry. The huller that is acquired by the ARD is not all suitable for this activity because it puts out a mixture of broken rice and husk. Another sorter was acquired but the two equipment are mounted side by side; which does not facilitate the work of women. In addition, until now the women use firewood as a source of energy. They must invest in equipment that allows them to use the husk as a source of fuel.

Traditional parboiling process without steam

Huller Engelbert does not provide quality

Anambe FEPROBA: other options for business models There are other options for business models about paddy rice and white rice.

The production of 7,800 tons on 1,500 ha, with a potential of 5,000 ha. The Chairperson of FEPROBA, Mr El Hadj Ali Gano, achieves 8t/ha with 80kg/ha of seed (instead of 125kg), along with broadcasting fertilizer before sowing, and weeding twice as well as treatment with herbicide after 21 days. Therefore, the potential of offer is available.

As a customer there is the WFP (World Food Program) that purchase the paddy at 150 CFA/kg (25 F CFA above the ceiling) and that maybe interested in the white rice (average quality). You could consider the rehabilitation of the rice mill of the former president to deliver this quality.

There are also ongoing negotiations with a Lebanesecontractor who contemplates installing a rice mill to deliver rice of good quality to the cities of Casamance.

Another possibility could be the setting up of a company that produces compost.

THU 06/08 SENEGAL> MALI

The Reflections of the day      

The need for a planned contractualization in view of a planned production.

The need to open the door for new members.

The training in SRI (system of intensified rice production) would enable producers to control their production costs and be more competitive; the training is planned in the PA 2015 of FEPROBA. Parboiling: an appropriate model for a wholesome product.

The specialized structure (e.g. seed) is a must.

The role of the state (land development, technical monitoring and seed control) is appreciable, but thanks to the lobbying of VECO /FAO/ FEPROBA. Now, given the success to Anambe, the state extends expensive gifts

   

    

(scandal of 4 large combine harvesters which can never be used / FEPROBA must learn how to refuse this type of gifts and resell them immediately.

Role of leaders and of that the technical team. Their president is visionary and succeeded to Landing without problems. The coordination (Mohammed BASSOUM) is very dynamic, very professional and respects leaders.

Complementarity between actors: each one playing their role.

Entrepreneurial spirit at all levels.

When we found the right entry door to have early success, the rest follows ... this door of entry is the seeds for which there is a high demand and which have a remunerative price; this has consecutively catalyzed the other initiatives of FEPROBA. To be continued: the research on drying the paddy and the parboiled rice thanks to the solar p. e by the solar bubble dryer GrainPro, Inc. - Solar Bubble Dryer™ See the possibilities for storage of seeds with " cocoon hermetic" GrainPro, Inc. - Self Verifying Cocoons™ Dare to formulate "business proposals ". Ex. a Lebanese wants to invest, but the trader, the farmers just like as we do, have a tunnel vision. We could invite the Lebanese to visit SFA at St Louis.

Is it also possible to support the expansion of the conditioning unit for seeds by Kampani?

It is also important to strengthen the control system at the level of the conditioning unit to avoid fraud and counterfeiting. There are 'traceable' inks for bags, twine, paper ... a small sensor indicates if the ink is genuine or counterfeited. .:: Centor Thai ::.

Visit to a wholesaler at Kedougou That visit was not planned. We saw a truck unloading rice and we negotiated a visit of the store of the wholesaler. That visit enabled us to notice :  The importance of the local rice vis-a-vis the imported rice; an estimate of 1/3 of local rice versus 2/3 of imported rice.  The first variety and premium quality of imported rice is the Thai Super A1. Contrary to what its name suggests, it is considered to be of low quality in world trade and it is 100% broken rice and non-aromatic.  That Thai Super A1 rice is delivered in bags displaying a logo,an African label and Frenchwords: Boabab, Leopard ...

The importers have their packagingmade in Asia in accordance with their wishes. However, does the content match with the displayed items on the bags?  The second variety of imported rice is the aromatic rice, 'Hom Mali' or Thai Jasmine (but also 100 % broken) and a third variety is the parboiled rice from India (5% parboiled)), long grain.  The local rice of the trademark Rixel is available as 'a whole grain of superior quality' and as ' a broken grain of superior quality.'  Such an exercise (visit of several wholesalers) enables you to note the varieties and qualities of imported rice, and therefore the preferences of the local market; these are the varieties and qualities which should be used as references to position the varieties and qualities of local rice in terms of value proposition.

Presentation operating account LOFEPACO North Kivu DRC From the applied routing, Françoise Kabindo of LOFEPACO, carried out a thorough calculation of the accounts of her rice field of 1 ha.

Operating costs in 2012:  Total expenditure $748 for 1st + 2nd labor by a tractor; harrowing ; purchase of 70kg of seeds ; sowing ; watching ; weedings ; harvest, bag, transport, storing ; but no fertilizer  Quantity harvested: 2,520 kg of paddy less private consumption (150kg)  Sale of paddy: 2,300 kg to 0.5 $ /kg  Self-consumption: 150 kg and for seeds: 70 kg  Total sales + valuing: $1,260  Margin: $512 Operating costs in 2013:  After a visit to the INERA YANGAMBI, the producer decided to buy improved seeds 'Lienge' field. No fertilizer  Total expenditure 2013: $848 ; including processing costs to $0.07 /kg  Yield: 3,000 kg paddy ;  1,900Kg of white rice sold to the brewery BRASIMBA at Bemi at 0.87 $ /kg  Total sales + valuing: $1854  Margin: $1,006 Operating costs in 2014:  Fertilizer use: 100kg of DAP and 100 kg of urea hoping a better crop  Unfortunately, they were plagued with rebel attacks forcing them to flee from their land, invasion of granivorous birds by lack of watching: accordingly, she recorded a loss of $425.  LOFEPACO (League of Agricultural Female Producers of Congo) with 1, 9000 members has contracted with BRASIMBA ; credit union ; collective sales ; warrantage ; customized packaging.

Response :  She was congratulated for the well figured operating accounts and the role of LOFEPACO as she related her story as a producer in 2012, 2013, 2014)  Respect for the courage ;  To be incorporated in the risk analysis.

FRI 07/08 MALI

Overview of the rice sector in Mali  

By the VECO PROGRAM COORDINATOR Mali, Brehima DEMBELE The rice alone accounts for approximately 5 % of the GDP of the country (SNDI, 2009). It is regarded as a strategic product in Mali. The national production reached 1,437,748 tons of white rice in 2012/2013. This production is 93% of the country's needs in rice (see this presentation in the annex). The potential of Mali is of the order of 2.2 million ha and 15% are exploited.

The Experience of Institutional Purchase in Mali  

By Seïdou Keita, Technical Director of the National Platform of Rice Producers in Mali (PNPR M) See appendix for details Negotiating and signing contracts Collect of paddy Processing of paddy Monitoring of stocks The balance sheet of the operation Negotiating the institutionalization of the institutional purchase operation

g

m

Cost Structure









In 2014, the Government of Mali, through the Commissioner of the Food Security of Mali (CSA), has decided to conduct an institutional purchase of cereals on 25,000 T to build up the National Intervention Stock (SNI) and the National Stock of Security (SNS).

The support of VECO to the National Platform of Rice Producers of Mali (PNPR) enabled 16 FOs to enter into contracts with the Office of Agricultural Produce of Mali (OPAM) on 12,300 tons. These FOs managed to deliver 4,853 T (or approximately 40% of their contractual commitments) and earned an amount of 1,458,123,500 FCFA (2,226,142 euro).

Although this first experience was deemed successful for all stakeholders, its objectives were not fully attained for the major reasons: (i) the lack of working capital hampered most of the contracting FOs to mobilize the stocks from the cooperators beyond the repayments in kind of loans contracted; (ii) the delays in the startup of the operation.

The chairperson of the cooperative of female parboilers of Dior released a brief presentation of the experience of the cooperative and their participation in the institutional purchases. Thanks to the purchase agreement granted by the State, the cooperative benefited from a credit of 30 million F CFA with the bank for the purchase of paddy. However she recognized that the price of paddy has increased; which constraints the access to the agricultural input.

Office of the Niger and the dam of Markala 



A Segou, the mission paid a courtesy visit to the President Director General of the Office du Niger (ON), Mr Illias Dogoloum Goro. The Office of Niger is an agro-industrial company of Mali from May 19, 1961. It is provided with developable andirrigable farming land of 1,947,000 ha by gravity (source Office of the Niger).

A little more than 110,000 ha are developed currently .Let us remind that the company was established in 1952 by



 

the French colonizer for the production of cotton for the French textile industry and that of grains for the colonized.

The Office of Niger provides approximately 53% of rice production of Mali. In the dry season to mitigate the effects of climate change, the vegetable crops less water-consuming, are cultivated (potato, onions, tomatoes, etc. ).

The mission visited the irrigating dam of the lands of the Office of Niger. That dam was built in 1932.

For more info: Office du Niger

SEXAGON  



The mission paid a very brief visit to the Trade Union of Agricultural producers of the Office du Niger (SEXAGON).

A field visit of SRI crops was planned and the rice mill of a co-op member, whose equipment was manufactured by SOCAFON (see below). Unfortunately, for security reasons after the attacks at the North of Mali in the previous days, we were compelled to leave earlier than we had planned in order not to be retained at the dam of Markala.

For more info: Trade Union of Agricultural Producers of the Office of Niger (SEXAGON)

Artisanal Cooperative of blacksmiths of the Office du Niger (SOCAFON) Various equipment were presented by the Managing Director of SOCAFON but their special feature is that these tools are manufactured on site or mounted and adapted to the environmental conditions. We can quote:  The Thai motor cultivator with its accessories,  The sower of rice by human traction,  The motorized sorter,  The thresher of rice,  The kit for pre cleaning paddy,  The prototype of rice sucker  The planning equipment by animal traction,  The weeder..

It also manufactures rice mills that we should visit normally, but it was not possible owing to the safety conditions..

See in annex a few very useful equipment to ensure the quality of paddy and rice.

E-mail: socafon01@yahoo.com

 Seeder for pre-germinated rice

 Soil preparation equipement

 Manuel weeder

 Motorised tresher-winnower

 leveling equipment

 Grader

SAT 08/08 MALI > BURKINA

The Reflections of the day 

   

The technologies developed by the craftsmen are adapted to the environmental conditions and are adopted by the producers and processors: a strong collaboration between the Cooperative of blacksmiths and direct actors (producers/processors) In the business model ofthe institutional purchase of Mali, the need for the presence of financial institutions for the success of this business model was strongly recommended; The institutional purchases constitute a business opportunity for FOs ; Mutual recognition between the stakeholders of a business model (suppliers, buyers) before the start of their business relationship enables to facilitate the management of issues and risks.

The participants highly appreciated the equipment at the level of the cooperative of blacksmiths and some wished the purchase of these tools to mitigate the toil in rice production.

Classification of rice and standards  

Presentation by Christ V. based on the system of quality grades seen in Thailand. See powerpoint in the annex.

Rice can be classified according to different criteria : the length or form of the grain, the varieties, and the composition of the grain

Regarding the size and form of the grain, we distinguished Type of rice: long grain rice:

Length > 6.6 MM

Ratio length/width Length > 3x width

medium grain rice: short grain rice:

6.2 - 6.6 mm < 6.2

Length = 2-3x width Length < 2x width

The most important criterion, which determines the quality of the rice marketed, is the particle size or the percentage of broken rice. The classification is different from one country or region to another.

Thailand:

  

whole grain Rice : medium broken rice: Small broken rice :

Length ≥ 80% of the average length of the whole grain Length 25 > 80% of the average length of the whole grain Length < 25% of the average length of the whole grain

ECOWAS / UGANDA:

    

Whole Rice : Big broken rice : Medium broken rice: Small broken rice : Chalkyl:

Length ≥ 75% of the average length of the whole grain Length 50 > 75% of the average length of the whole grain Length 25 > 50% of the average length of the whole grain Length < 25% of the average length of the whole grain and > 1.4 mm Length < 1.4 mm

The percentages often indicated on the imported rice from Asia relate to the percentage of medium broken rice.

It means that most of rice qualities are a mixture of whole grain and medium broken grains. These are the chalky that nobody wants to see in his or her rice. For example, the grade 1 of Thailand has 80% of whole rice, 19.75% of medium broken rice and maximum 0.25 % of chalky. The ECOWAS does not specify: it is the buyer who should specify the percentages of each 'standard' of rice. By contrast, the Uganda has specified the percentage of maximum broken rice for 3 grades (5 - 15 - 25 % ). It is also important to remind that “whole rice does not mean a whole grain! If the size of the fragment is ≥ 75% it is considered as whole rice.

A ratio of 40% of the whole rice on the paddy is considered as very good. If the rate of processing is 65 %, then it means that we will yield on the white rice, 61% of whole rice and 39%of broken rice, in expecting not to yield much chalky. The broken rice should also be sold.

The plains of Bama  

The mission stopped over at the plains of Bama of 1,200 ha (Burkina) to exchange with the producers.

The exchanges particularly focused on the production systems , seed systems, the marketing of rice, the difficulties encountered by the operators ...

Business Model Canvas of LOMIA, Tanzania 

BMC of the Tanzania was presented by Mr Sakaya.

Classification of rice and standards: practice exercise Each participant came to the ARE with samples of their rice and imported rice. Late in the evening, wedid a practical exercise of ranking these samples. Bernadette once more explained the method and thereafter we saw the participants fully absorbed in piling whole rice, medium broken rice, chalky rice and faulty rice with their mobile phones supplying light..

The conclusion of the exercise was that in most cases the percentage of whole rice is reasonable but that of small broken rice is too high. The analysis of samples of rice called 'whole rice' collected on the way, has shown that this branding was false: you can even attain 10% to 20 % of medium broken rice.

MON 12/08 BURKINA

Overview of the rice sector in Burkina Faso Importance of rice

Production Areas Rice Production Modes

     

The 4th grain among cereals Increase in consumption: 5.6 per cent per year (MASA, 2013).

Substantial role in the economy Nearly 45 billion Fcfa/year for rice importation Regions of the East-central , Hauts Bassins, Mouhoun and Cascades, Center

The low land rice cultivation : 67% of the rice cultivation areas and 42 % of national output with an average yield of 1.3 T/ha  The irrigated rice cultivation : 23% of rice cultivation areas and 53% of the national output with an average yield of 4 to 7 T/ha  The rainfed rice cultivation : 10% of the rice-cultivation areas and 5% of the national output with an average yield of 1 T/ha Typology  Uncontrolled: rainfed- non developed low lands relating to the  With partial control (a cropping/year) : developed low lands,-small perimeters with dam control of perimeters along water flows. water  With full control (two crops/year) : Large perimeters with dam - irrigated perimeters by pumping - perimeters along water flows.

Rice Producers  286,542 of agricultural households exploiting small areas, of which the average is less than 0.3 ha per household The supply and  Production potential: more than 800,000 ha that can be used for the cultivation of rice demand (including approximately 500,000 ha of low-lands and 160,000 ha of irrigable land)  In 2013/2014 : 136,864 ha (17% of the potential) of which approximately 60,000 ha of irrigated land  Demand: 600,000 t of white rice  Seasonal offer of 2013/2014: 305,382 t of paddy Types  Industrial and semi-industrialprocessors (purchase and processing of paddy rice into white of processing rice + service delivery)  The female traditional husking agents are scattered in the production areas (service delivery)  Female parboilers: parboiled rice Marketing  Paddy: provided by the FOs, the collectors/traders of paddy,  Local rice: processors, wholesalers, semi-wholesalers and retailers  Imported rice: importers, wholesalers, semi-wholesalers and retailers Organization This is one of the most advanced in structuring with CIRB, which is an interprofessional of the sector organization that includes:  UNPRB, National Union of Rice Producers of Burkina  National Union of Rice Processors,  National Union of Female Parboilers of rice, UNERIZ  ANACOR BF: National Association of Rice Traders  OTRAF: haulers National Observatory: information center on rice in the BF the State  The institutional purchases by the SONAGESS (National Company for the management of security stocks) established in 2009 by the State are becoming less and less remunerative, and overriding its original remit; at least 20% of the production is marketed through SONAGESS.  Advocacy in progress at the level of actors to extend the institutional purchases to large households,  Fixing of a threshold price of paddy by the State: in dec. 2014: 150 F the kg

The Business Model of the Parboiling Center of Douna The second presentation focused on the business model of Douna whose presentation was the subject of an exchange while we were driven to Douna.

Visit of the Research Center of Farakoba of INERA 

   





The Director of the rice program being on mission, his deputy (at the same time breeder) and other collaborators entertained the mission. After words of welcome from the deputy and the introduction of the purpose of the mission from the Regional Representative of VECO-WA, the research actors proceeded with introducing their center.

The management team of the center is comprised of departments: selection - animal resources - forestry vegetable production, of which riceprogram is a component.

The objectives of the rice program are: to promote the production of rice (variety, yield, seed, fertilizer etc) – to reduce importation, to improve the income of farmers.

The specific objectives of the center are: to provide producers with high yielding stable varieties -to develop performing low cost technologies-to value the research in rice cultivation.

78 developed varieties:a 5 to 7 tons output increase. The method used is the Participatory Variety Selection, which involves producers and consumers in testing with R1 and R2. After the positive assessment by the producers and consumers, the center focuses on the production of stem seed (G4) and pre-stem (G1, G2 and G3). The stem seed (G4) serves as a parent for commercial seed and certified one. These are the seeds of first generation or second generation (R1: seed from stem seed G4 ; R2: seed from R1). The production of R1 and R2 is done by the National Service of Seeds, by specialized groups of seed breeders and also by companies.

There is a Union of seed companies. The National Service of Seed is responsible for supervising the other seed producers. The Center can deliver them stem and its by-products, but only on order. If the order placed is less than 300 tons, the Center can easily deliver it . The Center also carries out studies to determine the degree of the adoption of varieties. About the names of varieties,they stressed that very often a variety had several names. Centers will give their own name to a variety p. e. FK = Farakoba Design of technical sheets in accordance with the variety and indications of specific fertilizers. That depends much on soils, but in general we need more twice P than N. They promote the Deep Placement of Super granules Urea (PPU) (see sheet in Annex). They have also developed a method to make compost from the rice husk in 2 months (see poster in annex).

INERA has 15 tons of pre-basic seed TS2 variety, well appreciated by Burkinabe consumers.

Visit of the Parboiling Center of Douna The participants were:the Departmental Union of Female Parboilers of Douna (UDERD)and its grassroots members , the Provincial Department of Agriculture (UDPRD)and the Development Project of the Plain of Douna.

After the welcome word of the chairperson of the Departmental Union of Female Parboilers of Douna (UDERD), and the introduction of the members of VECO’s mission and members of the executive bureau of UDERD, UDERD made a presentation of their center.

Background  The Center of parboiling of Douna is the initiative of UDERD, which was created in 2010 and obtained his document for official recognition in 2011. There are 10 groups of grassroots member. The number of individual members of the groups has increased from 130 in 2010 to 290 in 2014.  Parboiling is traditional/cultural in the area of Douna. It was only from 2009 onwards that women have started coming together in agroups to parboil rice. Before meeting VECO (in 2011), parboiling took place under a mangoe tree from 2009-2013.  The meeting with VECO in 2011 enabled them to better structured, and benefit from the capacity-building actions and small tools (hardware) for the parboiling.  The idea of a center of parboiling was born in 2012 thanks to the support of VECO and it was only in 2014 that the Center came true.

Management organes  General Assembly (AG). The AG is the supreme organ of the Union and is composed of representatives of member groups (5 people per group). The regular AG is held once a year in the two months following the closure of the social exercise of the Union.  The Council of Administration (CA) is composed of 11 members, elected for a period of three years, renewable once.  The Committees are the bodies responsible for the coordination of activities, notably internal and external relationships with partners. The members are elected for a term of two years, renewable once.  The Management Committee (CG) is the organ that is responsible for the management/coordination of economic activities of the Center through the different committees;  Committee control of quality (CCQ) is the body of internal quality control;  The supply Committee (CAP): this is the committee that deals with the supply of paddy to the Union and the management of the different stocks (paddy and parboiled rice and husked rice) ;  The Marketing Committee and monitoring of contracts(SCCC is the committee which is responsible for marketing, market research and monitoring of contracts;  Recovery Committee(CR): This committee is concerned with the collection of receivables.

The partners of UDERD are:  UNERIZ, UDPRD, (VECO, TRIAS, OXFAM  They have benefited from a loan of 46,000,000 CFA Francs from Coris International Bank as a working capital for the purchase of paddy.

Market:  Market of Douna and wholesalers from neighboring countries such as Mali and the Ivory Coast.  Two wholesalers were contacted in Banfora.  Currently, the challenges of the union are to achieve contractualization with wholesalers in a sustainable way.  Thanks to the support of UNERIZ and (VECO, they struck a contract for the delivery of the parboiled rice of 200 tons with the National Society of Management of Safety Stock (SONAGESS).

The price  Price SONAGESS: 320 FCFA/Kg rice of lower quality  Distributor Price: 380 FCFA/Kg average quality  Price Supermarket: 650 FCFA/Kg  Price retailer quality average: 500 FCFA/Kg rice  Price retailer top quality: 800 FCFA/Kg The packagings:  1Kg for the supermarkets/stores  5Kg and 25 Kg for the rest.  The rice can be conditioned in the packages of 50 Kg on request.

The distribution of income  The profit is distributed between the union, the grassroots and the members individually.

Key Resources: the center and the equipment  After the presentation, participants proceeded to a guided visit/commented on the center of parboiling. The center is built and equipped for higher production and productivity, to ensure a good quality of parboiled rice while reducing the drudgery of work for women and mitigating at the same time the impact on the environment. The center stands for a reference, a model, a center of learning, so that members can improve their own processing at home.  The visit was carried out by following the operating sequences of parboiling process: storage facility for paddy rice > shed for winnowing > washing room, shed for washing, soaking and pre-cooking > area of drying under the sun > area of drying under the shadow > room of husking and sorting > room for conditioning> storage facility of parboiled rice.  Solar installations were mounted at the center allowing the women to produce in an environmental friendly way and minimize production costs. Technological innovations were achieved about parboiling equipment.  The process of production was explained to the mission.

About the division of work, parboiling is apportioned to groups in their respective turn.

The other members who were present at the meeting took the floor to say a few words.

The renovation project of the plain of Douna His representative assessed their project for planning and rehabilitation of the plain of Douna. From this intervention, we retain that the main constraint is the lack of financial means and this can be accounted for the transition that Burkina is going through. Partners were call on to bring any help .

However, he made clear that t despite these difficulties in fund raising, the center of parboiling will no longer have a problem of funding.

The provincial department of agriculture His representative stated that their state run structure is responsible for the technical management of producers to master technical routing and good practices. They accompany the groups/producers' co-operatives to better organize themselves from the institutional point of view.

The Departmental Union of Rice Producers of Douna (UDPRD) THE UDPRD by its president reassured the delegation that the center would no more face paddy supply shortage. The Union made provisions to guarantee the supply of female parboilers with qualitative and quantitative paddy. The plain of Douna comprises 1,200 producers, of whom more than 80% are women.

TUE 11/08 BURKINA

Meeting with the Interprofessional Committee of the Rice of Burkina Introduction of the meeting by the executive secretary of the CIRB. The presentation of the CIRB focused on the following points: Introduction, Definition, objectives, functions and main missions, members, bodies of the CIR-B, flowchart/operating mechanism, Services rendered to members, partners, prospects and conclusion.

Further to this presentation which is attached in the annex, a series of questions were asked to the technical team of the CIRB. Operation of the Interprofession  CIRB has no representation at regional level or in the provinces. It is represented by its various links that make up the CIRB, namely: the college of producers, processors, traders, haulers.  One of the challenges of the CIRB is to endeavor to represent the links of the CIRB overall territory of Burkina.

Financing of the CIRB  With regard to the cash flow of the interprofession, there are the internal mobilization composed of annual dues and membership fees.  Then comes next the external mobilization. About this aspect, a study was conducted in order to understand how to proceed to levy on services rendered to members.  There is the law on the interbranch organizations that also opens up opportunities for funding of the CIRB.  Finally we note the development of specific projects to generate income.

Advocacy  The environment was not entirely favorable;however, with the popular insurrection that Burkina witnessed in late 2014, the situation is evolving nicely. The players want to interact with the authorities of the transition to lay down foundations.  There is an ongoing advocacy within SONAGESS because the relationships are not trouble free between the latter and the female parboilers on some contractual elements namely the price etc.  Other themes of advocacy are the respect of quotas on imports, the institutional purchases etc.

Advocacy strategies are developed and information are collected to feed these themes.  A steering committee of advocacy is set up and represented by the various links.

Role of the CIRB on the quality of the rice  The mastery of the technique of the production to propose paddy of good quality ;  The mastery of the technique of the processing, the equipment necessary for the practice of the processing.  The storing from haulers and merchants to end consumers (N. B: the carriers play an important role in the sector and their accession to the CIRB has enabled us to understand the problems of the rice sector)  The discipline. For this purpose, each actor must be aware of the need for quality products.

Marketing  A directory of points of sale of national rice has been developed in the big cities. Larger compounds such as camps, schools, and the hospitals are identified and negotiations are underway with authorities for selling them national rice.  Actions for the promotion of the national rice have been carried out on the radio, the written press and tv channels.

The difficulties  Lack of technical competence in some links ;  Low capacity of the staff of the CIRB on certain specific activities; More info: CIR-B :: Ensemble, produire et promouvoir le riz nationnal | Accueil

Meeting with the National Union of Female Parboilers of Rice (UNERIZ) The presentation of UNERIZ focused on the following points: organization of the UNERIZ - Operation of the UNERIZ – the processing of rice - the marketing of rice - the access to financing - the current major challenges of the UNERIZ. For details see annex.

After this presentation, questions of clarification were asked to the technical team.

Services rendered to members:  Capacity building skills and management. To benefit from the support of UNERIZ, you must be a member.  Support to the marketing of the parboiled rice by its member unions Equities  Deductions on the wholesale negotiated by UNERIZ ;  Remunerated services such as technical training, packaging etc.  Financial Contribution of members to the staffing equipment ;  Securing and field research in the framework for the construction of a center ;  Internal mobilization by the granting of credit to members, the contributions and rights of adherence.

The credits contracted  Duration: Caisse populaire 6-9months and Coris Bank 6-12Months  Interest rates: Caisse populaire 15% and Coris Bank 8-10% Difficulties  Shortage of husk as fuel;  Gas supply Equipment under experimentation The challenges  Increase the volume of rice marketed in the best conditions.  Improve the quality and presentation of the parboiled rice, by the mastery of the techniques of parboiling, the access to the equipment that are adapted and efficient. and the access to the packaging of quality  Development of a distribution network in collaboration with the other actors  Establish the culture of the spirit of value chain and entrepreneurship  Improve the access of women to adaptedcredit  Develop the cash flow in the medium term  16,000 female parboilers parboil 50% of the national production; in the centers of parboiling, there is only a small percentage of individual parboilers. Should we not reflect on other models that allow a strengthening of individual parboiling?

More info: UNERIZ

The Reflections of the day 

   

Why say that it is an animal, if you could say that it is a bird? Why say that it is a bird, if you could say that it is a parrot? Why say that it is a parrot, if we can specify that it is a black collar parrot or an African gray parrot?

Let us be more precise and concrete as possible in the business models: which is the company: FEPROBA or the co-op in seeds? The grouping of LOMIA members or LOMIA? What is our clear value proposition? Who are the partners concrete which actually render a service and what service ...

Quality, quality, quality ... but in a manner constant, constant, constant. Better choose a lesser quality but we are able to deliver and to keep constant.

The key element that is very determinant in the quality assessment is the performance of the sorter ; The quality is not simply determined by what the market wants, but particularly by what the market is willing to pay.

A quality approach is determined by the quality of the products (paddy - white rice) and the quality of operations (production - processing). The quality of products is specified in the specifications, the quality of operations by manuals of operation. An Internal Control System (ICS) ensures that the specifications and operation manuals are respected.

       

      

We can now better understand the packaging of imported rice and especially the percentages which are sometimes above.

At Uganda they can now determine in what 'grade' is their rice The production of a variety by the research is dictated by a real request of the Market Seed exchanges are possible between the countries in the region and this can be an opportunity for the members of FEPROBA Parboiling allows enhancement of rice and self-promotion of women Technological change of parboiling has reduced the drudgery of women's work over time The business model of Douna is a complete model and an inter-linked one. However the linkage of women with the financial institution has been done too fast It is important to think more about how to reduce the costs of the parboiling centers visited and how to better use them : if we take into account all investment costs, it will not be easy to demonstrate profitability. TRIAS will take lesson from these experiences What is the best organizational mode for parboiling center to maximize profitability? reflection is necessary To reflect on the relocation of parboiling and to make the center, a place of finishing and packaging It is not possible to build a business model by ignoring unknowns, uncertainties, etc. you must have some proactivity to adapt quickly to the situation It is possible to launch a process of creating an inter with only two links of a chain. It is not necessary to wait for the structuring of all links in the chain: Mali team will take lesson Role of guarantee funds: reducing risk perception by the players and get them used to credit to run their businesses If the 2008 crisis led to a revival of rice sectors in the west of Africa, it is not the same in Congo The UNERIZ markets only 1% of the parboiled rice produced by its members so that the total amount of parboiled rice in the country is 50% of paddy production: what business model developed to capture all the production of parboiled rice?

Business Model Canvas UNIRIZ-C, Benin

by Hermann

Business Model South Kivu, DRC

by Sylvestre Lueca Business Model Canvas : the plain of RUZIZI –ADPA Key-Partners

Key Activities

Value- Proposition

Relationships with

Customer segments

MEMBER PRODUCERS OF

PRODUCTION OF PADDY

QUALITATIVE &

Customers

MARKET FOR INDUSTRIAL

THE COOPERATIVE

RICE

QUANTITATIVE WHITE RICE DIRECT CONTRACT WITH

PROCESSING

NON MEMBER PRODUCERS PROCESSING

IN ACCORDANCE WITH THE BRALIMA

LOCAL MARKETS BY

OF THE COOPERATIVE

REQUIREMENTS OF

RETAILERS

WHITE RICE COLLECTION

MFIs : LIMINOSITY,COOPEC MARKETING OF WHITE RICE BRALIMA KALUNDU

COLLECTIVE PURCHASE

AGRI INPUT SUPPLIERS VECO-DRC

Key-Resources LOANS FOR MARKETING

IFDC

SORTER EQUITIES

PURCHASE ORDERS WITH INTERMEDIARIES

COLLECTIVE SALE OF RICE FACILITATION OF PRODUCTION LOANS FOR MEMBERS STANDARDIZATION OF TECHNIQUES OF PRODUCTION FOR THE MEMBERS

Channels ARRANGEMENTS FOR DIRECT DELIVERIES AT BRALIMA DELIVERIES TO INTERMEDIARIES THROUGH PURCHASE ORDE

Cost Structures

Flow of Revenues

PADDY PURCHASE

RICE SALE OF 650 TONNES TO BRALIMA FOR 6 MONTHS

RENTAL AND MAINTENANCE

MACHINING REVENUES

TAXES AND BANK INTEREST RATES - DEPRECIATION

SALE TO INTERMEDIARIES AND RETAILERS

SALARIES AND BONUSES

Questions on the packaging Most of the participants brought along packages of their own rice or imported rice. After a presentation of each packaging, we made a 'game of statements'. A statement was proposed and the participants should in binom state whether they agree with it yes (+) or not ( -) , or they have a different opinion (0). Thereafter all the binoms ‘voted’ and set off discussing.

Statement 1. The text is the most important item on the packaging + 0 An outstanding token is more important than the text: such is the case of the woman on SFAbags the Baobab, the Standards. The purpose of the token is to make the brand conspicuous ; if this token connotes items related to the value proposition, so much the better. What is striking is that the packaging of imported rice does not display photos or drawings of the rice; whereas the local packagings often have drawings of rice (or something that looks like the rice). See also the example of SFA where the color of the bag indicates the quality of the product.

Statement 2. The Farmer Organization must have its own brand + 0 Although from a 'psychological' stand point, we can understand that an FO should have its own brand, it raises some questions. Is the consumer really interested with the producer of the rice he buys? Is the wholesaler not interested in having his own brand ? Is the FO the most suitable actor to determine the packaging?

Statement 3. The cost of the packaging must be paid by the customer + It seems obvious ... But is the customer really ready to pay much more for an attractive and expensive packaging ? Donors subsidize very often packaging. Do we not risk selling expensive and ultimately turning off by the customer?

Statement 4. For each quality, you must have several packaging + 0 Obviously no: the small packages of 1 kg are only for the top quality (also from standpoint of the cost and that of the previous statement); the grades of lesser quality are sold in bags of 25 or 50 kg.

Statement 5. Consumers appreciate that the quality of the rice is fairlyand transparently represented On a lot of packagingswe read phrases that mean little such as ' broken rice of superior quality', 'delicious and without stone, 'excellent rice ', the term 'long grain' refers only to the type of rice, the size and form of the grain and says nothing about the broken component. The term 'white rice' can be used to distinguish it from the parboiled rice. The whole rice attempts to ascertain that there is no broken rice ; nevertheless the samples that we analyzed showed that they contained between 10 and 20% broken rice ; which is acceptable for the Senegalese market.Several Asian countries indicate the percentage of broken rice; it is a key element to describe the quality. If in a given country, there exists a standard with grades, then the grade could be mentioned on the bag (such as in Uganda with grade 1, 2 or 3). If the rice is perfumed, it is better to indicate it but the phrase 'Jasmine rice' or Hom Mali is normally used for varieties from Thailand. You must avoid mentioning too much information on the bag.

WED 12/08 BURKINA

Meeting with Coris Bank International (CBI) Presentation  The representative of CBI, Mr. Minoungou, made his presentation in the following sequence: 1. Presentation of CBI 2. Knowledge of actors: Organization-process-hierarchy of links 3. Identification of funding needs: CT - MT - LT 4. Assessment of potential guarantee offer, financial education 5. Elaboration of the conditions and mechanisms of financing 6. Funding the chain, monitoring of loans 7. Reflection on the improvement of the mechanism  See the appendix for details  Mr Mariotte, an independent consultant, who is working for a Danish program, mentioned that in his long career as an Agricultural Lending Expert, he has not seen a lot of banks engaged in the agricultural sector with CBI’s courage and boldness. Further to this presentation, the participants asked questions to understand more the activities of the bank.

Questions/comments of participants  The representative of Coris Bank wishes ROPPA (the network of farmer organizations in West Africa) should facilitate and coordinate the consultation with farmers circles in the context of their relationship with the bank. For the representative of CBI, FOs should ensure the coordination with the bank to facilitate the financing of their members ;  The information system on the market did not exist but currently, a version of it called SIMAgri has been developed by Green Africa Burkina ; it is available but not yet known by the FOs ;  The strengthening of the capacities of FOs does not fall under the bank remit but should be provided by the NGOS in the field ;  FOs have understood that the business plan is not only used to be funded but also to serve as a tool for steering and communication with the partners;  The standard rate of interest is 8% for the producers and the processors and 10% for the distributors.  Coris Bank is not only focused on the rate of interest but rather on how the bank should contribute to changethe behavior of FOs, how to transform the agriculture ;  The 10 billion of credit funds for agriculture is allocated only for Burkina but it is not excluded to build up a common credit fund for all countries where CBI is settled;  For the moment, the insurance does not cover rice but only maize; however, mechanisms are being developed with the insurance companies ;  For the monitoring, the loan granted is not disbursed totally but in 2 installments ;  There is a monitoring of rice fields and the processing units;  To ensure that the individual members of the FOs benefit from the loan, CBI always requests FOs to communicate the list of their members and make loan application decision in the Board of Administration and General assembly ; this allows grassroots producers to benefit from the credit granted ;  There are no other methods except regularly monitoring the activities of FOs to minimize the risk and communicating more with them.

Questions/Comments of Coris Bank  CBI in its turn, has requested the experience of other countries on the financing of agriculture by the banks.  Senegal and the DRC shared their experiences with CBI and there is similarity in the practices.

Meeting with ANACor-BF After VECO introduced the mission, the chairperson of the Association of Traders of Rice of Burkina Faso (ANACorBF) presented their association according to the following points:  Background of the ANACor-BF, created in September 2013  The objectives  The missions  The achieved results  The difficulties encountered For more details, see the flyer in the annex.

The achieved results  It sold 13,500 tons of local rice in 2014 in their point-of-sale system. These are the shops or existing stores that sell the local rice. This network has 85 points of sale in Ouagadougou. A map that shows the location of each point of sale has been distributed with newspapers and is available on the web. The aim is to double the amount to 30,000 tons in 2016.  After a promotional multi-media campaign of local rice, a rise in sales was recorded. They are looking for a central store in Bobo and Ouaga which can serve as 'a department store'.  About pricing, there are two criteria: the price of paddy and the price of the finished product.  The producers fix the price of paddy so the traders see themselves left out in the chain. The price of the finished product is fixed according to the quality of the rice.  The traders have a good appreciation/image of the national rice because the quality is much improved compared to previous years.

The difficulties encountered  As to difficulties, there are at several levels: organizational and institutionallevel, the gaining of membertraders, the quality ofprocessed rice , the financing of their activities etc.  About brands and quality: you can meet any type at Ouagadougou ; some rice mills can deliver the quality, whereas others can produce nothing but mixtures ; there are not yet approved bags  There is competition with the imported rice, and it explains why it is difficult to sensitize other traders for the local rice  Professions are mixed up:while some producers improvised processing or trading, some rice mills carry out marketing. Therefore actors are not always professional and each one wants to do everything at the same time.

The challenges  To have a head office to promote the local rice, more traceability, more visibility of points of sale, access to credit for traders.  Each actor mustbe committed to fulfill its trade and a political will to ensure the sale ofthe national rice to large compounds (barracks, hospitals, schools etc. )

Presentation TRIAS The representative of TRIAS made a presentation of their business model in the construction phase with the female parboilers of the center north of Burkina more precisely at Louda This presentation will follow later

The Balance Sheet: lessons learned and action points Each region worked together to make its balance sheet of the ARE:  What are the lessons learned?  What are the action points to achieve in the short or medium term?

The Mali being with 2 people worked apart ; other countries of VECO WA worked together and worked out new key-items for the new program.

Each group formulated their ideas on flipcharts. Afterwards we went round the groups three times to watch and comment on presentations.

South Kivu Lessons Learned 1. Insert at the beginning of the supportive actions of FOs a scheme of credit for the development of a business model (ex. SFA, Coris Bank) 2. The Parboiling provides women with more value addedin the framework of women’s integration in a specific CDV and the family economy.

3. Structuring producers on a specialization ex seed breeding companies of Anambe 4. The importance of an interprofessional organization 5. Constant Quality, constant quality, constant quality NORTH KIVU Lessons Learned 1. Importance of investment in one of the links in the CDV rice with triggering effects in the other links (production, processing, marketing, access to credit) 2. The complementarity in the roles of actors in the chain 3. The processing must give a real value added to the product (quality) 4. The use of the appropriate technology 5. Promote a frank dialogue between the actors of the chain TANZANIA Lessons Learned 1. Parboiling 2. Credit system for all chain actors 3. To have strong FOs 4. Market (P factor) + Quality rice (grading) 5. Supervision + collaboration among actors UGANDA Lessons Learned 1. Central role of government in the rice sector given strategic importance of the commodity; with government coming into the sector a lot can be achieved (rice sovereignty) 2. The market/customer is the ultimate element in business; it dedicates all other things 3. A BM is a driver of appropriate action 4. Participation of special groups in the rice value chain (women with parboiled) rice) 5. Synergism among all stakeholders for forward moving

Actions to achieve 1. Launch a business model that is creative, coherent, feasible and that meets the context of the South Kivu 2. Experiment parboiling with a group of women 3. Invite Christ as soon as possible in South Kivu 4. Make a creative restitution

Actions to achieve 1. Identify the actors of the chain and clarify their current roles 2. Make the choice of BMand have it promoted by FOs 3. Organize consultations with the actors of the chain rice 4. Organize a workshop on restitution with the partners of the PA rice 5. Experience of parboiling at Mwenda/Rwenzori

Actions to achieve 1. To fine tune the BM 2. Feedback meetings with farmers 3. Business meeting with chain actors 4. Strengthening FOs 5. Business contract with buyer(s)

Actions to achieve 1. Lobby govt to increase its role in the sector (policy, service provision, technologies, etc) 2. Grade Doho rice and launch product and BM test 3. Identify projects for women integration in the rice value chain 4. Strengthen platforms 5. Strengthen quality control

MALI Lessons Learned 1. An interbranch organization can be an effective tool to improve the governance of the sector and strengthen the position of rice on the market 2. The strengthening of collaboration between the actors of the sector and the research allow one to adapt the results of the research to the concerns of actors 3. Technological innovations can improve the income of parboilers and respect the environment 4. The initiatives of institutional purchase can be opportunities for farmers to sell their stocks and promote the local rice 5. The existence of a combined market with remunerative pricing is a favorable condition for getting the producers to invest more in order to maximize their income (see case of seed producers Senegal) West Africa Lessons Learned 1. Strengthened in the position that the institutional purchase constitutes a growth market for the actors of the CVA rice 2. It is not possible to build an efficient business model in excluding banks that are accessible to family concerns (ex. Coris Bank, but not any) 3. It is important that FOs should be accompanied to diversify their markets and not just content themselves with the institutional purchases 4. The seeds can be managed as a CVA, but distribution should be diversified.

5. Inadequacy of technical skills of FOs to master equipment 6. There is a man-made technology which helps to strengthen the ecological production 7. Work on the improvement of the quality of the rice by welcoming a minimum of actions from producers of paddy Rice Commodity Group Lessons Learned 1. You can influence private actor to adjust embedded services (SFA/Sensemaker) 2. Private actors should learn from one another 3. There are a lot of challenges regarding packaging, not only technical purpose even more in relation to positioning of FOs (own brand versus grossist brand) 4. Focus on light, practical, flexible multi stakeholder actions (direct actors and banks) before talking about national interprofessions 5. Reconfirmation of enormous" from importance of parboiling; also in Burkina 50% of production is parboiled).

6. EA needs other models than WA as rice and paddy prices do raise in the season/year in EA + Congo

Actions to achieve 1. On the institutional purchase: Development of a master plan, taking account of the experience of other countries (Senegal, Burkina), the involvment of banks, advocacy for institutionalizing 2. On the research: development of a strategy for collaboration between the PNPR and programs of research rice 3. On the interprofession: stimulate the emergence of a rice interprofessional organization before the end of the 1st quarter 2016 4. Sharing of mission: restitution on the exchange visit with the CA of the PNPR in September 2015 5. Broadcasts of technological innovations: to define, p. e. visit to the female parboilers of Burkina 6. Development of a business model of: envisage how to 'duplicate' the experience of CORIS Bank in San

Key Elements/ new for new program 1. Develop an optimal organizational model for the economic viability of parboiling centers promoting the safeguard of private initiatives 2. Set up a mechanism for financial education in collaboration with banks which proposes rates accessible to actors of CVA 3. Institutionalize the institutional purchases with the producers with a quota system and diversification of markets (private actors) 4. Develop business models including the banks sensitive to EF 5. Carry out a study on the market for the distribution of seeds 6. Better understand the initiatives of parboiling to articulate/connect to actual parboiling centers

Actions to achieve 1. Visit to Tanzania (+ Uganda ??? ), RDC 2. SRP - share elements on 'healthy' rice 3. Look for similar bank experiences as CORIS in EA ( Nairobi Conference) 4. Identify/Refine investment files for Kampani (possibilities for seed business Anambe, compost business Anambe, franchise model parboiled rice, center of finishing parboiled rice ...

5. Continues to promote, sharing, exchange (Yammer, ediscussions)

EXPECTED SUPPORT BY RICE COMMODITY GROUP HO UG XX Mali WA WA Mali Mali TZ CO CO CO UG UG UG -

Help with adding value to rice husks Reflect on a competitive business model for female parboilers Exchange visits every 2 years to improve the experiences Promotion of exchange visits between regions (VECO Empower centers for seed conditioning to professional economic unit Support of Kampani for distribution center of parboiled rice (finishing, packaging, distribution) Strategic information on the international rice (statistics etc. ) Capacity building in Business Plan Christ to visit Tz to help fine tune the business model, to develop agrifinance model Training on the quality of the rice Guarantee fund Connection of the CECAFEP to other financial institutions Product output tracking from milling machine Computerized performance program Translations of documents eng-french-english

The Evaluation