Farmer Field Book for ISLA Vietnam

Farmer Field Book for ISLA Vietnam

IDH’s landscapes programme, ISLA, works together with government, business and civil society to improve livelihoods and contribute to economic development while minimizing environmental harm. One of the focus regions is the Central Highlands region in Vietnam. To gain a better understanding of the effects of its interventions on farmers, industry and landscapes, rigorously collected data at farm level is required.

IDH and the implementing partners in Vietnam use the Farmer Field Book (FFB) methodology to allow rigorous monitoring & evaluation for the ISLA programme. Agri-Logic has developed special software functionalities for this programme and supported the training of field staff. We also perform a large part of the data analysis and reporting of results.

The FFB approach for ISLA includes reports at four levels: the individual farmer level, the farmer group level, the company level and the ISLA programme level. The first set of reports was delivered in July 2017, covering the crop year 2016-2017. The programme level reports can be downloaded below. The reports cover topics such as farm economics of different production systems, toxic loading, carbon footprint, farm economic and agronomic performance and assessment of production practices’  influence on productivity and profitability.

ISLA Vietnam Farmer Field Book analysis 2016-17 (IDH & partners)
ISLA Vietnam Farmer Field Book analysis 2016-19 (IDH & partners)
Cocoa sustainability management Nigeria & Ghana

Cocoa sustainability management Nigeria & Ghana

The cocoa sector is constantly considering sustainability. Low quality and low yields are a continued focus. Livelihoods, poverty, nutrition and education require attention. Most large chocolate makers have committed to sourcing 100% certified as sustainable in 2020. Many of these end buyers require increased volumes of certified cocoa, while considering their impact targets beyond 2020. All international traders and several local exporters have partnered with these large chocolate brands for sustainable impact.

Through our consulting branch in Nigeria, we support implementers throughout West Africa in designing the project objectives, organization structure, traceability procedures and budget. We are working as a project liaison monitoring progress and impact. We have analysed the project baseline, and are monitoring progress. We identify any project risks that might affect certification status, our outreach targets and our credibility. We look for opportunities to increase impact.

We integrate sustainable impact with commercial objectives. Since 2016, we have supported our clients and partners who have reached out to a significant number of farmers across West Africa, and the numbers and impact keep expanding annually. UTZ certification was obtained, and the field presence is leveraged to increase impact on livelihoods.

Coffee export capability Burundi & Rwanda

Coffee export capability Burundi & Rwanda

TWIN in partnership with Trade Mark East Africa (TMEA) implemented a two year project to strengthen export capabilities of twenty coffee cooperatives in Rwanda and Burundi with a specific focus on supporting cooperatives in: attaining certification, increasing access to Specialty Coffee markets, improving quality of the coffee produced and developing a traceability programme for coffee grown by women.

This export capabilities study identifies actors, value addition, financial analysis, market demands and the enabling environment. We have assessed the export capability of each of twenty coffee cooperatives on a range of indicators, leading to a segmentation. Furthermore, we identified general trends in export opportunities and challenges for both origins.

Even though Burundi has very high quality coffee according to buyers, there are still a lot of basics that need to be covered to be able to market the coffee successfully. Major challenges still exist in logistics, speed, traceability, reliability of pre-shipment samples, communication and marketing.

Rwanda is seen as well-organised and it is a coffee of good quality, there are certain constraints put forward by the buyers with regards to the marketing of the coffee. Flavour is not as unique and other differentiation is needed to compete in the specialty segment. Cooperatives are not always able to provide reliable pre-shipment samples and have limited knowledge of the market and pricing.

Coffee export capability assessment Burundi & Rwanda (TWIN-TMEA)
Expected Impact of Fertilizer Investment in Nigeria

Expected Impact of Fertilizer Investment in Nigeria

For an international impact investor, Agri-Logic developed a point of view on the potential development impact of investment in fertilizer in Nigeria.

With 34,000,000 hectares of arable land, Nigeria has the potential to be an agricultural powerhouse. Despite this, farmers constantly struggle with low yields and low product quality and the country is still a large importer of food and food products. Current average application rate of fertilizer in Nigeria is estimated at 11 kg/ha while recommended fertilizer application rates are ~130 kg/ha. Increased fertilizer application rate could be of major advantage in improving production quality and quantity, thereby enabling sustained productivity growth. Other commercial opportunities could also be derived along the fertilizer value chain.

Agri-Logic estimated impact based on a representative basket of cassava, maize, and tomatoes; three major crops in Nigeria. A literature review on fertilizer application for these crops provided useful information on impact potential in production quantity and income as a direct result of increased fertilizer use at recommended application rate. Field surveys with farmers and other stakeholders gave an understanding of the reality of fertilizer application and factors affecting its use, prices and availability across the country.

The study provided an overview of the current fertilizer market in Nigeria, as well as its potential impact on yield, livelihoods and food security. The client was provided with an estimated impact on smallholder farmers’ income as well as food self-sufficiency for the population of Nigeria. We also indicated risks and success factors to be monitored in implementation.

Farmer segmentation for optimised service delivery

Farmer segmentation for optimised service delivery

By assignment of IDH Sustainable Trade Initiative, Agri-Logic conducts 4 farmer segmentation studies to optimise service delivery by Supply Chain Management companies to farmers, in order to increase the impact at farmer level.

Many supply chain companies offer services to smallholder farmers to improve productivity, quality and profitability at farm level, and to secure their supply. The effect of these services at farm level is mixed and there is a strong desire to improve their performance. One way to do this is to group farmers in segments based on household and farmers characteristics. These segments are likely to have differing needs, development potential, ambition levels and investment rationales. When these segments are defined, services could possibly be better targeted and return on investment of service delivery could be improved.

The objective of this project is to gain experience with farmer segmentation exercises and to share the learnings of these experiences to support supply chain partners and IDH to segment farmers. Additionally, we aim to develop tailor-made services and products in order to increase the return on investment for supply chain partners, farmers and organizations that are co-investing in service delivery models. Four segmentation case studies are performed with coffee and cocoa supply chain partners in West- and East-Africa.

The envisioned results are:

  • For each segmentation case study: identification of farmer segments, their defining characteristics and recommended tailor-made service packages
  • A set of guidelines on how to monitor effects of service packages on different farmer segments and knowing when to change a strategy
  • A framework for organisations on how to realize effective farmer segmentation to optimise service delivery
African Coffee Investment Review

African Coffee Investment Review

Via its Global Coffee Platform (GCP), the IDH Sustainable Trade Initiative seeks to make a significant impact on the global coffee sector. Africa features heavily in it’s strategy as an under-utilized source of significant new coffee volumes to meet growing demand. Ironically, much of the coffee and sustainability investments over the past 10-15 years have taken place in Latin America and Asia. Africa has just 4% of global certified sustainable supply (against around 10% of total supply), yet the needs for investment in coffee on the continent are arguably greater than elsewhere.

Agri-Logic was asked to conduct in-depth coffee sector studies for 9 African origins: Angola, Burundi, Cameroon, Ethiopia, Ivory Coast, Kenya, Rwanda, Tanzania and Uganda. These studies are used to develop the GCP’s African investment strategy, and feed into the establishment of an African Coffee Facility by the African Development Bank (AfDB) and the Inter-African Coffee Association (IACO). Investment opportunities in each origin are investigated, including modelling of their impact and return on investment at different levels of the value chain.

We developed a dynamic sector model allowing to analyze large volumes of data from different sources. This model is fed by a structured database and allows insight into a sector’s performance compared to user-defined global benchmark origins. The study has been presented at the Africa Coffee Facility inception meeting in Abidjan to a public of regional coffee sector representatives and staff of IACO and the AfDB, as well as during the Global Coffee Platform workshop in Addis Ababa.

African coffee sector investment opportunities – summary (GCP)
African coffee sector investment opportunities – country report Angola (GCP)
African coffee sector investment opportunities – country report Burundi (GCP)
African coffee sector investment opportunities – country report Cameroon (GCP)
African coffee sector investment opportunities – country report Cote d’Ivoire (GCP)
African coffee sector investment opportunities – country report Ethiopia (GCP)
African coffee sector investment opportunities – country report Kenya (GCP)
African coffee sector investment opportunities – country report Rwanda (GCP)
African coffee sector investment opportunities – country report Tanzania (GCP)
African coffee sector investment opportunities – country report Uganda (GCP)
Impact assessment UTZ coffee Vietnam

Impact assessment UTZ coffee Vietnam

JDE Coffee is one of the largest buyers of UTZ Certified coffee world wide. Together with the Dutch Ministry of Economic Affairs the company co-funded a study to investigate the effects of training and UTZ certification on coffee farmers in Vietnam. Given their substantial commitment to the UTZ Certified programme as well as its significant investment in the DE Foundation, it wanted to know whether buying of certified coffee, as well as the activities of the DE Foundation have an impact on farmers.

In collaboration with Wageningen University and Research, Agri-Logic designed a scientifically rigorous study using propensity score matching to create comparable groups of programme and non-programme farmers. By relying on a so-called difference in difference approach we were able to demonstrate causality of effects of training frequency, training and trainer quality as well as UTZ certification.

The main findings of this study with robusta coffee farmers and UTZ certification in Vietnam are that:

  1. Certification in this study primarily leads to access to training, uptake of management tools such as record keeping and investment planning, but not to significant improvements in farming efficiencies nor to better farm economic outcomes. Also, among the Vietnamese farmers in this research, UTZ certification by itself does not sufficiently tackle the main challenges such as over-irrigation and excessive fertilizer applications that the coffee sector is facing; and
  2. Improved farm management is primarily and positively affected by the amount and to a lesser extent by the quality of training that farmers have received.
The Sustainable Coffee Conundrum (DE Foundation)
Farmer Field Book implementation Ghana

Farmer Field Book implementation Ghana

Sustainable Management Services Ghana (part of Ecom group), a number of its chocolate manufacturing clients and IDH, The Sustainable Trade Initiative run a large scale sustainability programme in Ghana targeting tens of thousands of cocoa farmers. The programme aims to improve their productivity, profitability and in turn enhance farmer loyalty. All parties expressed a need to gain better insight into farm and farmer performance and an enhanced understanding of the programme’s effects.

To meet the requirements, Agri-Logic is assisting Ecom and its partners to implement the Farmer Field Book. Close to 1,075 farmers across 43 districts keep daily records of all their activities, investments and outputs on their cocoa farms. This information is collected every 2 weeks and digitised in the FFB software. Every year each farmer receives a detailed agronomic and economic profit & loss statement as well as a group report that details the performance of each farmer versus that of his/her peers. Agri-Logic trains Ecom staff on implementation of the FFB and supports the implementation by analysing the collected data at different levels. At company level a sophisticated report is made each year that details the effects of Ecom-provided training and inputs to farmers on e.g. productivity, profitability and loyalty. Data from Ghana is then merged with FFB data from other cocoa-producing countries for meta analysis of the IDH cocoa programme.

Results so far:

  • 64 Ecom management and staff trained in FFB implementation
  • Same staff trained on farm level data analysis
  • 1075 farmers keep records on a daily basis
  • Collection of the third year’s data currently on-going
Impact of Common Code for the Coffee Community

Impact of Common Code for the Coffee Community

In 2009 we were contracted by the 4C Association to conduct an impact assessment of the the implementation of its code of conduct in Vietnam, Uganda and Nicaragua. In 2014, 4C asked to revisit the same farmers in Uganda and Vietnam and conduct a similar study to identify and quantify long-term effects of its programme.

We designed an impact study for this that uses a difference-in-difference approach and relies on Propensity Score Matching to create realistic counter-factual scenarios. This allows us to answer the question: what would have happened to a farmer if s/he had decided not to join the 4C programme? Two experts from Wageningen University and Research provided extensive feedback on the research design and interpretation of results.

Farmers that are part of a 4C verified supply chain have more access to training. For farmers in Uganda, we confirm that 4C verified farmers are more efficient financially. Productivity has not changed significantly, but efficiency of production as measured by the production cost per Mt green coffee, has. In Vietnam, an origin where productivity is extremely high, we did not observe additional increases in productivity as a result of being 4C verified. Of the changes in economic and agronomic performance that are observed, none correlates with application of GAP training.

On the social dimension we again see notable effects in Uganda, but less so in Vietnam. A clear link between being 4C verified and an increase in dietary quality was confirmed for Uganda. In Vietnam we only see differences in wages paid to workers, which show a stronger and significant increase over time among 4C verified farmers.

Farmers that are part of a 4C verified supply chain have more access to training. For farmers in Uganda, we confirm that 4C verified farmers are more efficient financially. Productivity has not changed significantly, but efficiency of production as measured by the production cost per Mt green coffee, has. In Vietnam, an origin where productivity is extremely high, we did not observe additional increases in productivity as a result of being 4C verified. Of the changes in economic and agronomic performance that are observed, none correlates with application of GAP training.

On the social dimension we again see notable effects in Uganda, but less so in Vietnam. A clear link between being 4C verified and an increase in dietary quality was confirmed for Uganda. In Vietnam we only see differences in wages paid to workers, which show a stronger and significant increase over time among 4C verified farmers.

Environmental performance is hardly affected by 4C. Only in Uganda did 4C verified farmers take significantly less new land into production for coffee. Other environmental aspects were not impacted in either country.

Business case certified sustainable coffee DR Congo

Business case certified sustainable coffee DR Congo

ELAN DRC is a large scale value chain programme funded by DFID and implemented by Adam Smith International. For its coffee value chain programme in the Kivu’s, Agri-Logic was contracted to conduct a business case analysis ofor growing and exporting certified sustainable coffee.

Over a two-week period we conducted interviews and focus group discussions with coffee farmers, local exporters and cooperatives. Further interviews with international traders, coffee roasters, NGOs and certification agencies were held to collect sufficient data.

Analysis showed a reasonable business case for organic certified coffee, possibly in combination with Fairtrade, but only if the latter could be marketed sufficiently well. Our modelling showed that implementing of mainstream standards like UTZ Certified, 4C and Rainforest Alliance in this sector does not yield significant economic benefits for farmers and exporters alike. This is due to low volumes of coffee per farmer  and an above average quality profile, the buyers of which usually go for more demanding standards. As a result the ELAN DRC programme is currently rethinking its coffee strategy.