Farmers FightingPoverty

Entrepreneurship in Development

2011annual report

Publication details

Content: AgriterraEditorial: Opraappers Communicatie b.v.Photography: AgriterraPhoto cover: Debby Gosselink

Ordering: copies of this report are available through www.agriterra.org; tel: 0031-26-4455445; e-mail: communicatie@agriterra.org.

The annual report Farmers Fighting Poverty 2011 is an Agriterra publication.

Extracts from this report may be published provided permission is first obtained from Agriterra and the source is duly attributed.

© AgriterraArnhem, September 2012

Table of contentsForeword 3

Agriterra in 2011 4

Sowing the seeds for growth and development 6

Dairy processing along Dutch lines 7

Engaging financiers’ interest in cooperatives 8

Agriterra around the world 10

Encouraging farmers’ groups to join forces 12

Visiting the farms of Vietnamese colleagues 14

Knowledge transfer essential for progress 14

Beekeepers forge an alliance in divided country 15

Giving farmers a voice in agricultural policy 16

Financial report 2011 18

Cooperatives have a long-term orientation and are geared towards sustainability. The focus lies on the challenges that are confronting the world of agriculture: climate change, population growth, changes in consumer behaviour and depletion of fossil fuels. In order to face up to these challenges, it is essential that farmers pool their resources.

Cooperation leads to new ways of thinking, innovation and understanding between stakeholders. It is a prerequisite for growth. Cross-border collaboration is necessary in a globalising world. Through Agriterra the Dutch agricultural and horticultural organisations are collaborating with colleagues in developing countries. In the period 2007-2010 Agriterra reached 4.5 million farmers in the “Farmers Fighting Poverty” programme. These farmers belong to organisations

and cooperatives with a total of 20 million members. In 2011 Agriterra focused its efforts on achieving tangible economic benefits for these members. As a result greater interest and commitment to cooperate with Agriterra were shown by Dutch agricultural organisations and the agribusiness sector.

The next step will be geared more towards risk management, sustainable production and the pooling of resources within the food supply chain. In order to become ever better at fulfilling our important role as food producers, farmers’ organisations must join forces in the search for new and innovative ideas.

Albert Jan MaatPresident of Agriterra and LTO Nederland (Dutch Organisation for Agriculture and Horticulture)

Strengthening the position of farmers through cooperation is key for development

The Dutch agricultural sector is among the largest in the world. This position has

been achieved because farmers cooperate – not only with each other but also with

other stakeholders in the supply chain. Cooperatives open up new markets and

provide opportunities for collective investment. By pooling our efforts and resources

we strengthen our market position, which is a prerequisite for growth for the

cooperative and the individual farmer.

Agriterra | 3

Ugandan farmers win business plan award Mbadifa Enterprises Ltd of Uganda won the Agriterra business plan contest for 2011. The competition challenges organisations in developing countries to produce a good business plan, with the ultimate aim to bring them into contact with banks and investors that are willing to support those plans. Mbadifa will use the first prize of €15,000 as start-up capital for a shop selling agricultural inputs such as seed, fertilisers and disease control products. This will enable the 10,000-plus members of the national farmers’ organisation to improve their production of vegetables, fruit and seeds. The jury commended the business plan for its focus, thorough market research and realistic growth expectations.

Worldwide deal for Peruvian cooperative Coopain Cabana, an agricultural cooperative based in southern Peru, has signed a worldwide contract with Specialty Commodities Inc (US). Under this deal, Specialty (a supplier to Kellogg’s and Nestlé) will buy organic quinoa from the Peruvian cooperative. Quinoa is a “pseudo-grain”, rich in proteins, vitamins and minerals, and it is also gluten-free. Agriterra advises Coopain Cabana on its marketing and promotional activities. Financial support from Agriterra enabled Coopain Cabana to take part in national and international trade fairs, where the initial contacts for this valuable grain deal were made.

Successful negotiations yield more subsidiesAgriterra’s support to advocacy organisations in Moldova pays off. By improving its negotiating strategy, the National Farmers’ Federation (NFFM) has secured substantially more subsidies for its members. The NFFM organised two press conferences to voice its criticism of government subsidy schemes. This led to meetings with the Prime Minister, which ultimately resulted in Moldova’s total agricultural subsidy funding being increased by MDL 150 million (around €9.5 million).

Agriterra in 2011

Agriterra | 4

Philippine farmers join forces to boost food security The EU-funded Philippines’ Farmers for Food Programme proves to be a successful driver of greater food security in the Philippines. Agriterra brought together four agricultural organisations who started to work closely together. As a result more than 200 clusters of local farmers are now sharing and expanding their knowledge of production, processing and marketing. The collaboration has also given rise to stronger farmers’ organisations which are better able to represent the interests of the farming community, resulting in increased production of vital foodstuffs in the Philippines.

Congo enacts its own agricultural legislationThe Democratic Republic of Congo (DCR) has had specific agricultural legislation since May 2011. This Code Agricole enacts a set of fundamental principles relating to agriculture. It protects the 70% of the DRC population who rely on farming for their livelihood. The legislation is the result of vigorous lobbying led by the provincial farmers’ federation, FOPAC NK. This organisation has flourished with the advice and financial support from Agriterra. Inspired by this success, a national umbrella organisation for DRC farmers, CONAPAC, has now also been established with further support from Agriterra.

Jordanian women’s organisation becomes advisor to King AbdullahKing Abdullah of Jordan is advised on agricultural policy by around twenty agricultural organisations. Since 2011 this select group of advisors has been joined by the Specific Union of Women Farmers in Jordan. This is the first organisation in the Arab world to have been founded by and for rural women. With its help, and by organising training courses, women are able to start their own businesses. Agriterra is funding this training and assisting in activities designed to raise the profile of the Specific Union.

Agriterra | 5

Sowing the seeds for growth and developmentThe agricultural sector is the engine that drives the economy. Entrepreneurial farmers and growers foster development and play a crucial role to fight problems of hunger and poverty. If they do not manage to organise themselves, they will remain powerless on a political level and will be economically disadvantaged. Agriterra seeks to ensure that farmers’ organisations and cooperatives in developing countries are strong enough to help their members to establish a strategic position in the market and to represent their interests. This does not only mean providing financial support but, above all, facilitating the transfer of knowledge. Assistance and advice are provided in the field by agripoolers – Dutch farmers

and agricultural specialists who share their knowledge and experience. By strengthening farmers’ organisations, Agriterra wants to enable them to teach farmers how to run their farms better and stimulate their entrepreneurship by improving product processing and marketing. Strong, healthy farmers’ organisations and cooperatives improve the entrepreneurship of their members. They establish relationships with governments and other national and international players in order to achieve demonstrable benefits for their members. They improve the income position and future prospects of their members. This is why Agriterra supports them in realising their growth ambitions.

board of directors

management

department of support and quality

department of financial

administration

team agribusiness

team grass-roots entrepreneurship

team advocacy and innovation

Our foundersAgriterra was founded by a number of organisations representing the rural population and agricultural sector of the Netherlands. These organisations help Agriterra to provide their colleague organisations in developing countries with the skills that are needed for organised cooperation and entrepreneurship. The organisations are:

OrganigramAgriterra’s activities are built around three key areas in which we wish to achieve results. These areas are managed by three teams. The results are clearly defined and each team has a specific remit with regard to numbers of clients, participating farmers and how they should strengthen the organisations.

Our partnersAgriterra collaborates with other “agri-agencies” within AgriCord with research and educational institutions and other non-profit organisations in Agri-ProFocus. It is by cooperating with others that Agriterra is able to offer the best possible support to farmers’ organisations in developing countries and thereby increase its impact.

Rien Geuze (agribusiness advisor in Kenya):

“Running a business is in the Kenyan blood. Dutch

agricultural know-how can prove really useful in translating wishful thinking into a realistic business plan. The problems are the same as in the Netherlands,

only bigger.”

Ninoska González Herrera (liaison officer):

“Through our farmer-to-farmer approach, farmers see with

their own eyes how colleagues in other countries are working

and gain better insight into how they can improve their

own production, processing and selling activities.”

Kees Blokland (managing director):

“What we know, is available to everyone. All our activities, expenditure and results can be followed on the internet (www.agro-info.net). This puts us at the forefront of current efforts to improve the transparency of

aid flows.”

Quality Farmer-to-farmer

Knowledge transfer

Cooperation

Transparency

EntrepreneurshipAdvocacy

Agriterra

Agriterra | 6

Actually Jan Drenthen, senior project manager at Friesland- Campina, had no connection with Africa. And yet when Agriterra asked him to join them on a trip to Kenya, on account of his experience with dairy products, he said yes. Now he is enthusiastically and intensively involved in business development at Kiambaa Dairy. When Jan Drenthen first visited the dairy cooperative two years ago, Kiambaa had the ambition of setting up its own factory. The first things to be considered in taking the cooperative to a higher level were internal organisation and the business plan. Together, Agriterra and Kiambaa Dairy drew up an action plan aimed at improving the quality of the milk, hygiene and logistics. For example, they considered where the milk collection points could best be located in order to ensure that the milk can be collected on time even under the most challenging conditions.

Kiambaa Dairy turned out to be too small to have a factory of its own. Consequently a merger has now been initiated with the nearby Ndumberi cooperative, with advice from Drenthen. The expertise and knowledge of dairy products that Dutch agripoolers such as Drenthen bring to the table are serving Kiambaa Dairy well. “I keep track of developments during advisory trips to Kenya and from a distance via e-mail and Skype. That way I find out what problems they encounter and where there is room for further improvement. Agriterra sees to it that we are able to move around freely on our working visits, that nothing happens to us, and that we are properly insured. As a result we can carry out our work there effectively.” And when the agripoolers depart, Agriterra makes sure that the work continues. So the process does not grind to a halt. Agriterra assists the people from Kiambaa Dairy to implement the advice, providing training on such issues as production improvement, and supporting them to obtain funding. In this way Agriterra enables the cooperative to realise its ambition and improve the farmers’ standards of living.

Jan Drenthen: “Agriterra makes the difference. Not by giving money, but through knowledge transfer and consultation on economic development.”

Dairy processing along Dutch lines

Project description:• Adviceoninternalandexternal

organisation; • Qualityimprovementthrough

knowledge transfer

Agriterra | 7

Engaging financiers’ interest in cooperatives

Farmers in developing countries are

joining forces in order to strengthen

their position in the marketplace.

They need to pool their resources and

scale up their activities in order to

create market power. In many countries

cooperatives have difficulty gaining

access to credit for investments.

Although there is growing interest in

agriculture within the financial sector,

the cooperatives have not as yet quite

succeeded in translating their ambitions

into bankable business plans. Agriterra

assists these cooperatives in realising

their growth ambitions.

Agriterra | 8

Establishing a solid business planAll cooperatives that want to work with Agriterra are submitted to a business analysis. “We look at the organisation, its management (financial and general) and its relationship with the members. In addition we study the relationships with other parties, such as banks, suppliers, customers and other entrepreneurs. We analyse the business case with each client and draw up an action plan that will result in a business that is healthy and ripe for investment”, says team manager agribusiness Cees van Rij. “Furthermore we act as an intermediary in dealings with banks and investors.”

A proactive search for ambitious cooperatives with growth potential resulted in 23 contracted clients in 2011. The large majority of these are located in Kenya, Uganda, Ethiopia and Peru. They are mainly engaged in the production of dairy produce, coffee and cocoa, oilseeds and maize. Agriterra also has a number of savings and credit cooperatives in its client portfolio. The requested total funding of business plans is in excess of €1 million.

Sharper focus maximises return on investmentTeam agribusiness directs 80% of its funding and manpower at Uganda, Kenya, Ethiopia and Peru. The business climate in these countries is a determining factor in this strategy. Limiting the number of countries results in a sharper focus, more specific knowledge and a more extensive network. In 2011 Agriterra has appointed agribusiness advisors in Kenya and Peru. These two advisors are able to provide the clients there with frequent support and specific know-how, thereby stimulating rapid progress. In 2012 Agriterra will also engage agribusiness advisors in Ethiopia and Uganda.

Clear goals Agriterra’s clients have made promising steps in 2011. “We shall find out in the near future whether the participating businesses will manage to realise their growth ambitions”, says Van Rij. “The goal is that by 2014 our clients will have achieved the following business objectives:

1. sales growth of at least 25%;2. attract an average of €250,000

external capital per business;3. growth of at least 25% in the number

of members or shareholders;4. at least 120 new jobs.”

2011 in figures• Totalnumberofcontracted

clients: 23 • Contributionpledgedby

Agriterra: €1.2 million• Contributionallocatedby

Agriterra: almost €1 million• Numberofproducersreached:

almost 74,000 (27% of them women)

Common features of our agribusiness clients• Atleast1,000registered

producers.• Engagedinpurchasing,

processing, selling and/or financial services.

• Demonstrableandrealisticgrowthambitions accompanied by a need for advice and investment.

Extra capital drives new growthOro Verde (Spanish for “green gold”) is a farmers’ cooperative operating in North-Eastern Peru. Its 1,046 active members mainly produce coffee and cocoa. Agriterra conducted a business analysis to identify the cooperative’s strengths and weaknesses. Oro Verde then received support in drawing up a medium-term financial plan (2011-2016) and a marketing plan for ground coffee. The initiative proved successful, with Oro Verde subsequently receiving a substantial €750,000 injection of working capital from Banco Continental. And the improved marketing activities resulted in space being secured on the shelves of the Peruvian supermarket chain Plaza Vea.

Agriterra | 9

Agriterra assists farmers and agricultural

organisations around the world in their fight

against poverty. This map shows which

countries Agriterra is active in (in orange)

and where remarkable results have been

achieved.

HDI: the United Nations’ Human Development Index (HDI) measures average life expectancy against the birth rate, illiteracy, education and standard of living in a given country or region. The size of the index number represents the position in the world ranking.

By way of comparison:The NetherlandsHDI: 3Population: 16.7 millionLife expectancy: 80.7

Agriterra around the world

Bolivia

HDI: 108Population: 10 millionLife expectancy: 66.6Result:•Establishmentoffirst

commercial school for organic coffee farmers

Peru

HDI: 80Population: 29.4 millionLife expectancy: 74.0Result:•Quinoafarmerssign

worldwide deal with Specialty Commodities

•Andeanfarmers’alpacawool makes its debut on the international fashion scene

Agriterra | 10

DR Congo

HDI: 187Population: 67.8 millionLife expectancy: 48.4Result:•Introductionof

agricultural legislation •CONAPAC(national

farmers’ umbrella organisation) established

Kenya

HDI: 143Population: 41.6 millionLife expectancy: 57.1Result:•Prosperingofdairy

cooperatives

Uganda

HDI: 161Population: 34.5 millionLife expectancy: 54.1Result:•Mobilewashingunits

boost coffee farmers’ incomes

Ethiopia

HDI: 174Population: 84.7 millionLife expectancy: 59.3Result: •Oilseedproduction

increased and improved through training in cultivation and harvesting techniques

Niger

HDI: 186Population: 17 millionLife expectancy: 53.8Result:•Establishmentofgrain

banks increases food security

Jordan

HDI: 95Population: 6.3 millionLife expectancy: 73.4Result:•TheArabworld’sfirst

women’s union with open membership for rural women leasing land

Moldova

HDI: 111Population: 3.5 millionLife expectancy: 69.3Result:•Lobbyingboostsfarm

subsidies by E9.5 million

Vietnam

HDI: 128Population: 88.8 millionLife expectancy: 75.2Result:•Improvedcultivation

and negotiating techniques bring increased mushroom output and 30% higher price

Nepal

HDI: 157Population: 30.5 millionLife expectancy: 68.8Result:•Betterteapricethanks

to good negotiation and improved quality

Agriterra | 11

Initiatives launched by cooperatives and individual

farmers have a greater chance of success if farmers work

together. Joint purchasing of agricultural inputs, increased

production, access to market information and joint selling

enable entrepreneurial farmers to improve their incomes

and give rise to sustainable farming practices. Agriterra

works in partnership with farmers’ organisations with the

aim of reaching their grassroots level and strengthening

cooperation within groups and optimising the services

provided to the members.

Encouraging farmers’ groups to join forces

Better negotiation delivers higher tea pricesMembers of the Tea Sector Service Centre (TEASEC) in Nepal underwent training in negotiating skills and improvement of tea quality in 2011. These training programmes, funded by Agriterra, delivered immediate benefits. Thanks to better tea quality and negotiating techniques, farmers were able to command a higher price. As a result they earned 10 to 15% more per kilogram of tea than in 2010.

Agriterra | 12

Investment in knowledge boosts mushroom growers’ profitsIn Vietnam the demand for mushrooms is high, production is low, and product quality is poor. Mushroom cultivation is an interesting area for farmers since it requires relatively little land. Agriterra brought the farmers’ cooperative Ninh Binh Cooperative Alliance (NBCA) in touch with two Dutch mushroom experts. Having examined the production methods, they offered the mushroom growers practical tips on how to increase their yields and product quality. Armed with this new knowledge, six producer groups within NBCA have succeeded in increasing their output by 61 tons and negotiated a 30% higher price for their mushrooms.

Encouraging farmers’ groups to join forces

Better services to groups“There are a number of basic principles that we apply in our work”, says team manager grass-roots entrepreneurship Frank van Drosten. “Agriterra supports organisations so they can improve the services provided to their members. For example, the formation of groups must result in better incomes for the farmers. Working in groups also strengthens leadership. This in turn improves the groups’ ability to represent the interests of their members.”

Farmers’ group target comfortably exceededBy the end of 2011 our clients reached a total of almost 12,000 farmers’ groups, which is around 3,500 more than at the beginning of the year. We have therefore exceeded our target figure of strengthening 2,500 groups.

Tailoring support to clients’ stage of developmentAgriterra works in partnership with the groups to gradually develop their entrepreneurship, tailoring its support to the stage of development that they have reached.

The majority of the groups focus on increasing their production and work with market players on joint selling. Agriterra supports them in conducting market studies, improving product quality, and strengthening commercial relations and cooperation with key players in the value chain.

Over the next few years Agriterra will continue to concentrate its efforts on increasing production and improving market access.

Economic benefits of group formationAgriterra’s team grass-roots entrepreneurship uses a derivative of the FAO People’s Participation Programme to teach agricultural organisations how they can stimulate their members’ economic development initiatives by forming groups. Members share a common interest and have an incentive to cooperate and support one another. Examples range from joint purchase of animal feed or seed and the procurement of loans to collective selling of agricultural products. Other activities conducted at group level are knowledge generation and the acquisition of agricultural inputs. Agriterra advises its clients to nominate coordinators who will assist the groups. These are volunteers from the groups who provide a link between the agricultural organisation and the groups and ensure that the right services are provided.

Stage of development

Group formation and strengthening

19%

Increasing production 27%

Marketing/market access 35%

Joint economic development initiative

19%

Total 100%

Access to credit 11%

2011 in figures• Numberofnew/strengthenedgroups:

approx. 3,500• Totalnumberofclients:53• ContributionpledgedbyAgriterra:€5.2 million• ContributionallocatedbyAgriterra:€4.4 million• Numberofproducersreached:

more than 255,000 (28% of them women)

Agriterra | 13

Knowledge transfer essential for progress

Visiting the farms of Vietnamese colleagues

In her everyday life, Grieta Gootjes is a pig farmer and chair of the women’s farmers’ group ‘Vrouw en Bedrijf’. Because of this background she was asked to join a visit to Vietnam and share her experiences with the members of Quang Tri Cooperative Alliance (QTCA). For a number of years now, QTCA has been receiving grants aimed at strengthening its member cooperatives’ position in the market. However, insufficient progress was

made. Consequently Agriterra decided to visit QTCA and provide advice on market analysis and business planning. One of the aspects examined was the internal organisation, and in particular the need to take the interests of various members into consideration when setting up a cooperative at local level. To inform the local farmer about market developments Agriterra suggested several useful solutions. “Using our experience from the Netherlands, we give the local farmers practical tips that will boost production. Like castrating piglets at five days of age rather than waiting for three weeks”, explains Gootjes. “We are,

after all, colleagues. And even though the situation is different, we speak the same language and see the possibilities for moving forwards. That is why the farmer-to-farmer contact that Agriterra facilitates is so important.”

Grieta Gootjes: “Agriterra facilitates farmer-to-farmer development cooperation.”

Project description:• Promotionofstudygroups• Practicalsupportforthelocal

groups

Project description:• Improvinglocalfarmers’

standards of living through knowledge transfer

• Adviceoninternalorganisation

Joseph Nkole is national coordinator of the Cotton Association of Zambia (CAZ), which represents the united interests of cotton farmers in Zambia since 2005. For example, CAZ succeeded in negotiating a better price for cotton in 2007. “But we wanted to do more for the local cotton farmers and reach out to more farmers. The farmers had very limited knowledge

of ways in which cotton production might be improved. Consequently CAZ got in touch with Agriterra and a partnership was duly forged”, says Nkole. “Together, we looked for the areas to be improved.” One such area is the need to increase the incomes of local farmers by improving production and market knowledge. Agriterra provides the funding to train field

workers and coordinators, who are setting up study groups where farmers learn how to increase yields, cultivate and improve the soil, and make proper use of pesticides. The groups are also trained in negotiating with traders and reading purchase contracts. “The selling price of cotton has risen by around 40% since this initiative began. In conjunction with improved

cultivation methods, average incomes have quadrupled from 2009 to 2011. Partly as a result of this, the cooperative was able to collect more membership fees. The revenues of CAZ rose by over 14% from €22,816 to €26,062. The financial services provided by CAZ brought substantial improvements in the standards of living of the cotton farmers”, says Nkole enthusiastically.

Agriterra | 14

Kees Veldkamp, a member of the Dutch Beekeepers Association (NBV), visited Bosnia-Herzegovina in November 2011 at the request of Agriterra. “The purpose of my visit was to advise beekeepers on how to set up an umbrella organisation to represent their interests. This is a country with professional beekeepers whose livelihoods depend on the honey harvest. Bosnia-Herzegovina consists of ten federal units (cantons), each with its own Minister of Agriculture and its own regulations. Also the beekeepers have organised themselves at federal level, which is far from ideal when it comes to lobbying and influencing policy at national level”, explains Veldkamp. Consequently the Union of Beekeepers

in Republika Srpska province (UBA) and the Beekeepers Association of Una Sana Canton (SPUSK) want to create an overarching umbrella organisation. This should give rise to greater uniformity within national policy, which is important for the future of the professional beekeeper. But how can this be achieved? The country is divided by religious and ethnic differences, with a war fresh in the memory. It is a question of being patient and showing great empathy in order to forge a dialogue between the different parties. As a “bee man”, Veldkamp speaks to representatives of the various associations. He uses his diplomatic experience as a former military attaché to bring the various parties to the table.

Veldkamp advises the beekeepers on organisational infrastructure, while Agriterra supports them with the practical tools that they need in order to get the organisation off the ground. “I am touched by the way the people are trying to overcome their differences. You might say that the bees are building a bridge between peoples”, says Veldkamp. “Agriterra’s intervention is enabling different ethnic groups to talk to one another again, and even to go on joint study trips.”

Joseph Nkole: “We are better organised and have more profitable cotton production

thanks to Agriterra.”

“Without Agriterra we would not have achieved so much. We are now busy trying to recruit more farmers into local cooperatives. This will strengthen their position in relation to traders, banks and local government.” In addition, CAZ is lobbying the government for greater market and price transparency, an improved credit position for farmers, and a guarantee fund. Joseph Nkole

expresses the hope that Agriterra will provide them with further assistance, based on the knowledge and experience from the Netherlands and from other cotton producer organisations around the world.

Beekeepers forge an alliance in a divided country

Kees Veldkamp: “Agriterra brings the people to the table.”

Project description:• CooperationbetweenDutch

and Bosnian beekeepers• Creationofaunitedpressure

group in a divided country• Organisationaladvice• Practicalsupportintheform

of computers

Agriterra | 15

More involvementCollective lobbying delivers rewards, both direct and indirect. The PGPP method enhances the representational and negotiating capacities of the farmers’ organisation concerned. This approach helps them to identify a position that is based on members’ input. Consequently the proposals receive broad support and the actual needs of the members are reflected.

A question of patienceLobbying requires a lot of time and patience. Agriterra supports the farmers’ organisations throughout this process. Agriterra encourages the organisations to build their lobbying agenda from the bottom up, thereby ensuring that their position is sufficiently strong so that their voices will be heard. In 2011 Agriterra identified organisations that were likely to exercise direct and specific influence on policymakers. At that time it was estimated that eight organisations could influence their national government’s policies. Five organisations succeeded in doing so in 2011, partly by virtue of their strong position within their own region and their extensive

national and/or international network. The aim is that by 2014 funding to the value of €35 million will be available to improve the income position of the local farmer.

Innovation strengthens farmers’ organisations“In order to survive, it is essential that farmers and their organisations continue to innovate. Constant innovation is needed to ensure food security and the farmers’ livelihoods. This is made possible by creating space for ideas and underpinning them with knowledge and money from within and outside the organisation”, says Van der Pasch.

Agriterra’s innovation policy is based on the People, Planet, Profit approach, which hinges on the sustainable production of food. These three pillars must be in balance in order to feed the world’s population, now and in the future.

Giving farmers a voice in agricultural policy

“Agricultural policy and the market influence

farmer development. If the farmers’ situation is

to improve, it is important that their voice should

be heard”, says team manager advocacy and

innovation Nellie van der Pasch. “This requires

good negotiating skills and representation

of as many farmers as possible. We support

advocacy organisations by providing training and

helping them to draw up a relevant advocacy

agenda using a method known as participatory

generation of policy proposals for advocacy

(PGPP).” This systematic approach combines the

needs of farmers with the knowledge of external

experts and translates these two elements into

policy proposals.

Agriterra | 16

2011 in figures• Fundsmobilised:€9.75 million• Totalnumberofclients:50• ContributionpledgedbyAgriterra:€3.6 million• ContributionallocatedbyAgriterra:€3.4 million• Numberofproducersreached:

more than 380,000 (59% of them women)

West African livestock farmers consulted on developmentRBM (Réseau Billital Maroobé) is an umbrella organisation representing West African and nomadic livestock farmers. Using the PGPP methodology, Agriterra is helping RBM to incorporate input from farmers into the lobbying agenda. In doing so, the organisation increases its support base both among the farmers and in dealings with governments and public organisations. Thanks to this lobbying work, livestock farming is now an established issue on

the strategic agenda of the Economic Community of West African States (ECOWAS). During implementation of the agricultural investment programme, RBM represents the nomadic livestock farmers’ interests at regional level within the ECOWAS working group and at national level in member states. This working group is currently also looking at the possibilities for investment in livestock farming within the ECOWAS action plan for 2011-2020.

Agriterra | 17

Financial Report 20112011: reorganisation and a new phase of Farmers Fighting PovertyFor Agriterra 2011 was, in several respects, a year of new beginnings. The restructuring undertaken within the organisation brought a sharper focus, which resulted in many changes. Agriterra focused more on entrepreneurship among farmers in developing countries and their organisations than in the past. In addition, the second phase of Farmers Fighting Poverty also brought changes, to which both Agriterra itself and its clients have had to adjust. Consequently the estimates given in the budget (drawn up in 2010) sometimes differ from the amounts actually reported.

Breakdown of expenditure by region (2011)

Breakdown of donations from sources other than the DGIS in 2011

Total amount: €1,575,504.00

Expenditure in 2011Agriterra contributed just over €9.75 million to various client projects in 2011. The clients themselves contributed approximately €6 million, giving a total spending of €16 million on projects within the Farmers Fighting Poverty programme.

Nearly three-quarters of the project funding went to agricultural organisations and cooperatives in Africa.

Latin America

International

Europe

Asia

Africa

Other donations

Investment assets EU Food Facility (2011)

IFAD (2011-2012)

PSO (2011-2012) DGD-TRIAS (RD2011)

AgriCord (Formin) (2011)

EU Paysans européens (2011-2012)

Bal

ance

shee

t(a

fter

app

ropr

iatio

n of

resu

lts)

Am

ount

s in

eur

os ASSETS 31-12-2011 31-12-2010

FIXED ASSETS

Tangible fixed assets 149.273 205.095

Financial fixed assets 8.798 9.488

Total fixed assets 158.071 214.583

CURRENT ASSETS

Receivables 113.636 98.407

Prepayments and accrued income

100.804 113.858

Conditional project funding 938.697 57.905

Liquid assets 8.301.364 2.694.793

Total current assets 9.454.501 2.964.963

Total assets 9.612.572 3.179.546

LIABILITIES 31-12-2011 31-12-2010

RESERVES AND FUNDS

Reserves

•Continuityreserve 1.268.703 1154.715

•Appropriatedreserves 205.384 105.384

•Revaluationreserve 432 432

Funds

•Appropriatedfunds 52.077 30.200

•Expertsfund 26.995 21.642

Total reserves and funds 1.553.591 1.312.373

SHORT-TERM LIABILITIES

Other liabilities 302.743 357.525

Accrued liabilities 163.843 89.832

Conditional project commitments 7.592.395 1.419.816

Total short-term liabilities 8.058.981 1.867.173

Total liabilities 9.612.572 3.179.546

Agriterra | 18

Government agencies are the principal donorsThe Directorate-General for International Cooperation (DGIS; Dutch Ministry of Foreign Affairs) is the principal funder of the Farmers Fighting Poverty programme. The total budget for the period 2011-2014 amounts to just over €50 million, of which €8.3 million was utilised in 2011. Furthermore, Agriterra managed to mobilise nearly €1.6 million in additional funding for the programme in 2011. These funds are mainly derived from government agencies and donations. The total achieved comfortably exceeds the €1 million that had been anticipated.

Agriterra in 2011•Projects in progress: 154•Numberofclients:126 organisations

in 42 countries

•Clients’owncontribution: €6 million

•Numberofproducersreached: over 700,000 (44% women) 95% of them at local level

•Numberofexpertson working visits: 236

Actual 2011 Budgeted 2011 Actual 2010

INCOME

Income from own fundraising and third-party activities 72.640 50.000 172.573

Subsidies from third parties 1.439.915 1.000.000 935.560

Subsidies from governments 8.304.322 8.375.000 5.412.593

Income from investments 102.427 60.200 58.679

Other income 34.074 32.800 31.849

Total income 9.953.378 9.518.000 6.611.254

EXPENDITURE

On achievement of objectives:

•FarmersFightingPovertyprogramme 9.253.000 8.737.885 5.740.308

•EU,IOBandPSO 583.888 0 891.264

•Appropriatedreservesforprogrammes 33.162 50.000 18.911

•Deferredexpensesfromprogrammesin2006 0 0 0

Total expenditure on achievement of objectives 9.870.050 8.787.885 6.650.483

Cost of generating funds:

•Costsofownfundraisingactivities 0 0 0

•Costsofthird-partyactivities 0 0 0

•Costofsecuringgovernmentsubsidies 0 0 0

•Investmentcosts 1.809 1.000 765

Total cost of generating funds 1.809 1.000 765

Management and administration:

•Staffcosts 2.296.240 2.151.900 2.071.439

•Premisescosts 191.904 210.000 217.917

•Generalexpenses 261.074 361.800 386.151

•Activity-relatedcosts 5.352 10.500 3.589

•Chargedtoobjectives -2.914.272 -2.086.771 -2.815.175

Total management and administration costs -159.702 647.429 -136.079

Total expenditure 9.712.157 9.436.314 6.515.169

Surplus (+), deficit (-) 241.221 81.686 96.085

“Charged to objectives” consists of an allowance of €2,105,587 for chargeable hours in relation to Farmers Fighting Poverty 2011-14, the settling of Farmers Fighting Poverty 2007-10 to the amount of €204,000 and a general handling fee of €604,685.

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Agriterra | 19

Agriterra

Willemsplein 42

6811 KD Arnhem

P.O. Box 158, 6800 AD Arnhem

The Netherlands

Telephone 0031-26-4455445

Website: www.agriterra.org

E-mail: agriterra@agriterra.org