COOCENKI Case Study in English

CATALIST

Burundi • DR Congo • Rwanda

Catalyze Accelerated Agricultural Intensification for Social and Environmental Stability

a project for the great lakes region of central africa

Case Study: COOCENKI A Union of Farmers Climbs the Value Chain With the Help of CATALIST

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griculture is the principal source of income for most of the population in the North Kivu Province (in the Democratic Republic of Congo, or DRC), and if farmers continue with subsistence farming they will always be poor,” declared Daniel Muhindo Bunambo, Coordinator of the Central Agricultural Cooperative of North Kivu (COOCENKI).

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The COOCENKI logo.

According to Bunambo, COOCENKI was created in 1980, formed through the initiative of three primary cooperatives – COOPAMU Mbingi, COOPROAGRI Mighobwe and SOPLAKI of Kayna. The union was formed because the farmer members sought to develop greater access to markets, particularly in the DRC’s larger towns of Goma and Butembo. In order to grow stronger, they convinced seven other cooperatives to join COOCENKI, so 10 cooperatives were working together at the start of the union. Today, COOCENKI includes 25 cooperatives working in three areas of North Kivu – Rutshuru, Lubero and Beni.

Current prices for union members are listed on a weekly basis.

In 1987, COOCENKI was officially recognized as a union, affording the organization increased negotiating

power. Each member cooperative must pay a fee as determined by members at the Annual General Meeting, a social contribution and annual dues that vary depending on the cooperative’s financial situation.

The first step was agricultural intensification with ISFM Agricultural intensification increases productivity. Intensification takes many forms, including irrigation and using animals or machinery in place of human labor. IFDC and its CATALIST project use Integrated Soil Fertility Management (ISFM) as a tool to increase crop yields and strengthen the value chain. ISFM strategies center on combining mineral fertilizers and locally available organic amendments (crop residues, compost and green manure) to replenish lost soil nutrients, improving its fertility and enhancing crop growth. Organic soil amendments interact with mineral fertilizers, improving both soil quality and the efficiency of fertilizers and other agricultural inputs (seeds, crop protection products and water).

In addition, ISFM promotes improved crop management practices, measures to control erosion and leaching and techniques to improve soil organic matter maintenance.

In order to improve their crop yields, members of COOCENKI had to improve the fertility of their soil. Most farmers in North Kivu have small plots of land; however, since the introduction of the ISFM technology in 2007, they have been able to increase their production.

Using ISFM, they can feed their families while also raising their incomes through the sale of surplus crops.

“CATALIST taught us modern farming techniques the way you would teach a child to read – A, B, C, D. Before learning about ISFM we only had vague notions of using inputs,” says Bunambo.

With the first ISFM successes in maize and potato production, many other farmers adopted the technology.

Farmers learned which types and quantities of fertilizers were needed according to the crop, as well as techniques such as the use of organic matter, weeding and other appropriate technologies.

The process pays off Before agricultural intensification was introduced on the maize crop, the average farmer produced about 1.2 tons per hectare (t/ha). After applying ISFM

in Kalunguta, the yield increased to an impressive 5.6-6.7 t/ha. More importantly, the cost of production fell from $130 per ton to $85 per ton.

Consequently, in Beni District alone, 985 farmers (about half of whom are women) in the villages of Kalunguta, Kabasha and Maboya participated in maize demonstration plot activities during the first season of 2010.

The second step: adding value for better profits Increasing production was the first step in the process for members of COOCENKI seeking to improve their lives.The next step in their process was developing greater access to markets by building an agricultural value chain.

IFDC helps increase the productivity and profitability of smallholder farmers through the development of competitive and sustainable agricultural value chains. Establishing commodity-based value chains not only empowers the farmers to shift from subsistence farming to an entrepreneurial business; it gives them the tools they need to take ownership of the process and build sustainable markets.

IFDC agribusiness activities target the entire value chain – from the seeds that farmers plant to the marketing of their harvest. IFDC staff members focus on building the capacity of all members in the value chain for greater professionalism and effectiveness. This includes participatory efforts

to foster productivity and link farmers to input and output markets. Activities include strengthening producer and trade associations and developing market information systems that serve producers, traders, processors and consumers. IFDC also works to create an enabling policy and regulatory environment for the free movement of inputs and greater intra-regional trade of produce.

The input value chain encompasses the steps and actors leading up to harvest. These might include agrodealers, who sell farmers effective fertilizers, seeds and crop protection products and provide information on their use, to producer organizations that help farmers learn more effective farming techniques. The output value chain encompasses all the steps that a product takes from harvest to consumer. Agricultural value chain development is about linking farmers to people who can help them grow, process, package, market and eventually buy the food they produce.

COOCENKI’s leaders understood that the best way to raise incomes was to move up the value chain, particularly by introducing processing. Increasing involvement in the value chain generates additional profits and increased employment opportunities (such as work in transportation, labor, mechanics, etc.). COOCENKI members were moving beyond production and entering a new segment of the market – processing maize flour. This offered new opportunities for increased income.

Mrs. Kahindo Siherya and Mrs. Kavugho Muvunga from the Maboya section of COOPAHA cooperative proudly show the quality of maize grown using ISFM technology.

Mrs. Kavugho Kisonia Desanges, COOCENKI staff in charge of gender issues in Butembo District, checks the quality of maize brought to COOCENKI’s new milling equipment by farmers in the area.

Building a processing plant With the assistance of a grant from VECO, a Belgian non-governmental organization, COOCENKI built a maize processing plant in Kyambogho, Butembo. VECO provided 80 percent of the funds necessary to build the plant, while COOCENKI provided the remaining 20 percent. The plant has three husking/hulling machines and four milling machines, and farmers had a new outlet to sell their surplus maize for processing.

Previously, farmers did not have ready access to maize processing, but now with the new equipment and storage space, as much as 24 to 30 tons of maize can be processed per day.

Milling is essentially a three-step process. The first step consists of hand-cleaning the maize to remove impurities such as small stones and leaves. The second step involves putting the maize through one of three husking/hulling machines. Next, the maize is milled in one of four machines that can each produce 2.5 tons of high quality flour each day. At harvest-time, the mill operates up to 12 hours a day.

The plant was built 11 kilometers outside the city on a route with accessibility to markets – 20-25 minutes to Butembo. Besides its accessibility, the location was chosen

by COOCENKI for environmental reasons. The plant location protects the nearby population from pollution

caused by the dust from maize processing. Other advantages include proximity of the processing plant to a natural gas supplier and to maintenance technicians, as well as eventual access to hydroelectric power.

COOCENKI and the World Food Program In 2005, there was a major lobbying effort by farmers – with VECO’s support and guidance – to persuade the World Food Program (WFP) to source its food supplies from local farmers, rather than importing supplies for their programs.

In 2007, the WFP agreed to purchase commodities such as maize and beans from the farmers for its programs.

This agreement meant that farmers had a guaranteed market for their commodities. COOCENKI began to deliver 150 tons of unprocessed maize that year.

In 2008, two contracts for processed maize were signed – one for 300 tons and the other for 200 tons. The first contract was in effect during the world food crisis, and the union was able to deliver only 200 tons. COOCENKI farmers initially received the market price for their produce, with a small increase compared to the price offered by traders for their produce, as well as 75 percent of net profits after processing. The other 25 percent of profits were reinvested in production and equipment.

The first contract with WFP paid the union $800 per ton for beans and $450 per ton for processed maize.

Despite this positive development, an increase in production costs in 2008 resulted in no additional profits to distribute to farmers. In addition, the maize was delivered later than the contract agreement terms; fortunately, WFP waived the penalty. However, COOCENKI members realized that they had much to learn to become reliable players in the value chain.

Strengthening the relationship, WFP contracted for 250 tons of unprocessed maize from COOCENKI in April 2010, with delivery in June 2010.

Unexpected losses Despite a guaranteed market, COOCENKI members incurred financial losses on their crops. Subsequently, they sought to understand why.

After evaluating the situation, they realized that most losses arose from unexpected problems in the production process. The three main problem areas identified were humidity, transportation costs and taxes.

Members remain satisfied in spite of the setbacks because they finally have a reliable market for their goods.

Although many of its activities have been supported by donors, COOCENKI has self-financed some projects independent of donors. The most important project concerns commercialization of agricultural products and inputs. In total, the organization generated $711,241 from the self-financed projects.

COOCENKI in the local market In addition to the WFP contract, COOCENKI also is satisfying the local consumer market by producing enough maize for Butembo and surrounding areas. This also increases incomes for farmers all over the “Great North.” At the end of the year, any profit is shared among the cooperatives, in proportion to their transactions with the union. In accordance with the organization’s by-laws, 10 percent of revenues must remain in COOCENKI’s bank account and kept as a statutory reserve, another 10 percent is kept as legal reserve and five percent goes to strengthening the union.

Future expansion: developing the agro-input market COOCENKI plans to be the first organization in the Kivu to specialize in agro-input market development.

In partnership with the CATALIST project, the union has taken steps to become more knowledgeable about inputs. Members recently participated in a training program for agro-input dealerships in North Kivu, and COOCENKI is in the process of establishing agrodealerships in its area.

CATALIST at a glance The five-year CATALIST project was launched in October 2006 by IFDC with funding from the Netherlands Directorate-General for International Cooperation (DGIS).

Project oversight is provided by the Royal Netherlands Embassy in Rwanda.

CATALIST is increasing food security, reducing poverty and improving regional collaboration to foster peace and security in the Great Lakes Region of central Africa.

Mr. Feston Mwandu Paluku, in charge of the maize stock at COOCENKI, weighs a sack of maize at the union’s processing facility.

CATALIST This brochure is a publication of the IFDC-implemented CATALIST Project. | www.ifdc-catalist.org | ifdcrwanda@ifdc.org Funding is generously provided by the Netherlands Directorate-General for Development Cooperation (DGIS).

PROJECT HEADQUARTERS

BURUNDI OFFICE

DRC OFFICE

COOCENKI – www.coocenki.org

IFDC Rwanda 730, Kimihurura II – Gasabo District P. O. Box 6758, Kigali Office: +250 255 10 42 11

IFDC Burundi 3 - Bweru Street Rohero II P. O. Box 1995, Bujumbura Telephone: +257 22 25 78 75 +257 22 27 35 66

IFDC Congo Q. Himbi, Goma Telephone: +243 813 134 697

20, Ave du Marché, Commune Kimemi Ville de Butembo, North Kivu Telephone: +243 998 605 152 coocenkirdcongo@yahoo.fr