Hanns R. Neumann Stiftung Tanzania
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1 Sustainable Coffee Production in Tanzania Hanns R. Neumann Stiftung Tanzania January 2013 Dar Es Salaam, December 2010
2 Presentation Overview 1. Coffee global demand and supply 2. HRNS Overview 3. HRNS Tanzania Program 4. Project Achievements and Best Practices 5. Conservation Agriculture Regional Program 6. Coffee and Climate 7. HRNS TZ - Funding 2
3 Global demand and supply Coffee is produced in 70 countries worldwide Provides a livelihood for about 25 million families 3 billion cups of coffee are consumed on our planet every day 3
4 World Coffee Demand Projection (in Mio. Bags) 2020 Region 2010 North America Western Europe Eastern Europe Central America (incl. Mexico) Africa Middle East Asia & Oceania South America Total World Coffee Demand 2010: 132,700,000 bags 4
5 Coffee Production 2010/11 in selected countries - in 000mt Rwanda Burundi Kenya Tanzania Papua New Guinea Côte d'ivoire Nicaragua Costa Rica El Salvador Uganda Peru Guatemala Mexico Honduras Ethiopia India Colombia Indonesia Vietnam Brazil World crop 2010/11: 8,539,000 mt
6 HRNS - Who We Are Founders Neumann Gruppe GmbH, Michael R. Neumann, Sabine Neumann (Sponsoring contract with Neumann Gruppe; not a member of NKG) Establishment 2005; Project work since 1991 (as E.D.E. Consulting) Equity Offices EUR 10 mln; holding 100% shares in E.D.E. Consulting Hamburg, Guatemala, Brazil, Uganda, Cote d Ivoire, Tanzania, Vietnam, USA Staff 48 permanent; 76 temporary (in projects) 6
7 Hanns R. Neumann Stiftung - Our Vision A healthy environment, dynamic societies and a level playing field for farmers and their partners in tropical agricultural value chains. 7
8 HRNS - Our scope of action Germany USA Mexico 90,000 Guatemala El Salvador Honduras Colombia 10,350 Ivory Coast Uganda Kenya India Vietnam Peru HRNS Offices Projects Brazil 200,000 1,550 Angola Tanzania 90, ,000 (coffee) 250,000 (cocoa) 92,000 3,100 No. of Farmers Prod. Vol. in bags 8 8 offices 23 projects reaching 105,000 farmers directly Annual turnover EUR 9 mln
9 HRNS Network Key partners from the private sector: Lavazza Nestlé Smuckers Sara Lee Tchibo Tim Hortons Green Mountain Löfbergs Lila Paulig Joh. Johannson Costa Coffee Barry Callebaut Ecom Neumann Kaffee Gruppe... from the public sector: GIZ DEG DANIDA ADA Coffee institutes in producing countries USAID EU IDB IFAD... from the sector of foundations and NGOs: B & M Gates Foundation Rabobank Foundation Fundação Banco do Brasil Jacobs Foundation Rainforest Alliance 9
10 HRNS TZ Program Project Area Beneficiaries (Households) North South Kilimajaro Arumeru Mbeya Mbozi Rungwe Ileje Total
11 The Tanzanian Smallholder Coffee Farmer Characteristics Subsistence Farming Why low income Poor agricultural practices Coffee intercropped with bananas, beans, fruit trees 0,4 1 ha of land under coffee Approx. 800 coffee trees Mainly family labour Limited use of inputs Very low coffee yields, appr. 250 kg/ha (green coffee) Strong dependency on middlemen for access to loans and markets Weak position in the value chain 11
12 HRNS Experience from Project Work Farmers triple their income through: Good agricultural and post harvest practices Transparent and efficient farmer organizations Entrepreneurial conduct and access to support services (i.e. credit) 12
13 Components of CFAT Organisational Development Sustainable Agriculture (Increasing productivity and crop quality) Establish linkages to essential services for farmers (credit, input supply, markets, knowhow) Improve environmental and social conditions Income diversification/ Conservation Farming Climate Gender 13
14 Organizational Development National Auction/ International Market Function: Credit Inputs Training 14 APEX Financial & Administrative Management System Internal Control System Linkages to District Offices, TCB, Service Providers (i.e. Mills, TaCRI), potential partners (i.e. NMB, donors) Depot Commitees Representatives of POs, Executive Committees, Farmer Extensionists, Marketing Coordinators Producer Organisations Groups of 50 farmers, Farmer Extensionists, Farmer Field Schools, demo plots Added Value, Marketing, Advocacy, Services Quality Assurance, Bulk Marketing Production, Representative Participation
15 Extension Tools Demonstration Plots Best practices Cost/Benefit analysis Yield potential Rehabilitation period Farmer Field Schools (FFS) Farmer to Farmer Learning Full ownership of the extension system Strengthens farmer organizations Go beyond agronomy 15
16 Access to Improved Planting Material Nurseries with mother-gardens have been established, cooperation with TaCRI in north and south TZ 16
17 Quality Improvement Emphasize on: Quality Requirements and Control Coffee Nutrition Selective Picking Transport and storage Use of Drying Tables => Establishment of Eco-Pulping Units where appropriate 17
18 Food Security and Income Diversification Conservation Agriculture Regional Program (CARP) aims to support climate resilient conservation agriculture practices in Malawi, Uganda, Kenya and Tanzania Financed by the Royal Norwegian Government Coordinated by CFU (Conservation Farming Unit) 70,000 beneficiaries in TZ in Implemented by HRNS and Gatsby Trust Project duration
19 Initiative for Coffee & Climate Enable coffee farmers to effectively respond to climate change through a combination of farmer know-how and state of the art climate science Pilot phase in Brazil, Vietnam and Tanzania Financed by ICP, Ecom, Franck d.d., Tim Hortons, GIZ and Sida Develop and disseminate hands-on tools to farmers 19
20 HRNS Tanzania Program - Funding Contribution by Donor in EUR 09/ /2016 Contributions by Donor in % Donor EUR BMGF ICP/ADA Lavazza Rabobank Foundation SIDA CFU Others (t.b.d.) Total CFU 16% Others (t.b.d.) 22% SIDA 15% BMGF 21% ICP/ADA 14% Lavazza 2% Rabobank Foundation 10% Persisting funding gap of EUR 1.1 Mill 20
21 ASANTENI SANA
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