FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO STRENGTHENING VALUE CHAINS ACTIVITY SECOND QUARTER REPORT (Q2) FISCAL YEAR (FY) 2021 1 January–31 March 2021
Photo caption: Minova sharecropper in her bean field
April 2021 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech.
FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO STRENGTHENING VALUE CHAINS ACTIVITY
SECOND QUARTER (Q2) REPORT FISCAL YEAR (FY) 2021 1 January–31 March 2021
APRIL 2021 Prepared for the United States Agency for International Development, USAID Contract Number AID- 660-C-17-00003, Feed the Future Democratic of the Congo Strengthening Value Chains Activity. Implemented by: Tetra Tech ARD 159 Bank Street, Suite 300 PO Box 1397 Burlington, VT 05401
DISCLAIMER: This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Tetra Tech, and do not necessarily reflect the views of USAID or the United States Government.
TABLE OF CONTENTS
TABLE OF CONTENTS ...... i ACRONYMS AND ABBREVIATIONS ...... iii EXECUTIVE SUMMARY ...... 1 1.0 INTRODUCTION ...... 4 2.0 SVC PERFORMANCE TO DATE ...... 5 3.0 COLLABORATION...... 13 3.1 USAID IMPLEMENTING PARTNERS (IP) ...... 13 3.2 OTHER DEVELOPMENT PARTNERS ...... 14 3.3 GOVERNMENT ...... 15 3.4 PRIVATE SECTOR ACTORS ...... 15 4.0 TECHNICAL ACTIVITIES BY PROJECT COMPONENT ...... 18 4.1 COMPONENT 1: BUILD CAPACITY OF VERTICAL AND HORIZONTAL ACTORS IN TARGETED VALUE CHAINS ...... 18 4.1.1 Introduction ...... 18 4.1.2 Key Activities Undertaken in Q1...... 19 4.1.3 Activities Planned for Q3 FY21 ...... 44 SUCCESS STORY: FRANCINE CISHUGI PROMOTES GROUPED PURCHASING OF BEANS AND SOYBEANS AT THE MUGOGO MARKET DURING THE COVID 19 PANDEMIC OF 2020 ...... 45 4.2 COMPONENT 2: ENHANCE COFFEE PRODUCTION ...... 47 4.2.1 Overview ...... 47 4.2.2 Key Accomplishments ...... 47 4.2.3 Key Activities for Q3FY21 ...... 71 SUCCESS STORY: MEMBERS OF THE LOCAL BATWA COMMUNITY BENEFIT FROM COFFEE FARM COLLEGE TRAINING IN IDJWI ...... 72 SUCCESS STORY: SVC’S PARTNERSHIP WITH OLAME COOPERATIVE ON IDJWI PROVIDES THE TECHNICAL SUPPORT NEED TO IMPROVED COFFEE QUALITY, ATTRACT INTERNATIONAL BUYERS AND ENGAGE YOUTH AND WOMEN IN THE COFFEE SECTOR ...... 73 4.3 COMPONENT 3: DEVELOP AND IMPLEMENT PUBLIC PRIVATE PARTNERSHIPS (PPPs) ...... 76 4.3.1 Introduction ...... 76 4.3.2 Key Activities Planned for Q3 FY21 ...... 76 4.4 COMPONENT 4: ACCESS TO FINANCE (A2F) ...... 77 4.4.1 Introduction ...... 77 4.4.2 Key Activities Undertaken during Q2FY21 ...... 78 4.4.3 Key Activities Planned for the Next Quarter ...... 82 4.5 CROSS-CUTTING PRIORITIES ...... 82 4.5.1 Gender, Youth, and Social Inclusion (GYSI) ...... 82 4.5.2 Key Activities Undertaken during Q2 FY21...... 83 4.5.3 Activities Planned for Q3 FY21 ...... 84
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) i SUCCESS STORY SARAH AKOKO, A YOUNG MODEL OF LEADERSHIP AND ENTREPRENEURSHIP IN WALUNGU, SOUTH KIVU ...... 85 4.5.4 Environmental Monitoring and Mitigation Plan ...... 87 4.5.5 Key Activities Undertaken in Q2 FY21 ...... 88 4.5.6 Key Activities Planned for the Next Quarter (April-June 2021) ...... 94 5.0 CONSTRAINTS And Potential Solutions ...... 96 6.0 KEY FINDINGS AND LESSONS LEARNED ...... 100 7.0 RECOMMENDATIONS ...... 103 8.0 CONCLUSION ...... 104 ANNEXES ...... 106 ANNEX 1: Q2 FY 21 FINANCIAL REPORT ...... 106 ANNEX 2: SVC 2019 COHORT SCORECARD ...... 107 ANNEX 3: SVC 2018 COHORT DEMO PLOT YIELD REPORT...... 108 ANNEX 4: ENVIRONMENTAL MITIGATION AND MONITORING REPORT (EMMR) ...... 109 ANNEX 5. PGE COOPERATIVE PARTICIPANT ACTION PLANS ...... 125
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ACRONYMS AND ABBREVIATIONS
A2F Access to Finance ACOSYF Association Coopérative pour la Synergie Féminine ACT Association des Commerçantes Transfrontaliers ADIJ Activité de Développement Intégré des Jeunes AJDMU Association des Jeunes pour le Développement de Mushinga AFCA African Fine Coffee Association AMELP Activity Monitoring, Evaluation and Learning Plan AMSA Association des Multiplicateurs de Semences Améliorées ANAPI Agence Nationale pour la Promotion des Investissements ARD Associates in Rural Development ASSALAK Association des Armateurs de Lac Kivu ASSECCAF Association des Exportateurs de Cacao et Café ASBL Association Sans But Lucratif ASOP Action Sociale et d’Organisation Paysanne AVEC Association Villageoise d’Epargne et Crédit AVPA Agence pour la Valorisation des Produits Agricoles AWP Annual Work Plan B2B Business-to-Business BDS Business Development Services BIA Boutique d’Intrant Agricole BIC Bureau de l’Information Commerciale BYA Bukavu Youth Agri-Preneurs CAPACADE Coopérative Agricole pour la Promotion des Actions café et de Développement CAPCKI Coopérative Agricole de Producteurs de Café du Kivu CARG Conseil Agricole Rural de Gestion CARPE Central Africa Regional Program for the Environment CBRMT Capacity Building for Responsible Minerals Trade CCPA Conseil Consultatif Provinciale sur l’Agriculture CEE Communauté Economique de l’Europe CFC Coffee Farm College CLD Communauté Locale de Développement COASO Coopérative des Agriculteurs de Soja COCAII Coopérative Caféicole Isle d’Idjwi COCASKA Coopérative de Café Sélectionné de Kalehe COMESA Common Market for East and Southern Africa CONAPAC Confédération Nationale des Producteurs Agricoles du Congo COOPAKAB Coopérative Agricole de Kabare COOPANYA Coopérative Agricole de Nyamarhale COP Chief of Party
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COPROSEM Conseil Provinciale de Semences CPCK La Coopérative des Producteurs du Café de Kabamba CPQI Coffee Processing Quality Index CQI Coffee Quality Institute CSP Coffee Service Provider CYED Center for Youth Emancipation and Development DCA Development Credit Authority DCOP Deputy Chief of Party DFC U.S. International Development Finance Corporation, formerly USAID’s Development Credit Authority (DCA) DGDA Direction Générale des Douanes et Assises DFAP Development Food Aid Program DFID Department for International Development DFSA Development Food Security Activity DGDA Direction Generale des Douanes et Accises DPM Deputy Project Manager DPMER Direction Provinciale de Mobilisation et d’Encadrement des Recettes DQA Data Quality Assessment DRC Democratic Republic of the Congo DUBR Dynamique Umoja Bonde la Rusizi EAGC East African Grain Council ECI Eastern Congo Initiative EDC Education Development Center Inc. EG Economic Growth EMMP Environmental Mitigation and Monitoring Plan FAM Fondation Amani Maendeleo FAO United Nations Food and Agriculture Organization FBG Farmer Business Group FEC Fédération des Entreprises du Congo FFG Focal Farmer Group FFP Food for Peace FH Food for the Hungry FNM Fonds Nationale de Micro-Finance FOPAC La Fédération des Organisations des Producteurs Agricoles du Congo FONADA Fond Nationale de Développement Agricole FODDR Fondation Djuma Dominique Rwesi FPI Fonds pour la Promotion de l’Investissement FPM Fund for the Promotion of Financial Inclusion in DRC FSP Food Security Project FY Fiscal Year GALS Gender Action Learning System GAMF Groupement d’Acteurs de Microfinance GAP/Kivu Groupement Agro-Pastorale de Kivu GDRC Government of the Democratic Republic of the Congo GESI Gender Equity and Social Inclusion GFSS Global Food Security Strategy GSICM Gender, Social Inclusion, and Conflict Mitigation
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HA Hectare IEE Initial Environmental Evaluation IFCCA Initiative des Femmes Dans Café et Cacao IGA Integrated Governance Activity IHP Integrated Health Project IITA International Institute for Tropical Agriculture INERA Institut National pour l'Etude et la Recherche Agronomiques IP Implementing Partner IPA Inspection Provinciale de l’Agriculture IPAPEL Inspecteur Provincial de l’Agriculture, la Pèche, et l’Elevage IPM Integrated Pest Management IYDA Integrated Youth Development Activity kg Kilogram JAA JE Austin Associates KAB Kivu Agro-Business (Ag Input Supply/Mudaka) KYBK Kahawa Bora Ya Kivu LC Listening Club LOA Life of Activity MC Mercy Corps M&E Monitoring and Evaluation MFI Microfinance Institution MIS Market Information System MLAT Multi-Location Agronomic Trial MONUSCO Mission de l'Organisation des Nations Unies pour la Stabilisation du Congo MoU Memorandum of Understanding MT Metric Ton (1000 kg) NASECO Nalweyo Seed Company NDSCi Nouvelle Dynamique de la Société Civile NGO Non-governmental Organization OCC Office de Contrôle de la Commerce OGEFREM Office de Gestion de Fret Multimodal OFTT On-Farm Technology Trials/On-Farm Field Trial ONAPAC Office National des Produits Agricoles au Congo (new name of Office National du Café) ONC Office National du Café (now called ONAPAC) ONEM Office National de l'Emploi Q Quarter PAD Programme d’Appui au Développement Durable PAM Programme Alimentaire Mondiale (World Food Program) PARSSA Projet d’Appui à la Réhabilitation et à la Relance du Secteur Agricole (World Bank) PAV Programme d’Appui aux Vulnérables PFCGL Programme de Facilitation de Commerce dans la Région des Grands Lacs PGE Partnership for Gender Equity PHH Post-Harvest Handling PIAD Programmes des Initiatives d’Appui au Développement PICAGL Programme Intégré de Croissance Agricole dans le Grands Lacs PICS Purdue Improved Crop Storage PM Project Manager
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PO Producer Organization POS Point of Sale POSA Producer Organization Sustainability Assessment PPE Personal Protective Equipment PPP Public-Private Partnership PROLASA Programme Laïc pour la Santé PSA Public Service Announcement RAEK Rassemblement des Agriculteurs et Eleveurs du Territoire de Kabare RATIN Regional Agricultural Trade Intelligence Network R&D Research and Development RECOS Regime Commerciale Simplifiée RIAF Robinson International Afrique RCPCA Réseau des Coopératives des Producteurs de Café Cacao en RDC RDC République Démocratique du Congo ROI Règlement d’Ordre Intérieure RISD Research Initiatives for Social Development RTNC Radiotélévision Nationale Congolaise RUJCAF Ruhunde Jeunes Caféiculteurs RWH Rebuild Women’s Hope SBCC Social Behavior Change Communication SCA Specialty Coffee Association SdK Saveur du Kivu (Specialty Coffee Event) SENAFIC Service National des Fertilisants et Intrants Connexes SENASEM National Seed Service (Service National des Semences) SFCG Search for Common Ground SIDI Solidarité Internationale pour le Développement et l’Investissement SIL Soybean Innovation Lab SOLFAP Synergie des Organisations Paysannes dans la Lutte Contre la Faim et la Pauvreté SOPADE Solidarité de Paix et Développement SPR Solutions for Peace and Recovery Project SUAP Safer Use Action Plan SVC Strengthening Value Chains (Activity) TA Technical Assistance TASQ Traditional and Standard Quality TCC Tumaini Coffee Cooperative TCN Third Country National TEP Tribunes d’Expressions Populaires TNS TechnoServe TOT Training of Trainers UCB Université Catholique de Bukavu UEA Université Evangélique de l’Afrique/Bukavu UCOAKA Union des Coopératives Agricoles de Kalehe UFIN Union des Femmes Insulaires (d’Idjwi) UPSKI Union of Soybean Producers of Kivu USAID United States Agency for International Development USG United States Government VC Value Chain
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VCM Value Chain Manager VSLA Village Savings and Loan Association WCR World Coffee Research WFP World Food Program WV World Vision YALI Young African Leaders Initiative ZOI Zone of Intervention
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EXECUTIVE SUMMARY
The Feed the Future Democratic Republic of Congo (DRC) Strengthening Value Chains Activity (SVC) is a five-year development Activity funded by USAID and implemented by Tetra Tech, in collaboration with three international partners: JE Austin Associates (JAA), TechnoServe (TNS), and World Coffee Research (WCR). In June 2020, the Activity began its fourth year of implementation. Q2 FY21 serves as an agronomic bridge. For nutritive value chains and field crops, A-season production is harvested, dried, winnowed, cleaned, calibrated, and either warehoused or placed on the market. B- season field preparation and planting activities are underway. It is also the moment for final preparations for the main coffee harvest and the commencement of processing activities at the wet mills. During this period, many of the OPEX loans from previous campaigns come due, investment and OPEX needs for the current campaign are finalized, submitted to financial institutions and adjudicated. Second payments and premium payments to farmers based on final sales prices received due to quality considerations occur. Most cooperatives hold their annual general assembly meetings, assess their accomplishments from the previous year, and actualize their planning for the current one. For enterprises, books are closed, financial statements are generated and audited, and business decisions are made. This means it is also a quarter of intense and diverse activity for SVC and its staff. The quarter marks the one-year anniversary of the COVID-19 state of emergency and it marked yet another quarter during which the DRC government was in flux. Both factors influenced our operations and those of our clients. Prices have risen significantly, the Congolese franc has devalued, supplies of goods are constrained, travel is difficult, markets are not operating at full capacity, and employment opportunities for youth are few. Here in South Kivu, criminality is on the rise, assassinations are increasing, tax revenues for public services have been reduced, and with formal mining concessions at historically low levels of productivity, artisanal mining and illicit mining activities by militias are on the rise. The A-season harvest is a time when, historically, militias descend into farmers’ fields and rural communities to resupply, often through the barrel of a gun. There are more home invasions, kidnappings, rape, and incidences of gender-based violence occurring than previously. Conflict and violence are on the rise and appear to be spreading. Land conflicts and efforts at illicit taxation escalate. DRC and its citizens are very resilient. They bend, but do not break. They adjust and move on. We as a program need to continue practicing adaptive management, and the language in our funding agreement should take this into account and provide flexibility to move with the ebbs and flows of the environment within which SVC operates. This quarter we received the final report of our mid-term evaluation with its numerous recommendations to which we will attempt to be responsive, in the context of time and resources remaining for implementation, but also with consideration given to the agricultural calendar and collaboration with different development partners in our area of operations. We are grateful to USAID for facilitating access to the DFSA beneficiary databases in our intervention zone. This allowed us to cross reference client and community overlap and it was found that we are co- located and collaborating with the same clients to a greater extent than previously documented. In fact , fully 67% of the 159 Community Based organizations SVC counts as clients are also partnering with the DFSA. This overlap is 75% in Kabare territory, 58% in Kalehe territory (since the DFSA only work in Mbinga Sud groupement and not throughout the territory), and 68% in Walungu territory. This means
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that communities are in fact benefitting from a wide range of USAID funded interventions and capturing outcomes and impact from this initiative will be key for reporting on higher level indicators and in assessing the improvements in quality of life, resilience, and sustainability of interventions as we move into the final stages of the program. We note, however, that the differing start dates, shift in value chains chosen for interventions, restrictions on which portions of the value chain should receive attention and by whom, and incomplete coverage of intervention zones are limiting factors that may detract from the overall benefit, and we suggest these dynamics be explored more fully during any endline or ex-post evaluation. By the end of the current reporting period SVC had achieved the following key achievements. • 241 participants, members of 27 Producer Organizations and four Youth Business Groups in Kalehe, of whom 48% were women and 401% youth benefitted from coaching in agribusiness and financial management. • 42 producer organization leaders, including 18 women from 10 PO received coaching in accounting and financial record keeping and analysis, • One training of trainers workshop was facilitated for 18 personnel of DFSA TUENDELEE PAMOJA II based in Walungu, focusing on PO structure, functioning, and governance, • In collaboration with the Integrated Youth Development Activity, SVC organized an exchange visit to an active coffee washing station for 18 youth graduates of literacy circles who have expressed an interest in participating in the coffee value chain. Two SVC client coffee enterprises have committed to recruiting between 10 and 16 youth as seasonal workers at their washing stations during the 2021 harvest season. • 214 people, including 92 (43%) women, from eight APEX structures, 96 PO, six concessionnaires, eight market women trader associations, and two food processing enterprises were trained in calculating production costs, estimating profit margins, and projecting their target sales and purchase prices for soy and beans • 224 people, including 114 women (53%) and 40 youth (18%), from 28 different client structures including eight APEX organizations, seven concessionnaires, eight market women trader associations, and three private warehouse operators were trained in balance sheet, cash flow, financial forecasting, and business planning, • One formal contract linking APEX producer organization (CLD Birava) with a soybean processor SAICO was negotiated and signed for 50 MT of raw soybean per agricultural season. • Clients stockpiled 83.2 MT then sold 71.9 MT of beans. They aggregated 75.0 MT of soybeans and sold 70.3 MT. • 8,256 farming households in South Kalehe participating in Coffee Farmer Colleges on best agronomic practices. • SVC provided business advisory services to 22 coffee enterprises managing 41 washing stations. • SVC coffee client enterprises invested $217,428 in constructing or upgrading washing stations. • Five of 14 SVC client coffee washing station managers (36%) succeeded in being certified following participation in the Coffee Quality Institute’s Level II processing training which focused on the science, technology and art of producing consistently high quality coffee. Three SVC business advisory staff were also certified. • SUCAFINA will procure from eight washing stations in 2021. They have provided OPEX financing of $88,275 to seven of these stations. • NESPRESSO and Virunga have formalized contracts with six SVC clients managing eight washing stations for six containers of coffee, providing $170,000 in OPEX financing to these clients.
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• SVC efforts resulting in 18 organizations receiving a total of $1,840,093 in agricultural related financing. Nine of these are SVC clients and they obtained $1,501,537 (81.6%) of this amount for their operations and investment needs. • Five cooperatives completed the PGE Virtual Learning series for gender equity and improved inclusiveness. They completed organizational gender self-assessments, developed profiles for their organizations for posting to the Equal Origins buyer’s portal, and conceived of and began executing against, self-defined gender action plans. • In two separate sessions, 33 Members of the Women Market Trader’s Association of Minova (an affiliate of ACT) and 41 members of OLAME cooperative on Idjwi, of whom 26 (63%) were women, participated in GALS Phase 1 training focused on assessing their opportunities and potential constraints and developing a medium-term vision for themselves and their respective organization to achieve. • Monitoring of most significant changes occurring as a result of GALS Phase I and II training on Idjwi was undertaken with participant volunteers from SCPNCK, COCAI, UFIN, PROLASA, and COASO. The assistant territorial administrator responsible for Economy and Finance who, herself, was an active participant in the GALS activity, participated in this monitoring exercise.
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1.0 INTRODUCTION
In May 2017, the United States Agency for International Development (USAID) awarded Tetra Tech ARD the Feed the Future Democratic Republic of the Congo (DRC) Strengthening Value Chains (SVC) Activity (Contract no. AID-660-C-17-00003). Initially, Tetra Tech implemented the activity in collaboration with five international subcontractors: Banyan Global, J.E. Austin and Associates, Inc. (JAA), Search for Common Ground (SFCG), TechnoServe (TNS) and World Coffee Research (WCR). As of FY 2021, two of our partners- Banyan Global and Search for Common Ground, are no longer members of the international implementation consortium. The purpose of the Activity is to increase household incomes and improve access to nutrient rich crops by linking small-holder farmers to strengthened and inclusive value chains and supportive market services. The SVC Activity is designed to complement USAID investments in food security, governance, environment, health, and youth, strengthening the foundation for durable peace in eastern DRC. SVC applies a nutrition-sensitive value chain and market systems development approach combining technical assistance and capacity building for value chain actors in improved production, credit facilitation, market linkages, public-private partnership development, social behavior change communication, and advocacy to support soy, dried bean and specialty coffee value chain development in South Kivu. The Activity targets three territories in South Kivu – Kabare, Kalehe and Walungu – over a period of five years (May 2017 – May 2022). A fourth territory, Idjwi, was added during FY2020. The SVC Activity includes the following components: • Component 1: Build capacity of vertical and horizontal actors in targeted value chains; • Component 2: Enhance coffee production (and productivity); • Component 3 (Cross Cutting): Develop and implement public private partnerships; • Component 4 (Cross Cutting): Enhance access to commercial finance, including through technical assistance to implement Development Credit Authority (DCA) agreements; And the following cross cutting priorities: • Conflict sensitivity and resilience, • Gender, • Feed the Future goals, • Sustainability and local systems strengthening, • Climate-smart agriculture, and • Value chain and market systems development. This report summarizes SVC activities and results achieved during the second quarter (January1 – March 31, 2021) of Fiscal Year 2021.
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2.0 SVC PERFORMANCE TO DATE
Summary of progress in Q2FY2021 This section of the report summarizes SVC performance indicators measuring results and progress towards the achievement of the second quarter and annual targets of FY2021. Q2FY21 Results
Indicator 4. Number of individuals participating in USG food security programs (GFSS # 49)] Figure 1 shows the number of individuals who participated in the SVC interventions in Q2FY21 and achievement against the fiscal year 2021target. Figure 1. Indicator 4: Number of individuals participating in USG food security program
A total of 9,958 individuals Activity Disaggregate of participants in Number of participated in the SVC SVC facilitated activities by thematic area participants interventions during the Q2 during Q2FY21 FY21. Among those individuals, Coffee farm college 8,879 50% (5,008) were men and 50% (4,950) were women, a Agribusiness accounting and financial management 243 reflection of the priority SVC Operation account trainees 202 places on gender inclusion in its activities. The total achieved Market linkages and production cost calculations 184 result in Q2 FY21represents Taxation and advocacy 137 25% of the FY 2021 target of Coffee business subcomponent 116 40,000 individuals. Among participants who provided their Evaluation of financial education training 87 age, 7,301(76%) were adults and Gender activities 71 2,322 (24%) were youth (<30 years). Activities took place in Input access 21 Bukavu, Goma, Kabare, Kalehe, Training of trainers in rural facilitation 18 Walungu and Idjwi.
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Indicator 5. Number of additional seasonal worker positions created compared to the baseline year” (Contractual) Creating employment opportunities and economic empowerment, particularly for youth and women, is one of SVC’s primary objectives. During Q2 FY21, a total of 524 seasonal jobs were created at SVC- supported wet mill stations, representing 35% of the FY21 target of 1,500. Of these seasonal employment opportunities, 234 are continuing jobs and 290 are new jobs. The jobs include sorting and cherry collection, construction, plantation maintenance, grading, and handling. Out of this number, 352 (67%) seasonal workers were men and 172 (33%) were women. Youth represent 26% (134 employees) of all the workers. Data collection on concessionnaires and agro-dealers employment is in progress and will be reported in the next quarter. Figure 2. Indicator 5: Number of seasonal jobs created
Indicator 7. Number of individuals who have received USG-supported short-term agricultural sector productivity or food security training During the Q2 FY21, a total of 9,482 individuals received short-term training on agriculture and post- harvest handing, an achievement of 86% against the FY21 target of 11,000. Among the training participants, 4,738 (50%) were women and 2,227 (23%) were youth. SVC trained 8,879 coffee producers from the Coffee Farm College, who completed at least half of the training in book-keeping and integrated pest management and trained 46 individuals on coffee tasting, business planning, and accounts management; 243 in agribusiness, accounting, and financial management; 112 in production cost calculation; and 202 in operation accounting. Figure 3. Indictor 7: Number of individuals who received training on food security and productivity
• In Q2 FY21, total sales of soybeans and beans from USG-supported firms and farms was $621,280, representing a 30% achievement against the FY21 annual target of $2,100,000. This amount includes 363.3 MT of soyabean valued at $296,000 and 304 MT beans valued at $325,280. These sales come from eight producer organizations, six concessionnaires, and seven women's associations supported by SVC and Association des Commerçantes Transfrontaliers (ACT).
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Sales took place at local markets and in Bukavu. The value of coffee sales will be reported in Q3 FY21, after the completion of the coffee season. • A total of 56 organizations received USG food-security related organizational development assistance this quarter. Among these organizations, 27 are producer organizations (PO), and four youth business groups. In collaboration with World Vision in Kalehe territory, SVC trained these organizations in agribusiness, accounting, and financial management. Of the 248 people trained, half (124) were women. In addition, SVC, through the coffee business component, has supported 25 clients. This support mainly focused on business management, coffee classification, tasting, governance, technical guidance in construction and machine operations, processing techniques, and quality, accounting and financial management. • The market information system remains operational. Prices are displayed in tables in the six pilot markets in the Kalehe, Kabare, and Walungu territories. The persons involved in the collection, processing, and display of prices are active. They are the Main Focal Points, Market Focal Points. and Market Relay Points. Staff from SVC and Conseil Consultatif Provinciale sur l’Agriculture - Conseil Agricole Rural de Gestion (CCPA-CARG) regularly monitor the system. • In Q2 FY21, SVC-supported wet mills processed 32 MT of coffee from 163 MT of cherries, an average cherry-parchment ratio of 5:1. This processed volume will increase as the coffee season continues. Because Q2 FY21 sits between two agricultural seasons, data for bean and soybean processed isn’t yet available and will be presented in SVC’s Q3 FY21 report • In Q2 FY21, SVC partners' aggregation centers were storing 75.7 MT of soybean and 82.8 MT of beans. • In Q2 FY21, nine agricultural borrowers from the coffee sector received credit as a result of U.S. Government assistance, representing 45% achievement against the annual target of 20 borrowers. All nine SVC clients (COCASKA, COOPAPP, RUJCAF, NICOLAS, OLAME, SCPNCK, MUUNGANO, RWH and THOMAS) are actively working in coffee sector as processors and exporters. • A total of $1,840,093 in agriculture related funding was disbursed as a result of USG assistance. This amount represents 142% achievement against the annual target of $1,300,000. By lender, $678,556 was lent by Equity bank, $1,075,500 by social investment organizations Root Capital and Solidarité Internationale pour le Développement et l’Investissement (SIDI), $26,537 by coffee value chain companies (Sucafina and Virunga/Nespresso) and $60,000 by IMF Smico. SVC clients received $1,501,537, and non-SVC clients received $338,556 • In Q2 FY21, no public-private partnerships were formed. SVC regularly follows up with authorities and individuals who have taken part in training sessions on public-private partnerships during previous quarters. • In Q2 FY21, SVC organized a training session on advocacy for two Kalehe-based associations (LIMA FAIDIKA of Minova and MAMA TUSAIDIYANE of Ihusi). • One-third of the participants in USG-assisted programs designed to increase access to productive economic resources were women, including woman borrowers and woman workers.
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SVC PERFORMANCE INDICATORS TO DATE 1. Status of SVC Q2FY2021 Performance Indicators
No Performance Indicator Target 2021 FY2021 Q2 FY 2021 Target Actual Total Achieved PURPOSE LEVEL: Increase household incomes and access to nutrient rich crops by linking smallholder farmers to strengthened and inclusive value chains and supportive market services. 3 Number households with a sustained increase of at least $125 in annual income from agricultural export commodities 10,000 (Contractual) (Annually - FY20, FY21,FY 22) 4 Number of individuals participating in USG food security 40,000 9,958 25% programs [IM-level (GFSS # 49)] (Quarterly) Sex category of individuals Male 5,008 50% Female 4,950 50% Age category of individuals Youth 2,322 23% Adult 7,301 73% Age not given 335 3% IR1: Improved agriculture livelihoods among targeted households 5 At least 2,000 additional seasonal worker positions created 1,500 524 35% compared to the baseline year) (Contractual) (Seasonal) New 750 290 Male 181 Female 109 Continuing 750 234 Male 171 Female 63 No Performance Indicator Target 2021 FY2021 Q2 FY 2021 Target Actual Total Achieved Sub-IR 1.1: Increased use of improved agriculture practices and inputs 7 Number of individuals who have received USG-supported short-term agricultural sector productivity or food security 11,000 9,482 86% training (EG 3.2.1) (*) (Quarterly) Sex category of individuals Male 4,744 50% Female 4,738 50% Age category of individuals Youth 2,227 23% Adult 6,980 74% Age not given 275 3% 11 Value of annual sales of farms and firms receiving USG $2,100,000 $621,280 30% assistance [IM-level] (GFSS #15 )(USD) (Seasonal) Coffee Soybean $296,000 Bean $325,280 Sub-IR 2.1: Improved market linkages and information systems 12 Number of for-profit private enterprises, producer organizations, water user associations, women’s groups, trade and business associations, and community-based organizations 200 56 28% receiving USG food security-related organizational development assistance (EG.3.2-4); FFP12*(Quarterly) New 50 0 Continuing 150 56 13 Number of MIS in place in South Kivu covering the three 1 1 100% target value chains (Custom)
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No Performance Indicator Target 2021 FY2021 Q2 FY 2021 Target Actual Total Achieved Sub-IR 2.2: Improved post-harvest storage and processing 14 Volume of targeted crops processed by food processors and 1,806 32 2% wet mills (Custom) (Seasonal) Coffee 32 Soybean Bean 15 Volume of targeted crops treated or stored at aggregation centers (sorting, grading, drying, bagging, storage); % increase 15% (1776) 158.5 9% over baseline (Custom) (Seasonal) Soybean 124.82 75.7 Bean 1651.91 82.8 16 Number of Agricultural Borrowers receiving credit as a result 20 9 45% of USG assistance (Custom) (Quarterly) 17 Total agriculture-related financing accessed as a result of USG $1,300,000 $1,840,093 142% assistance [IM-level] (GFSS 12)(USD) (Quarterly) SVC-Client (direct support) $1,501,537 None-SVC (Indirect support) $338,556 18 Number of public-private partnerships formed as a result of 10 0 0% USG assistance (EG.3.2-5). (Quarterly) Sub-IR 2.5: Improved governmental services, regulations, and taxation for agricultural inputs and trade in targeted value chains 22 Number of civil society organizations receiving USG assistance engaged in advocacy interventions (DR.4.2-2) 10 2 20% (Quarterly) Sub-IR 3.2: Increased awareness of and commitment to essential nutrition-promoting practices No Performance Indicator Target 2021 FY2020 Q2 FY 2021 Target Achieved Total Achieved Sub-IR 3.4: Improved access to diverse and nutritious foods 27 Number of actors including farmers, farmer associations, organizations, cooperatives, and businesses engaged in the 30 21 70% production and/or marketing of nutritional products [6] (Custom) (Quarterly) New Continuing 21 Cross Cutting IR: Increased gender equality and increased women’s socio-economic empowerment in target communities 28 Percentage of female participants in USG-assisted programs designed to increase access to productive economic 50% 33% 66% resources [IM-level] (GFSS #44) (Quarterly) Numerator: Number of female program participants (Ind #5, # 175 16) Denominator: Total number of male and female participants (Ind 531 #5 and #16) Cross-Cutting IR: Conflict Prevention and Mitigation 30 Number of participatory conflict analyses conducted. 3 0 0% (custom) (Quarterly)
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Performance Indicators Narrative Indicator No Narrative 3 Annual During Q2 FY21, a total of 9,958 individuals participated in the SVC interventions. The results achieved represent 25% of the FY 2021 target of 40,000 individuals. Among these individuals, 50% (4,950) were women, demonstrating effective targeting and inclusion of women in activity interventions. Disaggregated by age, 7,301 (73%) participants were adults, 2,322 (23%) were youth, and 335 (3%) were individuals for whom age disaggregation was not available. Disaggregated by activity, 8,879 participants are producers from Coffee Farm College, 116 are from coffee business 4 sub component, 87 participated in the evaluation of the financial education training and DCA guarantee rules, 243 were coached in agribusiness and accounting and financial management, 18 are FH staff trained in andragogy, training of trainers, 71 individuals participated in gender activities, 21 were reached through input access activities, 184 were engaged in market linkage activities and production cost calculation, 202 were trained in operation account, and 137 participated in activities related to taxation and advocacy. Individuals participated in SVC activities in Bukavu, Goma, Kabare, Kalehe, Walungu, and Idjwi. During Q1 FY21, SVC partners created jobs at wet mills and at coffee cooperatives. A total of 524 seasonal jobs were created at wet mills stations supported by SVC. This number represents 35% of achievement against the FY21 target of 1,500 jobs. 5 Among these people, 172 (33%) are women who mainly do the work of sorting and cherry collection, and 352 (67%) are men, who mainly do the work of construction, cherry picking, plantation maintenance, sorting, guarding and handling. Among these workers, 234 are continuing while 290 are new. Youth represent 25% of all workers. 6 Annual During this quarter, a total of 9,482 individuals received short-term training on agriculture and post-harvest handing, representing an 86% achievement against the FY21 target of 11,000. Among the training participants, 4,738 (50%) were women and 2,227 (23%) were youth. The result includes 8,879 coffee producers from the Coffee 7 Farm College trained at least on half of training related to book-keeping and integrated pest management, 46 individuals trained on coffee tasting, business planning, and accounts management, 243 trained in agribusiness, accounting, and financial management, 112 trained in production cost calculation, and 202 trained in operations accounting. 8a Annual 8b Annual 9 Annual 10 SVC will report this indicator at the end of the main coffee season (September 2021). This indicator is related to the value of sales of firms and farm supported by USG. During this quarter, the value of sales of firms and farm supported by USG was $621,280, which represents 30% achievement against the FY21 annual target of $2,100,000. This amount includes $296,000 of soybean (363.3 MT) and $325,280 of 11 beans (304.0 MT). The total amount is derived from the value of sales of eight producer organizations, six concessionaires, and seven women's associations selling beans and soybeans supported by SVC and ACT. These organizations sold their produce at local markets and in Bukavu. The value of coffee sales will be reported next quarter, at the end of the coffee season.
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Indicator No Narrative During the Q1 FY21, a total of 56 organizations received USG food-security related organizational development assistance. Among these organizations, 27 are producer organizations (POs) and four are youth business groups. In collaboration with World Vision in Kalehe territory, these organizations have received training in agribusiness 12 and accounting and financial management, represented by 248 people, including 124 women (50%). Through the coffee business component, SVC supported 25 clients on business management, coffee classification, tasting, governance, technical guidance in construction and machine operations, processing techniques and quality, and accounting and financial management. The market information system remains operational. Prices are displayed in tables in the six pilot markets in the Kalehe, Kabare, and Walungu territories. The persons 13 involved in the collection, processing, and display of prices are operational. They are the Main Focal Points, Market Focal Points, and Market Relay Points. The system is monitored regularly by the CCPA-CARG and SVC staff. This indicator refers to volume of targeted crops processed by food processors and wet mills. During this quarter, 32 MT of coffee was processed at wet mills. A total of 14 163 MT cherries were processed into 32 MT of parchment, for an average cherry- parchment ratio of 5:1. This volume will be increased after the end of the coffee season. There are no data of bean and soybean processed. This indicator is related to the volume of crops treated or stored at aggregation 15 centers. In Q2 FY21, a total of 158.5 MT (82.8 MT beans and 75.7 MT soya) were stored at SVC partners' aggregation centers. In Q2 FY21, nine agricultural borrowers from the coffee sector received credit as a result of USG assistance, representing 45% of the annual target of 20. All nine SVC 16 client work in coffee sector as processors and exporters: COCASKA, COOPAPP, RUJCAF, NICOLAS, OLAME, SCPNCK, MUUNGANO, RWH, and THOMAS. A total of $1,840,093 in agriculture related funding was disbursed as a result of USG assistance. This amount represents 142% of the annual target of $1,300,000. By lender, $678,556 was lent by Equity Bank, $1,075,500 by social investment 17 organizations (Root Capital and SIDI), $26,537 by coffee value chain companies (Sucafina and Virunga/Nespresso), and $60,000 by IMF Smico. The total amount received by SVC clients was $1,501,537, while non-SVC clients received $338,556 During this quarter, no public-private partnerships were formed. Follow-up is 18 regularly done with authorities and personalities who had taken part in training sessions on public-private partnerships during previous quarters. 19 Annual 20 Annual 21 Annual In Q1 FY21, SVC organized two advocacy training sessions in Kalehe territory with 22 two associations (LIMA FAIDIKA of Minova and MAMA TUSAIDIYANE of Ihusi). 25 Data for this indicator will be available in the coming quarters. 26 Data for this indicator will be available in the coming quarters. This indicator is related to the organizations involved in production and or marketing of nutritional products. In Q1 FY21, a total of 21 SVC partners (70% of the annual 27 target of 30) were involved in production and sale of beans and soya. These partners include eight PO, six concessionaires, and seven associations of women bean and soybean sellers in Kalehe, Kabare, and Walungu territories. This indicator combines the results of indicator #5 (number of additional seasonal 28 workers created) and indicator #16 (number of agricultural borrowers receiving
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Indicator No Narrative credit with USG assistance). During FY 2020, 175 seasonal workers were female. The total number of program participants was 524 seasonal workers in SVC supported wet mills and seven borrowers. Females accounted for 33% (175 women) of the total participants in USG-assisted program designed to increase access to productive economic resources. 29 Annual During this quarter, no participatory conflict analysis were organized. This activity will 30 take place in future quarters.
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3.0 COLLABORATION
3.1 USAID IMPLEMENTING PARTNERS (IP) • Organizational overlap with the DFSA. Two-thirds (67%) of the 159 Community Based Organizations SVC counts as clients are also partnering with the DFSA. This overlap is 75% in Kabare territory, 68% in Walungu territory, and 58% in Kalehe territory, where the DFSA only work in Mbinga Sud groupement and not throughout the territory. • From February 2-14, 2021, FSP-Enyanya and SVC-Lima Faidika coached 241 members of 27 PO and 4 Youth Business Groups (YBG) in nine Health Areas (AS) in Kalehe territory. As a partner of FSP-Enyanya, World Vision co-facilitated and co-financed this activity. A total of 241 people participated 48% of whom were women and 41% youth. • From 15-19 February 2021, SVC’s Producer Organization and Cooperative Development Specialist facilitated a training of trainers for Food for the Hungry staff in Walungu. The TOT covered good governance, statutes and Règlement d’Ordre Intérieure (ROI), and organizational management. Three FH supervisors and 15 promoters participated in this TOT. Of these, 39% were women. • On February 2, 2021, SVC’s PHH specialist, gender component lead and assistant, and COP met with the value chain specialist and GESI team from Food for the Hungry (FH) TUENDELEE PAMOJA II to discuss the feasibility of GALS training and/or technical support for CMC affiliated producer groups supported by FH in Walungu Territory. SVC and FH met previously in Q1 FY21 to identify where SVC could support the capacity building needs of the newly created CMC committees in the areas of structure and functioning, strategic visioning, and governance. Gender focused activities are planned for Q3 FY21 • On February 24, 2021, SVC attended the inauguration of the CMC structure built by Food for the Hungry (FH) for the management committee in Kakono within the Nyalugana improved water management perimeter in Walungu territory. The chiefdom of Ngweshe and Conseil Agricole Rural de Gestion (CARG) of Walungu presided over the inauguration ceremony and launch of high-quality cassava flour brand, “Mema ya Kwetu”, in the presence of the provincial minister of agriculture, the Mwami of Ngweshe, local authorities, concessionnaires, and the local population. In Q3 FY21, SVC will provide capacity building assistance to CMC committee members in post-harvest handling and market linkage/diversification. • SVC asked Mercy Corps about cosponsoring the agribusiness access to finance forum, with Fund for the Promotion of Financial Inclusion in DRC (FPM). The forum will create a space for buyers and finance actors to confer and share practices, challenges, and knowledge of lending to the agriculture sector. Mercy Corps declined, opting instead to work closely with an MFI. Given this, SVC and FPM will split the costs of the workshop, scheduled for the week of 21 June 2021. • SVC and FH jointly assessed the quality and appropriation of the financial literacy training offered to VSLA and local MFI representatives in Walungu during Q1 FY21. The FH VSLA trainers carried out restitution and evaluation sessions with members of the VSLAs they’d assisted. Numerous recommendations for future training were promulgated including increasing outreach to all VSLA and developing modules for calculating interest compounding and share- out to VSLA members based upon their savings and the VSLA earnings from interest.
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) 13 • 18 young people (10 men and 8 women) trained in literacy by USAID’s Integrated Youth Development Activity (IYDA) who were interested in the coffee sector were connected to existing opportunities in coffee value chains and put in touch with SVC partner cooperatives in this sector, including CAPCKI, AMKA, AMANI, COCASKA, and SOPADE in the territory of Kalehe. These 18, along with staff from IYDA participated in the visit to a coffee washing station, gained a better understanding of washing station processing operations, identified Visit by IYDA youth beneficiaries to AMKA's economic opportunities within the coffee value Coffee Washing Station. Photo SVC. chain, and had access to contacts likely to connect them with seasonal jobs. • Two coffee cooperatives partnered with SVC committed to recruiting and hiring between 10 and 16 young people from IYDA programs in their respective zones from March, when the coffee campaign commences, through June 2021. The CAPCKI and AMANI cooperatives each prepared to welcome five to eight young IYDA graduates. SVC put its client cooperatives in touch with IYDA directly, creating a link for the monitoring of the activity’s impact and a link for future direct placement of qualified, interested youth. • In Q2 FY21, IGA and SVC met to develop a common approach and complementary actions in their support to CCPA/CARG. SVC will support CARG in their process of ownership and sustainability of the Market Information System (MIS). IGA’s support will help local authorities and SVC obtain feedback on the MIS from local populations. This feedback will help the local entity or chiefdom to make decisions and develop a MIS sustainability strategy. IGA will facilitate town hall meetings (Tribune d’Expression Populaire) between local authorities and civil society on MIS ownership and sustainability in their respective jurisdictions.
3.2 OTHER DEVELOPMENT PARTNERS • With IITA, SVC has identified the firm NODUMAX as a producer of rhizobium for soybean seed dressing in Ibadan in Nigeria. During Q3 FY21, SVC, IITA, and the Agricultural input boutiques (BIAs) will contact these firms to see to whether the BIAs can source from them. • SVC in collaboration with ELAN RDC, Programme de Facilitation de Commerce dans la Region des Grands Lacs (PFCGL), and International Alert facilitated a workshop from January 27-28, 2021 in Goma, bringing together associations and platforms of bean and soybean sellers from South Kivu (Walungu, Kabare, and Kalehe) and from North Kivu to exchange experiences and success stories. A total of 41 participants (14 men and 27 women) attended the workshop. The aim of the workshop was to promote small-scale bean and soybean trade through the exchange of ideas and networking between the associations and platforms of bean and soybean sellers in South Kivu and North Kivu. Discussions focused on bean and soybean supply systems, market opportunities for soybeans and beans, benefits to aggregated purchasing and joint sales, collaboration with government technical services, and the outlook for the bean and soybean market. At the end of the workshop, the ACT representatives from both provinces agreed to the following.
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Establish frank and transparent communication on the sale price and purchase of soybeans and beans. Strengthen the connection between the ACT South Kivu and ACT North Kivu. Advocate to the Congolese authorities (border services) to facilitate the entry of bean and soybean products into Rwanda across the borders of South Kivu. • With ELAN, continued collaboration on the Partnership for Gender Equity (PGE) pilot activity achieved the following: completion of the five gender training modules; a gender equity self- assessment by five South Kivu cooperatives partnering with SVC and five North Kivu cooperatives partnering with ELAN; the development of cooperative profiles and marketing materials; the publication of gender assessments to the Equal Origins framework for Market Linkages; and the development of gender action plans by the cooperatives to address weaknesses identified during their self- assessments. PGE and Perfect Daily Grind of the UK will co-host a webinar on the PGE pilot on May 5, 2021.
3.3 GOVERNMENT • As part of the ownership and sustainability of the MIS established through a local subcontract with the CCPA/CARG, SVC led a workshop March 2-3, 2021 to review the activity’s progress toward its operational sustainability. Co-facilitated by SVC’s Market Diversification and Policy and Trade Specialists, 21 people attended from the chiefdoms of Kabare and Kalehe, CCAC and CARG delegates from Kabare, Walungu, and Kalehe, and the market presidents of the six pilot markets1 that set up the SIM project. The workshop’s objective was to analyze the state of play and put in place strategies for MIS sustainability in the pilot markets of the three territories where the project is active. After analyzing the strengths, weaknesses, threats, and opportunities, participants offered their recommendations on making the ownership, sustainability, and perpetuation of the MIS effective. • The CQI level 2 processing training was conducted in partnership with ONAPAC. • SVC held several planning meetings with ONAPAC, OGEFREM, and RCPCA regarding the quarterly meeting of the Fraud and Harassment Alert Committee organized by ONAPAC in collaboration with the RCPCA. These quarterly meetings provide Alert Committee updates, an opportunity to discuss cases of fraud and harassment recorded during the previous quarter, and to refer those cases to the provincial authorities. • GESI activities undertaken in Idjwi territory were supported and welcomed by the Assistant Territorial Administrator in charge of finances (ATAF), who participated in workshops and field monitoring visits to at least three sites in Bugarula and Kihumba groupements, acting as a witness to the changes and progress made by SVC-trained GALS participants and cooperative members.
3.4 PRIVATE SECTOR ACTORS • AMSA provided technical assistance facilitating market links between the three PO supported by Mercy Corps (Nfunke ciza, Bololoke, and APDI) and IITA for the sale of 10 MT of bean seeds at a price of $1.20/kg. Having provided integrated technical assistance (monitoring, post-harvest
1 Kamanyola, Mugogo, Mudaka, Katana, Ihusi, and Minova.
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improvement, contract negotiation, market links and diversification, governance, determination of PO roles and responsibilities, etc.) since Q3 FY18, SVC has enabled AMSA to play the role of facilitator effectively. • SAICO, La Société Agro-Industrielle du Congo, signed a soybean procurement contract with SVC client CLD Birava on March 4, 2021 for 50 MT of soybean grain each agricultural season at $0.54/kg. SVC’s role was to provide technical assistance in the development of the contract’s terms and conditions, acting as a mediator during negotiations between the parties and monitoring compliance of the agreement during its current period of execution. • Through the Nespresso Reviving Origins collaboration in the coffee-growing regions of South Kivu Province in the Democratic Republic of Congo, SVC worked with five clients to process premium payments to over 2,500 producers and over 200 wet mill staff. • SVC collaborated with SUCAFINA and eight coffee washing stations to finalize contracts for approximately $87,250 in OPEX capital to the eight stations to purchase cherry. • SVC held a meeting in Bukavu with Tribeca, a South African based coffee company, interested in purchasing coffee from SVC client stations. • SVC assisted Mutombo Coffee to gain better understanding of the coffee sector, introducing them to exporters and key sector actors and drafting promotional profiles of four client stations. • SVC met with COCOI (Compagnie Congolais de Commerce et d’Investissement) a company that has recently invested in a long-term lease to manage dry milling at the ONAPAC offices in Kinshasa and Bukavu. COCOI will work with both ordinary and specialty coffee and has markets in Dubai. They propose paying around $2.40/kg of parchment for specialty coffee in 2021. In the future, they hope to provide working capital to coffee processors. Currently they are evaluating processing prices. • SVC also met with Felber & Associes and Ihusi Agro concerning their interest in investing in washing stations in South Kivu. SVC reviewed several drafts of the business plans and discussed aspects of their approach and available markets during a face-to-face meeting. The companies may adopt a concessionnaire approach for coffee production but are unlikely to launch coffee activities for the 2021 season. • The SVC A2F specialist provided support to OPEN SC and the AMKA cooperative to prepare the ground for using Mobile Money to pay NESPRESSO’s bonus payment to AMKA Cooperative’s members. SVC shared a contract model, cost information, and design advice with OPEN SC. The AMKA Mobile Money payment was launched in March 2021 for 25 of 33 planned coffee farmers in partnership of Orange Money in Minova area. The test, while ultimately successful, demonstrated the importance of proactive planning sensitization and training of coffee farmers to facilitate acceptance and appropriation on a larger scale. • A follow up meeting was held with Verdant Capital on March 15, 2021. Verdant Capital asked SVC whether clients still had unfulfilled financing needs for the 2021 coffee season. SVC shared contacts with Verdant Capital. These contacted included the President of RCPCA and COCOI who was interested in OPEX financing to operate a rented coffee washing station during this coffee campaign. Verdant Capital is interested in funding coffee actors directly or indirectly, leveraging existing mechanisms including the possibility of co-investing or taking equity positions in on-going coffee operations. • SVC trained 41 credit staff and branch managers, including three women, two new branch managers, and the FINCA Regional Manager from bank technical partners (FINCA and Equity Bank BCDC branches) in Goma and Bukavu. Training covered rules of the DFC guarantee’s
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contract and followed up on the credit provided under the DFC guarantee portfolio and on the contract requirements for the claim process. Equity Bank BCDC finished the mobilization of guarantee in December 2020, and FINCA is expected to fully mobilize the guarantee before June 29, 2021 (the contractual deadline date of credit placement under the guarantee). • Follow up virtual discussions were held with the Fund for the Promotion of Financial Inclusion in DRC (FPM) for partnership during FY 2021 to engender positive synergies in facilitating access to finance and funds for agribusiness in South-Kivu. FPM and SVC are considering co- sponsorship for the yearly forum/event on agribusiness access to finance.
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4.0 TECHNICAL ACTIVITIES BY PROJECT COMPONENT
4.1 COMPONENT 1: BUILD CAPACITY OF VERTICAL AND HORIZONTAL ACTORS IN TARGETED VALUE CHAINS 4.1.1 Introduction This was a busy quarter for the Component. The four sub-components collaborated effectively with each other and leveraged competence from three other components, Business Enabling Environment (BEE), Access to Finance (A2F), and Gender Youth and Social Inclusion (GESI), and articulated their work with both DFSAs. An external Business Development Service Provider (BSP), ASOP, provided proximal coaching in financial literacy and cooperative financial management tool conception and use. This quarter includes the A2020 harvest and the commencement of the B agricultural season, which correlates to the main bean production season in Walungu Territory and the coffee harvest and wet mill processing season across the project zone. Producer Organization and Cooperative Development activities focused on coaching in agribusiness and financial management in collaboration with FSP-Enyanya (World Vision) in Kalehe and on facilitating a training of trainers for DFSA field promoters of Tuendelee Pamoja II in the governance, structure, and functioning of producer organizations. The agricultural input specialist focused on documenting results from the A-Season seed multiplication and varietal demonstration plots and on the planting of soybean rhizobium trials for the B agricultural season. Collaboration continued with INERA and began to coalesce with IITA in the training of agro- dealers in the development of an enterprise balance sheet, cash flow analysis, business planning, and economic activity forecasting. The post-harvest specialist focused on training warehouse operators in the use and importance of management tools and business planning in conjunction with SVC’s A2F specialist but also monitored flows through client warehouses and participated in discussions with FSA TUENDELEE PAMOJA II concerning the management of the CMC and the capacity building needs to the CMC management committees. Under Market Linkages and Diversification, SVC undertook an effort to develop production cost models with client producer organizations and potential buyers and processing enterprises in order to facilitate the consolidation of win-win formalized contractual relationships. SVC facilitated a supply contract negotiation between an APEX producer organization (CLD Birava) and a soybean processor (SAICO), and a second one is under negotiation. Numerous meetings with sector actors were required for the implementation and monitoring of the Market Information System, identifying constraints and potential solutions, and undertaking the requisite discussions for the MIS to move toward operational
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sustainability prior to SVC closedown. Collaboration with concessionnaires continued, as did the tracking of market flows and market dynamics. SVC’s BEE specialist assisted in providing guidance on consensus building, taxation, and lobbying, while the gender team provided the Market Women’s Association of Minova with an empowered visioning exercise. The details of our work in building vertical and horizontal linkages between actors, particularly those active in the nutritive value chains, is detailed in the following section. 4.1.2 Key Activities Undertaken in Q1 Activity 1: Develop business-oriented cooperatives and producer / farmer associations Sub-Activity 1.1: Conduct training on a “paradigm of change”- Commercial Orientation From February 2-14, 2021, SVC and FSP-Enyanya, through it subcontractor World Vision, provided coaching in agribusiness and organizational financial management to 241 members of 27 Producer Organizations (PO) and four Youth Business Groups (YBG), hailing from nine health sectors in Mbinga Sud, groupement of Kalehe Territory. Of the participants, 48% were women and 41% were youth benefitted from. Having already provided support on branding, SVC provided tailored assistance to CIEJAD to amend their organigram and administrative and financial procedures manual. Sub-Activity 1.2: Training of Trainers in good governance, creating legal statutes and internal rules of order, and cooperative organizational management At DFSA TUENDELEE PAMOJA II’s request, SVC’s Producer Association and Cooperative Development Specialist facilitated a four-day training of trainers for three supervisory and 15 field staff (39% women) in rural adult pedagogy, cooperative structure, functions, governance and operations, and the creation of PO legal documents. The training was held in Mubumbano, Walungu Territory from February 15-19. Sub-Activity 1.3: Coaching in Financial Management, Tracking, and Reporting on the Financial Health of a Producer Organization This activity, facilitated by Business Development Service (BDS) provider ASOP, provided coaching to 41 leaders (including 17 women) of 10 community-based PO in Kabare, Kalehe, and Walungu territories. The table below details the themes developed by the APEX organizations’ clients with SVC and their subsidiary PO, as well as the disaggregation of participants by gender.
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Table 1. Summary of participants benefitting from coaching by BDS ASOP Q2FY21
Themes developed during Territory APEX & Producer Organizations Participants Total coaching Men Women participants Conception of: Kabare AMSA/ MAMAN BUNVIKANE 1 2 3 AMSA- APEX BOARD MEMBERS 0 1 1 1. Cash Flow IA-ZUKI/ MAENDELEO 4 2 6 2. PO Financial management CLD-BIRAVA/ OP AMANI 1 1 tools 2 a. Membership Register with CLD-BIRAVA/ AVEC PILOTE 1 0 1 reserve and annual PAV/ OP SYNERGIE TUUNGANE 1 1 2 contributions noted PAV/OP SYNERGIE MUNGAZO 0 1 1 b. Petty Cash register Kalehe UCOAKA/ COOACLWA 2 1 3 c. Sales Register UCOAKA/ OP COADC - AVEC 1 0 1 d. Inventory cards BARAKA e. Archive for Meeting Minute UCOAKA/ OP COADC 1 1 2 conservation UCOAKA/ OP COODAC BUJUKI 3 0 3 3. Balance Sheet SOLFAP/ OP UDD 1 1 2 4. The income statement SOLFAP/ OP MAENDELEO 0 1 1 5. Activity Plan Walungu IA-NKENGERO 6 0 6 CLD_MUSHINGA 1 3 4 DUBR/ APEX BOARD Members 0 1 1 DUBR/ OP GRENIER 1 0 1 DUBR/ AVEC DUBR 0 1 1 Total 24 17 41 The major observation made by the coaches is that there is little standardization in the design of PO management tools. Further, many of the PO do not regularly note transactions taking place with their inventory or warehoused stocks of goods and equipment. Many leaders struggle with basic math and are heavily reliant upon literate members of their organizations to register transactions. Often, this leads to a lack of transparency as the literate manager or accountant does not document transactions in real time but attempts to reconstitute transactions after the fact leading to lags, gaps, and errors. This contributes to a lack of trust between PO membership and their elected leaders. Sub-Activity 1.4: Monitoring the understanding of the Financial Education modules and the restitution by participants to their greater PO membership From February 8-12, SVC’s A2F Specialist and the AVEC specialist from DFSA TUENDELEE PAMOJA II undertook a joint monitoring visit with 27 leaders (including eight women) of 22 community-based structures collaborating with either SVC or the DFSA or both in Walungu Territory. Joining them was a delegate of the MFI COOPEC KAZIBA and four of FH’s field agents. SVC held sessions at the Nyalugana Parish and in the administrative center at Kaziba. Participants voiced their appreciation for the curriculum and its delivery. Key lessons learned include the following. • Limit member access to credits until after an analysis of the project has been undertaken and the creditworthiness of the applicant has been assessed. • Credit should be extended only for income generating activities, not for social needs. • Members will save more assiduously if they have a fixed objective in mind. A similar review was held with participants in Kabare and Kalehe during the reporting period. Recommendations from the participants included the following. • Train volunteers who can train and assist new VSLAs in the community at the end of the project.
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• Train all VSLA members given that restitution is less reliable and because certain themes such as budgeting are difficult to explain. • Repeat training regularly to improve member comprehension and appropriation. • Add training modules on calculating share out by VSLAs to their members to reduce conflict and confusion. • Assist VSLAs to create networks of technical resource advisors to monitor over-indebtedness of members and assist in resolving conflicts due member non-repayment of loans.
Activity 2: Q2FY 21 Activities specific to the bean value chain Sub-Activity 2.1: Promotion of the use of agricultural inputs Monitoring bean seed multiplication activities of four bean varieties from A2021 demonstration plots. Programme d’Appui aux Vulnérables (PAV) harvested enough foundation seed of the three improved varieties (24 kg @ 8 kg per seed variety) to outplant 0.5 ha during the B2021 season at a seeding density of 1 kg each for Moro, Marungi, and RWR 1668 improved bean varieties and 2 kg of the local control variety. Note that the control variety produced 15 kg of seed. SOLFAP and CLD Birava foundation seed multiplication activities produced respectively 1 kg per variety and 0.5 kg per variety from 300 gr of each variety planted. For SOLFAP this is enough to outplant 500 m2 in B2021. For CLD Birava. only 200 m2 can be out-planted. To increase the production of seed, it is suggested that 25 kg of pre-base seed be procured from the National Legume Program at INERA. If properly managed, this should enable the partners to produce roughly 80 kg of seed per variety, enough for a hectare, thus meeting the minimum criteria for SENASEM seed certification activities to begin. Monitoring demonstration plots of bio-fortified bean varieties Table 2. A2021 demonstration plots with concessionnaires planted to improved bio-fortified bean varieties produced the following results.
Area Kg Production Yield Territory Concessionnaire Site Variety planted Observations planted (kg) (kg/ha) (ha) Kabare Ihusi Agro Kayanja HM24-7 160 2 1,000 500 Sold as commercial beans (Bishweka) for consumption Kalehe FODDR Minova HM24-7 160 2 1,6002 800 In stock, of seed quality Minova HM21-7 3,902 3300 kg distributed to 391 women and 292 men, 550 kg in stock pending reimbursement to Harvest Plus (HP), 200 kg recovered by HP so far, as per agreement Walungu GAP/Kivu Kakono MAC-44 80 1 Not 158 kg reimbursed to available3 Harvest Plus.
2 FODDR planted 1 hectare in association with its coffee. The beans produced in this intercrop yielded 550 kg. Data on the coffee production is not yet available.
3 Harvested by Harvest Plus technicians, data unavailable at the time of reporting.
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The production was not at the level anticipated largely due to heavy rainfall during crop maturation that led to issues of pod fill. This was most apparent with GAP/Kivu in Kakono. Sub-Activity 2.2: Marketable quantity of beans stocked by SVC clients at aggregation sites and mean market values at A-2021 harvest SVC found slightly more stock in client aggregation warehouses following A-2021 harvest than in previous years (see Figure 4). Across three territories4, 15 clients increased the quantity of beans stockpiled from 79.86 MT in FY20 to 83.16 MT thus far into FY21, an increase of 4.1%. Mean market prices of beans increased by 3% across the three territories from an average of $0.99/kg in FY20 to $1.02/kg at harvest in A-2021. Market prices (see Figure Y) were highest in Walungu at $1.13/kg, an increase of 10.8% over the same period last year, while mean bean prices in Kabare dropped by $0.03/kg from $1.01/kg at this time in 2020 to $0.98/kg at the same time this year. Stockpiles in Kabare decreased by 14.1% over the same period last year, while those in Kalehe rose by 51.1%, from 6.79 MT in FY20 to 14.85 MT this year. A similar trend was noted in Walungu. where stockpiles of beans increased year on year by 119%, from 6.79 MT at this time in FY20 to 14.85 MT this year. Note that the primary bean production season in Walungu is the B agricultural season. This differs from Kabare and Kalehe, due primarily to micro-climactic conditions. Figure 4. Volume of beans (MT) stocked by SVC clients and mean sales price (USD) for Season A production 2019-2021
90 $1.20 $1.02 $0.99 80 $1.00 70
60 $0.80 $0.82 MT 50 $0.60 40 79.86 83.16
30 $0.40
45.53 20 $0.20 10
0 $- SA 2019 SA 2020 SA 2021
Quantity (MT) Price (USD)
4 Kabare, Kalehe, and Walungu
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Figure 5. Volume of beans (MT) stocked by SVC clients and mean sales price (USD) for Season A 2021 harvest, by territory
60 $1.25 $1.13 55.52 50 $0.95 $0.98 $1.00
40 $0.75
30 MT
$0.50 20
14.85 $0.25 10 12.79
0 $- Kabare Kalehe Walungu
Quantity (MT) Price (USD)
Sub-Activity 2.3: Evolution of Bean Sales by SVC Clients By the end of Q2 FY21, SVC clients had sold 71.85 MT of beans at a mean sales price of $1.02/kg a total value of $73,287 (see Figure Z). Clients in Kabare registered the highest volume of sales at 44.51 MT, and those in Kalehe the least at 12.79 MT. Sale prices were highest in Kalehe at $1.13/kg and lowest in Walungu at $0.92/kg. Kabare clients are benefiting from productive basins, good accessibility by road and boat, and the draw of the Bukavu urban markets. Kalehe is challenged by poor road infrastructure, fewer market outlets and lower population density. Production from Minova drains north to Goma, and much of Ihusi market’s beans draw from Katana or Kabamba, but the bridge outage at Kasheke means volumes are lower and moving at a higher cost than normal. Further, bean production in Kalehe tends to be oriented toward home consumption or the local market. Beans in Walungu are produced in the “B”, not the “A” agricultural season, due to altitude and micro-climactic conditions. Season A tends to be shorter and more subject to hail damage. Beans are usually imported from Rwanda and Burundi. Trade dynamics have been disrupted over the past year due to COVID restrictions. With the borders being closed due to COVID, the market women are sourcing from Kabare Territory and from the Bukavu market with stocks imported from North Kivu. Tight supply, with moderate to high demand, means higher price points in Walungu. It is highly likely that SVC is under-reporting this quarter due to challenges with data capture and validation of sales by the Association of Cross Border Traders and their affiliated Women’s Market Associations at the six key aggregator markets within the territories. We will present the data from ACT in our Q3 FY21 report.
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Figure 6. Volume of bean (MT) sold by SVC clients and mean sales price (USD/kg) by territory, Q2 FY21
50 $1.20
45 $1.13 $1.00 40 $0.98 35 $0.92 $0.80 30
25 $0.60 MT 44.51 20 $0.40 15
10 $0.20 12.79 14.55 5
- $- Kabare Kalehe Walungu
Sales Mean Price
SVC client beans sales have risen year on year from 25.7 MT at harvest of Season A 2019 to 71.85 MT sold from the Season A 2021 harvest during Q2 FY21. Quantities sold in Kabare decreased, while quantities sold in Kalehe and Walungu increased over previous years. Certain production basins in Kabare, notably in the zone of Luhihi, have been less dynamic this year due to the discovery of and artisanal exploitation of gold in both Luhihi and Kayanja. As noted in the previous section, late rains led to uneven pod fill and less than anticipated productivity. Figure 7. Volume of beans (MT) from Season A production 2019-2021 sold by SVC clients, by territory
60
50
40
30 MT
20
10
0 Qty Sold Qty Sold Qty Sold SA2019 SA2020 SA2021 Harvest Season
Kabare Kalehe Walungu
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Sub-Activity 2.4: Calculating production costs, understanding profit margin, and determining sales price points for negotiation for beans From late January until early March, six sessions were held with SVC clients throughout the project zone. In total, 216 people, including 92 women (43%), from eight APEX clients with signed MOUs with SVC, 96 PO members affiliated themselves with the APEX organizations, six concessionnaires and eight market women’s associations affiliated with ACT. Two processing enterprises (SAICO and AEFJVD) participated in real-time practical exercises to determine bean production costs, negotiate profit margins, and minimal acceptable sales prices for beans to bring buyers and sellers closer together in their negotiations. These exercises were undertaken to overcome the difficulties that past negotiations have had in moving from intention to operationalization. The calendar and a summary of organizations participating is presented in the table below. Table 3. Dates, sites and organizations participating in Q2 FY21 workshops on calculating production costs, profit margins, and projected sales price points
Apex Dates Territory Sites Concessionnaires Potential buyers organizations JAN 27- Kabare Birava CLD Birava SAICO, AEFJVID 28 Centre Women’s Market Associations Cikala, Rhuheke Kuguma, and Tuwe pamoja JAN 29 Kabare Katana/Le IA Zuki, AMSA Kivu Coffee SAICO rosier (Producteur/vendeur) AEFJVID Ihusi Agro (Producteur/Acheteur/Vendeurs) FEB 8-9 Kalehe Kasirisiru UCOAKA Sud Women’s Market Association: Tusaidiyane FEB 10- Kalehe Minova UCOAKA Concession Nicolas, FODDR Women’s Market 13 Nord Association: Lima Faidika FEB 26- Walungu Kamanyola DUBR Women’s Market 27 Association: Maman Mbegu MAR 5- Walungu Walungu CLD Mushinga, GAP Women’s Market 6 Centre IA Nkengero Association: Ntagoma, Rhuzusanye et de Mushinga
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Figure 8. Production cost, profit margin, and projected sales prices for Beans in USD/kg for SVC client APEX organizations and associated member PO
$1.20 $1.00 $1.00 $0.84 $0.84 $0.84 $0.84 $0.83 $0.83 $0.79 $0.78
$0.70 $0.70 $0.70 $0.70 $0.70 $0.80 $0.66 $0.65 $0.60
$0.40 $0.17 $0.14 $0.14 $0.14 $0.14 $0.14 $0.13 $0.13 $0.20
$0.00
Production Cost USD/kg A Profit Margin B Projected Sales Price A+B
From the figure above, we note that AMSA’s production costs for bean production ($0.83/kg) are higher than for APEX organizations. Furthermore, the production cost is higher in Kabare ($0.74/kg) Territory than in either Kalehe ($0.66/kg) or Walungu ($0.70/kg). The higher production costs are due to a number of factors. The costs for land, day labor, seed, and transport are higher than in Kabare than in the other territories, but the largest contributing factor to the high production costs are the low yields. Moreover, AMSA began as an association of certified seed multipliers, and true seed production brings added costs, due to land set asides and audit and certification fees. While AMSA and its members still sell a portion of their production to seed purveyors, most is destined for the commercial market, where their elevated production costs put them at a disadvantage. Producer participants admitted that because they do not take production costs into account, they often sell at a loss, letting the market dictate their sales price. They are also outcompeted by products coming from either Goma or Rwanda where, due to their higher levels of productivity, traders can undercut the local market based on volumes presented and active market demand.
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Figure 9. Estimated break-even transaction costs, profit margins, and projected sales pricing for women bean seller's market associations (ACT affiliates), beans / $ / kg
$1.00 $0.90 $0.91 $0.87 $0.81 $0.80 $0.76 $0.70 $0.75 $0.74 $0.74 $0.73 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Kavumu Centre Walungu Centre Maman Mbegu/Marché Cikala/Marché Mudaka Tuweumoja/Marché Ihusi Rhuheke Kuguma/Marché Tusaidiyane/ Marche Ihusi Ntagoma/Marché Mugogo Limafaidika/Marché Minova Rhuzusanye /Marche Walungu Kabare Kalehe Walungu
Break even price Profit Margin (20%) $kg Projected Sales Price $/kg
From the figure above, we can see that the break-even price points are highest for markets in zones legally recognized as rural communes or administrative centers for their respective territories: Kavumu, Ihusi, and Walungu Center. These are zones with both high demand and supply deficits. Market women face additional costs incurred by travelling to supply basins. The women of Ihusi must source from Kabamba or Katana or, at even greater risk, from the high plateaus of Kalehe. Activity 3: Q2FY 21 Activities specific to the soybean value chain Sub-Activity 3.1: Seed Multiplication/Demonstration Plots with Soybean varieties During Q1 FY21, SVC contracted with INERA to produce seed for four soybean varieties that either are not widely disseminated or that have lost their agronomic vigor over time. The four varieties are Imperial, SAGA, PK6, and Bossier. Late planting by INERA meant a late harvest of the foundation seed. Three SVC clients, including the Kivu Agricultural input boutique of Mudaka, agreed to partner to multiply the seed on their land. The partners and the quantity of foundation seed received are presented in the table below. Table 4. Variety and kg of foundation seed received, by partner
Kg of foundation seed Approximate land area SVC client Variety received (m2) DUBR (Kamanyola) Imperial 4 600 KAB (Mudaka) Bossier 5 800 PK6 5 800 Ihusi Agro (Kayanja) SAGA 45
5 Due to the late date when Ihusi Agro received their seed they were unable to plant for B2021 and plan to outplant the seed for the A2022 season.
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Sub-Activity 3.2: Demonstration Plots Soybean+ Rhizobium The tripartite collaboration between SVC, INERA Mulungu, and nine of SVC clients established 11 demonstration sites across the three territories during March 2021. IITA provided the NODUMAX rhizobium, while INERA provided the early generation seed of Imperial and SAGA varieties. Each demonstration site is three are (300 m2) and contains plots of each soybean variety with and without rhizobium. The varieties without rhizobium each occupy 0.5 ha, while the varieties with rhizobium each occupy 1 ha. The table below presents additional details about the demo plots. SVC expects preliminary results in Q 3FY21. Table 5. Sites of trials w/ GPS coordinates
Land area Territory Sites Client GPS Date planted Observations (are) Mweya CLD 3 are 2°21’40,30704’’S 03/09/21 BIRAVA 28°53’13,6’’E Alt 1,508m Bishibiro 3 are 2°.15’32.7’’S 03/10/21 28°48’39,2’’E KAB Alt 1,669m
Kakondo 3 are ND 03/10/21 Re-take GPS Kabare coordinates Kashusha PAV 3 are 2°.19’41,8’’S 03/10/21 28°48’17,3’’E Alt 1,704m Kayanja BISHWEKA 3 are 2°15'25.6''S 03/12/21 28°49'33,3''E Alt 1,654m Kishinji FODDR 3 are 1°.44’24.1’’S 03/03/21 29°01’15,5’’E Alt 1,740m Bulenga BWEMA 3 are ND 03/04/21 Re-take GPS Kalehe coordinates Minova SOLFAP 3 are 1°42’00.0’’S 03/05/21 29°01’25,1’’E Alt 1,479 m Kakono 3 are 2°42'08,7''S 03/16/21 28°46'18.7''E GAP/Kivu Alt 1,881m Bitesi 3 are ND 04/06/21 Planting delayed due to Walungu COVID Kamanyola DUBR 3 are 2°44'01,0''S 03/19/21 (GRENIER) 29°00'29.0''E Alt 961m
Sub-Activity 3.3: Soybean aggregation and warehousing Seven PO clients established soybean stocks of 75.04 MT from their A-2021 production and have stored this using improved post-harvest handling techniques promoted by SVC. These PO were principally in Kabare (72.44 MT), with smaller contributions from Kalehe (0.9 MT) and Walungu (1.7 MT).
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Figure 10 illustrates a time series of aggregation and stocking of A-Season soybeans with mean market prices for each season. The quantity stocked recovered from last year, increasing 118%, while prices have risen by 59%. At current mean market prices, the value of soybean in stock at the end of Q2 is potentially $81,043. However, this hides a market distortion, because the mean market price for soybean in Kabare, where 96.5% of stocks are located, is currently $0.58/kg. Two dynamics are at play here. First, the closure of the Rwanda and Burundian borders due to COVID has constrained soybean supplies. Second, new markets for DRC soybean are appearing, and processors are willing to negotiate supply contracts. 6This leads to increased incentive to aggregate and store to meet the terms and conditions of contracts being signed. SVC has assisted its clients to improve their post-harvest handling in order to maintain quality post-harvest but has also contributed to their understanding of production costs, market dynamics, and the difference between seed production, seed markets, and markets for commercial grade soybean. On the flip side, SVC has managed to create new market linkages between client PO and newly emerging soy processing enterprises seeking soy flour for fishmeal and chicken feed. Links have also been established and contractual negotiations are still on-going between PO and ACT- affiliated women’s bean and soybean market associations looking for soybean to compensate for volumes previously sourced across the border. Figure 10. Volume of soybean (MT) aggregated and stocked by SVC clients and mean market price (USD/kg) for Season A production 2019-2021
100 $1.20 90 $1.08 $1.00 80 70 $0.80 60
MT 50 $0.68 $0.60
40 $0.53 $0.40 30 20 $0.20 10 0 $- SA 2019 SA 2020 SA 2021
QUANTITE PRIX
Sub-Activity 3.4: Soybean Sales By the end of the reporting period, SVC clients had sold a total of 70.3 MT of soybeans. The mean price across our project zone was $1.08/kg, which averages extremely high prices in Kalehe ($1.50 kg) and
6 While SVC cannot take full credit for the increase in market opportunities, the activity may take credit for fruitful negotiations resulting in signed supply contracts and win-win pricing. Furthermore, SVC’s efforts in networking value chain actors and assisting to build familiarity and trustful relationships has led to opening more opportunities among actors at different points in our targeted value chains.
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Walungu ($1.20/kg) with the comparatively lower price of $0.58/kg in Kabare. The average price for all maize sold was $.61/kg. Figure 11 below illustrates this dynamic. The majority of sales (92.5% of value and 96.5% of volume) took place in Kabare. The total value of sales this quarter for SVC clients was $42,106. The relative scarcity and high prices in Kalehe and Walungu should provide great incentive for the women’s market associations to source from Kabare and resell soybeans in Kalehe or Walungu.7 Figure 11. Soybean sales (MT) and mean price (USD/kg) for Season A 2021 harvest, by territory
80 $1.60 67.14 70 $1.50 $1.40 60 $1.20 $1.20 50 $1.00
40 $0.80 MT
30 $0.60 $0.58 20 $0.40
10 $0.20 0.75 1.7 0 $- Kabare Kalehe Walungu
Quantity sold (MT) Price (USD)
Figure 12 below illustrates the trending of soybean sales volumes by SVC clients from A-Season harvest over the past three years. Sales that dropped dramatically in 2020 as markets dried up and the COVID emergency restrictions were imposed have now rebounded to pre-COVID levels as market women adjust their sourcing, previously obtained through cross-border transactions, back to supply basins within DRC. Furthermore, an easing on COVID travel restrictions and nascent emerging markets for soy as described previously, as well as efforts to improve seed vigor and growth potential through Rhizobium application demonstrations, will likely act as motivating factors for more production in the coming agricultural seasons.
7 Transport costs are high, especially when one factors in the illicit taxation still occurring. In the past SVC has documented Women Market Traders collaborating for bulked purchasing to reduce transaction costs. The data from the market sellers was not available in time for reporting but will be in our Q3 report. Informally SVC confirms that market women are adapting to COVID restrictions by working the differentials. Road conditions in Kalehe, especially between Nyamukubi and Kininzere are terrible. At least two market trucks have overturned, in one instance lives were lost including two women acting as agents for other market women. In the second instance there was no loss of life, but rather a substantial loss of market product.
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Figure 12. Volume of soybean sales (MT) for Season A production 2019-2021 by territory
80 69.99 70.27 70
60
50
40 33.01 30
20
10
0 Qty sold (MT) Qty sold (MT) Qty sold (MT) SA2019 SA2020 SA 2021
Kabare Walungu Kalehe Total
Sub-Activity 3.5: Calculating production costs, profit margins and projected sales prices of soybeans Producers and their APEX organizations Figure 13. Estimated soybean production costs, profit margins, and projected sales prices in USD/kg
$1.20 $1.12
$1.00
$0.80 $0.69 $0.62 $0.62 $0.60 $0.49
$0.40
$0.20
$0.00 CLD Birava AMSA DUBR IA Nkengero CLD Mushinga
Production Costs Profit Margin (est. 20%) Projected Sales Price+B1
Production costs and profit margins are highest at DUBR in Kamanyola, Walungu Territory. According to SVC clients, production costs in this zone have been more significantly impacted by the COVID pandemic and the State of Emergency declared in March 2020. Prior to COVID, when the Rwanda border was open, day labor cost $1/laborer per day. This has risen to an average of $3/laborer per day and as high as $6/day when demand peaks. Soybean Women’s Market Associations The following figure presents cost data for three women’s market associations engaged in soybeans. We note that the cost structures and projected sales price are closely aligned with Minova and Mugogo,
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while the cost structure for Rhuzusanye of Walungu Center is significantly higher (22% and 33%, respectively) than the other two markets. This is because the market women of Walungu Center often source their product from Mugogo. Mugogo and Minova, meanwhile, are feeder markets that source from Kabare and Goma, respectively, and then sell out to secondary markets in other groupements and territories. Figure 14. Estimated break-even points, profit margins, and projected sales prices for soybean by Women's Market Associations affiliated with ACVT, in USD/kg
$0.90 $0.80 $0.80 $0.70 $0.66 $0.60 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Limafaidika/Marché Minova Ntagoma/Marché Mugogo Rhuzusanye/Marché Walungu Centre Kalehe Walungu
Break even price USD/kg Profit Margin (20%) Projected sales price (USD/kg)
Women from the Lima Faidika market association in Minova found that they are not progressing with their businesses because their sales prices are not reflecting their actual costs. By trying to maximize their sales, they enter into competition with one another and end up selling below cost to liquidate inventory, progressively degrading their operating capital. Over half of the women from the Minova Market Association participating in SVC activities this quarter have less than 100 kg of stock available for sale. Facilitating Contract Negotiations for Soybeans After a long period of negotiations facilitated by SVC, client CLD Birava and SAICO, a soybean processing company producing both roasted soy and soy flour and renting warehouse and processing space from the Birava Parish, Kabare Territory, signed a supply contract on 4 March 2021. CLD Birava sought a guaranteed market for their 17-member organization’s soybeans and will now supply SAICO with 50 MT of soybeans in each agricultural season, a total of 100 MT per year. The soybean delivered by CLD Birava must meet the following technical specifications: • Variety: Imperial and PK6A • Impurity: 3% • Humidity: 12% at the reception • Sizing: preferably large seed • Unit of measurement used: Kg • Packaging: bag of 50kgs; jute or plain, no tears, with labeling using only a non-petroleum-based marking pen • Geographical origin: The soybean grain produced by the members within sub - structures which form the CLD Birava located in the 8 axes of production. SAICO will purchase the soybean at $0.55/kg delivered to their warehouse in Birava Center for a total of $55,000 USD.
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Technical assistance to the Association of Cross Border Traders (ACT) and their affiliated women’s market trader associations Building advocacy skills within co-ops and their ability to represent their members The project organized an advocacy capacity building workshop for women sellers of soybeans and beans in the territory of Kalehe so that they can effectively engage in dialogue with local authorities on recurring issues of taxes. SVC supported two training workshops on advocacy concepts for small bean and soybean traders, one in Minova from January 25-26 and the other in Ihusi from February 2-3, 2021. A total of 60 participants (58 women and 2 men), attended the two workshops, with 30 attending each. Participants identified the following problems they face in carrying out their activities. • Lack of a storage shed and displays for products • Lack of toilets in markets • Lack of water in markets
• Lack of garbage cans in markets Photo: Walungu Bean and Soybean Women's • Existence of parallel markets Associations at the Workshop on tax issues. Photo SVC. As a result of this workshop, participants committed to engaging with the relevant authorities on each issue to identify solutions.
Develop knowledge about trade regulations, taxation, and ways to report illegal taxes to better advocate with authorities and public servants.
During the SVC-supported trainings, a common theme has been that women selling beans and soybeans work in a very challenging environment due to the harassment and tax burden from the state services caused in large part by a lack of knowledge of the current tax system. This inhibits the growth of their business activities and their competitiveness in the market, raising transaction costs and creating uncertainty. Recognizing this, SVC facilitated an exchange workshop on taxes associated with market operations to finally raise awareness among the associations of women bean and soybean traders of the various taxes they are liable for, who should receive payment for these taxes, and how to engage with the local authorities about the challenges they encounter in carrying out their activities. The workshop was held in two phases, one in Kamanyola from March 16-17 and one in Walungu Center from March 19-20, 2021. Sixty members of the bean and soybean associations in Walungu (Kamanyola, Walungu Center, and Mugogo market) attended these workshops. Workshop participants exchanged information and experiences on the issues of redundant taxes and the harassment from public services. Discussions in the workshops focused on the following.
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• Bad behavior of some tax officials who bother sellers at the market level. • Payment of taxes without delivery of the correct receipt. • Lost revenue to the government resulting from illegal collection practices. • Creation of parallel receipt by some taxing agents. • Overlap in the collection of taxes of the chiefdom and those of other decentralized technical services working in the chiefdom (DPMR, Kamanyola Bean and Soybean Women's Associations at the Workshop on DGM, ANR, Anti-Fraud, Economy, tax issues. Photo SVC. Environment, DGDA, and Agriculture). • Cost of patent8 taxes. By the end of the session all the market associations had committed to pay the taxes legally and to engage in advocacy with the local and provincial authorities to reduce the price of “patent” taxes. The cost of these patents is $11, which sellers report as being very high relative to their revenue. In addition, participants recommended the following to the Chiefdom's Administrative Secretary. • Strengthen tax agents’ capacity on tax collection in order to reduce the harassment. • Rotate tax agents through different markets to limit the level of harassment. • Sanction tax agents who harass bean and soybean sellers in markets. • Have tax receipts printed and recorded by the chiefdom to avoid double taxation. Exchange Visit and Networking between ACT South and ACT North Kivu From January 27-28, 2021, associations and platforms of bean and soybean sellers from South Kivu (Walungu, Kabare, and Kalehe) and North Kivu held a workshop in in the main hall of the Planet Hotel in Goma to exchange experiences and success stories. SVC in partnership with ACT South Kivu supported the workshop, which was attended by 41 participants (14 men and 27 women). The ultimate aim of the workshop was to promote small-scale trade in the bean and soybean value chains through the exchange of ideas and networking between the associations and platforms of bean and soybean sellers in South Kivu and in North Kivu. Workshop discussions focused on the following. • Bean and soybean supply systems • Market opportunity available for the sale of soybeans and beans • Joint purchasing and selling systems and their advantages
8 The Patente is a license to trade or to operate a business. Often an annual tax, due to the difficulty uniting the entire amount at any one time, its payment is sometimes split and paid quarterly or semesterly. Market women also pay their daily market tax to sit at a table or occupy a space and sell. These taxes are sources of revenues for the traditional chiefs who manage the territorial entities under decentralization. One market actor called the weekly markets the GECAMINE for the Mwami, as the revenue from the markets provide a constant and rich cash flow for the Chief and, depending on his humor, his council of elders.
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• ACT's collaboration with state services • The outlook for the bean and soybean market At the end of the workshop, the soybean and bean vendors from both provinces all agreed to the following. • Establish frank and transparent communication on the sale price and purchase of soybeans and beans. • Strengthen the connection between the ACT South Kivu and ACT North Kivu. • Advocate to the Congolese authorities (border services) to facilitate the entry of bean and soybean products into Rwanda across the borders of South Kivu. The North Kivu ACT platform shared their successful experience in advocacy to the North Kivu provincial government for the reduction of the patent tax from $22 to $3. This reduction encouraged small traders to officially pay the patent, whereas in the past they would not because of the financial burden. Today, the province registers $180,000 in patent revenue. The small traders of South Kivu have committed themselves to initiate advocacy efforts on the patent issue in South Kivu. The next step will be the exchange of experiences and lessons between ACT South Kivu and ACT Rwanda to facilitate the entry of bean and soybean products along with other commodities into Rwanda from South Kivu. SVC will support this activity in collaboration with ELAN RDC, PFCGL, and International Alert. The ELAN project has already initiated preliminary meetings between ACT South Kivu and ACT Rwanda to prepare the activity. Gender and Social Inclusion-GALS Visioning From February 20-22, 2021, 33 members (including eight youth) of the Market Women Trader’s Association Lima Faidika of Minova attended a workshop to analyze opportunities and constraints faced when trying to advance themselves and their organization to improve the overall profitability and better represent the interests of women engaged in the bean and soybean value chains in and around Minova. By the end of the training session, participants had developed individual visions for their future success and a simple action plan for their association to achieve over the coming six months. This included the roofed hangar with raised tables to show their products in the market, and to protect women and their products from sun and rain. They anticipate mobilizing a minimum of 300 kg of beans for monetization to assist in financing the associations activities. In the medium term, they seek to capitalize their association by monetizing 20 MT of beans, using the money to procure land and build their own warehouse and office complex. Activity 4: Increase supply and demand for inputs Training of Agro-dealers From February 4-5, 2021 in Katana, SVC’s agricultural inputs and access to finance specialists facilitated a training of 16 participants (four women) from seven input dealers with signed MOUs. Training covered the preparation of annual income statements and business planning. Activity 5: Improve post-harvest practices and reduce post-harvest losses Monitoring of lessons learned and the application of improved management practices by actors of nutritious value chains • In Kabare, AMSA, collaborating with three PO assisted by DFSA-FSP Enyanya (Enfuka Ciza, Bololoke and APDI), began storing product from its member PO in the newly constructed
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warehouse in Kabamba. The three PO, who are effectively the managers of the warehouse in Kabamba, requested that AMSA assist them in identifying and diversifying their market linkages. To this end, AMSA has already facilitated sales of 10 MT of beans to IITA/Kalambo at a unit price of $1.20/kg. As of the end of March 2021, AMSA had 30 MT of beans and 10 MT of soybeans produced by its members in stock at the warehouse. • SVC’s activities promoting post-harvest handling improvements to maintain and, in some cases, improve upon the quality of harvested production coupled with the sensitization to aggregate member product for sale has resulted in an increase in product aggregated by AMSA. At this time last year, AMSA had 19.02 MT of beans and 2.15MT of soybeans aggregated. This year they have 30 MT of beans and 10 MT of soybeans. This is an increase of 57.7% for beans 365% for soybeans. Member confidence in AMSA has improved following the signature of the revised MOU with SVC. Further, INERA, sourcing from AMSA has noticed a net improvement in the seed they are procuring. Germination tests are greater than 80%, and the number of impurities found has significantly decreased because of AMKA’s application of knowledge imparted by SVC on drying, cleaning, calibration, and packing into sacks. • In Kalehe, UCOAKA/North has improved their record-keeping. Member confidence in the warehouse management committee has improved, and traffic through the warehouse has increased. In Q2 FY20 the warehouse had receipts of 302,000 FC (appx $151). This year for the same period, the warehouse generated 461,000 FC (appx. $231), an increase of 52.6%. During this past year, the warehouse has diversified its warehousing to include palm oil, salt, and bananas. It has also recently diversified to the sale of a limited number of agricultural inputs. • In Walungu, SVC client DUBR, applying lessons learned about the importance of diversifying warehouse revenue streams, has rented a portion of their warehouse to GIZ for $800 per quarter. GIZ uses the warehouse to store bean and maize seed as well as a collection of agricultural tools.
Technical Assistance for improved warehouse management Train warehouse managers on basic economic forecasting. SVC organized three training sessions, detailed in the table below, on elements of the balance sheet and economic forecasting. Real data from September 2020 – February 2021 were used. In some cases, enterprises used data from the three-month period from November 2020 – January 2021. Some initial results were as follows. • All the market women’s associations turned a profit during this period. • APEX PO producing seed were more profitable than those which focused on commercial grain. • Diversification of economic activities (livestock, carriage goods, forest products, etc.) and of agricultural production (beans, soybeans, maize, cassava, horticultural crops etc.) brings different revenue streams into play for a balanced cash flow, mitigated the possibility of seasonal losses. • Quality pays, and post-harvest conditioning and improved warehousing lead to disaggregated pricing. Higher quality products receive a 20-25% premium over ordinary production.
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Table 7. Territory, dates, and participants in workshops on economic forecasting held in Q2 FY21
Participants Territory Dates SVC clients Men Women Youth Total Kabare 3-9 Feb 9 33 45 (57.7%) 10 78 2 concessionnaires: Ihusi Agro, Cifende (30.3%) 4 APEX PO: PAV, IA Zuki, CLD Birava and AMSA 3 Market Women’s Associations: Mudaka, Kavumu, and Katana Kalehe 1-3 10 40 20 (33.3%) 13 60 March 2 concessionnaires: FODDR and Nicholas (21.7%) Bwema 3 APEX PO: UCOAKA N, UCOAKA/S, and SOLFAP 2 Market Women’s Associations: Ihusi and Minova 3 private warehouse operators Walungu 11-18 9 37 49 (57%) 20 86 March 3 concessionnaires : GAP/Kivu, Olive, and (23.2%) Cishebeyi 3 APEX PO: CLD Mushinga, DUBR, and IA Nkengero 3 Market Women’s Associations: Kamanyola, Mugogo, and Walungu Total 28 110 114 (51%) 43 224 7 concessionnaires, 10 APEX PO, 8 (19.2%) Market Women’s Associations, 3 private warehouse operators
Figure 16. Economic forecasting results
$7,000 $5,755 $6,000 $5,000 $4,000 $3,552 $3,000 $2,000 $761 $969 $728 $1,000 $306 $167 $260 $0 -$1,000 -$2,000 -$1,496 ACT Concession PO Kabare $3,552 $969 $306 Kalehe $5,755 $(1,496) $167 Walungu $761 $728 $260
Kabare Kalehe Walungu
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All actors made money according to the exercise, except FODDR in Kalehe, which lost $1,496 due to non-reimbursement of bean loans extended to its sharecroppers. The market women’s associations of Kalehe were by far the most profitable, due largely to the commercial volumes transacted in Minova. Profitability for the market women in Walungu was quite low due to the closure of the Rwandan and Burundi borders and the reduced activity at the mining sites, all due to COVID and the restrictions implemented to restrict its propagation. PO, as primary producers, made the least money across the board. Farming co-ops in Kabare benefited from an improved road network, proximity to Bukavu, and a number of growing rural communes with increased demand for product. Market Linkages The Market Information System Monitoring visits occurred to three of the six aggregator markets where the MIS system is being implemented by CCPA/CARG under a contract with SVC: Kamanyola (February 27), Mudaka (March 5), and Minova (March 1). Mugogo was previously visited. Observations from the visits were as follows. • Relations between producers and sellers have improved due to access to information on the prices of products displayed on boards at the Kamanyola market. • The products come from the different areas of the Ruzizi plain and the highlands to be sold on the markets of Kamanyola. • Thanks to the price information published on notice board, the Kamanyola market is currently frequented by a large number of buyers who come from Nyangezi and other circles to stock up. • The Kamanyola market committee increased producer and seller awareness on the use of metric weights (kilograms and grams) as standard units of measurement9. • Local radio broadcast awareness programs on the appropriation of price information displayed on the board and the use of the Kilo as a unit of measurement by sellers and producers. • The actors of Ihusi are positive on the sustainability of the MIS taking into account the proposals made on the contribution by the ETD from a percentage of the tax revenues of the market. • The interest shown by some buyers and sellers in MIS is gradually making it essential for arbitration between market players. • The interest shown by other organizations like World Vision, OXFAM, AVSI, and PICAGEL also gives hope for sustainability if the entrepreneurial aspect of MIS is promoted and the service is not perceived to be humanitarian in nature.
Facilitating dialogue with CARG (Kalehe, Kabare, Walungu) and CCPA on following SVC activities and implementation of Market System Information. SVC organized a session with CCPA and CARG to discuss SVC’s activities and progress on the MIS set up by CCPA/CARG with SVC support in six markets (Kamanyola, Mugogo, Mudaka, Katana, Ihusi, and
9 Currently, the market traders are using local, non-standard measurements, such as coffee cups, bowls, plastic basins, cans, bottles etc. They sell by volume and often add in a supplemental measure as a present after the price negotiation on the volume has been completed. Some of these dynamics were included in the Q1 FY21 quarterly report’s coverage of the methods market women were using to adapt to changing market dynamics during the COVID crisis. The market managers, CCPA/CARG, and ETD are trying to transition market traders to the use of standard weights and measures so that when one purchases a kilo at a particular price, one is sure to receive a kilo of the product being procured, and not some other weight. This standardization will assist in the negotiation of supply contracts, increase transparency in market transactions, and mitigate conflict that can arise between buyer and seller during market transactions.
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Minova). The activity at the Hotel le Rosier from March 2-3, 2021 was attended by 21 people, including the following. • Executive secretaries of the chiefdoms of Kabare and Kalehe • CCPA delegates • Delegates from CARG Kabare, Walungu and Kalehe • Presidents of six pilot markets implementing the MIS project At the end of the workshop, members of the CARG and the executive secretaries of the chiefdoms committed to being more involved in the ownership and sustainability of MIS in their entities. They decided to initiate a tax on agriculture products to support the sustainability of the MIS. The tax differs from territory to territory, but approximately 4-5% of the taxes collected per market day. Some ETD are experimenting with the collection of taxes for one of the 10 market products being surveyed, dedicated to operations of the MIS systems, while others are exploring dedicating taxes from one market day per month in one market. In the next phase of MIS (through September 30, 2021) the CARG & ETD will cover 30.8% of the cost, or approximately $8,539. CARG and CCPA agreed to use the same reporting format for SVC activities. They also determined that they would send copies of their reports to the chiefdom (local entity) and the provincial Minister of Agriculture. Information Generated by the Market Information System Below are two examples of the data generated for market prices of a bi-weekly basis for beans and soybeans, with mean price data for the market over the period presented. Figure 17 shows elevated beans prices over the period, which is normal given that it is a pre-harvest period when stocks are depleted and demand remains constant. Prices are lower in the Kamanyola market due to continued influx of product from Rwanda. Prices drop in December and January, corresponding to the new A-season 2021 harvest. Figure 17. Mean monthly bean prices by aggregator market (Fc/kg), South Kivu (Source: CCPA/MIS)
2,750 2,550 2,350 2,150 1,950 1,750 Fc/kg 1,550 1,350 1,150 950 750 Sep-20 0ct-20 20-Nov Déc-20 Janv-21 Fév-21 Mars-21 Avril-21 Month
Kamanyola Mugogo Katana Mudaka Kanjuki (Ihusi) Minova
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Soybean prices are fairly constant in all markets except Kamanyola and Kanjuki (Ihusi). Soybean production is rare in both of these zones whereas the other markets are close to production basins or, in the case of Minova, benefit from inflows of soybeans from North Kivu.
Figure 18. Mean monthly soybean prices by aggregator market (Fc/kg), South Kivu (Source: CCPA/MIS)
2,550 2,350 2,150 1,950 1,750 Fc/kg 1,550 1,350 1,150 950 750 Sep-20 0ct-20 20-Nov Déc-20 Janv-21 Fév-21 Mars-21 Avril-21 Month
Kamanyola Mugogo Katana Mudaka Kanjuki (Ihusi) Minova
Promotion of local market linkages To promote local links between PO clients and other actors within the nutritive value chains, SVC organized six sessions across the territories of Kabare, Kalehe, and Walungu during Q2 FY21. Table 8. Training sessions to promote links between PO clients and other nutritive value chain actors
Dates Territory Sites Participants Profile January 27-28 Kabare Birava Centre CLD Birava APEX PO SAICO Processor AEFJVID Processor January 29 Kabare Katana/le Rosier IA Zuki APEX PO AMSA APEX PO Kivu Coffee Concessionnaire Kivu Agro Concessionnaire Cikala Market Traders ACT Rhuheke Market Traders ACT Kuguma Tuwe umoja Market Traders ACT AEFJVID Processor SAICO Processor February 8-9 Kalehe Mbinga Sud/Kasirusiru UCOAKA/S APEX PO Tusaidiyane Market Traders ACT February 11-12 Kalehe Minova/Ziwa Hotel UCOAKA/N APEX PO FODDR Concessionnaire Nicolas Concessionnaire Lima faidika Market Traders ACT February 26-27 Walungu Kamanyola DUBR APEX PO Maman Mbegu Market Traders ACT
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Dates Territory Sites Participants Profile March 5-6 Walungu Walungu Center IA Nkengero APEX PO CLD Mushinga APEX PO GAP Kivu Concessionnaire Ntogoma Market Traders ACT Rhuzusanye Market Traders ACT
Conceived more as a B2B activity than a training session, SVC facilitation achieved the following results. Table 9. Results from market linkage facilitation
Commercial links Price Value Local Market negotiated in Result Chain Producers Buyers USD/kg Kabare Territory Beans AMSA -Cikala Mudaka Price IA Zuki -Rhuheke Kavumu negotiations Kivu Coffee Kugugu Katana continue -Tuwe Umoja - Ihusi Agro Kayandja/Bugorhe $0.90/kg In process Kivu Coffee AMSA Kabamba/Katana $1.00/kg 4 MT purchased Soybeans CLD Birava SAICO Birava $0.54/kg In process Kalehe Territory Beans UCOAKA/SUD Tusaidiyane Ihusi/kandjuki $0.70/kg 500 kg Contract UCOAKA/NORD Lima Faidika Minova $0.80/kg 3,150 under kg negotiation Walungu Territory Beans IA Nkengero Vendeurs de Kashundju $1.00/kg 875 kg Contract Mushinga under negotiation Concessionnaire Approach for inclusive, innovative and profitable agribusiness During this reporting period, SVC evaluated activities undertaken with GAP/Kivu, Ihusi Agro, and Olive and negotiated revised action plans and execution calendars with Gap/Kivu, FODDR, Nicholas Bwema, and Olive. As previously noted, the project assisted the concessionnaires in the evaluation of the production costs for beans and soybean and in the development of economic analyses of their nutritive crop activities, including calculating profit margins, break-even points, and projected sales prices. A number of concessionnaires agreed to participate in soybean seed multiplication and demonstration activities using Rhizobium. Table 10. Synthesis of activities.
N° Concessionnaire SVC Technical Assistance Outcome 1 GAP Action planning Chronogram validated Updating production costs, calculating 1 agent of GAP participated profit margins, and pricing beans and soybeans Market linkages B2B The GAP concessionnaire, through its delegate, was put in market contact with the actors involved in the soybean and bean value chain in the territory of Walungu: - Producers: IA Nkengero and CLD Mushinga
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N° Concessionnaire SVC Technical Assistance Outcome - ACT sellers: Ntagoma from Mugogo, Rhuzusanye from Walungu Center, and bean sellers from Kashundju market in Mushinga Session on outgrower contracting 1 agent participated Sharecroppers at GAP Jan-Mar 2021: Bitese: 1,426 sharecroppers of 3,550 expected Kakono and Cishi: 1,167 of 2,598 expected Seasonal jobs created for sharecroppers: Jan-Mar 2021 : plowing, semi, and weeding of fields Bitese: 272 sharecroppers Kakono and Cishi: 295 sharecroppers 567 seasonal employment opportunities created Soybean demo plots using Rhizobium Mar 2021: 2 demo plots installed Bitese: 3 ha Kakono: 3 ha Beans planting B-Season 2021 Kakono: 0,5ha Cishi: 0.5ha Bitese: not available A-Season 2021 beans harvest 203 kg 2 Ihusi Agro Updating production costs, calculating 2 agents from Kayanja participated profit margins, and pricing beans and soybeans Market linkages B2B Bean market monthly request for 4 MT available by Ihusi Agro for the producer organizations AMSA, IA Zuki, CLD Birava at the price of $ 0.90/kg Session on outgrower contracting 2 agents participated A-Season 2021 Planting at Kayanja • Maize: 1.0 ha • Beans: 1.7 ha • Soybeans: 1.0 ha • OFTT café: 1.0 ha
A-Season 2021 harvest • Beans: 1.0 MT after drying, threshing, cleaning, and sorting • Maize: 1.5 MT after drying, dehulling, cleaning, and sorting
B-Season 2021 planting at Kayandja • Beans: 2 ha Soybean demo plot using Rhizobium March 2021 : • 1 Demo plot set up at Kayandja; 3 acres
Creation of seasonal employment • Kayandja: 40 people B-Season 2021 • OFTT: 16 people • Sharecropping farms: 120 sharecroppers
Harmonization of activity schedule Activity schedule validated by the concessionnaire
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N° Concessionnaire SVC Technical Assistance Outcome 3 FODDR Updating production costs, calculating 2 agents plus the owner participated profit margins, and pricing beans and soybeans Market linkages B2B The FODDR concessionnaire was put in market contact with the actors involved in the soybean and bean value chains in the territory of Walungu. - Producers: UCOAKA Market Women’s Association: Lima faidika / Minova Outgrower contracting 2 agents participated
A-Season 2021 harvest Beans : 3.8 MT dried, conditioned in sacks Training session on economic profitability 2 agents participated
4 Nicolas Bwema Chronogram updated Updating production costs, calculating 2 agents participated profit margins, and pricing beans and soybeans Market linkages B2B Put in market contact with the actors involved in the soybean and bean value chains in the territory of Walungu. - Producers: UCOAKA -Market Women’s Association: Lima faidika / Minova Outgrower contracting 2 agents participated Allocating land to members of 35 people (20 women and 15 men), members UCOAKA/N of PO Tuungane Mkono, a member of UCOAKA North, rented land in Nicolas concession. SVC facilitated contract signing and negotiating reduced rental cost of land to $400/ha. Soybean demo plot soybean using 1 demo plot installed, Mar 2021: 3 ha Rhizobium Post-harvest improvement 2 agents trained 5 Kivu Coffee Updating production costs, calculating 2 agents trained profit margins, and pricing beans and soybeans Market linkages B2B A transaction of 4 MT of beans between Kivu Coffee and AMSA at a price of $ 1.00/kg (Feb 2021) Outgrower contracting 2 agents participated A-season harvest Beans: 5 MT dried, cleaned, and stocked under improved warehouse conditions Post-harvest improvement training 2 agents participated 6 OLIVE Chronogram updated A-Season 2021 harvest Beans: 913 kg dried, conditioned, cleaned, and in the warehouse Post-harvest improvement training 2 agents trained
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4.1.3 Activities planned for Q3 FY21 Producer Organization and cooperative development • Coach 576 individuals on paradigm of change: “commercial orientation”. • Collaborate with FSP to provide technical assistance to 24 Champions PO and 11 SVC PO. • Provide technical assistance to 24 Champions PO to submit bankable business plan to financial institutions (MFI or banks). • Train 81 SVC target partners in human resources and audit management. • Coach 20 PO in human resources and audit management. Increase access to improved agricultural inputs • Monitor demo plots on soybean varieties using rhizobium. • Train small-scale seed producers according to the identified and agreed upon topics. • Provide technical assistance to local private seed companies and small-scale seed producers. • Co-organize B2B events. • Facilitate access to credit by agro-dealers. Post-harvest handling and processing • Identify new soybean and bean value chain actors in Idjwi territory. • Improve post-harvest conditioning. • Follow up on lessons learned and application of improved management practices or technologies by actors in the nutritive crop value chains. • Train warehouse managers on basic accounting. • Coordinate exchange visit of FH CMC committee members in Kalehe territory. Market diversification • Support the development of innovative marketing models for bio-fortified beans. • Facilitate the signature of formal contracts between bean value chain actors. • Facilitate the implementation of a marketing model for beans. • Conduct SBCC awareness campaigns on the nutritional values of soybean and soybean-based recipes to facilitate utilization of soybean in the diet. • Support the development of innovative marketing models for soybean. • Facilitate signature of contract between IITA partners and soybean producers. • Train soybean value chain actors on negotiation techniques and contract farming. • Monitor MIS. • Facilitate market linkages between actors in the bean and soybean value chains. • Continue concessionnaires approach for inclusive, innovative, and profitable agribusiness. • Facilitate CMC/CPC market linkages.
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SUCCESS STORY FRANCINE CISHUGI PROMOTES GROUPED PURCHASING OF BEANS AND SOYBEANS AT THE MUGOGO MARKET DURING THE COVID 19 PANDEMIC OF 2020 Bukavu, South Kivu province in the Democratic Republic of Congo recorded, in March 2020, its first cases of COVID 19. The provincial authorities immediately implemented measures restricting the movement of people between Bukavu and the eight territories of the province to decrease the risk of viral propagation. Due to this, trade, especially of agricultural products in South Kivu were disrupted. Small scale market women supported by the Association of Small Cross- Border Traders (ACT) in collaboration with Feed the Future / RDC, Reinforcement of Value Chains (SVC) adapted to the situation by promoting Photo: Francine Cishugi in front of a bean stall at Mugogo market in grouped purchasing by market women. Here is the Walungu. (Photo: SVC) testimony of one of the pioneers of this system at the Mugogo market in Walungu, South Kivu. “Over the weeks following the government’s restrictive measures, we observed a decrease in the intensity of transport to our village and along our supply routes. The cost of transport almost doubled as the buses carried fewer people than usual. This made it difficult for small food traders in my area,” recalls Francine Cishugi. Francine Cishugi is a bean market seller at Mugogo market in Walungu territory in South Kivu. She is also the president of the “beans and soybean” sellers trade association in Mugogo and at the same time the president of the Ntagoma Mugogo Market Sellers Association with 60 bean and soybean sellers, including 40 women as members. Francine and the other small traders were worried. Their stocks of beans were decreasing and the cost of transport to zones where supply was available discouraged many of them. “Walungu territory produces less beans, and yet it is a staple food within our cuisine. Usually, we resupply in Bukavu from other vendors who procure their beans and soybeans from Kabare and part of Kalehe territories as well as from Rwanda,” explains Francine Cishugi. To avoid a bean shortage in the Walungu territory’s largest market, Francine Cishugi encouraged and convinced 14 colleague market sellers to adopt the system of grouped purchasing: “We decided to start sending three women once a week to shop for the whole group. We contribute for the transport of the delegates in proportion to the quantity ordered by each merchant. These three women travel with the addresses and contact numbers of the traders from whom to source and the specifics of the beans each merchant wished to procure.” she explains.
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Francine learned about the grouped purchasing system thanks to a collaboration between ACT, of which she is a member, and Feed the Future RDC, Reinforcement of Value Chains (SVC) Activity funded by the American people and USAID. The two structures support, through training, networking, facilitation of market links and access to finance, women and girls, small businesswomen, in South Kivu. Together ACT and SVC aim to improve living conditions and increase household incomes of economic actors operating in the bean and soybean value chains. For SVC, grouped purchasing reduces the movement of people and thus reinforces the government’s measures taken to limit the propagation of the COVID-19 virus. Bulked purchasing also reduces the costs associated with transport and the acquisition of goods. It also allows traders to discover the strength of working together and it reinforces cohesion and mutual trust between the market women, members of SVC’s client market women’s associations. “Buying together in bulk saved us some money. Before the aggregation of our purchases the women of our association each went individually to source their own supplies. Previously we spent a total of 24,598,000 Franc Congolais (FC)or $12,300 USD per week. Since we commenced our aggregated purchasing and empowered three people per week to shop for the whole group, we now spend 24,471,000 FC ($12,235 USD). Thus, we save 127,000 FC ($63.5 USD) per week, which is 9,070 FC per saleswoman. We’ve placed this money to our social fund and grant small loans to members,” testifies Francine Cishugi. As the results obtained to date suggest, this trend will continue and amplify. Francine Cishugi is already initiating sellers of other agricultural products who have joined her association to bulked purchasing.
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4.2 COMPONENT 2: ENHANCE COFFEE PRODUCTION
4.2.1 Overview The SVC Coffee Component focuses on the development of the high-altitude Arabica specialty coffee sector in South Kivu, encompassing the entire specialty coffee value chain in Kabare, Kalehe, and Idjwi (where ecological conditions are the most conducive to specialty coffee production), with an emphasis on improving specialty coffee productivity and quality. Agronomic Training: During Q2 FY21, the two-year, cohort-based Coffee Farm College (CFC) trainings for coffee farming households continued for the 2019 Cohort in Kalehe. In January 2021, SVC launched activities for the 2021 Cohort in Idjwi10. The 2019 Cohort in Kalehe has completed 17 training sessions on 13 topics. In total, 9,654 farmers from 8,256 households have attended at least seven out of 13 topics to date and can therefore be considered trained. Among the farmers trained, 49% are women. Of the 2021 Cohort, 7,485 producers completed training on composting and 8,278 on bookkeeping. Coffee Washing Station Support: In addition to increasing farmers’ knowledge of coffee agronomy best practices and tree productivity, SVC assists coffee processing enterprises to improve quality, efficiency, governance, operations, and transparency through targeted technical advisory services. In Q2 FY21, SVC supported 22 coffee processing enterprises with 41 washing stations (Annex 1) prepare for the 2021 harvest. During the quarter, 16 clients at 21 stations processed 163,135 kg of cherry (approximately 1.03 MT of green) during the short season, and by the end of the quarter, 23 stations had opened for the main season. Access to Finance: During the quarter, SVC continued to grow market linkages between specialty coffee buyers and South Kivu producers and processors. SUCAFINA expanded its previous working capital commitments from four clients receiving $47,0000 to seven clients receiving $88,275. Nespresso also pledged to source six containers from six SVC clients managing eight washing stations under its Reviving Origins Initiative in 2021. Eight coffee washing stations will receive an estimated $170,000 of working capital from Virunga and Nespresso through the coffee service provider (CSP) model. Three additional SVC clients have received financing commitments from SMICO, Equity Bank, and private investors totaling $559,840. Cupping and Quality: SVC coffee processing enterprises also received training and assessments throughout Q2 FY21 to improve the intrinsic quality of the coffee they process. In March, the SVC quality advisor trained 24 staff from four cooperatives on how to improve profitability through cupping of day lots. The training included a practical session on comparative analysis between investing in a mini tasting laboratory and testing samples of day lots with service providers and a session on costing the acquisition of quality control equipment at the washing station. SVC also hosted the Coffee Quality Institute (CQI) at ONAPAC for the CQI Level 2 Q Processing Training. Fourteen washing station managers and three SVC staff participated. This year, 47% of participants received their certification following the training, an increase of 33% from 2020. 4.2.2 Key Accomplishments Increasing coffee production • C2019 demo plot yield study launched at 28 sites in Kalehe.
10 The third cohort of the SVC Coffee Farm College will be called the 2021 Cohort, as per the FY21 SVC Workplan.
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• C2019 trained 8,256 coffee farming households, exceeding the target of 5,000 households trained in South Kalehe. • C2021 Cohort (Idjwi island) officially launched with 29 new farmer trainers (FT) completing farmer training modules on composting for to 7,485 producers (48% women) and on bookkeeping for 8,278 producers (48% women). • At 49%, women’s participation in the C2019 farmer Cohort training exceeded the target of 30%. Increasing coffee quality • SVC provided 22 SVC coffee processing enterprise clients11 with 41 washing stations with business advisory services, including finalization of business plans for the 2021 season. • 22 SVC clients have invested a total of $217,428 in wet mill construction and improvements in FY21. • SVC trained 24 staff from four cooperatives in improving profitability through cupping of day lots. • 14 coffee washing station staff participated in the CQI Level 2 Q processing training. Five of the 14 staff passed the training and were certified by CQI. All three SVC staff attending the training passed and were certified. • SUCAFINA is working with eight stations and providing a total of $88,275 in working capital to seven stations. • Nespresso and Virunga formalized contracts with six clients and eight washing stations to export six containers of coffee. • Nespresso and Virunga are providing a total of $170,000 in working capital to six coffee washing stations • $559,840 in financing has been committed to three coffee washing stations from financial institutions12 including SMICO, Equity Bank, and private lenders.
Activity 1: Increasing Coffee Production (Agronomy) 2019 Cohort Demonstration Plot and Farmer Plot Yield Study In late March, the program team began the demo plot yield assessment for the 2019 Cohort. The objective of this assessment is to understand the potential yield increase that small holder coffee farmer participants can be achieved in the short time since the program started by adopting the best practices taught during the Coffee Farm College (CFC).
11 One client was added, three clients did not progress on the implementation of their seasonal work plans and are not currently processing coffee, a fourth client decided not to renew their MOU with SVC.
12 SMICO (Société de Micro Crédit Congolais), Equity Bank and Private lenders
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Methodology The study will not be statistically significant or use random sampling. Rather, the yield will be measured from 28 SVC demonstration plots. Agronomy advisors and farmers selected demonstration plots based on the cooperation of the focal farmer and proximity to the farmer trainer, as both of them need to be present every time the field is harvested. Over the course of the next four months (April – July), the SVC team will harvest, weigh, and Photo: SVC Senior Agronomy Advisor Training Associate Agronomy Advisors on record the cherry volumes produced the yield study at a demo plot. by the central 18 of the 40 trees located in each of the 28 selected demonstration plots and repeat the exercise among 18 trees on each focal farmer’s field outside of the demonstration plot. The same trees will be harvested every seven to 14 days throughout the course of the harvest season, and the yields will be weighed and recorded, using a tablet-based survey, which enables the harvested weight to be photo checked. A cascade training approach was used to train Associate Agronomy Advisors and 28 Farmer Trainers on the yield survey methodology and data collection. Topics in the training included the following. • Purpose of the demo plot yield survey • Selection of the focal farmer • Introducing the demo plot yield survey to the focal farmer • Understanding the structure of the demo plot yield visit • Using the tablet 2019 Cohort CFC Training • Using the paper form Topics • Reviewing the visit • Practice completion of the demo plot yield visit with 1. Rejuvenation actual farmers 2. Pruning 3. Integrated Pest and Disease Coffee Farm College, 2019 Cohort Management 4. Composting The 2019 Cohort of the CFC launched in July 2019. Between July 5. Weeding and Intercropping 2019 to February 202113, 17 monthly training sessions were held, 6. Soil Erosion Control delivering 13 topics (Figure 1). In total, 9,654 farmers from 8,256 7. Record Keeping households have attended at least seven out of 13 topics to date 8. Coffee Harvesting and can therefore be considered trained. Of the farmers trained, 9. Nutrition 49% are women. The target for the 2019 cohort is 5,000 10. Mulching households trained at the end of the two years of Coffee Farm 11. Sustainable Coffee Production College. In addition, 14,427 farmers from 11,874 households 12. Coffee Planting have attended at least one training and are considered registered 13. Shade Management
13 The March training data is being back checked and will be included in the Q3 FY21 report.
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(a farmer or household is considered registered if they have attended at least one monthly training session). On average, each FFG consists of 44 farmers from 35 coffee farming households. The average age of farmers is 40 for women and 42 for men, with youth (30 years and younger) accounting for 27% of registered women and 26% of registered men. Please see Annex 4 for the 2019 Cohort Attendance Scorecard. Figure 19. 2019 Cohort Coffee Farm College attendance by month
Trainings for January and February 2021 covered integrated disease management and record keeping. Average participation in the cohort is 7,437 farmers month.
Figure 20. 2019 Cohort Coffee Farm College attendance by topic
Nine out of the 29 farmer trainers are female (31%). Male farmer trainers have a slightly lower average of registered farmers, a slightly higher number of trained farmers, and the same average of trained women farmers. The differences between male and female farmer trainers are not significantly different.
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Figure 21. Comparison of male and female farmer trainer farmer engagement
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CECILE RIVANGA (see photo), 61 years old, is a mother of 11 children (6 girls and 5 boys), living in the village of Nkubi groupement Mbinga Nord. Before joining the CFC, her coffee fields produced around 400 kg of cherries annually, which she sold for 300 FC/kg. With the approximately $60 she made annually selling coffee, she could not meet the needs of her household. Since joining the Farmer College group in Maendeleo / Nkubi and applying rejuvenation, pruning, mulching, and weed control in her fields, she has noticed a big improvement in the vigor of her coffee plants, increasing productivity, reducing coffee pests and diseases. In 2020, she harvested 720 kg of cherries and sold them to the KACCO washing station at 500 Photo: 2019 Cohort Farmer, Cecile Rivanga, on the farm with her FC/kg of cherry, earning 360,000 FC grandchild. ($180) for the season. The revenue allowed her to 'buy metal sheets to renovate her house roof and pay school fees for the family. She plans to buy goats for breeding and finish her house from sales after the upcoming season (July 2021).
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Coffee Farm College, 2021 Cohort The SVC Coffee Component successfully launched the 2021 Cohort of the Coffee Farm College on Idjwi in Q2 FY21. In total, 307 Focal Farmer Groups (FFGs) were created, exceeding the target of 300 groups, and 7,432 households were registered. SVC aims to train 5,500 households in the 2021 Cohort. In Q1 FY21, the Agronomy Team recruited an additional 29 Farmer Trainers (FTs) for the 2021 Cohort, which incorporated learning from the 2018 and 2019 Cohorts14. During the recruitment process, the FT candidates participated in a five-day agronomy best practices course, as well as a three-day rural adult learning method training session. As of March 2021, the Agronomy team has delivered two monthly trainings sessions to an average of 307 FFGs. The topics delivered include composting, and record keeping. The Coffee Farm College for the 2021 Cohort launched in January 2021. In total, 307 FFGs were trained on composting by 29 Farmer Trainers and supervised by six Agronomy Advisory staff. Tentative attendance data15 shows that 7,485 farmers (48% women), attended the
January and February monthly trainings on composting. Photo: Mr. Bahati Ngwasi Modeste from the FFG Majambere Of the 307 FFGs, 307 received the training. next to his compost pile. An estimated 8,278 farmers (47% women) attended the March training on record keeping. All 307 FFGs attended the March training. Activity 2: Improving the Business Enabling Environment The SVC project is removing obstacles to trade and investment, increasing public-private collaboration and shared vision, and encouraging sustainable focus on the significant growth and competitiveness that the sector can achieve. Support the implementation of South Kivu coffee sector strategy. As part of support for the dissemination and implementation of the coffee strategy in South Kivu, the SVC project through business advisors distributed the coffee strategy document to13 Cooperatives (Cooperative Mpozi , SOPADE, COACHA, Coopapp, CPCKA, Scpnck, Cocaii, Capcki, Socaska, Cocaska, Olame, Amani, and Amka), two private compagnies (Alpha New and Thomas), and eight concessionnaires (NAKEZA, KIVU-COFFEE, Justin Karayi, Rujicaf, Bishweka, Nicolas, Foder, and Changwe) who have signed an MOU with SVC.
14 Additional details can be found in the Q1 2021 Report.
15 There is always at least a one month of scheduled delay between the trainings in the field and the entry of attendance into M&E system. Unfortunately, back-checking for the Jan/February attendance data was delayed, so attendance data for all 2021 Cohort are tentative figures. We will have final numbers for the Q3 2021 Report.
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The project’s coffee component organized a workshop to build Business Advisors to supporting SVC clients. This forum was an opportunity for the Policy and Trade Specialist to present the work of Component 3. Before providing the coffee strategy document to the Business Advisors for distribution to cooperatives, the Policy and Trade Specialist held an introductory training session with the Business Advisors to better understand the objectives of Photo: Bukavu, induction session with SVC’s coffee business advisors. Component 3 with regards to the business enabling environment. As a cross-cutting component, Component 3 supports the work of SVC’s coffee component and nutritive value chains and facilitates improvements in the quality of public services to make these value chains more competitive in national and international markets. SVC had planned to support an ONAPAC mission to Kinshasa this quarter to present the strategy document to the National Minister of Agriculture and to the General Director of ONAPAC and to ask the Minister to integrate the strategy into the Ministry of Agriculture's national coffee program. The mission was postponed because of the absence of Government. It is now planned for the end of April, when the new government will be in place. Develop knowledge about trade regulations, taxation, and ways to report illegal taxes to better advocate with authorities and public servants To build cooperatives’ capacity to better engage with the Government on tax issues, SVC organized training sessions on advocacy for cooperatives in Walungu, Kabare, and Kalehe in Q2 FY21. The cooperatives appreciated the training on advocacy and requested SVC to facilitate dialogue between public sector officials and cooperatives on taxes issues. In response to these requests, SVC organized dialogue workshops this quarter on tax issues between cooperatives operating in coffee, bean, and soybean value chains and the public service providers (DPMER, Environment Division, and Chiefdom). The workshops took place in Kabare from February 26-27 in the conference room of FOMULAC Katana, and in Kalehe from March 5-6 at the Smart Hotel. The activities were attended by representatives of the following cooperatives: RAEK, TCC, CPCK in Kabare, SOPAD, KAZO, COPLACACA, RUJCAF, COCASKA, CAPSEKI, and AMKA from Minova. The objective of the workshops was to inform cooperatives about the application of taxes and to facilitate advocacy for the abolishment of redundant taxes and a reduction in public sector harassment. Presentations focused on developing understanding around tax concepts and the specific taxes that cooperatives must pay in accordance with the law to the provinces, to the chiefdom, and to the Central Government. DPMER’s representative emphasized that each tax is defined by the law, and that tax agents themselves do not decide how taxes are to be imposed. Further, a tax agent is not allowed to receive a cash payment from citizens or businesses because there is no proof for this payment. Instead, payments must be made through banks to generate this proof of payment.
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Introduce coffee pricing mechanisms and incentives for formal trade. During the quarter, SVC held several planning meetings with ONAPAC, OGEFREM. and RCPCA regarding the quarterly meeting of the Fraud and Harassment Alert Committee organized by ONAPAC in collaboration with the RCPCA. The purpose of these quarterly meetings is to provide Alert Committee updates, to discuss cases of fraud and harassment recorded during the previous quarter, and to refer those cases to the provincial authorities. The meeting of the committee was planned for March 31 but postponed by ONAPAC because the Director and Deputy Provincial Director were invited in emergency to another meeting in Goma, North Kivu. The committee decided to reschedule its meeting for April 15. Building skills and opportunities for Public, Private, Partnerships (PPP) The SVC Trade and Policy Specialist held several meetings with Marie-Paul Bishweka about her project to create a dry milling operation in Minova. Ms. Bishweka’s objective for these meetings was to receive guidance and advice from SVC before engaging with ONAPAC on a potential PPP. SVC discussed the business plan of the investment and provided technical advice. Building advocacy skills within co-ops and the ability to represent their members The SVC Policy and Trade Specialist and Gender Specialist supported Initiative des Femmes pour le Café Cacao (IFCCA), a platform for advocacy for women in the coffee value chain, to develop a draft of IFCCA’s strategic action plan. The strategic plan will be validated in this coming quarter with SVC support. This will allow them to better establish the vision and objectives of the platform. Activity 3: Improving Coffee Quality (Coffee Business Support) During Q2 FY21, SVC provided business advisory support to all 22 coffee processing enterprise clients on a combination of the following topics: (1) wet mill construction and machine operation; (2) business management and governance; (3) accounting and financial management; (4) coffee processing techniques and quality; (5) access to finance and markets; and (6) enterprise sustainability. FY21 SVC Wet Mill Client Overview In Q2 FY21, SVC supported 22 clients with 41 washing stations, a reduction from the 25 clients reported in the last quarter. Four clients that began working with SVC in Q1 FY21 will not be conducting coffee processing activities with SVC during the 2021 season.16 One new client signed an MOU with SVC during the quarter. The complete list of stations SVC client stations active for the 2021 season can be found in Annex 1. Construction and Machine Operations In preparing for the main season, coffee washing stations invest in new infrastructure or renovations. Investments include constructing new stations and/or adding modern pulping and fermentation tanks, grading canals, and drying tables. Since the beginning of FY21, SVC has supported 22 clients to invest $217,427.6117 in their washing stations. Examples of the technical guidance SVC provides clients include the following.
16 Three clients did not progress on the implementation of their seasonal work plans and are not currently processing coffee, a fourth client decided not to renew their MOU with SVC.
17 $116,680 in Q1 FY21 and $100,748 in Q2 FY21.
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• Selecting the construction site and providing guidance on the layout of the site • Sourcing materials for constructing drying tables • Installing drying tables, machinery, toilets, fermentation tanks, and separation canals • Installing cherry feeders to supply the coffee depulper • Warehouse construction and equipment to protect coffee parchment (pallet and other equipment) • Assisting washing stations adhere to USAID’s Environmental Mitigation and Monitoring Standards by helping them manage their wastewater and coffee pulp
Photo: SVC Client Infrastructure Investment - Fermentation tank and canal construction at Olame washing station on Idjwi. The significant investments. such as infrastructure improvement, made by SVC clients, for their businesses is an important measure of sustainability as it demonstrates their commitment to their business and a market-oriented mindset, moving away from direct assistance requests and expectations of handouts from development projects. Table 11. SVC Wet mill client investment overview
Value of New Station or Name of client Cohort 18Investment FY Type of Investment Renovations 21(USD) ALPHA NEW 2020 $1,280 ($450 in Q1) Renovations Fermentation tanks and drying tables
18 The total investment for Q1 and Q2 is before the Q1 investment in parenthesis.
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Value of New Station or Name of client Cohort 18Investment FY Type of Investment Renovations 21(USD) AMANI (CAEKAD) 2019 $8,252 ($4,336 in New Station Construction of new station and Q1) fermentation tanks AMKA 2019 $17,407 ($12,205 in New Station Construction of new station and Q1) fermentation tanks CAPACADE 2021 $2,035 ($730 in Q1) Renovations Drying tables (Dormant) CAPCKI 2020 $1,990 ($0 in Q1) Renovations Drying table construction and renovation CHANGWE 2020 $0 ($3,500 in Q1) Renovations Drying tables, machine maintenance, and construction of a storage facility CO.PLA.CA.CA 2021 (New) $0 ($1,500 in Q1) Investment in rented station COACHA 2021 (New) $11,340 ($2,506 in New Station Land purchase, construction of new Q1) station, drying tables COCAII 2021 (New) $32,767 ($26,280 in New Station Land purchase, construction of new Q1) station and storage facility, water sourcing, and drying tables COCASKA 2020 $1,035 ($478 in Q1) Renovations Drying tables CPCK 2019 $0 ($7,500 in Q1) Renovations Repairs to drying tables and fermentation tanks, investments at collection points/storage JUSTIN KARAYI 2020 $0 ($17,500 in Q1) New Station Construction of new station and fermentation tanks Kalambo One SARL 2021 $11,703 ($0 in Q1) New Station Construction of new station, depulpers, fermentation tanks and drying table KIVU COFFEE 2021 $9,128 ($4,500 in Renovations Drying tables (Dormant) Q1) LWABOSHI 2019 $0 ($610 in Q1) Renovations Drying tables NAKEZA (65ha) 2021 (New) $25,412 ($15,500 in New Station Construction of new station, Q1) fermentation tanks, and storage Nicolas 2021 $462 ($0 in Q1 Renovations Construction of drying tables OLAME 2021 (New) $5,779 ($3,712 in New Station Construction of new station and Q1) fermentation tanks RUJCAF 2019 $709 ($943 for Q1) New Station Construction of new station and fermentation tanks SCPNCK 2020 $8,135 ($750 in Q1) Renovations, Drying tables, depulper, fermentation New station tank SOPADE DUTU 2019 $0 ($11,800 in Q1) Renovations Drying tables
THOMAS 2021 (New) $3,420 ($1,880 in Renovations Drying tables Q1) $257,534 ($116,680 in Q1 and $140,854 in Q2, FY21)
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Figure 23: Coffee Washing Stations Status
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Figure 24: 2021 Infrastructure Investment
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Business Management and Governance Revenue Sharing: During Q2 FY21, SVC shared a recommendation on procedures for second payments with 13 cooperatives to be incorporated in their internal regulations. A total of four cooperatives (AMKA,19 CAPCKI, COCASKA, and SOPADE) have adopted the procedure, which will guarantee that 40% of the net profits will be repaid to producers as second payments. Business advisory staff also began working with cooperatives on strategic leadership. SVC has identified lists of three leaders for each subgroup of 30 producers. The three individuals are in charge of leadership, internal inspection, and training. Strategic leadership ensures communication and oversight at all levels of the cooperative and allows membership to respond quickly to mismanagement by leadership. Business advisory staff will train identified leaders on management, cooperative bylaws, and standards, as necessary. General Assemblies: CAPACADE, COCASKA, and OLAME held their General Assembly (GA) meetings during the quarter. The GA focused on the presentation of action and business plans20 for the 2021 season. SVC business advisor staff are invited to attend the assemblies as advisors and observers. The staff provide advice related to the action plan, business plan, or cooperative governance but do not make decisions or participate in votes by the GA members. Staff submit reports to the SVC shortly after the meetings. Business advisers have also supported producer organizations (AMANI, COACHA, CAPACADE, COOPAPP, COCAII, and RUJICAF) in receiving their administrative documents such as title deeds, opening bank accounts, registering with territorial administration, and requesting operating authorizations from the line technical ministries. In total, 2521 of the 26 clients with whom SVC worked FY21 have been registered with government agencies, such as ONAPAC, MINAGRIE, etc. Premium Payment Distributions: SVC also supported AMKA, CAPCKI, Lwaboshi/COCASKA, Nicolas, and SOPADE to plan and implement premium payment from Nespresso with Virunga Coffee. SVC supported the stations and cooperatives to send lists to Virunga, organize the events, and document payments made. For cooperatives, the entire premium payment of $0.50 was paid to producers. For the private wet mills, 40% of the payment was distributed to wet mill while 60% was paid to the station owner. A table with the payment information can be found below. Table 12. Premium Payment Distribution
Producer Organization # of Producers/Staff Total Payment amount AMKA 1,32022 producers (947 men and 373 women) $19,20023
CAPCKI 380 producers (262 men and 118 women) $4,800 LWABOSHI/SOCASKA 266 employees (118 men and 148 women) $5,000 ($3,000 to owner and $2,000 to employees) Nicolas 64 staff (36 men and 28 women) $2381 ($1,488.20 to owner and $892.92 to employees) SOPADE 818 producers (628 men and 190 women) $19,200 2,848 (1991 men and 857 female) USD $50,581
19 AMKA had completed second payments for $10, 524.06 to producers for the 2020 season
20 The plans developed in collaboration with SVC Business Advisory Staff.
21 The only client that isn’t registered is Ihusi Agro. They will not be operating in 2021.
22 25 producers participated in a mobile money payment with AMKA, Open SC, SVC and Orange Money
23 1,210.66 was paid to producers through mobile money.
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Loan Default: In March, CPCK failed to repay approximately $78,000 on a loan from Equity Bank. SVC led the facilitation of the board and audit committees’ CA and CS meeting for CPCK to prepare for the financial audit and better understand the deficit. SVC staff conducted a thorough review of CPCK bank and petty cash accounts and found approximately $52,000 of unjustified transactions for which CPCK has not been able to account. SVC held multiple meetings and advised the cooperative to hold a general assembly meeting and try to raise funds through membership fees. However, CPCK has not adopted SVC’s recommendations, and the MOU between SVC and the cooperative was not renewed. Equity has not foreclosed on the loan, as there is interest from one organization in renting the larger station, while a second investor has expressed interest in purchasing CPCK’s Lugendo station. CPCK has refused to conduct a Coffee Practices audit required by Starbucks, their traditional buyer, to purchase coffee for the 2021 season. Cooperative management remains evasive with project staff as well as lenders and refuses to hold a general assembly until they have found an external solution. Given this dynamic, the cooperative is likely to implode. They used their washing stations as collateral for the loan. The bank can repossess the stations and put them up for sale or can rent the stations to an interested party. The cooperative leadership is attempting to raise funds from their diaspora to reimburse the bank. They likely will not operate this season, and already farmer members are seeking alternative sales points for their 2021 harvest. Gender, Youth and Social Inclusion Pilot activity with the Partnership for Gender Equity (PGE) During Q2, SVC’s five cooperative clients24 participating in this pilot completed the virtual learning series modules and held a workshop facilitated by SVC GESI staff and community-based coffee business advisors. The workshop’s purpose was to discuss specific questions tied to gender equity in the DRC coffee industry, perform a gender assessment of their organizations, and develop action plans25 to resolve gaps discerned by the assessment. SVC assisted the cooperatives in developing their buyer profiles and having these posted with their gender equity scorecards to the Equal Origins framework for Market Linkages. A webinar with a buyer’s forum is scheduled during Q3FY21 in collaboration with Elan RDC and Perfect Daily Grind of the UK. Eleven members from the five cooperatives plus 5 community-based coffee business advisors participated in the workshop reviewing the VLS modules and discussing key questions. • Women’s participation in decision-making • Access to productive resources for women and youth • Management of coffee revenues and roles reserved for women • Women and Youth access to full membership in the cooperatives • Women’s representation and access to decision-making (leadership) positions within their cooperatives • Profitable markets for women’s coffee • Changes required to texts and policies within the cooperatives to promote better gender equity
24 Amani, Amka, Cocaska, CAPECKI, and SOPAD
25 These action plans are presented as Annex 5.
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A gender disaggregated breakout task for participants was to detail the most important learnings from the Virtual Learning Series and to note ideas still requiring further study, debate, or discussion. The results of this reflection are presented in the table below. Table 13. Reflections of Gender Equity Learning by SVC client coffee cooperatives member focal points, participating in the PGE pilot activity, disaggregated by gender.. Learning by Men Learning by Women • The need to integrate youth and women into the • Seeing that women can become full members cooperative as full members within a cooperative and can participate in and • Importance of increasing access to decision- benefit from capacity building activities of the making posts within the cooperative management cooperative • The questions surrounding what is “Woman’s • Focusing on gender in coffee made women feel Coffee”26 empowered, seeing that their contributions are • The difference between equality and equity as important and valued concerns gender, youth, and social inclusion • Accessing technology and receiving the video • Understanding that women and youth are capable training modules of VLS of pruning coffee trees • Youth, who were largely uninterested in coffee, have commenced taking an interest in the value chain • To see women who have been sensitized through the VLS begin to integrate the cooperative as members with full standing • The ability to discuss sensitive issues openly within a safe space. These issues concern women’s voice and participation in training sessions and membership for women and youth who are not owners of coffee plantations in the cooperative. • Seeing entire families working together in the coffee fields • Seeing woman pruning coffee in the video
26 Women coffee farmers are active at all stages of the coffee production chain providing the majority of the labor. Some studies indicate as much as 70% of the field labor is done by women. Yet men are most frequently responsible for delivering the crop to markets, completing the sale, and collecting the payment. Therefore, they have much of the control over the household income in many of the producing countries around the world. Women’s work in the coffee sector in many situations is unpaid and invisible. “Women’s coffee” includes coffee that is produced and processed by women, and milled, cleaned, and bagged as small batch lots with the revenue for sales reverting to the women coffee farmers. Part of the discussion is that women most often are not landowners and thus are currently excluded from full membership in the coffee cooperatives. The Initiative for Women in Coffee and Cacao (IFCCA) is affiliated with the International Women’s Coffee Alliance (IWCA) whose mission has been defined as “empowering women in the international coffee community to achieve meaningful and sustainable lives; and to encourage and recognize the participation of women in all aspects of the coffee industry”. IFCCA is an SVC client and has representation on the board of RCPCA. Women’s coffee has a niche market within the specialty coffee industry, and branding coffee as “women’s coffee” opens up new, more diverse markets for our coffee sector clients and can introduce premium pricing as well as market diversification for smallholder farmer cooperatives willing to invest in the disaggregation of day lots as defined above.
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Important, unresolved questions: Men’s Important, unresolved questions: Women’s reflections reflections • Integration of interested people who are not • Deeper knowledge of issues related to gender coffee plantation owners as members within our and gender equity cooperative • Defining gender policy for our cooperative • Need for greater capacity reinforcement (thematic diversity and frequency) by SVC • Assisting women and youth to become full members of our cooperative • Will buyer relationships established through SVC with implication of PGE continue after his season? Note that the cooperative self-assessments and gender action planning concerned the PGE focal points from each cooperative expanded to the entire cooperative board of each structurer. Thus, a total of 25 people from the five cooperatives participated in this activity. GALS with Cooperative OLAME of Idjwi From March 18-20, 41 members (15 men and 27 women, including 26 youth) of the OLAME cooperative of Idjwi participated in a gender action learning training designed both to develop their individual visions and a vision for their cooperative. The OLAME cooperative has 1,160 members. The 41 participants designated for this training were tasked by their organization to provide a cascading of their knowledge to other members, increasing the outreach and potential impact of the activity. Themes developed during the training included analysis of the specific constraints confronted by their cooperative. By the end of the training OLAME had a defined a common vision for their cooperative and had instituted an action plan for the integration of gender within their coffee business. Accounting and Financial Management During the short season, (October 2020 to January 2021), SVC supported nine clients (AMKA, CAPCKI, CHANGWE, JUSTIN KARAYI, NICOLAS, LWABOSHI, SOPADE, and NAKEZA) to improve their financial management by helping them use bookkeeping documents to track operational costs and coffee cherry purchases. All clients were presented with their forecast operating account for the 2021 season and their finalized business plan. To prepare for the main season, we delivered accounting books to 18 washing stations. Washing stations in their third year working with the project will purchase their own books for 2021. The bookkeeping training will take place in April 2021. Processing Techniques and Quality CQI Level Two Processing Training From March 15 – 24, Ephrem Sebatigita of CQI administered their Q Processing Level 2 training course, which supports coffee washing station personnel improve coffee quality at their stations. 14 wet mill staff active in the 2021 campaign were trained along with three SVC staff in coffee processing and quality control. Of the 17 participants, Photo: CQI Instructor Ephrem Sebatigita demonstrating the use of a refractometer to Level II 27 three were female, and six were youth. The training took Washing Station Management Participants, Bukavu place with the support of ONAPAC, as they have the March 2021.
27 SVC considers individuals under the age of 30 as youth
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mandate to regulate the exportation of coffee and other agricultural cash crops in DRC and SVC has an ongoing MOU with them. ONAPAC agreed to have the training on site at their Coffee Lab to allow participants to benefit from the coffee equipment (coffee laboratory and equipment). In addition, four ONAPAC staff participated in the training. The training aimed to empower participants on specialty coffee processing by providing the following modules. 1. Coffee processing in the context of the value chain 2. Harvesting of raw material and its characteristics 3. The anatomy of the coffee fruit and the comparison of processing methods 4. Pulping 5. Fermentation 6. Washing and removing mucilage 7. Drying 8. Parchment removal, storage, and defects of green coffee 9. Integrated quality control during processing 10. Problems in the coffee processing industry and a glimpse into the future Through practical exercises, participants familiarized themselves with the use of measuring instruments (refractometer, pH meter, thermometer, moisture meters, the maturity board, and fermaestro28) to measure various quality indicators throughout the chain of coffee processing activities from planting to export. They also learned techniques needed to calibrate and adjust the machines. After eight days of training, seventeen took a written exam and ultimately, eight participants passed, receiving the CQI certification. This is a vast improvement on the previous year’s students’ performance when most students failed the conversions and general knowledge tests. The training registered greater success this year because SVC tightened up participant criteria to require an upper level middle or high school education. Furthermore, we lengthened the duration of the training to permit more time for review and remedial exercises, principally on the conversions and the math needed to solve the conversion exercises, which were the stumbling block for participant certification in the past. Coffee Quality Control Training SVC conducted a training on coffee quality control for COCASKA, SOPADE, CAPCKI, and AMKA washing stations; six participants from each washing station attended29. The training focused on two main objectives: (1) explain the benefits of conducting cupping of daily coffee batches; and (2) showcase the need to have high quality control and laboratory equipment and in order to perform mini tastings at the washing station. The training was well received with the washing station managers showing keen interest in investing in coffee quality equipment. SOPADE stated that they will be procuring a moisture meter, pH meter, and cupping equipment in the near future. COCASKA, AMKA, and CAPCKI also indicated their intent to purchase small scale quality control equipment to test out in their respective washing stations.
28 A training tool used to measure the level of coffee fermentation in dry fermentation.
29 20 men, and 4 women; 5 participants under 30, and 19 over30
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Sustainability The SVC project delivers training, intensive coaching, and tailored technical advice on sustainability practices to washing stations. SVC’s sustainability standards cover the four following main themes. • Social responsibility and ethics • Occupational health and safety • Environmental responsibility • Economic transparency During Q2 FY21, SVC prepared for sustainability trainings and TASQ audits planned for Q3 including drafting of the TASQ audit questionnaire used by the auditor and the recruitment of the auditor. The value chain manager also worked with the regional sustainability team to update training documents and lesson plans for the trainings scheduled with the stations in April 2021. Anticipated trainings include bookkeeping, washing station management, cherry selection, and sustainability trainings. Access to Finance and Markets Since the onset of the program, SVC has supported client washing stations to access finance and markets through the introduction of several new coffee service providers (CSPs) including Nespresso, SUCAFINA, and Starbucks. During this quarter, SVC continued its collaboration with CSPs for the upcoming 2021 season. Nespresso, through Virunga Coffee, has signed formal contracts for six containers of coffee from SVC client stations in South Kivu through the Reviving Origins Initiative. To ensure these volumes are met, SVC clients can receive up to $170,000 of working capital from Nespresso. Final loan amounts will be disbursed based upon reporting and delivery to Virunga and will be tracked and reported in Q4 FY21. Table 14. SVC client financing from Nespresso.
Producer Organization Cherry target in kg Financing Amount AMKA 300,000 $45,000 AMANI 75,000 $20,000 CAPCKI 75,000 $20,000 Kivu Coffee 75,000 $20,000 Nicolas 75,000 $20,000 SOPADE 300,000 $45,000 Total 900,000 $170,000
SVC also worked with SUCAFINA to expand their sourcing from two to eight SVC washing stations. The financing table is found below. Table 15. SVC clients working with SUCAFINA and financing
Producer Organization Cherry target in kg Total Funded contract ALPHA NEW 75,000 $24,750 CAPACAD 42,500 $14,025
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Producer Organization Cherry target in kg Total Funded contract CHANGWE30 - - COACHA 40,000 $13,200 COCAII 40,000 $13,200 COCASKA 40,000 $13,200 COOPAPP 15,000 $4,950 RUJCAF 15,000 $4,950 Total 267,500 $88,275
Mighty Peace Coffee and EFFICO have also expressed interest in continuing to work with SVC clients in FY21. Mighty Peace has expressed interest in buying 200 bags from Lwaboshi/SOCASKA as well as coffee from AMKA and SCPNCK. Four clients receiving $559,840 funds from financial institutions and banks are found in the table below. Both AMKA and SCPNCK are likely to receive additional funds in the upcoming quarter. Table 16. SVC clients working with external financing
Producer Organization Source of Financing Total Funding AMKA SMICO31 $50,000 OLAME Muungano $50,000 SCPNCK SMICO $409,840 Thomas Equity Bank $50,000
Total $559,840 To promote SVC clients with no established buyers, SVC also developed washing station fact sheets for Mutombo Coffee and the Partnership for Gender Equity (PGE). Examples of the documents are found in Annex 3. Tribeca Coffee in South Africa, Mutombo Coffee, and Hosoe Caffe in Switzerland have all expressed interest in receiving samples from SVC producers. In March 2021, the Access to Finance Specialist assisted coffee cooperatives AMANI and COOPAPP in opening bank accounts with Equity/BCDC. Authorization for a third cooperative, CAPACADE, to open its account was still pending with the Direction of Equity BCDC/Kinshasa but should be active during Q3 FY21. Complementary information on active coffee sector loans and loan recovery by Equity/BCDC may be found in the chapter on access to finance. Activity 4: Coffee Research Seed sector development The seed sector development strategy had been decided in April 2018 via a consultancy from RD2 Vision. The major constraint was that there is basically no coffee seed sector in South Kivu. There is no
31 Société de Micro-Crédit Congolais
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information available about varieties at the nursery level nor at the farmer level. The idea of variety makes almost no sense in South Kivu because there is no verification, no protocol, and no place to get certified seeds. For these reasons, the seed sector development strategy does not try to get to perfect, rather, is focusing on improving what is currently in place and getting “to good”. The first step of the strategy was to identify pure variety lines through DNA analysis at the International Multi Location Variety Trial and the local variety trials with INERA from which we have installed seed lot for future seed production. The first seed lot plots was planted in October 2019 and the second in October 2020. These seed lot plots are well maintained at INERA, and trees are healthy and growing well. Weeding, fertilization, and phytosanitary control occurs in these seed lot plots. The goal is to have vigorous mother trees in the future. While the trees are growing in seed plots, the strategy provides guidance on improving nursery. The strategy seeks to create an environment where nurseries could buy certified seeds, understand how to advise farmers, maintain protocols to ensure the genetic purity of what they sell, utilize good agronomic practices, and follow a solid business plan. The preliminary step of the assessment was to identify the nurseries. Nursery identification and first assessment Nurseries were identified in Kabare, Kalehe, and Idjwi, and a preliminary nurseries assessment was done to understand how nurseries work, the challenges they face, and how to improve their practices. The nursery assessment was done by using the WCR Verified SM Nursery Plant Production guide. This assessment identified the need for training on different themes, especially on coffee varieties, seed quality control, seed traceability, and the importance of the nursery notebooks. Details on this assessment is included in the annex.
Photos: Zabuloni’s nursery assessment in Bugorhe Kashenyi village.
Nur sery training preparation Training preparation began with the translation of the nursery manual on good seedling production practices from English to French and Swahili. The translated version is now under review by SVC. Other training documents such as the variety catalog and a nursery booklet are under development and training videos, already developed for other projects, are being considered.
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Status of On Farm Technology Trials (OFTTs) and Multi-Location Agronomic Trials (MLATs) Maintenance of trials A network of 45 OFTT and 9 MLAT trials are installed in coffee farmers’ fields and at INERA with the goal of studying the profitability of different coffee farming systems. This quarter’s main maintenance activities in these trials are related to coffee fertilization, weeding, and intercrop planting. Partner agronomists (UCB and INERA agronomists) were trained on coffee harvest protocol to prepare the coffee harvesting, which begins in April 2021 for trials planted in 2018 and will be the first commercial production. Data collection The general objective of setting up trials is to study the profitability of commonly used coffee practices combined with improved new coffee varieties. The profitability is measured by examining the amount of labor used for each practice in comparison with the outputs of these farming systems such as coffee cherries, beans, bananas, etc. This quarter, data collected in trials are related to coffee fertilization amount, labor, and number of days for fertilization also data on labor for weeding and for intercrop crop planting. Vegetative data were also collected in MLATs in aim to study the adaptability of varieties in different agroecological area. Cleaned data are saved in the trials database and data analysis is Photo: Field visit at Justin KADAKALA’s OFTT at in progress. Kalehe Muhongoza village. The vegetative growth assessment in MLATs at 24 months (only for MLATs planted in 2018) are presented below. Treatments with the same letter in the group are not statistically different. Table 17. Vegetative growth assessment in MLATs at 24 months
Variables Groups Length of Treatment 1 Treatment 2 Treatment 3 Treatment 4 Treatment 5 Treatment 6 longest branch (cm) 80.25 68.62 62.85 62.44 69.71 68.39 “b” “a” “a” “a” “a” “a” Height of the Treatment 1 Treatment 2 Treatment 3 Treatment 4 Treatment 5 Treatment 6 main stem (cm) 158.8 139.37 131.57 133.16 145.55 139.88 “b” “a” “a” “a” “a” “a” Number of Treatment 1 Treatment 2 Treatment 3 Treatment 4 Treatment 5 Treatment 6 internodes on the longest 26.37 22.96 22.49 22.56 23.29 22.89 branch “b” “a” “ab” “ab” “ab” “a” Number of Treatment 1 Treatment 2 Treatment 3 Treatment 4 Treatment 5 Treatment 6 internodes on the main stem 26,37 22.96 22.49 22.56 23.29 22.89 “c” “ab” “a” “ab” “b” “b”
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Variables Groups Stem diameter Treatment 1 Treatment 2 Treatment 3 Treatment 4 Treatment 5 Treatment 6 (cm) 3.76 3.16 3.00 3.12 3.38 3.25 “b” “a” “a” “a” “ab” “a”
A significative difference of all the vegetative growth variables is observed when we compare the treatments. In short, the plants in the treatment 1 are slightly more vigorous than the plant in the treatments 2, 3, 4, 5, and 632. These are the same kind of results we observed for the 6 months and 12 months analysis. There is also a significative difference between growth variables when we compare sites see in the table below. Table 18. Difference between growth variables compared by site
Variable Groups IMLAT-DRC-1-001 IMLAT-DRC-1-002 IMLAT-DRC-1-003 Length of longest branch (cm) 56.88 74.27 74.98 “a” “b” “b” IMLAT-DRC-1-001 IMLAT-DRC-1-002 IMLAT-DRC-1-003 Height of the main stem (cm) 133.27 138.15 152.75 “a” “a” “b” IMLAT-DRC-1-001 IMLAT-DRC-1-002 IMLAT-DRC-1-003 Number of internodes on the longest branch 15.27 19.81 17.40 “a” “c” “b” IMLAT-DRC-1-001 IMLAT-DRC-1-002 IMLAT-DRC-1-003 Number of internodes on the main stem 24.11 24.28 21.88 “b” “b” “a” IMLAT-DRC-1-001 IMLAT-DRC-1-002 IMLAT-DRC-1-003 Stem diameter 2.37 3.76 3.71 “a” “b” “b”
The MLAT 3 is doing better than the MLAT 1 and MALT 2. The soil quality could explain this difference. The table below shows some of the elements of the soil analysis made before planting.
32 Treatment 1 is the control, which represents what farmers typically do. They grow coffee spaced at 2m X 2m and they fill the rows with beans. Most of the time the coffee is mixed with bananas and no fertilization is done. Treatment 2 is categorized by high labor needs, little cash, land extensive system, the major difference between them is the fertilization. Treatment 3 is studying the effect of a cover crop. Treatment 4 is characterized by the annual rotation between the cover crop and the beans. Treatment 5 uses inorganic fertilizer at the recommended rates. Treatment 6 used inorganic fertilizer mixed with some manure/compost.
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Table 19. Elements of the soil analysis made before planting
IMLAT Mn Cu Fe *C.E.C Ca:Mg pH P (ppm) B (ppm) OM % Ca % Mg % K % plot code (ppm) (ppm) (ppm) (meq/100g) Ratio
MLAT1 5.72 176.00 75.80 3.65 0.34 165.00 27.90 7,64 55.90 12.20 2.33 4.58 MLAT2 4.65 8.65 335.00 128.00 2.68 46.7 28.30 5.02 26.50 7.46 5.68 3.56 MLAT3 5.94 88.40 403.00 4.14 0.33 167.00 22.80 3.26 60.60 14.70 2.09 4.11 Soil quality at the sites for MLAT1 and MLAT 3 is better than the soil at MLAT2, which is acidic and with low levels of phosphorus, boron, and iron. The MLAT1 only has a deficiency in boron. Calcium and magnesium are balanced but in excess in both plots, and the potassium is in excess in the MLAT2. The Annual Trials The die back trial with INERA began in September 2019 and is still managed according to the established protocol. The vegetative growth data collection and the fertilization application have been done on time, and the harvest data collection is ongoing. The biopesticide test which was done last year with UCB should be repeated this year since the result of last year showed no significant difference observed between the different biopesticide treatments studied; therefore, it was planned to redo the study by adding the concentration of the different treatments. The establishment of this trial is in progress since we are in a period where the coffee diseases are at their peak. As a reminder the biopesticides product used in this trial are: • T1: control • T2: 200g chili; 5 kg tobacco, and 200g garlic in 20 liters of water • T3: 1 kg tobacco and 800g of chili in 20 liters of water • T4: 8 liters of liquid extract of thitonia diversifolia leaves in 20 liters of water • T5: 600g of bicarbonate in 20 liters of soapy water • T6: 700ml of myricca salicifolia extract in 20 liters of water Dissemination of New Coffee Varieties Authorization request to disseminate international varieties. Preliminary data analysis of the International Multi Location Variety Trial hosted at INERA has shown that varieties H1, EC16, Pareinema, Batian, Sl28, and Catigua MG2 are some of the best performing varieties in the trial. In aim to popularize these varieties and get them to farmers, we worked on the request of authorization from breeders to multiply and commercialize these varieties in DRC. This meant helping INERA develop a letter template to ask for authorization and then helping them to send the letters to the breeders of these varieties. Discussions and exchanges with other varieties owners continue. DRC Arabica Coffee Catalogue The first draft of the DRC arabica coffee catalogue was done and shared with INERA and ONAPAC for approval and inputs. The catalogue’s first draft contains only local varieties such as BM139, BM71, Jackson, Catimor, Mulungu, and Kabare 16. Once the authorization to multiply international varieties is obtained from breeders, this catalog will be updated, and these international varieties will be added to it.
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4.2.3 Key Activities for Q3FY21 Agronomy Training • C2019 Kalehe - Agronomy trainings on Weeding and Intercropping; Integrated Pest Management Review; and, Mulching Review • C2021 Agronomy Training on Coffee Harvesting; Coffee Nutrition; and, Mulching • Concessionaire Agronomy Trainings for agronomy staff for large land holders in Kalehe and Kabare
Support to Coffee Washing Stations • Bookkeeping Training at Coffee Washing stations • Sustainability Training at Coffee Washing Stations and development of Sustainability Action Plan • TASQ Sustainability Audits of all SVC client washing stations • Track wet mill business, operational and coffee quality progress for the 2021 season • Conduct over 400 cupping samples for SVC clients while supporting SCPNCK to operationalize the newly inaugurated cupping lab. • Maps of coffee quality for stations will be created using CPQI and cupping scores • Promotion of Coffee Samples with Falcon, Starbucks, Mutombo Coffee and others. Research • Review the Translated nursery manual in French and Swahili • Nursery training • Monitoring of research trials with data collection and analysis • Facilitate a workshop for the dissemination of research results with local coffee actors • Seek approval for inclusion of new coffee varieties in the DRC catalog
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SUCCESS STORY MEMBERS OF THE LOCAL BATWA COMMUNITY BENEFIT FROM COFFEE FARM COLLEGE TRAINING IN IDJWI Feed the Future is an initiative of the U.S. government implemented by USAID to end hunger and strengthen global food security. Since March 2017, USAID has funded the Democratic Republic of the Congo Strengthening Value Chains (SVC) activity, implemented by Tetra Tech and its sub-partners, JE Austin, TechnoServe, and World Coffee Research (WCR). SVC increases household incomes and access to nutrient-rich crops by connecting 15,000 farmers to strengthened and inclusive value chains, supportive market services and access to finance. The activities under Component 2: Improved coffee production, focuses on improving productivity and profitability in the coffee sector by strengthening farmers' skills in sustainable coffee agronomy, increasing efficiency and the transparency of coffee processing operations, while also improving the intrinsic quality of the coffee produced and processed. In Q2 FY21, the SVC project officially launched its third Coffee Farm College (CFC) cohort in the territory of Idjwi. The 2021 Cohort is comprised of 307 Focal Farmer Groups (FFGs) and 7,432 registered households. One of the FFGs, named Kahawa Rhuce Obukenyi, is comprised of the indigenous Batwa or Barhwa people of South Kivu and Idjwi. This indigenous community has been historically marginalized and have had limited to access to education and land. During the CFC outreach campaign and registration process, the Batwa community leaders were keen to join the SVC program to improve their livelihoods. “Through our participation in the trainings, we want to change the image that the other members of the community have of us (and cultivate on our farms),” stated 2021 Cohort farmer Muceza Bunyolange. The FFG, which is comprised of 19 members from 16 households, has successfully attended the first two trainings held on composting and record keeping. The group maintains a close relationship with their Farmer Trainer, Petro Ayala, who also lives in their village. They often request that she come visit them in the field to discuss their farms.
The Kahawa Rhuce Obukenyi group during the bookkeeping training
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SUCCESS STORY SVC’S PARTNERSHIP WITH OLAME COOPERATIVE ON IDJWI PROVIDES THE TECHNICAL SUPPORT NEED TO IMPROVED COFFEE QUALITY, ATTRACT INTERNATIONAL BUYERS AND ENGAGE YOUTH AND WOMEN IN THE COFFEE SECTOR Feed the Future is an initiative of the U.S. government implemented by USAID to end hunger and strengthen global food security. Since March 2017, USAID has funded the Democratic Republic of the Congo Strengthening Value Chains (SVC) activity, implemented by Tetra Tech and its sub-partners, TechnoServe and World Coffee Research (WCR). SVC increases household incomes and access to nutrient-rich crops by connecting 15,000 farmers to strengthened and inclusive value chains, supportive market services and access to finance. The activities under Component 2: Improved coffee production, focuses on improving productivity and profitability in the coffee sector by strengthening farmers' skills in sustainable coffee agronomy, increasing efficiency and the transparency of coffee processing operations, while also improving the intrinsic quality of the coffee produced and processed. In September of 2020, SVC expanded its business advisory and agronomy trainings under the coffee component to the Island of Idjwi. Centered in the middle of Lake Kivu, the island is home to over 10,000 coffee producers, five coffee cooperatives and over 20 coffee washing stations. One of the first potential clients to welcome SVC to Idjwi was the OLAME cooperative. The cooperative was founded in November 2019 by 16 farmers who came together to improve the living conditions of coffee growers on the island. Olame had previously reached out to SVC in March 2020, seeking support with the many challenges they have been facing including: infrastructure improvements at washing stations, improving quality of washed coffee, access to finance, organizational management, and organic certification. Before the SVC project, the OLAME cooperative carried out the fermentation, washing and separation of grade in plastic basins and tank, the washing station only had 7 drying tables of 10m / 2 and a small deposit. Since the signing of the MOU between SVC and Olame in November 2020, the project has supported Olame to develop a business and activity plan, which includes improvements in infrastructure of the washing stations. SVC assisted Olame to organize the first general assembly on March 7th, 2021. During the assembly the cooperative discussed the achievements, plans, challenges and opportunities. Olame also handed out prizes such as farm tools to coffee growers that were the best in delivering cherry during the 2020 season. The work plan process and general assembly have facilitated Olame to mobilize $5,759 from its members for the 2021 season through membership fees and internal financing. The money has mostly been used for infrastructure investments at the station including: 4 fermentation tanks; 15m grading canals; installation of a waste water plumbing system and pits for cherry waste; a new 500kg/hr pulping machine; 18 20-meter drying tables; two shaded pre-drying tables under a hangar; and an improved stock room capable of storing more than 10 tons of parchment coffee. These investments will improve coffee quality and volumes and facilitate better grading of coffee, which is often a pre-condition required by international buyers. Prior to the support of SVC, the Olame Cooperative carried out fermentation,
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washing, and grade separation in plastic basins and tanks, processes which are far more labor intensive and results in inconsistent coffee quality.
Photos of the newly built washing station in Bukumbi, Idjwi Territory compared to the station before the partnership with SVC
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Photos of the GA during the distribution of farm tools to the best coffee growers-deliverers Beyond holding a General Assembly and Collecting membership fees, Olame is deeply committed to good governance. Olame has launched policies aimed at integrating women and youth into the cooperative (within the board of directors, supervisory committee, and management team). Equally, in order to ensure efficient communication to its members, Olame has begun formed social network groups of 30 coffee growers per group. These groups will be responsible for sharing information and training updates between members, collecting cherries, participating in organic certification, and collecting and distributing funds between members through the VSLAs (village savings and credit association). Ghislain MUPENZI, Chairman of the Board of Directors at OLAME enthusiastically stated, “without the technical support of SVC the building of this station would not have been possible; and with this investment and continued support from SVC, Olame will improve our coffee quality, access international markets, and supervise our members to adopt best coffee practices with an eye for organic certification.” SVC has already begun to support OLAME’s vision to become the largest cooperative in the Idjwi territory, with a long term goal to build three large washing stations in the Rubenga chiefdom to promote youth and women in the coffee sector on Idjwi.
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4.3 COMPONENT 3: DEVELOP AND IMPLEMENT PUBLIC PRIVATE PARTNERSHIPS (PPPs) 4.3.1 Introduction Component 3 of the SVC project supports private sector stakeholders in the coffee, bean, and soybean value chains to develop dialogue with government to improve the quality of the business enabling environment, to encourage business development and investment, to increase market access and trade, and to improve the competitiveness of these products at the national, regional (cross-border) and international level. This component has continued to implement activities despite the difficult context created by the COVID-19 pandemic. Component 3 carried out the following activities during the quarter in support of the other components of the project: • Support the development and implementation of the strategic plan for the development of the specialty coffee value chain. • Introduce coffee pricing mechanisms and incentives for formal trade. • Increase formal cross-border trade for target value chains. • Build advocacy skills within cooperatives and their ability to represent their members. • Develop knowledge about trade regulations, taxation, and ways to report illegal taxes to better advocate with authorities and public servants. • Build skills for PPPs and create potential opportunities for PPPs. As activities under this component are cross-cutting and related to actors intervening in targeted value chains, the discussions of these activities have been integrated elsewhere within this report. 4.3.2 Key Activities planned for Q3 FY21 During the next quarter, the component plans to implement the following activities. Coffee • Present the coffee strategy to the National Minister of Agriculture and advocacy for its inclusion in the national coffee program (Mission to Kinshasa, Preparatory Meeting, Restitution Workshop) and Advocacy mission on FONADA with the RCPCA. • Hold quarterly meeting of the Anti-Fraud and Harassment Alert Committee to identify new cases of fraud and harassment during the quarter. • Support IFCCA to validate their strategic and action plan. • Support the general assembly of RCPCA. • Hold PPP conference on agriculture and coffee investment to discuss on the investment in the coffee value chain and how to identify and develop PPP opportunities. This conference will likely be attended by Cooperatives, National Minister of Agriculture, National Minister of Trade, National Minister of Plan, Investors, Banque, financial institutions, and coffee cooperatives. • Build capacity on advocacy with owners of washing stations from Kabare, Walungu, and Kalehe. • Develop two case studies: ‒ The impact of the coffee value chain and its potential contribution to the development of the province of South Kivu province ‒ A video with interviews and testimonials from the beneficiaries of the project activities (RCPCA, ONAPAC, the associations of women bean sellers, and soybeans) on improving
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competitiveness and contributing to the development of the province's economy through mindset and behavior change following the support of the SVC.
Beans and Soybeans • Hold exchange session between the ACT South Kivu and ACT Cyangungu/Rwanda. • Hold public-private dialogue session between ACT and local authorities on taxation in Kabare and Minova. • Hold dialogue and experience exchange sessions between women's bean and soybean sales associations in Kabare, Walungu and Kalehe. • Conduct workshop on advocacy between the ACT and its affiliated Market Women associations of bean and soybean traders) with Provincial Minister of trade and agriculture about patent taxes.
4.4 COMPONENT 4: ACCESS TO FINANCE (A2F) 4.4.1 Introduction During this reporting period, the Access to Finance Component of SVC concentrated its efforts on four key areas, as follows. • Support to coffee clients in the preparation of their business plans and financing needs for the 2021 main coffee harvest/processing season • Monitoring the repayment of the 2020 coffee loans • Training: ‒ 41 credit staff and branch managers, including three women, from FINCA and Equity BCDC on the DFC guarantee’s rules with special focus on the monitoring of active credits and the claim process for unpaid debts ‒ 12 SVC business advisors, including two women, in the technical assistance required to prepare and execute a successful mobile money payment experience and in seeking and negotiating business funding from potential investors • Managing the BDS subcontract with ASOP providing coaching in accounting and financial management to 42 community leaders, including 18 women, from ten SVC Producer Organization clients active in the bean and/or soybean value chains in Kabare, Kalehe and Walungu Supplemental to this assistance, the A2F specialist also undertook the following. • A new MOU was negotiated with Equity BCDC and two Micro-Finance Institutions in South Kivu, PAIDEK and KITUMAINI. These MOU will enhance agricultural lending practices and policies in South Kivu in the absence of an active DFC fund and promote the connection of the Community based VSLA and client producer organizations with local Micro-Finance Institutions to augment the security of VSLA/PO funds and diversify the financial products open to their respective memberships. • Discussions were facilitated with FPM to co-sponsor a proposed forum to be held in South Kivu with the objective of increasing agribusiness access to financing.
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4.4.2 Key Activities undertaken during Q2FY21 Supporting the improved supply of financial services Efforts this quarter focused on ensuring Equity Bank’s continued engagement to financing coffee sector actors when their access to the DFC guarantee mechanism concludes at the end of June 2021. The bank has expressed their willingness to use supply contracts from international buyers and a client’s established credit history as collateral for OPEX financing. During Q2, Equity Bank holdings began their merger with the Commercial Bank of Congo (BCDC). This is a long and complex process and it delayed certain collaborative activities with SVC due to restructuring of the bank’s board of directors and staffing in the Kivu Region. Provide technical assistance to Equity Bank Renewal of SVC’s MOU with Equity bank took three months. It was finally signed on March 18, 2021. The Director of Agricultural Credit at Equity/BCDC appreciated the support offered by SVC under the MOU and requested that SVC extend its assistance to their new branch offices in Beni and Butembo in North Kivu. This request will remain pending and will require discussions between SVC, USAID, and the bank, especially in the context of the newly financed INVEST initiative. Training of Equity/BCDC staff Eleven staff members, including one woman, were trained in the rules governing loan recovery of funds lent under the DFC. Reviewing maturity dates and monitoring loan repayments by organizations who have received loans via facilitation by SVC33 A summary of the situation is presented below. PAV is an SVC client producing and selling bean, maize, and soybean seed. A loan of $11,000 was reimbursed in full on February 1, 2021. Repayment was two months past due, but PAV had negotiated extensions to their original repayment plan, so no penalties were assigned. After this first experience, PAV did not wish to contract for another loan, though Equity/BCDC was open to doing so. Muungano, Rebuild Women’s Hope (RWH), and KACCO reimbursed their OPEX financing loans received for the 2020 coffee campaign on time and without difficulty. RWH has secured OPEX financing of $150,000 for the 2020 coffee campaign and has already taken a first distribution of $70,000. KACCO has not submitted their OPEX credit financing requirements to Equity Bank this campaign because they are in contract negotiations with Starbucks and do not currently have an active supply contract to use as collateral. Muungano has received approval for $200,000 in OPEX financing from Equity Bank, of which $140,000 had been disbursed by the end of the reporting period. They have also leveraged $600,000 in financing from Root Capital and an additional $375,000 from a French Social Enterprise, SIDI. Muungano plans to produce and export 15 containers of coffee this year. This level of indebtedness is worrisome, especially since Muungano, which is organically certified, is on-lending some of the funds to other cooperatives who are not certified, to secure a portion of the volume they require.
33 PAV, CPCK, RWH, KACCO, MUUNGANO, SCPNCK, and MAITEA
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SCPNCK of Idjwi has submitted a $350,000 OPEX financing request to Equity Bank/BCDC to complete their financing requirements for the 2021 season, having already secured loans of $200,000 from SIDI and $60,000 from SMICO. Negotiations are dragging a bit as the cooperative is seeking a preferential annual interest rate below 12%. SCPNCK has signed contracts for five containers of coffee and is actively in discussion with a number of other buyers. We note that SCPNCK has benefited from a USADF grant to construct and equip their cupping lab and training center and in-kind support of two depulpers from Sustainable Growers Foundation to promote the production, processing and marketing of “women’s” coffee. CPCK-SVC has provided technical assistance to both the cooperative and Equity Bank/BCDC in order to see a positive denouement of their outstanding $215,000 loan for OPEX financing for the 2020 coffee campaign. To date the cooperative has reimbursed $168,572 of the $247,400 in principal and interest they owe to the bank. Numerous discussions continue on strategies which would permit the cooperative to reimburse the bank the outstanding 78,828 that is due. Equity Bank/BCDC has pushed the reimbursement date on the outstanding amount due to July 2021 and is willing to restructure the loan and its reimbursement should CPCK show good faith and a viable plan for reimbursement. Maitea-Still has an unpaid debt to Equity Bank/BCDC dating from Q2 FY20 and has made no progress in paying down the outstanding principal and interest. Equity Bank is proceeding with collection procedures against the company and has submitted them to the Central Bank for blacklisting as an unreliable borrower. When all avenues open to the bank for recovery have been expunged, the bank will submit a claim on the dossier to the DFC for reimbursement of the outstanding principal. Equity Bank/BCDC continues their efforts to finance the agricultural and agribusiness portfolios even as their access to the DFC is concluding. Loans currently are disbursed based on active international supplier contracts or classic physical and capital guarantees. Equity’s loan disbursements to the agricultural sector for Q2 FY21 are detailed in the table below, as reported at March 31, 2021.
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Table 20. Equity Bank Kivu agricultural loans, reported as of March 31, 2021 Cumulative Cumulative Loans disbursed under guarantee FY 2021 Q1* FY 2021 Q2 FY 2021 life of project
Number of agricultural loans 9 11 20 103 Value of guaranteed agricultural loans $36,000 NA $36,000 $2,890,000* Value of non-guaranteed agricultural loans $ 419,100 $678,556 $1,097,656 $3,080,206 Number of guaranteed agricultural loans to women 1 NA 1 4 Number of non-guaranteed agricultural loans to women 1 2 3 3** Value of guaranteed agricultural loans to women $16,000 NA $16,000 $373,000 Value of non-guaranteed agricultural loans to women $35,000 $170,000 $205,000 $205,000 Number of guaranteed agricultural loans to new 2 NA 2 21 borrowers Number of non-guaranteed agricultural loans to new 2 3 5 19 borrowers Value of guaranteed agricultural loans to new borrowers $36,000 NA $36,000 $815,500 Value of Non-guaranteed agricultural loans to new $285,000 $170,000 $455,000 $1,425,600 borrowers Source : Equity Bank, March 2021 NA: Equity BCDC finished mobilizing the DFC guarantee in December 2020, Q1 FY21. From Q2 FY21, all loans are covered by coffee off-take and/or classic collateral. * Equity BCDC and report for December 2020 was $2,834,500 instead of $2,890,000 as reported in the SVC data base. The difference of 1.9% observed is due to the base line considered by SVC form CMS. ** Only one of three loans is new. Two were initially financed under DFC guarantee and renewed in FY21 Q2 after the equity BCDC guarantee ended. As noted above, two of the loans engaged by SVC clients and covered by the DFC are in default, one officially (Maitea) while the second (CPCK) is leaning towards default. The loan to CPCK remains active while the bank and CPCK seek a solution to restructure the outstanding debt, which, at this point is largely comprised of interest and penalties on the principal extended to the cooperative. As such, this makes the loan ineligible for reimbursement under the terms and conditions of the DFC. Provide technical assistance to FINCA The renewal of the SVC MOU with FINCA was submitted to their Managing Director for review by their legal counsel on March 2, 2021 and is still pending. Training of FINCA staff From March 20-24, 2021, a total of 29 FINCA staff including three women and two new branch directors, received training on the DFC loan guarantee in order to encourage them to increase their usage of the mechanism before it expires on June 29, 2021. The training covered details of the DFC, its management, and procedures for recovery of bad debts as, according to FINCA’s branch manager, they have at least 10 clients overdue on their loan reimbursements by more than 180 days. FINCA staff would like to see the DFC prolonged as they believe their clients have benefited from its presence and no post-DFC policy governing lending to the agricultural sector has been instituted. FINCA disbursements under the DFC guarantee The table below documents FINCA’s disbursements against the DFC as of March 31, 2021. We note that at the end of the reporting period FINCA still had substantial funds remaining to disburse, but that no loans were extended during Q2 because their lending is limited to market actors in urban zones with a maximum rural outreach of 50 km radius from their nearest branch office. This leaves vast geography in South Kivu uncovered.
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Table 21. FINCA DFC Guarantee Disbursement evolution as of March 31, 2021.
Cumulative 2020 2021 Disbursement Loans Disbursed as of Mach 31st 2017 2018 2019 January to September Q1 Q2 under 2021 Guarantee Total 2020 Kivu Other Kivu Other Other Kivu region Region Region region Region region Value of guaranteed $21,500 $68,100 $83,400 $9,500 $9,500 $182,500 agricultural loans
Value of guaranteed $41,300 $189,000 $974,290 $1,305,150 $791,250 $513,900 $399,450 $2,909,190 non-agricultural loans Total $62,800 $257,100 $1,057,690 $1,314,650 $800,750 $513,900 $399,450 $3,091,690 disbursement Source : FINCA, RDC March 2021 FINCA loan staff in the Kivus have communicated that they have 11 loans in default territory (more than 90 days in arrears), for which they will be seeking reimbursement of the outstanding principal34 from the DFC after all other avenues of legal recourse to recover the debt have been exhausted. To date, FINCA has not lent to any SVC clients we are aware of using the DFC facility. Supporting development and testing of new financial products for SVC target value chains Testing Mobile Money payments with a coffee cooperative In Q1 FY21 the A2F Specialist advised OPEN SC, VIRUNGA, and AMKA on the need to train and prepare coffee farmers to use Mobile Money in order to build trust and secure payments. In February, he also provided support to the consultant of NESPRESSO, OPEN SC in assessing the costs for implementation of the bonus payment test with AMKA coffee growers. Support included providing information on transfer and withdrawal costs as well as contract templates used by Mobile Money companies. This information allowed OPEN SC to prepare a sample of 33 producers for the first trial of a total premium payout volume of $1,888.06, with total transfer costs of $64.85. Most customers were on the Orange network. The payment pilot finally took place in March 2021 with 25 coffee farmers. The result showed the importance of due diligence in preparing farmers for the payments. Indeed, after using the list provided by the AMKA cooperative, the Orange Money distribution agent realized that some numbers listed no longer belonged to the named producers. This verification meant the money transferred did in fact reach all of the intended beneficiaries. Remote banking / Cash express Discussions with the SVC business advisors on Idjwi have commenced to find opportunities to connect SVC clients with Equity Bank BCDC, which remains interested in expanding the range of their banking services, including Cash Express, to South Kivu’s rural communities. Cash Express allows a private operator to become a banking agent, acting as a service center for deposits, withdrawals, opening bank accounts on behalf of the bank, and being compensated through commissions on the volume of business generated. SVC has shared the names of the following cooperatives based on Idjwi as being reputable and interested in the development of branchless banking in their territory: SCPNCK, COOPEC, OLAME, and OBUGUMA. Equity Bank BCDC has promised to approach these structures to discuss and explain how the service functions. SVC will monitor and document progress being made.
34 Evaluated as $8,372 USD at 31 March 2021
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Support to demand side financial inclusion The support to demand side services has been documented earlier in this report in the section on producer organization capacity strengthening. 4.4.3 Key activities planned for the next quarter are as follows. • Share the performance analyses of client washing stations and coffee sector. Facilitate a mini workshop with Equity Bank BCDC to discuss the results from the 2020 coffee campaign. • Share the key results of the warehouse receipts study with Financial Institutions and discuss next steps for those interested in the test. • Train Equity Bank BCDC staff on monitoring of agribusiness loans, coffee sales contracts, and export processes. • Share the results (points for improvement) of the warehouse receipts study with cooperatives or PO interested in pursuing a pilot and discuss their scores and next steps (KAMANYOLA and LUYIYI). • Train concessionnaires on investment strategies, capital mobilization, and credit eligibility criteria. • Train concessionnaires on the SVC financing model. • Train PO leaders on investment, mobilization of internal financing, and credit eligibility criteria. • FINCA training on the agricultural financing model using purchase contracts as guarantees.
4.5 CROSS-CUTTING PRIORITIES 4.5.1 Gender, Youth, and Social Inclusion (GYSI) Introduction Most of the activities cited below were undertaken in support of or collaboration with other project components, and impacted clients in all three project value chains. Key activities were focused on the following. • The continuation of virtual training to promote gender equity in collaboration with PGE and ELAN DRC in the territory of Kalehe • Capacity building activities and technical assistance to the Association of Cross Border Traders (ACT) bean/soybean market women’s affiliate in Minova and to the Association of women implicated in the coffee and cacao value chains, Initiative des Femmes Congolaises dans le Café & Cacao or (IFCCA) • Capacity building for new SVC client OLAME cooperative on Idjwi on themes related to gender, youth engagement and social inclusion • Monitoring progress and most significant changes realized due to application of principles covered and engagements committed to by participants of previous GALS training sessions carried out with SVC clients in Idjwi territory During this period, attention was paid to awareness raising messages from SVC staff and partners in connection with the March 8 International Women’s Day celebrations and the theme of women's rights in the context of COVID-19.
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4.5.2 Key Activities Undertaken during Q2 FY21 Activities under this cross-cutting component have been integrated into appropriate discussions of support given to targeted value chains. We treated joint activities with IYDA in the section on collaboration. Monitoring Most Significant Change with GALS participants on Idjwi Forty-one participants in GALS training of whom 17 (41%) were men and 10 (24%) were youth agreed to participate and share their experiences with others. From the field monitoring, which benefited from participation from the Assistant Territorial Administrator in charge of Finances, herself a GALS participant, the following changes were documented. A majority of these changes are individual, but some relate to households, community-based organizations, and a select few to the communities themselves. Changes observed include the following. • Women have developed an economically oriented vision and have focused their efforts on reducing wastage from their harvests of beans, groundnuts and cassava. Due to this they have reduced household expenses. They have also reduced social tithing from their harvest to friends, family and neighbors. • Dialog renewed within couples who had separated or were living in conditions of domestic conflict. • Reduced idleness and alcohol abuse by men wanting to save money for their future projects. • Among the indigenous peoples (Pygmies) trained by SVC, there are stars, textbook cases who have decided to change their lives and become eloquent models for both the “Havu” community and for other Pygmy peoples35. GALS participants have accomplished the following. ‒ Purchased land ‒ Built a house in semi-durable materials and with a metal roof ‒ Bought a solar panel ‒ Planted soybeans, beans, and cassava and no longer stealing other people's crops ‒ Raise livestock ‒ Sent their children to school and participate in parents' meetings ‒ Married a spouse of another ethnicity ‒ Have formally registered with authorities as a pygmy • According to the various testimonies collected, not all the changes observed happened automatically: some were immediate, others take more time. Indeed, some immediate changes were observed especially at the individual and household level. After being trained and sensitized on gender inequalities and forming a vision based on a personal decision, men, women, and young girls often with a simple gesture have changed their perceptions, attitudes, habits, and practices and decided to give up certain bad ways of living, as cited in the following examples. ‒ Some men and women have started to give a kiss and a smile to their spouses or partners. ‒ Some men have testified that they have reduced or given up dating women who are not their wives. ‒ Men or women start to be transparent and share information about what income they earn and how that money is earned.
35 SVC notes that these choices to change , these new visions and ways of living do not fail to create jealousy as well as admiration, creating the potential for future conflict which must be anticipated and managed.
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‒ Couples are making joint decisions on how to use their resources in order to attain their joint visions. • In Idjwi North, four female GALS participants have been recruited as farmer trainers for Coffee Farmer Colleges. They challenged cultural mores and competed equally with male candidates for their positions, taking advantage of local employment opportunities to advance toward their visions and improve their leadership capacities. 4.5.3 Activities Planned for Q3 FY21 • Phase III GALS training in Kabare, Kalehe, and Walungu • GALS training for Women’s Market Associations in Kamanyola and Mugogo • Training Farmer Trainers on Idjwi in gender and social inclusion • Assist IFCCA in its strategic planning • Joint gender and social inclusion facilitation with agents of DFSA TUENDELEE PAMOJA II for management committees of CMC in Nduba, Kaziba, and Kakono • Integrate GALS Champions as community agents for improved proximal outreach • Phase II GALS training in Ntambuka ETD of Idjwi (Idjwi South) • Provide GALS training to FINCA credit agents in Bukavu and Goma
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SUCCESS STORY SARAH AKOKO, A YOUNG MODEL OF LEADERSHIP AND ENTREPRENEURSHIP IN WALUNGU, SOUTH KIVU Except for artisanal mines, agriculture is the only other sector that can provide employment opportunities for young people in Mushinga, a village in Walungu territory in South Kivu. The youth, however, do not see agriculture as a profitable sector that can reduce unemployment in their community. Many of them do not like working in the fields. They think that agriculture is only about picking up the hoe. This is what Sarah Akoko, a young 22-year-old high school graduate who lives in Mushinga, believed. Although she is a member of an association that mentors young people, especially in the agricultural sector, she did not see herself making a living from farming: “I had no prospects. I was very disoriented. I did not know what I would do after high school. I didn't see myself spending my life in the fields,” says Sarah Akoko. More than two years ago from now, Sarah's life took another turn. In August 2018, IA KENGERO a platform of Producers' Photo: Sarah Akoko selling fuel to motocabs Organizations (POs) in Mushinga, selected her to participate in in Mushinga. the first phase of Gender Action Learning System (GALS) trainings organized by Feed the Future DRC, Strengthening Value Chains (SVC/Lima-Faidika). These trainings have been funded since 2017 by the American people and USAID. Through the methodology of gender learning through action, SVC/Lima-Faidika intends to enable members of FOs, including youth and women, to know how to identify and seize opportunities in their environment in agriculture, especially
Photo: Checking her stock of footwear before in different segments of the value chain, including storage, going to market. processing, transport, etc. The project also wants to encourage them to take advantage of the opportunities offered by different sectors of the value chain. The project aims to encourage them to have more control over their lives, to manage and diversify their resources, to strengthen their leadership, especially that of young girls in decision making, and to empower them. For SVC, if young people improve their living conditions, they will become catalysts for change in their communities. “It was in the GALS training, I understood that agriculture is not only about going to the field, and that as a youth, there are many other activities I can do in a value chain. After the first training, I decided to take my life in my hands and to start a business in transportation. I understood that it is a very important link in several sectors including agriculture. Today I sell gasoline to motorcycle cab drivers. They transport agricultural products to the markets and mining areas. I started my small business with a 20-liter can of gasoline. To date, I am at 200 liters. I have also diversified my income generating activities. I sell plastic shoes, credits for cell phone calls and I run a catering service with my mother. I no longer depend financially on my parents and I have hired two young people to help me in my many tasks,” said Sarah smiling and very proud of her achievements.
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In two years, Sarah Akoko has become a model of leadership and entrepreneurship in her village. Moreover, when in 2019 she ran for the position of President of the Youth Association for the Development of Mushinga (AJDEMU), the members did not hesitate to entrust her with the leadership for three years.
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4.5.4 Environmental Monitoring and Mitigation Plan Introduction SVC provided technical assistance to its partners to mitigate negative environmental impacts that may result from their respective enterprises and activities in order to equip them with the capacity and practical knowledge to preserve the environment and promote public health. For this reason, SVC’s project combines training and proximity monitoring to ensure the implementation of appropriate and adapted mitigation measures by target value chain actors. Nine activities were carried out this quarter, as follows. 1. Verification of sites prior to the implementation of the demonstration plots on soybean and rhizobium 2. Verification of soybean seeds for demonstration plots on soybean and rhizobium 3. Training of coffee farmers on integrated disease management 4. Training of coffee farmers on composting techniques 5. Training of SVC Business adviser on EMMP/SUAP 6. Training of washing station staff and SVC staff in the Coffee Quality Institute (CQI) - Q processing Level 2 Professional training 7. Training of washing station staff on cupping of daylot samples and sourcing of cupping 8. Proximity monitoring (at six warehouses and at two agricultural input shops) 9. Technical advice provided to 16 coffee washing stations on site selection, site development for the washing station, installation of fermentation tanks and on management of waste channels (wastewater and coffee pulp, etc.)
• Site for demonstration plot on soybean and rhizobium are appropriates for the demonstration plots. There is no risk of erosion. There is no water body or stream within 30 meters from demonstration plots. • Soybean varieties (Imperial and Saga) and soybean seeds used in the demonstration plots on soybean and rhizobium, in Kishinji, Bulenga, and Minova (Kalehe territory), Mweya, Bishibiro, Kakondo, Kashusha, and Kayanja (Kabare territory) and Kakono, Bitesi, and Kamanyola (Walungu territory) are from INERA. They are not genetically modified organisms (GMO). • Inoculant used as rhizobium source in the demonstration plot on soybean and rhizobium is Nodumax, sourced from IITA (Kalambo). • 6,845 farmers, including 3,402 women (49%), involved in the coffee college were trained in integrated diseases management in January 2021 in Kalehe territory. • 7,845 farmers including 3,583 women (48%), involved in the coffee college were trained in composting technique from January to February 2021 in Idjwi territory. • 12 SVC staff, including two women business advisers, were trained in EMMP and SUAP on February 2021 by SVC’s Access to Input Specialist in Bukavu. • SVC project business advisers provided technical advice to 16 coffee washing stations by on site selection, development for washing station site, installation of fermentation tanks and on management of waste channels (wastewater and coffee pulp, etc.), from January to March 2021. • 14 client washing station staff and 3 SVC staff (14 men and 3 women) participated in the CQI - Q processing Level 2 Professional training at ONAPAC in Bukavu.
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• 24 washing station staff (20 men and 4 women) were trained on cupping of daylot samples and sourcing of cupping to improve profitability. • 2 proximities monitoring visits activities took place at the following locations. ‒ Six warehouses: SAICO warehouse in Birava (Kabare territory), UCOKA/North warehouse at Minova market (Kalehe territory), UCOAK/Sud warehouse at Kalehe market (Kalehe territory), Association de Développement du Bien Être des Paysans (ADBP) warehouse in Kamanyola (Walungu territory), Union des Femmes Musulmanes du Congo (UFMCO) warehouse in Kamanyola (Walungu territory) and the Femme Leve Toi Association warehouse in Kamanyola (Walungu territory) ‒ 2 agricultural input shops: Penda Kazi Mulimaji and Pharmacy Elite in Kamanyola, (Walungu territory) 4.5.5 Key activities undertaken in Q2 FY21 Crop production (include coffee, export crops, dry beans, soybeans, horticulture, etc.) Four activities were carried out this quarter including verification of source of bean varieties and seeds used in the demonstration plots, verification of sources of seeds for coffee varieties, soybean and bean varieties used in the experimental plots, training of coffee farmers on soil erosion control, and training of coffee farmers on composting techniques. a. Demonstration plots on soybean and rhizobium Verification of bean seed source Soybean varieties and soybean seeds used in the demonstration plots on soybean and rhizobium were sourced from INERA. The two varieties used in the demonstration plots are Imperial and Saga. More likely, they were introduced in DRC by Illinois University and released by INERA many years ago in the three territories of SVC activities (Walungu, Kabare, and Kalehe). Verification of rhizobium (Nodumax) source The inoculant used as rhizobium source in the demonstration plot on soybean and rhizobium is Nodumax from IITA (Kalombo). Nodumax is a bio fertilizer with rhizobium as its active ingredient. It contains 50% of culture (rhizobia) and 50% of the carrier material (peat). It also serves to replace nitrogen fertilizer. Site verification before implementation of the demonstration plots on soybean and rhizobium The demonstration plots were set up in 12 sites in the three project territories of activities (Walungu, Kabare, and Kalehe). The 12 sites are Kashinji, Bulenga, and Minova in Kalehe territory; Mweya, Bishibiro, Kakondo, Kashusha, and Kayanja in Kabare territory; and Kakono, Bitesi, and Kamanyola in Walungu territory. SVC’s Access to Input Specialist and the intern agronomist visited the sites for the demonstration plots on soybean and rhizobium prior to the implementation of the demonstration plots. The visit took place from February 8-16. The site verification took place during the monitoring of the demonstration plots on bio-fortified bean varieties and bean seed multiplication fields. According to the site verification, no stream or water body was identified by the Access to Input Specialist within 30 meters from the demonstration plots sites. In addition, there is no risk of erosion.
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b. Technical assistance and training programs on crop production techniques Three trainings were organized this quarter. Two training were held for farmers involved in coffee college and one training for SVC staff, business advisers, on EMMP/SUAP. The two trainings organized for farmers involved in coffee college were the training on integrated disease management in Kalehe territory and the training on composting techniques in Idjwi territories. Trainings were provided to coffee farmers by SVC agricultural advisers as part of coffee college curriculum. Training on EMMP/SUAP was provided to SVC business advisers by SVC Access to Input Specialist. Training on integrated disease management: 6,845 farmers, including 3,402 women (49% ), involved in the coffee college were trained in integrated diseases management in January 2021 in Kalehe territory. The emphasis was on good agricultural practices (compliance with agricultural calendar activities, such as time weeding and pruning of coffee plants), use of adapted varieties, and good knowledge of coffee diseases. Training on composting techniques: 7,845 farmers, including 3,583 women (48%), involved in the coffee college were trained in composting technique from January to February 2021 in Idjwi territory. Training on composting techniques emphasizes the use of organic materials including coffee cherry pulp, crop residues, etc. The use of coffee cherry pulps in composting contributes to the reduction of pollution and environmental contamination by pulps after processing cherries by coffee washing stations. Post-Harvest processing and storage (coffee, other export crops, soybeans, dry beans, and others) a. Technical assistance on post-harvest coffee processing. A total of 14 client washing station staff and three SVC staff (14 men and 3 women) participated in the CQI - Q processing Level 2 Professional training at ONAPAC in Bukavu. The training aimed to empower participants on specialty coffee processing by providing the following modules. 1. Coffee processing in the context of the value chain 2. Harvesting of raw material and its characteristics 3. The anatomy of the coffee fruit and the comparison of processing methods 4. Pulping 5. Fermentation 6. Washing and removing mucilage 7. Drying 8. Parchment removal, storage, and defects of green coffee 9. Integrated quality control during processing 10. Problems in the coffee processing industry and a glimpse into the future A total of 24 washing station staff (20 men and 4 women) were trained on cupping of daylot samples and sourcing of cupping to improve profitability. Participating cooperatives were AMKA, CAPCKI COCASKA, and SOPADE. The training focused on two main objectives: (1) explain the benefits of conducting cupping of daily coffee batches; and (2) showcase the need to have high quality control and laboratory equipment and in order to perform mini tastings at the washing station.
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b. Technical assistance on storage of crops and commodities No specific activities were organized this quarter. Soil amendment and agro-chemical No specific activities were organized this quarter. Infrastructure rehabilitation and construction. As in Q1 FY21, during Q2 FY 21 SVC business advisors supported washing station improvements. In total, 16 received technical advises from SVC business advisers. The 16 washing stations that received technical advice are the same ones that received technical assistances on post-harvest coffee processing: Alpha New, AMANI, AMKA, CAPACADE, CAPCKI, COACHA, COCAII, COCASKA, Kalambo One SARL, Kivu Coffee, Nakeza SARL, Nicolas, Olame, RUJCAF, SCPNCK, and Thomas. Examples of the technical guidance SVC business advisors provide to washing stations include the following. • Selecting the construction site and layout of the site • Sourcing materials for constructing drying table • Selecting the layout and installation of drying tables • Installing fermentation tanks and separation canals and supplying the coffee depulper • Installing machinery and toilets • Installing stock building and equipment to protect coffee stock (pallet and other equipment) • Providing guidance for managing wastewater and coffee pulp in line with the USAID Environmental Mitigation and Monitoring standards
Proximity monitoring visits Two proximity monitoring visits were carried this quarter at the following locations. • Six warehouses ‒ SAICO warehouse at Birava in Kabare territory on February 28 by DCOP ‒ UCOAKA/Sud warehouse at Kalehe territory market on February 10 by DCOP and Market Linkage Specialist ‒ UCOAKA/Nord warehouse at Minova market in Kalehe territory on February 13 by DCOP and Market Linkage Specialist ‒ Three PO warehouses (ADPP, UFMCO, and Femme Leves-toi) in Kamanyola in Walungu territory by DCOP on February 27 • Two agricultural input shops (Penda Kazi Mulimaji and Pharmacy Elite) in Kamanyola, Walungu territory by DCOP on 26 February
a. Proximity monitoring visits at six (6) warehouses The following observations were made during the proximity monitoring at the six warehouses. At SAICO warehouse • Sacks of agricultural products (soybean and maize) and bags of poultry feed were on the ground. There were no pallets or bricks to lift bags from the ground. The warehouse lacked ventilation. The SAICO manager was advised to place the pallets or bricks to avoid contact between bags that contain agricultural products (maize and soybean) and poultry feed with the ground.
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At UCOAKA/Sud warehouse, UCOAKA/Nord warehouse, association ADPP warehouse, UFMCO warehouse and association Femme Leves-toi warehouses • Sacks containing agricultural products (beans, maize, soybean, and cassava) were on the pallets. The agricultural products did not contain any chemical or botanical pesticides. Agricultural products (maize, soybeans, and beans) were well dried, cleaned, and sorted. b. Proximity monitoring visits at two agricultural input shops in Kamanyola, Walungu territory The two agricultural input shops are Penda Kazi Mulimaji and Pharmacy Elite in Kamanyola, Walungu territory. The visit took place on February 26 by DCOP. It emerged from this visit that the two agricultural input shops repackage the fungicide in 500g to 1 kg plastic bags. They buy fungicides in 25 kg sacks and repackage 500g and 1 kg bags, reflecting the effective market demand in Kamanyola. However, they place the labels of reconditioned pesticides on the shelves instead of placing them on the reconditioned bag. The managers of the two input shops were advised to place the labels on the bags that contain the repackaged fungicide. Table 21. EMMP Results
Expected results Target FY21 Achieved Q1 Brief explanation FY21 Crop production (includes coffee, other export crops, dry beans, soybeans, horticulture, etc.). Cases of invasive or Zero Observations will Observations will be made in Q3 FY21. The project unwanted plants be made during Q3 activities were suspended because of COVID-19 cases reported as caused FY21 in the office. by the project in the demonstration plot Cases of GMO used Zero No GMO used in Soybean varieties used in the demonstration plots are in the demonstration the demonstration from INERA and are not GMOs and experimentation on soybean and plots rhizobium Percentage of demo 100 % Observations will Observations will be made in Q3 FY21. The project plots under good be made during Q3 activities were suspended because of COVID-19 cases agronomic practices FY21 in the office. (GAP) All fertilizers are 100% Inoculant Inoculant, NODUMAX, used in the demonstration sourced from NODUMAX, used plots on soybean and rhizobium are from IITA. authorized dealer in the demonstration plots on soybean and rhizobium, are from IITA. Cases reported due Zero Observations will to bad or over be made during Q3 Observations will be made in Q3 FY21. The project application of FY21 activities were suspended because of COVID-19 cases fertilizer in the in the office. demonstration plot Reported issues of Zero Zero Two trainings took place this quarter, one on improper agriculture integrated disease management in Kalehe territory and techniques reported one on composting techniques in Kalehe and Idjwi in the crop territories. No issue was reported due bad production technical management of disease or due to bad application of assistance and compost in the coffee farmers’ fields. training programs,
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Expected results Target FY21 Achieved Q1 Brief explanation FY21 including coffee college Reported issues of Zero Not applicable this Will be recorded in Q3 FY21 as coffee campaign badly managed waste quarter started in Q2 FY21. handling in the crop production technical assistance and training programs, including coffee college Number of Not set 6,845 farmers, 6,845 farmers, (3,402 women) involved in the coffee individuals trained on (3,402 women) college were trained in integrated diseases integrated disease involved in the management in January 2021 in Kalehe territory management l in the coffee college were crop production trained in technical assistance integrated diseases and training management in programs, including January 2021 in coffee college Kalehe territory
Number of Not set 7,845 farmers 7,845 farmers (3,583 women) involved in the coffee individuals trained on (3,583 women) college were trained in composting technique from composting involved in the January to February 2021 in Idjwi territory techniques in the coffee college were crop production trained in technical assistance composting and training technique from programs, including January to February coffee college 2021 in Idjwi territory Post-harvesting and storage(coffee, other export crops, soybeans, horticulture, etc.) Number of Not applicable this Training planned in Q3 FY21. individuals trained in quarter sustainability of wet mill station in the post-harvest processing technical assistance and training programs Number of wet mill At least 20 Not applicable this Will be recorded in Q3 FY21 because training on stations under good quarter sustainability will be organized in Q3. In addition, PHH practices coffee campaign started in the last week of Q2. Coffee following technical stations will start processing Q3. assistance on post- harvest coffee processing Number of waste At least 20 Not applicable this Will be recorded in Q3 FY21 because training on management plans quarter sustainability will be organized in Q3 and wet mill developed by wet stations will develop their plan in Q3. mill stations following technical assistance on post- harvest coffee processing
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Expected results Target FY21 Achieved Q1 Brief explanation FY21 Number of instances Zero Not applicable this Will be recorded in Q3 FY21 because training on of improper quarter sustainability will be organized in Q3 and wet mill practices at wet mill stations will develop their plan in Q3. stations following technical assistance on post-harvest coffee processing Number of storage At least 20 5 Six warehouses were visited this quarter (SAIDCO, facilities under good UCOAKA/Sud, UCOAKA/Nord, association ADPP, PHH and PO UFMCO warehouse and PO Femme Leves-toi). management SAIDCO warehouse was not under good PHH practices practices: sacks of agricultural products and feed were on the floor and not raised on pallets.
Soil amendment and agro-chemical Number of instances Not set 1 1 (Pesticide packaging without labeling) at two of bad practice agricultural input shops: Penda Kazi Mulimaji and reported Pharmacy Elite in Kamanyola, Walungu territory. Number of 0 0 0 pesticide out of the PERSUAP scope was observed pesticides out of the during the proximity visits at 6 warehouses. PERSUAP scope used by the project Number of instances 0 0 No cases observed or noticed in the six warehouses of overuse of agro- visited this quarter. chemicals reported Number of agro- 0 0 No cases observed or noticed in the six warehouses chemical requiring visited this quarter. PPE applied without PPE Infrastructure rehabilitation and construction Number of actors Not set Technical advice 16 washing stations complied with environmental who comply with provided to 16 compliance in relation to site selection, installation of DRC and USAID coffee washing fermentation tanks, and on the management of waste Sector stations by the SVC channels (wastewater and coffee pulp, etc.). Environmental project business Guideline for advisers on site Construction selection, development of the washing station site, installation of fermentation tanks and on the management of waste channels (wastewater and coffee pulp, etc.). Micro-hydro rehabilitation, construction , and electricity distribution Not applicable. SVC will not design, rehabilitate, upgrade, or construct micro-hydro generation capacity distribution system
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Expected results Target FY21 Achieved Q1 Brief explanation FY21 Quarterly Reporting Number of quarterly 4 2 Q1 FY21, Q2 FY 21 reports containing EMMPs submitted to USAID
Table 22. EMMP Challenges, Solutions and Opportunities
Challenges Locations Solutions developed Opportunities Appropriate packaging of Kabare, Kalehe, and Awareness and Training on SUAP pesticides by agricultural Walungu territories sensitization of agricultural input shops (old challenge) input shop managers on Regular monitoring at input appropriate pesticide shops by SVC staff packaging and labelling Access to credit by Kabare, Kalehe, and Technical assistance by the Banking institutions provide agricultural input shops for some sites in A2F Specialist to banks credit to agricultural input purchasing appropriate Walungu territories shops packaging (old challenge)
Application of barrier Kabare, Kalehe, and Sensitization on COVID-19 Carry out awareness of the measures by value chain Walungu territories and barrier measures prior SVC target partners on actors against COVID-19 to any activity COVID-19, including (old challenge) barrier measures Implementation of measures taken by the Government of the DRC to reduce the contamination and spread of COVID-19 4.5.6 Key activities planned for the next quarter (April-June 2021) Crop production (coffee, other export crops, dry beans, soybeans, horticulture, etc.) • Follow up of demonstration plots on rhizobium • Follow up of experimentation plots on coffee varieties • Training (refresh) on soil erosion control (Kalehe) • Training (refresh) on composting (Kalehe) • Training on coffee integrated diseases management (Idjwi) • Training on soil erosion control (Idjwi) • Training (refresh) on composting techniques (Idjwi) • Training (refresh) on coffee integrated diseases management (Idjwi) • Agronomic sustainability training Post-harvest and storage treatment (coffee, other export crops, soybeans, beans, etc.) • Training of new washing stations on sustainability • Development of waste management plan by washing stations • Audit of washing stations on sustainability including environmental compliance
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• Follow up of the implementation of training Soil amendment and agro-chemicals • Monitoring the implementation of technical assistance Infrastructure rehabilitation and construction • Monitoring uptake of the following technical advice given to the 16 coffee washing stations - Site selection for the washing station - Development of the washing station site - Installation of fermentation tanks - Management of waste channels (wastewater and coffee pulp, etc.)
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5.0. CONSTRAINTS AND POTENTIAL SOLUTIONS
• The state of the roads in South Kivu is deplorable and becoming worse. Access to project zones is limited due to bridge outages, mudslides, and washouts. This limits our ability to document most significant changes during the rainy season. The favorable period for this documentation is likely to be July and August of each year. • Climate change is becoming increasingly noticeable in the project zone. The timing of rainy seasons, rainfall distribution, mini-dry seasons, and drier periods within the rainy season for field operations have become unpredictable and negatively impact agronomic productivity. This is one reason why the validation of the updated agricultural calendar for South Kivu and its expansion to include other agro-ecological micro-zones and value chains is increasingly important. Once finalized, it will provide farmers with the best available agronomic extension advice so they may maximize their investments. • There were several disruptions this quarter with regards to the national political environment, including national consultations, the resignation of the Government and the resignation and the elections of the President of the National Assembly and the Senate. This situation had an impact at the provincial level because the provincial authorities in South Kivu were focused on political developments at the national level and the consequences of those for their political positions. This presented a challenge for business climate-related activities in SVC’s focus value chains as public officials were less attentive to the particular issues impacting these. • INERA lacked the financial resources to hire day labor, and this established their soybean multiplication plots late in the A2021 season. The harvest was delayed. This cascaded into late planting during the B agricultural season of our client’s multiplication activities. To avoid losing the B agricultural season, INERA sourced seed from agricultural multipliers they accompany. • Because of the COVID-19 outbreak at the SVC office and the resultant two weeks quarantined and remote working, the soybean seed multiplication plot at Bishweka Kayanja was not planted. • Not all members of cooperative governing bodies necessarily understand their roles and responsibilities nor have the skills to perform these functions. Their elections are not necessarily competency or experience based. • The retention of information and unilateral decision making by leadership of the APEX organizations’ management committees in relation to the sub-structure producer organizations creates a culture lacking in transparency, encourages mistrust of the members, and results in the absence of traceability in the operations and transactions undertaken by the organizations. SVC provides technical assistance on good governance, leadership, and information sharing within different structures it supports, but it is important for the members of the PO and the PO members of the APEX organizations to comprehend that they are the shareholders and owners of the structures and have the right to information and to hold leadership accountable. • Producers do not understand how to calculate their production costs, break even and profit margins, and pricing. This makes it difficult to analyze costs of production, calculate margins, and negotiate sales and purchase prices.
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• Producers of beans and soybeans lack knowledge of basic agricultural practices like planting density and spacing of crops in monoculture and, in association, quantities of seeds to be sown per ha., etc. This lack of knowledge is due to the lack of extension, supervision, and technical assistance for producers on aspects of agricultural productivity. It makes it difficult to estimate production, the amount of seeds needed for planting, the cost of production per kg, etc. It is wasteful for farmers and extends the food security challenge for South Kivu. It limits trustful negotiations between value chain actors and enhances the potential for conflict. To date, SVC is not tasked with providing technical assistance on production to farmer members of client PO’s active in the bean or soybean value chains. • Farmers in Ihusi and Minova (Kalehe territory) do not have easy access to improved agricultural inputs, especially improved and adapted seeds. Road conditions impede ground transport, and transport of commercial products by water is costly and risky. • Smallholders’ cost of accessing land through rental appears to be very high. Prices vary from site to site but are between $200 and $ 400/ha annually. This is a major cost outlay for the farmers and considerably reduces their potential revenues, especially since the yields are low (between 300kg and 560kg/ha). Efforts should be made to lobby for price controls for land rentals and to improve access to improved agricultural inputs by both expanding the definition of what constitutes an agricultural input and easing the bureaucracy and decentralizing tax exemptions for the importation of high-quality certified inputs, including early generation seed from reputable companies and agricultural input and equipment distributers. • Local business service providers, civil society organizations, and subcontractors exhibit difficulty in respecting the execution calendars defined for their negotiated deliverables consigned within their contractual agreements with SVC. This is due to their human resource capacities, but also to a lackadaisical attitude toward the importance of respecting their engagements. This results in delays for project execution. The project needs to develop enhanced rigor in the technical oversight of these agreements. Proof that firms and services can provide quality of delivery, efficiency of execution, and timeliness should be requested during the bidding process, and sub- contract agreements should contain penalty clauses to be invoked when and as necessary. • In the last week of the Q2 FY21, SVC closed the office due to three COVID-19 cases among Bukavu based staff. The inability to access the office and conduct field missions slightly delayed launching of the bookkeeping training in the final week of the quarter. In addition, the April training module for the 2018 and 2019 CFC Cohorts will also be delayed by one week. • Both of the CFC trainings for the 2019 and 2021 Cohorts were adapted for smaller groups due to COVID restrictions on social distancing by dividing Farmer Field Groups (FFGs), which typically have an average of 44 registered farmers, into groups of less than 20 people. SVC does not anticipate the smaller group trainings to delay implementation and expects all FFGs to complete the scheduled training by the end of July 2021 (C2019) and December 2021 (C2021), respectively. • The CQI Level 2 Q-Processing training was also limited in size due to COVID-19 constraints, resulting in 14 coffee washing staff trained rather than the original goal of 25. • The COVID-19 pandemic is a major challenge in carrying out the activities of the three value chains coffee because traffic has been reduced between DRC and Rwanda. To compensate for this, the associations of women sellers have applied the joint purchases and sales approach in their transactions involving beans and soybeans within various markets as well as in Rwanda.
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• The political environment in DRC has not allowed local and national political authorities to pay attention to private sector concerns (COPROSEM, Presentation of Strategy to the Minister of Agriculture). • The commercial vendor tax (patente) is a major challenge that women bean and soybean sellers face in carrying out their activities. It is set at $11 by the provincial government and paid annually. This cost is viewed as exorbitant for women who typically have limited capital of around $100. To circumvent this burden, associations have worked with tax agents towards workarounds in various ways, as follows. ‒ In Kamanyola, for example, instead of paying the annual patent ($11), they prefer to pay the tax agent 500 FC per market day. This costs the women $13 annually in payments to tax agents who do not provide this revenue to the government. In the end, the government loses its tax revenue, and the women sellers pay more because the upfront cost of the patent tax is so high. ‒ In Kabare and Kalehe/Ihusi, saleswomen gather at 4 pm to pay the patent. This arrangement between women sellers from Kabare and Ihusi and tax agents is informal, although it allows them to escape the cost of the patent. To find a sustainable solution to this situation, SVC will support next quarter an advocacy workshop involving the women's associations selling in markets from Walungu, Kabare, and Kalehe and the provincial government to reduce the patent to $3, as is the case in Goma. • Payments to the three cooperatives for their coffee under contract to Starbucks has been delayed in each of the past two seasons. The reasons given differ, but the impact of the late payments is that the cooperatives have trouble meeting their commitments and reimbursing OPEX credit on time. Neither SVC nor Equity Bank have a formal relationship with CAFELAC36, with whom exporter Falcon Coffee collaborates under the agreement with Starbucks. Thus, SVC and Equity Bank are uninformed of when money will hit the cooperative bank accounts or the reasons why payment may be delayed. SVC and Equity Bank are also not informed directly of constraints encountered and the possible repercussions. SVC assists cooperatives and the bank to build tripartite relationships with buyers to better anticipate and manage risks. This effort should be expanded to include Starbucks, CAFELAC, and Falcon Coffee, specifically in their current relationship with CPCK, but is valid for other SVC cooperative clients as well. • Due to COVID-19 travel restrictions Starbucks has been late in planning for cooperative Coffee and Farmer Equity (C.A.F.E) audits and certification, and thus has not yet renegotiated supply contracts for FY21. This risks hampering cooperative access to OPEX financing. Without assured OPEX financing or a secured supply contract, these cooperatives will likely sell their coffee elsewhere. SVC should explore CSP relationships with Starbucks/Falcon to provide the technical assistance necessary for audits to occur prior to the commencement of the main coffee season. • An increasing number of banks, investment funds, and financiers are starting to take an interest in, and offer products for, coffee sector financing in South Kivu. Cooperatives, even those with previously secured financing, are still acting opportunistically, ready and willing to accept and diversify with new partners, but without communicating either to new partners that they are
36 CafeLac is a subsidiary of Great Lakes Coffee, which is headquartered in Kampala, where decision-making occurs. While SVC can negotiate for a more formal working relationship in country, previously we found that the true relationship needed to be with the Kampala and the Nicolaides brothers, who are the majority shareholders.
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already fully committed or to existing partners that they are seeking supplemental funding from a separate source. This can lead to over-indebtedness and the incapacity of cooperatives to meet their commitments. SVC has found that financiers are often unaware of other financiers’ initiatives within DRC, or with who the financial operators are collaborating, and on what. DRC has no central database or credit bureau operation to which financial investors can refer to perform due diligence. A subscription service might help to avoid over-indebtedness and to assist in judging the credit worthiness and financial health of potential investment opportunities and clients soliciting financial assistance in their operations or investments. • BDS provider ASOP has been unable to provide participant lists for their deliverable on coaching for improved financial literacy, delaying payment for their deliverable. SVC found that BDP providers have difficulty managing the terms and conditions of their fixed price, deliverable based agreements, including but not limited to the deadlines for proposed activities and quality of reporting on activities. SVC initiated a policy of reviewing the agreement and execution calendar with the BDS provider and SVC technical focal point prior to contract signing. • The high number of non-literate women within the ACT LIMA FAIDIKA Minova association participating in the Gender and Social Inclusion training in Minova limited the SVC team to promoting only a few GALS tools, including the road to vision, due to the extra time required to cover and discuss subject matter. Of the 33 women participants, 14 (43%) did not have the profile required to quickly assimilate several anticipated GALS tools.37 SVC trainers adapted the methodology and focused on the essentials of each tool, developing them in simple stepwise and highly visual fashion. Even if they cannot read and write, the ability to hold a writing instrument and to draw or sketch is necessary because oral recollection fades with time.
37 Literacy is not required for GALS, but the ability to hold a writing instrument or a stick or charcoal and draw is fairly fundamental. The majority of the participants are bean market sellers. They tend to be older (trending towards the 3rd age bracket) and less educated. They often married early and have been frequent victims of displacement. The Minova Market Women’s Association relies heavily on their male secretary who also manages a warehouse in the Minova market and who is the sole point of telephone contact for the market women who leave their phones at home because theft of phones is rampant within the market environment. GALS is inclusive. It offers access to new opportunities for people who have previously been excluded. GALS is attracting youth to commercial activities. The team’s concern was how much forward progress can realistically be expected to be achieved by these women, the time it will take to get there, and the retention of previous learning and application of new knowledge to their business enterprises. Due to this, the team revised their delivery of the modules but raised the constraint, as it appears common among the different Trader Associations affiliated with ACT in South Kivu.
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6.0 KEY FINDINGS AND LESSONS LEARNED
• The capitalization and appropriation of technical assistance by SVC clients in the context of market-oriented development and strengthening takes time. This can take up to 36 months or more, depending on the maturity of the implementation environment, the dynamism of the private sector, and the evolution of the market systems. In its initial stages the MSD approach requires a lot of close monitoring and technical staff in proximity with the communities. • To accelerate its development, South Kivu needs extension services and development partners capable of providing consistent support to farmers in targeted value chains on good agronomic practices that can improve the farmers’ overall productivity and profitability. • As a result of the public-private dialogue workshops with cooperatives and public officials on taxation held in Kabare from February 26-27 and in Kalehe from March 5-6, cooperatives realize that they often pay taxes based on fraudulent documents sent by certain public service agents. This money does not enter the public treasury accounts and is collected by the agents. The cooperatives and the state lose. • The COCASKA cooperative was able to identify a false collection note delivered on March 10 by a DPMER agent from Kalehe territory. Because of the workshop supported by SVC project, the cooperative was aware of how to respond to this and called the provincial director of DPMER/South Kivu to alert them to this illegal demand. The cooperative saved $200 that it could have lost by paying this illegal demand. In previous years, that cooperative had paid this tax to this agent. • The decentralized territorial entities of Walungu and Photo: False collection note identified by the COCASKA cooperative. Kalehe are pleased with the
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support provided by SVC project to the associations of women bean and soybean sellers. This support has allowed them to formalize themselves, to be recognized by the local authority, and to dialogue with them on tax issues and those related to the development of their activities. • Empowering women and their organizations to develop their vision is to endow them with self- confidence and skills. This helps to build resilience and enables women to make strategic choices. Despite the high number of illiterate women and indigenous people in certain training courses, integrating, adapting, contextualizing GALS tools to the different SVC target groups reinforces this logic of resilience and empowerment. • Using simple, practical, highly visual and creative methodologies like games, dances, skits, stories, and videos in local languages encourages and strengthens leadership, frees speech, increases participants’ confidence, and enables individuals and groups to develop analytical and self-critical skills. These seem to be fundamental competencies for socio-economic empowerment of marginalized and excluded categories of people like women and youth. • The GALS training module on visioning motivates participants to recognize, mobilize, and organize their own resources, even if these are quite limited, and to take action to improve the quality of their lives using the resources at hand. Almost two-thirds of the women members of ACT in Minova were ready to abandon their families. When leaving their conjugal residence, the women stated they would either move to Goma, rent their own house locally in Minova, or relocate to live within their own extended birth family compound. Post GALS, these women committed to investing in their households, spending greater time with their husbands, and investing in the improvement of their household conditions. • The GALS approach appears to be of most benefit to youth, the ones who openly dream of a better future, are less risk averse, and commit to reaching their objectives. Elder members of the community place their hopes and aspirations in their children instead of focusing on goals for their own development. SVC’s dilemma is that these elders are the community and cooperative leaders who participate in our training. Sessions on succession planning are merited in this instance. Separate sub-group exercises with youth, adults, and elders and community leaders permit each to have their voice heard, leading to interesting and dynamic discussions. • AMKA, CAPCKI, and COCASKA cooperatives were particularly motivated by the Virtual Learning Series (VLS) training and gender assessments developed in collaboration between SVC, ELAN and PGE. They each invested a lot of effort into the restitution of the various videos to the members of their cooperatives. This was manifested during the survey, gender equity assessment, and action plan development. Cooperative leaders voluntarily requested to be added the WhatsApp group to participate fully in the virtual exchanges. Of women participants in virtual learning series training, 80% have increased their comfort using digital tools and technologies. Progressively through the past year, they have increased their participation (interventions and speaking) in exchanges and debates in face-to-face and virtual sessions. • There are still several areas of disagreement between the VLS participants in the PGE pilot. For example, the question on “whether pregnant women, nursing mothers should be invited and participate in training or other activities of the cooperative, yes or no?” showed a deep division of opinions. The main issues and attitudes identified seemed more related to cultural aspects (customs) and the dominant male power dynamics still present in the rural communities than to the ability, capacity, and willingness of pregnant and nursing mothers to participate in the trainings. It will take time for these attitudes to transform, especially since it is not all the men who are affected nor all the women. But the strategy of making “male allies” was welcomed.
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• Indigenous people have been most active executing against their social commitment to train others in their community. Each participant has transferred their knowledge within their household, to their immediate neighbors and shared their knowledge/experience with four to six other community members. This increases the outreach of SVC’s GESI activities and diminishes jealousy within the indigenous communities. • Gender relations in households and increased engagement of young people in the agricultural sector, as well as improvement in socio-economic conditions through the diversification of revenue streams, was noted among participants in SVC’s GESI activities. Validated testimony by participants speak of the following: reestablishing dialogue, reducing tensions, conflict, and mistrust in households; reducing alcohol consumption; increasing support for women and girls in certain household tasks; investment in durable goods to improve family life; diversifying its sources of income; committing to empower women and girls in the coffee fields; and increasing their access to revenue from related sales.
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7.0 RECOMMENDATIONS
• INERA Mulungu should play its role and ensure sufficient quantities of foundation seed of improved varieties of beans and soybeans exist for seed multipliers. • SVC’s Business Enabling Environment efforts should expand to include changing policy to ensure reduced taxation of rhizobium as an agricultural input (seed dressing) for soybeans and other legumes including beans and groundnuts. • SVC should collaborate with SENASEM to ensure bean and soybean seed multiplication plots undertaken by SVC clients are certified. • Organize in-depth training on leadership and management of PO as well as strategies to improve the transparency and sustainability of PO APEX organizations. • Separation of powers and the institution of control measures among and between posts and organs within cooperative management structures are imperative for them to assure internal controls on finances, oversight on decision-making, and transparency in the use of resources. • Verify that cooperative clients of SVC have financial procedures and tools required to manage the cooperative transparently to avoid abuse of power and elite capture by cooperative leaders. • Second and tertiary tier cooperative structures should play a role in market diversification, client liaison, and contract negotiations, but also in an oversight capacity to assist their members in avoiding becoming overcommitted or over-indebted. • It is important to train the coordinators and community-based agents of APEX structures and member sub-structures on good agricultural practices, calculating production costs, profit margins, and the basis for negotiating prices for agricultural products. • Bank and MFI staff should be trained in contract negotiation and rural enterprise credit monitoring.
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8.0 CONCLUSION
Q2 FY21 was a quarter full of activity with diverse clients, but which also saw a renaissance in the collaboration with other USAID financed Implementing partners in South Kivu. SVC developed positive synergies with the DFSA, IYDA, and IGA programs to richen and diversify technical assistance offerings with our clients and will eventually coalesce into better, more impactful development in the rural communities we serve. While COVID-19 remains a factor and influences our intervention strategies and, at times, the intensity of activities we can undertake and the number of clients who can be effectively reached, the program has learned to adapt, remain flexible, and continue implementing. The challenges we face in implementation are aggravated by COVID-19 restrictions but also by the semi-porous border openings, lack of clarity on travel rules and regulations, an economy constrained by high inflation, a devalued currency, reduced economic activity, restrained choice and volume of trade goods and supplies, and a stretched public service sector feeling the strain of its tax base. Together with a large youth unemployment and under-employment bulge and continuing presence of active militia activity within the province, the elements are united for augmented tensions and a resurgence of conflict. Progress, however, is being made. Confidence among value chain actors is building, and we see this translating to the formalization of contracts, increased aggregation of goods in collectively run warehouses, and increasingly efficient trade flows from surplus to deficit basins within the project zone. The Market Information System and the information it generates are garnering interest, and local authorities have committed to contributing to its cost as we transition to greater operational sustainability for the system. There is increased rationality and an evidence base to pricing which should facilitate win-win negotiations in the marketplace and improve consistency in revenue generation in the rural communities. The program has undertaken several initiatives to improve productivity and accessibility of improved inputs and to improve professionalism and transparency in the enterprises managed by our clients and technical partners. Competitiveness of product will remain an issue if productivity remains low, tax structure and obligations are opaque, and transport infrastructure is progressively degraded. For now, the closure of the international border has favored internal transfers among the territories of South Kivu. This will change once borders open and lower priced goods reappear on the market. Preparing our clients to manage their affairs with greater professionalism will give them an advantage in future negotiations. We note it is easier to convince the private sector to invest in the industrial value chains and its infrastructure, because they are players on an international field. The low volumes of food crops, a large percentage of which are destined for household auto-consumption, and the uncertainty of the environment increase the risk for potential investors in the nutritive value chains. It will be interesting to see how the advent of a diverse portfolio of investment opportunities and risk buy-down alternatives will impact the infrastructural investment climate. We note that the project is gaining traction and generating increased interest among value chain actors and technical services in South Kivu. Demand for our services is increasing and we need to explore the best, most effective ways of responding to this. Further, we need to attain improved proximity in order to intensify our “touch” with clients. Quantifiable data missing from this quarter’s reporting will be
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captured in our next quarterly submission. In closing, we thank USAID for its continued interest in and support.
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ANNEXES
ANNEX 1: Q2 FY 21 FINANCIAL REPORT [This information not available in this version of the report.]
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) 106 ANNEX 2: SVC 2019 COHORT SCORECARD
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) 107 Summary of Attendance Rates and Trends - SVC Coffee Farm College 2019 Cohort, DRC
Attendance Summary
The table below summarizes attendance by groupement for the 2019 cohort of the SVC Coffee Farm College, DRC. From July 2019 to February 2021, a total of 17 training sessions have delivered 13 training topics - rejuvenation, pruning, integrated pest and disease management, composting, weeding, erosion control, record keeping, harvesting, nutrition, mulching, sustainable farm management, coffee planting, and shade management. In total, 9,654 farmers from 8,256 households have attended at least seven out of 13 topics to date and can therefore be considered trained, 49% of the trained farmers are women. The target for the 2019 cohort is 5,000 households 'trained' at the end of the two years of Coffee Farm College. A registered farmer is a farmer who has attended at least one monthly training session. A registered household has at least one farmer registered.
Farmer Attendance - July 2019 to February 2021
Farmers Women Number of Registered Registered Women HHs attending attending attending ≥ Groupement Focal Farmer farmers households attending ≥50% of topics ≥50% of the 50% Groups (n) (n) ≥50% (%) (n) topics (n) (n)
Bubale 1 58 2,697 2,312 1,917 953 50% 1,689
Bubale 2 45 1,751 1,453 1,347 577 43% 1,169
Bushushu 72 3,383 2,851 2,497 1,354 54% 2,106
Ciabanja - Munanira - 61 2,749 2,263 1,559 740 47% 1,382 Muhongoza
Kabulo 1&2 30 1,206 960 700 335 48% 572
Kasheke-Chofi- Luzira 61 2,641 2,035 1,634 853 52% 1,338
TOTAL 327 14,427 11,874 9,654 4,812 49% 8,256
Farmer Attendance Trends The graphs below refer to the training period between July 2019 and February 2021. Attendance has been relatively stable with an average monthy attendance of 7,437 farmers, 49% of which were women. The April and May 2020 training sessions were combined due to Covid-19 restrictions and many focal farmer groups were split into smaller groups to limit groups sizes. The normal training strategy resumed in June 2020 and onwards. The higher attendance at some topics is due to the delivery of review modules in the second year.
Farmer Attendance by Month Female Male
10,000
8,219 7,835 8,000 7,784 7,393 7,576 7,741 7,619 7,437 7,497 7,495 7,250 7,393 7,256 7,226 7,152 6,851 6,703 4,254 6,000 4,142 3,945 3,876 3,811 3,855 3,914 3,736 3,745 3,781 3,738 3,672 3,676 3,614 3,560 3,433 3,347 4,000
2,000 3,642 3,538 3,662 3,514 3,648 3,965 3,890 3,865 3,808 3,656 3,759 3,823 3,580 3,612 3,592 3,418 3,356 Number of Farmers Attending 0 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Jan-20 Feb-20 Mar-20 Apr-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Jan-21 Feb-21 May-20
Training Months Farmer Attendance by Topic Female Male 12,000 11,298 10,764 10,279 10,399 10,161 10,410 10,000 9,613 8,367 7,835 5,694 8,000 5,459 7,741 7,619 7,256 5,230 5,237 7,250 5,125 5,246 4,762 4,236 6,000 3,876 3,945 3,736 3,811 3,676 4,000 5,604 5,305 5,049 5,162 5,036 5,164 4,851 2,000 4,131 3,514 3,865 3,890 3,808 3,580 Number of Farmers Attending of Farmers Number
0 Rejuvenation Pruning Integrated pest Composting Weeding Erosion control Record keeping Harvesting Nutrition Mulching Sustainable farm Coffee planting Shade and disease management management management Training Topics
Gender-Disaggregated Attendance
Gender-disaggregated attendance analysis shows that the number of topics attended is relatively similar for both female and male farmers. A relatively small number of male and females have only attended one topic, perhaps because these farmers were expecting handouts. More male farmers attended just one topic, or attended all topics, than female farmers.
Total Number of Topics Attended by Female Farmers Total Number of Topics Attended by Male Farmers
Male Female 1,000 1,000
800 800
600 600 1,078 949 876 880 400 400 710
mber of Farmers Attending Farmers of mber 684 616 646 643 Nu Number of Farmers Attending 710 684 616 646 643 Number of Farmers Attending Number of Farmers Attending of Farmers Number 559 506 509 495 503 429 467 448 200 422 200 419 418 442 343 372 364 397 252
0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 Total Number of Topics Attended Total Number of Topics Attended Month of Registration
Registration of farmers does not close; however, only a small number of new farmers typically attend their first training after the first six months of training. About three quarters (73%) of registrations took place during the first three months of training.
8,000 7,729 Month of Registration (First Attendance)
Female Male 7,000
6,000 4,112
5,000
4,000
3,000 Number of Farmers
1,892 2,000 3,617 895 981 909 1,000 744 459 498 526 345 483 298 997 223 255 199 153 85 116 95 522 399 426 77 47 37 41 0 275 271 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Jan-20 Feb-20 Mar-20 Apr-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Jan-21 Feb-21 May-20
Month of Registration Dual and Solo Household Registration
About one-fifth (22%) of registered households have a male and female farmer registered; 38% of households have only a female farmer registered; and 40% have only a male farmer registered.
Single and Dual Household Registration by Gender
Two household members Single household member - male Single household member - female 6,000
5,000
4,000
3,000
4,777 4,544 2,000 Number Farmers of
1,000 2,553
0 Household Attendance Type
Average Registration by Focal Farmer Group
On average, 44 farmers from 35 coffee-farming households are registered in each Focal Farmer Group. Of these 44 farmers, 22(50%) are women. Registration Averages
Farmers Households Women 50 45 40 35 30 25 44 20 35 15 10 22
Number of Registered Farmers Registered ofNumber 5 0
Average Number Registered per Focal Farmer Group Trends by Farmer Trainer Gender
Nine out of the 29 farmer trainers are female (31%). Male farmer trainers have a slightly lower average of registered farmers, a slightly higher number of trained farmers, and the same average of trained women farmers. The differences between male and female farmer trainers are not significantly different. Female Farmer Trainers Male Farmer Trainers n=9 n=20
500 500 450 450 400 400 350 350 300 300 250 504 250 494 200 200 329 335 150 150 Average Number ofFarmers Number Average Average Number ofFarmers Number Average 100 100 166 166 50 50 0 0 Registered Farmers Trained Farmers Trained Women Registered Farmers Trained Farmers Trained Women Farmer Age
The self-reported age of farmers, available for 13,939 farmers, shows that female farmers are slightly younger than male farmers. The average age for women is 40 and 42 for men. 26% of male farmers and 27% of female farmers can be considered 'youth', defined as those farmers younger than 30 years old. The majority (74%) of farmers that are attending trainings are 30 years or older. There are 24 youth below the age of 15 years old attending training.
Age - Registered Farmers Female Male
6,000 5,908
5,000 4,353 2,925 4,000 3,654
3,000 2,356 1,808 Number Farmersof 2,000 2,983 1,000 1,846 1,997 488 24 224 0 264 14 years and under Between 15 and 29 yearsBetween 30 and 49 years 50 years and over Age unknown old (youth) old Age
Coffee Farm Size
Self-reported coffee farm sizes available for 10,972 households, show that farm sizes are small. Two thirds (66%) of households have less than 200 coffee trees. The median coffee tree ownership is 150 trees and the mean is 287 coffee trees.
Coffee Farm Size - Number of Coffee Trees
25
20
15
10 20 21 17 17
Percent OfHouseholds(%) 14 5 11
0 <30 30-50 50-100 100-200 200-400 >400 Number of Trees Farmer Attendance By Topic and Groupement
Farmer Attendance by Topic and Groupement
Ciabanja - Kasheke-Chofi- Topic Trained Bubale 1 Bubale 2 Bushushu Munanira - Kabulo 1&2 TOTAL Luzira Muhongoza
Registered 2,697 1,751 3,383 2,749 1,206 2,641 14,427
Rejuvenation 1,668 1,149 2,189 1,383 560 1,418 8,367
Pruning 2,087 1,354 2,685 1,972 744 1,922 10,764
Integrated pest and management 2,002 1,325 2,543 1,809 814 1,786 10,279
Composting 1,976 1,366 2,657 1,722 840 1,838 10,399
Weeding 1,433 908 1,717 1,293 576 1,323 7,250
Erosion control 1,975 1,396 2,552 1,677 785 1,776 10,161
Record keeping 2,046 1,343 2,558 1,908 796 1,759 10,410
Harvesting 1,501 1,073 2,095 1,207 612 1,253 7,741
Nutrition 1,531 967 2,136 1,313 620 1,268 7,835
Mulching 2,206 1,529 2,800 1,915 873 1,975 11,298
Sustainable farm management 1,536 1,021 2,066 1,148 555 1,293 7,619
Coffee planting 1,925 1,346 2,509 1,540 682 1,611 9,613
Shade management 1,476 1,038 1,903 1,090 547 1,202 7,256 ANNEX 3: SVC 2018 COHORT DEMO PLOT YIELD REPORT
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) 108 FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO STRENGTHENING VALUE CHAINS ACTIVITY
2018 Cohort Demo Plot Yield Survey 2020 Kabare Territory, South Kivu Province, DRC
March 2021
Prepared for the United States Agency for International Development, USAID Contract Number AID- 660-C-17-00003, Feed the Future Democratic Republic of the Congo Strengthening Value Chains Activity.
The analysis, interpretation, and development of the report was led by Laterite Ltd with oversight provided by TechnoServe.
DISCLAIMER: This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Tetra Tech, and do not necessarily reflect the views of USAID or the United States Government. TABLE OF CONTENTS
EXECUTIVE SUMMARY 2 INTRODUCTION 4 RESEARCH DESIGN 5 THE SURVEY 6 FIELD REPORT 7 BEST PRACTICE ADOPTION 9 MULCHING 9 WEEDING 10 SHADE MANAGEMENT 11 NUMBER OF MAIN STEMS 12 CHERRY YIELDS 13
1 EXECUTIVE SUMMARY
The SVC Coffee Farm College trained coffee farmers on good agronomic practices, between August 2018 and July 2020 in the Kabare Territory, South Kivu Province, Democratic Republic of the Congo (DRC). The program, delivered in partnership with Tetra Tech as part of the USAID-funded ‘Strengthening Value Chains’ Project, consisted of 21 monthly training sessions in which farmers were trained on 13 agronomic ‘best practices’ in order to increase yields, coffee quality, and farmer income, eventually leading to improved socio-economic outcomes for farmers and their families.
The aim of the Demo Plot Yield Survey is to obtain indicative estimates of yield for demonstration plots (hereinafter referred to as demo plot) and focal farmer fields (hereinafter referred to as farmer plot). Demo plots are sections of 40 trees in a field, in which the farmer trainer delivers the training sessions and the farmers practice implementing the agronomic practices. Therefore, these plots are generally well-managed and have properly incorporated most of the recommended practices. The farmer plot is a neighboring section of the same field (2-3 coffee lines from the demo plot) that is managed fully by the focal farmer1. By running this experiment comparing the two different types of plots, the demo and the farmer plot, we can assume that all other factors that could influence yield including soil quality and elevation are constant. This implies that differences in yields can be attributed to agronomic best practice adoption. However, it is important to note that the sample size is too small to establish causality and draw robust conclusions about the relationship between best practice adoption and coffee yields; (i) The sample size is too small; and (ii) coffee is a long maturing crop, taking nine months from flowering to harvest, so management before flowering will also have a yield impact. For this reason, observation of agronomic best practice adoption at harvest can only be regarded as an indicator of past farm management. Moreover, there may have been ‘spillovers’ in terms of best practice adoption, in that focal farmers may have adopted some of the best practices on the farmer plot, as well as the demo plot.
The average yield and yield per tree of the demo plot is 1.7 times higher than that of the farmer plot. The farmer plots have an average yield of 1.8 kilograms of cherry per tree (median 2.1 kilograms per tree). The yield of the demo plots is higher with an average yield of 3.1 kilograms of cherry per tree (the median is the same). This information is not considered representative of the average demo or farmer plot of this cohort, but rather of the specific plots that have been visited.
Figure 1: Infographic of the average demo and farmer plot yield - for plots visited
(n=19 for the farmer and the demo plots)
1 The focal farmer is the ‘head’/owner of the field on which the demo plot (40 trees) is located.
2 There are also high levels of variation in the yield within the same plot type. Farmer plots yields range from 0.8 kilograms to 3.3 kilograms per tree and for demo plot yields range from 1.0 to 4.9 kilograms per tree. The variation within plots of the same type can be attributed to (i) the small sample size and (ii) many factors that influence yield including soil quality, elevation, and rainfall.
Figure 2: Yield per tree by plot type
We also find differences in best practice adoption between the demo plots and farmer plots, but only the difference for the number of main stems is statistically significantly2 different. Mulching, weeding, shade management, and main stems were compared between the two plot types. The reason we only find a statistically significant difference for the number of stems may be (i) due to the small sample size, preventing us from detecting significant differences, or (ii) because they are truly the only best practices for which there is a significant difference between the two types of plots.
Layout of the report. The next subsection provides a more detailed introduction to the SVC Coffee Farm College Program, followed by a discussion of the research design and a field report. We then show adoption of best practices by plot type and end with a discussion of the differences in yields across the demo and farmer plots.
2 Statistical significance helps establish whether a result, in this case the difference in adoption between the demo and farmer plot, is by chance or due to a factor of interest, in this case the plot type. Statistical significance is calculated using a t-test using a p-value less than or equal to 0.05. This means that there is a less than 5% probability that the results are random.
3 INTRODUCTION
The SVC Coffee Farm College trained coffee farmers on good agronomic practices. The SVC Coffee Farm College, implemented in partnership with Tetra Tech as part of the USAID-funded ‘Strengthening Value Chains’ Project, began implementation in August 2018 in the Kabare Territory of South Kivu Province, Democratic Republic of the Congo (DRC). The training program, which ran from August 2018 – 2020, delivered 21 monthly sessions. Farmers were trained on 13 topics designed to increase yields and improve coffee quality, which in turn will increase income and lead to improved socio-economic outcomes for their families. Over this period a total of 4,975 households and 6,173 farmers, 44% women, were considered trained (attended at least 7 of the 13 topics). The program was implemented in eight groupements (Bugorhe, Bushumba, Irhambakatana, Ishungu, Lugendo, Luhihi, Miti, and Mudaka) in the Kabare Territory in South Kivu Province.
Farmers were trained on 13 key best practices. The topics are: 1. record keeping; 2. weeding; 3. coffee nutrition; 4. integrated pest and disease management (IPDM); 5. erosion control; 6. shade management; 7. rejuvenation; 8. pruning; 9. mulching; 10. composting; 11. coffee planting; 12. harvesting; and 13. sustainable coffee production.
The demo and farmer plots were evaluated on four of the most important yield driving practices in DRC, which could be observed at the first pre-harvest visit: mulching, weeding, the number of main stems, and shade management. The number of main stems can be used as an indicator for rejuvenation. Future surveys will also capture the self–reported use of compost in the previous 12 months.
4 RESEARCH DESIGN
The aim of the Demo Plot Yield Survey is to obtain indicative estimates of yield for demo plots and farmer managed plots. Demo plots are sections of 40 trees in a field, on which the farmer trainer delivers the training sessions and the farmers practice implementing the agronomic best practices. Therefore, these plots are generally well-managed and have incorporated most of the agronomic best practices. The farmer plot is a neighboring section in the same field (2-3 coffee lines from the demo plot) that is managed by the focal farmer3.
Figure 3: Location of demo and farmer plot
DEMO PLOT FARMER PLOT
The difference in yield between the demo plot and farmer plot can be attributed to agronomic best practice adoption. By running an experiment comparing the two different types of plots, the demo and farmer plot, we can assume that all other factors that could influence yield such as soil quality, rainfall, and elevation are constant. This implies that differences in yields can be attributed to agronomic best practice adoption. However, it is important to reiterate that there are a number of reasons why the results cannot be used to establish causality and draw robust conclusions about the relationship between best practice adoption and coffee yields; (i) The sample size is too small; and (ii) coffee is a long maturing crop, taking nine months from flowering to harvest, management before flowering will also have a yield impact. For this reason, observation of agronomic best practice adoption at harvest can only be regarded as an indicator of past farm management. There are likely to have been ‘spillovers’ in terms of best practice adoption, to the focal farmer’s field (farmer plot) so the farmer yields cannot be taken as typical of an average farm.
Demo plots are selected according to a set of pre-specified criteria. The farmer trainer selects one well pruned and managed demo plot from the 10 to 12 demo plots that they manage. The associate agronomy advisor must view and agree with the choice of farm. The criteria for selection are as follows:
3 The focal farmer is the ‘head’/owner of the plot on which the demo plot (a part of the farm) is located.
5 • The focal farmer must be reliable and willing to cooperate and to tell the farmer trainer when they are planning to harvest. • The site is accessible to the farmer trainer, to ensure they are present at each harvest. • The site should be fairly flat, if possible. • The demo plot should have a good yield potential and the agronomy best practices should have been implemented, including well pruned with reduced main stems. • The (focal) farmer(s) should not have harvested too much coffee from the field already.
Each of the demo plots contains 40 trees (typically 5 rows by 8 trees), and the 18 central trees of the demo plot are demarcated for harvest. In the same field an additional set of 18 trees, located 2-3 lines from the edge of demo plot, is demarcated as the farmer plot. The exact number of mature trees with potential to produce coffee is then counted. A mature productive tree is a tree big enough to have the capacity to produce coffee – it would not include recently rejuvenated trees or newly planted seedlings.
THE SURVEY
Before the first harvest, farmer trainers paid a preparatory visit to each focal farmer to ensure they were in agreement to have their plots Figure 4: A demarcated plot harvested, to notify them of the study procedures, and to complete a survey that captured the agronomic status of the field. During the first study visit to the farm, the farmer trainer filled out a tablet survey confirming basic information on the location of the farm including the groupement and focal farmer group. Next, he/she demarcated the demo and farmer plots with string. The focal farmer kept the string and some other permanent indicators like tied cloth or spray paint in place to ensure that they would know exactly which trees were part of the study as a reminder not to harvest without the farmer trainer present. The farmer trainer recorded the GPS location and took a photo of the marked demo plot in a tablet survey. In this survey, the farmer trainer also collected information on the number of trees, the number of main stems on the coffee trees, and the plot’s status in regard to other observed agronomic best practices, i.e. mulching, weeding, the level of shade.
The subsequent visits were conducted each time the focal farmer harvested from either of the plots. The focal farmer was required to notify the farmer trainer well before each harvest round. During the harvesting visits, farmer trainers supervised the harvesting from the two plots separately, ensuring only the marked trees were harvested and coffee placed into different marked sacks. The farmer trainer then weighed the coffee harvested from each of the demo and farmer plots. The GPS location was recorded in the tablet, along with photos of the plots taken before and after harvesting, a record of the coffee weight harvested for each plot, and a photo of the scales taken for confirmation. To increase the accuracy of measurements, weights were recorded three times: once in the tablet, once as a photo of the scale displaying the weight, and once on the paper form.
6 FIELD REPORT
In total, 24 farms were included in the survey, one per farmer trainer. Data was collected by the 24 farmer trainers, between April, 7th and July, 4th 2020. Data was excluded for five farmer trainers because the data was considered unreliable. Most of the coffee harvest took place during April and May with 90% of the visits occurring in those two months.
Table 1: Total number of visits to harvest by month (n=19 farms)
Month harvested Frequency (n) Percentage (%) Cumulative percentage (%)
April 46 43.4 43.4 May 49 46.2 89.6 June or July 11 10.4 100.0 Total 106 100.0
The farms were located in six groupements: Bugorhe, Bushumba, Irhambakatana, Lugendo, Luhihi, and Mudaka in the Kabare Territory in South Kivu Province.
Figure 5: Map of plots by groupement
7 The table below shows the number of farms per groupement. One ‘farm’ covers one demo plot and one farmer plot.
Table 2: Number of plots per groupement
Groupement Number of farms
Bugorhe 2 Bushumba 2 Irhambakatana 6 Ishungu 0 Lugendo 4 Luhihi 4 Mudaka 1 Total 19
A senior agronomy advisor trained the associate agronomy advisor who then trained the farmer trainers on data collection. Laterite, with support from TechnoServe prepared a lesson plan and accompanying instructions that the farmer trainers could use as reference throughout data collection to clarify any questions they had. As per the structure of the program, the agricultural agronomy advisors supervised the farmer trainers throughout data collection.
Laterite conducted daily quality checks of the harvest data, but communication was difficult due to network issues. For the first round, Laterite audited the pictures of the best practices and plot demarcation. In further rounds, Laterite monitored appointments and outliers in yields, and also audited pictures of the scales displaying the weight of the harvested coffee, pictures of the paper form, and pictures taken before and after the harvest. After data collection, the results from the tablet surveys were checked against the hard copy paper forms as a final confirmation. Issues identified included; (i) incorrectly demarcated plots, (ii) unclear photos of scale coffee weights; and; (iii) the weight recorded on the tablet differing from the scale photo weight. When any of these issues occurred, agronomy advisors visited the farmer trainers to verify data submitted via the tablet survey.
Data collection for 19 of the 24 plots farms was completed successfully. There were five farms where the information collected was considered unreliable and therefore farms were excluded from the analysis. For three of the excluded farms, this was caused by a misunderstanding in the instructions on the number of trees to be harvested; farmer trainers were harvesting the full demonstration plot instead of only the central 18 trees. For the remaining two farms, yields were significantly higher than in the other farms which suggests a similar issue, with all 40 trees being harvested; however, we were not able to confirm this. Due to the unreliability of the data, these five plots were not included in the yield analysis.
8 BEST PRACTICE ADOPTION
This section shows the differences in best practice adoption between demo plots and farmer plots. We show differences for mulching, weeding, shade management, and the number of main stems. This information is not considered representative of the average demo or farmer plot of this cohort, but rather of this specific sample of plots that were visited.
We find differences in best practice adoption between the demo plot and farmer plot, but only the number of main stems is statistically significantly4 different. Best practice adoption is higher for mulching and weeding in demo plots than in farmer plots, while the reverse is true with respect to shade management. We may only be finding statistically significant results for the number of stems because (i) they are the only best practices for which there is a real difference or (ii) due to the small sample size which affects statistical power and limits us to detect statistically significant differences.
MULCHING
Mulching has many benefits including Figure 6: Well mulched coffee suppressing weeds, reducing moisture loss from the soil, reducing soil temperatures, and increasing soil organic matter. Mulching is especially important if shade levels are low.
A pass indicates (i) that the farmer has mulched the plot and (ii) that the thickness of the mulch is more than two centimeters.
There are twice as many demo (eight) plots who passed the mulching best practice compared to the farmer plots (four), however this difference is not statistically significant. Most demo plots have mulch (14), but only eight have mulch of adequate depth (2 cm). Less than half (six) of the farmer plots have mulch and four have mulch of adequate depth. Note that the lack of significance may be caused either by a lack of significant difference, or lack of statistical power as a consequence of the small sample size.
Table 3: Adoption of mulching best practice by plot type
Depth of Total number Pass mulching Plot type Mulched plot mulch at least of plots best practice two cm Farmer plot 19 6 4 4 Demo plot 19 14 8 8
4 Statistical significance helps establish whether a result, in this case the difference in adoption between the demo and farmer plot, is by chance or due to a factor of interest, in this case the plot type. Statistical significance is calculated using a t-test using a p-value less than or equal to 0.05. This means that there is a less than 5% probability that the results are random.
9 WEEDING
Weeds can have a dramatic impact on yield, so Figure 7. A field with no weeds the area under the tree canopy, which is the main root zone, should be kept as weed-free as possible throughout the season. However, the field should not be dug, which damages roots, exposes soil to erosion, and can introduce disease.
A plot passes the weeding best practice if (i) it is weeded twice or more per year, (ii) it has no or few weeds under the canopy, (iii) the weeds that are present are no larger than 30 cm and (iv) the farmer has not dug under the canopy. If any of these four components is not met, the plot fails this best practice.
The weeding best practice was adopted at both types of plots: with 17 out of 19 demo plots compared to 13 out of 19 farmer plots, passing; this difference was not statistically significant. All plots, except one farmer plot was weeded twice or more a year. Four plots, two for each plot type, had many weeds. Whenever there were weeds, they were mostly more than 30 cm tall, except for one demo plot. All demo plots also use correct weeding methods, i.e. weeding with a panga under the tree or by hand pulling, rather than digging. In contrast, three farmer plots had been dug under the canopy (Figure 8). Note that the lack of significance may be caused either by a lack of a statistically significant difference, or a lack of statistical power as a consequence of the small sample size.
Table 4: Adoption of weeding best practice components by plot type
Weeded No Pass Total No or twice or Weeds less digging weeding Plot type number few more per than 30 cm under the best of plots weeds year canopy practice Farmer plot 19 18 17 0/2 19 17
Demo plot 19 19 17 1/2 16 13
Figure 8: Weeding methods by plot type
10 SHADE MANAGEMENT
Shade is important for Arabica coffee, which Figure 9: Coffee grown under banana evolved in the dense forests of western Ethiopia. shade Ideally, shade levels should be between 20 to 40%. If the shade level is below 20%, coffee trees will be subjected to high temperatures and high levels of moisture loss from both the leaves and the soil. Very high levels of shade can result in reduced yields. The SVC Coffee Farm College taught farmers the importance of shade, the ideal shade tree varieties to plant, and planting techniques.
To pass this best practice plots need to have at least 20% shade for the coffee trees.
14 demo plots and 15 farmer plots passed the shade best practice; this difference is not significant. As can be seen in Figure 10, most plots that passed this best practice have medium shade levels between 20 to 40 %.
Figure 10: Shade levels by plot type
11 NUMBER OF MAIN STEMS Rejuvenating in a systematic way is important to Figure 11: A coffee tree with maintaining young main stems (less than eight years old). many main stems. Often farmers do not remove new suckers, expecting more coffee from more main stems, although overcrowding and weak growth results in the opposite impact. Farmers are taught to keep no more than four main stems, with two or three ideal. Farmer trainers recorded the average number of main stems per tree.
On average, farmer plots have one more stem (3.3) than demo plots (2.6). This difference is statistically significant at a 1% level. The median number of stems for both plots is three. There are six farmer plots in which the number of stems exceeds the ideal number of two or three main stems: three plots have four stems and three have five stems.
Figure 12: Average number of main stems by plot type
Table 5: Average number of main stems by plot type
Number of Standard Plot type Mean Median Minimum Maximum observations deviation
Farmer plot 19 3.3 3.0 0.8 2.0 5.0
Demo plot 19 2.6 3.0 0.6 1.0 3.0
Note for interpreting the table of results presented above:
• This table summarizes yields for farmer and demo plots. The first column shows the number of observations. The second column shows the mean number of stems. The next column shows the median number of stems, followed by the standard deviation, minimum and maximum.
12 CHERRY YIELDS
We expect higher yields for demo plots in comparison to farmer plots assuming that agronomic best practices are more systematically implemented on the former than on the latter plot type. Demo plots are sections of 40 trees in a field, in which the farmer trainer delivers the training sessions and the farmers practice implementing the agronomic best practices. Therefore, these plots are generally well-managed and have incorporated most of the recommended best practices. The farmer plot is a neighboring section of the same field (2-3 coffee lines from the demo plot) that is managed fully by the focal farmer. For this reason, we expect that the average yield for these demo plots is higher than for the average the farmer plots.
The average yield and yield per tree of the demo plot is 1.7 times higher than that of the farmer plot. The farmer plots have an average yield of 1.8 kilograms cherry per tree (median 2.1 kilograms per tree). The yield of the demo plots is higher with an average yield of 3.1 kilograms cherry per tree (the median is the same). Thus, while we cannot make any causal statements to be extrapolated to other settings due to the small sample size, these findings indicate that in this setting, demo plots performed better in terms of coffee yields.
Figure 13: Infographic of the average demo and farmer plot yield of the visited plots
(n=19 for the farmer and demo plots)
There are also high levels of variation in the yield within the same plot type. Farmer plots yields range from 0.8 kilograms to 3.3 kilograms per tree and for demo plots yields range from 1.0 to 4.9 kilograms per tree. The variation within plots of the same type can be attributed to (i) the small sample size and (ii) many factors that influence yield including soil quality, elevation, and rainfall.
Table 6: Yield per tree in kilograms by plot type
Number of Standard Plot type Mean Median Minimum Maximum observations deviation
Farmer plot 19 1.8 2.1 0.8 0.6 3.3
Demo plot 19 3.1 3.1 1.0 1.4 4.9
Note for interpreting the tables of results presented above:
13 • This table summarizes yields for farmer and demo plots. The first column shows the number of observations. The second column shows the mean yields (in kilograms). The next column shows the median yields, followed by the standard deviation. The final two columns show the minimum and maximum yields recorded.
Figure 14: Yield per tree by plot type
14
ANNEX 4: ENVIRONMENTAL MITIGATION AND MONITORING REPORT (EMMR) Project/Activity Data Project/Activity Name: Feed the Future Democratic Republic of the Congo Strengthening Value Chains Activity (SVC) Geographic Location(s) (Country/Region): Democratic Republic of Congo Implementation Start/End Date: 23 May 2017 to 22 May 2022 Contract/Award Number: AID-660-C-17-00003 Implementing Partner(s): Tetra Tech ARD Tracking ID: RFP No. SOL-660-17-000001 Tracking ID/link of Related EMMP: RFP No. SOL-660-17-000001 Tracking ID/link of Related IEE: https://ecd.usaid.gov/repository/pdf/48791.pdf Tracking ID/link of Other, Related Analyses:
Organizational/Administrative Data Implementing Operating Unit(s): USAID DRC (e.g. Mission or Bureau or Office) Lead BEO Bureau: AFR Prepared by: Tetra Tech DRC Date Prepared: 4/15/2021 Submitted by: Benjamin E. Lentz, Chief of Party Date Submitted: 4/30/21
Environmental Compliance Review Data Analysis Type: EMMR Additional Analyses/Reporting Required
Purpose Environmental Mitigation and Monitoring Reports (EMMRs) are required for USAID-funded projects when 22CFR216 documentation governing the project imposes conditions on at least one project/activity component. EMMRs ensure that the ADS 204 requirements for reporting on environmental compliance are met. EMMRs are used to report on the status of mitigation and monitoring efforts in accordance with IEE requirements over the project implementation period. They are typically provided annually, but the frequency will be stipulated in the IEE. Responsibility for developing the EMMRs lies with USAID, but EMMRs are usually prepared by the Implementing Partner
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) 109
(IP) and submitted to USAID. This report was prepared by the SVC Project Deputy Chief of Party (DCOP). Scope This EMMR describes mitigation measures implemented in Quarter 2 (Q2) Fiscal Year 2020 (FY20), including challenges encountered, and corrective actions taken. It describes the status of each required mitigation measure as stipulated in the Environmental Mitigation and Monitoring Plan (EMMP) and provides a succinct update on progress regarding the implementation of the EMMP. This EMMR includes the following 1. Narrative description of the EMMP implementation and monitoring system, any updates to the system, any staff or beneficiary trainings conducted on environmental compliance, lessons learned, and other environmental compliance reporting details. 2. An EMMR table summarizing the status of mitigation measures, any outstanding issues relating to required conditions, and general remarks. 3. Photos of mitigation measures and activities, or other related attachments.
USAID Review of MMR [The routing process and associated signature blocks may be customized by Bureau or Mission. Please follow Bureau- or Mission-specific guidance. Include signature blocks in accordance with Bureau and/or Mission policy. At a minimum include the noted required signatures. Add other signatures as necessary.] Approval: Carter Hemphill, Activity Manager/A/COR [required] Date Clearance: Diane Mbanzidi, Mission Environmental Officer [as appropriate] Date Clearance: NA [NAME], Regional Environmental Advisor [as appropriate] Date Concurrence: NA [NAME], ______Bureau Environmental Officer [as required] Date
1.0 PROJECT/ACTIVITY SUMMARY The DRC Kivu Value Chain IEE, approved in August 2016, recommends categorical exclusions for activities involving education, training, or technical assistance (except those related to crop production), as well as for all studies, workshops and meetings. Negative Determinations with Conditions were recommended for the following types of activities: experimentation and demonstration plots, improved crop varieties and cropping systems, technical assistance and training related to crop production, the installation and management of seed and tree nurseries, soil fertility management, integrated pest management, post-harvest processing and storage technical assistance, infrastructure development (wet mill and/or storage construction), and small scale irrigation (which did not become a component of the SVC Activity). Deferrals were recommended for pesticide use, micro-hydro rehabilitation, and large- scale land levelling (none of which became components or activities of SVC).
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The SVC Activity is designed to complement USAID investments in governance, peace and stability, access to finance, food security, health, education and environment, to strengthen the foundation for durable peace in eastern DRC. It applies a nutrition-sensitive value chain and market systems development approach that combines technical assistance and capacity building for value chain actors, credit facilitation, making market linkages, public-private partnership development, social behavior change communication, and advocacy to support soy, bean and specialty coffee value chain development in South Kivu. Expected impacts are as follows: • 60,000 households with access to improved agricultural inputs and market systems; • 15,000 households with an estimated average of a 30% increase in agricultural productivity; • 15,000 households increase annual income by $125 USD/year. Objectives will be achieved through the following components: • Component I: Build capacity of vertical and horizontal actors in targeted value chains • Component 2: Enhance coffee production • Component 3 (Cross cutting): Develop and implement public-private partnerships • Component 4 (Cross cutting): Enhance access to commercial financing, including through technical assistance to implement Development Credit Authority (DCA) agreements And the following cross-cutting priorities: • Conflict sensitivity and resilience; • Feed the Future goals; • Gender; • Climate-smart agriculture; • Value chain and market systems development; and • Sustainability and local systems strengthening. 2.0 INSTRUCTIONS No specific condition from the Mission
3.0 MANAGEMENT STRUCTURE FOR ENVIRONMENTAL COMPLIANCE (EC) 1. There is no specific position for Environmental Compliance (EC); technical staff should be familiar with EC requirements. The DCOP, the Value Chain Manager, the Agricultural Input Supply Specialist and the Post-Harvest and Handling Specialist all have some responsibilities around EC, in conjunction with their responsibilities regarding coffee production and harvesting, post-harvest processing and storage, agro-input supply, and overall technical coordination and program quality. 2. In the absence of specific positions, compliance will be a shared responsibility among three staff, the Agricultural Inputs Specialist, the Post-Harvest Handling Specialist, and the Value Chain Manager. 3. They will report to their line manager (DCOP), who will ensure overall EC. 4. The Chief of Party (COP) has overall reporting responsibility for the project, but the DCOP will draft the EMMR.
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4.0 MONITORING AND REPORTING FOR ENVIRONMENTAL COMPLIANCE Nine activities were carried out this quarter; (1) verification of sites prior to the implementation of the demonstration plots on soybean and rhizobium (2) verification of soybean seeds for demonstration plots on soybean and rhizobium, (3) training of coffee farmers on integrated disease management, (4) training of coffee farmers on composting techniques, (5) training of SVC Business adviser on EMMP/SUAP, (6) training of washing station staff and SVC staff in the Coffee Quality Institute (CQI) - Q processing Level 2 Professional training, (7) training of washing station staff on cupping of daylot samples and sourcing of cupping, (8) proximity monitoring (at 6 warehouses and at two agricultural input shops), and (9) Technical advice provided to 16 coffee washing stations on site selection, site development for the washing station, installation of fermentation tanks and on management of waste channels (wastewater and coffee pulp, etc.). • Site for demonstration plot on soybean and rhizobium are appropriates for the demonstration plots. There is no risk of erosion. There is no water body or stream within 30 meters from demonstration plots • Soybean varieties (Imperial and Saga) and soybean seeds used in the demonstration plots on soybean and rhizobium, in Kishinji, Bulenga and Minova (Kalehe territory), Mweya, Bishibiro, Kakondo, Kashusha and Kayanja (Kabare territory) and Kakono, Bitesi, Kamanyola ( Walungu territory) are from INERA. They are not genetically modified organisms (GMO). • Inoculant used as rhizobium source in the demonstration plot on soybean and rhizobium is Nodumax. It was from IITA (Kalambo) • 6845 farmers including 3402 women (49.47% ) involved in the coffee college were trained in integrated diseases management in January 2021 in Kalehe territory • 7845 farmers including 3583 women (47.9%) involved in the coffee college were trained in composting technique from January to February 2021 in Idjwi territory • 12 SVC staff including 2 women, Business Advisers were trained in EMMP and SUAP on February 2021 by SVC Access to Input Specialist in Bukavu • Technical advice provided to 16 coffee washing stations by SVC project business advisers on site selection, development for washing station site, installation of fermentation tanks and on management of waste channels (wastewater and coffee pulp, etc.), from January to March 2021. • 14 client washing station staff and 3 SVC staff (14 men and 3 women) participated in the CQI - Q processing Level 2 Professional training at ONAPAC in Bukavu • 24 washing station staff (20 men and 4 women) were trained on cupping of daylot samples and sourcing of cupping to improve profitability. • 2 proximities monitoring visits activities took place at: ‒ 6 warehouses (SAICO warehouse in Birava/ Kabare territory, UCOKA/North warehouse at Minova market/ Kalehe territory, UCOAK/Sud warehouse at Kalehe market/ Kalehe territory, Association de Développement du Bien Être des Paysans (ADBP) warehouse in Kamanyola/ Walungu territory, Union des Femmes Musulmanes du Congo (UFMCO)warehouse in Kamanyola/ Walungu territory and the Femme Leve Toi Association warehouse in Kamanyola/ Walungu territory) ‒ 2 agricultural input shops, Penda Kazi Mulimaji and Pharmacy Elite in Kamanyola, Walungu territory)
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5.0 EMMR TABLE FOR DRC Strengthening Value Chains 1 January 2021-31 March 2021
Project/Activity/ Status of Mitigation Outstanding Issues Remark Sub-Activity Measures Relating to Required Conditions 3.2. Crop production (includes coffee, other export crops, dry beans, soybeans, horticulture, etc.) 3.2.1. Experimentation and Soybean seeds used in the None to report None to report demonstration plots demonstration plots on soybean and rhizobium are from INERA a reliable source No GMO varieties used in demonstration plots on soybean and rhizobium The inoculant used as rhizobium source in the demonstration plot on soybean and rhizobium is Nodumax. It is from IITA (Kalombo). Site selected for the demonstration plots on soybean and rhizobium are appropriate (no risk of erosion, no river/, water stream within 30 meters from the demonstration plots) 3.2.2. Technical assistance and 6845 farmers including None to report None to report training on crop production 3402 women (49.47% ) techniques involved in the coffee college were trained in integrated diseases management in January 2021 in Kalehe territory 7845 farmers including 3583 women (47.9) involved in the coffee college were trained in composting technique from January to February 2021 in Idjwi territory 12 SVC staff including 2 women, business advisers, trained on EMMP/SUAP from 24 to 26 February
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Project/Activity/ Status of Mitigation Outstanding Issues Remark Sub-Activity Measures Relating to Required Conditions 3.3. Post-Harvest Processing and Storage (coffee, other export crops, soybeans, dry beans, etc.) 3.3.1. Technical assistance on 14 client washing station staff None to report None to report post-harvest coffee processing and 3 SVC staff (14 men and 3 women) participated in the CQI - Q processing Level 2 Professional training at ONAPAC 24 washing station staff (20 men and 4 women) were trained on cupping of daylot samples and sourcing of cupping to improve profitability. 3.3.2. Technical assistance on Proximity monitoring visit to None to report None to report storage of crops and project actors to monitor the commodities implementation of recommendations received on post-harvest techniques and warehouse management:
a. Kabare territory Lack of hygiene and Société Agro-industrielle du ventilation in Société Congo (SAICO) warehouse in Agro-Industrielle du Birava Congo (SAICO) warehouses. SAICO
manager was advised on the need to have pallets, wood, or bricks so that the bags containing the agricultural products and feed after processing are not on the floor. He was also advised on the ventilation of the warehouses.
b. Kalehe territory No labeling of Union de Cooperatives pesticides (fungicides) Agricole de Kalehe/Sud repackaged in 500g and (UCOAK) warehouse at 1kg bags Kalehe market , Union de Cooperatives Agricole de Kalehe (UCOAK)/Nord warehouse at Minova Market Labeling of repackaged c. Walungu territory pesticides (fungicides)
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Project/Activity/ Status of Mitigation Outstanding Issues Remark Sub-Activity Measures Relating to Required Conditions In Kamanyola, 3 warehouses is done on the shelves. were visited including Managers of the two Association de agricultural input shops Développement du Bien Être were advised to place des Paysans (ADBP) labels on the bags that warehouse, Union des contain repackaged Femmes Musulmanes du fungicides Congo (UFMCO) warehouse and the Femme Leve Toi Association warehouse At two agricultural input shops: Penda Kazi Mulimaji and Pharmacy Elite in Kamanyola (Walungu territory) 3.4. Soil amendment and agro-chemicals Technical assistance and advice None to report. None to report None to report to farmers on proper soil No activity involving advice to amendment techniques and farmers on proper soil safe use of agro- chemicals amendment techniques and safe use of agro- chemicals took place this quarter 3.6. Infrastructure rehabilitation and construction. Rehabilitation and Technical advice provided to None to report None to report construction of buildings, 16 coffee washing stations by shelters and other SVC project business advisers structures, including: on site selection, development • Coffee Washing stations of the washing station site, • Buildings, sheds and installation of fermentation covered platforms for tanks and on the processing equipment management of waste • Hard-surface outdoor channels (wastewater and drying floors coffee pulp, etc.), January to • Storage and warehouse March 2021. facilities 3.7. Micro-hydro rehabilitation, construction, and electricity distribution Design, rehabilitate, upgrade, None to report. None to report None to report or construct micro-hydro No activity involving Micro- generation capacity or hydro rehabilitation, electricity distribution systems construction, and electricity distribution has been implemented
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6. Keys activities undertaken in Q1 FY21 6.1. Crop production (include coffee, export crops, dry beans, soybeans, horticulture, etc.) Four activities were carried out this quarter including verification of source of bean varieties and seeds used in the demonstration plots, verification of sources of seeds for coffee varieties, soybean and bean varieties used in the experimental plots, training of coffee farmers on soil erosion control and training of coffee farmers on composting techniques. 6.1.a. Demonstration plots on soybean and rhizobium Verification of bean seed source Soybean varieties and soybean seeds used in the demonstration plots on soybean and rhizobium were from INERA. Two varieties used in the demonstration plots are Imperial and Saga. More likely, they were introduced in DRC by Illinois University and released by INERA many years ago in the three territories of SVC activities ( Walungu, Kabare and Kalehe). Verification of rhizobium (Nodumax) source The inoculant used as rhizobium source in the demonstration plot on soybean and rhizobium is Nodumax. It’s from IITA (Kalombo). Nodumax is a bio fertilizer with rhizobium as its active ingredient. It contains 50% of culture (rhizobia) and 50% of the carrier material (peat). It also serves to replace nitrogen fertilizer. Site verification before implementation of the demonstration plots on soybean and rhizobium The demonstration plots were set up in 12 sites in the three project territories of activities ( Walungu, Kabare and Kalehe). The 12 sites are Kashinji, Bulenga and Minova in Kalehe territory; Mweya, Bishibiro, Kakondo, Kashusha and Kayanja in Kabare territory; and Kakono, Bitesi and Kamanyola in Walungu territory. SVC Access to input specialist and the intern agronomist visited the sites for the demonstration plots on soybean and rhizobium prior to the implementation of the demonstration plots. The visit took place from 8 to 16 February 2021. The site verification took place during the monitoring of the demonstration plots on bio fortified bean varieties and bean seed multiplication fields. It came out from the site’s verification that no stream or water body was identified by SVC Access to Input Specialist within 30 meters from the demonstration plots sites. In addition, there is no risk of erosion. Partners involved in the demonstration plots on soybean and rhizobium, sites with demonstration plots and the demonstration plots’ GPS coordinates are presented in the below table 1 Table1. Partners involved in the demonstration plots on soybean and rhizobium, sites with demonstration plots and the demonstration plots’ GPS coordinates. 6.1.b. Technical assistance and training programs on crop production Three trainings were organized this quarter. Two training were held for farmers involved in coffee college and one training for SVC staff, business advisers, on EMMP/SUAP. The two-training organized for farmers involved in coffee college were the training on integrated disease management in Kalehe territory and the training on composting techniques in Idjwi territories. Trainings were provided to coffee farmers by SVC agricultural advisers as part of coffee college curriculum. Training on EMMP/SUAP was provided to SVC business advisers by SVC Access to Input Specialist.
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Training on integrated disease management 6845 farmers including 3402 women (49.47% ) involved in the coffee college were trained in integrated diseases management in January 2021 in Kalehe territory The emphasis was on good agricultural practices (compliance with agricultural calendar activities such as weeding on time, pruning of coffee plants), use of adapted varieties and good knowledge of coffee diseases. Training on composting techniques 7845 farmers including 3583 women (47.9) involved in the coffee college were trained in composting technique from January to February 2021 in Idjwi territory Training on composting techniques emphasizes the use of organic materials including coffee cherry pulp, crop residues, etc. The use of coffee cherry pulps in composting contributes to the reduction of pollution and environmental contamination by pulps after processing cherries by coffee washing stations. 6.2. Post-Harvest Processing and Storage (coffee, other export crops, soybeans, dry beans, etc.) 6.2.a. Technical assistance on post-harvest coffee processing. 14 client washing station staff and 3 SVC staff (14 men and 3 women) participated in the CQI - Q processing Level 2 Professional training at ONAPAC in Bukavu. The training aimed to empower participants on specialty coffee processing by providing the following modules: 1. Coffee processing in the context of the value chain; 2. Harvesting of raw material and its characteristics; 3. The anatomy of the coffee fruit and the comparison of processing methods; 4. Pulping; 5. Fermentation; 6. Washing and removing mucilage; 7. Drying; 8. Parchment removal, storage, and defects of green coffee; 9. Integrated quality control during processing; 10. Problems in the coffee processing industry and a glimpse into the future. 24 washing station staff (20 men and 4 women) were trained on cupping of daylot samples and sourcing of cupping to improve profitability. Participating cooperatives were AMKA, CAPCKI COCASKA, and SOPADE. The training focused on two main objectives: (1) explain the benefits of conducting cupping of daily coffee batches and (2) showcase the need to have high quality control and laboratory equipment and in order to perform mini tastings at the washing station.
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Sites with demonstration SVC partners implementing GPS Soil Territories plots demonstration plots coordinates type
Kishinji Concessionaire FODDR 1°.44’24.1’’S Clay 29°01’15,5’’E Bulenga Concessionaire BWEMA 1.6584056,29S Clay Kalehe 29.08808333333 33E Minova Concessionaire SOLFAP 1°42’00.0’’S Clay 29°01’25,1’’E Mweya CLD BIRAVA 2°21’40,30704’’S Clay 28°53’13,6’’E Bishibiro Agricultural input shop Kivu Agro-Business 2°.15’32.7’’S Clay 28°48’39,2’’E
Kakondo Agricultural input shop Kivu Agro-Business To be recorded Clay Kabare in Q3 FY21 Kashusha Private entreprise Programme d’Assistance aux 2°.19’41,8’’S Clay Vulnérables 28°48’17,3’’E
Kayanja Concessionaire BISHWEKA 2°15'25.6''S Clay 28°49'33,3''E
Kakono Concessionaire Groupe Agro-Pastoral GAP) 2°42'08,7''S Clay 28°46'18.7''E Bitesi Concessionaire Groupe Agro-Pastoral (GAP) To be recorded Clay Walungu in Q3 FY21 Kamanyola Producer association DUBR 2°44'01,0''S Clay 29°00'29.0''E
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6.2.b. Technical assistance on storage of crops and commodities No specific activities was organized this quarter. 6.3. Soil amendment and agro-chemical No specific activities was organized this quarter. 6.4. Infrastructure rehabilitation and construction. Like in Q1 FY21, during Q2 FY 21 SVC business advisors supported washing station improvements. In total, 16 received technical advises from SVC business advisers. The 16 washing stations that received technical advises are the ones that received technical assistances on post-harvest coffee processing. They are Alpha New, AMANI, AMKA, CAPACADE, CAPCKI, COACHA, COCAII, COCASKA, Kalambo One SARL, Kivu Coffee, Nakeza SARL, Nicolas, Olame, RUJCAF, SCPNCK and Thomas. Examples of the technical guidance SVC business advisors provide to washing stations includes: • Selecting the construction site and layout of the site; • Sourcing materials for constructing drying table; • Selecting the layout and installation of drying tables; • Installing fermentation tanks and separation canals and supplying the coffee depulper; • Installing machinery and toilets; • Installing stock building and equipment to protect coffee stock (pallet and other equipment); • Providing guidance for managing wastewater and coffee pulp in line with the USAID Environmental Mitigation and Monitoring standards.
6.5. Proximity monitoring visits Two proximity monitoring visits were carried this quarter at: • 6 warehouses including one warehouse (warehouse belonging to SAICO) at Birava in Kabare territory on February 28 by DCOP), one warehouse at Kalehe territory market on February 10,2021by DCOP and Market Linkage Specialist ( warehouses belongs to UCOAKA/Sud), one warehouse at Minova market in Kalehe territory (warehouse belong to UCOAKA/Nord) on February 13,2021 by DCOP and Market Linkage Specialist, three warehouses in Kamanyola in Walungu territory (one warehouse belongs to producer association ADPP, one warehouse belongs to producer association UFMCO and one warehouse belongs to producer association Femme Leves-toi) by DCOP on February 27, 2021. • Two agricultural input shops (Penda Kazi Mulimaji and Pharmacy Elite) in Kamanyola, Walungu territory by DCOP on 26 February 2021
6.5.a. Proximity monitoring visits at six (6) warehouses It came out from observations made during the proximity monitoring at the six warehouses that: At SAICO warehouse • Bags of agricultural products (soybean and maize) and bags of poultry feed were on the ground. There were no pallets or bricks to lift bags from the ground. In addition, it was observed lack of ventilation in the warehouse. SAICO manager was advised to place the pallets or bricks to avoid contact between bags that contain agricultural products (maize and soybean) and poultry feed with the ground.
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At UCOAKA/Sud warehouse, UCOAKA/Nord warehouse, association ADPP warehouse, UFMCO warehouse and association Femme Leves-toi warehouse • It emerged from the visits at the five warehouses mentioned above that bags containing agricultural products (beans, maize, soybean, and cassava) were on the pallets. The agricultural products did not contain any chemical or botanical pesticides. Agricultural products (maize, soybeans, beans) were well dried, cleaned and sorted.
6.5.b. Proximity monitoring visits at two agricultural input shops in Kamanyola, Walungu territory The two visited agricultural input shops are Penda Kazi Mulimaji and Pharmacy Elite in Kamanyola, Walungu territory. The visit took place on February 26, 2021 by DCOP. It emerged from this visit that the two agricultural input shops repackage the fungicide in 0.500 to 1 kg plastic bag. They buy fungicides in 25 kg sack. They repackage fungicide in 0.500 Kg and 1 kg bag taking into account the market demand in Kamanyola. However, they place the labels of reconditioned pesticides on the shelves instead of placing them on the reconditioned bag. The managers of the two input shops were advised to place the labels on the bags that contain the repackaged fungicide. 7.0 EMMP Results Expected results Target FY21 Achieved Q1 Brief explanation FY21 Crop production (includes coffee, other export crops, dry beans, soybeans, horticulture, etc.). Cases of invasive or Zero Observations will Observations will be made in Q3 FY21. The project unwanted plants be made during Q3 activities were suspended because of COVID-19 cases reported as caused FY21 in the office. by the project in the demonstration plot Cases of GMO used Zero No GMO used in Soybean varieties used in the demonstration plots are in the demonstration the demonstration from INERA and are not GMOs and experimentation on soybean and plots rhizobium Percentage of demo 100 % Observations will Observations will be made in Q3 FY21. The project plots under good be made during Q3 activities were suspended because of COVID-19 cases agronomic practices FY21 in the office. (GAP) All fertilizers are 100% Inoculant Inoculant, NODUMAX, used in the demonstration sourced from NODUMAX, used plots on soybean and rhizobium are from IITA. authorized dealer in the demonstration plots on soybean and rhizobium, are from IITA. Cases reported due Zero Observations will to bad or over be made during Q3 Observations will be made in Q3 FY21. The project application of FY21 activities were suspended because of COVID-19 cases fertilizer in the in the office. demonstration plot Reported issues of Zero Zero Two trainings took place this quarter, one on improper agriculture integrated disease management in Kalehe territory and techniques reported one on composting techniques in Kalehe and Idjwi in the crop territories. No issue was reported due bad production technical management of disease or due to bad application of assistance and compost in the coffee farmers’ fields. training programs,
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Expected results Target FY21 Achieved Q1 Brief explanation FY21 including coffee college Reported issues of Zero Not applicable this Will be recorded in Q3 FY21 as coffee campaign badly managed waste quarter started in Q2 FY21. handling in the crop production technical assistance and training programs, including coffee college Number of Not set 6,845 farmers, 6,845 farmers, (3,402 women) involved in the coffee individuals trained on (3,402 women) college were trained in integrated diseases integrated disease involved in the management in January 2021 in Kalehe territory management l in the coffee college were crop production trained in technical assistance integrated diseases and training management in programs, including January 2021 in coffee college Kalehe territory Number of Not set 7,845 farmers 7,845 farmers (3,583 women) involved in the coffee individuals trained on (3,583 women) college were trained in composting technique from composting involved in the January to February 2021 in Idjwi territory techniques in the coffee college were crop production trained in technical assistance composting and training technique from programs, including January to February coffee college 2021 in Idjwi territory Post-harvesting and storage(coffee, other export crops, soybeans, horticulture, etc.) Number of Not applicable this Training planned in Q3 FY21. individuals trained in quarter sustainability of wet mill station in the post-harvest processing technical assistance and training programs Number of wet mill At least 20 Not applicable this Will be recorded in Q3 FY21 because training on stations under good quarter sustainability will be organized in Q3. In addition, PHH practices coffee campaign started in the last week of Q2. Coffee following technical stations will start processing Q3. assistance on post- harvest coffee processing Number of waste At least 20 Not applicable this Will be recorded in Q3 FY21 because training on management plans quarter sustainability will be organized in Q3 and wet mill developed by wet stations will develop their plan in Q3. mill stations following technical assistance on post- harvest coffee processing
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Expected results Target FY21 Achieved Q1 Brief explanation FY21 Number of instances Zero Not applicable this Will be recorded in Q3 FY21 because training on of improper quarter sustainability will be organized in Q3 and wet mill practices at wet mill stations will develop their plan in Q3. stations following technical assistance on post-harvest coffee processing Number of storage At least 20 5 Six warehouses were visited this quarter (SAIDCO, facilities under good UCOAKA/Sud, UCOAKA/Nord, association ADPP, PHH and PO UFMCO warehouse and PO Femme Leves-toi). management SAIDCO warehouse was not under good PHH practices practices: sacks of agricultural products and feed were on the floor and not raised on pallets. Soil amendment and agro-chemical Number of instances Not set 1 1 (Pesticide packaging without labeling) at two of bad practice agricultural input shops: Penda Kazi Mulimaji and reported Pharmacy Elite in Kamanyola, Walungu territory. Number of 0 0 0 pesticide out of the PERSUAP scope was observed pesticides out of the during the proximity visits at 6 warehouses. PERSUAP scope used by the project Number of instances 0 0 No cases observed or noticed in the six warehouses of overuse of agro- visited this quarter. chemicals reported Number of agro- 0 0 No cases observed or noticed in the six warehouses chemical requiring visited this quarter. PPE applied without PPE Infrastructure rehabilitation and construction Number of actors Not set Technical advice 16 washing stations complied with environmental who comply with provided to 16 compliance in relation to site selection, installation of DRC and USAID coffee washing fermentation tanks, and on the management of waste Sector stations by the SVC channels (wastewater and coffee pulp, etc.). Environmental project business Guideline for advisers on site Construction selection, development of the washing station site, installation of fermentation tanks and on the management of waste channels (wastewater and coffee pulp, etc.). Micro-hydro rehabilitation, construction , and electricity distribution Not applicable. SVC will not design, rehabilitate, upgrade, or construct micro-hydro generation capacity distribution system Quarterly Reporting Number of quarterly 4 2 Q1 FY21, Q2 FY 21 reports containing EMMPs submitted to USAID
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8.0 EMMP Challenges, Solutions and Opportunities Challenges Locations Solutions developed Opportunities Appropriate packaging of Kabare, Kalehe, and Awareness and Training on SUAP pesticides by agricultural Walungu territories sensitization of agricultural input shops (old challenge) input shop managers on Regular monitoring at input appropriate pesticide shops by SVC staff packaging and labelling Access to credit by Kabare, Kalehe, and Technical assistance by the Banking institutions provide agricultural input shops for some sites in A2F Specialist to banks credit to agricultural input purchasing appropriate Walungu territories shops packaging (old challenge)
Application of barrier Kabare, Kalehe, and Sensitization on COVID-19 Carry out awareness of the measures by value chain Walungu territories and barrier measures prior SVC target partners on actors against COVID-19 to any activity COVID-19, including (old challenge) barrier measures Implementation of measures taken by the Government of the DRC to reduce the contamination and spread of COVID-19 9.0 Key activities planned for the next quarter (January-Mach 2021) Crop production (includes coffee, other export crops, dry beans, soybeans, horticulture, etc.) • Follow up of demonstration plots on rhizobium • Follow up of experimentation plots on coffee varieties • Training (refreshing) on soil erosion control (Kalehe) • Training (refreshing) on composting (Kalehe) • Training on coffee integrated diseases management (Idjwi) • Training on soil erosion control (Idjwi) • Training (refreshing) on composting techniques (Idjwi) • Training (refreshing) on coffee integrated diseases management (Idjwi) • Agronomic sustainability training Post-harvest and storage treatment (coffee, other export crops, soybeans, beans, etc.) • Training of new washing stations on sustainability • Development of waste management plan by washing stations • Audit of washing stations on sustainability including environmental compliance • Follow up of the implementation of training Soil amendment and agro-chemicals • Monitoring the implementation of technical assistance Infrastructure rehabilitation and construction
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• Monitoring of the implementation of technical advice given to the 16 coffee washing stations on: ‒ Site selection for the washing station ‒ Development of the washing station site ‒ Installation of fermentation tanks ‒ Management of waste channels (wastewater and coffee pulp, etc.) 10. Recommendations • Conduct more follow up visits to evaluate the implementation of mitigation measures by project partners to reduce negative environmental impacts.
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ANNEX 5. PGE COOPERATIVE PARTICIPANT ACTION PLANS Cooperative Needs Identified Actions 2021-2023 AMANI Women’s coffee Identify a lot of coffee produced from women’s coffee fields Integrating youth into the cooperative Offer credit leadership structure Sensitize members to gender Equitable participation in cooperative activities Provide employment to women & youth during the coffee season Provide youth and women with coffee seedlings if they show an interest Contract for entrepreneurship training Encourage women and youth to run for office Establish committees for gender and youth AMKA Capacity reinforcement for women in Training and sensitization leadership Research tools Promote local coffee consumption Recruit a consultant to assist in establishing a VSLA Commence a VSLA for members to access agricultural credit COCASKA Outreach to youth working at mining sites Initiate income generating activities with employment opportunities for youth Register women to institute “women’s coffee” Institute nurseries for coffee seedlings Strong retrograde influence on women’s Train members in techniques destined to improve the rights- keep them at home, barefoot and quality of our coffee pregnant- denying women their rights Sensitize members to the concept of “women’s coffee” Identify women interested in coffee Sensitize members to the idea of sexual equality CAPKI Amend our texts so that they reflect our Discuss these issues during our next general assembly engagement in promoting gender Establish policies in our internal rules of order that Attribute tasks to members without promote women and youth membership in our consideration for age or gender cooperative Keep lots separate depending on their origin Recruit workers without taking gender into consideration Offer training to members without consideration of their gender Revise our cherry register to note the quantities delivered by gender and age in order to promote lot separation
SOPADE Change the criteria for membership Sensitization Reinforce member capacity in terms of Amend certain articles of our legal texts gender and social inclusion Train our leaders in gender Increase the number of women serving in decision-making capacities on our Offer women seats on our cooperative board cooperative board Assist women in planting coffee
Feed the Future DRC Strengthening Value Chains Activity – Q2 FY2021 Quarterly Report (Jan-Mar 2021) 125 United States Agency for International Development Democratic Republic of the Congo Economic Growth Office 198 Isiro Avenue Kinshasa/Gombe Democratic Republic of the Congo FEED THE FUTURE DRC SVC ACTIVITY FISCAL YEAR 2020 ANNUAL REPORT 187