Raising income for small holder producers through value chain development Project objectives and results

This proposal is a follow-up to  projects 11qtca-5676 and 07vic-4932 where three values chains (high quality rice, pig, and safe vegetables) were analysed to identify key constraints and opportunities. The Cooperative Development Fund became operational, managed by QTCA, for investment loans for cooperatives. The voucher fund system was rolled out to enable cooperatives to get access to innovative technologies and business development services. Farmers were trained in production technologies. 

Project objectives and results
The project will increase the income of 3,000 farmers (in 150 farmer groups) operating in the three value chains by 15% annually, will improve the access for farmers to business development services, and their cooperatives will improve the coordination in the value chain between farmer groups and other chain actors to establish transparant and fair business agreements.

Specific objectives:
1. To improve product quantity and quality based on market demand
2. To enhance entrepreneurial skills, input supply and marketing services of 45 cooperatives
3. To establish business linkages between farmer groups and chain actors to improve chain coordination and transparancy in trade agreements
4. To increase access to credits and loans by cooperatives from the Cooperative Development Fund, for use in the application of advanced technologies and equipment
5. To strenghten the capacity of QTCA staff in planning, monitoring and evaluation.

Background
This proposal is a follow-up to  projects 11qtca-5676 and 07vic-4932 where three values chains (high quality rice, pig, and safe vegetables) were analysed to identify key constraints and opportunities. The Cooperative Development Fund became operational, managed by QTCA, for investment loans for cooperatives. The voucher fund system was rolled out to enable cooperatives to get access to innovative technologies and business development services. Farmers were trained in production technologies. 

Project objectives and results
The project will increase the income of 3,000 farmers (in 150 farmer groups) operating in the three value chains by 15% annually, will improve the access for farmers to business development services, and their cooperatives will improve the coordination in the value chain between farmer groups and other chain actors to establish transparant and fair business agreements.

Specific objectives:
1. To improve product quantity and quality based on market demand
2. To enhance entrepreneurial skills, input supply and marketing services of 45 cooperatives
3. To establish business linkages between farmer groups and chain actors to improve chain coordination and transparancy in trade agreements
4. To increase access to credits and loans by cooperatives from the Cooperative Development Fund, for use in the application of advanced technologies and equipment
5. To strenghten the capacity of QTCA staff in planning, monitoring and evaluation.

Summary of activities:
ad 1: Production
Baseline surveys, training needs assessment, demonstration models, training manuals, training and extension to 3,000 farmers in 150 farmer groups.
ad 2: Entrepreneurship of cooperatives
Training needs assessment, tailor-made trainings in business management to 45 coops to improve their input supply and marketing service by selected service providers, study tours to advanced coops, market information systems.
ad 3: Agri business clusters
Information sharing, round table meetings, establish business and market linkages between farmer groups and other chain actors resulting in 50 new business agreements
ad 4: Access to credits
Study visits to successful Cooperative Development Funds, training to 45 coops in business planning resulting in 45 loans, further resource mobilisation of the Fund.
ad 5: P,M&E capacity
Training to QTCA staff in planning, monitoring and evaluation following the DCED standard, study trips.

Budget
Budget is EUR 350,000 for 2 1/2 years, of which 85% is requested from Agriterra, and remaining is contributed by QTCA.

M&E targets
see target tab.

Sustainability
The project is meant as model for all the 375 cooperatives in Quang Tri province towards their sustainable development in the dynamic market environment. Experience gained in this project on productivity improvement, business development of cooperatives, and value chain coordination will be upscaled to other cooperatives. The Cooperative Development Fund will ensure financial sustainability.

To improve the income and employment of smallholder farmers as member of cooperatives engaged in three value chains: high quality rice, pig and vegetables in Quang Tri Province through addressing the key constraints identified in the value chain analysis.