Ruzizi Rice Project This pilot project has the following objectives: 
Ensure that 1 500 tons of (white / hulled) rice is delivered to Bralima Bukavu in 2019 (from 2 seasons) by 5 high potential cooperatives[1]  according to the specifications required by the brewery. 
  Improve the agricultural practices and the quality control management of five rice cooperatives (by training  advice and close field follow-up)
  Facilitate access to farm inputs (fertilizer and seed material) for the rice producers members of the five rice cooperatives
  Facilitate access to agricultural loans for the rice producers and their cooperatives.
  Strengthen the Cooperative Management of the selected 5 cooperatives (in terms of business planning  financial management  governance  marketing and member commitment) in order to make them viable business partners
  Facilitate inter-coop communication and enhance transparency and trust within and between them.
  Possibility to develop jointly (with Bralima  Heineken  the rice coops and Agriterra) a multi-year local sourcing project and seek the financial resources for it (if this pilot project is deemed successful by all parties)
  Seek synergy wherever possible with other rural development projects involving rice farmers (for ex: PICAGL  IWRM)
  

  
  
[1] The rice cooperative ADPA will not figure among the 5 selected cooperatives. ADPA has already a contract with Bralima. Its rice deliveries to Bralima will not be included in the 1500 tons targeted by the project. The goal of this Local Sourcing rice project is to facilitate a sustainable business relationship between 5 high potential rice cooperatives of the Ruzizi plain in Congo with the Bralima brewery in Bukavu whereby 1500 tons of rice is delivered in 2019. 5.1 Professionalisation of the cooperatives
The support of Agriterra for the selected cooperatives will be demand driven and customised per organisation according to the specific needs and capacities. Usually Agriterra’s business advisors support the development of cooperatives through three main areas of intervention: business development  governance and financial management.  
  
                                                    Cooperatives exists by the grace of their members and work in the interest of their members to fully capitalise on the potential of the membership base  the governance of a cooperative is crucial. Members need to trust their leaders the leaders need to be in control and themselves controlled (by a supervisory board) and the management needs to execute the assignments attributed to them by the board of directors. This entire system of checks and balances  transparency and trust is comparable in most agricultural cooperatives. Agriterra will strengthen these dynamics using its Agripool network where peers can exchange knowledge and experience  and specific trainings will be organised.
  
Financial management is key for running a solid business and is even more important in a collective enterprise where hundreds of members are shareholders. If finance is not managed properly  trust can vanish  and members will stop being loyal to their cooperative  resulting in side-selling  poor crop quality  loan default  etchellip,. Agriterra will bolster the financial management of the cooperatives as well as the roles the various governing bodies have to play to make sure the right decisions are being made. Bralima is looking for reliable business partners that respect its contracts and this will be an integral part of the approach.
  
Developing the business of cooperatives is an art rather than it is a science. Although cooperative businesses can have a lot of resemblances when they operate in similar value chains  often the business dynamics are very particular. When business development as an approach is concerned  Agriterra utilizes its proximity to its clients with its local business advisors. These business advisors support the cooperatives in realizing their objectives by developing annual action plans with them and strictly following up on these plans. As these action plans are formulated based on the strengths and the weaknesses of the cooperative  the support is highly customized. One cooperative may need to strengthen its service provision to its members  another may need to focus on product quality and yet another cooperative needs to strengthen its marketing activities. While taking the action plan of the cooperative as a starting point  Agriterra’s business advisors select the right type of support from their wide pallet of services. Through proximity coaching  exchange visits  trainings and peer-to-peer knowledge exchange  cooperatives are taken to the next level.
  
 
  
5.2 Ensuring sufficient rice quality and quantity
Seven preliminarily identified cooperatives have shown a willingness to enter into a contractual agreement directly with Bralima and to be able to meet the requirements set by the brewery for which the production will have to increase as well as the post-harvest handling of the rice. Agriterra will select five of these seven for its first interventions. The increase of production of rice in absolute terms as well as in terms of tons per hectare (productivity)  seems to be a realistic objective if Agriterra can offer its services to the cooperatives.
  
With the help of an agronomist with proven experience in rice production  experts and peer exchange  Agriterra will improve the agricultural practices of the producers with practical trainings  frequent coaching during field visits and improving/setting up internal follow-up systems within the cooperatives.  
  
 
  
5.3 Facilitate access to farm inputs and access to finance
Access to farm-inputs and to loans is crucial for increasing the production at farmer level and for cooperatives to play a meaningful role in the value chain. Agriterra does not aim to position itself in a system of making available seeds  fertiliser or financial credit  because this isn’t sustainable. However  Agriterra will engage with the active services providers in the vicinity such as agro-shops  fertilisers retailers  Coopératives d’épargne et de crédit (COOPECs  or in English SACCOs[1]) and banks.  By strengthening these organisations and proposing creative and risk-mitigating business solutions (think of tri-partite contracts)  and in collaboration with Bralima and the cooperatives  access to finance and to farm-inputs can be eased and increased. For example  when a farmer applies for a loan at a COOPEC to purchase inputs and the cooperative can be a guarantee for this loan because of the contract it has with Bralima  that loan will be granted easier.
  
To accelerate this system  Bralima can consider going into separate contracts with these SACCOs as a catalyst of the process and Agriterra will be available to guide this process.
  
5.4 Clarity of contractual arrangements
To ensure sustainability  Agriterra will not be an actor in the value chain but solely a supporter facilitating development and linking parties for synergy. Too often has Agriterra seen projects flourish for the time they exist but collapse as soon as the supporting NGO withdraws. The cooperatives should be in the driver seat and bear the responsibility of their decisions and efforts. Agriterra will support them in the process of organising themselves in a sustainable manner as a solid business partner of Bralima. Therefore  Agriterra will strongly contribute to the feasibility of contracts  improve the clarity of the contractual conditions  and ensure follow-up so that the coops are going to meet their commitments. Agriterra will ensure that the content of contracts is well known by members of cooperatives. With regard to price setting modality Agriterra won’t participate in price negotiations but will prepare the cooperatives to engage in negotiations with Bralima themselves  being well-informed and with confidence.
  
5.5 Facilitate communication between Bralima and the rice cooperatives
For a business relationship in local sourcing to last  both parties need to understand each other sufficiently and allow trust to grow gradually. Agriterra understands farmers and understands businesses. Agriterra will continuously clarify each other’s needs and realities  and facilitate the bridge between the brewery and the producers. 
  
 
  
Bralima’s Local Raw materials manager and other officers involved in local sourcing will be linked to cooperatives  guided during field visits and advised on demand. On the other hand  the cooperatives will be advised to respect commitments and coached to plan better for being able to abide to the contractual conditions. 
  
 
  
5.6 Synergy with other projects and actors
During this pilot project Agriterra will continue keeping itself updated with regard to other relevant projects and actors in the Ruzizi rice value chain. Wherever Bralima and the rice coops can benefit in one way or another  Agriterra will share the information and provide guidance. For example  the World Bank funded PICAGL project is expected to invest in the rice sector in the Ruzizi plain. Both Bralima and the rice coops could benefit from this project. 
  
 
  
On another note  Agriterra and Bralima can actively seek for additional resources to implement a long-term project when both are satisfied with the results achieved during this pilot project. 
  
 
  
[1] SACCOS: Saving and Credit Cooperative Society (“rural cooperative banks”)