2020 Rice project Ruzizi  beyond This project is the continuation of the pilot project Local Sourcing of Rice in Congo DRC with Bralima/Heineken of 2019 (18at-8092). This project is an "umbrella" project in which Bralima  contributes funds to Agriterra for implementing the following 6 projects with the supplying rice cooperatives: 20adpa-8520  20CPTU-8518  20CMAC-8437  20ucad-8436  20cpba-8433  20csda-8424.Some trainings for all cooperatives and advice days of Faustin  Christophe  Jim and Alex are registered under this project.The initial project idea for 2020 was substantially bigger than the 2019 project but it was amended due to Covid-19. At least   Bralima agrees to continue purchasing rice from the cooperatives and agrees to contribute 56 375 € for this umbrella project and the 6 projects with the rice coops.The contract with Bralima shows an almost 50-50 distribution of contributions between Agriterra and Bralima (Agrit= 56 375 + Bralima =56 375 + coops=6000). The actual total cost of the 6 coops projects and this umbrella project will exceed the total of  € 118.750 - mentioned in the contract with Bralima. Agriterra will use DGIS funds to “fill the gap”. But towards Bralima we have chosen not to mention it and stay in the 50-50 logic. The reason is to prevent that Bralima thinks that Agriterra automatically tops up when their contribution decreases.  The project objectives are:Estimated 1000 tons of white rice delivered to Bralima Bukavu in 2020 (increase possible under conditions)6 Ruzizi cooperatives progressed towards reliable suppliersIncreased income of 1500 to 2000 Ruzizi plain rice farmersImproved rice Value chain Cost for cooperatives that participate to the project (Increase farmers’ Rice production Yield  reduction of processing loss  etc).Potential sources of external funding identified for a 3-years project Bralima-Agriterra  sustainably sourcing rice from DRC cooperativesThe division of responsibilities is:Agriterra: coach amp; professionalize 6 cooperatives and ensures that they deliver approximately 1000 tons of rice (with increase possible under conditions if Bralima’s need rises) to Bralima in 2020 according to the required specifications and delivery plan ;Bralima: signs rice delivery contracts with 6 selected cooperatives on reasonable termsCooperatives: share information (e.g.)  implement advice  develop themselves and abide to the delivery contractsThe project steering committee is composed of: Heineken (Paul Stanger) + Bralima (Mrs Ethel + Mr. Xavier) + Agriterra (Jim + Alex) Ensure rice supply as per agreed delivery calendarIn 2019 five rice cooperatives selected and coached by Agriterra signed delivery contracts and supplied almost 1500 MT of rice to Bralima Bukavu. With timely availability of bank loans in 2020  these 5 cooperatives will increase their supply tremendously. By adding 2 or 3 cooperatives the targeted 3000 MT will be met. Therefore Agriterra will assess and select 2 or 3 additional rice cooperatives of the Ruzizi plain.A rice delivery calendar for 2020 will be made together with Bralima and the cooperatives  considering the production capacity of each cooperative and the needs of Bralima.In 2020 the project will monitor the volumes and quality of deliveries on weekly basis and discuss the progress with all supplying cooperatives immediately and assist them to take necessary decision to ensure supply as per delivery calendar.Agriterra will continue to liaise between the banks and the cooperatives to ensure sufficient and timely loans for enabling the cooperatives to aggregate the paddy and perform processing and delivery as planned. Professionalize cooperative management and leadershipThe 2019 pilot project has shown that there is sufficient rice of satisfying quality in the Ruzizi plain. The project also revealed that the farmers’ cooperatives still need to improve their leadership and management in order to run the operations smoothly  install a trustful relationship with their farmer-members  and make the collective enterprise profitable and sustainable.The leaders of the cooperative boards and control committees will receive further training and hands-on coaching in order to consolidate the leadership of the cooperatives. As for the management  special attention in the form of training and on-the-job coaching will be geared towards the managers  accountants and operations teams of the cooperatives. The objective is that the cooperatives work according to realistic plans and are continuously aware of their financial health thanks to tidy kept bookkeeping. Each cooperative needs to be able to make and use a business plan  a financial plan with annual budget  an operational plan and a cashflow forecast. Besides the management of the cooperative as an enterprise  the project will also assist the cooperatives to improve its rootedness among the members in terms of increase of the amount of official members (paying their shares and fees) and increase of the services of the cooperatives to the members  in order to solidify their commitment and foremost assist them to increase their profit margin at household level  by decreasing the cost of rice production (see next paragraph).Facilitate access of rice farmers to good practices  inputs and finance In 2019 the project was successful in facilitating access to bank loans for the rice cooperatives. The bank agreed to continue issuing loans in 2020 provided that the cooperatives continue to reimburse timely and correctly. This facilitation role for access to loans will continue in 2020.In 2020  the project will dedicate special attention for the individual rice producers  so that they can decrease their cost of production. That will be achieved by continuing the promotion of improved agricultural practices and by facilitating also access to better and cheaper services  such as farm inputs and agricultural loans.For sustainability reasons such services shouldn’t be provided by the project but by the cooperatives themselves. Hence Agriterra will assist the cooperatives in service provision to their members  starting with listing members’ needs (in finance  seeds  fertilizers  etc)  identify input and finance suppliers  prepare realistic and interesting deals  and supply these services to the members.Commercial banks aren’t willing to supply loans to individual smallholder farmers. For the individual rice producers the targeted finance suppliers are Saving and credit cooperative societies (Saccos / Coopec).Some of them active in the Ruzizi plain have been identified in 2019 and will be assessed further in 2020 to evaluate if they can form the so-called Financer-Supplier-Buyer triangle at farmer’s level  like shown below:   Enhance direct relationship between Bralima and the rice cooperativesThe linking of Ruzizi rice cooperatives with Bralima in 2019 has shown that delivery is possible and satisfying for both parties; but it also showed that the necessary administration and communication can’t yet be left to the cooperatives and Bralima alone; regular Agriterra’s interventions and advice is needed. The long-term objective of this local sourcing project is to establish a sustainable business relationship between Bralima and the supplying cooperatives  without continuous third party involvement. A sustainable business relationship is undeniably built on clear agreements and expectations  transparent communication  self-confidence and mutual trust. Therefore  the project will continue to stimulate clarity on the contractual agreements and their practical implications  put the cooperatives in the driver seat  and facilitate direct communication and meetings between Bralima and the supplying cooperatives. For instance 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.After the positive experience of 2019  further assistance will be provided to the Bralima Local Sourcing Team who increases its direct communication with the supplying cooperatives and seeks to smoothen local supply.  Synergy among the cooperatives and with other projects and actorsThe rice cooperatives who supply rice to Bralima Bukavu are located in the Ruzizi plain in the South-Kivu province. The security situation in that area is particularly volatile  especially due to frequent rebel activities. A conflict sensitive approach is required and entails understanding of the situation  careful selection of the supplying cooperatives  communication and collaboration among themselves  avoid negative impacts and maximize positive impacts on the situation  and adopt a do-no-harm approach.The project will continue and intensify the activities to make all cooperatives meet regularly  discuss their performance and impact for the population  and prevent tensions and enhance peace in the Ruzizi plain with their cooperative activities.Synergy among the cooperatives will also contribute to respect the rice delivery calendar as much as possible for example by mutual assistance among fellow cooperatives for those failing to deliver timely.The project will also continue to network with other relevant projects and actors in the Ruzizi plain if the rice cooperatives and the relationship Bralima-Cooperatives can benefit from it: for ex the World Bank funded PICAGL project and the Maji Ya Amani (IWRM) project.  4.6 Monitoring and evaluationThe project management (Agriterra) is responsible for the Monitoring. The project steering committee (Bralima+Heineken+Agriterra) is responsible for the Evaluation.The monitoring is performed continuously during the field visits to the cooperatives and based on the data becoming available gradually (deliveries  loans  supplying farmers  income  etc). The monitoring information is compiled in quarterly progress reports submitted to the project steering committee.The following indicators will be monitored:Number of contracts signed between rice cooperatives and BralimaNumber of cooperatives contracted by AgriterraNumber of cooperatives with bank loans for Rice aggregation amp; saleVolume of bank loans in U$ to the cooperativesVolume of Rice (in MT) supplied to Bralima BukavuQuality of rice supplied (amount of deliveries in category A  B or C)Percentage of monthly delivery compared to planned monthly delivery (as per agreed rice delivery schedule)Time (in days) between rice delivery by the cooperative and payment by BralimaNumber of members registered per cooperativeNumber of farmers supplying to each cooperativeAverage yield per HaNumber of farmers per cooperative using farm-inputsNumber of farmers per cooperative getting a reasonably priced agric loanNumber of farmers beneficiary of project (direct and indirect  M/F/youth etc)Identification of superficies planted per farmer per season.Besides the progress realized regarding the indicators above the final report will also include the total amount of farmers reached by the project  the cost-benefit analysis at rice farmer level  the challenges encountered and recommendations for future projects  and a transparent value chain cost analysis from seed to brewery.