Report African Rice Exchange

2 – 13 August 2015

by bus from Dakar to Ouagadougou … 3500 km ?

with participants from Congo, Tanzanie, Uganda, Belgium

and of course West Africa

Where

will our rice

come from

tomorrow ?

The objective of ARE The origin of ARE dates back to 2014. In October, 4 farmer leaders of West Africa and 3 staff members of VECO

participated in the International Rice Conference held at Bangkok and broadly exchanged with rice producers and

actors in Thailand.

It was such a fruitful experience that the return of the team gave birth to the idea of organizing an exchange visit

at the level of Africa with this red thread: business models. It is obvious that the technical and production aspects

are important; but the intended result of the trip is to spread a broad and rich vision among the participants

relating to the different inter-linked business models in the white rice and parboiled rice sectors as a source of

inspiration for work.

Itinerary and Program Date Country Program

Sun 02/08

Senegal Arrival of delegations at Dakar

Mon 03/08

Senegal Visa applications for Mali Travel to north, St Louis, Rosbethio Visit to the Company Société Filières Agricoles

Tues 04/08

Senegal Travel from St Louis to Tamba via Thies and Kaolack: night at Tamba

Wed 05/08

Senegal Visit of the FO FEPROBA at Anambé night at Tamba

Thur 06/08

Senegal-Mali

Travel from Tamba to Bamako Night at Bamako

Fri 07/08

Mali Visit to Segou; visit of the dam of the Office of Niger, presentation of the National Platform of Rice Producers of Mali (PNPRM) + experiences in marketing with the Commissioner for Food Security Exchanges with the Sexagon on their experiences of co-operatives in processing and marketing; visit to the Artisanal Cooperative of Blacksmiths of the Office du Niger (SOCAFON) Night at Segou

Sat 08/08

Mali- Burkina

Travel from Segou to Bobo via Bama: Night at Bobo Dioulasso

Sun 09/08

Burkina Rest in Bobo Dioulasso ; sightseeing tour night at Bobo Dioulasso

Mon 10/08

Burkina Visit of Research Station of Farakoba Visit of the parboiling center of Douna managed by Departmental Union of Female Parboilers of Douna Night at Bobo Dioulasso

Tues 11/08

Burkina Exchanges with the interprofessional organization CIRB and with the National Union of Female Parboilers UNERIZ Departure to Ouaga ; Night at Ouaga

Wed 12/08

Burkina Exchanges with CORIS BANK international and with AnacorBF Evaluation of the trip; lessons learned; action points on return Night at Ouaga

Thur 13/08

Departure of foreign participants

This diagram gives only the visits and meetings scheduled.

But a large part of the program was presentations based on the lessons learned from the visit to Thailand and

those prepared by the participants: a clear and concise story relating to a business model of rice in the

participant’s country that he/she describes/explains to the others. These presentations took place in the bus

when conditions allow it.

Another part of the program was the feedback sessions on learned items, reflections made by everyone after

visits and previous presentations. These reflections also took place in the bus at times when conditions allow it.

But we did not limit our activities to presentations; besides we carried out practical exercises.

INTRO DUCTION

Participants

Country Participants Position

Congo RD Fabrice MAGHULU S.A. C. D. /Coordinator of the branch office at VECO North Kivu

Sylvestre LUECA B. CDV Specialist in charge of Marketing and Trading VECO South

Kivu

Francoise KABUGHO KABINDO Female rice producer ; member of LOFEPACO

Tanzania Gerald Sakaya SSD Program Manager VECO Tanzania

Kilendu Abdarahamani Juma Rice Producer, chairperson of LOMIA

Mshana Safina Dominiki Female Rice Producer, member of LOMIA

Uganda John Mudusu Rice Producer, chairperson of DIFACOS

Ereng Atyang John SSD Program Manager VECO Uganda

Benin Hermann Reis Azagnandji SSD Program Manager VECO WA branch office of Benin

Burkina Bernadette P. Ouattara/Wininga SSD Regional Coordinator VECO WA

Ibrahim Ouedraogo Regional Representative of VECO WA

Michel Tougma SSD Program Manager VECO WA Burkina

Omar Mbathie BDS Regional Coordinator - VECO WA

Stephane Bayala TRIAS

Djibrill Traore Translator interpreter

Mali Brehima Dembele SSD Program Manager branch office of VECO Mali

Seydou Keita Director National Platform of Rice Producers of Mali

Senegal Babacar Toure IMM and PLA Regional Coordinator VECO WA

Mame Birame Ndiaye SSD Program Manager VECO WA branch office of Senegal

Belgium Jan Aertsen Former Managing director of VECO ; Program Advisor Congo

Christ Vansteenkiste Program Advisor Rice | Agrifinance | West Africa

The Chairman and the Coordinator of the CRCOPR were expected to participate, but this was not possible as they

were otherwise engaged.

Structure of the report

In each country 2 rapporteurs wrote down notes. This report provides only a summary.

For the details of the visits and presentations, you should consult the documents in appendixes.

The report follows the timeframe of the different items in the program more or less.

In order to better find your way through this report, it should be noted that each presentation has its own title

style and symbol:

Visits and meetings

Presentations in the bus

The Reflections of the day

Practical exercises in group

Introduction: The rice sector in Senegal

On Monday, the 3rd

August, the journey started with the general statements of the context of the rice sector in

Senegal (see appendix). A few key items: Production: seems to stabilize in the range of 400,000 to 500,000 tons of paddy per year, equivalent to

300,000 tons of white rice

Demand: estimated at 1,200,000 tons of white rice in 2013

Imports: more than 70% of the demand

Consumption: preference for the broken rice

Societé des Filières Alimentaires (SFA) - Saint Louis

At the Société des Filières Alimentaires (SFA), the group was

entertained by Mr. Paul Kock, chief operating officer of the

unit of husking in SFA. This company aims to support producers

so that they can provide the company with paddy of good

quality. They promote an inclusive business model for small

producers that are not taken into account by the classical

model applied in the region of St Louis.

Double value proposition

Towards customers: it provides two qualities: the broken

grain ', as the preferred one in the Senegalese market,

and 'the whole grain '.Even though the latter still contains

+ /- 15% of broken rice, it is regarded as a rice of good

quality by the Senegalese market. Only 2 types of plain

packaging with the same logo and trademark are provided

with a yellow bag for the whole grain rice and a blue bag

for the broken grain rice (25 and 50kg only). The company

claims that packaging matters less than its content..

Towards producers of paddy, suppliers of agri inputs:

services of plowing and harvesting, access to credit for

inputs and a purchase price of paddy fixed by common

agreement at the beginning of the season. The structure of

micro finance ascertains loan extension for the season.

Since SFA collects the paddy, the loan is deemed paid back

to the MFI which can extend other loans to producers.

Then SFA should pay off the amount of the loan (see

diagram as an example)

Customers - distribution - Relationships

Wholesalers of Dakar; the mass market of Dakar

SFA hires trucks for the transportation of the finished

product.

The quality itself ensures a charge free advertising 'by

word of mouth'

Key Activities

> Quality control of the paddy

> Storage of paddy with traceability system and feedback on

the quality in case of problems

> Drying of paddy in case it is supplied above 18% RV

> Transport Logistics for paddy and finished products by

hauling partners.

The system of quality control of SFA consists in a first time to classify the stocks of paddy according to their origin and the variety. The bags are therefore marked out so as to make it easier to find out the origin of bad stocks and ensure the feedback to the relevant producers. Before processing, 10 to 12% of stocks are inspected: humidity rate, quality of the winnowing, uniformity of the variety (no blending of variety). All rejected bags are marked out with the detected faults in order to facilitate the feedback to producers. The inspection is made before paying producers..

MO 03/08 SENEGAL

> Husking, polishing, calibration and packaging of the white rice

> Sale of the white rice and the husk.

< Negotiations with CNCSA or PAMECAS for input loans.

< Contracting with producers (repayment in paddy to the value

of inputs and services delivered)

< Services of plowing and harvest

< Technical Support with advice for the production of a paddy

of good quality

Key Resources

Rice Mill from China with capacity of 8,000 t per year

husking and polishing in several stages ; mechanical

calibration and optical sortex

Electrical drying unit with adjustment of the

temperature and the air volume

Warehouse for storage of paddy of 3,000 tons ; rental of

additional warehouses

Chief operating officer + team ; workers recruited in the

community

Presence of an animator on the field by the producers

Partners

The producers of paddy

PAMECAS and CNCAS for loans

The SAED for the perimeters

The haulers

flows of revenues /Cost Structure

We could not get tangible figures

The whole grain rice is sold at 380 F/kg; the broken grain

rice at 320 F/kg and the paddy purchased at

at 125 F/kg (correct ???)

Cost of processing: 15F/kg

For more info: Terral - Durabilis

The Reflections of the previous day

The mode of land management in West Africa differs from that of RD Congo: It seems as though there were

no conflict between the customary landowners and the state (actually, this conflict exists also in West Africa).

There is a support of the state to producers: land development; monitoring.

There are opportunities for technical and financial assistance to producers offered by the private sector and

the State; which is not the case in the DRC.

Producers master production costs and they know how to develop their income statements.

SFA develops an inclusive business model for small producers that are not taken into account by the

conventional banks; this control system has enabled gaining confidence of producers. The strategy of market

penetration consists in meeting the required quality and using an appealing token (image of an Indian).

SFA succeeds because the business environment is conducive.

SFA offers two value propositions : the first one to producers and the other one to consumers; the company

targets the local market. The business is brisk because the environment is conducive to rice trade.

The quality and the taking into account of the local distribution network foster an effective market

penetration; each link is content with playing its role in the value chain; good relationships between the actors

of the chain.

2 Qualities: 'the broken grain rice and the whole grain rice ', in 2 types of plain packaging with same logo and trademark

High performing rice mill with several components, including mechanical calibrator and sorter

TUE 04/08 SENEGAL

The quality of the product depends on the quality of the agri input and the performance of the processing

unit.

The most important point in the marketing is to ascertain the good quality; once the content is fine we don’t

need to invest in packaging.

The broken rice is valued in Senegal.

The existence of agricultural banks in Senegal (CNCAS).

To ensure a health chain, the support of the government is capital.

Rice should be processed with delicacy; the whole processing system is regulated in such a delicate way to

avoid breaking the rice.

Quality asserts itself but a competitive price is required as well.

Relating to the model: it is a contractualization with groups of small farmers: the specificity of this model is

the pre-funding of the season with repayment in kind

It is an effective model because there are few middle agents and a very pragmatic one. Example: the transport

is ensured through the rental of vehicles.

In a business model, there is some risk sharing and each of the actors is the guarantor of minimizing the

others’ risks. There is always a bank involved in each model.

One cannot build a performing business model by excluding the banks.

Where will our rice come from tomorrow?

Presentation by Christ V.; see appendix for details.

Summary: Three factors demonstrate that rice importation

process for Africa is not a sustainable option.

An ever-increasing demand due to population growth,

urbanization and changes in food habits.

A strained offer because of the lack of developed land for

rice cultivation, the lack of water and climate change.

A precarious balance at the global level between the offer

and the demand strongly influenced by ever changing

policies.

Business Model Canvas: the theory

Presentation by Christ V. ; see appendix for details.

A Business Model describes how the company will earn

money.

The Business Model Canvas is a specific way of presenting a

business model; this presentation is made on a single

sheet of paper with 9 parties, so a canvas.

All the key items are presented on page 1; the value

proposition on page 2;Customerson page 3; the channels of

distribution on page 4; the relationships with the customers

on page 5; the flow of revenueson page 6 ; the key activities

on page 7; the key resources on page 8; the partners

and cost structure on page 9.

In English 'canvas' also means the web (or surface) on which a painter puts his paintings. The Business Model

Canvas is a way to 'draw up' together 'the picture' that represents our company. Thus it is a participatory tool,

a way of mobilizing reflections of relevant actors regarding the majordecisions, which will determine the

company’s life. 'To canvas people' also means to mobilize people around a common goal. The BMC may

be the first step on the road to the development of a business plan.

An inclusive BM will have a double value proposition: one geared to clients, but also another geared to Agro

input suppliers. (see p. e. SFA)

Business Model DIFACOS Uganda

Presentation of a Ugandan model by John Ereng ;

The business model presented by Uganda develops the customers demand and

makes a choice in favor of wholesalers in cities because they need large volumes

and the 2nd

and 3rd

grades (that the rice mill can deliver) and pay in cash.

The business model contains a double value proposition: one geared to clients

and the other geared to the main partners who are member producers.

Anambe FEPROBA: Cooperative of rice seed

Background / History FEPROBA

On Wednesday 05/08/15 the participants in the trip visited two business models: a business model of the

cooperative specialized in the production of quality rice seed and a business model on parboiling .

The basin of Anambeis located in the departments of Velingara and Kolda, in Casamance. In Anambe is located a

developed perimeter (1983) of 5,000 ha powered by two operating dams. In 2008, VECO intervened to support

FEPROBA (Federation of Producers of the Basin of Anambe). ( feproba.anambe@gmail.com.). FEPROBA is

comprised of 3,600 members organized into 5 hydraulic unions and 264 groups, of which a female parboilers’

union and a co-operative of seed producers. From 2008 to 2013 VECO empowered FEPROBA .VECO experimented

with this umbrella organization the contractualization with SFA/Durabilis. Unfortunately it did not work for

various reasons: lack of pumps; constraints to access quality seeds, land development difficulties in 5 areas; lack

of synergy between the actors.

WED 05/08SENEGAL

Business Model Canvas : DIFACOS

Key Partners Main Activities Value Proposition

Client Relations Clients

Key Ressources Distribution Channels

Cost structure Revenu Flows

Direct partners: Farmers Agro-input suppliers Buyers

Indirect partners:

NGOs (VECO, IFDC, etc) Research (NaCRRI/Africa Rice) Local & Central Government BDS providers (EPSEDEC, UCA, etc)

Capturing value: Installing a standard mill, expansion of drying and storage facilities, supervision & coordination of production, bulking Creating value: sourcing of quality agro inputs, training farmers in quality management, provision of credit, maintenance of irrigation infrastructure

For customers: We produce and supply high quality non-aromatic rice at competitive prices What makes us different? Quality, consistency, competitive prices Capacity to supply rice in large quantities

For members:

Market rice at higher prices, facilitate access to credit, access to storage and drying facilities, access to extension services, access to farm equipment

Personalized attention (calls and visits) Maintain regular contact with clients

Supermarkets: Need low volumes of first and second grade rice in constant supply. The rice should be in small and well branded packs (ranging from 1kg-10 kg) Institutional markets: Need low volumes of 2nd & 3rd grade rice Urban-based wholesalers: Need very large volumes of 2nd and 3rd grade rice supplied constantly to them at low prices as they pay in cash Urban-based retailers: Need low volumes of grade 3 rice supplied to them constantly

Direct delivery to retailers, supermarkets, and institutional markets

Human: Management staff Physical: Drying yards, stores, mill, office, machinery Financial: Working capital

Commission from sale of rice (Ushs. 1,058,000,000/= annually) Hire of farm equipment Milling charges (from non-members) Sale of briquettes

Staff/personnel Capacity development (trainings for members) Infrastructure maintenance Working capital (for equipment and bulking) Marketing

The seed co-operative: a business model

Created in 2008, the cooperative of seed production has

100 members (95males / 5females) ; It is a subsidiary of

FEPROBA. The objective of the co-operative is to promote

the access of members to certified seeds.

Value Proposition

Certified rice seeds in several varieties from foundation

seed

The customers ...

Members of FEPROBA, the DISEM by contractual means,

FAO, private customers ;

Production on order placed by customers

Partners:

Key partners: the selected multipliers

FEPROBA has been authorized by the technical

departments of the State to perform as a seed operator

since2015.

(VECO and subsequently FAO)

SODAGRI ( a state run company responsible for the

development of the perimeter); it provides with the

supply of 7 technicians

DiSem (Seed Division of the State): responsible for the

certification and the technical monitoring ; charge with

15,000 F by ha

ISRA (Research Institute) + AfricaRice: stem seed

Key Activities

The seed plots are followed up by the DISEM and the

SODAGRI (seedling density, calendars, purification,

techniques and harvest date).

Conditioning, packaging and storage of seeds

Selecting seed multipliers, based on the following criteria:

be a member of FEPROBA ; attend training on the

techniques of seed multiplication; have a fertile field of at

least 1.35 ha ; comply with the specifications (sufficient

labor force, field monitoring, respect the previous

cropping, etc) ; sell the total seed output to the

cooperative.

Key Resources

The following stem seeds come from ISRA : Sahel 177,

328, 201, 202 and 159.

The following stem seeds come from AFRICARICE: NERICA

4, 6, and WITA 09.

Stores.

Equipment for seeds conditioning.

Coordinator of FEPROBA.

Outcomes

High performing varieties have been identified and

introduced into the basin of Anambe.

A greater demand for certified seeds.

The Mastering of the techniques of production by the

producers.

Production in 2013 : 125 tons (sold at 300 F/kg)

Production in 2014/15 : 1732 tons (sold at 475 F/kg for

R1 and 600 F/kg for foundation seed).

Label of certification seeds R1 with number

Warehouse for stocking certified seeds

Seed conditionning equipment

Seed production field of Mr Diallo

Anambe FEPROBA: Unit of Parboiling

Parboiling is conducted by the Union of Female Parboilers of

Anambe. The model is still in its infancy. The Union has

benefited from the support of the Regional Agency for the

Department of Kolda and that of VECO for the construction of

infrastructure and the acquisition of equipment and tools for

soaking, drying, parboiling, husking and conditioning. The

women process 6 to 10 bags per day. The work is divided into

groups and each group work 3 days /week. The parboiled rice

is sold at 300 FCFA/kg at the market of Diaobe.

The demand is greater than the supply of this processing unit.

Provided that they are competitive, there is a large market in

Casamance and Guinea Conakry. The huller that is acquired by

the ARD is not all suitable for this activity because it puts out a

mixture of broken rice and husk. Another sorter was acquired

but the two equipment are mounted side by side; which does

not facilitate the work of women. In addition, until now the

women use firewood as a source of energy. They must invest

in equipment that allows them to use the husk as a source of

fuel.

Anambe FEPROBA: other options for business models

There are other options for business models about paddy rice and white rice.

The production of 7,800 tons on 1,500 ha, with a potential of 5,000 ha. The Chairperson of FEPROBA, Mr El Hadj

Ali Gano, achieves 8t/ha with 80kg/ha of seed (instead of 125kg), along with broadcasting fertilizer before sowing,

and weeding twice as well as treatment with herbicide after 21 days. Therefore, the potential of offer is available.

As a customer there is the WFP (World Food Program) that purchase the paddy at 150 CFA/kg (25 F CFA above the

ceiling) and that maybe interested in the white rice (average quality). You could consider the rehabilitation of the

rice mill of the former president to deliver this quality.

There are also ongoing negotiations with a Lebanesecontractor who contemplates installing a rice mill to deliver

rice of good quality to the cities of Casamance.

Another possibility could be the setting up of a company that produces compost.

The Reflections of the day

The need for a planned contractualization in view of a planned production.

The need to open the door for new members.

The training in SRI (system of intensified rice production) would enable producers to control their production

costs and be more competitive; the training is planned in the PA 2015 of FEPROBA.

Parboiling: an appropriate model for a wholesome product.

The specialized structure (e.g. seed) is a must.

The role of the state (land development, technical monitoring and seed control) is appreciable, but thanks to

the lobbying of VECO /FAO/ FEPROBA. Now, given the success to Anambe, the state extends expensive gifts

THU 06/08 SENEGAL>

MALI

Traditional parboiling process without steam

Huller Engelbert does not provide quality

(scandal of 4 large combine harvesters which can never be used / FEPROBA must learn how to refuse this

type of gifts and resell them immediately.

Role of leaders and of that the technical team. Their president is visionary and succeeded to Landing without

problems. The coordination (Mohammed BASSOUM) is very dynamic, very professional and respects leaders.

Complementarity between actors: each one playing their role.

Entrepreneurial spirit at all levels.

When we found the right entry door to have early success, the rest follows ... this door of entry is the seeds

for which there is a high demand and which have a remunerative price; this has consecutively catalyzed the

other initiatives of FEPROBA.

To be continued: the research on drying the paddy and the parboiled rice thanks to the solar p. e by the solar

bubble dryer GrainPro, Inc. - Solar Bubble Dryer™

See the possibilities for storage of seeds with " cocoon hermetic" GrainPro, Inc. - Self Verifying Cocoons™

Dare to formulate "business proposals ". Ex. a Lebanese wants to invest, but the trader, the farmers just like

as we do, have a tunnel vision. We could invite the Lebanese to visit SFA at St Louis.

Is it also possible to support the expansion of the conditioning unit for seeds by Kampani?

It is also important to strengthen the control system at the level of the conditioning unit to avoid fraud and

counterfeiting. There are 'traceable' inks for bags, twine, paper ... a small sensor indicates if the ink is genuine

or counterfeited. .:: Centor Thai ::.

Visit to a wholesaler at Kedougou

That visit was not planned. We saw a truck unloading rice and we

negotiated a visit of the store of the wholesaler. That visit enabled

us to notice :

The importance of the local rice vis-a-vis the imported rice;

an estimate of 1/3 of local rice versus 2/3 of imported rice.

The first variety and premium quality of imported rice is the

Thai Super A1. Contrary to what its name suggests, it is

considered to be of low quality in world trade and it

is 100% broken rice and non-aromatic.

That Thai Super A1 rice is delivered in bags displaying a

logo,an African label and Frenchwords: Boabab, Leopard ...

The importers have their packagingmade in Asia in

accordance with their wishes. However, does the content

match with the displayed items on the bags?

The second variety of imported rice is the aromatic rice, 'Hom

Mali' or Thai Jasmine (but also 100 % broken) and a third

variety is the parboiled rice from India (5% parboiled)), long

grain.

The local rice of the trademark Rixel is available as 'a whole

grain of superior quality' and as ' a broken grain of superior

quality.'

Such an exercise (visit of several wholesalers) enables you to

note the varieties and qualities of imported rice, and

therefore the preferences of the local market; these are the

varieties and qualities which should be used as references to

position the varieties and qualities of local rice in terms of

value proposition.

Presentation operating account LOFEPACO North Kivu DRC

From the applied routing, Françoise Kabindo of LOFEPACO, carried out

a thorough calculation of the accounts of her rice field of 1 ha.

Operating costs in 2012:

Total expenditure $748 for 1st + 2nd labor by a tractor; harrowing ;

purchase of 70kg of seeds ; sowing ; watching ; weedings ; harvest,

bag, transport, storing ; but no fertilizer

Quantity harvested: 2,520 kg of paddy less private consumption

(150kg)

Sale of paddy: 2,300 kg to 0.5 $ /kg

Self-consumption: 150 kg and for seeds: 70 kg

Total sales + valuing: $1,260

Margin: $512

Operating costs in 2013:

After a visit to the INERA YANGAMBI, the producer decided to buy

improved seeds 'Lienge' field. No fertilizer

Total expenditure 2013: $848 ; including processing costs to $0.07

/kg

Yield: 3,000 kg paddy ;

1,900Kg of white rice sold to the brewery BRASIMBA at Bemi at

0.87 $ /kg

Total sales + valuing: $1854

Margin: $1,006

Operating costs in 2014:

Fertilizer use: 100kg of DAP and 100 kg of urea hoping a better

crop

Unfortunately, they were plagued with rebel attacks forcing them

to flee from their land, invasion of granivorous birds by lack of

watching: accordingly, she recorded a loss of $425.

LOFEPACO (League of Agricultural Female Producers of Congo) with

1, 9000 members has contracted with BRASIMBA ; credit union ;

collective sales ; warrantage ; customized packaging.

Response :

She was congratulated for the well figured operating accounts and the role of LOFEPACO as she related her

story as a producer in 2012, 2013, 2014)

Respect for the courage ;

To be incorporated in the risk analysis.

Overview of the rice sector in Mali

By the VECO PROGRAM COORDINATOR Mali, Brehima DEMBELE

The rice alone accounts for approximately 5 % of the GDP of the country (SNDI, 2009). It is regarded as a

strategic product in Mali. The national production reached 1,437,748 tons of white rice in 2012/2013. This

production is 93% of the country's needs in rice (see this presentation in the annex). The potential of Mali is

of the order of 2.2 million ha and 15% are exploited.

FRI 07/08 MALI

The Experience of Institutional Purchase in Mali

By Seïdou Keita, Technical Director of the National Platform of Rice Producers in Mali (PNPR M)

See appendix for details

In 2014, the Government of Mali, through the Commissioner of the Food Security of Mali (CSA), has decided

to conduct an institutional purchase of cereals on 25,000 T to build up the National Intervention Stock (SNI)

and the National Stock of Security (SNS).

The support of VECO to the National Platform of Rice Producers of Mali (PNPR) enabled 16 FOs to enter into

contracts with the Office of Agricultural Produce of Mali (OPAM) on 12,300 tons. These FOs managed to

deliver 4,853 T (or approximately 40% of their contractual commitments) and earned an amount of

1,458,123,500 FCFA (2,226,142 euro).

Although this first experience was deemed successful for all stakeholders, its objectives were not fully

attained for the major reasons: (i) the lack of working capital hampered most of the contracting FOs to

mobilize the stocks from the cooperators beyond the repayments in kind of loans contracted; (ii) the delays in

the startup of the operation.

The chairperson of the cooperative of female parboilers of Dior released a brief presentation of the

experience of the cooperative and their participation in the institutional purchases. Thanks to the purchase

agreement granted by the State, the cooperative benefited from a credit of 30 million F CFA with the bank for

the purchase of paddy. However she recognized that the price of paddy has increased; which constraints the

access to the agricultural input.

Office of the Niger and the dam of Markala

A Segou, the mission paid a courtesy visit to the President

Director General of the Office du Niger (ON), Mr Illias

Dogoloum Goro. The Office of Niger is an agro-industrial

company of Mali from May 19, 1961. It is provided with

developable andirrigable farming land of 1,947,000 ha by

gravity (source Office of the Niger).

A little more than 110,000 ha are developed currently .Let

us remind that the company was established in 1952 by

Negotiating and signing contracts

Collect of paddy Processing of paddy Monitoring of stocks The balance sheet of the

operation Negotiating the

institutionalization of the institutional purchase operation

g

m

Cost Structure

the French colonizer for the production of cotton for the French textile industry and that of grains for the

colonized.

The Office of Niger provides approximately 53% of rice production of Mali. In the dry season to mitigate the

effects of climate change, the vegetable crops less water-consuming, are cultivated (potato, onions,

tomatoes, etc. ).

The mission visited the irrigating dam of the lands of the Office of Niger. That dam was built in 1932.

For more info: Office du Niger

SEXAGON

The mission paid a very brief visit to the Trade Union of Agricultural producers of the Office du Niger

(SEXAGON).

A field visit of SRI crops was planned and the rice mill of a co-op member, whose equipment was

manufactured by SOCAFON (see below). Unfortunately, for security reasons after the attacks at the North of

Mali in the previous days, we were compelled to leave earlier than we had planned in order not to be

retained at the dam of Markala.

For more info: Trade Union of Agricultural Producers of the Office of Niger (SEXAGON)

Artisanal Cooperative of blacksmiths of the Office du Niger (SOCAFON)

Various equipment were presented by the Managing Director of SOCAFON but their special feature is that these

tools are manufactured on site or mounted and adapted to the environmental conditions. We can quote:

The Thai motor cultivator with its accessories,

The sower of rice by human traction,

The motorized sorter,

The thresher of rice,

The kit for pre cleaning paddy,

The prototype of rice sucker

The planning equipment by animal traction,

The weeder..

It also manufactures rice mills that we should visit normally, but it was not possible owing to the safety

conditions..

See in annex a few very useful equipment to ensure the quality of paddy and rice.

E-mail: socafon01@yahoo.com

Manuel weeder

Seeder for pre-germinated rice leveling equipment

Motorised tresher-winnower

Grader

Soil preparation equipement

The Reflections of the day

The technologies developed by the craftsmen are adapted to the environmental conditions and are adopted

by the producers and processors: a strong collaboration between the Cooperative of blacksmiths and direct

actors (producers/processors)

In the business model ofthe institutional purchase of Mali, the need for the presence of financial institutions

for the success of this business model was strongly recommended;

The institutional purchases constitute a business opportunity for FOs ;

Mutual recognition between the stakeholders of a business model (suppliers, buyers) before the start of their

business relationship enables to facilitate the management of issues and risks.

The participants highly appreciated the equipment at the level of the cooperative of blacksmiths and some

wished the purchase of these tools to mitigate the toil in rice production.

Classification of rice and standards

Presentation by Christ V. based on the system of quality grades seen in Thailand. See powerpoint in the

annex.

Rice can be classified according to different criteria : the length or form of the grain, the varieties, and the

composition of the grain

Regarding the size and form of the grain, we distinguished

The most important criterion, which determines the quality of the rice marketed, is the particle size or the

percentage of broken rice. The classification is different from one country or region to another.

Thailand:

whole grain Rice : Length ≥ 80% of the average length of the whole grain

medium broken rice: Length 25 > 80% of the average length of the whole grain

Small broken rice : Length < 25% of the average length of the whole grain

Type of rice: Length Ratio length/width

long grain rice: > 6.6 MM Length > 3x width

medium grain rice: 6.2 - 6.6 mm Length = 2-3x width

short grain rice: < 6.2 Length < 2x width

SAT 08/08 MALI >

BURKINA

ECOWAS / UGANDA:

Whole Rice : Length ≥ 75% of the average length of the whole grain

Big broken rice : Length 50 > 75% of the average length of the whole grain

Medium broken rice: Length 25 > 50% of the average length of the whole grain

Small broken rice : Length < 25% of the average length of the whole grain and > 1.4 mm

Chalkyl: Length < 1.4 mm

The percentages often indicated on the imported rice from Asia relate to the percentage of medium broken rice.

It means that most of rice qualities are a mixture of whole grain and medium broken grains. These are the chalky

that nobody wants to see in his or her rice. For example, the grade 1 of Thailand has 80% of whole rice, 19.75% of

medium broken rice and maximum 0.25 % of chalky. The ECOWAS does not specify: it is the buyer who should

specify the percentages of each 'standard' of rice. By contrast, the Uganda has specified the percentage of

maximum broken rice for 3 grades (5 - 15 - 25 % ). It is also important to remind that “whole rice does not mean

a whole grain! If the size of the fragment is ≥ 75% it is considered as whole rice.

A ratio of 40% of the whole rice on the paddy is considered as very good. If the rate of processing is 65 %, then it

means that we will yield on the white rice, 61% of whole rice and 39%of broken rice, in expecting not to yield

much chalky. The broken rice should also be sold.

The plains of Bama

The mission stopped over at the plains of Bama of 1,200

ha (Burkina) to exchange with the producers.

The exchanges particularly focused on the production

systems , seed systems, the marketing of rice, the

difficulties encountered by the operators ...

Business Model Canvas of LOMIA, Tanzania

BMC of the Tanzania was presented by Mr Sakaya.

Classification of rice and standards: practice exercise

Each participant came to the ARE with samples of their rice and imported rice. Late in the evening, wedid a

practical exercise of ranking these samples. Bernadette once more explained the method and thereafter we saw

the participants fully absorbed in piling whole rice, medium broken rice, chalky rice and faulty rice with their

mobile phones supplying light..

The conclusion of the exercise was that in most cases the percentage of whole rice is reasonable but that of small

broken rice is too high. The analysis of samples of rice called 'whole rice' collected on the way, has shown that this

branding was false: you can even attain 10% to 20 % of medium broken rice.

Overview of the rice sector in Burkina Faso

Importance of rice

The 4th grain among cereals

Increase in consumption: 5.6 per cent per year (MASA, 2013).

Substantial role in the economy

Nearly 45 billion Fcfa/year for rice importation

Production Areas

Regions of the East-central , Hauts Bassins, Mouhoun and Cascades, Center

Rice Production Modes

The low land rice cultivation : 67% of the rice cultivation areas and 42 % of national

output with an average yield of 1.3 T/ha

The irrigated rice cultivation : 23% of rice cultivation areas and 53% of the national output

with an average yield of 4 to 7 T/ha

The rainfed rice cultivation : 10% of the rice-cultivation areas and 5% of the national

output with an average yield of 1 T/ha

Typology relating to the control of water

Uncontrolled: rainfed- non developed low lands

With partial control (a cropping/year) : developed low lands,-small perimeters with dam -

perimeters along water flows.

With full control (two crops/year) : Large perimeters with dam - irrigated perimeters by

pumping - perimeters along water flows.

Rice Producers 286,542 of agricultural households exploiting small areas, of which the average is less than

0.3 ha per household

The supply and demand

Production potential: more than 800,000 ha that can be used for the cultivation of rice

(including approximately 500,000 ha of low-lands and 160,000 ha of irrigable land)

In 2013/2014 : 136,864 ha (17% of the potential) of which approximately 60,000 ha of

irrigated land

Demand: 600,000 t of white rice

Seasonal offer of 2013/2014: 305,382 t of paddy

Types of processing

Industrial and semi-industrialprocessors (purchase and processing of paddy rice into white

rice + service delivery)

The female traditional husking agents are scattered in the production areas (service

delivery)

Female parboilers: parboiled rice

Marketing Paddy: provided by the FOs, the collectors/traders of paddy,

Local rice: processors, wholesalers, semi-wholesalers and retailers

Imported rice: importers, wholesalers, semi-wholesalers and retailers

Organization of the sector

This is one of the most advanced in structuring with CIRB, which is an interprofessional organization that includes:

UNPRB, National Union of Rice Producers of Burkina

National Union of Rice Processors,

National Union of Female Parboilers of rice, UNERIZ

ANACOR BF: National Association of Rice Traders

OTRAF: haulers National Observatory: information center on rice in the BF

the State The institutional purchases by the SONAGESS (National Company for the management of

security stocks) established in 2009 by the State are becoming less and less remunerative,

and overriding its original remit; at least 20% of the production is marketed through

SONAGESS.

Advocacy in progress at the level of actors to extend the institutional purchases to large

households,

Fixing of a threshold price of paddy by the State: in dec. 2014: 150 F the kg

MON 12/08 BURKINA

The Business Model of the Parboiling Center of Douna

The second presentation focused on the business model of Douna whose presentation was the subject of an

exchange while we were driven to Douna.

Visit of the Research Center of Farakoba of INERA

The Director of the rice program being on mission, his deputy (at the same time breeder) and other

collaborators entertained the mission. After words of welcome from the deputy and the introduction of the

purpose of the mission from the Regional Representative of VECO-WA, the research actors proceeded with

introducing their center.

The management team of the center is comprised of departments: selection - animal resources - forestry -

vegetable production, of which riceprogram is a component.

The objectives of the rice program are: to promote the production of rice (variety, yield, seed, fertilizer etc) –

to reduce importation, to improve the income of farmers.

The specific objectives of the center are: to provide producers with high yielding stable varieties -to develop

performing low cost technologies-to value the research in rice cultivation.

78 developed varieties:a 5 to 7 tons output increase. The method used is the Participatory Variety Selection,

which involves producers and consumers in testing with R1 and R2. After the positive assessment by the

producers and consumers, the center focuses on the production of stem seed (G4) and pre-stem (G1, G2 and

G3). The stem seed (G4) serves as a parent for commercial seed and certified one. These are the seeds of first

generation or second generation (R1: seed from stem seed G4 ; R2: seed from R1). The production of R1 and

R2 is done by the National Service of Seeds, by specialized groups of seed breeders and also by companies.

There is a Union of seed companies. The National Service of Seed is responsible for supervising the other seed

producers. The Center can deliver them stem and its by-products, but only on order. If the order placed is less

than 300 tons, the Center can easily deliver it . The Center also carries out studies to determine the degree of

the adoption of varieties. About the names of varieties,they stressed that very often a variety had several

names. Centers will give their own name to a variety p. e. FK = Farakoba

Design of technical sheets in accordance with the variety and indications of specific fertilizers. That depends

much on soils, but in general we need more twice P than N. They promote the Deep Placement of Super

granules Urea (PPU) (see sheet in Annex). They have also developed a method to make compost from the

rice husk in 2 months (see poster in annex).

INERA has 15 tons of pre-basic seed TS2 variety, well appreciated by Burkinabe consumers.

Visit of the Parboiling Center of Douna The participants were:the Departmental Union of Female Parboilers of Douna (UDERD)and its grassroots

members , the Provincial Department of Agriculture (UDPRD)and the Development Project of the Plain of Douna.

After the welcome word of the chairperson of the Departmental Union of Female Parboilers of Douna (UDERD),

and the introduction of the members of VECO’s mission and members of the executive bureau of UDERD, UDERD

made a presentation of their center.

Background

The Center of parboiling of Douna is the initiative of UDERD, which was created in 2010 and obtained his

document for official recognition in 2011. There are 10 groups of grassroots member. The number of

individual members of the groups has increased from 130 in 2010 to 290 in 2014.

Parboiling is traditional/cultural in the area of Douna. It was only from 2009 onwards that women have

started coming together in agroups to parboil rice. Before meeting VECO (in 2011), parboiling took place

under a mangoe tree from 2009-2013.

The meeting with VECO in 2011 enabled them to better structured, and benefit from the capacity-building

actions and small tools (hardware) for the parboiling.

The idea of a center of parboiling was born in 2012 thanks to the support of VECO and it was only in 2014 that

the Center came true.

Management organes

General Assembly (AG). The AG is the supreme organ of the Union and is composed of representatives of

member groups (5 people per group). The regular AG is held once a year in the two months following the

closure of the social exercise of the Union.

The Council of Administration (CA) is composed of 11 members, elected for a period of three years,

renewable once.

The Committees are the bodies responsible for the coordination of activities, notably internal and external

relationships with partners. The members are elected for a term of two years, renewable once.

The Management Committee (CG) is the organ that is responsible for the management/coordination of

economic activities of the Center through the different committees;

Committee control of quality (CCQ) is the body of internal quality control;

The supply Committee (CAP): this is the committee that deals with the supply of paddy to the Union and the

management of the different stocks (paddy and parboiled rice and husked rice) ;

The Marketing Committee and monitoring of contracts(SCCC is the committee which is responsible for

marketing, market research and monitoring of contracts;

Recovery Committee(CR): This committee is concerned with the collection of receivables.

The partners of UDERD are:

UNERIZ, UDPRD, (VECO, TRIAS, OXFAM

They have benefited from a loan of 46,000,000 CFA Francs from Coris International Bank as a working capital

for the purchase of paddy.

Market:

Market of Douna and wholesalers from neighboring countries such as Mali and the Ivory Coast.

Two wholesalers were contacted in Banfora.

Currently, the challenges of the union are to achieve contractualization with wholesalers in a sustainable way.

Thanks to the support of UNERIZ and (VECO, they struck a contract for the delivery of the parboiled rice of

200 tons with the National Society of Management of Safety Stock (SONAGESS).

The price

Price SONAGESS: 320 FCFA/Kg rice of lower quality

Distributor Price: 380 FCFA/Kg average quality

Price Supermarket: 650 FCFA/Kg

Price retailer quality average: 500 FCFA/Kg rice

Price retailer top quality: 800 FCFA/Kg

The packagings:

1Kg for the supermarkets/stores

5Kg and 25 Kg for the rest.

The rice can be conditioned in the packages of 50 Kg on request.

The distribution of income

The profit is distributed between the union, the grassroots

and the members individually.

Key Resources: the center and the equipment

After the presentation, participants proceeded to a guided

visit/commented on the center of parboiling. The center is

built and equipped for higher production and productivity,

to ensure a good quality of parboiled rice while reducing

the drudgery of work for women and mitigating at the

same time the impact on the environment. The center

stands for a reference, a model, a center of learning, so

that members can improve their own processing at home.

The visit was carried out by following the operating

sequences of parboiling process: storage facility for paddy

rice > shed for winnowing > washing room, shed for

washing, soaking and pre-cooking > area of drying under

the sun > area of drying under the shadow > room of

husking and sorting > room for conditioning> storage

facility of parboiled rice.

Solar installations were mounted at the center allowing

the women to produce in an environmental friendly way

and minimize production costs. Technological innovations

were achieved about parboiling equipment.

The process of production was explained to the mission.

About the division of work, parboiling is apportioned to

groups in their respective turn.

The other members who were present at the meeting took the

floor to say a few words.

The renovation project of the plain of Douna

His representative assessed their project for planning and

rehabilitation of the plain of Douna. From this intervention, we

retain that the main constraint is the lack of financial means

and this can be accounted for the transition that Burkina is

going through. Partners were call on to bring any help .

However, he made clear that t despite these difficulties in fund

raising, the center of parboiling will no longer have a problem

of funding.

The provincial department of agriculture

His representative stated that their state run structure is

responsible for the technical management of producers to

master technical routing and good practices. They accompany

the groups/producers' co-operatives to better organize

themselves from the institutional point of view.

The Departmental Union of Rice Producers of Douna (UDPRD)

THE UDPRD by its president reassured the delegation that the

center would no more face paddy supply shortage. The Union

made provisions to guarantee the supply of female parboilers

with qualitative and quantitative paddy. The plain of Douna

comprises 1,200 producers, of whom more than 80% are

women.

Meeting with the Interprofessional Committee of the Rice of Burkina

Introduction of the meeting by the executive secretary of the CIRB.

The presentation of the CIRB focused on the following points: Introduction, Definition, objectives, functions and

main missions, members, bodies of the CIR-B, flowchart/operating mechanism, Services rendered to members,

partners, prospects and conclusion.

Further to this presentation which is attached in the annex, a series of questions were asked to the technical team

of the CIRB.

Operation of the Interprofession

CIRB has no representation at regional level or in the provinces. It is represented by its various links that make

up the CIRB, namely: the college of producers, processors, traders, haulers.

One of the challenges of the CIRB is to endeavor to represent the links of the CIRB overall territory of Burkina.

Financing of the CIRB

With regard to the cash flow of the interprofession, there are the internal mobilization composed of annual

dues and membership fees.

Then comes next the external mobilization. About this aspect, a study was conducted in order to understand

how to proceed to levy on services rendered to members.

There is the law on the interbranch organizations that also opens up opportunities for funding of the CIRB.

Finally we note the development of specific projects to generate income.

Advocacy

The environment was not entirely favorable;however, with the popular insurrection that Burkina witnessed in

late 2014, the situation is evolving nicely. The players want to interact with the authorities of the transition to

lay down foundations.

There is an ongoing advocacy within SONAGESS because the relationships are not trouble free between the

latter and the female parboilers on some contractual elements namely the price etc.

Other themes of advocacy are the respect of quotas on imports, the institutional purchases etc.

Advocacy strategies are developed and information are collected to feed these themes.

A steering committee of advocacy is set up and represented by the various links.

Role of the CIRB on the quality of the rice

The mastery of the technique of the production to propose paddy of good quality ;

The mastery of the technique of the processing, the equipment necessary for the practice of the processing.

The storing from haulers and merchants to end consumers (N. B: the carriers play an important role in the

sector and their accession to the CIRB has enabled us to understand the problems of the rice sector)

The discipline. For this purpose, each actor must be aware of the need for quality products.

Marketing

A directory of points of sale of national rice has been developed in the big cities. Larger compounds such as

camps, schools, and the hospitals are identified and negotiations are underway with authorities for selling

them national rice.

Actions for the promotion of the national rice have been carried out on the radio, the written press and tv

channels.

The difficulties

Lack of technical competence in some links ;

Low capacity of the staff of the CIRB on certain specific activities;

More info: CIR-B :: Ensemble, produire et promouvoir le riz nationnal | Accueil

TUE 11/08 BURKINA

Meeting with the National Union of Female Parboilers of Rice (UNERIZ)

The presentation of UNERIZ focused on the following points: organization of the UNERIZ - Operation of the

UNERIZ – the processing of rice - the marketing of rice - the access to financing - the current major challenges of

the UNERIZ. For details see annex.

After this presentation, questions of clarification were asked to the technical team.

Services rendered to members:

Capacity building skills and management. To benefit from the support of UNERIZ, you must be a member.

Support to the marketing of the parboiled rice by its member unions

Equities

Deductions on the wholesale negotiated by UNERIZ ;

Remunerated services such as technical training, packaging etc.

Financial Contribution of members to the staffing equipment ;

Securing and field research in the framework for the construction of a center ;

Internal mobilization by the granting of credit to members, the contributions and rights of adherence.

The credits contracted

Duration: Caisse populaire 6-9months and Coris Bank 6-12Months

Interest rates: Caisse populaire 15% and Coris Bank 8-10%

Difficulties

Shortage of husk as fuel;

Gas supply Equipment under experimentation

The challenges

Increase the volume of rice marketed in the best conditions.

Improve the quality and presentation of the parboiled rice, by the mastery of the techniques of parboiling,

the access to the equipment that are adapted and efficient. and the access to the packaging of quality

Development of a distribution network in collaboration with the other actors

Establish the culture of the spirit of value chain and entrepreneurship

Improve the access of women to adaptedcredit

Develop the cash flow in the medium term

16,000 female parboilers parboil 50% of the national production; in the centers of parboiling, there is only a

small percentage of individual parboilers. Should we not reflect on other models that allow a strengthening of

individual parboiling?

More info: UNERIZ

The Reflections of the day

Why say that it is an animal, if you could say that it is a bird? Why say that it is a bird, if you could say that it is

a parrot? Why say that it is a parrot, if we can specify that it is a black collar parrot or an African gray parrot?

Let us be more precise and concrete as possible in the business models: which is the company: FEPROBA or the

co-op in seeds? The grouping of LOMIA members or LOMIA? What is our clear value proposition? Who are the

partners concrete which actually render a service and what service ...

Quality, quality, quality ... but in a manner constant, constant, constant. Better choose a lesser quality but we

are able to deliver and to keep constant.

The key element that is very determinant in the quality assessment is the performance of the sorter ;

The quality is not simply determined by what the market wants, but particularly by what the market is willing

to pay.

A quality approach is determined by the quality of the products (paddy - white rice) and the quality of

operations (production - processing). The quality of products is specified in the specifications, the quality of

operations by manuals of operation. An Internal Control System (ICS) ensures that the specifications and

operation manuals are respected.

We can now better understand the packaging of imported rice and especially the percentages which are

sometimes above.

At Uganda they can now determine in what 'grade' is their rice

The production of a variety by the research is dictated by a real request of the Market

Seed exchanges are possible between the countries in the region and this can be an opportunity for the

members of FEPROBA

Parboiling allows enhancement of rice and self-promotion of women

Technological change of parboiling has reduced the drudgery of women's work over time

The business model of Douna is a complete model and an inter-linked one. However the linkage of women

with the financial institution has been done too fast

It is important to think more about how to reduce the costs of the parboiling centers visited and how to better

use them : if we take into account all investment costs, it will not be easy to demonstrate profitability. TRIAS

will take lesson from these experiences

What is the best organizational mode for parboiling center to maximize profitability? reflection is necessary

To reflect on the relocation of parboiling and to make the center, a place of finishing and packaging

It is not possible to build a business model by ignoring unknowns, uncertainties, etc. you must have some

proactivity to adapt quickly to the situation

It is possible to launch a process of creating an inter with only two links of a chain. It is not necessary to wait

for the structuring of all links in the chain: Mali team will take lesson

Role of guarantee funds: reducing risk perception by the players and get them used to credit to run their

businesses

If the 2008 crisis led to a revival of rice sectors in the west of Africa, it is not the same in Congo

The UNERIZ markets only 1% of the parboiled rice produced by its members so that the total amount of

parboiled rice in the country is 50% of paddy production: what business model developed to capture all the

production of parboiled rice?

Business Model Canvas UNIRIZ-C, Benin by Hermann

Business Model South Kivu, DRC by Sylvestre Lueca

Business Model Canvas : the plain of RUZIZI –ADPA

Key-Partners

MEMBER PRODUCERS OF

THE COOPERATIVE

NON MEMBER PRODUCERS

OF THE COOPERATIVE

MFIs : LIMINOSITY,COOPEC

KALUNDU

AGRI INPUT SUPPLIERS

VECO-DRC

IFDC

Key Activities

PRODUCTION OF PADDY

RICE

PROCESSING

WHITE RICE COLLECTION

MARKETING OF WHITE RICE

COLLECTIVE PURCHASE

Value- Proposition

QUALITATIVE &

QUANTITATIVE WHITE RICE

IN ACCORDANCE WITH THE

REQUIREMENTS OF

BRALIMA

COLLECTIVE SALE OF RICE

FACILITATION OF

PRODUCTION LOANS FOR

MEMBERS

STANDARDIZATION OF

TECHNIQUES OF

PRODUCTION FOR THE

MEMBERS

Relationships with

Customers

DIRECT CONTRACT WITH

BRALIMA

PURCHASE ORDERS WITH

INTERMEDIARIES

Customer segments

MARKET FOR INDUSTRIAL

PROCESSING

LOCAL MARKETS BY

RETAILERS

Key-Resources

LOANS FOR MARKETING

SORTER

EQUITIES

Channels

ARRANGEMENTS FOR

DIRECT DELIVERIES AT

BRALIMA

DELIVERIES TO

INTERMEDIARIES THROUGH

PURCHASE ORDE

Cost Structures

PADDY PURCHASE

RENTAL AND MAINTENANCE

TAXES AND BANK INTEREST RATES - DEPRECIATION

SALARIES AND BONUSES

Flow of Revenues

RICE SALE OF 650 TONNES TO BRALIMA FOR 6 MONTHS

MACHINING REVENUES

SALE TO INTERMEDIARIES AND RETAILERS

Questions on the packaging Most of the participants brought along packages of their own rice or imported rice. After a presentation of each

packaging, we made a 'game of statements'. A statement was proposed and the participants should in binom

state whether they agree with it yes (+) or not ( -) , or they have a different opinion (0). Thereafter all the binoms

‘voted’ and set off discussing.

Statement 1. The text is the most important item on the packaging + - 0

An outstanding token is more important than the text: such is the case of the woman on SFAbags the Baobab,

the Standards. The purpose of the token is to make the brand conspicuous ; if this token connotes items related

to the value proposition, so much the better. What is striking is that the packaging of imported rice does not

display photos or drawings of the rice; whereas the local packagings often have drawings of rice (or something

that looks like the rice). See also the example of SFA where the color of the bag indicates the quality of the

product.

Statement 2. The Farmer Organization must have its own brand + - 0

Although from a 'psychological' stand point, we can understand that an FO should have its own brand, it raises

some questions. Is the consumer really interested with the producer of the rice he buys? Is the wholesaler

not interested in having his own brand ? Is the FO the most suitable actor to determine the packaging?

Statement 3. The cost of the packaging must be paid by the customer + -

It seems obvious ... But is the customer really ready to pay much more for an attractive and expensive packaging

? Donors subsidize very often packaging. Do we not risk selling expensive and ultimately turning off by the

customer?

Statement 4. For each quality, you must have several packaging + - 0

Obviously no: the small packages of 1 kg are only for the top quality (also from standpoint of the cost and that of

the previous statement); the grades of lesser quality are sold in bags of 25 or 50 kg.

Statement 5. Consumers appreciate that the quality of the rice is fairlyand transparently represented

On a lot of packagingswe read phrases that mean little such as ' broken rice of superior quality', 'delicious and

without stone, 'excellent rice ', the term 'long grain' refers only to the type of rice, the size and form of the grain

and says nothing about the broken component. The term 'white rice' can be used to distinguish it from the

parboiled rice. The whole rice attempts to ascertain that there is no broken rice ; nevertheless the samples that

we analyzed showed that they contained between 10 and 20% broken rice ; which is acceptable for the

Senegalese market.Several Asian countries indicate the percentage of broken rice; it is a key element to describe

the quality. If in a given country, there exists a standard with grades, then the grade could be mentioned on the

bag (such as in Uganda with grade 1, 2 or 3). If the rice is perfumed, it is better to indicate it but the phrase

'Jasmine rice' or Hom Mali is normally used for varieties from Thailand. You must avoid mentioning too much

information on the bag.

Meeting with Coris Bank International (CBI)

Presentation

The representative of CBI, Mr. Minoungou, made his presentation in the following sequence: 1. Presentation of CBI 2. Knowledge of actors: Organization-process-hierarchy of links 3. Identification of funding needs: CT - MT - LT 4. Assessment of potential guarantee offer, financial education 5. Elaboration of the conditions and mechanisms of financing 6. Funding the chain, monitoring of loans 7. Reflection on the improvement of the mechanism

See the appendix for details

Mr Mariotte, an independent consultant, who is working for a Danish program, mentioned that in his long

career as an Agricultural Lending Expert, he has not seen a lot of banks engaged in the agricultural sector with

CBI’s courage and boldness. Further to this presentation, the participants asked questions to understand

more the activities of the bank.

Questions/comments of participants

The representative of Coris Bank wishes ROPPA (the network of farmer organizations in West Africa) should

facilitate and coordinate the consultation with farmers circles in the context of their relationship with the

bank. For the representative of CBI, FOs should ensure the coordination with the bank to facilitate the

financing of their members ;

The information system on the market did not exist but currently, a version of it called SIMAgri has been

developed by Green Africa Burkina ; it is available but not yet known by the FOs ;

The strengthening of the capacities of FOs does not fall under the bank remit but should be provided by the

NGOS in the field ;

FOs have understood that the business

plan is not only used to be funded but

also to serve as a tool for steering and

communication with the partners;

The standard rate of interest is 8% for

the producers and the processors and

10% for the distributors.

Coris Bank is not only focused on the

rate of interest but rather on how the

bank should contribute to changethe

behavior of FOs, how to transform the

agriculture ;

The 10 billion of credit funds for

agriculture is allocated only for Burkina

but it is not excluded to build up a

common credit fund for all countries

where CBI is settled;

For the moment, the insurance does not cover rice but only maize; however, mechanisms are being

developed with the insurance companies ;

For the monitoring, the loan granted is not disbursed totally but in 2 installments ;

There is a monitoring of rice fields and the processing units;

To ensure that the individual members of the FOs benefit from the loan, CBI always requests FOs to

communicate the list of their members and make loan application decision in the Board of Administration and

General assembly ; this allows grassroots producers to benefit from the credit granted ;

There are no other methods except regularly monitoring the activities of FOs to minimize the risk and

communicating more with them.

Questions/Comments of Coris Bank

CBI in its turn, has requested the experience of other countries on the financing of agriculture by the banks.

Senegal and the DRC shared their experiences with CBI and there is similarity in the practices.

WED 12/08 BURKINA

Meeting with ANACor-BF After VECO introduced the mission, the chairperson of the Association of Traders of Rice of Burkina Faso (ANACor-

BF) presented their association according to the following points:

Background of the ANACor-BF, created in September 2013

The objectives

The missions

The achieved results

The difficulties encountered For more details, see the flyer in the annex.

The achieved results

It sold 13,500 tons of local rice in 2014 in their point-of-sale system. These are the shops or existing stores

that sell the local rice. This network has 85 points of sale in Ouagadougou. A map that shows the location of

each point of sale has been distributed with newspapers and is available on the web. The aim is to double

the amount to 30,000 tons in 2016.

After a promotional multi-media campaign of local rice, a rise in sales was recorded. They are looking for a

central store in Bobo and Ouaga which can serve as 'a department store'.

About pricing, there are two criteria: the price of paddy and the price of the finished product.

The producers fix the price of paddy so the traders see themselves left out in the chain. The price of the

finished product is fixed according to the quality of the rice.

The traders have a good appreciation/image of the national rice because the quality is much improved

compared to previous years.

The difficulties encountered

As to difficulties, there are

at several levels:

organizational and

institutionallevel, the

gaining of member-

traders, the quality

ofprocessed rice , the

financing of their activities

etc.

About brands and quality:

you can meet any type at

Ouagadougou ; some rice

mills can deliver the

quality, whereas others

can produce nothing but

mixtures ; there are not

yet approved bags

There is competition with the imported rice, and it explains why it is difficult to sensitize other traders for the

local rice

Professions are mixed up:while some producers improvised processing or trading, some rice mills carry out

marketing. Therefore actors are not always professional and each one wants to do everything at the same

time.

The challenges

To have a head office to promote the local rice, more traceability, more visibility of points of sale, access to

credit for traders.

Each actor mustbe committed to fulfill its trade and a political will to ensure the sale ofthe national rice to

large compounds (barracks, hospitals, schools etc. )

Presentation TRIAS The representative of TRIAS made a presentation of their business model in the construction phase with the

female parboilers of the center north of Burkina more precisely at Louda

This presentation will follow later

The Balance Sheet: lessons learned and action points Each region worked together to make its balance sheet of the ARE:

What are the lessons learned?

What are the action points to achieve in the short or medium term?

The Mali being with 2 people worked apart ; other countries of VECO WA worked together and worked out new

key-items for the new program.

Each group formulated their ideas on flipcharts. Afterwards we went round the groups three times to watch and

comment on presentations.

South Kivu

Lessons Learned

1. Insert at the beginning of the supportive actions of

FOs a scheme of credit for the development of a

business model (ex. SFA, Coris Bank)

2. The Parboiling provides women with more value

addedin the framework of women’s integration in a

specific CDV and the family economy.

3. Structuring producers on a specialization ex seed

breeding companies of Anambe

4. The importance of an interprofessional organization

5. Constant Quality, constant quality, constant quality

Actions to achieve

1. Launch a business model that is creative, coherent,

feasible and that meets the context of the South Kivu

2. Experiment parboiling with a group of women

3. Invite Christ as soon as possible in South Kivu

4. Make a creative restitution

NORTH KIVU

Lessons Learned

1. Importance of investment in one of the links in the

CDV rice with triggering effects in the other links

(production, processing, marketing, access to credit)

2. The complementarity in the roles of actors in the

chain

3. The processing must give a real value added to the

product (quality)

4. The use of the appropriate technology

5. Promote a frank dialogue between the actors of the

chain

Actions to achieve

1. Identify the actors of the chain and clarify their current

roles

2. Make the choice of BMand have it promoted by FOs

3. Organize consultations with the actors of the chain rice

4. Organize a workshop on restitution with the partners of

the PA rice

5. Experience of parboiling at Mwenda/Rwenzori

TANZANIA

Lessons Learned

1. Parboiling

2. Credit system for all chain actors

3. To have strong FOs

4. Market (P factor) + Quality rice (grading)

5. Supervision + collaboration among actors

Actions to achieve

1. To fine tune the BM

2. Feedback meetings with farmers

3. Business meeting with chain actors

4. Strengthening FOs

5. Business contract with buyer(s)

UGANDA

Lessons Learned

1. Central role of government in the rice sector given

strategic importance of the commodity; with

government coming into the sector a lot can be

achieved (rice sovereignty)

2. The market/customer is the ultimate element in

business; it dedicates all other things

3. A BM is a driver of appropriate action

4. Participation of special groups in the rice value chain

(women with parboiled) rice)

5. Synergism among all stakeholders for forward moving

Actions to achieve

1. Lobby govt to increase its role in the sector (policy,

service provision, technologies, etc)

2. Grade Doho rice and launch product and BM test

3. Identify projects for women integration in the rice value

chain

4. Strengthen platforms

5. Strengthen quality control

MALI

Lessons Learned

1. An interbranch organization can be an effective tool to

improve the governance of the sector and strengthen

the position of rice on the market

2. The strengthening of collaboration between the actors

of the sector and the research allow one to adapt the

results of the research to the concerns of actors

3. Technological innovations can improve the income of

parboilers and respect the environment

4. The initiatives of institutional purchase can be

opportunities for farmers to sell their stocks and

promote the local rice

5. The existence of a combined market with

remunerative pricing is a favorable condition for

getting the producers to invest more in order to

maximize their income (see case of seed producers

Senegal)

Actions to achieve

1. On the institutional purchase: Development of a master

plan, taking account of the experience of other

countries (Senegal, Burkina), the involvment of banks,

advocacy for institutionalizing

2. On the research: development of a strategy for

collaboration between the PNPR and programs of

research rice

3. On the interprofession: stimulate the emergence of a

rice interprofessional organization before the end of

the 1st quarter 2016

4. Sharing of mission: restitution on the exchange visit

with the CA of the PNPR in September 2015

5. Broadcasts of technological innovations: to define, p. e.

visit to the female parboilers of Burkina

6. Development of a business model of: envisage how to

'duplicate' the experience of CORIS Bank in San

West Africa

Lessons Learned

1. Strengthened in the position that the institutional

purchase constitutes a growth market for the actors of

the CVA rice

2. It is not possible to build an efficient business model in

excluding banks that are accessible to family concerns

(ex. Coris Bank, but not any)

3. It is important that FOs should be accompanied to

diversify their markets and not just content themselves

with the institutional purchases

4. The seeds can be managed as a CVA, but distribution

should be diversified.

5. Inadequacy of technical skills of FOs to master

equipment

6. There is a man-made technology which helps to

strengthen the ecological production

7. Work on the improvement of the quality of the rice by

welcoming a minimum of actions from producers of

paddy

Key Elements/ new for new program

1. Develop an optimal organizational model for the

economic viability of parboiling centers promoting the

safeguard of private initiatives

2. Set up a mechanism for financial education in

collaboration with banks which proposes rates accessible

to actors of CVA

3. Institutionalize the institutional purchases with the

producers with a quota system and diversification of

markets (private actors)

4. Develop business models including the banks sensitive to

EF

5. Carry out a study on the market for the distribution of

seeds

6. Better understand the initiatives of parboiling to

articulate/connect to actual parboiling centers

Rice Commodity Group

Lessons Learned

1. You can influence private actor to adjust embedded

services (SFA/Sensemaker)

2. Private actors should learn from one another

3. There are a lot of challenges regarding packaging, not

only technical purpose even more in relation to

positioning of FOs (own brand versus grossist brand)

4. Focus on light, practical, flexible multi stakeholder

actions (direct actors and banks) before talking about

national interprofessions

5. Reconfirmation of enormous" from importance of

parboiling; also in Burkina 50% of production is

parboiled).

6. EA needs other models than WA as rice and paddy prices

do raise in the season/year in EA + Congo

Actions to achieve

1. Visit to Tanzania (+ Uganda ??? ), RDC

2. SRP - share elements on 'healthy' rice

3. Look for similar bank experiences as CORIS in EA ( Nairobi

Conference)

4. Identify/Refine investment files for Kampani (possibilities

for seed business Anambe, compost business Anambe,

franchise model parboiled rice, center of finishing

parboiled rice ...

5. Continues to promote, sharing, exchange (Yammer, e-

discussions)

EXPECTED SUPPORT BY RICE COMMODITY GROUP HO

UG Help with adding value to rice husks

XX Reflect on a competitive business model for female parboilers

Exchange visits every 2 years to improve the experiences

Mali - Promotion of exchange visits between regions (VECO

WA - Empower centers for seed conditioning to professional economic unit

WA - Support of Kampani for distribution center of parboiled rice (finishing, packaging, distribution)

Mali - Strategic information on the international rice (statistics etc. )

Mali - Capacity building in Business Plan

TZ - Christ to visit Tz to help fine tune the business model, to develop agrifinance model

CO - Training on the quality of the rice

CO - Guarantee fund

CO - Connection of the CECAFEP to other financial institutions

UG - Product output tracking from milling machine

UG - Computerized performance program

UG - Translations of documents eng-french-english

The Evaluation