Commodities Export Development Nigeria

Commodities Export Development Nigeria

For AFEX Nigeria, an innovative commodities exchange connecting smallholder farmers to large scale buyers, we were contracted to develop commodities export with an initial focus on ginger and cocoa.

Based on a thorough due diligence to assess credibility, we generated recommendations to adjust the domestic trading template to export and facilitated market introductions to cocoa and spices buyers.

Value Chain Analyis Specialty Coffee Rwanda

Value Chain Analyis Specialty Coffee Rwanda

CBI (Centre for the Promotion of Imports from developing countries) is part of the Netherlands Enterprise Agency, funded by the Dutch Ministry of Foreign Affairs.

The mission of CBI is to connect small and medium-sized enterprises (SMEs) in developing countries with the European market and so contribute to sustainable and inclusive economic growth. CBI does this by implementing three to five-year projects in a specific export value chain (VC) in a specific country, focusing on seizing opportunities for exports to Europe and tackling obstacles that hamper or hinder these exports. They are integrated projects, meaning they involve both SME exporters and the enabling environment. CBI develops and implements projects in several consecutive phases.

  1. Value Chain Selection (VCS) phase: based on preliminary research, the most promising value chain in the target country is selected
  2. Business Case Idea (BCI) phase: an initial idea for a project is formulated focusing on the selected value chain
  3. Value Chain Analysis (VCA) phase: an in-depth analysis of the VC is conducted
  4. Business Case phase: a detailed business case for a project is developed
  5. Implementation and Performance Management phase: the project is implemented and the success of the project is monitored
  6. Audit and Evaluation phase: after completion, the project is audited and evaluated.

The objective of the Value Chain Analysis study was to provide answers to the following questions.

  • What does the European export market look like? To confirm findings in the earlier phases of project development and to gain a better understanding of the specific markets and segments a project could focus on.
  • What is the composition of the value chain? Includes an analysis of the key actors, chain supporters and influencers.
  • What are the salient corporate social responsibility (CSR) issues?
  • What are the main opportunities for export to Europe and which obstacles prevent export?
  • What interventions and support activities are needed to seize opportunities and tackle obstacles?
  • How and to what extent will these interventions and support activities help seize opportunities and tackle obstacles?
  • Who can take up which interventions and support activities?
  • What the risks are for a project and how can these risks be mitigated?

The Value Chain Analysis was completed in September 2018, and CBI is currently implementing a specialty coffee program in Rwanda.

Value Chain Analysis for the Coffee Sector in Rwanda (CBI)
Value Chain Analysis Fruit Processing West Africa

Value Chain Analysis Fruit Processing West Africa

This value chain analysis was commissioned by CBI (Centre for the Promotion of Imports from developing countries) in order to identify the most promising product market combinations for processed fruit from Burkina Faso, Côte d’Ivoire and Mali.

Mango has been identified as the most promising product market combination. 

Compared to other African mango origins, the focus countries have the following strengths, which can be leveraged to maintain and expand market position. This comparison provides a starting point for a regionally coordinated diversification and strengthening of the chain.

  • Burkina Faso: large existing market share with track record of inclusiveness, organic agriculture and is suitable for markets demanding organic products and storytelling. Dried mango is the most promising segment.
  • Côte d’Ivoire: well-developed agricultural economy and business environment in comparison to the other countries in the region, allowing it to potentially kickstart the mango processing sector relatively quickly. Côte d’Ivoire is a transport hub for landlocked neighbouring countries.
  • Mali: opportunity to tap into premium niche markets for dried mango that are interested in storytelling about inclusiveness and environmental sustainability, some traction in purees and concentrates.

In order to increase the positive impact of the sector, key factors need to be considered for supporting companies and their enabling environment, which is true for all three countries: diversification, professionalisation, market growth and coordination.

Value Chain Analysis for Processed Fruits from Burkina Faso, Mali and Ivory Coast (CBI)
Analyse de la chaîne de valeur des fruits transformés au Burkina Faso, au Mali et en Côte d’Ivoire (CBI)
Made-by-women specialty cocoa and chocolate

Made-by-women specialty cocoa and chocolate

Thirty Six Foods has partnered with the Able Women Multipurpose Cooperative in Cross-River State and Rokbar to bring high quality and sustainable chocolate to market both in Nigeria and The Netherlands. The partners are creating a chocolate bar fully made by women and produced in Nigeria. The partnership aims to empower female cocoa farmers through access to specialty cocoa markets.

As part of the project partnership, Agri-Logic conducted a baseline measurement on farmer livelihoods and provided training on cocoa quality to the farmer’s cooperative. Agri-Logic also took on project management and reporting to partners.

The Able Women are now formally registered, trained and have a solar dryer in place. A commercial agreement between the cooperative and the chocolate company will ensure buying of cocoa going forward. 

Cocoa sustainability management Nigeria & Ghana

Cocoa sustainability management Nigeria & Ghana

The cocoa sector is constantly considering sustainability. Low quality and low yields are a continued focus. Livelihoods, poverty, nutrition and education require attention. Most large chocolate makers have committed to sourcing 100% certified as sustainable in 2020. Many of these end buyers require increased volumes of certified cocoa, while considering their impact targets beyond 2020. All international traders and several local exporters have partnered with these large chocolate brands for sustainable impact.

Through our consulting branch in Nigeria, we support implementers throughout West Africa in designing the project objectives, organization structure, traceability procedures and budget. We are working as a project liaison monitoring progress and impact. We have analysed the project baseline, and are monitoring progress. We identify any project risks that might affect certification status, our outreach targets and our credibility. We look for opportunities to increase impact.

We integrate sustainable impact with commercial objectives. Since 2016, we have supported our clients and partners who have reached out to a significant number of farmers across West Africa, and the numbers and impact keep expanding annually. UTZ certification was obtained, and the field presence is leveraged to increase impact on livelihoods.

Coffee export capability Burundi & Rwanda

Coffee export capability Burundi & Rwanda

TWIN in partnership with Trade Mark East Africa (TMEA) implemented a two year project to strengthen export capabilities of twenty coffee cooperatives in Rwanda and Burundi with a specific focus on supporting cooperatives in: attaining certification, increasing access to Specialty Coffee markets, improving quality of the coffee produced and developing a traceability programme for coffee grown by women.

This export capabilities study identifies actors, value addition, financial analysis, market demands and the enabling environment. We have assessed the export capability of each of twenty coffee cooperatives on a range of indicators, leading to a segmentation. Furthermore, we identified general trends in export opportunities and challenges for both origins.

Even though Burundi has very high quality coffee according to buyers, there are still a lot of basics that need to be covered to be able to market the coffee successfully. Major challenges still exist in logistics, speed, traceability, reliability of pre-shipment samples, communication and marketing.

Rwanda is seen as well-organised and it is a coffee of good quality, there are certain constraints put forward by the buyers with regards to the marketing of the coffee. Flavour is not as unique and other differentiation is needed to compete in the specialty segment. Cooperatives are not always able to provide reliable pre-shipment samples and have limited knowledge of the market and pricing.

Coffee export capability assessment Burundi & Rwanda (TWIN-TMEA)
Expected Impact of Fertilizer Investment in Nigeria

Expected Impact of Fertilizer Investment in Nigeria

For an international impact investor, Agri-Logic developed a point of view on the potential development impact of investment in fertilizer in Nigeria.

With 34,000,000 hectares of arable land, Nigeria has the potential to be an agricultural powerhouse. Despite this, farmers constantly struggle with low yields and low product quality and the country is still a large importer of food and food products. Current average application rate of fertilizer in Nigeria is estimated at 11 kg/ha while recommended fertilizer application rates are ~130 kg/ha. Increased fertilizer application rate could be of major advantage in improving production quality and quantity, thereby enabling sustained productivity growth. Other commercial opportunities could also be derived along the fertilizer value chain.

Agri-Logic estimated impact based on a representative basket of cassava, maize, and tomatoes; three major crops in Nigeria. A literature review on fertilizer application for these crops provided useful information on impact potential in production quantity and income as a direct result of increased fertilizer use at recommended application rate. Field surveys with farmers and other stakeholders gave an understanding of the reality of fertilizer application and factors affecting its use, prices and availability across the country.

The study provided an overview of the current fertilizer market in Nigeria, as well as its potential impact on yield, livelihoods and food security. The client was provided with an estimated impact on smallholder farmers’ income as well as food self-sufficiency for the population of Nigeria. We also indicated risks and success factors to be monitored in implementation.

Farmer segmentation for optimised service delivery

Farmer segmentation for optimised service delivery

By assignment of IDH Sustainable Trade Initiative, Agri-Logic conducts 4 farmer segmentation studies to optimise service delivery by Supply Chain Management companies to farmers, in order to increase the impact at farmer level.

Many supply chain companies offer services to smallholder farmers to improve productivity, quality and profitability at farm level, and to secure their supply. The effect of these services at farm level is mixed and there is a strong desire to improve their performance. One way to do this is to group farmers in segments based on household and farmers characteristics. These segments are likely to have differing needs, development potential, ambition levels and investment rationales. When these segments are defined, services could possibly be better targeted and return on investment of service delivery could be improved.

The objective of this project is to gain experience with farmer segmentation exercises and to share the learnings of these experiences to support supply chain partners and IDH to segment farmers. Additionally, we aim to develop tailor-made services and products in order to increase the return on investment for supply chain partners, farmers and organizations that are co-investing in service delivery models. Four segmentation case studies are performed with coffee and cocoa supply chain partners in West- and East-Africa.

The envisioned results are:

  • For each segmentation case study: identification of farmer segments, their defining characteristics and recommended tailor-made service packages
  • A set of guidelines on how to monitor effects of service packages on different farmer segments and knowing when to change a strategy
  • A framework for organisations on how to realize effective farmer segmentation to optimise service delivery
African Coffee Investment Review

African Coffee Investment Review

Via its Global Coffee Platform (GCP), the IDH Sustainable Trade Initiative seeks to make a significant impact on the global coffee sector. Africa features heavily in it’s strategy as an under-utilized source of significant new coffee volumes to meet growing demand. Ironically, much of the coffee and sustainability investments over the past 10-15 years have taken place in Latin America and Asia. Africa has just 4% of global certified sustainable supply (against around 10% of total supply), yet the needs for investment in coffee on the continent are arguably greater than elsewhere.

Agri-Logic was asked to conduct in-depth coffee sector studies for 9 African origins: Angola, Burundi, Cameroon, Ethiopia, Ivory Coast, Kenya, Rwanda, Tanzania and Uganda. These studies are used to develop the GCP’s African investment strategy, and feed into the establishment of an African Coffee Facility by the African Development Bank (AfDB) and the Inter-African Coffee Association (IACO). Investment opportunities in each origin are investigated, including modelling of their impact and return on investment at different levels of the value chain.

We developed a dynamic sector model allowing to analyze large volumes of data from different sources. This model is fed by a structured database and allows insight into a sector’s performance compared to user-defined global benchmark origins. The study has been presented at the Africa Coffee Facility inception meeting in Abidjan to a public of regional coffee sector representatives and staff of IACO and the AfDB, as well as during the Global Coffee Platform workshop in Addis Ababa.

African coffee sector investment opportunities – summary (GCP)
African coffee sector investment opportunities – country report Angola (GCP)
African coffee sector investment opportunities – country report Burundi (GCP)
African coffee sector investment opportunities – country report Cameroon (GCP)
African coffee sector investment opportunities – country report Ethiopia (GCP)
African coffee sector investment opportunities – country report Kenya (GCP)
African coffee sector investment opportunities – country report Tanzania (GCP)
African coffee sector investment opportunities – country report Uganda (GCP)
Coffee Sustainability Catalogue

Coffee Sustainability Catalogue

The coffee sector has invested heavily in sustainability for decades, recognizing that we must ensure our ability to meet rising demand for coffee while also increasing the prosperity and well-being of producers and conserving nature. In 2014, leaders in the sector came together to develop a vision for coffee sustainability  that resulted in Vision 2020: a call for improved alignment within the sector on our sustainability efforts.

In late 2015 the Global Coffee Platform, the Specialty Coffee Association of America and the Sustainable Coffee Challenge jointly recognized the need to inventory existing efforts to make coffee a sustainable agricultural product, understand who is doing what sort of work, where the investments are going and how we can better understand and share our impacts and experiences.

The report compiles information on the sustainability initiatives of more than 80 stakeholders throughout the coffee sector. The Catalogue sheds light on sustainability efforts currently underway, and how actors in the sector can collaborate to make coffee the world’s first fully sustainable agricultural product. It includes a mapping of aims, interventions and investment.

Several key findings from report include:

  • Across the coffee industry, more than $350 million is being invested annually in sustainability programs. Collective efforts are also enabling the industry to reach 350,000 farmers each year – a figure that has nearly doubled in the last 15 years.
  • Certification is a tool commonly used to increase consumer awareness, social inclusiveness, traceability and assurance and incentives.
  • The report estimates that transitioning the entire sector to sustainable production is possible, but at the current rate of investment, it would require a total investment of $4.1 billion to achieve and would take until 2045 to incorporate all coffee producers.
Coffee Sustainability Catalogue – full report (GCP-SCA-SCC)
Coffee Sustainability Catalogue – summary factsheet (GCP-SCA-SCC)
Coffee Sustainability Catalogue – initiatives framework (GCP-SCA-SCC)
Coffee Sustainability Catalogue – stakeholder directory (GCP-SCA-SCC)