20% more income for farmers in Ethiopia

Since 2012, SNV Ethiopia and Agriterra have been improving the commercial performance of agricultural organisations and their affiliated cooperatives. The Cooperatives for Change project (C4C) has already produced some fantastic results over the past few years. As a result, the affiliated farmers have experienced a 14% growth in productivity and 20% more income.

In Ethiopia, agricultural cooperatives and organisations play a very limited role in the production, sale and processing of the products supplied by their members. A mere 5-10% of the products are marketed collaboratively: There is enormous market potential in this area.

This is precisely the focus of C4C's work, which has so far been a great success. Cooperatives that were previously barely active in the production, sale and processing of their products are now finding their way onto (international) markets. The amount of marketing activities conducted by organisations grew by more than 100%: from 80,000 quintals* in 2012 to 170,000 in 2015. 

C4C's work focuses on realising improved production and processing, stable trade and higher incomes for the members. They professionalise the agricultural organisations and cooperatives through business consultation, training and coaching.

Training reaches 200,000 farmers
Further highlights of the project up to the end of 2015:

• Almost 4,000 farmers and 600 trainers participated in training sessions aimed at increased productivity and crop quality. With these sessions, we reached approximately 200,00 farmers.
• Organisations delivered 1,850 tonnes of improved seed via their cooperatives - some 8,500 farmers benefited as a result.
• Training and coaching in purchasing management at 70 cooperatives resulted in 25% more trade for these cooperatives.
• 13 organisations gained access to funding to a total of 14 million dollars for working capital and investments (in agro-processing companies).
• 4 organisations released 900,000 dollars in shares for purchasing. 3 other organisations have begun this process.

Example: the export of white beans
The Ras Gayint Union is 1 of the 16 organisations that participates in C4C. Under the leadership of C4C, the organisation focused on white beans and even entered the export market. The collaborative trade in white beans grew from 1,313 quintals in 2012 to 14,329 quintals in 2016, and continues to grow today.

200 extra women at work
C4C advised the organisation to add value to the product by selecting and cleaning the beans by hand. This puts them in a position to enter the premium export market. The organisation conducts this in-house in order to create more jobs for its members and to retain the extra profit for them.

Some 200 women work for the organisation selecting and cleaning the beans, for which they are paid wages that are 35% higher than the local standard, plus additional bonuses for good performance. One real innovation with regards to this aspect is the provision of childcare. Thanks to the establishment of a local crèche, young mothers have access to work.

Capital growth is huge
The financial health of the organisation is also flourishing. In 2015, 262,000 dollars in profit were made from white beans. The growth in capital is enormous: from 82,800 dollars in 2012 to 391,000 dollars in 2015, and a projected 506,000 dollars in 2016.