ADKN

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ADKN
Best Practice Marketing for Communities in
Mountainous and/or Drug-Crop Producing Regions
Final Project Workshop
The Alternative Development Knowledge Network
Project Output 7 The Rapid Rural Agricultural
Commercialization Framework
Workshop Presentation
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DOCUMENT OVERVIEW
INTRODUCTION OVERVIEW OF RRAC EXAMPLE PROJECT
CHAK-WARDAK GROUP WORK
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PRESENTATION OBJECTIVES

• Explain the RRAC Model developed for the manual
• Contrast the Model with other approaches to DORE
  development

Introduce Model

• Give background for project area in Chak-Wardak
• Show how RRAC Model can be applied to Chak-Wardak

Provide Detailed Example

• Introduce RRAC planning chart
• Enable groups to make model RRAC projects

Prepare Group Exercise
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DOCUMENT OVERVIEW
INTRODUCTION OVERVIEW OF RRAC EXAMPLE PROJECT
CHAK-WARDAK GROUP WORK
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OVERVIEW OF RRAC
Strengthen the Business
Set Up Local Agribusiness
Transfer business to community

• Appoint professional-quality management team
• Set up basic infrastructure
• Collection Centre
• Vehicles
• Packing facilities
• Buy produce from farmers
• Transform produce (sort, pack grade, process,
  etc)
• Sell produce

• Conduct on farm improvements
• Pest control
• Commercial varieties
• Strengthen organization
• Corporate governance and control
• Performance management
• Improve growth, profitability and cash flow

• Train local leaders to replace external managers
• Set up Shareholders Council/General Assembly to
  exercise ultimate oversight
• Create farmer-staffed Board/Management committee
• Transfer formal ownership from project to
  beneficiaries

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RRAC AND TRADITIONAL APPROACHES
Traditional Bottom Up Approach
Traditional Top Down Approach
Cooperative or farmers association does
everything from the start, e.g. planning
management, marketing
External organization, e.g. state owned contract
farming company, does everything- farmers are
just suppliers

• Advantages are
• High level of participation
• Easy to exit
• Disadvantages are
• Difficult got Cooperatives to reach scale
• Difficult for farmers to execute agribusiness
  management
• Difficult to persuade farmers to participate
  before markets are proven
• Difficult to persuade farmers to continue if
  there are early failures
• Difficult to get capital to underwrite early
  losses

• Advantage are
• Professional management
• Tends to have capital to underwrite early losses
  and develop customers
• Easy to persuade farmers to participate
  (contract farming is very popular with farmers)
• Disadvantages are
• Lack of participation
• Hard to exit- may have to run company in long
  term

RRAC COMBINES THE STRENGTHS OF EACH AND AVOIDS
THE WEAKNESSES
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DOCUMENT OVERVIEW
INTRODUCTION OVERVIEW OF RRAC EXAMPLE PROJECT
CHAK-WARDAK GROUP WORK
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CHAK-WARDAK OVERVIEW
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CHAK-WARDAK SOCIO-ECONOMICS
Data
Comment
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CHAK-WARDAK PRODUCTION
Data
Comment
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CHAK-WARDAK MARKETING I
Data
Comment
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CHAK-WARDAK MARKETING I
Data
Comment
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SUMMARY
Weaknesses
Opportunities
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RRAC IN CHAK-WARDAK
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DOCUMENT OVERVIEW
INTRODUCTION OVERVIEW OF RRAC EXAMPLE PROJECT
CHAK-WARDAK GROUP WORK
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BREAKOUT GROUPS TASK

• As with the marketing exercise, each group has
  been assigned one of these 4 scenarios
• A community of Thai highland vegetable producers
• Peanut and fruit producers from upland Laos
• Coffee producers from northern Colombia
• Chak
• Your group should imagine that it is going to set
  up a DORE in the scenario described
• Use the planning chart format provided to
  indicate what will happen, and when
• You can find the details for the scenarios in the
  Group Work pack

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BREAKOUT GROUP WORKSHEET
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Thank you