Small Scale Farming in the Caribbean:

Keeley HolderOctober 18th, 2012

BARBADOS NATIONAL UNION of FARMERS

Vegetable Producer – Problems & Solutions

Barbadian Agriculture While Barbados economy is considered

“developed” Barbadian fruit & vegetable industry is

NOT “developed”

It does not enjoy the benefits of a “developed nation”

It desperately needs developmental support

National Union of Farmers Not-for-Profit Company Celebrating 10th Year Aim:

To bring more professionalism to agriculture & promote the interests of all members and others within this sector

Committed to: Sustainable economic development of

Barbados agricultural sector & Barbadian farmers.

Enrichment in quality of life of Barbadian people through fresh healthy foods

Key Binding Constraints1. Limited & Oligopolistic Market

4 Large Buyers > 2000 Small Growers Unstable Price & Business Relationship High Incidence Farmers Entering & Exiting Industry

1. Lack of Productivity & Competitiveness Low Yields Crop Mismanagement Inconsistent Quality, Unreliable Supply

1. Cycle of Blame & Distrust; Lack of Confidence, Cooperation & Interaction Between Actors

A Technical Assistance Solution

Cruise & Grocery Value Chain Project

Well Conceived Consumer-centric Avoid Perverse Incentives Leading Change

Value Chain?

“An agreed interaction and sharing of information between economic actors, providers of services and policy makers, that is grounded in proper assessment of production and markets, with joint action plans to consistently deliver products demanded by consumers that are of specific quality, highly differentiated or branded, competitively priced, safe to consume or use and which will generate equitable and sustainable profit margins for all

concerned.” (Robert Reid, IICA)

Cruise & Grocery Value Chain Project

1. Improving Market Access & Developing Business Partnerships using Value Chain Approach

2. Increasing Farmer Competitiveness by Leading Change & Effective Knowledge Transfer Methods

3. Institutional Strengthening NUF

4. Knowledge Management & Best Practices Dissemination

Leading Change (HBR – John Kotter)

1. Establishing a Sense of Urgency

2. Forming a Powerful Guiding Coalition

3. Creating a Vision

4. Communicating the Vision

5. Empowering Others to Act on the Vision

6. Planning for & Creating Short Term Wins

7. Consolidating Improvements & Producing Still More Change

8. Institutionalizing New Approaches

Knowledge Transfer

Diffusion of Innovation (Strategy used by Extensionists)

Intrinsic Characteristics that Influence Adoption Building Enough Momentum to be Self-

Sustaining

COMPONENT 1

Expand Market

The Demand – Cruise

120,000 lbs exported 2011/2012

BDS $1.2 Million foreign exchange

Super Centre is conduit

Buyers want “Go-to-Guy” Not just selling produce

MISSED OPPORTUNITY

60,000 lbs MORE requested Couldn’t meet demand

11 Crops, 10 Herbs desired Not price competitive

Expand Market Increase Cruise Ship Demand Tour Cruise Ship Develop Crop Forecasting Analysis

System Farmer – Buyer Dispute Resolution

Supermarket Grocery Code of Conduct

Value Chain Upgrading & Strengthening – Bilateral Meetings

COMPONENT 2

Increase Competitiveness Farmer Field Training

BEST knowledge transfer method Go To the Farmer Generate Momentum

Provide Crop Specialist Immediate Impact (Short-term Win)

Global Exposure Fruit Logistica, Germany World Agri Expo, California

COMPONENT 3

Strengthening NUF Interpret Farmers’ Endowments Strengthen Governance Structure

Revamp Constitution, Bye-laws, Policies & Procedures

Training of Farmer Leaders: Communication, Negotiation, Contract

management, Strategic planning, Group dynamics, Leadership, Board governance, Board management, Time management, Meeting management, Advocacy and Lobbying, Fund raising, Branding

COMPONENT 4

KM & Best Practices Integrated Project Communication

Promotional Material for Media Press Releases Design of Farmer Materials (online/hard copy)

Develop ICT Platform for Farmers’ Communication

Farmer training in ICTs (Vocational Training Board)

Develop E-format, Multimedia Documents for Farmers

Why This Strategy?People Do Business With

People Who They

KNOW, LIKE & TRUSTKNOW, LIKE & TRUST

Why This Strategy?

Strong Potential for Replication

In Other Caribbean Countries

The NoveltyUnraveling Hidden Complexity

Thinking Outside “Agricultural Box” Avoiding the Relevance Paradox

Business Perspective

People-Centred Approach

Food Security

FACT: Exporting achieves food security

HOW: Stabilises price & business relationship Local market not as saturated Improves farm productivity, competitiveness

Food Security

FACT: Exporting achieves food security

OUTPUT: Better prices Higher quality Consistency

Unconventional W

isdom

Financing

Cost: Estimated US $750,000

In Kind Partners – MoA, FAO, IICA In Cash Partners – IDB-MIF, Super

Centre, Input Suppliers

IDB MIF: Agenda: Helping Small Farmers to Produce

Higher-Value Products and Access Niche Markets

Financing

Stil l Need US $500,000

One More Thing…

“Literacy and managerial capabilities exert a strong, robust, & statistically significant impact on export of fresh & processed

fruits and vegetables. This result reflects two facts:

1. Horticulture is a knowledge-intensive business. 2. Success in world markets requires the availability of a skillful

class of entrepreneurs.”

THE WORLD BANK