Project / Program Summary
Grain Marketing Support in Burkina Faso - Phase II
I. Basic data
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II. Description and scope of project
This project was planned in consultation with UGVBM and the Corporation de l'Union des producteurs agricoles (CDI/UPA). It will emphasize consolidation of UGVBM's organizational development and the marketing system established in Phase I to strengthen its financial and organizational independence. The key targets will be: i) increasing the degree of involvement and participation by producers, so that they completely own their organizations; ii) increasing volumes marketed, to enable the organization to self-finance 50% of Phase II; iii) forming partnerships with one or more financial institutions to make advance payments.
- Goal and objectives of the project
The goal of the project is to allow the producers of La Boucle du Mouhoun to play a more active role, through their organization, in controlling the full cereal production system in order to obtain a fair price and a more stable income.
The objectives are:
- to strengthen the Union des groupements villageois de la Boucle du Mouhoun (UGBVM)in its institutional, organizational and democratic development; and
- to strengthen the collective marketing system and associated mechanisms.
Achieving these objectives will allow UGVBM to contribute to the vitalization of the cereal production system by building a solid organization capable of playing an effective role, and to enhance Burkina Faso's self-sufficiency, by ensuring the food security of farmers themselves and by consolidating surplus grain supplies.
- Activities / contents
Training and organizational development
Training and organizational development will play a key role in Phase II. They will strengthen the organization and the collective marketing system, and ensure the effective transfer of operations from CDI/UPA to UGVBM. The level of training and information of UGVBM managers will be increased. They will enable them to acquire the knowledge and tools needed to make sound decisions for the development and management of their organization. Farmers will also be trained through their rural organizations to increase their involvement and their level of knowledge and information about the concept of supply management. In organizational terms, UGVBM will be empowered by completely owing the personnel management and operating expenditures of the Union and the collective marketing system. UGVBM will be 50% financially independent by the end of Phase II and 100% by the end of Phase III. Support for women's groups in their own production (reselle or other flowers) will be maintained, so that women can become more and more involved in UGVBM's decision-making bodies.
Collective marketing system
As a continuation of Phase I, UGVBM will pursue the objective of raising producers' revenues. This is a crucial element in stimulating production. In this regard, emphasis will be placed on increasing quantities marketed by each member. The aim is to increase the annual average tonnage delivered per producer from 0.5 to 1.75 tonnes. This would raise net annual revenues by about 30,000 CFA francs. These individual increases should raise total volumes marketed by the organization, allowing it to increase its degree of financial independence. UGVBM will also pursue activities aimed at a better knowledge of the grain system and net surpluses in the area, and a better fit between supply and demand.
Partnership with one or more local financial institutions
Access to appropriate financing tools is a vital condition for success in developing grain producers and making them more professional. In Phase I, a marketing credit system (advance payments to farmers) was implemented in partnership with a local financial institution. This institution provided a portion of the necessary funds, but UGVBM had to manage the awarding and distribution of funds to producers on its own. This operation should normally be assigned to a financial institution. Moreover, the lack of reliable savings mechanisms in the area had a direct impact on poor rates of grain delivery by producers. (In the absence of reliable financial institutions, several producers preferred to keep large volumes of grain, selling them only when they felt the need for funds, even through they might obtain a lower price.) To meet the real need for financing and savings tools, UGVBM will strengthen its ties with savings and credit unions in Burkina Faso that are interested in becoming involved in the community. It will also sign formal agreements to finance marketing operations and to remit funds to producers. Apart from the one in Dédougou, a network of five savings and credit unions will be established in the major centres of La Boucle du Mouhoun, which will serve the majority of villages. Memorandums of understanding will be signed with savings and credit unions to subcontract management of advance payments to farmers at the same administrative cost as if this were done by UGBVM. - Current impacts (Phase I) and anticipated impacts (Phase II)
Phase I - The second phase of this project started up in March 1998. Our partner in Burkina Faso is the Union des groupements vilageois de la Boucle du Mouhoun (UGVBM). This emerging organization will take 10 years to become fully independent and self-financing. The organization has nevertheless made good progress to date. It is too early in Phase II to talk about progress in terms of outcomes but, at the end of Phase I, we see that farmers belonging to UGVBM have increased their incomes by about 25%. UGVBM's existence has a positive impact on prices paid to producers throughout the area of intervention. Increased income from grain production encourages farmers to produce more and has a positive impact on crop areas. A new financial institution has been established and offers savings and credit services to producers (about 100 producers have opened a savings account). Farmers earn more for grain marketed by UGVBM. Grain acreage has slightly increased.
Anticipated impacts - Phase II- Price negotiation mechanisms, marketing standards, advance payments, and the collective marketing system are operational.
- Collective marketing systems contribute to the economic growth of the agricultural sector.
- Farmers are recognized as key stakeholders in the system, and farming is valued as a profession.
- UGVBM is respected in the community as an independent organization with total organizational autonomy.
- UGVBM helps to supply quality grain to areas of shortage.
- Features in line with the Agenda for Action
This project is clearly in line with the proposed Agenda for Action covering poverty reduction and agricultural economic development.
III. Contact point:
Lise Lamontagne - 994-2837
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