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Global Donor Platform for Rural Development

Werner Buck, Corporate Director Public & Quality Affairs


January 2013

Supporting Food, Farmers and Markets


Roles of private sector Provide nutritious food products that are often not produced in sufficient quantity/quality by developing countries Produce in developing countries, via mergers/acquisitions or start up new production sites Offer knowledge about sustainable safe and efficient primary production in countries where a company has production sites; Support/set up local development programs to create shared value

Supporting Food, Farmers and Markets


Roles of private sector Provide nutritious food products that are often not produced in sufficient quantity/quality by developing countries Challenge: legislation/regulation, often not harmonized / transparent

Supporting Food, Farmers and Markets


Roles of private sector Produce in developing countries, via mergers/acquisitions or start up new production sites Precondition: firstly create a market / brand position in the country concerned. Challenges: legislation/ regulations lack of stability (so investments only interesting with very short ROI) risks mitigation by partnering with local players => find the right partner

Supporting Food, Farmers and Markets


Roles of private sector Offer knowledge about sustainable safe and efficient primary production in countries where a company has production sites; Support/set up local development programs to create shared value Condition: Production, processing, distribution, the market; all have to be present and have to be aligned; chain approach Royal FrieslandCampina Dairy Development program

FrieslandCampina Dairy Development Program

Livelihood support program for many thousands small farmers in dairy farming sector SE Asia (Thailand, Vietnam, Indonesia, Malaysia) since 1995 and Nigeria Countries with FrieslandCampina production sites Keep local milk production in line with the growing need for nutritious food Program aimed at: Knowledge transfer via model farms Technical farm services & Quality Assurance Higher productivity cows and farms Stable jobs and higher family income farmers Close cooperation with authorities in countries

Dairy Develop ment


Helping 40,000 small farmers Asia, W-Africa

Supporting Food, Farmers and Markets


Roles of private sector Challenges Dairy Development Program: Solid business case needed to be sustainable; more than charity Business case; often only if you have patience and long term focus Support to reduce challenges mentioned: optimize the environment Infrastructure (roads. Nigeria and SE Asia, if you have good roads, transport is easier and faster, key to stimulate higher production of fresh produce)

Supporting Food, Farmers and Markets


Roles of private sector Challenges (contn): Reduce market protection. Example: fixed (minimum) prices can slow down developments because it decrease the need for change ; if prices are fixed, you cannot start a performance based payment system with incentives to improve production and quality Support the formation of farmers organizations Cooperation with / support of (local) government