Country F2F Project Description:

BurmaRural Development

Implemented by Winrock International

Submitted to USAID

December 16, 2013

Asia Farmer-to-Farmer Program (FY2014-FY2018)

1. Objective

Theobjective of the BurmaRural DevelopmentCountry F2F Project is to improve the service delivery of farmer groups, rural organizations, and public and private extension services in targeted high-poverty regions.

2. General description of sub-sector targeted for assistance and rationale

The Government of Burma (GOB) has announced a new rural development strategy to reduce the country’s poverty rate from 26% to 10% by 2015, lifting three million people above the poverty line. USAID/Burma is developing and coordinating plans to support this GOB strategy, for example by strengthening the enabling environment, working with civil society and the private sector to mobilize responsible investments in rural development, and improving the productivity of rice and other high-value crops. USAID is establishing a food policy analysis project to be implemented by Michigan State University, International Food Policy Research Institute, and Myanmar Development Research Institute. Farmer-to-Farmer (F2F) will coordinate closely with this project to promote smallholder value chain development. F2F will also cooperate closely with future Mission-funded projects in agriculture and rural development.As USAID/Burma more full articulates the Mission’s development assistance approach to rural and agriculturaldevelopment and initiates new projects, F2F will adjust and evolve to complement these efforts.

The rural development policy adopted by the Ministry of Livestock, Fisheries and Rural Development (MLFRD) intends to:

“enable[e] rural peoples and communities to manage their own destiny according to their needs, potentials, skills, values and social norms for alleviating poverty. Thus, the essence of the policy is creating the enabling environment for empowering rural poor and for enhancing the ranges of opportunities to improve sustainable livelihoods of rural villages in [a more] participatory manner.”[1]

A person earningless than 300,000 Kyat per year(about $300) is defined as poor by the government.[2]Constraints for these poor smallholders include lack of secure land tenure, unaffordablecredit, poor infrastructure, and insufficient postharvest storage and processing. Smallholdersalso lack access to high-quality inputs. Many farmers report that yields are low and declining. In several regions, conflict and lack of access to profitable markets are also major constraints.

As Burma’s economy opens, farmers and agribusinesses are concerned about their competitiveness compared to other market players. The country imports produce, livestock and aquaculture products, processed foods, and expensive agricultural inputs from adjacent nations, though some of these products could be produced in Burma. Local, open-air wet-markets as well as large, commercial retail grocers are stocked with fresh, processed, and packaged foods from Thailand, China, India, Bangladesh, and beyond. These neighboring countries have advanced knowledge and technologies that lower costs of production, processing, and packaging, and they also have greater access to capital and infrastructure to move goods. In 2015, the ASEAN economic zone will allow for tariff-free trade between Myanmar and its neighbors.

To support the GOB and USAID strategies of reducing rural poverty, Winrockproposes a demand-driven Farmer-to-Farmerprogram to strengthen the capacity of NGOs, farmer groups, and other rural development institutions in targeted high-poverty regions of Burma.[3]We will strengthen formal and informalextension service delivery to disseminate agriculture technologies and innovations, focusing particularly on high-value sub-sectors of aquaculture, horticulture, livestock, and tree crops. F2F will support USAID’s strategy of using affordable digital technologies to disseminate knowledge to farmers so that they can make more informed choices.

Eighty Farmer-to-Farmer volunteers will directly train at least 2,400 agriculture and rural development professionals, students, and lead farmers and strengthen at least three national-levelassociations and seven NGOs, who in turn will reachat least9,000 smallholders and entrepreneurs with improved agricultural technologies and practices.Volunteers will work with existing formal and informal groups.F2F will also supportlocal partners organizing new farmer groups to access improved inputs, technologies, and markets. By working with various types of rural institutions, Asia F2F will enable a diverse group of field professionals to incorporate new knowledge and skills into their work with rural producers and processors, and develop a critical mass of professionals in targeted townships to promote sustainable and equitable rural development.

F2F’s Rural Development Project will support actions prioritized by the Government of Burma and USAID/Burma, includingenhancing income-generation opportunities, improving natural resource management (green growth), diversifying economic opportunities, strengthening community resilience, improving market linkages and value chains, and developing rural entrepreneurship.

3. Description of the key problems/constraints to be addressed or opportunities to be exploited

Asia F2F will work with partners and hosts to address the following major constraints:

  • Lack of technical expertise related to agricultural inputs, production, postharvest handling, processing, packaging, and sanitation along value chains for targeted sub-sectors.
  • Lack of access to profitable markets (for example, many smallholders sell at low prices to Chinese traders).
  • Poor food safety, which is a major concern. For example, chemicalclothing dye and other compounds are used to color food that is no longer fresh. Some street vendors melt plastic bottles into the oil in which they fry tempura and other foods to add crunch. In a 2012 study conducted by the World Academy for Science, Engineering and Technology,[4] food samples taken from Yangon markets contained chemical dyes unsuitable for human consumption. Concern about the quality of locally available food was echoed by restaurant and hotel managers interviewed for this project plan. Food safety and quality concerns causebuyers to import rather than using local products.

In addition to these constraints, major opportunities include the following:

  • Asia F2F volunteers can introduce new education and training on low-cost/low-input, environmentally friendly technologies for integrated, diversified farming, home gardening, animal husbandry, and backyard aquaculture, which will help underserved rural women and poor farmers to improve livelihoods and food security.
  • Many farmers do not use agrochemicals due to lack of money and access to inputs. Consequently, they are farming organically. With certification, horticulture and tree crops (coffee and fruit) farmers could access higher value organic markets.
  • Most farmers are literate and numerate at a basic level, which means that local NGOs, associations, and extension service providers can readily disseminate farming as a businessknowledge and skills introduced by F2F volunteers.
  • Although NGOs were not encouraged in the past, Burma has an active community of NGOs and community-based organizations, and high level of awareness of the benefits of NGOs. Similarly, although many cooperatives failed after the government stopped subsidizing them, other farmer organizations and associations have survived despite many challenges. During Winrock’s F2F pilot program in Burma, staff and volunteers found many farmers that are interested to organize so they can access higher value markets and more affordable, quality inputs. Also, the country has a small cadre of well-educated agriculture specialists who have a good understanding of markets and competition (professionals who received training in countries such as Germany and Japan). F2F volunteers can strengthen this base of human and institutional resources.

4. Proposed F2F activities

a. How will volunteers be used?

During this five-year program, 80 volunteer trips will strengthen rural institutions to improve their service delivery and establish stronger links between professionals and farmers, especially women and smallholders. In Year 1, Winrock proposes to field 15 volunteers in USAID/Burma’s priority topics and regions. F2F volunteers will:

  • Work with USAID implementers and other donor projects to assess and prioritize areas for F2F support based on opportunities and gaps in the target sub-sectors and townships.
  • Strengthen established associations/farmer groups and work with local partners to help organize interested farmers into formal or informal groups.
  • Improve extension programs for technical skills in production, soil and water resource management, integrated pest management, postharvest handling, storage, and processing (focused on gaps in target value chains), as well as farming as a business (record keeping, calculating business costs, business planning, market research, and negotiating contracts).
  • Develop training and extension for small-scale farmers and food producersand processors on proper, hygienic handling of food items and improving quality to meet market requirements.
  • Train farmer organizations how to research and access higher value markets.
  • Assist farmer groups with integrated(diversified) farming to improve food security and nutrition and protect against market fluctuations.

Following is one example of F2F’s proposed approach to promote rural development in high-poverty regions:

In November 2013, Winrock fielded F2F volunteer Rick Peyser to assist a group of coffee producers in Southern Shan State and eastern Mandalay region. Mr. Peyser provided training on international coffee markets and quality at two farms operated by agribusiness ShwePuZun[5]and at three villages with more than 100 smallholder coffee farmers. He then presented his findings at a seminar hosted by the Myanmar Fruit, Flower and Vegetable Producer and Exporter Association (MFFVPEA). Mr. Peyser concluded that the potential exists to link Myanmar’s smallholders to higher value organic and specialty coffee markets. To access these markets, farmers must improve coffee quality and consolidate production to achieve sufficient volumes for export. He found interest at the local and national level to organize smallholders into coffee industry groups. Consequently, over the five-year program, F2F volunteers will strengthen Myanmar’s coffee value chains by:

  1. Assisting MFFVPEA to establish a national Myanmar Coffee Farmers and Exporters Association to:
  • link coffee farmer organizations to international markets with export services
  • promote the country's high quality coffee, and advocate on behalf of the coffee sector within Myanmar and internationally (at trade expositions and other venues)
  • serve as the "go to" point of contact for coffee farmers and their organizations within Myanmar, and as the key resource for buyers seeking to identify sources of high quality coffee within the countryand
  • offer training and technical assistance in conjunction with the Coffee Research, Information, Extension & Training Centre (CRIETC) in PyinOo Lwin.
  1. Collaborating with MFFVPEA to formand strengthenlocal coffee farmer organizations linked to the national Myanmar Coffee Farmer and Exporters Association. (Promoted by Mr. Peyser’s training, smallholders inYwarNganhave started toform three distinct working groups, which could ultimately develop into three associations or cooperatives.)
  1. Developing specialty coffee value chains and offering training and technical assistance to smallholder groups in collaboration with CRIETC and the new associations (i.e., training of trainers).
  1. Providing capacity building in collaboration with local partners so that farmers and mills know how to manage the coffee to protect its quality and to insure that the coffee is properly milled, graded, and sorted before shipping.
  1. As needed, providing technical assistance to ensure interested farmers meet IFOAM international organic standards and can thus access premium prices for organic coffee.
  1. Providing information and technical assistance for the new associations to promote Myanmar’s unique coffees to international buyers.

In collaboration with local partners, F2F will replicated this approach in other villages and townships to reduce rural poverty by helping farmers organize, access improved extension services, and sell their products to higher value markets.

b. What are the key country partners and their roles?

Country partners –including USAID implementers, rural institutions, and private agribusinesses – will support assessment and planning, host identification, in-country volunteer support, and impact monitoring. Winrock will seek the required USAID approval to collaborate with public sector partners such as local universities, research centers, and government extension service providers. Partners will provide complementary support, such as linking hosts with broader networks, and will receive volunteers to foster this. F2F will work with partners to widely disseminate benefits of volunteer assistance and promote sustainability. Table 1 includes expectedPartners.

Table 1.Expected Country Partners

BurmaF2F Country Partners
National level associations/networks such as:
  • Food Security Working Group
  • Myanmar Fisheries Federation
  • Myanmar Fruit, Flower and Vegetable Producer and Exporter Association
  • Myanmar Livestock Federation
  • LIFT Fund
Innovative, responsible agribusinesses such as:
  • Shwe Pu Zun Coffee Farm
  • Golden Mast Aquafeed
/ NGOs such as:
  • ActionAid
  • World Vision
  • CSSDD
  • Pact
  • BRAC
Donor-funded projects such as:
  • MYFish
  • Shae Tot

c. What are likely to be target hosts?

Over the five-year program, F2F will work with at least three national-level associations/federations and seven NGO hosts. Volunteers will strengthen at least 10 formal or informal local-level farmer groups and five agribusinesses. Winrock and volunteers will consult with partners listed in Table 1, other relevant stakeholders, and the Ministries of Agriculture and of Livestock, Fisheries and Rural Development to identify hosts with the potential to widelydisseminate improved practices and information. We will also coordinate host selection and planning with USAID implementing partners.

F2F will prioritize hosts working in high-value agriculture (e.g., aquaculture, livestock, horticulture, and tree crops such as coffee and tropical fruits). Hosts will play an active role in developing scopes of work (SOWs), implementing volunteer recommendations, contributingstaff and resources toward the assignment objectives, and sharing information.

d. How can volunteer recommendations be shared broadly to maximize impacts?

To maximize assignment impacts,in addition to the collaborations mentioned above, F2F will also cooperate with existing networks in Burma, such as the Food Security Working Group and LIFT Fund. Based on past experience,Winrock will share volunteer recommendations using the following strategies:

  • Work with partners and hosts to develop action plans for information dissemination through their networks.
  • Organize seminars at the end of relevant assignments to widely share the accomplishments and volunteer recommendations. Interested farmers, agribusinesses, local experts, development professionals, donor representatives, and media will be invited. The media coverage will help further disseminate F2F activities and increase awareness of US assistance.
  • Engage volunteers to help prepare extension materials to share with all stakeholders.
  • Prepare success stories and articles to share with audiences in print and electronic form through email, websites, newsletters, journals, blogs, and magazines.
  • Organize training of trainers to spread volunteer recommendations with other beneficiaries.
  • Participate in USAID events and other development exhibitions/fairs to disseminate F2F volunteer materials and allow local people to learn about US citizens’ support.

In addition, Winrock will work with USAID/Burma to prepare a separate communications and outreach workplan that capitalizes on F2F’s unique ability to put a face on development through social media, Burma’s budding free press, and traditional outlets and social media in the U.S. F2F volunteers will support this outreach strategy.

5. Any key feasibility issues (econ./fin., institutional, env., social, technical)

In its2012-2014 Strategy, the Food Security Working Group provides a useful summary of the economic, social and institutional issues that affect food security:

  • “Access to productive land limited by soil erosion, natural hazards, political instability, land tenure issues, and/or debt,
  • Unavailability or unaffordability of external inputs, resulting in low production or failure of crops and livestock,
  • Inability to select appropriate alternative crops in changing ecological and economic situations due to lack of information on alternatives, lack of technologies, and/or government policies,
  • High risks on investment in agricultural production due to uncertain land tenure, high cost of capital, unskilled labor, poor health status, high impact of natural disasters, and uncertainty about returns (due to large fluctuation in market prices and weaknesses in market mechanisms),
  • Inability to get adequate returns for labor invested in crops, resulting in low wage labor, high food to wage ratios, and strong push-factors for labor migration and high-risk behaviors.”

To reduce the effects of these constraints, F2F will work within the Government’s Rural Development Strategy, select hosts that can overcome these obstacles, and collaborate with local partners providing complementary resources.

Eighty Farmer-to-Farmer volunteers will directly train at least 2,400agriculture and rural development professionals, students, and lead farmers at a cost of approximately $820 per direct beneficiary. However, through training of trainers and improved market access and extension services, the 15 or more participating institutions will reach at least 9,000 farmers, students, and entrepreneurs with improved technologies, which reduces the cost per beneficiary to an estimated $218 per person.

6. Other resources available and/or needed to accomplish desired objectives

As described above, program success will depend on effective collaboration with existing donor projects, government, and the private sector. One of the ways to create win-win collaboration is to focus volunteer assistance on high priority sub-sectors and engage the institutions, projects, and companies that are most interested in that particular sub-sector. F2F will work with partners and hosts that have access to complementary resourceseither internally or through partnerships to achieve the desired objectives.

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BurmaRural Development Country F2F Project Plan

Asia Farmer-to-Farmer Program (FY2014-FY2018)