1. APEC CONFERENCE
Strengthening Public-Private Partnership to Reduce Food Losses in the Supply Chain
“Advancing Post-Harvest Technologies and Management to Reduce Losses in Rice Value Chains”
Alfred Schmidley Scientist, Business Model and Value Chain Specialist
International Rice Research Institute (IRRI)
Westin Hotel, Chinese Taipei
6 August 2013

2. Agenda Overview: Reducing PH losses
Advancing PH technologies – an integrated approach
Improved technologies
Business models
Multi-channel extension and delivery
Multi-stakeholder platforms
Historical lessons and recommendations

3. International Rice Research Institute Los Baños, Philippines
Mission
Reduce poverty and hunger,
Improve the health of rice farmers and consumers,
Ensure environmental sustainability
Through research (& delivery) partnerships
Established in 1960 by the Ford and Rockefeller Foundations

4. Yield breakthroughs in rice production
Yields approx.
1.5 t/ha
Famines predicted, slow growth
Today
Yields approx. 4 t/ha
Foundation for economic growth
低脚乌尖
“semi-dwarf”
Modern HYVs: more grain, less biomass, shorter durations
Traditional rice: more biomass than grain, high duration

5. Average Postharvest Losses
Manual threshing 1-5%
Sun drying 3-5%
Cutting, handling 1-5%
Open storage 5-10%
Village milling 20-30%
Small retailers
Machine threshing 1-5%
Combine harvesting 1-5%
Mechanical drying 1-2%
Sealed storage 1-2%
Commercial milling 5-30%
Large retailers
Crop
Consumption
Physical losses 15-25% in traditional postharvest chain in SE Asia
Physical losses in mechanized postharvest chain
Loss kehilangan
Postharvest losses kehilangan pasca panen
Quality loss kehilangan kualitas
Quantity loss kehilangan kuantitas
To Weigh menimbang
The weight berat
Quality mutu, kualitas
Quantity kuantitas
Quality losses resulting in 10-30% loss in value

6. Benefits of Reducing PH losses
Increased resource efficiency
Decreased pressures on land and the environment
Increased food security for the poor – more rice in rice bowls.
Increased affordability of rice and price stability.
Increased income for farmers
Increased livelihood opportunities

7. Advancing PH technologies and best practices
Improved technologies and options
Business models
Multi-channel extension & delivery
Multi-stakeholder platforms / Learning Alliances

8. 1. Improved PH technologies

9. Common reasons Why technology fails to be adopted...
Top-down approach to dissemination rather than “bottom up” market building (e.g., public sector programs that give away free equipment)
Lack of “buy-in” from end-users, insufficient knowledge about technology use and benefits.
Technology not adapted to suit local needs (i.e., “one size fits all ”)
Focus on component technologies alone (w/o recognition of other needs or a clearly defined “business case” for adoption.)
Attempts to outscale technologies w/o regard for building sustainable local supply chains.

10. …equipment graveyards are monuments to lessons unheeded

11. Technology Adaptation Needs
Locally produced
Centrally produced
Flat bed dryer
Laser land leveling
Hermetic Super bag
Characteristics
Simple technology
Complex processes
Major Support Needs
Technology transfer
Industrial extension
Machinery testing
Demonstrate benefits
Capacity building (users, manufacturers)
Business models for usage
Characteristics
Complex parts (laser)
Local content (bucket)
Major Support Needs
Demonstrate agronomic benefits
Establish supply chain
Industrial extension
Business models for usage and delivery
Characteristics
Mass produced
Very simple or very complex (SB, combine)
Major Support Needs
Establish supply chain
Support services (training, after sales)
Regulations
Economic analysis
There is no “one size fits all”
M.Gummert, 2012

12. Feeding the Technology Pipeline
A.Salvatiera, 2012

13. 2. Business models

14. Postharvest “system” Business models Rice markets Farmers
Distributor
Retail Dealers
Service / Repair
Component
Suppliers
Fabricator
Other “value creators”
Research
Extension
NGOs & community organizations
Banks/MFIs/finance
Policy-makers
Improved technology options
Business models
Value chains (postproduction and technology supply)
Other cross sector value creators
Business models
Rice markets
Production
Harvesting
Threshing
Drying
Storage
Milling
Farmers
Service providers
Traders
Millers

15. Business Model Workshops:
What is a business model? What for? How one can be used? Why?

16. A Tale of Two Dryers…
Left: Defunct dryer Right: Functioning dryer Both dryers were installed about the same time supported by public sector donor monies. The left one now defunct was grouped-owned by a local farmers cooperative and remains unoperable and unused. The right one was taken over by a single farmer-entrepreneur who now owns and operates a thriving contract services business (based on a Learning Alliance supported Business Plan) As an unexpected outcome, two farmers trained to install and operate the now dyfunct dryer earn money by helping millers and others install theirs! (Source: A. Schmidley IRRI PH Project, 2011)

17. Multiple uses of a business plan
Analyze my farm enterprise
Evaluate a new activity (technology or practice)
Communicate one’s business to stakeholders
Attract resources and addt’l capital if needed
Guide implementation, manage risk
BUSINESS PLAN
for
PADDY DRYING SERVICES
Mr. Koul Savoeun
Entrepreneur & Cooperative Head
Mobile:
Balat Meaychey Agriculture Development Cooperative
Balat Village, Norea Commune, Sangke District
Battambang Province
Jan 2012
Key learnings:
MFIs: Need to offer flexible loan products and services to expand in this key target segment.
Farmers: Important of cash flow in a seasonally fluctuating business.
Research & extension: integrate actor resources & technical support minimizes risk & benefits of all parties.

18. Cambodia Highlights – Business Forums
Identified areas for collaboration:
Assist existing MFI clients with technical and other support to optimize efficiency and profitability of PH enterprise (& minimize risk).
Train MFI staff about PH technologies & opportunities with business plans from actors.
Learning activities to increase financial and market literacy so rural actors can manage loans and new enterprises.

19. A Business Model approach....
Treats farmers as private sector actors trying to maximize profits from farm enterprise activities.
Looks at the end-user’s enterprise model to make a “business case” for adoption (not just “disseminating” technology).
Translates technical benefits into a quantifiable “value proposition” for end-user purchase of technology. (No free or unsustainable giveaways beyond demo or piloting.)
Addresses both “production” and “technology supply” value chains. (e.g., linking retailers to participatory trials and farmer demand for technologies.)
Leverages shared learning and integration of actors. (e.g. Learning Alliance helps facilitate learning and outscaling activities with the private sector – though this is a work in progress!) 19

20. 3. Multi-channel extension and delivery

21. Multi-channel extension and outreach: Hermetic Storage
5 t Cocoon
Principles
Container with low oxygen permeability
Biological activity inside reduces oxygen quickly
Insects die at low oxygen level
Container prevents moisture absorption

22. Participatory trials and data collection: Farmers and local extension/outreach partners

23. Philippines highlight
“As we can see (right), Super bags purchased for P100, times 6 bags is P600 for the first season. During my trial, I stored seed for 3 months, and my germination rate improved from 82% to 94% for Super bag stored seed. As a result I saved P1,224 in seed next planting. This is my profit and much more than cost of the Super bags which I can re-use w/o buying again next season, increasing my profit even more.”
Marilyn Aranas, female farmer
Butuan, March 2012

24. 4. Multi-stakeholder Platforms and & Learning Alliances

25. National Learning Alliances – a work in progress)
Multi stakeholder platform including key public and private stakeholders
Plan
Act
Reflect and capture
Flexible partnership allows new partners to get on board
Leverages co-funding
Captures learning and makes it available to others
LA is cross-cutting (technologies, business models, extension/delivery, private sector)
Source: R. Flor, T. Mendoza, IRRI, 2011

26. Outscaling & cross-country learning: Combine harvesting
Vietnam: approx 8,000+ combines in the Mekong
Cambodia PH Learning Alliance
Response to labor shortage and high harvesting cost
Physical losses reduced from 4-10% to 1-2%
Timeliness -> Better quality

27. Improved Postproduction Management = Reduced Losses, Reduced Risk and Reduced Cost
Cambodia 2012
Cambodia 2007
Extreme labor shortage
Increased production
Delay in harvesting
Losses
Burned rice fields (2009)
Labor cost of manual harvesting: US$ 160
No combine harvesting
Prey Veng Province, 2012
Combine harvesting cost: US$
(Manual harvesting cost: US$ )
Losses reduced to 1-2%
Improved quality
Employment generation: Contractors,
service providers, workshops
2000 plus combine harvesters, all types
M.Gummert, 2012

28. Flat Bed Dryers: Key issues
Local production (assist local workshops with technical support)
Adaptations (up scaling)
Performance testing
Financing (users)
Operator training
Multi-extension pathways needed
Public sector can play a key role here!
M.Gummert, 2012

29. Will Project cycles limit sustainable development & delivery
Will Project cycles limit sustainable development & delivery? Example: Processes for flat bed dryer development, Cambodia
Testing of recirculating dryer
Business model development for farmers group
Project installs 4t demo unit at farmers group
Blower testing training
Dryer manuf. training in Vietnam, technology transfer
Project
Linking with financing institutions
Promotion
Training for users
New rice husk furnace
2007
2008
2009
2010
2011
2012
2013
Manufacturers increase capacity to 8-20t, problems with blower
End-users experiencing
technical problems outscaling. Support?
Local manufacturer starts production
Local manufacturers
Local manufacturer develops next generation dryer
(recirculating dryer)
Other manufacturers copy, millers install dryers
Dryer
users 1 3
~20
~200
Farmers groups
Commercial use
Commercial and contract
M.Gummert, 2012

30. Summary & Recommendations
Component technologies are needed but insufficient for sustainable adoption. (A better functioning “systems approach” is needed.)
Each sector should stick to their respective mandates. Public sector giveaways don’t work. PPP’s should NOT be about govt going into business.
Group ownership of equipment by farmers hasn’t worked. These tend to go hand-in-hand with public programs for free or heavily subsidized equipment. This distorts agro-machinery markets, retards sector development, and limits choices and options available to actors.
Technology adaptation is important to suit local needs (i.e., “one size doesn’t fit all”). Technical support for local manufacturers is essential.

31. Summary & Recommendations (cont’d)
5. Local product champions are often linked to successful technology advancement (e.g., farmer leader, researcher, NGO) who stay involved or “stick with” the longer process.)
6. Building sustainable supply chains are necessary for sustainable outscaling and delivery. “Push-and-pull” approaches work best.
7. Multi-stakeholder platforms can facilitate learning, sharing lessons, and integration of actors around a range of needs. (technical adaptation, piloting business models, building supply chains, private sector engagement, and cross-country learning.
Time needed for advancing technologies and sustainable adoption is around 10 years if history is any indication. Short-term (3-5 year) project cycles generally result in local actors/stakeholders “falling away” mid-stream or before commercially sustainable thresholds are crossed.

32. 谢谢