Digitising Agriculture Value Chains in Ethiopia ????

AgUnity and OCFCU's Digital Journey

Ethiopian smallholders, cooperatives, and unions are grappling with unprecedented challenges in the rapidly evolving global agricultural landscape. The coffee industry, in particular, faces significant shifts and intensifying global competition, coupled with economic challenges and the ripple effects of inflation. The demand for cost-effective solutions is at an all-time high. Additionally, the increasing requirements for certification and new European sustainability reporting legislation underscore the need for reliable, granular data. The message is clear: the future is digital.

The Importance of Digitisation in Agriculture

Digitisation has emerged as a powerful catalyst for transforming Ethiopia's agricultural sector. With over 80% of the population dependent on agriculture for their livelihoods (World Bank), digitisation can significantly improve smallholder farmers' productivity, efficiency, and market access. The benefits are becoming evident for the Oromia Coffee Farmers' Cooperative Union (OCFCU), who has partnered with AgUnity and the International Trade Center (ITC) under The Netherlands Trust Fund IV to embark on a digital journey to strengthen agricultural value chains in Ethiopia.

Challenges in the Ethiopian Coffee Sector

According to the USDA Foreign Agricultural Service, coffee is Ethiopia's main export and is crucial to the nation's economy. The coffee sector supports the livelihoods of more than 15 million people, primarily smallholder farmers. This figure encompasses those directly involved in coffee cultivation and individuals engaged in processing, transportation, and other associated activities within the supply chain. The significant reliance on coffee underscores its importance in sustaining Ethiopia's rural economy and highlights the extensive network of people contributing to this vital sector.

Despite the rich history and high-quality produce, the sector faces challenges such as market unpredictability, local competition, and regulatory constraints. Moreover, the reliance on traditional methods for data management, such as using Excel for over half a million farmers, underscores the need for a digital overhaul.

OCFCU, servicing over 550,000 coffee farmers, stands as a beacon of cooperative strength, representing the collective efforts of individual farmers. Founded in 1999, OCFCU follows the guiding principles of the International Cooperative Alliance and Fairtrade, ensuring that 70% of its net profit is reinvested into cooperatives and farmers.

Phase 1 Completion: Building the Foundation for Digital Excellence

Each client journey is unique, and as we uncover the specific needs within the value chain, the path forward becomes clearer. OCFCU's journey started with the typical entry points: registering the farmers and customising the AgUnity Co-op Manager to meet local business requirements, including enhanced certificate management.

We are happy to report the successful completion of Phase 1 of the Union and Cooperatives Management Digital Solution Development project, establishing a solid foundation for extensive digital transformation in Phase 2.

???Key Achievements:

• Digitisation of Farmer Records: Successfully digitised records for over 40,000 farmers, improving the accuracy and accessibility of vital information.
• Comprehensive Training Programs: We facilitated extensive sessions that concentrated on using the new web-based system and explaining the reasoning behind digitalisation. These trainings provided OCFCU's trainers with the necessary tools and context for lasting impact, empowering the cooperative to manage its processes independently once the digital system is implemented.
• Strategic Roadmap Development: Providing strategic guidance to OCFCU to craft a comprehensive roadmap highlighting the cooperative's current digital accomplishments and future ambitions. This roadmap is now instrumental in our preparation for upcoming funding proposals, ensuring growth and sustainability.

Results and Impact: Transforming the Cooperative

The success of Phase 1 has been echoed in the testimonials from OCFCU's leadership. Dejene Dadi expressed profound appreciation for the tailored solutions and the empowerment they have brought to their Union, which services over 550,000 coffee farmers in Ethiopia.

Dejene Dadi, General Manager of OCFCU:

"Working with AgUnity is very important to us. Just imagine handling the data of 557,186 coffee farmers in Excel. Now, we have already consolidated all these databases. It makes our work easy. We are just focusing on our workers. So for us, really, it is a life-changing project."

??? What the testimonial video here: https://youtu.be/C-YjMAS2Imw

The Results:

• Significant improvements in data accuracy and accessibility, contributing to more informed decision-making and streamlined processes.
• Enhanced transparency and trust within the cooperative and with external stakeholders.
• Successful completion of Phase 1 sets the stage for broader digital empowerment and economic growth in the region.

The Future is Digital

Transitioning from paper-based and Excel systems to digital platforms is intricate and complex, especially when managing large volumes of data from rural regions. This shift requires effective change management practices to ensure a smooth process.

AgUnity has been at the forefront of this digital transformation for the past eight years. Our hands-on approach, working directly with farmers, cooperatives, and unions, has equipped us with a deep understanding of their daily challenges and the potential of digital solutions to address them.

Looking Ahead: Phase 2 - Scaling Up and Enhancing Capabilities

With Phase 1 laying a robust foundation, Phase 2 aims to expand the impact. Scaling to more cooperatives, we aim to onboard an additional 120+ cooperatives, incorporating crucial GPS data for precise tracking and EUDR compliance.

Key Objectives for Phase 2:

• Scaling to More Cooperatives:?We aim to onboard the next 120+ cooperatives, incorporating crucial GPS data for precise tracking and EUDR compliance.
• Union & Co-op Self-Management: Empower OCFCU to handle user and organisation management, bulk uploads of members, and manage offline data collection, including GPS location mapping and CS3D-related data collection.
• Mobile Data Collection: Customise the member management and collect data from farmers for these additional cooperatives by customising our ‘Field Apps.’ designed for remote data collection. This ensures the workflow is optimised for field conditions.

• Training & Support: Deliver comprehensive training to cooperative agents through a localised program, complete with support materials and videos in the local language, complemented by dedicated on-site assistance. This phase will emphasise deploying resources that can drive and support the rollout across numerous cooperatives.

Join Us on This Digital Expedition

AgUnity collaborates with cooperatives globally to digitise agricultural practices across different countries and commodities. We welcome you to join us on this transformative expedition, a mission to seamlessly blend technology and tradition to drive growth and prosperity in the agricultural sector.

Harnessing the power of digital transformation, we are dedicated to creating a meaningful impact on farmers worldwide. Join us in this initiative—be part of a future where innovation and practicality work together, strengthening smallholder farmers and transforming industries.

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?? www.agunity.com/solutions

For more updates and to be a part of this journey, connect with us on LinkedIn and stay tuned for further developments.

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Details:

?? Date: Jun 13, 2024

?? Time: 3pm EAT

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