Ci Small Scale Farmer's Coffee Project

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Income & Food Security via Coffee Value Chain

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Small Scale Farmer Coffee Export Project Private Bag X341, Post Dot Net, Crossroads, Lilongwe, Malawi Cell: +265 999 664 818 +265 881 164 973 e-Mail: convergentintl@yahoo.com laricoTRUST@gmail.com     Convergent International (Ci) Rumphi Dis t ric t , Malawi

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& Income & Food Security Private Sector Engagement Coffee Value Chain Augmentation SMME Incubation “Climate-Smart” Agri-Business Small Scale Farmer Coffee Export Project An Equitable Partnership

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Small Scale Farmer Coffee Export Project Rumphi Dis t ric t , Malawi &

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We Recognise “Faces” in the “Crowd” &

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& Gender Balance Youth & Elderly Gender Balance Income, Food & Nutrition Security We “Balance” our interventions to “Maximise” our impact

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& Initial Geographical Area Zone District Chigwere Nkhata Bay Highlands, Livingstonia; Phoka highlands, Rumphi Khanga Hills Approximately 300 small-scale farmers Mphompha Rumphi Ntchena Chena Approximately 250-350 smallholder farmers

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Small Scale Farmer Coffee Export Project Cost & Income Distribution Year One Cost, Expenditure & Income (Percentages) & Capital Investment USD Equipment (CAPEX) 25,850.00 Inputs 19,500.00 Vehicles 16,000.00 Total 61,350.00

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Schedule Four – Trust Fund Agreement (Sections ONE & TWO) We agree to contribute USD 0.10 (United States Dollars Zero Point One Zero), or 10 (ten) American cents per kilogram of all parchment sold, to the trust fund, as “equity “or “capital formation” contribution . This will allow the small-scale farmers to : Have access to inputs financing – fertiliser; Have access to micro-finance for social commitments; Wedding Contributions; Funeral Contributions; Other Social Demands: __________________________(Comment) School Fees Medical Costs. Small, Micro & Medium Enterprise Development & Loans ; The TRUSTEES will explore CERTIFICATION Considerations: i.e. The RAINBOW ALLIANCE Farmer “TRUST FUND” Implication &

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 Payment Terms (FOT & FCR*) FOT (Free on Truck) Loading at sellers' premises - Mzuzu S - Local Inland transport (from the named place) - Mzuzu B - Buyer Trade documentation at origin - Malawi S - Local Customs clearance at origin - Malawi S - Local Export charges - Malawi S - Local Loading terminal handling charges (THC) – Dar-es-Salaam B - Buyer Ocean freight - Dar B - Buyer Unloading terminal handling charges (THC) – European Port B - Buyer Phytosanitary Certificate by the Ministry of Agriculture and Irrigation. Certificate of Origin Exchange Control – CD1 Form The Commercial Invoice * FCR – Forwarders’ Cargo Receipt Delivery Schedule, Freight Terms June July Aug Sept Oct KG (Green Bean) 20,000 20,000 20,000 40,000 40,000 &

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2014 – Activity Gantt Chart Month Activity/Description March April May June July Aug Sep Oct                     Establish 1. Farmer Groups; Quantity/Quality Contracts;                 2. Establish Banking Facilities, Farmer Accounts                 3. Logistics - Buying Centres, Transport,                 4. Warehousing/Processing Centre: (FOT) and                 5. Quality Assurance/Grading/Sorting/Training Facilities                 Farm Activities 1. Weeding, Spraying - to harvest;                 2. Provide Hand Pulpers; Drying Racks                 3. Pulping. Drying               QA Quality Assurance - Cherries                 1. Parchment Collection,                 QA Quality Assurance - Parchment                 Processing 1. Primary Processing - Hulling; 2. Sorting, Grading, 3. Bagging;                 QA Quality Assurance - Green Beans                 Export facilitation 1. Trade Documentation; - Phytosanitary Certificate ; - Certificate of Origin, - Exchange Control – CD1 Form, - The Commercial Invoice                 Sales By container; per month       20 20 20 40 40 Preparation - 2015 1. Provide/Deliver Inputs                 2. Establish Nurseries   TBA TBA                               &

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Value chain links the steps the coffee takes from the farmer to the consumer. It may include: Research and Development , Technology, Input – treelings, seed; fertiliser; extension services, and Finance . We also ensure projects are: Gender inclusive , and address: Quality – cultivation, irrigation, pre-and post-harvesting (Certification) Climate change – mitigation, adaptation, Value Chain Augmentation– cultivation, primary, secondary processing, and Market-making The farmer combines these resources with Land , Labour Local Knowledge, Skills & Expertise In our value chain approach and marketing system, farmers are linked to consumers' needs, and similarly , through flows of information and products, consumers are linked to the needs of farmers. Under this approach, and through continuous innovation, the returns to farmers are increased and livelihoods enhanced. Rather than focusing profits on one or two links, players at all levels of the value chain benefit . An integral component of this approach is the agricultural supply chain, with a focus on continuity of supply and a commitment to consistent quality &

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& Income & Food Security

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