1. 07/25/11 PRESENTATION AT AGRIC. SECTOR JOINT REVIEW NRGP EXPERIENCE GRAND MENSVIC HOTEL ACCRA JUNE 22-24, 2011 BY: PASCHAL B. DERE VALUE CHAIN SPECIALIST Paschal B. Dere VCS-NRGP

2. 07/25/11 Paschal B. Dere VCS-NRGP

3. 07/25/11 Paschal B. Dere VCS-NRGP

5. Is farmer/FBO creditworthy? B/FI Advises Farmer/PO on how to improve credit worthiness Farmer/PO Assesses her credit needs & puts application to Banks/FIs Pre-season planning & Interface meeting b/n Marketing Company/Input supplier/Bank/FI-& Farmers/PO to confirm market for commodity (tentative px formula/qty/qly) Bank/FI vets Farmer/PO Farmer for credit worthiness & diligence tests Bank/FI does final diligence tests and approves loan No Farmer/PO acts on B/FI Advice Yes Farmer/FBO does final reading and understanding of loan conditions & terms of payment and contracts loan Farmers/FBOs authorize Bank/FI to pay suppliers based on countersigned Invoices. Farmer/FBO contracts services/goods from suppliers STAGE 1. 07/25/11 Paschal B. Dere VCS-NRGP

6. Farmer/PO comply with GAP recommendations from MoFA & FAs Pre-season Planning & Interface meeting b/n Marketing Company/Input supplier/Bank/FI-& Farmers At harvest f armer/FBO delivers produce to pre-designated buyer with whom contract has been signed at pre-season planning session (Processor, Commodity Dealer, Warehouse Receipt Operator, Cold Chain Operator etc) The pre-designated buyer pays off farmer indebtedness (Joint Cheque farmer or FBO /Bank) to the Bank, using monetary equivalent of part of crop delivered. Balance of crop reserved for farmer to decide on when , how much and to whom to sell STAGE 2 Has Farmer/FBO successfully repaid loan? No Study and understand reason(s) for loan default and take appropriate action Yes 07/25/11 Paschal B. Dere VCS-NRGP

7. 07/25/11 Paschal B. Dere VCS-NRGP Bank /FI Quantum of Funds Disbursed No of FBOs No of Farmers District Location of Farmers Nandom Rural Bank 10,582.00 7 89 Lawra/Lambusie Lawra Rural Bank 14,766.00 9 96 Lawra Sonzelle Rural Bank 10,125.00 9 95 Jirapa/Lambussie Sissala Rural Bank 94,991.00 24 316 Sissala West and East Builsa Rural Bank 55,352.00 27 120 Builsa BESSFA 14,750.00 15 206 Garu-Tempane Yapra Rural Bank 4,611.00 3 24 Pru Kintampo Rural Bank 6,644.00 2 24 Kintampo South AgDB 841,640.00 66 1058 Wa Muni/Bawku W/Yendi/Tamale metro Total 1,053,461.00 162 2028

12. 3. THE NRGP COMMODITY VALUE CHAIN BUSINESS MODELS DEVELOPED TO IMPROVE THE SMALLHOLDER FARMER INCOMES Special Purpose Vehicles - Nucleus / Best Farmers LEAD FIRM CONTRACT FARMING SFMC Ltd (Aggregator) NUCLEUSE FARMER (Kharma Farms, Bogu) VEPEAG A. Striving for Volume (3) B. Striving for Better Price (1) WAREHOUSE RECEIPTS & INVENTORY CREDIT (YAPRA RURAL BANK & PRU-SENE FBOs) PROCESSORS (VESTOR OILS, GHANA NUTS) Small s c ale farmers/ FBOs PROCESSORS (VESTOR OILS, GHANA NUTS) Small s c ale farmers/ FBOs EXPORT, DOMESTIC HIGH END SHOPS Small s c ale farmers/ FBOs

16. BUSINESS MODEL No.FBOs/ Farmers Loan Req’d (GHC) Acres Source of Funds Expected Repayment LEAD FIRM FBOs 899 Farmers 3,528,435.80 29,846 RCBs, ADB, STANBIC 100% SPECIAL PURPOSE VEHICLES (KHAMA Farms, BOGU S&F Assoc Farmers K- 930 B-700 Kharma-138,000 WC,-55,000EQ Bogu-148,000WC, 22,000EQ Approx. K-2000 B-1500 STANBIC 100% CONTRACT FARMING (VEPEAG) 5 FBOs Farmers 60 1,865,000 60 STANBIC 100%

17. FBOs/Farmers Banks/FNGOs Warehouse Receipt Storage loan Crop delivery Receipt 3.4. 2011 Pilot WR Model ( Expansion of Inventory Credit Scheme) STAKE 1: INTAKE

18. FBOs/Farmers Warehouse Banks/FNGOs 3.4. 2011 Pilot WR Model STAGE 2: OFF-LOADING Repayment Savings account Withdrawals as needed

19. Farmers FBO identified Pre-season meetings concluded IPB Contracts signed DZVCC established Facilitation Agencies Recruited STAGE CBP done Industrial crops Yes Yes Draft Done fine-tuning in progress Yes Yes Ongoing No Fruits & Vegetables Yes Yes but timed Draft Done fine-tuning in progress No No No No Women Crops Yes Yes Draft Done fine-tuning in progress Yes Yes Ongoing No Animals No Contract at review stage Draft Done fine-tuning in progress No No No NO Certified Seed Yes No No No No NO

20. 07/25/11 Paschal B. Dere VCS-NRGP

21. 07/25/11 Paschal B. Dere VCS-NRGP