Mozambique has great agricultural potential but small-scale farming accounts for most employment and production. IKURU is a trading company that works with over 20,000 small-scale farmers, primarily in the Nampula region. It purchases crops from farmers and sells them locally and internationally, providing services like processing, certification, and input distribution. The goal of the joint cashew partnership between IKURU, Norges Vel, and Brynild Gruppen is to improve incomes for farmers by increasing cashew production and building strong farmer cooperatives, while also increasing profits for all partners through expanded processing, marketing, and sales of cashew in Scandinavian markets.

1. IKURU
Bondens vei fra råvareleverandør til (del)eier
IKURU farmers: from commodity suppliers to ownership

2. A commodity trading business where the
producers are the owners

3. Mozambique in a nut shell
Mozambique is in southeast Africa, has a total area of 801,590 km2
The coastline of the country, spans 2,470 kilometers along the entire eastern frontier, borders the Indian Ocean.
Annual Gross Domestic Product (GDP) growth rate 6,5%
Official language is PORTUGUESE
Main sector of employment: small scale farming, agri processing (44% of GDP)
Increasing importance: industry (29% of GDP), service (27% of GDP) mining and soon oil and gas northern coast

4. 2 min film from Norges Vels Mozambique program (Aftenposten TV 2014)
http://www.aftenposten.no/fakta/innsikt/Eventyr-i-FNs-and-7473015.html

5. IKURU today
•Is a Mozambican Agricultural commodity and input trading company
•Registered as a Limited Company in 2003 (Cooperative structure not possible in 2003)
•We take our members’ produce to local, regional and international markets
•Annual sales growth of 25%
•Annual trading volume increased by 20%
•20,000 members - 40% women
•USD 1,300,000 annual turn over

6. Bakgrunn IKURU - Norges Vel i Mosambik
•Mosambik har et stort landbrukspotensiale - svakt organisert
•Kun 12% av landbruksarealet i produksjon
•Kun 50% av maten i Mosambik er egen produksjon Langsiktighet skaper resultater - Norad støtten til Norges Vel gjennom 12 år la grunnlaget for cashew satsningen
•IKURU er nøkkelen til å nå bøndene i Nampula regionen
•Delvis bonde-eid bedrift som produserer såkorn
•Kjøper, renser, selger - markedsledd for bøndene
•554 farmer associations
•Ny samvirkelov – Bønder må være organisert
•AMPCM skal løfte de 29 foraene til å bli aktive kooperativer frem til 2018 (Fora = IKURU eiere)
•IKURU er nå restrukturert og klar for ny vekst
•Egenkapital positiv – ny forretningsplan 2015-20
•Kapital til å kjøpe fra bonden er på plass Bilde fra såkornrenseriet åpnet januar 2014

7. IKURU Shareholders 2014 Important note: Norges Vel is shareholder on behalf of the farmers and will transfer its ownership in 3-5 years to functional coops and farmer organizations
Gapi 44 %
Norges Vel 44 %
28 Farmer Groups 12 %
% of shares

9. IKURU Services & Products
Purchasing
Processing
Packing
Certification
Seed production/ processing/ packing
Technical assistance
Input distribution (purchase and re-sale)
Main crops:
Sesame
Peanuts
Cashew nuts
Beans
Soybeans

10. Cooperative Development Unit (will become an independent NGO in 2015)
•Design projects to assist the IKURU member in improving productivity and market access;
•Help associations build themselves with strong cooperative principles;
•Provide capacity building trainings at the farmers level;
•Link the Cooperatives with the international e national market;
•Introduction of technology through irrigation systems, mechanization and good agriculture practices (Conservation farming)

11. Trading Unit
•Buy grains from farmers
•Transport
•Sale locally and in the international markets;
•Process (clean, pack and export)
•An average of 1000 tons are processed and sold a year;
•Over 600,000 USD a year goes to the hands of 5,000 farmers ;
•Capacity to clean and pack over 3000 tons per year

12. Seed Unit
•Seed production
•Contract with the seed producers;
•Sales of seed and other inputs (fertilizers, mechanical tools)
•Seed certification
•Processing of seeds (cleaning, treating and packing)
•Capacity to process 2000 tons of seed per year
•Sales 250 tons of seed per year benefiting directly and indirectly over 10,000 farmers

13. Positive outlook for growth
0
200000
400000
600000
800000
1000000
1200000
1400000
2010
2011
2012
2013
2 014
887 000
1 400 000
554 316
760 000
1 300 000
Year
Sales in USD

14. The Cooperation goals of the CASHEW partnership is to address clear market gaps and provide a ‘win-win’ scenario for all partners
Farmers
Receive an advance cash from IKURU
Supply quality Raw Cashew Nuts
IKURU/ Norges Vel
Purchases from the farmers process and exports
Brynild Gruppen (Norway)
Purchases from IKURU processes sales in Scandanavia Market

15. Each partner brings unique value to Joint Company: goal to transform cashew value chain, increase profits for all
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•Increase volumes sourced from farmers and through IKURU
•Increase income, ensure long-term consistency, improve livelihoods
•New volumes increase processing potential
•Leverage investment to increase capacity
•Improve margins through higher end prices
•BG secures long- term, high-quality supply, improves product branding in Europe
•Additional Euro- based marketing entity to ensure price premium and effective sales of increased volumes
•Norfund receives financial and social returns through investment
•Norges Vel enables wide social improvements in Mozambique
Production
Processing
Marketing & buying
Equity & support
Partners
Opportunities
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3
Farmers Coops
4
Additional regional nut company?

16. Brynild Gruppen Role
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Second-level processing at existing state-of-the-art facility in Norway
•Process near target markets to minimizes shelf-life risks & shipping constraints
•For every KG of cashew kernel purchased from IKURU, BG gives an additional 0.35 USD to be converted as a development fund
•The kernels are sold in Scandinavian markets with the origin of the kernels stamp on the bags
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Cashew raw kernels
Cashew nuts in bag

17. Use of the development Fund
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New crop varieties
•Introduce new variety of higher yielding cashew trees to farmer
•Train farmers on maintaining new cashew tree variety to produce up to 12 kg/tree
Tree health
•Facilitate farmers’ access to seedlings to replenish aged trees
•Train farmers to correctly spray crops to boost tree health & longevity
Build strong Coops
•With members of IKURU network
…leading to long-term benefits for JC
IKURU invests in farmers today…
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Facilitate IKURU growth
Capacity building
Technical expertise

18. Treplanting – Kinderegget vi har sett etter…
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Nye trær nødvendig
•INCAJU forsker på cashew i Nampula
•Nye cashew trær produserer opp til 12 kg per tre + epler
Vedlikehold
•“Unge” trær må beskjæres
•Gamle trær må erstattes
•Med rette insentiver vil bønder ta vare på og plante mer
Bygge sterke cashew Kooperativer
•IKURU har 20 000 bønder i nettverket
•Et massivt treplanting program kan starte med IKURU men inkludere alle
Treplanting i Nampula
Bygge kapasitet hos bønder (organisering)
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3
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Co2 binding
Økte inntekter til bøndene
Gjennoppbygnig av en sektor - store eksport inntekter

19. 18
Cashew from Mozambique is taking lead in the new natural nut category of Norwegian market leader

20. The Joint Company’s goal is to address clear market gaps and provide a ‘win-win’ scenario for all partners
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Global market has large demand for African cashews; offers higher prices
International markets offer premium pricing for African cashew, since current demand is far below supply; trend expected to continue long-term
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Mozambique production potential unmet, despite market size
Large potential for local production, but logistics are poor and yields are multiples below other frontier markets (e.g. Vietnam)
Local processing is a bottleneck; requires patient long-term expansion capital
Condor requires investment to expand capacity and efficiency; could quickly realize greater output, since production and market potential already exist
Local farmers need support; JC is opportunity to create sustainable impact
Opportunity to increase farmer income, inject assistance to support long- term sustainable investment in livelihoods
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Lack of transparency often stymies flows of development capital in to Africa
Free information flow across all interfaces between Joint Company entities ensures full transparency and makes company more attractive to soft money