Agricultural Development and Value Chain Enhancement Project (ADVANCE) FY 2018 Annual Report: October 2017 - September 2018

The project aimed to ensure long-term impact by strengthening the Outgrower Business (OB) model, promoting buyer-sponsored outgrower models, and promoting financial inclusion through the Village Savings and Loans Association (VSLA). One of the key strategies to ensure sustainability of the OB model and service delivery was the establishment and/or strengthening of apex bodies and networks for OBs, Farmer-Based Enterprises (FBEs), and Farmer-Based Organizations (FBOs). Through the project's facilitation and targeted grants, the number of end buyers and agro-input firms working directly with OBs to set up demonstration plots increased, resulting in stronger win-win relationships. The OBs and FBEs increased the services they provide to smallholders, especially ploughing and post-harvest processing services compared with previous years. The OBs also continued to serve as the fulcrum for end buyer-sponsored outgrower schemes, which is proliferating beyond the project's direct interventions, indicating scalability and sustainability of the outgrower model. During FY 2018, the project facilitated $689,681 in loans to various actors, including smallholder farmers, buyers, processors, and OBs. These loans were disbursed to beneficiaries by Opportunity International, Sinapi Aba Savings and Loans Limited, Brong-Ahafo Catholic Cooperative for Social Development (BACCSOD), Bessfa Rural Bank, Bimbilla Community Cooperative Credit Union (BCCCU), Injaro Agricultural Capital Holdings Limited, and AV Ventures. The project exceeded its life of project target of $4,300,000 by 6% ($4,553,656). OBs made capital investments of $253,620 during the year to purchase tractors and other equipment, as well as processing plants by other actors. This brings the life of project result to $3,684,023 (92%) the target of $4,000,000. In addition to the capital investments, project beneficiaries (mostly OBs and end buyer firms) invested $1,498,698 (GHS6,747,439) in production inputs for their outgrowers during the reporting period. These results point to increasing value chain transactions and strengthened business relationships, thereby setting the businesses on the path of sustained growth and profitability. Field surveys conducted during the year to assess profitability of firms (as at end of the 2017 calendar year) that the project supports, showed that 76% (139) of the firms were profitable, and 48% (88) of them had increased their profit in 2017 compared to 2016. Together, these 88 firms made a total profit of $3,575,732 (GHS16,098,659) and average profit per firm is estimated as $40,633 (GHS182,939). The project facilitated the development of business associations and networks that will provide support to OBs and FBEs/FBOs, thereby strengthening business relationships and improving sustainability. The project also facilitated the establishment of apex bodies and networks for OBs, FBEs, and FBOs, which will ensure the sustainability of the OB model and service delivery.