Mid-term evaluation; Egypt : cooperative marketing project

Special evaluation covers the period 9/79-2/82 and is based on site visits, interviews, and document review. Despite a delayed and somewhat misguided start, the project is not without promise. The original project proposal, based on an unsolicited proposal by the Cooperative League of the U.S.A. (CLUSA), overestimated the Egyptian cooperative system's structural coherence, experience in managing credit programs, and ability to influence the market. When CLUSA realized that marketing objectives could not be met, it deemphasized marketing, farm data collection and analysis, and training activities, and focused on institution building. Consequently, and despite serious staffing problems, the UCS's ability to develop and execute marketing plans, though still inadequate, has been strengthened. Most UCS marketing activities have built on ongoing AMC programs, but UCS itself handled the exporting of approximately 10% of members' potato production in 1981-82, and was thus able to increase potato farmers' incomes; UCS plans to increase its role in exporting potatoes and other produce. Regarding credit, a revolving production fund is in place, but has been used at no more than 40% of capacity, partly because need for capital is no longer a major constraint to farmer production; there is no evidence of increased production due to the fund, however. The project has made some contribution to lowering farmers' production costs through UCS production of seed potatoes. Finally, planned World Bank funding of infrastructure for produce storage, handling, and processing has not been made available. Since project objectives remain realistic, it is recommended that the project be extended one year. Immediate action should be taken to: explore infrastructure financing by local village councils; design and implement a study/training program for UCS staff, including extensive short-term technical assistance; collect reliable farm survey data needed for project evaluation; and increase provision of production credit.