A long-term partnership
The Union des Coopératives Lanzan’ny Sambirano (UCLS) is a Producers’ Organization (PO) for cocoa beans located in Madagascar around the Sambirano valley near Ambanja. It was created in 2010 by an association, ADAPS[i], whose aim was to structure agricultural value chains. The UCLS was therefore originally institutionalized by a local development association. SIDI’s partnership manager in Madagascar, with her knowledge of the country and its stakeholders (NGOs from the North, in particular AFDI, the French NGO for the Development of the Industrial Sector), was responsible for the project.[ii]), came into contact with UCLS at a time when SIDI was seeking to strengthen its commitment to agriculture. UCLS and Ethiquable[iii] also wanted to commit to a long-term business relationship.
Ups and downs, but a continuing partnership
SIDI’s first financing operation took place in 2011, with the aim of pre-financing UCLS member cooperatives to enable them to acquire certified organic cocoa beans for export (12.5 tonnes, equivalent to 1/2 “standard” container). Today, SIDI financing enables UCLS to export almost 250 tonnes of certified organic cocoa beans a year. This partnership has not been linear, as UCLS has suffered slowdowns in its activity and misappropriations, which led to the suspension of SIDI funding in 2016. However, SIDI, along with other players, continued to support the Union by providing assistance, in particular in strengthening the organization’s accounting function.
Results today
Beyond the quantitative results, with volumes rising from 12.5 tonnes of cocoa exported in 2011 to almost 250 tonnes today, UCLS has made progress in its organization, reach and member loyalty. It has grown from 6 cooperatives at the start of its activity to almost 20 today, with between 300 and 400 producers depending on the year, who supply it with increasing quantities of cocoa. The relationship is established and the trust present so that growers regularly supply their cooperatives (instead of selling to others).
Despite the difficulties mentioned above, the organization has adapted to the needs of its members. It has succeeded in structuring 20 small cooperatives and supported them in the process of certification by Union agricultural agents. Despite the state of the infrastructure, UCLS manages to send containers of cocoa on a regular basis to meet its annual contracts with Ethiquable and Valrhona.[iv]. Today, the UCLS is looking forward to the collection campaigns with a little more serenity. Its campaign financing resources are more diversified (self-financing, SIDI financing, buyer’s advance, supplier’s credit) and larger.
And challenges
Despite the situation linked to the COVID-19 pandemic, SIDI and UCLS intend to continue working together. SIDI’s long-term approach makes it possible to tackle certain challenges, such as strengthening the structure’s administration without overburdening its processes and costs, increasing income for producers, integrating the smallest producers into cooperatives, and encouraging young people to take up cocoa farming.