1. NEW BUSSINESS
MODEL
MECIS ECONOMIC JUSTICE COMMUNITY 0F PRACTICE
LEARNING WORKSHOP
RAMILA, AZERBAIJAN MARCH 17-20, 2014

2. Page 2
LINKING SMALLHOLDER
FARMERS IN GLOBAL SUPPLY
CHAINS- SUNRISE PROJECT IN
AZERBAIJAN
BENEFICIARY NUMBERS: (300
households)1500 persons: 51% women
LOCATION: Barda, Tartar, Aghdam (10
villages)
STAFF AND PARTNER NAMES: Oxfam staff
PROJECT DURATION: 3 years
YEAR OF IMPLEMENTATION: 2010-2013

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SECTION I: CONTEXT ANALYSIS
• Borders – Iran, Russia, Turkey, the
Caspian Sea, Armenia, Georgia
• 1848-49 - World's first oil well
• 1879 - Nobel brothers
• 1918 - Independence
• 1920 - Red Army
• 1991 - Independence
• 1988 – Mountainous Garabagh
• 1994 – Cease Fire
• 1994 – Contract of the Century
Oil Boom vs Agricultural Decline
• Inefficient mangement system
• Obsolete agricultural methods
knowledge
• sustainable market and income
constraint

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SECTION II: Planned Intervention
• Processor sources directly from
smallholder farmer co-ops for initial
Unilever volume requirements
• Local market programme in 10 villages
and neighbouring IDP settlements
• Waged workers benefit through work on
improved labour standards
• Extension services delivered to the
wider community, not just the
smallholders supplying UL
• Evidence from this country project and
impact will inform wider relationship
A Catalyst
Unilever Demand
for Vegetables
Parallel Markets
Local Market development,
driven by market access and
improved agronomy
An Example
Potential for wider influence of
agricultural policy within Azerbaijan,
and to showcase a working
smallholder model globally

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WHAT DID YOU DO?
• 2010 – Azerbaijan selected
• 2010 – 3 farmers - first trial plots
• Spring 2011 – WHITE ONIONS
• Sep 2011 – 5 farmers - trial – Agrotara - Unilever.
• June 2012 – 4 times more expensive
• June 2012 – Strategy revisited for Sunrise Azerbaijan
• Sep 2012 –Good Agricultural Practices - yields and
dry matter- TRIPLED
• Dec 2012 – Revision of the strategy
• October Spring 2013 – Unilever exit as lead firm

6. Page 6
SECTION III: STAKEHOLDER
ANALYSIS
• UNILEVER - top
corporate/farmers’ trust
• OXFAM GB – farmer’s trust
• CIIC – Unilever as the key driver
• AGROTARA – CIIC shareholder
• AKTIVTA – long term partner
• FARMERS – reliance on
credibility
• GOVERNMENT – least
engagement

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SECTION IV: WHAT DID YOU
ACHIEVE?
FARMERS’ knowledge
• Best agricultural practices
• New precision seeders
• Working in groups
• Women involvement in groups
• Understanding of value chain
• Failure of expectations and trust
AKTIVTA - Advanced knowledge on agricultural practices
AGROTARA - Upgraded management and production systems, new business vision
AGRO-LEASING – new machinery in the region
INPUT SECTOR – State programme on local seed production
LEGISLATION – cooperative law (policy briefs)
PRESIDENT – Decree on agricultural strategy (external mission)
OXFAM GB – work with private sector, member of working group for strategy development
Visual practice of
applying new
technologies and
increasing yield

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SECTION V: WHAT WORKED WELL
AND WHAT DIDN’T?
Successful:
• Local capacity building
Unsuccessful:
• Crop selection - no existing domestic markets
• Regulation of relations (contracts)
Success factors:
• Strong desire by local farmers;
• Unilever existence lead firm
• Oxfam GB as facilitator
Constraints
• Processor capacity insufficient;
• Miscalculations;
• Little time for such ambitious target;
• High risk of dependence on sole market;

9. Page 9
SECTION VI: LEARNING AND
RECOMMENDATIONS
What differently:
• State stakeholders from the beginning;
• Smallholders from the initial phase;
• No new crop with no local market;
• Roles and responsibilities clear cut to ALL;
Advise
• Realistic commercial assessment
• Feasibility before expectations
• Invest in (capacity, processing facility, seeds) and then try and decide
• Larger time frame – Don’t expect to create sustainable systems change within a
short period of time
• Alternative markets in particular domestic;