Sprinkler on a field

Focus Topic: Sustainable Agriculture And Food SecurityProducing food sustainably. Ensuring long-term food security.

Climate change and environmental degradation are already having a severe impact on agricultural production - and this is happening worldwide. Companies in the agriculture and food sector are facing the challenge of stabilising their supply chains while also paying attention to their customers’ growing demand for food produced under socially just and environmentally friendly conditions. Developing countries and emerging economies are affected in a double sense: crop yields, process know-how and processing levels are often lower, while many more people depend directly on agriculture for their livelihoods. Enhancing efficiency, environmental and social sustainability, and strengthening climate resilience are therefore particularly pressing issues in these countries.

Therefore, the German Federal Ministry for Economic Cooperation and Development (BMZ) supports business initiatives that make a quantifiable contribution to sustainable agricultural transformation in developing countries and emerging economies, and consequently to a more secure and sustainable food supply.

330
Projects
Worldwide
More than
73
Project countries
EUR
319
million
Project volume – of which 45% public-sector contribution
Basis: develoPPP projects related to food security in the period 01/2016 - 01/2022

Long-term restructuring of food production and stabilisation of local and global agricultural supply chains is an urgent and complex task. Agriculture and food companies can start by addressing different aspects. 

  • Long-term increase in crop yield
    Crop yield in many developing countries and emerging economies is significantly lower than the yield in other parts of the world. This means low farm income, product shortages and fluctuating product quality in domestic and export markets. Food insecurity and environmental degradation, caused by uncontrolled area expansion for instance, are other severe consequences. The starting points for projects supported through develoPPP include training in efficient farming, prevention of post-harvest losses and the promotion of stable relations between producers and procurement companies.
  • Climate resilience and environmental protection
    A lack of awareness of sustainable farming practices such as resource friendly irrigation or diversified farming results not only in low yields. It also poses a serious risk to the ecosystem – local as well as global. Advancing climate change is exacerbating these problems and makes rapid adaptation to changing weather and farming conditions a necessity. Some of the ways in which projects eligible for develoPPP funding can contribute is by piloting modern technologies and by offering training programmes on maintaining soil fertility or on sustainable use of agricultural land.
  • International standards and certification
    The demand for certified quality foods is increasing worldwide. However, meeting international standards for food safety, plant health or occupational safety, is often a major hurdle for producers in developing countries and emerging economies who seek to market and export their products. Importers for their part have difficulty in meeting the growing demand for quality products that have been sustainably produced. Local advisory services for quality management, preparing for certification and meeting international standards are approaches that are applied in the context of develoPPP projects.
  • Digital innovation
    The digitalisation of processes in the agriculture sector offers considerable potential – in terms of both business and development. For example, digital solutions can improve product traceability, making the supply chain more transparent and verifiable. The use of seeds and fertiliser can be digitally optimised, access to financing options can be created, and direct sales to local buyers can be organised. Digital projects supported through develoPPP in the agriculture sector start by addressing many of these very issues.
Man stands in a field (Nigeria)

WEST AFRICA: Training in efficient use of fertilisers

Agriculture in some West African countries remains below its potential, one of the reasons being a lack of awareness of modern farming practices. Indorama Eleme Fertilizer & Chemicals Limited (IFL) has therefore teamed up with DEG Impulse gGmbH to develop a programme to help farmers in Mali, Nigeria and Senegal enhance their knowledge. The programme includes training and advice on the correct handling of fertilisers, creation of model farms, and free soil sample analysis. Many of the over 250,000 trained farmers have been able to boost their yield while IFL has benefited from an increase in demand for fertilisers.

People working on a pipe (Peru)

PERU: Reliable water supply with the help of traditional water harvesting systems

Intensive water use and the impact of climate change are putting pressure on the limited water resources in the Lima metropolitan area. Under a joint project, Union de Cervecerías Peruanas Backus y Johnston S.A.A (‘Backus’), a Peruvian drinks manufacturer, and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH are seeking to rectify the situation with the help of traditional water harvesting systems in the highlands of Lima. During the rainy season, up to 3.25 million cubic metres of surplus water per year will be stored and will improve the region’s water supply, benefiting not only the local population but also Backus and other companies that depend on large amounts of water.
 

Bag with corn (Burkina Faso)

BURKINA FASO: Promoting local value chains for maize

Maize is one of the most important cereals produced in Burkina Faso. ADS Burkina and DEG Impulse gGmbH seek to support small farmers in significantly boosting their productivity and income. To achieve this goal, ADS makes farmers aware of more efficient means of production, grants loans for up to 4,500 farmers, and sells seeds, fertiliser and pesticides.  Producers benefit from higher production volumes, which help meet local needs, and from the fact that ADS buys 70 per cent of the yield at stable prices above market level.
 

Macadamia nuts in hands (Rwanda)

RWANDA: Employment prospects in the production of macadamia nuts

Together with GIZ, the trading companies Glaskiste GmbH and fairfood Freiburg GmbH are creating employment opportunities in the value chain for macadamia nuts in Rwanda. They are promoting a processing plant belonging to the company GorillaNuts, which provides more than 150 farmers a guaranteed market for their yield. The producers are also being trained in organic farming and are involved in developing a system for organic certification. In order to increase the market share of organic macadamia nuts from Rwanda in the German retail market and thus to promote employment in Rwanda, the nuts are sold in Glaskiste’s package-free stores in Germany.
 

Two people holding a bag with pineapple (Nigeria)

NIGERIA: More affordable food prices and higher sales thanks to e-commerce

Population growth and urbanisation are putting increasing pressure on Nigeria’s agricultural capacity, resulting in higher food prices, among other things. In cooperation with DEG Impulse gGmbH, the e-commerce platform PricePally counters this development by purchasing agricultural products on the basis of a demand forecast and then sells them at moderate prices. Buyers thus save up to 25 per cent on the market price while local producers gain access to urban markets. With the help of develoPPP Ventures funding, PricePally has been able to develop its services further and to finance a training programme for university graduates.
 

Woman working at a loom

develoPPP Classic

develoPPP Classic is aimed at medium-sized and large companies that want to invest sustainably in a developing or emerging country and expand their operational activities locally. Suitable projects receive technical and financial support of up to two million euros in public funding.

Young employees in a discussion during a business meeting

develoPPP Ventures

develoPPP Ventures is aimed at young companies that are already active with an innovative business model in a developing or emerging country and are ready to take the next step. Within the framework of a matching funds model, a public growth investment of up to 100,000 euros is possible.

Carolin Welzel
Carolin Welzel Senior Consultant Agency for Business & Economic Development
Hans-Joachim Hebgen
Hans-Joachim Hebgen Senior Consultant Agency for Business & Economic Development
Daniel Thomann
Daniel Thomann Head of Programme DEG Impulse gGmbH
Kathinka Kurz
Kathinka Kurz Head of Programme Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH