Myanmar / Agricultural Cooperatives

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Myanmar. Formation to micro-entrepreneurship for farmers
People need money to attain their dreams, so we should save. Positive Planet gave us the right formula for savings, that is, setting aside before spending. Developing the habit of savings will help us in the future
U Lin Khaing
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Context

After the collapse of the Soviet Union, the distribution of Armenia land left hundreds of thousands of unprepared farmers unable to generate sufficient income to support their families. The farthest regions from Yerevan, where agriculture is the main source of income, face particular economic difficulties. In the mountainous areas, where farmland is limited, water resources and agricultural inputs are scarce, and technical know-how is lacking, the factors for socio-economic development are stacked against the farmers and their families. Most men leave their communities to earn extra revenue as seasonal workers in neighboring countries. This, however, is insufficient to provide for stable family living conditions, and the level of family income is often 50 to 60 % of the poverty line, estimated at 450 euros min. per month in rural areas.

Objectives

In this context Pernod Ricard, through its subsidiary Yerevan Brandy Company, contributes to the development of farmers in the regions of Tavush, Ararat and Armavir with the creation of 20 producers cooperatives. The goal of Positive Planet project, together with Pernod Ricard, is to improve living conditions of Armenian farmers and their family to effectively counteract their exodus. This shall be enabled through the acquisition of new equipment adapted to the fields, the renewal of aging plants, as well as through the implementation of technical trainings that will foster a better productivity on the fields and thus higher earnings for the producers.

Beneficiaries

Members of the agricultural cooperatives: 30 farmers x 20 cooperatives, making 600 farmers and their families, i.e. approximately 3,000 people altogether that will benefit from this project.

Implementation

The project has been launched in October, 2014.

  • By the end of 2015, 6 cooperatives were created.
  • The project consultants periodically provided technical assistance to the cooperatives’ members incooperative development and management, agricultural machinery maintenance, and financialmanagement & accounting.
  • Co-financing and assistance in the procurement of agricultural machinery: tractors, mist blowers and soilcultivators.

Impact

  • Positive Planet acts on three essential growth levers in order to increase field productivity: equipment, best practices sharing, and new rootstocks planting. The three levers are estimated to contribute to reaching a maximum global production growth of 42 % over 5 years.
  • This first year, cooperative members experienced a 19% increase in their production and their disposable income increased by 17% in average.

Perspectives

  • New cooperatives members in existing cooperatives: Aygehovit Cooperative; Paravaqar Cooperative; Varagavan / Tsirankut Cooperative (ongoing)
  • Development of new cooperatives : Aygedzor community; Chinari community (early 2016)
 

Partners

Strategic : Pernod Ricard

Operational : YBC / Fund for Armenian Relief