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 Agriculture :: Support Systems :: Activities
Activities listed on this page:
FAO-GTZ MicroBanking System
Improving rural banking services in Indonesia
Project on introduction of the FAO-GTZ MicroBanking System in Yemen
Asian Development Bank funded project on microfinance information technology systems in Timor-Leste
Training courses in support of the FAO-GTZ MicroBanking System
Afghanistan: Sustainable agricultural livelihoods in Eastern Hazarajat
Bangladesh: Sustainable livelihoods development of urban poor through improved urban and peri-urban agriculture systems
Philippines: Philippines-Australia technical support for agrarian reform and rural development
Afghanistan: Alternative agriculture livelihoods programme
Afghanistan: Rehabilitation of the sugar industry in Baglan
Farm business management schools
Project in Cambodia to empower vulnerable groups through training in village level food processing
"Smart Extrusion" conference and exhibition


FAO-GTZ MicroBanking System

FAO is the global centre for development, maintenance and support of the FAO-GTZ MicroBanking System, or MBWin. This Windows-based software is the successor to the DOS-based FAO MicroBanking System that has more than 1 400 users worldwide. MBWin, although relatively new, currently has more than 100 users in 13 countries, of which 9 are in Asia. The global centre employs eight experts who are responsible for supporting the users and for development of new features and facilities in the system. The MBWin programme is largely self-financed as users have to purchase a license to use the software in a production environment. For evaluation purposes, a demonstration system can be
downloaded here (about 140 MB) free of charge. Various licensing schemes cater to a range of institutions from small, single-office projects or non-governmental organizations to large branch networks of microfinance institutions or commercial and other types of banks. An electronic brochure with the system’s features and facilities can be downloaded here (about 3 MB).


The software covers a large number of financial products and services (loans, savings, current accounts, time deposits and share accounts). It has a general ledger module that produces profit and loss statements automatically on a real-time basis and the balance sheet at the end of the day or upon request. It has a powerful client module and reporting facilities. A multicurrency module is also available; branch connectivity facilities are currently under development.


Improving rural banking services in Indonesia

Project assistance for improving rural banking services is an example of capacity building in support of the FAO-GTZ MicroBanking System (MBWin). The project aims to train local Indonesian experts to install and support the MBWin system in rural banks (Bank Perkreditan Rakyat, or BPR). Two pilot BPRs were installed and their staff trained. The local experts have received local as well as international classroom and on-the-job training and one of the local experts has carried out an international assignment under FAO’s Technical Cooperation between Developing Countries (TCDC) programme. The project’s counterpart is Bank Indonesia (the Indonesian Central Bank), which participated to provide specifications for reporting formats and which is host of the project office. An institution or company, which will charge BPRs for the software and services provided, will be established to employ the local experts.


Project on introduction of the FAO-GTZ MicroBanking System in Yemen

The project has introduced the FAO-GTZ MicroBanking System (MBWin) in two branches of the Cooperative and Agriculture Credit Bank (CACB) in Yemen and will establish a management information system (MIS) in the head office. Branch automation and the head office-based MIS will vastly improve the speed, quality and quantity of information available for management to make decisions in the areas of loan appraisal, financial management, risk management, budgeting and planning. The project has also introduced proper accounting and audit practices in CACB and intends to reduce operating costs to a level that will allow the bank to become a financially sustainable, rural financial institution that can in future operate without government subsidies. Branch automation with MBWin will be the catalyst for the entire restructuring of CACB because the automation process will require major revision and streamlining of current practices and transaction processes within the bank.

As part of the project's activities, the MBWin software was translated into Arabic.
Asian Development Bank funded project on microfinance information technology systems in Timor-Leste

Within this project, FAO assisted with the establishment of the Instituição de Micro-Finanças de Timor-Leste (IMFTL) through technical assistance and training for the FAO-GTZ MicroBanking System (MBWin) and a head office-based management information system (MIS). The IMFTL engages in group-based microfinance, employing Grameen methodologies and also provides microfinance services to individuals. During the project, three branches were opened, more than 29 staff were trained, branch procedures and savings and loan products were designed and manuals prepared. Additional products can be added as required. The IMFTL mobilized more than US$1 million in savings within 15 months.


Training courses in support of the FAO-GTZ MicroBanking System

Quarterly training courses, with four to ten participants each, are conducted at the MBWin Global Support Centre in Bangkok. In 2004 two courses were conducted and in 2005 FAO will organize courses in May, August and November.


Afghanistan: Sustainable agricultural livelihoods in Eastern Hazarajat (SALEH)

The SALEH project aims to develop the capacity, opportunities and mechanisms necessary to achieve sustainable improvements in the agricultural livelihoods of the people of the Eastern Hazarajat. The project strengthens the institutional and human resource capacity in communities, local government agencies and non-governmental organizations; promotes food security and opportunities for income generation and employment through better resource management; and contributes to the scaling up of lessons learned and participatory planning at the province and district levels. The major outputs of the project include: increased capacity for community level action to improve agricultural livelihoods and resources management; improved capacity of government and non-governmental organizations to support community level action; and improved common property management, more productive and sustainable farming systems and the diversification of livelihoods.


Bangladesh: Sustainable livelihoods development of urban poor through improved urban and peri-urban agriculture (UPA) systems

This project is a fully integrated component of the UNDFP (UN-Habitat) Local Partnerships for Urban Poverty Alleviation Project (LPUPAP) for Bangladesh. The project is based on the LPUPAP's community planning approach that encourages poor urban groups (community development committees) to identify and manage appropriate UPA development activities. It is in a "pilot" or first phase, with methodologies and testing approaches being developed and will have much wider application over time in other urban areas. The project addresses the issues of inappropriate beneficiary and local support organization skills through the provision of short and long-term technical assistance that emphasizes the development of sustainable and replicable institutional and technical interventions. The major outputs of the project include: assessment of indigenous knowledge and skills and the identification of technical improvements in existing practices and new enterprise opportunities; and the design and conduct of a trainer of trainers identification and delivery of a UPA extension activities training course.


Philippines: Philippines-Australia technical support for agrarian reform and rural development (PATSARRD)

The PATSARRD project aims to improve the economic and social conditions of agrarian reform beneficiaries (ARB) of the Comprehensive Agrarian Reform Program (CARP) of the Philippines. The project uses a farming system development (FSD) planning process to identify and integrate agrarian reform community (ARC) plans with the local government and provincial planning process. The project supports the Department of Agrarian Reform (DAR) and other agencies in the implementation of strategies to rationalize, integrate and institutionalize the delivery of support services to the ARCs. An important element of the project is to directly raise the incomes of the ARBs through: the improvement of farm and non-farm productivity of ARB households; the provision of enhanced technical, agribusiness and marketing skills and establishment of enterprise development models that foster sustainable linkages between ARBS and agribusiness firms; and strengthening ARCs to engage in entrepreneurial business operations and expanded access to microfinance services.
Afghanistan: Alternative agriculture livelihoods programme (AALP)

The AALP is a five-year project of a long-term initiative, which together with complementary interventions in law enforcement will lead to the sustainable elimination of poppy cultivation in Afghanistan. Agriculture is recognized as both a major engine of economic growth and a source of livelihood for the majority of rural Afghans. The project aims to consolidate the actual and potential role of agriculture as a source of alternative livelihoods in current policies, strategies and action plans and assist in the sequencing of alternative livelihood and law enforcement interventions. The AALP provides technical support and related capacity building to the Ministry of Agriculture and its various line agencies and assists in guiding subsectoral programmes, such as those dealing with horticulture and livestock development, towards positive impacts on counter-narcotics as well as development.


Afghanistan: Rehabilitation of the sugar industry in Baglan

The Baglan Sugar Factory (BSF) in Afghanistan is currently being rehabilitated by a consortium which includes the Ministry of Light Industries and Foodstuff (MLIF), the German Society for Investments and Development (DEG), the German private firm KWS SAAT AG and three private investors from Afghanistan. FAO is providing technical and managerial expertise to support the organization and initial operation of the BSF supply chain. These activities will be instrumental in setting up the general organizational framework for the existence of a reliable source of raw materials to BSF, at the same time benefiting the local rural population through agricultural diversification, enhanced incomes and the creation of on and off-farm employment opportunities. The project is geared to the definition of the organizational framework for family farmer integration into BSF’s supply chain, including strengthening farmers' organizations. The cornerstone of the framework will be the definition of a model contract to regulate the technical and commercial relationship between farmers and the factory. FAO will assist factory managers in the definition of appropriate contract specifications regarding agronomic, managerial and pricing aspects of sugar beet cultivation and delivery. To ensure that small farmers supply sugar beets meeting specific quality requirements, a factory-based farming extension service will be set up by BSF with FAO's assistance. In close coordination with BSF management, FAO will assist in enabling small family farmers' access to farm inputs and agricultural mechanization services in the project area.
Farm business management schools (FBMS)

Small-scale farmers increasingly have to adapt their farm businesses to market changes, improve efficiency and increase profitability to take advantage of new opportunities that arise. Farming is becoming a much more competitive business and farmers are being compelled to become better managers in order to survive. Given this context, the purpose of this initiative is to develop a farm business management training curriculum for farmers to improve their decision-making skills and capacity.

The FBMS and the materials produced are based on the Farmer Field School concept of adult ‘learning-by-doing’ to deliver capacity building to farmer groups. The set of training materials are for use by facilitators of farmer groups and the farmers themselves to strengthen their management decision-making skills and capacity.

The purpose of the FBMS manual is to:

Enable farmer leaders to organize and work in small groups to build collectively their capacity to produce for the market and respond to market demands
Become a catalytic resource material to support the work of extension workers and rural development practitioners to assist farmers in moving towards commercial farming

The training programme is convened once a week or once a fortnight, depending on the unique situation of the target group and each session lasts for approximately three hours. The sessions consist of small group discussions, demonstrations, practical exercises and fieldwork as the case may demand. Other methods of capacity building methods include: farm visits, study tours, identification of best practices and market surveys.

The FBMS is a season-long programme structured in three phases:

Farm enterprise identification and planning guide
Farm enterprise season guide
Review and follow-up planning guide

The first phase is conducted prior to planting and is concerned with presenting some of the concepts of farm management and preparing a plan of action for the year. The second phase is flexible in use, and is largely unbound by the seasonal timetable. Selection of topics to be covered depends on the interests of the farmer members. Possible topics could include farmer contracts, farm consolidation, resource-sharing, inheritance and risk management.
Project in Cambodia to empower vulnerable groups through training in village level food processing (TCP/CMB/2902)

A project to assist vulnerable groups in Cambodia – women, disabled persons and demobilized soldiers – and their families was recently completed. The aim of the project was to assist in the social and economic integration of vulnerable groups and their families into rural community life by improving their skills in micro-enterprise management and marketing in small-scale food processing. The project set up a "National Village Processing Training Centre" for training of trainers and demonstration of food processing techniques for agricultural products such as solar drying, frying, salting, sugaring and juice/wine making. The training has equipped the participants with the essential skills in food processing, economics, marketing and business management so that they are able to preserve and process their agricultural crops for their own consumption and for income generation.



"Smart Extrusion" conference and exhibition

One recent activity carried out in support of agro-industry and post-harvest management was the organization and participation in the “Smart Extrusion” Conference and Exhibition in December 2003 held at Kasetsart University, Bangkok, Thailand.

The programme was designed to give professional delegates an insight into extrusion technology applications – for making a range of value-added nutritious foods having cereals and legumes as ingredients – for the successful development, production and marketing of extruded food and feed products. The main themes covered in the conference included the development of extruded foods and feeds in Asia-Pacific; formulation of extruded food and feed products in the region; and nutritious, value-added and weaning foods formulation and processing.

The conference achieved the objective of promoting extrusion technology in the Asia-Pacific region. It is a very suitable technology for enabling value-addition to be carried out on otherwise low-cost ingredients, mainly grains and legumes. The final products are nutritious, readily marketable as they are light weight, easily transported, need no refrigeration and handle easily due to their uniform shape. Products are made into e.g. weaning foods, also animal, poultry and aqua-feeds, all in considerable demand in the region.


© FAO 2008