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The London Dairy and African Food Exchange

3/4/2014

 
The Open Working Group on Development Effectiveness is in its 10th session this week. It is an important momentum, since the First High-Level Meeting of the Global Partnership for Effective Development Co-operation is also due to take place in Mexico later this month. 

It was interesting to find that the Netherlands, the United Kingdom and Australia apparently have found each other, preparing a joint statement as input towards the open working group. Already for some time the Dutch seem to follow closely what is happening in Australia and for years the agenda of Dutch policy makers has been fed by developments in the UK. What makes the Dutch falling in love with the Australian part of the Commonwealth. Its proximity to the Pacific may be but one reason. Another reason could be found in the way the Australian government has chosen to position its international development agenda and who is driving it. The content of the statement (just a one-pager) should point to what brings these pragmatist together. They are embracing a Results Based approach linked to clear outcomes in 2030 and all of them are in favour of a stronger role for the private sector in achieving those outcomes.

From dairy to food
An example of market-driven development that seems to gain momentum in this Trade for Aid agenda is The London Dairy Exchange (see youtube link below), not surprisingly having its base in 'The City'. The tool obviously revolutionizes market access bringing the principles of trading to the doorstep of any intermediate or farmer clever enough to handle the database. Because again it is all about data and connectivity. Recently the TLDE joined forces with Mask-Africa expanding their sole focus on dairy to include food crops in Africa launching the African Food Exchange.  

Is this something Justine Greening (Secretary of State for International Cooperation of the UK) and here fellow ministers from Nigeria and Indonesia are aiming to promote at the upcoming High-Level Meeting in Mexico. As already discussed at a side meeting in Abuja preparing for the Mexico gathering later this year business continues its storming entrance in the global development arena and the for-profits seem to outnumber the not-for-profits for the first time. It will be a major theme and market mechanisms like the Africa Food Exchange may try their luck.

Interests
Is the next bubble in the making? Is this agenda driven by traders in The City looking to hedge new margins or is this to be a truly inclusive mechanism that provides access to markets for millions of small-holders? Are economies of scale in the interest of the small-holder or in the interest of investors who see new horizons in the investment market? Do we really talk about a level playing field?

To be continued...
Nick Zenonos link
11/4/2014 10:57:53

Great blog Reinier.

I'd like to provide you with more information on TLDE.com and The African Food Exchange and how they work.

Firstly in regards to your query about the Mexico meeting, we will not be presenting or attending in Mexico. We have no affiliation with those in attendance.

TLDE.com is a global online portal for the food security and agriculture industry. It is the world’s only virtual, ‘peer-to-peer’ web based dairy and agricultural commodities trading exchange. The platform was built over a period of 5 years (2009-2013), self-funded by a trade and food industry expert and team of specialist developers and is commission free.

The African Food Exchange is powered by TLDE.com and connects the African food industry and its smallholder farmers to local, regional and international markets of the global food industry.

We are working with multiple farming organisations and co-ops to bring African farmers on to the Exchange. Each of the groups we are working with have organised their farmers in to clusters/groups. Due to a lack of internet connectivity and smartphones among the smallholder farmers, and to ensure all farmers can access the Exchange and it's features, each of the cluster/group leaders will access and trade on behalf of their clusters/groups via our mobile application. All farmers and cluster/group leaders will have profiles on the Exchange and free memberships as well as access to text alerts and educational information. All cluster/group leaders are given full training on how to use the platform.

The support we provide to farmers is not aid, it’s about trade. It’s about giving the African farmers the tools, finance and knowledge to help themselves by being a member of one of the several not for profit farming organisations working with us, who have an agreement with us to receive a percentage of our revenue. The organisations have agreed that 90% of all revenue they receive from us will be utilised to fulfill the needs of their farmers, such as providing them with machinery, inputs, irrigation, technologies and knowledge etc.

TLDE.com and The African Food Exchange are socially responsible companies and will always remain independent and never favour any business or individual over any other.

This is a truly inclusive mechanism, with a program that has been built to connect emerging markets to the developed markets in the food and agriculture industry.

The African Food Exchange is about helping African farmers move from subsistence to surplus.

We are a hands off organisation. This platform and program has been engineered to empower the African farmer, not the city trader.

I hope this answers some of your questions and if you have any more queries, please do not hesitate to contact me.

Reinier link
11/4/2014 12:29:42

Thank you so much for this elaborate response. Looking forward to seeing the positive impacts in the lives of small-holders. How will the platform help in local market development? Will their be possibilities to take sustainability parameters into account? Who will control the volumes in the end? Connectivity also expands the reach of the powerful. How will the powerless be protected from mechanisms of exploitation? Under what conditions will global market development contribute to empowerment of small-holder farming? These questions need further perusal I suppose and possibly are already part of your research agenda.


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    About me

    My name is Reinier van Hoffen.
    I write this blog on space for civil society in my own capacity as public and social intrapreneur, having contributed over 20 years to the strengthening of civil society in various capacities working for various organizations.

    Disclaimer: The content of this blog does not reflect in any way the position or opinion of my current employer, the Ministry of Foreign Affairs of the Netherlands.

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