EMRC Workshop iv Andre de Jager

IFDCAccelerating Agriculture in Africa Smallholder farmer as business opportunity Agribusiness Forum 2010 October 3-6, 2010 Kampala, Uganda André de Jager Program Leader Agribusiness Program IFDC - North and West Africa Division

IFDCSmallholder farming as a business Organized Access output and input markets and information Form of rural finance exists and affordable Policies not hampering doing business

IFDC From challenges to changes Not all smallholder farmers want to / will be entrepreneurs Public-private partnerships and investments required Facilitation before acceleration Opportunities: Inputs, Services, Sourcing

IFDCChances for business in Africa Agriculture Small scale agribusiness clusters Agro-industry clusters for local, regional and global markets Agro-input dealers as change agents Market information Technical innovations

IFDCSmall Scale Agribusiness ClustersCluster = all actors needed tobuild profitable value chains Producers and their organizations Input suppliers Finance suppliers Processors – warehousing – value adding Traders – buyers – market-parties Business Development Services  Capacity building , technical advice

IFDC Low cost – high impact Investment per household: € 25 600,000 farmers in 7 countries farming as a business Yield increase of 80% Household income increase 50% > 5000 SME’s commercial service providers

IFDC External evaluationThe approach and intervention strategy have thepotential to fundamentally alter modalities ofinternational development collaboration ….. It canbecome a flagship for Dutch development cooperationbecause of its innovative entrepreneurial approachtowards sustainable agricultural growth and rural povertyreduction.

IFDC Agro Input Dealer Support To increase the availability, accessibility and affordability of agro inputs Components:  Building skills through training  Strengthen agro-input association  Facilitate access to credit  Demonstrations

IFDC Mapping agro-dealers•Identified and mapped over3,000 agro-input dealer salespoints•The project has classified thecountry into three categories;low, medium and high densityThis will guide the project towork with dealers onestablishing new sales outletsto serve the needs of farmersbetter.

IFDC Mobile phone applicationsSend mass SMS text message to agro-input dealers about availability ofimproved certified seeds

IFDC Market InformationTwo examples: Africa fertilizer markets Regional Agricultural Input Marketing System

IFDCAfrica Fertilizer Market A new global forum to disseminate and exchange information on fertilizers, soil fertility and related agricultural issues in Africa.

IFDCFertilizer Statistics  Production FAO Nutrients & IFA Products  Imports & Export FAO Nutrients & IFA Products  Production Capacity Raw, compounds, blends  Use per Crop Add 5 new countries  World Prices Monthly prices for 5-10 key fertilizers  National Retail Prices Monthly prices from 10-20 towns / country

IFDCMarket Information Africa Fertilizer Yellow Pages  Publications & Studies  Maps  Fertilizer Market News  Major Events  Links and Partners  Blogs & Forums

IFDCAMITSA in brief  With EAC & COMESA  8 countries in 2010, 11 in 2011  2,5 staff in Nairobi  DGIS (SAADA) + H.F. (STAR)  135 agro dealers trained in 65 major towns  First reports in 04/2010  Support to / supported by  Agro dealers devpt projects  Farmers organizations  Private sector

IFDC Monthly prices agro inputs in Eastern Africa Seed average retail price (US$/kg) CPP average retail price (US$/kg or 3 2,6 2,6 liter) 23,89 2,5 30 2 25 1,96 14,78 2 1,8 1,81 1,78 1,75 13,35 20 12,35 11,99 11,22 10,71 1,55 1,45 10,4 9,83 9,77 9,48 1,5 1,25 1,33 15 8,75 1,3 8,28 6,86 6,66 6,56 1,17 6,17 5,89 7,2 5,42 1,07 10 0,93 0,89 1 5 0,52 0,5 0 Burundi Zambia Zambia Rwanda Rwanda Rwanda Uganda Uganda Uganda Malawi Malawi Malawi Tanzania Tanzania Mozambique Mozambique Mozambique Kenya Kenya Kenya 0 Malawi Malawi Malawi Zambia Zambia Zambia Kenya Kenya Uganda Tanzania Uganda Uganda Uganda Mozambique Mozambique Mozambique Rwanda Rwanda 1 kg 1 liter 1 liter Mancozeb (80 %) Glyphosate (360 G/l Or Cypermethrin BEAN MAIZE - HYBRID MAIZE - OPV RICE 480 G/l Ipa) (50 G/l) Legume Cereal Fungicide Herbicide InsecticideVisit www.amitsa.org for more reports and information

IFDC Conclusion / Discussion Business opportunities for small holder agro business development (base-of-the-pyramid) exist  how to accelerate the process? Crucial elements to be in place:  Last-mile delivery inputs and services  Variety of financial services available  Transparency and market information

EMRC Workshop iv Andre de Jager

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