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Joseph mwangangi.

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  • 1. Commercial Opportunities for Agri-Inputs: The Agrodealer Enterprise.
  • 2. The Agrodealer Business Opportunity: Outline of the Presentation
    • Defining the Agrodealer Business Opportunity.
    • Agrodealer’s Strategic Role/Position.
    • A permanent feature in African Agriculture?.
    • Enhancing Smallholder competitiveness
    • Key Elements of the Agrodealer Business.
    • Factor Underlying Agrodealer Dev. Success.
  • 3. Agrodealer Business Opportunity Defined: High due to dependence on rain Risk Factor Critical for Working Capital needs Financier Upstream Input supply companies Supplies Entrepreneur owner most effective Ownership Low start-up of about $2,000 Capital Rural based in proximity to farmers Location Ag. production inputs / technologies The Product/Service Smallholder Farming Community The Market
  • 4. Agrodealer Strategic Link along the Value Chain: Smallholders Agrodealers Processors Marketing Consumption Inputs Supply Cos. Transportation Product Information and Safe Use Credit Linkages Transportation Technology Linkages Policy Dialogue Extension / Agronomic Training Production input supply Market Links
  • 5. The Agrodealer and Smallholder Inputs Output Planned Smallholder Production Small Rural Enterprise “ Agrodealer” Inputs Supply Chain:
    • Availing Quality Inputs ,
    • Establishing demo plots,
    • Organizing field days,
    • Passing Ext. Messages .
    • New Technologies
    • Availing credit to farmers
    Outputs Value Chain:
    • Market specifications ;
    • Aggregation;
    • Quality Assurance ;
    • Warehousing;
    • Transportation .
    • Forward contracting;
    Value Chain Drivers INPUTS OUTPUTS
  • 6. AGMARK Agrodealer Support Program Building Agrodealer Capacity to Serve Farmers Financial Services for Agrodealers and Farmers Advancing Agricultural Policy Advocacy Access to Output Markets
    • Business Management Training and Mentoring support
    • Technical Training in agronomics, product knowledge, etc.
    • Demand Creation through field days, demos, exhibitions
    • Training in Output Marketing Capacity
    • Sustainable Associations of Agrodealers;
    • Public Private Partnerships and Forums;
    • Voucher Program Assessments/design;
    • Development of Smallholder Production Clusters;
    • Capacity to aggregate and link into competitive value chains.
    • Guarantee Facility for Increased Access to Credit;
    • Matching Grants for Startups, Output Marketing, etc;
    • Agricultural Lending Trainings and Linkages
    • Farm Input Savings and Loan
  • 7. The Agrodealer: A Permanent Feature of Africa’s Agriculture?
    • Agriculture remains the mainstay economic activity for most African economies;
    • 80% of Africa’s agriculture is smallholder and rural based;
    • Population growth and land policies encourage smallholdings in Africa;
  • 8. The Agrodealer: A Permanent Feature of Africa’s Agriculture?
    • Smallholder based production is generally uncompetitive, => uncompetitive Value Chains!
    • The future of Agrodealer Business Opportunity dependent on the future of smallholder production in Africa.
    • Shift towards Trade favors more efficient value chains, NEED to enhance smallholder efficiency.
  • 9. The Agrodealer: Enhancing Smallholder Competitiveness
    • Agrodealers enhance smallholder access to yield-enhancing inputs and technologies.
    • Agrodealers provide extension support as a “bundled service” through demand creation activities.
    • Agrodealers increase productivity per unit of investment, e.g. 3 bags/acre to 18 bag/acre in Chwele in Bungoma-Kenya.
  • 10. The Agrodealer: Enhancing Smallholder Competitiveness
    • Agrodealers make it feasible for Input Supply companies to access the “smallholder mass market.”
    • Agrodealers are viable “market access agents” for smallholder farmers.
    • Agrodealers do enhance efficiencies along the value chain, hence overall competitiveness.
  • 11. The Agrodealer: Challenges and Downside
    • Vulnerable to government / NGOs interference in the functioning of inputs and output markets;
    • Lead time and investment necessary before farmers adopt new technologies = barrier to entry
    • Agrodealerships skewed in favor of higher potential areas;
  • 12. The Agrodealer: Key to Successful Agrodealer Enterprise
    • The Entrepreneur Profile : passion, education, age, ability to network, risk management, responsiveness;
    • Enterprise Environment: location, pop. density, product range, farmer loyalty,
    • Value Chain Relationships: Farmers, input supply companies, MOA, distributors, dev. agencies.
  • 13. On-Going Agrodealer Programs
    • AGRA:
    • AGMARK implemented 3 year AGRA funded Agrodealer Strengthening program supporting 2,500 agrodealers in Kenya.
    • COMRAP:
    • IFDC and AGMARK are implementing COMRAP- an Agrodealer Development sub-component of COMESA-ACTESA in 8 countries.
    • IFDC and AGMARK are implementing the project through Host Partner Organizations in each of the 8 countries.
  • 14. Joseph N. Mwangangi Regional Director, Agricultural Markets Development Trust AGMARK [email_address] ; [email_address]