Inclusion of Small Scale Producers in Value Chains
George Osure, (Syngenta Foundation Kenya)
Agribusiness Forum – Uganda
The Small Farm as a Business
•Has Access to Land Sizes < 2Ha
•Have Superior labour & farm activity.
•Supplements income with Dairy & Poultry
•Shares resources from non-farm activities
•Has a continuous need for Market Information.
•Is Willing to participate in Business Oriented Extension
•Classified by the volume produced and size of the farm
•Faces many challenges related to market oriented
Challenges for the Small Holder Farmer Value Chains
Lack of The Lack of
Modules to Address Small Holder Value Chain Challenges
Extension Staff for 1000 Market Oriented Small Holder Farmers
(Reports to Project
This unit Costs USD
70,000 per year.
Farmer Led Market Farmer Led Market Farmer Led Market
at Village Level 1 at Village Level 2 at Village Level 3
(350 - Farmers ) (350-Farmers) (350-farmers)
Farmer Led Village Market Development (Management Structure)
(Resource Center •This unit Costs USD
Based Farmer) 5,000 in first year
only. Future financing
from a 5%Crop levy,
based on volume
Business Manager & Sales.
Market at Village Market at Village Market at Village
Based on Field Day Level Based on Field Based on Field Day
Design (Unit 1) Day Design (Unit 2) Design (Unit 3)
(350 - Farmers ) (350-Farmers) (350-farmers)
Key Small Holder Value Chain Components
Crop Volumes Sales Defined
available based on
Planted areas Weekly Crop
for the Market
Production Plan: Market
Planting Design Based on •Buyers
Schedule Contract & Market •Transporters
Economics of Small Holder Farmers Value Chains
The Cost of Managing a Farmer under this Model is USD 70 per
Farmer per Year.
•A 1000-farmer (50-Ha planted in 0.4Ha-units) Annual Production
Plan will attract Retailers who supply Super Markets.
•Technology based Partnerships will enhance Farmer Business
Opportunities: utilizate existing indigenous expertise.
• Supplement: Input supplier Extension system.
•Business Model: designed to manage 1000- Farmers based on a
clearly defined smallholder value chain.
Defining the Small Holder Value Chain
● The definition is based on a market led extension strategy:
It is a “coordinated” set of activities which subject the
Smallholder farmer’s production to an end user who has a set of
needs (economic, legal, environmental, technological) that must
be fulfilled for the farmer to receive in exchange (mostly through
an intermediary) resources which are deemed by the
intermediary (not the final recipient) as useful in his social
● Resources deemed suitable by the Intermediary:
– Money at market prices (availability/seasonality).
– Inputs at marked up prices
Best Practices for Inclusion into Value Chains - Considerations
Provide Information on Productivity, Market
Access & Crop Insurance, and Finance.
Work Towards Consistent On-Farm Water
Availability, Production, and Insuring the
Production Inputs to mitigate Risk.
Trust Based on Continuous Training & A
Transparent and Cost Effective Business
Oriented Extension System.
Communicate Through Farmer Led Programs
Train Groups of Farmers as Local Expert Labour Pools
Improve Productivity Using Indigenous Knowledge
Utilize Specialized Programs to Stimulate Farmer Business
• Combine Specialized Support Guarantees with the Extension
System to ATTRACT Additional Finance for Group Initiatives
Valued up to USD 1,500 for High Return Technology led Business
e.g. Simple 120-square-meter Greenhouse Generates Income of
USD 3,000 of Tomato & USD 7,500 for Capsicum Seasonally.
• Compared to USD 1,800 for 120- square meter open Field Farm
Parting Message: Small Scale Farmers Small Scale Producers?
● Not a correct Statement. Why?
● Classified as Small Scale Producers due to:
– Size of the Enterprise and Challenges associated with production.
● Classification: Should be based on yield per square meter of the
● Small holders produce higher volumes per square meter than
some large farms with correct incentive, MARKET with reference
to specific crops.
– Tomato produced per sq-m by small holder is 50kg while large
producer 15kg. (Ref: Mwea, Kenya – 2009 June)
● Should be Referred to as pre-commercial farmers with intent.
THANK YOU FOR YOUR ATTENTION
SYNGENTA FOUNDATION FOR SUSTAINABLE AGRICULTURE
● Farms are under 2Ha & Pre-commercial in character
● Smallholders require market & operational information
● They use on-farm water inefficiently
● We need to review existing farming systems of the 450-million
farms which are < 2-Ha size.
● 1/3 of the World Population depends on Smallholder Farming.
● Smallholders should be considered as pre-commercial