AgMP March 2013

1. www.iita.orgA member of CGIAR consortium
Strengthening of organization capacity
of Implementers/Aggregators for
effective business and agricultural
management in contract farming
Debo Akande
AgMP March 2013

2. www.iita.orgA member of CGIAR consortium
Outline
• THE PROBLEM TO BE SOLVED
• THE SOLUTION/ OUTCOMES
• RISK MANAGEMENT AND SUSTAINABILITY PLAN

3. www.iita.orgA member of CGIAR consortium
THE PROBLEM TO BE SOLVED

4. www.iita.orgA member of CGIAR consortium
THE SOLUTION/ OUTCOMES

5. www.iita.orgA member of CGIAR consortium
RISK MANAGEMENT AND SUSTAINABILITY
PLAN

6. www.iita.orgA member of CGIAR consortium
Markets for Aflasafe
DOREO PARTNERS
Poultry industry
Export-oriented aggregators
Food processors
Large commercial farmers
Smallholder farmers
Market based
• Poultry feed
• Premium food
market
AgResults (Incentive-
cum-market based)
marketdemandfor
Aflasafe • 60% maize consumed by farmers
• 40% sold in the market

7. Maize & Poultry Growth
• Nigerian maize production
has grown from 4 million
metric tons in 2000 to a 7.3
million metric tons in 2010
• Nigerian poultry production
has grown from 113 Million
birds in 2000 to 192 million
birds in 2010
• Each sector has grown on
average 5% per year.
• Poultry feed is
approximately 60% maize.
• Annual demand for maize:
1 million tons
Nigerian Govt Bans
Poultry Imports
Index of growth in production for maize and poultry
relative to Nigeria’s production in 1961* Measure:
Relative growth in production
Poultry Industry… Key Driver of Domestic Maize Production

8. Aflatoxin and Broilers
AF-free
diet
500 ppb AF diet
Aflatoxin impacts
• Significant increased mortality
• Reduced immunity
• Reduced vaccine efficiency
• Dramatic reduction in live weight / Feed
efficiency
• Drop in egg production rate
Aflatoxin levels in feeds in Nigeria
Aflatoxin level (ppb) Samples (%)
<20 (safe) 38
>20 to 100 (up to 5x) 14
>100 to 500 (up to 25x) 41
>500 to 1,000 (up to 100x) 7
Poultry industry’s current
cost (per ton feed*) for
toxin binders:
Tier 1: $3
Tier 2: $6
Tier 3: $13
* 600 kg maize per ton feed

9. Poultry Feeding Study
$3,200 net
profit from
10,000 birds
in 8 weeks
www.iita.orgMycored Europe, 28 May, 2013DOREO PARTNERSA member of CGIAR consortium
Aflasafe maize feed
Toxic maize feed

10. Innovation Platform
• Platform meeting with
leadership and members of
Poultry Association of
Nigeria, feed manufacturers,
maize aggregators, aflasafe
farmers, vet professionals
and regulators
• Results of poultry feeding
study presented
• Poultry farmers to buy all
aflasafe maize at a premium
www.iita.orgA member of CGIAR consortium

11. www.iita.orgA member of CGIAR consortium
Key Economic Drivers
• Ex-factory price: $12.2
including 28% EBITDA
• Farm Gate price: $15.6
• Maize yield required
for farmers to recover
aflasafe cost + 33%
profit: 3.5 t/ha
• Yield enhancement to
go hand in with
aflasafe use
DOREO PARTNERS

12. Actions to Create Demand
• Develop manufacturing capacity
• Create awareness about aflatoxin
• Engage stakeholders frequently
• Demonstrate efficacy of Aflasafe
• Train farmers in aflatoxin management
• Enable aflatoxin testing of products
• Incentivize use of Aflasafe by the poor
• Link Aflasafe users to food and feed market
• Being piloted by Doreo Partners
www.iita.orgDOREO PARTNERSA member of CGIAR consortium

13. Babban Gona Pilot
www.iita.orgDOREO PARTNERSA member of CGIAR consortium
• Farmers’ cooperative with professional management
• Credit, inputs and technical services
• Yield enhancing practices
• Aflasafe use
• Aflatoxin testing – 100% met standard
• Incentive for meeting aflatoxin standard
• Warehousing
• Output marketing – linking to market
• Return profit after sale ($140/ha)
• Farmers keep part of the harvest for family use

14. www.iita.orgA member of CGIAR consortium
Thank You
Thank u