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