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Inclusion of Small Scale Producers in Value Chains                   (Best Practices)George Osure, (Syngenta Foundation Ke...
The Small Farm as a Business     •Has Access to Land Sizes < 2Ha     •Have Superior labour & farm activity.     •Supplemen...
Challenges for the Small Holder Farmer Value Chains                           Reducing                             Land   ...
Modules to Address Small Holder Value Chain Challenges                        Training                        Farmer      ...
Extension Staff for 1000 Market Oriented Small Holder Farmers                           Project Officer                   ...
Farmer Led Village Market Development (Management Structure)                             Market                         Su...
Key Small Holder Value Chain Components                           Contract Crop Volumes            Sales Defined available...
Economics of Small Holder Farmers Value ChainsThe Cost of Managing a Farmer under this Model is USD 70 perFarmer per Year....
Defining the Small Holder Value Chain● The definition is based on a market led extension strategy:    It is a “coordinated...
Best Practices for Inclusion into Value Chains - Considerations                  Provide Information on Productivity, Mark...
Communicate Through Farmer Led Programs11
Train Groups of Farmers as Local Expert Labour Pools12
Improve Productivity Using Indigenous Knowledge13
Utilize Specialized Programs to Stimulate Farmer Business• Combine Specialized Support Guarantees with the Extension  Syst...
Parting Message: Small Scale Farmers Small Scale Producers?● Not a correct Statement. Why?● Classified as Small Scale Prod...
CONTACT DETAILS                        QUESTIONS            THANK YOU FOR YOUR ATTENTION               george.osure@syngen...
Summary     ● Farms are under 2Ha & Pre-commercial in character     ● Smallholders require market & operational informatio...
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Workshop iii George Osure, Syngenta

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Workshop iii George Osure, Syngenta

  1. 1. Inclusion of Small Scale Producers in Value Chains (Best Practices)George Osure, (Syngenta Foundation Kenya)Agribusiness Forum – UgandaOctober 2010
  2. 2. 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 Systems (BOES). •Classified by the volume produced and size of the farm •Faces many challenges related to market oriented value chains. 2
  3. 3. Challenges for the Small Holder Farmer Value Chains Reducing Land Sizes Lack of The Lack of Smallholder Suitable Farmer Led Resource Programs Farmer Platforms Reduced Availability of Water 3
  4. 4. Modules to Address Small Holder Value Chain Challenges Training Farmer Clusters Technology Market & Challenges Access Productivity Finance 4
  5. 5. Extension Staff for 1000 Market Oriented Small Holder Farmers Project Officer (Reports to Project Manager/Director) This unit Costs USD 70,000 per year. Technical Assistant & Partners 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) 5
  6. 6. Farmer Led Village Market Development (Management Structure) Market Superintendent (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. Contracts Office (3-Unit Coverage) 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) 6
  7. 7. Key Small Holder Value Chain Components Contract Crop Volumes Sales Defined available based on Planted areas Weekly Crop Aggregation at Collection Centers for the Market Production Plan: Market Planting Design Based on •Buyers Schedule Contract & Market •Transporters Requirements •Finance Management 7
  8. 8. Economics of Small Holder Farmers Value ChainsThe Cost of Managing a Farmer under this Model is USD 70 perFarmer per Year.•A 1000-farmer (50-Ha planted in 0.4Ha-units) Annual ProductionPlan will attract Retailers who supply Super Markets.•Technology based Partnerships will enhance Farmer BusinessOpportunities: utilizate existing indigenous expertise.• Supplement: Input supplier Extension system.•Business Model: designed to manage 1000- Farmers based on aclearly defined smallholder value chain.8
  9. 9. 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 setting.● Resources deemed suitable by the Intermediary: – Money at market prices (availability/seasonality). – Inputs at marked up prices9
  10. 10. 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.
  11. 11. Communicate Through Farmer Led Programs11
  12. 12. Train Groups of Farmers as Local Expert Labour Pools12
  13. 13. Improve Productivity Using Indigenous Knowledge13
  14. 14. 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 Farm14
  15. 15. 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 farm.● 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.15
  16. 16. CONTACT DETAILS QUESTIONS THANK YOU FOR YOUR ATTENTION george.osure@syngenta.com SYNGENTA FOUNDATION FOR SUSTAINABLE AGRICULTURE www.syngentafoundation.org16
  17. 17. Summary ● 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 business units.17

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