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FEED MODELS IN ZAMBIA
Piloting inclusive business and entrepreneurial models for smallholder fish farmers and poor value chain actors in Zambia and
Malawi (2019-2022)
PROJECT START-UP AND STAKEHOLDER MEETING AGENDA
Dr. Catherine Mwema – Post-Doctoral Fellow (Value Chains and Gender) 15/10/2020
Motivation
 Current status: 16% use both commercial and home-made,
3% exclusive (Census, 2020).
 Access: 65% have to travel over 20 km to buy commercial
feeds (Census, 2020).
FCR of selected feeds (BMP manual)
Maize
(9)
Farm-mixed feed
(5)
Commercial feed
(1.5)
Challenges in use of commercial feeds
 Transportation of feeds
 Limited knowledge by smallholders
on benefits of commercial feeds.
 Orders from smallholders small and
demand inconsistent.
Review of feed models
Model Who Where
Franchising Private firms South Africa, Vietnam
Contract farming/
Outgrower schemes
Private firms South Africa, Vietnam
On-farm millers/
small-scale millers
Individuals, Cooperatives,
SMEs
India, Bangladesh,
Nigeria, Kenya,
Decentralized feed
retailers
Individuals, Cooperatives,
Agro-shops/SMEs
Egypt, Bangladesh,
Kenya,
Aggregation Cooperatives/ farmer groups Uganda, Egypt, Vietnam
Feed distribution network
Feed IBEMs will facilitate the distribution and sale of quality
commercial feed to nearby fish farmers.
Proposed operational models
 Decentralized feed retailers
 Aggregation
10 IBEMs, potential demand from
2,000 farmers
Assessment and selection
 Nearness to fish farmers
 Financial capacity
 Potential/interest to sell feed
as a business venture
 Gender and youth
considerations
Decentralized retailers – Individuals, Agro-shops
Co-financing grant: 70% of feed cost - up to 2t per
IBEM, 30% IBEM investment.
Individual IBEMs supported to acquire repackaging
material (storage bins, weighing scale)
Feeds sold at retail market prices.
 Co-financing grant: 70% of feed cost - up to 2t
per IBEM, 30% members’ investment.
 IBEM aggregate feeds with nearby farmers, at
additional fee for non-members.
 Feeds sold at market price, cooperative farmers
benefit from low retail price (from buying directly).
Aggregation model – Cooperative/Group
Individual (1 tonne) Agro-shops (2 tonnes)
Feed 15000 30000
Transport 1000 1500
Equipment cost 6000 -
Total costs 22000 31500
Margin 10% 10%
Revenue 17600 34650
Break-even volume 3.75 tonnes
BCR (After recouping
equipment costs) 1.10 1.10
Projected profitability assessment
Training, Mentoring and Coaching
IBEMs training & coaching, integrating ToT to reach atleast 42
farmers.
IBEMs sustainability
THANK YOU !

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Fish Feed model Zambia GIZ project

  • 1. FEED MODELS IN ZAMBIA Piloting inclusive business and entrepreneurial models for smallholder fish farmers and poor value chain actors in Zambia and Malawi (2019-2022) PROJECT START-UP AND STAKEHOLDER MEETING AGENDA Dr. Catherine Mwema – Post-Doctoral Fellow (Value Chains and Gender) 15/10/2020
  • 2. Motivation  Current status: 16% use both commercial and home-made, 3% exclusive (Census, 2020).  Access: 65% have to travel over 20 km to buy commercial feeds (Census, 2020). FCR of selected feeds (BMP manual) Maize (9) Farm-mixed feed (5) Commercial feed (1.5)
  • 3. Challenges in use of commercial feeds  Transportation of feeds  Limited knowledge by smallholders on benefits of commercial feeds.  Orders from smallholders small and demand inconsistent.
  • 4. Review of feed models Model Who Where Franchising Private firms South Africa, Vietnam Contract farming/ Outgrower schemes Private firms South Africa, Vietnam On-farm millers/ small-scale millers Individuals, Cooperatives, SMEs India, Bangladesh, Nigeria, Kenya, Decentralized feed retailers Individuals, Cooperatives, Agro-shops/SMEs Egypt, Bangladesh, Kenya, Aggregation Cooperatives/ farmer groups Uganda, Egypt, Vietnam
  • 5. Feed distribution network Feed IBEMs will facilitate the distribution and sale of quality commercial feed to nearby fish farmers.
  • 6. Proposed operational models  Decentralized feed retailers  Aggregation 10 IBEMs, potential demand from 2,000 farmers
  • 7. Assessment and selection  Nearness to fish farmers  Financial capacity  Potential/interest to sell feed as a business venture  Gender and youth considerations
  • 8. Decentralized retailers – Individuals, Agro-shops Co-financing grant: 70% of feed cost - up to 2t per IBEM, 30% IBEM investment. Individual IBEMs supported to acquire repackaging material (storage bins, weighing scale) Feeds sold at retail market prices.
  • 9.  Co-financing grant: 70% of feed cost - up to 2t per IBEM, 30% members’ investment.  IBEM aggregate feeds with nearby farmers, at additional fee for non-members.  Feeds sold at market price, cooperative farmers benefit from low retail price (from buying directly). Aggregation model – Cooperative/Group
  • 10. Individual (1 tonne) Agro-shops (2 tonnes) Feed 15000 30000 Transport 1000 1500 Equipment cost 6000 - Total costs 22000 31500 Margin 10% 10% Revenue 17600 34650 Break-even volume 3.75 tonnes BCR (After recouping equipment costs) 1.10 1.10 Projected profitability assessment
  • 11. Training, Mentoring and Coaching IBEMs training & coaching, integrating ToT to reach atleast 42 farmers.