Just a few slides to summarize the intricacies of implementing a market development project within the agribusiness sector in an emerging economy as complex as Nigeria. The slides cover the Tomato and Rice intervention work streams, the Agro-Support Service Business Model and the relevance of having credible and organized data in form of a cluster map to aid investment decisions in these two sectors.

1. Making Agri Business Markets
Work Better for All
Case Studies: Tomato and Rice Value Chains
By
Richard Ogundele
GIM -Agribusiness

2. ▪ Sector Overview
▪ Key Constraints
▪ What GEMS4 has done
▪ Intervention Sequencing
▪ Current situation as GEMS4 Exits
▪ Impact
▪ Sustainability and Exit
▪ Words on Marble
▪ Lessons
▪ Public-Private Sector Opportunities
▪ The Rice Value Chain
▪ The Need for data – Cluster Mapping
Presentation Overview

3. 3
Tomato Sector Overview - Nigeria ▪ 2nd largest tomato
producer in Africa
after Egypt
▪ 14th largest tomato
producer in the world
▪ 1.2% of total world
production
▪ 10.79% of Africa’s
production
▪ World largest
importer of tomato
products worth
$360m
▪ Annual production of 1.8m MT
per annum
▪ Local demand of 2.3m MT per
annum
▪ 45% annual post harvest loss
▪ 679 clusters in 12 states
▪ 88% Men 12% Women
▪ 66% AYR, 24% Dry, 10% wet

4. ▪ Reduced incomes
▪ Reduced tomato
quality
▪ 41% Damaged in
transit from North
to South
▪ Increased poverty
Poor packaging &
logistics infrastructure
Raffia baskets are the common
packaging materials
Cold chain infrastructure & quality
assurance is absent
Lack of knowledge of
harvesting techniques
Farmers harvest tomatoes at the
wrong times thereby increasing the
chances of damage during transit
Key Constraints
Farmers lack alternate markets to sell
into in time of supply glut e.g.
processors and high value retail
outlets
Lack of access to
alternate markets
4

5. ▪ Improved incomes
▪ Improved tomato
quality
▪ Damage reduced by
93%
▪ Reduced poverty
Introduced 25,100
Returnable Plastic
Crates(RPCs) and set up a
crate Rental Business
Model
Introduced Good Handling
Practices (GHP); Trained
Master Trainers &
Institutionalized with ADPs
What GEMS4 has Done
Linked Farmers to 2
processing plants
5

6. ▪ Reduced Wastage
▪ Improved incomes
▪ Improved tomato
quality
▪ Reduced poverty
Promoted
aggregation centres
in collaboration with
YieldWise Project
Facilitated new
transport system and
packaging
What GEMS4 has Done
Produce Cluster
Mapping
6

7. Intervention sequencing
7
▪ Action Research
▪ Sharing findings with FFVDAN; and reaching
consensus on a GHP intervention strategy
▪ Partnership with MasterCard to provide
25,100 RPC to prime the market
▪ Development of a tomato colour chart to
increase knowledge of timely harvesting
▪ Development and printing of SOPs for RPC
rental model; pack house operations
▪ Training of 60 master trainers in SOPs for
step down training to market actors
▪ Market storm’ in 6 states to raise awareness
of GHP and opportunities with RPCs
▪ Rental business kick off
▪ Collaboration with KDSG to build Pack House
▪ Monitoring of rail logistics using crates
▪ GHP training outreach to 10,000 farmers in
partnership with Pyxera Global
▪ Policy guidance support to Lagos State Govt
to deepen adoption and use of GHP and RPC
1
Entry point
rapid
research
Sharing
findings
MCCIG
partnership
TCC
SOPsTOT
GHP
Market
Storm
RPC use
KO
KDSG
Pack
House
Road
& Rail
GHP
Outreach
Policy
Guidance
21 3 4
5
678
9
10 11 12

8. Current Situation
As GEMS4 Exits
02
Market responding – processing
plants utilising GHP and
establishing aggregation
centres, authorities embracing
RPCs and GHP
04
crate rental businesses being
established and crate manufacturers
responding, alternative rail
operators copying the approach
01
Better handling of produce,
better transport, less
wastage
03
Increased opportunities to access
high-value markets (e.g. processing
plants, supermarkets etc.) -
premium prices

9. 71,712 people
• with positive changes in
incomes
£41,482,843
• change in income for men and
women using GHP + RPC to
reduce Post –Harvest Loses
93% reduction in wastage
Due to adoption of GHP and RPC
4,636
• Full Time Equivalent Jobs All
male & Poor created from
linkage to processors and use of
GHP & RPC
Impact

10. Sustainability and Exit
10
Dissemination of lessons to key northern
state stakeholder groups
GHP Training of Trainers for northern
states' public extension workers and
step-down training planning for farmer
Handover and way forward strategy
meeting on tomato interventions with
Jigawa state stakeholders
Pack house facility work force is
driven by women 15 per
facility(85%)
Pack house facility work force is
driven by women 15 per
facility(85%)
Meetings with various stakeholders on
the tomato cluster mapping report and
database, and handover of work to CBN
Development and sharing of GHP
toolkits

11. Words on Marble
11
‘’I make more sales in pepper and
tomatoes now because I adopted
the Good Handling Practices. They
last longer and I can bargain better.
Customers specifically request for
GHP pepper and tomatoes in this
Chechenia market in Kaduna. My
business has really benefited from
it.” - Adamu G. Mohammed lives
in Igabi Local Government Area
of Kaduna State

12. Lessons
12
Lesson learnt Description
▪ Value chain actors, particularly on the supply side were skeptical of washing their
tomatoes before shipping to the South for fear of quickened spoilage
▪ Master trainers need to find more innovative means to get more value chain actors
to adopt GHP at a fee. Embedding the service is the most logical way out to make
it a win-win for all along the value chain.
▪ Market access to the crates by potential users is still a challenge so plastic crate
manufacturers need to improve their supply chain mechanisms to ensure the
product is available in the marketplace
GHP
Master Trainers
RPC Market Access
1
2
3
▪ To reduce the post-harvest losses in tomatoes across all production states,
government involvement will further deepen adoption of GHP and use of
Returnable Plastic Crates
Government role4
▪ The collaboration with MasterCard Centre for Inclusive Growth was key in priming
the market for the introduction of RPCs, and might have achieved even more if
done earlier. Further shows importance of collaboration with the right partners.
MCCIG Partnership
5
▪ Opportunities abound for more investment in establishment, management and
operation of cold storage, haulage services and pack houses to further deepen the
usage of GHP and RPC and reduce post harvest losses.
Infrastructure gaps
6

13. Public and Private sector opportunities around GHP
Private Sector Investment in Business Opportunities
▪ RPC manufacturing; RPC rentals; cold chain storage transport (road rail);
▪ Pack house operations and management including retail-ready packaging manufacturing;
▪ Integrated agro-services for farmers including embedded GHP training and access to finance for
farmers;
▪ Small-medium-large scale tomato processing; financial services.
13
Public Sector Development Investment Opportunities
▪ Regularly updating cluster mapping information;
▪ Provision and upgrading of selective market infrastructure (e.g. irrigation, roads, market centres);
▪ Creating an enabling environment for private sector-driven agricultural growth (e.g. policy,
public-private economic growth initiatives);
▪ GHP extension services for farmers and small traders; coordination, especially information
sharing.

14. 3 6
25,100 RPCs introduced
into entire value chain
with 2,750 farmers &
retailers benefiting
Policy response to drive
adoption by some states
– e.g. Lagos state
preparing to phase out
raffia baskets
14
Photos above (from left):
1. Farmers packing harvested tomatoes of appropriate colour (i.e. Pre-red RIPE STAGE);
2. Properly stacked RPCs arriving at a Kano aggregation centre where
3. RPC adoption is significantly replacing raffia baskets; and,
4. Fresh produce pack-house operations at Dusten Wai Market, Kaduna
1 2 3 4
GHP and Use of RPC in Photos

15. Agri-Business:
Rice Sector Market Systems
Interventions

16. 16
Rice Sector Overview
▪ largest rice
producer in West
Africa
▪ 2nd largest rice
importer in the
world
12.4% of annual
production lost to
poor post harvest
management
▪ Annual production of 5.7m
MT milled rice per
▪ Local demand of 7m MT
per annum
▪ Kaduna – 0.91, mt Wet
▪ Kano– 1.86m mt Wet
▪ Jigawa – 1.25m mt Wet
▪ 1.43million farmers

17. GEMS4 Rice Sector Interventions Evolution
SYSTEMIC CONSTRAINTS ADDRESSED
2b Integrated Agro
Support Services for
Farmers
Poor yields
2a. Rice Cluster Mapping
RESPONSIVE INTERVENTIONS DESIGN AND IMPLEMENTATION
1. Weak Market
Linkages between
Farmers and
Commercial Mills
2a. Limited Information on Rice
Production Clusters in Support of
Forward and Backward Market
Linkages (and Government
Planning and Investment
Decision-Making)
2b. Weak Farmer
Organization and Lack of
Access to Key Agro-
Services and Finance
1. Linking Rice Farmers
to Commercial Mills

18. Overview of Problems Facing Commercial Mills and Rice Farmers
18
Lack of access to ancillary agro
services and finance
Low yield and low sales price
High post-harvest losses
High transaction costs
Lack of access to appropriate
inputs
Quality & quantity of paddy is
low & inconsistent
High transaction costs from
sourcing from dispersed farmers
Inconsistent quality & high
volume of rejects
Unused installed capacity due to
low paddy volume

19. ▪ Improved incomes
▪ Improved quality
of rice paddy
▪ Reduced poverty
Partnered with 2 Agro
service providers, Green
Sahel and Babban
Gona, to provide end-
to-end BDS to farmers
Linked farmers to two
commercial mills;
sensitized farmers and
aggregators on mill
quality requirements;
What GEMS4 has Done
Developed a Nigerian
rice brand with a mill
and a distributor –
packaging, distribution
channels, promotion
19
1Umza Farms
and Mills
2Popular Farms
and Mills Limited

20. ▪ improved incomes
▪ Improved paddy
quality
▪ Reduced poverty
Facilitated new
financial products
to support various
parts of the rice
value chain,
Undertook cluster
mapping of 18 rice
producing states
across Nigeria
What GEMS4 has Done
promoted investment
into the sector
20

21. Partners
2 Popular Farms and
Mills Limited
1 Umza Farms and Mills
Identifying
commercial
mills with
capacity to buy
from farmers
Farmer
mobilization &
sensitization
on rice mills
quality
requirement
Registration of
farmer groups
for better
organization
Facilitate
direct sales
to mills
eliminating
middle men
1
2
3
4
Intervention

22. Current Situation
As GEMS4 Exits
02
Mills are packaging rice in
smaller SKUs and looking to
employ branding more to
achieve higher value.
04
Investors are consulting the Rice
Cluster Mapping Data to make
informed decisions about
investments in the rice sector
01
Green Sahel and Babban Gona are
operating the agro services
business model as agreed, they are
expanding operations and coverage
to other crops. Farmers are happy
with increased yields and incomes.
03
Farmers are supplying to
commercial mills for increased
prices, leading them to plant more
land and employ more workers

23. 23
21,251
people with positive changes
in incomes
£4,817,744
Sales in paddy to commercial
mills
43
rice farmers received
working capital loan and
recorded
4,793
Full Time Equivalent Jobs
created from selling to
commercial mills
Impact

24. Sustainability and Exit
24
Dissemination of lessons to key northern
state stakeholder groups (follow up strategy
meeting with Jigawa state; meeting with
Kaduna State Governor0
Development and sharing of agro-
services toolkits
Meetings with various stakeholders on
the rice cluster mapping report and
database, and handover of work to CBN
Pack house facility work force is
driven by women 15 per
facility(85%)
Rice investment promotion event in
Lagos
Pack house facility work force is
driven by women 15 per
facility(85%)
Agro Service Providers have adapted
model to other Value Chains e.g. Sesame
and Maize

25. Words on Marble
I used to trek to and from the
farm, but that has changed
because I was able to
purchase a motorcycle from
the income and profit from
sale of paddy” - Adamu Bulama
– community leader of Babba
Village in Auyo Local Government
Area of Jigawa State

26. Key Sustainability Drivers: Integrated Agro-Services
Increased
partner revenue
that cover the
cost of service
provision from
fees charged and
commission
earned
Increased
beneficiary
incomes from
higher yields and
higher prices
Potential for scale
as the model can
be applied to other
value chains
Alluvial partners and TAK
Integrated Agro Services
are adopting this model so
systemic changed is
expected in the near future

27. Lessons from Linking Rice Farmers to Commercial Mills
• Community leaders are powerful influencers to use in mobilization
• Aggregators remain major actors in the system due to social ties and relationships
• Commercial mills paid farmers higher than open market price and middlemen
• Commercial mills are willing to pay a premium price for good quality paddy
• The market-led agro-support service model offers a viable platform for agro processors to
aggregate hitherto dispersed smallholders for supply of quality product at scale.
• Payment issues are a big constraint to direct sales as farmers want immediate cash
• Can be replicated across multiple agricultural value chains
• Owners must have entrepreneurial skills and quick-wins are needed to boost adoption
among poor smallholder farmers and build confidence for the service providers
• The positive stakeholder reception of GEMS4’s cluster has shown the important role of
information to shape government policy and drive private investment.
• For replication a similar approach should be taken – i.e. ensure wide prior consultation that
captures the research needs of all stakeholders, and increases broad-based acceptance.

28. Sample Public and Private Sector Opportunities around
GEMS4 Rice Interventions
Private Sector Investment in Business Opportunities:
• Investment in rice milling plants;
• Investment in out-grower schemes for farmers directly; or via agro services firms;
• Integrated agro services delivery for farmers including embedded credit;
• Investment in transport and logistics for movement of produce to mills;
• Threshing and other mechanisation services;
• Storage; and,
• Inputs and equipment manufacture and distribution.
Public Sector Development Investment Opportunities
• Regularly updating rice cluster mapping information;
• Provision/upgrading of market infrastructure (e.g. irrigation, roads, market centres);
• Creating an enabling environment for private sector-driven agricultural growth (e.g.
policy, public-private economic growth initiatives); and,
• Extension services for farmers and small traders; and
• Coordination mechanisms, especially information sharing.

29. Agri-Business:
Increasing the Availability of
Information for Stakeholders
through Cluster Mapping

30. Constraints Addressed
30
Location of production clusters and demographics
2 Volume and seasonality of produce required by processors
Average farm size and average yield per cluster3
Cost of producing 1 hectare of commodity4
Potential for adoption of new practices5
Potential size of opportunities in the value chain for investment6
Commercial mills, agro-service investors and government stakeholders
were faced with lack of critical information on:
1

31. Impact of Limited Information
Face value
industry
assessment
(lack of
empirical data)
leading to:
Shortages of
raw materials
Unorganized
supply chain
logistics
arrangements
Uncoordinated
route to market
(no business
plan)
Input distribution companies
had challenges knowing where
to deploy products, when and
in what quantity as they do not
have any data to guide this
market penetration strategy.

32. Mapping Information Generated
32
Parameters
▪ Seasonality
▪ Volume
▪ Varieties
▪ Irrigation
▪ Yield
▪ Post-harvest losses
▪ Extensive Databases
▪ 165 major clusters
▪ 2,812 sub clusters
in 96 LGAs
▪ 1.43 million farmers
▪ 679 clusters
▪ 176,713 farmers
▪ 171,179 hectares
under cultivation
Rice
Tomato

33. Sequencing of Initiative
33
Desk research on available data
2 Consultation of all stakeholders to share available data
Development of TOR for selection of consulting team3
Conduct cluster mapping4
Hold validation session to agree on results with stakeholders5
Release cluster mapping data to public and private sector6
For accurate data collection and development into a cluster mapping
report to stimulate investment, the following tasks were completed:
1

34. http://gems4.coffeycloud.com/

35. Lessons
35
Lesson learnt Description
▪ Investors need reliable data upon which business decisions can be
based
▪ Without sectoral specific mappings, it will be difficult for existing and
potential investors to engage further with key actors, understand exactly
where the challenges are and how best to mitigate them
▪ Cluster mapping aids development of associated support services
required for smooth operational logistics in major sectors. Investors can
decide whether to take on these new opportunities directly or outsource
Data needs
Risk
management
Support service
development
1
2
3
▪ Information helps to estimate potential market sizes and extent of
investment required to bring about systemic change for economic growth
and improved livelihoods.
Systemic change4
▪ Mapping exercises can add extensive value and substance to value
chain analysis.
Possible impact
on project5

36. 36