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Brussels Briefing 49:
Youth in agribusiness: shaping the future of agriculture
Presentation
Maness Ngoma Nkhata, Lakeshore...
YOUTH IN AGRIBUSINESS:
A CASE STUDY OF LAKESHORE AGRO-PROCESSORS ENTERPRISE(LAPE)
 
MANESS NKHATA
Managing Director, LAPE
...
OUTLINE OF PRESENTATION
 INTRODUCTION
 BUSINESS FOCUS
 HOW LAPE INVOLVES THE YOUTH?
 MAIN ACTIVITIES
 APPROACH TO ENG...
INTRODUCTION
…..MALAWI UNEMPLOYMENT STATISTICS….
Youth Unemployment in Malawi
(as a percent of total labour force aged bet...
INTRODUCTION
 Malawi has over 1.3 million young people who are unemployed
(NSO IHS3,2012)
 Unemployment rate is in Malaw...
INTRODUCTION
 The Government of Malawi has implemented policies to support
technical, entrepreneurial and vocational skil...
LAKESHORE AGRO-PROCESSORS
ENTERPRISE(LAPE)
 Registered youth owned agro-processing enterprise.
 Started in 2007
 Locate...
BUSINESS FOCUS SINCE 2007
SPECIFIC OBJECTIVES
i.To champion value addition of local agricultural commodities using efficie...
ORGANISATIONAL STRUCTURE OF
LAPE
HOW DOES LAPE INVOLVE WOMEN AND
YOUTHS?
 Deliberate targeting of women and youths to register as our
business partners.
...
MAIN ACTIVITY 1: SUPPORTING YOUTH AND WOMEN TO
INCREASE CROP PRODUCTIVITY
1. Mobilising youth and women into crop
producti...
MAIN ACTIVITY 2: PROCESSING OF SOYBEAN, SUNFLOWER AND
CASSAVA
1. Providing market for raw cassava,
soybean and sunflower
...
MAIN ACTIVITY 3: DEVELOPING YOUTH AGRI-
ENTERPRENEURSHIP SKILLS
1. Provides land to youths and women
who do not have land ...
DRIVERS TO SUCCESS FOR LAPE
 Using already existing groups through ADCs.
 Involving other stakeholders, e.g. Ministry of...
WHY LAPE WORKS WITH THE WOMEN AND
YOUTH?
 Good recovery of farm inputs loans – high repayment rates –
over 75% per season...
CHALLENGES
 Cultural norms and practices that tend to underrate women and
youth.
 Low contribution of women and youth du...
CHALLENGES
 Limited capital for LAPE to:
 Invest in large processing equipment
 Expand the revolving farm input loans
...
FUTURE PLANS TO GET LAPE TO NEXT
LEVEL
 Procurement of flash dryer
o Create 50 direct jobs and over 200 indirect jobs
o I...
YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION
(YA-JC)
PROGRAMME PLANS
 Reorient 10,000 youth agri-entrepreneurs towards mo...
YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION
(YA-JC)
PROGRAMME PLANS
 Identify, test and promote at least 5 viable agribu...
INTERNS AT SOYBEAN FARM IN MCHINJI
21
INTERNS AT A SUNFLOWER FARM IN
KASUNGU
22
LAPE WITH CASSAVA FARMER
CASSAVA PROCESING AT LAPE
UNIVERSITY INTERNS AT AFRICAN UNION
TRADE FAIR
UNIVERSITY INTERNS AT AFRICAN UNION
TRADE FAIR
NEW COOKING OIL FACTORY BEING
CONSTRUCTED
NEW COOKING OIL FACTORY BEING
CONSTRUCTED
THANK YOU FOR YOUR
ATTENTION
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Brussels Briefing 49 “Youth in agribusiness: shaping the future of agriculture" Maness Ngoma Nkhata : Youth Participation in agro-processing in Malawi

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The Brussels Development Briefing no. 49 on “Youth in agribusiness: shaping the future of agriculture” took place on 18th of May 2017 from 09:00 to 13:00, at the ACP Secretariat in Brussels, Belgium. This Briefing was co-organised by CTA, the ACP Secretariat, European Commission (DG DEVCO), Concord, PAFO and AgriCord.

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Brussels Briefing 49 “Youth in agribusiness: shaping the future of agriculture" Maness Ngoma Nkhata : Youth Participation in agro-processing in Malawi

  1. 1. Brussels Briefing 49: Youth in agribusiness: shaping the future of agriculture Presentation Maness Ngoma Nkhata, Lakeshore Agro- Processing Enterprise (LAPE), Malawi “Youth Participation in agro-processing in Malawi”
  2. 2. YOUTH IN AGRIBUSINESS: A CASE STUDY OF LAKESHORE AGRO-PROCESSORS ENTERPRISE(LAPE)   MANESS NKHATA Managing Director, LAPE E-mail: lape.factory2007@gmail.com maness.nkhata2013@gmail.com Cell: +26599005333 MAY, 2017 LAKESHORE AGRO-PROCESSORS ENTERPRISE (LAPE)
  3. 3. OUTLINE OF PRESENTATION  INTRODUCTION  BUSINESS FOCUS  HOW LAPE INVOLVES THE YOUTH?  MAIN ACTIVITIES  APPROACH TO ENGAGE YOUTH AND WOMEN  ADVANTAGES OF WORKING WITH THE YOUTH AND WOMEN  CHALLENGES  FUTURE PLANS  YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION (YA- JC) PROGRAMME PLANS
  4. 4. INTRODUCTION …..MALAWI UNEMPLOYMENT STATISTICS…. Youth Unemployment in Malawi (as a percent of total labour force aged between 15-24) Source: ILOSTAT It’s rising
  5. 5. INTRODUCTION  Malawi has over 1.3 million young people who are unemployed (NSO IHS3,2012)  Unemployment rate is in Malawi at 18.9%.  Of those that are unemployed, 25% are young women and 12.5% are young men (ILO,2013).  Main sources of youth employment in Malawi:  47.2% in subsistence agriculture  27.4% in retail trade  10.3% in manufacturing (ILO, 2013).
  6. 6. INTRODUCTION  The Government of Malawi has implemented policies to support technical, entrepreneurial and vocational skills development for the youth through the establishment of institutions e.g. TEVETA, YEDEF, SMEDI.  Evaluations of programmes of some of these institutions have shown that they have had no impact on overall labour market outcomes (AfDB, 2014).  None of these institutions focuses on transforming the subsistence nature of agriculture to make it a key source of gainful employment to youthful job seekers.  LAPE therefore focuses on filling in these gaps so as to create employment opportunities for the youth.
  7. 7. LAKESHORE AGRO-PROCESSORS ENTERPRISE(LAPE)  Registered youth owned agro-processing enterprise.  Started in 2007  Located in Chitipi Trading Centre, Lilongwe City.  Established on 1.5 ha of its land along the Lilongwe-Mchinji road in Chitipi.  Works with rural farmers as business partners and not beneficiaries  Uses innovative and self-sustaining contract farming models in soybean, sunflower, groundnuts and cassava production
  8. 8. BUSINESS FOCUS SINCE 2007 SPECIFIC OBJECTIVES i.To champion value addition of local agricultural commodities using efficient processing technologies. ii.To supply high quality agro-processed products at fair and competitive price. iii.To transform rural farmers into commercial producers through business partnership contract farming model. iv.To pioneer youth agri-business entrepreneurship through agro-processing incubation services. v.To increase and diversify income for rural youth and women through creation of off-farm jobs. SPECIFIC OBJECTIVES i.To champion value addition of local agricultural commodities using efficient processing technologies. ii.To supply high quality agro-processed products at fair and competitive price. iii.To transform rural farmers into commercial producers through business partnership contract farming model. iv.To pioneer youth agri-business entrepreneurship through agro-processing incubation services. v.To increase and diversify income for rural youth and women through creation of off-farm jobs.
  9. 9. ORGANISATIONAL STRUCTURE OF LAPE
  10. 10. HOW DOES LAPE INVOLVE WOMEN AND YOUTHS?  Deliberate targeting of women and youths to register as our business partners.  Provision of farm inputs loans (certified seeds, inoculants, herbicides) on contract farming basis.  Using LAPE extension officers to provide GAP services to the youth and women.  Hosting university interns to expose them to agribusiness and entrepreneurship.  Provision of business, entrepreneurship and leadership skills training to youth and women business partners.  Offering a ready market for farm produce using signed purchase agreements.
  11. 11. MAIN ACTIVITY 1: SUPPORTING YOUTH AND WOMEN TO INCREASE CROP PRODUCTIVITY 1. Mobilising youth and women into crop production associations:  Mkanda Soybean Producers Association – 2,400 members; 54% women; 30% youth.  Kakoma Estate Sunflower out-grower scheme – 3,411 members; 60% women; 40% youth.  Mikute Cassava Producers Association - 4,290 members; 35% women; 55% youth. 2. Working with youth and women as ‘business partners’ and not ‘beneficiaries’:  Revolving fund farm input loan for improved seeds, inoculants, chemicals and herbicides.  Extension services using Lead Business Partner Model.  Training on Good Agriculture Practices (GAP). 1. Mobilising youth and women into crop production associations:  Mkanda Soybean Producers Association – 2,400 members; 54% women; 30% youth.  Kakoma Estate Sunflower out-grower scheme – 3,411 members; 60% women; 40% youth.  Mikute Cassava Producers Association - 4,290 members; 35% women; 55% youth. 2. Working with youth and women as ‘business partners’ and not ‘beneficiaries’:  Revolving fund farm input loan for improved seeds, inoculants, chemicals and herbicides.  Extension services using Lead Business Partner Model.  Training on Good Agriculture Practices (GAP).
  12. 12. MAIN ACTIVITY 2: PROCESSING OF SOYBEAN, SUNFLOWER AND CASSAVA 1. Providing market for raw cassava, soybean and sunflower Income to farmers/transporters/wage earners 2. Improving quality of processed products  Value addition  Packaging  Standards 3. Expanding processing capacity to offer good market to farmers Installation of new processing machines 4. Providing permanent and temporary jobs for youth and women  Members of staff (52% female)  Temporary workers (80% women)  Hosting university interns 1. Providing market for raw cassava, soybean and sunflower Income to farmers/transporters/wage earners 2. Improving quality of processed products  Value addition  Packaging  Standards 3. Expanding processing capacity to offer good market to farmers Installation of new processing machines 4. Providing permanent and temporary jobs for youth and women  Members of staff (52% female)  Temporary workers (80% women)  Hosting university interns
  13. 13. MAIN ACTIVITY 3: DEVELOPING YOUTH AGRI- ENTERPRENEURSHIP SKILLS 1. Provides land to youths and women who do not have land for out-grower scheme with Kakoma Estate. 2. Provides ready market for youth and women who produce cassava, soybean and sunflower. 3. Provides opportunity for interns to be exposed to agro-processing to develop their entrepreneurship interest and skills. 4. Provides agri-business incubation services so that the youth and women become entrepreneurs. 5. Supports tree seedlings production as a business for youth and women to contribute to climate change mitigation. 1. Provides land to youths and women who do not have land for out-grower scheme with Kakoma Estate. 2. Provides ready market for youth and women who produce cassava, soybean and sunflower. 3. Provides opportunity for interns to be exposed to agro-processing to develop their entrepreneurship interest and skills. 4. Provides agri-business incubation services so that the youth and women become entrepreneurs. 5. Supports tree seedlings production as a business for youth and women to contribute to climate change mitigation.
  14. 14. DRIVERS TO SUCCESS FOR LAPE  Using already existing groups through ADCs.  Involving other stakeholders, e.g. Ministry of agriculture, gender, trade, religious organization, etc.  Using intensive public awareness campaign.  Provision of support through farm inputs loans and extension services.  Using success stories from peer business partners that previously worked with LAPE.
  15. 15. WHY LAPE WORKS WITH THE WOMEN AND YOUTH?  Good recovery of farm inputs loans – high repayment rates – over 75% per season.  Stability of women and youths groups – maintain the groups over seasons.  Women and youth are dedicated and hard working in farms with low default rates.  High cooperation to implement new GAP and adopt new technologies.
  16. 16. CHALLENGES  Cultural norms and practices that tend to underrate women and youth.  Low contribution of women and youth during meetings - passiveness.  Limited access to factors of production such as land, capital, technology, etc by women and the youth.  Provision of handouts by other stakeholders in the same groups which discourages others to adopt business approaches.
  17. 17. CHALLENGES  Limited capital for LAPE to:  Invest in large processing equipment  Expand the revolving farm input loans  Expand the internship programme  Low production capacity to meet demands of large customers o Current production is 5 metric tons of HQCF per month Vs at least 50 metric tons per month which is imported by large customers
  18. 18. FUTURE PLANS TO GET LAPE TO NEXT LEVEL  Procurement of flash dryer o Create 50 direct jobs and over 200 indirect jobs o Increase intake of interns hosted from 20 to 50 per year  Establish incubation centres o Equip youths with entrepreneurial skills o Provide youths with capital to start up their business  Establishing Cooperative Development Fund (36 months) o To sustain activities of business partners
  19. 19. YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION (YA-JC) PROGRAMME PLANS  Reorient 10,000 youth agri-entrepreneurs towards more engagement of commercial agriculture and market oriented value addition as sources of gainful employment.  Provide agribusiness incubation services to 10,000 youth agri- entrepreneurs so as to create gainful employment in commercial crop and livestock farming and agro-processing
  20. 20. YOUTH AGRI-ENTREPRENEURSHIP FOR JOB CREATION (YA-JC) PROGRAMME PLANS  Identify, test and promote at least 5 viable agribusinesses value chains with short time payback periods for commercial upscaling by youth agri-entrepreneurs.  Establish at least 5 viable strategic alliances and partnerships among key stakeholders in the value chains of interest to the youth agri-entrepreneurs.  Create independent youth agri-enterprises that will commercialize the production, processing and marketing across the value chains of cassava, soybean, sunflower, pigeon peas, organic horticultural crops, bee keeping, poultry, goats and other non-traditional small stocks.
  21. 21. INTERNS AT SOYBEAN FARM IN MCHINJI 21
  22. 22. INTERNS AT A SUNFLOWER FARM IN KASUNGU 22
  23. 23. LAPE WITH CASSAVA FARMER
  24. 24. CASSAVA PROCESING AT LAPE
  25. 25. UNIVERSITY INTERNS AT AFRICAN UNION TRADE FAIR
  26. 26. UNIVERSITY INTERNS AT AFRICAN UNION TRADE FAIR
  27. 27. NEW COOKING OIL FACTORY BEING CONSTRUCTED
  28. 28. NEW COOKING OIL FACTORY BEING CONSTRUCTED
  29. 29. THANK YOU FOR YOUR ATTENTION

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