Strategic Area C focuses on value chain development and increasing access to financial services in agriculture. Early actions proposed include multi-stakeholder platforms to reduce constraints for business growth, integrating smallholder farmers into value chains, agribusiness ventures, and developing fertilizer and seed value chains. Fertilizer supply chains in Africa are currently weak and import-oriented. Subsidies can increase fertilizer use but face challenges regarding targeting, sustainability, and crowding out private sector. Building fertilizer value chains involves strengthening various actors and linkages along the chain through cooperation between farmers, input suppliers, traders, and government.
Presented by Jens A. Andersson (CIMMYT), Elias Damtew (ILRI) and Zelalem Lema (ILRI) at the Africa RISING Learning Event, Arusha, Tanzania, 11-12 November 2014
Presented by Jens A. Andersson (CIMMYT), Elias Damtew (ILRI) and Zelalem Lema (ILRI) at the Africa RISING Learning Event, Arusha, Tanzania, 11-12 November 2014
The presentation includes a brief discussion of contract farming in India. Levels of benefits acquired and problems faced by farmers are assessed and presented for better understanding of the status of contract farming.
A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled business.
Cooperative societies are voluntary associations started with the aim of service to members.
Cooperative marketing consist of two words ‘cooperative or cooperation’ and ‘marketing’.
It is also the marketing ‘for the farmers’ and ‘by the farmers’ that aim at eliminating the chain of functionaries operating between the farmers and the ultimate consumers and thus securing maximum price for the farmer’s produce.
According to RBI “Co-operative marketing is a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.”
According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.”
Agriculture sector in India contributes 16% of GDP & 10% of export earnings. Agricultural Development in India has led to exports of agricultural products worth US$ 22 Billion by 2014. More statistics here.
Introduction to agricultural value chains and supply chain managementILRI
Presented by Karl M. Rich at the Training program for “Methods for livestock value chain analysis: Qualitative and quantitative methods”, ILRI, Nairobi, 1 July 2013
The presentation includes a brief discussion of contract farming in India. Levels of benefits acquired and problems faced by farmers are assessed and presented for better understanding of the status of contract farming.
A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled business.
Cooperative societies are voluntary associations started with the aim of service to members.
Cooperative marketing consist of two words ‘cooperative or cooperation’ and ‘marketing’.
It is also the marketing ‘for the farmers’ and ‘by the farmers’ that aim at eliminating the chain of functionaries operating between the farmers and the ultimate consumers and thus securing maximum price for the farmer’s produce.
According to RBI “Co-operative marketing is a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.”
According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.”
Agriculture sector in India contributes 16% of GDP & 10% of export earnings. Agricultural Development in India has led to exports of agricultural products worth US$ 22 Billion by 2014. More statistics here.
Introduction to agricultural value chains and supply chain managementILRI
Presented by Karl M. Rich at the Training program for “Methods for livestock value chain analysis: Qualitative and quantitative methods”, ILRI, Nairobi, 1 July 2013
Objective Capital's Industrial Metals, Minerals & Mineable Energy Investment Summit 2011
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3 November 2011
Speaker: Steven Markey, CRU Strategies
Poster prepared by Jo Cadilhon (ILRI), Mark Lundy (CIAT) and Alexandra Amrein (CIAT) for the African Dairy Value Chain Seminar, Nairobi, 22-23 September 2014.
Presentation by Nick Minot at the IFPRI Panel Discussion, Smart Input Subsidies and Sustainable Agricultural Development, Washington DC, July 24, 2009.
Utilization of Value Chain Analysis in the Livestock Development Sectorcopppldsecretariat
Presentation from the Livestock Inter-Agency Donor Group (IADG) Meeting 2010. 4-5 May 2010 Italy, Rome IFAD Headquarters.
The event involved approximately 45 representatives from the international partner agencies to discuss critical needs for livestock development and research issues for the coming decade.
[ Originally posted on http://www.cop-ppld.net/cop_knowledge_base ]
Improving the effectiveness, efficiency and sustainability of fertilizer use ...Agri Policy
Fertilizer has enormous potential to help Sub-Saharan Africa achieve
food security. But its farmers use less fertilizer than anywhere in
the world. So far it has proved too expensive for many smallholders,
and in some cases its misuse has actually led to the deterioration
of soil fertility. As this briefing explains, to reverse this trend and
to encourage the optimum use of fertilizer, lessons must be learned
from past experience.
Link: http://digital.agripolicyoutreach.org/54545/IMPROVING-THE-EFFECTVENESS-EFFICIENCY-AND-SUSTAINABILTY-OF-FERTILIZER-USE-IN-SUB-SAHARAN-AFRICA/Policy-Brief
"What investments are needed to reach the SADC-RISDP and CAADP goals in Southern Africa?" presentation by Babatunde Omilola at the Southern Africa Regional Conference on Agriculture. Gaborone, Botswana, December 8-9, 2008.
Presentation by Silvanus Mruma about the peculiarities of NAFAKA phase II project. This presentation was made at the the annual review and planning meeting for the Africa RISING - NAFAKA project on 26 - 27 June 2018.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Unveiling the Secrets How Does Generative AI Work.pdfSam H
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Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
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Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
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https://seribangash.com/difference-public-and-private-company-law/
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1. STRATEGIC AREA C: VALUE CHAIN DEVELOPMENT AND FINANCIAL SERVICES
ABRAHAM SARFO
CONFERENCE OF MINISTERS OF AGRICULTURE OF WEST
AND CENTRAL AFRICA
CAADP PILLAR II LEAD INSTITUTION
CMA/AOC - Conférence des Ministres de
l'Agriculture de l'Afrique de l'Ouest et du
Centre
Lead institution for CAADP-Pilar II
Tel: (221) 33 869 11 90
2. Strategic Area C: Value Chain Development and
access to Financial services
• A set of Early Actions has been proposed under each strategic area identified by an
Expert Reference Group, under the direction of CMA/WCA, to kick-start the
implementation of Pillar II in the short, medium and long term. For Area C they
could be presented as follows:
– Multi stakeholders platforms to remove the
regulatory technical and financial constraints to
enterprises creation and growth
– Platforms to support the integrations of Smallholder
farmers into Developing Value Chains
– Agribusiness joint ventures and Investment fairs
– Fertilizers and Seeds Value Chain development
tool
6/21/2012
3. INTRODUCTION
• It is a cruel irony that a farmer in Sub-Saharan Africa –
where half the population survives, somehow, on less than
$1.25 a day – must pay two to four times the average world
price for fertilizer.
• This is mainly due to geography and poor infrastructure.
• Transporting fertilizers from an African seaport to a farm
100 km inland costs more than to ship those same
fertilizers from North America to Africa.
• Also, the current low demand for fertilizer in Africa reduces
potential economies of scale in procurement.
• Government policies, including those affecting tariffs and
trade, often contribute to high prices. Corruption is another
factor
• Source: IFDC
6/21/2012
4. FOCUSING ON AGRO INPUT SUPPLIES :
FERTILIZERS AND FORMAL SEEDS MARKET.
• Within the context of African Green Revolution, emphasis
has been put on the non organic fertilizer and High Yields
Varieties (HYV) seeds as the main ingredient to significantly
and quickly increase production.
• Abuja declaration on Fertilizers focused on increasing the use
of non organic fertilizers to bring it from its actual level of 8kg
per hectare to 50kg by 2015.
• Use of inputs (incl. mechanization, water, etc. ) is also
considered under pillar III of the CAADP Process
• NB: we use fertilizer here for non organic fertilizers and seeds
for HYV seeds
6/21/2012
5. Fertilizer supply chains are weak and
imports oriented
• African farmers apply only five to ten percent of the
fertilizer amounts used in other developing
regions, such as Asia.
• More than 90% of fertilizers are imported.
– Some mixing and bagging can be done within Africa when
products are imported in bulk
– There is a production potential in Africa but capital and
lack of critical mass market are among the major breaks
for domestic production development.
6/21/2012
6. THE ISSUE OF FERTILIZER
SUBSIDIES
POLITICAL, ECONOMICS AND
SUSTAINABILITY
6/21/2012
7. Three Economic Rationales For
Fertilizer Subsidies
1. Efficiency
• Fertilizer use by farmers may be sub-
optimal because of
– Lack of information
– Lack of liquidity
– Risk aversion
• In this case, subsidy could raise fertilizer
use to optimal level
• If so, value of additional crop production
could exceed cost of subsidy
6/21/2012
8. Three Economic Rationales For
Fertilizer Subsidies
2. Equity
• Farm income is below average, so fertilizer
subsidies represent transfer to the poor
• To justify, need to show that fertilizer subsidies
are better targeted than alternative anti-
poverty programs e.g. school feeding, primary
health care, & conditional cash transfer
• However, value of transfer proportional to
amount of fertilizer used, larger farmers
benefit more than small farmers
• Thus, fertilizer subsidies unlikely to be pro-
poor unless targeted or rationed
6/21/2012
9. Three Economic Rationales For
Fertilizer Subsidies
3. Externalities
• Fertilizer subsidies could be justified if
fertilizer use generates benefits to others
beside the farmers
• Example: fertilizer increases plant growth
reduces soil erosion and run-off
benefits others downstream
• But generally fertilizer subsidies have not
been justified for externality reasons
6/21/2012
10. Effect Of Fertilizer Subsidy Removal: Africa-wide
16.0
Period of
14.0 most active
subsidy
(kg of nutrents per hectare of arable land & permanent crops)
removal
12.0
10.0
Fertilizer application rate
8.0
Sub-Saharan Africa (old, 49
countries)
6.0
Sub-Saharan Africa (new, 27
countries)
4.0
2.0
0.0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Source: FAO, 2009.
6/21/2012
11. Effect Of Fertilizer Subsidy Removal: Specific
Countries
• Nine countries had distinct periods of phasing out subsidies
• Compare five-year average before and after subsidy elimination
• Result
– Fertilizer use declined ~40% in two countries: Nigeria & Ghana
– Fertilizer use declined 25-29% in three: Cameroon, Senegal, &
Tanzania
– Fertilizer use increased 14-500% in Benin, Togo, Mali, & Madagascar
• Explanation
– Subsidy only one factor in determining price
– Price only one factor in determining fertilizer use
6/21/2012
12. Problems of input and service provision to farmers
Weak effective (paying) demand
• Cash income / cash flow of smallholders too low to pay for inputs
• Short-term credit for input not available or perceived as too risky
• Farmers know little about potential benefit of services and inputs
• No trust in quality of services and inputs on offer
Coordination problem in input markets
• Small size of fertilizer markets discourages investment
• Unpredictable, contradictory political and donor interference in input
markets crowding out private offers
• Grades and standards are absent or not enforced
Public (knowledge) services are not driven by demand
• Service provision is not linked to payment for service (service gap)
• Public services largely supply-driven
Low quality service offers, supply gaps
• Undeveloped private services
• Lacking offers
13. The mineral fertilizer value chain
Fertilizer
market
Specific Food Agricultural
Final Con-
Technology Farmers Industry / Retailers product
sumers
Suppliers Traders markets
Retail Import and delivery of fertilizers is a value
Input Dealers
chain in itself, with farmers being the end
market
Wholesale The fertilizer market depends on the
Wholesalers
economics of the agricultural value chains to
which farmers (= buyers of fertilizers) belong.
Import
mixing
bagging Importers
Manu- Chemical
facturing Companies
14. The Mineral Fertilizer Value Chain: Market Failure
Farmers (demand side):
Fertilizer Low profitability of fertilizer use due to
market unfavourable relation agric./ input prices
and lacking complementary inputs
Farmers Lack of cash income
No access to finance
No technical know-how on application
No trust in fertilizer products
Risk (perception) of agriculture
Input dealers (supply side):
Retail Low profitability of fertilizer trade due to
Input Dealers
reduced and dispersed demand, small scale
High marketing cost
Lack of information - Few traders know the business
Wholesale Fraud: Lacking standards & quality control
Wholesalers
Regulatory Framework
Unreliable import policy & licensing
Import High cost of doing business
mixing
bagging Importers
Manu- Chemical Chemical Companies:
facturing Companies Low profitability of market entry
15. Challenge: Too little use of mineral fertilizers
The Challenge
Most African farmers use less mineral fertilizer than would be econo-mically
profitable - and advisable from an agronomic point of view.
The Abuja declaration calls for increasing the use of non-organic fertilizer from
currently 10 kg/ha (Africa overall) to 50 kg/ha
Underlying problems
Demand side: high priced fertilizers, low cash income, financing
problems, complementary inputs missing, lacking know-how, little trust
Supply side: no incentive for traders in a small market, high cost of
handling, storing and marketing
Market chain: Unpredictable, contradictory political and donor interference in
input markets crowding out private offers;
Grades and standards are absent or not enforced.
The basic issue is coordination failure
16. Building fertilizer value chains
Access to inputs: Fertilizer value chain development
• Enhance smallholder purchasing capacity by linking farmers to markets and
by organizing collective orders
• Fertilizer market regulation (e.g. grades and standards)
• Support commercial suppliers of inputs
Access to services: Create embedded service arrangement
• Integration of services into commercial business linkages
• Support service provision by cooperatives
Public service delivery: Reform of public service funding
• Competitive technology and extension funds
• Voucher schemes
17. Building a fertilizer value chain
Buyers Demand side interventions
Farmers Of produce
Awareness and information around fertilizers
Embed input supply in contract farming
Collective purchases by cooperatives
Fertilizer Increase profitability of fertilizer use
Farmer
Coops market Provide targeted subsidies in a voucher scheme
Enhance access to agricultural finance
Fertilizer market
regulation
Input Dealers Supply side interventions Licensing of dealers
Offer of smaller packages Increase competition
Training agro-input dealers Introduce voucher scheme
Wholesalers Product grades & standards
Create professional association
Improve infrastructure (storage) Product certification
Quality control
Importers
18. How to build & strengthen a fertilizer VC
Cooperation for regular commercial fertilizer supply
Offtakers / buyers • Embed input supply in contract farming
• Prefinance production
Farmer co-operatives • Contracting with buyers and suppliers
Fertilizer dealers • Make appropriate offer of fertilizer supply
(packaging and pricing)
• Guarantee regular supply
Government • Provide research support, technical solutions
Fertilizer VC platform • Identify opportunities for regular fertilizer sale
• Coordinate stakeholders
Development partners • Support individual stakeholders in their tasks
• Facilitate collaboration
19. AU/NEPAD Africa Fertilizer Summit In Abuja:
Declaration On Fertilizers For A African Green
Revolution
• At regional level:
– Harmonisation of legislation and trade policies
– Regional fertilizers procurement
• Regional warehouses
– Promotion of transitioning to local blending and produciton and intra-regional trade
• Based on local phosphate and oil /gas
• At country level
– Formal regulatory framework
• Removal of price controls, importer license requirements, restricted list of products
allowed
• Taxes reduction (import taxes and VAT)
– Fertilizer inspections for quality control at the point of sale
– Capacity building for private sector and farmer associations
– Farmer access to quality seeds, CPPs, irrigation facilities, extension services, and market
information systems
6/21/2012
20. Set Political Priorities And Objectives
Per Target Groups
What is your principal policy goal?
Welfare goals include objectives such as poverty reduction and
improved food security for those living below the poverty line;
success in meeting these goals is usually measured in terms of
decreases in the incidence of poverty or food insecurity.
Economic growth goals aim to increase aggregate crop yields and
farm incomes; success in meeting these goals is usually measured in
terms of growth in agricultural value added per unit of land or per
agricultural worker.
6/21/2012
21. Input Vouchers: Malawi
• Many government, NGO, and donor
interventions in input supply are guided by
the need to help resource-poor farmers who
suffer from transitory or chronic food
insecurity.
• The twin objectives of poverty alleviation and
market development can be achieved if the
support programs are implemented by
transferring the purchasing power to the
needy farmers
6/21/2012
22. • Input vouchers permit voucher holders to
purchase specific quantities and types of farm
inputs from qualified distributors who have
agreed to accept vouchers as payment.
• The distributors in turn redeem the vouchers
for cash payment from the program organizers
23. Input Vouchers: Used To Promote Fertilizer Use?
Use of vouchers as part of a – Vouchers can be used to
"demand-pull" strategy to target specific groups of
promote increased fertilizer use farmers
has several potential • producers of certain crops,
advantages: • producers located in specific
regions
• or production environments,
• or producers who fall into a
particular social stratum or
income class.
– IFDC program in Malawi
used input vouchers as
payment for work by poor
farmers on rural road
projects.
6/21/2012
24. – Vouchers can build additional demand for
fertilizer and thus accelerate fertilizer market
development if the targeted farmers are not
already using fertilizer.
– Voucher programs can be designed to run for
a number of years, during which time
fertilizer subsidies are gradually removed so
that farmers and distributors can make the
transition to an economically sustainable
cash market.
25. Input Vouchers: Used To Promote Fertilizer Use?
Use of voucher programs •Voucher programs can be
costly to design and
has some potential
disadvantages as well:
– implement, particularly if
subsidies are involved that
entail special measures to
control corruption and rent
seeking.
• Voucher programs can fail
to achieve their objectives if
convertible vouchers are
purchased by intermediaries
and a secondary market
emerges for their resale and
6/21/2012 use
26. Impact CNFA:
• Impact,:
– Value chain level
• 4,300 Agro dealers in Kenya, Tanzania, Mali and Malawi engaged in facilitating access to
inputs and technologies;
• 1.8 million farmers accessing inputs;
• 84 Agribusiness companies in Input Supply chains engaged;
– Documented Impact at Farmer Level
• 86% of Farmers in Malawi used Hybrid Maize seed in 2007/08 compared to 20% in
2003/04;
• 92% of farmers in targeted areas used fertilizer at a higher rate of 76% compared to
non-targeted areas in western Kenya;
• Mean productivity in western Kenya targeted areas increased by 115% between 2004
and 2007.
6/21/2012
Africa has few navigable waterways, so bulky goods such as fertilizers must be transported long distances overland on poorly maintained road and rail systems. Africa has the world’s fewest kilometers of paved roads per capita. For example, Uganda has 94 kilometers (km) of paved road per one million people and Mozambique, 141 km. In contrast, France has 12,987 km of paved road per million people and the United States has 20,987 km (as of 2006).
Fertilizer programs have been recommended for meeting more narrowly defined and specific goals such as soil fertility restoration and natural resource management; but most such programs can be classified as a subset of either welfare or growth goals based on intended outcomes