mAgri Webinar: Mobile market information systems for farmers: requirements for success

Webinar - Mobile market
information systems for
farmers: requirements for
success

09.10.12

#magri

Restricted - Confidential Information © GSMA 2011

mAgri Webinar: Mobile market information systems for farmers:
requirements for success

Agenda

14.00 Introduction & GSMA insights
14.10 Overview: Agricultural Market Information Systems (MIS)
14.15 Impact of Market Information Systems Activities on
Market Performance in Mozambique
14.20 MIS Pre-requisites & Best Practices
14.30 Case study: Esoko Malawi
14.45 Q&A
15.00 End

#magri Restricted - Confidential Information © GSMA 2011


Expert Panel
John Zoltner, Director, Information Technology Applications Department
(ITAD), FHI 360

Andrew Kizito, Lecturer, Department of Statistical Methods and Actuarial
Science, Makerere University, Uganda

Shaun Ferris, Senior Technical Advisor - Agriculture and Environment,
Catholic Relief Services

Robert Turner, Chief of Party, Market Linkages Initiative, ACDI/VOCA
Malawi



Introduction & GSMA insights

Amol Jadhav,
mAgri Project Manager,
GSMA Mobile for Development

www.gsma.com/magri



The mFarmer Initiative
Objective:
 To create and scale sustainable mobile solutions enabling
over 2 million poor smallholder farmers to obtain critical
agricultural information

Vision of Success:
 Improvement of poor farming households’ resilience and
decision making as a result of access to relevant
agricultural information through sustainable business
models and continuous learning.

 In partnership with the Bill & Melinda Gates
Foundation and USAID
Restricted - Confidential Information © GSMA 2011


Mobile MIS: GSMA lessons
so far
 Bundled services
 Partner with existing MIS
 Quality assurance
 Tigo Tanzania Agri VAS pilot
results (see blog at
www.gsma.com/magri)

 Impact of mobile MIS- mixed
results


Overview: Agricultural Market Information Systems (MIS)

John Zoltner
Director, Information Technology Applications Department
(ITAD)
FHI 360



What is an MIS?

Market Information System
– A set of integrated and coordinated processes and tools to deliver
agricultural market information and services

Services provided respond to specific needs of a community, market or value
chain
– Price data collection, analysis and distribution
– Linking traders and supporting transactions
– Related services, such as agricultural extension information or weather
alerts



Why use an MIS?

MIS are designed to increase market transparency to:
– Increase revenues for smallholder farmers
– Lower transaction costs for traders
– Lower cost of goods for consumers

Allow governments to track trends in availability or food commodities to create
policies or react to shortages



History of MIS

Collection and distribution of crop prices in Africa dates back (at least) to
colonial times

Radio, faxes and email accelerated and extended price reporting

Web platforms further accelerated and organized the data over time

Mobile platforms customized the data and made it ubiquitous – or hold that
promise



First Generation MIS

Grew out of Famine Early Warning efforts , such as USAID’s FEWSNET (1984)
Focused on particular countries or value chains
Provided price information only – obtained from sample markets
Activities were donor dependent and provided for free
Examples:
– OMA – Agricultural Market Observatory, Mali
– AMIC – Zambia
– SIMA – Mozambique



Second Generation MIS
Led by private sector or farmers’ / traders’ associations – generally not by governments
Market prices integrated with other relevant information and services, such as:
– Input price information
– Agricultural extension advice
– Weather forecasts
– Platforms to link producers with traders
Leverage modern technologies: web and mobile
Attempting to develop sound business models: links with trade organizations, user
fees, advertising

Examples:
– Esoko
– Infotrade (Uganda)
– RATIN (Kenya)


MIS Innovations

Distribution of information personalized for recipients via mobile
New methods of price monitoring:
– GIS and POS
Better integration for trade: Matching traders and producers, Integrating with
commodity exchanges

Better regional integration:
– RESIMAO
– AAMIS-Net


Community Power for Mobile

Impact of Market Information Systems Activities on Market
Performance in Mozambique

Andrew Kizito,
Lecturer, Department of Statistical Methods and
Actuarial Science,
Makerere University, Uganda

Paper Co-authored by Cynthia Donovan, and John M. Staatz
www.aec.msu.edu/fs2/papers/idwp124_revised.pdf



Factors that Influence
Receiving Market Information
Growing marketable staples
Ownership of Radio
Cell phone Network in Village
Roads with public transport
Proximity of administrative post
Belongs to associations.
Extension
Level of Education
Agro-ecological zones



Effects of Receiving Information on Market Participation
and Prices

Receiving information increased probability of market
participation by 34%

Information premium of 12% per kilogram
Benefit-Cost Ratio of 6
Conclusion: MIS was a socially profitable investment



Implications for MIS Improvement and Design

Provide information on major marketable staples.
Make radio and cell phones important diffusion channels
Make associations and groups important MIS clientele.
Make government and NGO extension staff MIS clientele.
Focus in areas with potentially high supply response.
Improve feeder roads
Decentralize information systems
Invest in universal education


mAgri Webinar: Designing & Marketing Mobile Information & Advisory
Community Power for Mobile
Services for Women Smallholders

MIS pre-requisites and best practices

Shaun Ferris
Senior Technical Advisor - Agriculture and Environment
Catholic Relief Services



Success Factors

 Valued and Trustworthy
 Built to fit
 Client focused
 Promoted and supported
 Scalable
 Multi-channel
 Long-term
 Constantly upgraded
 Viable Business model



Valued and Trustworthy

Any MIS data must be
– Accurate
– Relevant to the target group
– Timely
– Accessible
– Reliable
– (most services have failed on all
factors)
– Well trained motivated
enumerators



Built to Fit the Purpose

Market information (Spot prices)
Market intelligence (Prices Plus)
Market linkage (Brokerage)



Client Focused
Segmented
– Smallholder grain farmers
– High value horticulture farmers
– Export product farmers
– Livestock farmers
– Commercial farmers Local language Radio gets to
target communities
– Traders
Local language
– Major groups
Crop Focused
– Grain crops
– Fruit and Vegetable
– Livestock
– Cash crops (traditional export crops)


Promoted and supported

Posters
Radio spots
SMS blasts
SMS linked to discount offers
Educational shows
Billboards
Road shows
Linked to key actors / projects
Linked to key ministries



Scalable National MIS
Geography Radio Coverage 13 Stations
– District, national and regional MIS
– National was the most successful
– Recommend national level units


Multi-channel

Farmers Local traders Wholesalers Formal traders

Neighbours
Traders
Radio
Mobile
Web
E-boards
Boards


Long-term

MIS needs years to be known and build trust
2 years to get known
3 regular use by progressive farmers / groups
4+ adopted more mainstream
5 ready for add on’s



Constantly reviewed for upgrading

Market conditions change
Quality control vital in first 2-3 years
Evaluation of use and needs
New technologies / applications
Embedding into other services
Addition of services



Business Model

 Good value if a public goods service
 A good “fit” if an embedded service
 Profitable if a stand alone


mAgri Webinar: Designing & Marketing Mobile Information & Advisory
Services for Women Smallholders

Case study: Esoko Malawi

Robert Turner
Chief of Party, Market Linkages Initiative
ACDI/VOCA Malawi

#magri


Market Linkages Initiative Malawi MIS

Started Jan 2011 with USAID funding Mzimba

Jenda

Esoko Web-to-SMS platform and Madisi

methodology Dowa

Mchinji

Started with 13 markets, ~4,000 Lilongwe
Thondwe

Limbe
farmer recipients Mitundu

Phalombe
Lizulu

Mkando

Staple food crops – maize, rice, soya,
Chikwawa

groundnuts, beans
Original Network



Methodology

Generally Esoko methodology with
local input

Local measures converted by market

Multiple vendors, most quoted price

Prices uploaded via mobile on market
days (retail, wholesale… and buying)



Methodology cont’d
Reviewed and approved via web by administrator before posted
Unusual prices addressed to enumerator or to key informants



Esoko Malawi MIS Current Network

Enumeration funding / mgt now with
Agricultural Commodity Exchange
Now 28 markets and sunflower,
sorghum added
ACE agents collect prices but also
facilitate MSME trade over the
exchange



Esoko Malawi MIS
WFP contract ACE to collect prices
for M&E

Commercial value of all markets not
yet known

Esoko will market price information to
farmers and revenue share with ACE



Commercial Sustainability

Esoko chosen for technology and local business model
MLI working with Esoko to develop local resellers
Commercial sustainability of price information is possible, but product and
marketing are key

MNOs are natural partners
Products must included more than prices – weather, agri-tips, offers, etc.



Government Service?

Many governments already collecting
price information

Widespread recognition of need for
MIS (ASWAP)

Current system unable to meet needs
for market use (timeliness,
consistency, accuracy)

Case can be made for cost of MIS vs.
cost of market interventions



Four day event comprising a mix of presentations, panel sessions, working groups and breakout
sessions, as well as a day of field trips. Conference topics will include:
Trends impacting on value chain development
Value chain innovation
Enabling environments
Sustainability and scaling up
Capacity development http://makingtheconnection.cta.int

#magri

Q&A

mAgri@gsm.org
www.gsma.com/magri
Twitter: @GSMAmAgri

Join the mAgri distribution list
www.gsma.com/mobilefordevelopment/develo
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