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Market Integration of Small Holder
    Farmers through CA in Zimbabwe




Michael Jenrich, FAO ZW
Summary
 Smallholder farming in Africa is largely subsistence based
 Little or no market integration, few farmers generate
  income (support for food security..)
   low yields (food insecurity)
   poverty and migration
   low investments (e. g. mechanization, irrigation, improved
    inputs and credits)
 Many small holders’ lands holdings could be sufficient to
  generate income, if utilized efficiently
   farmers are not able to increase production and productivity
   lack of access to markets, funding and adequate technical
    support
 Involvement of private sector would be key for change
  (input, output, capital), but does require productivity
  increases as entry...
Background
Background
 Low productivity, farmers don’t make money
 Rural families do not see farming as a way to generate
  income
 Governments support for agriculture, specially small
  holders is low
 Private sector involvement is very limited, small holder
  sector is “problematic” (small areas, low yields, poor
  infrastructure, farmers not organized, insecure
  tenure, no credit, poor track record...)
 Result: →even less money and migration
  (poor old weak and uneducated stay behind)
Limiting factors
 Funds, credits, collateral
 Low yields, poor farming practice
 Inputs
 Markets
 Farmers’ organizational set up
 Bad track record
 Infrastructure
 Tenure
Interventions
 Improve yield levels swiftly and sustainably and
  without major capital investments.
 Integrate farmers into input and output markets
 Support farmers to organize
 Complement with extension and training
 Initial funding and credit systems
Support Activities

 Improved land and crop management (CA+)
 Input and Output Support (Contract
  Growing, including initial funding)
 Community and Farmer Capacity Building
 Part funding
Improved land and crop management
(CA +)
 CA is central, provides quick & reliable way to
  increase and stabilize yields without capital
  investments
 Farmers are achieving higher production levels
  and production security, which is attracting
  private sector
 Improved productivity opens opportunities to
  participate in markets and generating on farm
  incomes
Improved Agronomy, builds confidence
 CA, (backed by strong extension, IPM, etc).
  Precise & Timely (planting holes), increasing yield
   potentials significantly
  Inputs (lime, fertilizer, manure) used efficiently
   (concentrate in planting basins)
  Reducing costs
  Farmers can do the land preparation in the dry
   (winter, off season)
  Land preparation by hand maybe seen as a step backwards, but it
    gives resource poor farmers an opportunity to do land preparation
               timely and precise and establish crops well...
  Timely and precise operations through CA is giving
   private sector confidence to invest
Complementing activities
 Initial input support, based on market
    agreement
   Capacity building, in cooperation with farmers
    unions
   Monitoring & arbitration (if needed)
   Credits (inputs or bank guarantee) for private
    sector
   Weather insurance
   CA machinery development and contracting
   Plant protection and fertilizer contractors
Ongoing
 Link private sector to farmers (this season
  20.000 farmers, Ø 1ha each)
 Support –and supervise- contract growing
  agreements
 Integrate relevant stake holders (farmers, private
  sector, farmers unions, government and donors)
 Lobby for role out...... (policy & private sector)
Crops
 Maize, Sorghum
 Paprika, Chilly
 Seed
    (Cowpea, Sorghum, Groundnu
    ts, OPV maize, Beans)
   Cotton
   Tobacco
   Plantation
    (Tea, Coffee, Bananas)
   Soya, Cowpea
   Livestock
Impacts
 Currently 20.000 farmers (12 companies >
  20.000ha, requests for 50.000 farmers)
 Significant impact on HH and economy
 Funds goes to and circulates in rural areas
 Indirect income (weeding at $ 5/day in
  plantation areas)
 Potential for huge scale up in region
Lessons
 Some small holders can and will commercialize
    if supported appropriately (change of
    agronomy & mind set)
   Many small holders can generate sufficient
    income from their farms
   Private sector could facilitate the utilization of
    the vast potential of small holder agriculture
   Farmers, private sector and economy benefit
   Inputs, credits, tenure security, extension
    systems need to be improved parallel
Conclusion
 Through CA small holder farmers can improve
  productivity, link to private sector and
  commercialize swiftly and without major capital
  investment
 Given the vast potential of South Eastern
  Africa, CA in combination with market linkages
  can unlock huge farming potentials in the region
 CA could be part of the key to increase very low
  yields and productivity in the region...
Market integration of small holder farmers through CA in Zimbabwe michael jenrich
Market integration of small holder farmers through CA in Zimbabwe michael jenrich

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Market integration of small holder farmers through CA in Zimbabwe michael jenrich

  • 1. Market Integration of Small Holder Farmers through CA in Zimbabwe Michael Jenrich, FAO ZW
  • 2. Summary  Smallholder farming in Africa is largely subsistence based  Little or no market integration, few farmers generate income (support for food security..)  low yields (food insecurity)  poverty and migration  low investments (e. g. mechanization, irrigation, improved inputs and credits)  Many small holders’ lands holdings could be sufficient to generate income, if utilized efficiently  farmers are not able to increase production and productivity  lack of access to markets, funding and adequate technical support  Involvement of private sector would be key for change (input, output, capital), but does require productivity increases as entry...
  • 4. Background  Low productivity, farmers don’t make money  Rural families do not see farming as a way to generate income  Governments support for agriculture, specially small holders is low  Private sector involvement is very limited, small holder sector is “problematic” (small areas, low yields, poor infrastructure, farmers not organized, insecure tenure, no credit, poor track record...)  Result: →even less money and migration (poor old weak and uneducated stay behind)
  • 5. Limiting factors  Funds, credits, collateral  Low yields, poor farming practice  Inputs  Markets  Farmers’ organizational set up  Bad track record  Infrastructure  Tenure
  • 6. Interventions  Improve yield levels swiftly and sustainably and without major capital investments.  Integrate farmers into input and output markets  Support farmers to organize  Complement with extension and training  Initial funding and credit systems
  • 7. Support Activities  Improved land and crop management (CA+)  Input and Output Support (Contract Growing, including initial funding)  Community and Farmer Capacity Building  Part funding
  • 8. Improved land and crop management (CA +)  CA is central, provides quick & reliable way to increase and stabilize yields without capital investments  Farmers are achieving higher production levels and production security, which is attracting private sector  Improved productivity opens opportunities to participate in markets and generating on farm incomes
  • 9.
  • 10. Improved Agronomy, builds confidence CA, (backed by strong extension, IPM, etc).  Precise & Timely (planting holes), increasing yield potentials significantly  Inputs (lime, fertilizer, manure) used efficiently (concentrate in planting basins)  Reducing costs  Farmers can do the land preparation in the dry (winter, off season) Land preparation by hand maybe seen as a step backwards, but it gives resource poor farmers an opportunity to do land preparation timely and precise and establish crops well...  Timely and precise operations through CA is giving private sector confidence to invest
  • 11. Complementing activities  Initial input support, based on market agreement  Capacity building, in cooperation with farmers unions  Monitoring & arbitration (if needed)  Credits (inputs or bank guarantee) for private sector  Weather insurance  CA machinery development and contracting  Plant protection and fertilizer contractors
  • 12. Ongoing  Link private sector to farmers (this season 20.000 farmers, Ø 1ha each)  Support –and supervise- contract growing agreements  Integrate relevant stake holders (farmers, private sector, farmers unions, government and donors)  Lobby for role out...... (policy & private sector)
  • 13. Crops  Maize, Sorghum  Paprika, Chilly  Seed (Cowpea, Sorghum, Groundnu ts, OPV maize, Beans)  Cotton  Tobacco  Plantation (Tea, Coffee, Bananas)  Soya, Cowpea  Livestock
  • 14. Impacts  Currently 20.000 farmers (12 companies > 20.000ha, requests for 50.000 farmers)  Significant impact on HH and economy  Funds goes to and circulates in rural areas  Indirect income (weeding at $ 5/day in plantation areas)  Potential for huge scale up in region
  • 15. Lessons  Some small holders can and will commercialize if supported appropriately (change of agronomy & mind set)  Many small holders can generate sufficient income from their farms  Private sector could facilitate the utilization of the vast potential of small holder agriculture  Farmers, private sector and economy benefit  Inputs, credits, tenure security, extension systems need to be improved parallel
  • 16. Conclusion  Through CA small holder farmers can improve productivity, link to private sector and commercialize swiftly and without major capital investment  Given the vast potential of South Eastern Africa, CA in combination with market linkages can unlock huge farming potentials in the region  CA could be part of the key to increase very low yields and productivity in the region...