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Prof. g mrema overview of the experience of the public sector in the provision of am hire services
1. A Regional Overview of the Experience of
the Public Sector in the Provision of
Agricultural Mechanization Hire Services
AUC/ACT/FAO Workshop, Kampala, 9 – 12 December 2019
Geoffrey C. Mrema
Professor of Agricultural Engineering
Sokoine University of Agriculture, Morogoro, Tanzania
2. The agricultural mechanization process
Impact of shifting paradigms on agricultural
mechanization development in SSA
Lessons from the past experience
Tractor hire services
Commercial sustainability of mechanization
in SSA
Challenges and opportunities
Sustainable institutional framework
Concluding remarks
Outline of the Presentation
3. The Agricultural Mechanization Process - 1
Six basic stages in the agricultural mechanization
process:
− Stage 1: Power substitution stage – from animate to
mechanical power
− Stage 2: Mechanization of human control functions –
weeding, harvesting etc.
− Stage 3: Adaptation of the cropping system to the machine:
broadcasting to row planting; inter-cropping to mono
cropping - difficulties in mechanizing former,
− Stage 4: Adaptation of farming system to facilitate
mechanization: land consolidation; minimum & zero tillage
systems etc.
− Stage 5: Adaptation of the crops to mechanization systems:
Plant/animal breeding to facilitate harvesting, reduce
lodging; peeling etc.
− Stage 6: Automation of agricultural production: automated
production processes – precision application of fertilizers,
pesticides, automated livestock feeding systems etc.
4. The Agricultural Mechanization Process - 2
Most of SSA is still at stage 1 especially on
on-farm field operations
Progress achieved in post-harvest
processing – milling of grains
Stage 1 still very basic in most of SSA –
animate muscles are still mostly human
unlike Asia where draft animal technology
has been used for centuries
5. 50
54
70
85
32
21
22
11
17
25
8
4
0% 20% 40% 60% 80% 100%
Eastern Africa
Southern Africa
Western Africa
Central Africa
% cultivated area
hand DAP tractors
Primary land preparation in Africa, south of the
Sahara (2005)
6. The Agricultural Mechanization Process - 3
The role of farm power in increasing agricultural
productivity globally first hypothesized in 1965 by Prof.
Giles:
◦ Farm power with fertilizers, improved seeds [HYVs], irrigation and pesticides -
are interdependent for growth in agricultural productivity and overall growth
◦ First study to systematically link use of farm power with increased
yields of the green revolution [GR] of 1960s
◦ Success of the GR of 1970s in Asia attributed mostly to use of HYVs;
fertilizers and irrigation and the role of farm power not factored in
Mechanization experience from USA & Europe during 1925
– 65:
◦ According to Smith(2000) the tractor was the “Unsung Hero” of 20th
Century USA economic growth – replaced 24 million draft animals
during 1925 to 1955.
◦ Similar developments occurred in Europe between 1945 and 1965 which were
significantly assisted by the USA funded Marshall Plan
7. Governments played inordinate roles in all
mechanization in other parts of the world
Government THS started from 1950s in UK colonies
with land clearing units and ploughing services
Government assistance accelerated at independence n
1960s in most colonies in Africa and Asia
In Africa assistance directed more to settler farmers
and a few yeoman indigenous farmers
At independence in 1960, the advent of mechanization
in developing countries of Asia, Africa & LAC was then
equated to ‘tractorization’ was taken for granted by
most development experts & politicians
The Agricultural Mechanization Process - 4
8. The Agric. Mechanization Process - 5
Assumed use of tractors would become widespread
through:
Direct ownership of tractors by farmers
Or through hire services owned by the public sectors
Through hire services owned by the private sector
Cooperatives _ Played key role in procuring and offering
THS
State farms were established in many countries – Ghana
Political support for AM quite strong throughout SSA
Result of this not very good for the Government owned
THS led to Machinery graveyards of 1960s
This gave Credence to the evolutionary path of Dumont et
al 1967 False Start bin Africa
9. Shifting paradigms on agric. mechanization 1
Debate on ‘tractorization’ quite heated in 1960s & 70s due to socio-economic
consequences [equity & unemployment] and economic issues [foreign
exchange; small vs large farms etc.]
ILO commissioned in 1970-73 several studies in Asia, Latin America & Africa
demonstrating the unemployment effects of tractorization
FAO & OECD convened a Global expert consultation on tractorization and
employment in Rome in 1975 which recommended:
Appropriate mechanization depending on level of development and need for
countries to develop agricultural mechanization strategies
Capacity building human resources and institutionally especially on advisory
services
UNIDO focused on manufacturing of machinery and implements – several reports
published & World Bank published a series of major reports on mechanization in
developing countries in 1985/88 – rather negative on tractorization
World Bank 1987 study against tractorization and pushed for emphasis on
draft animal technology – establishment of many DAT Networks in SSA.
10. Shifting paradigms on agric. mechanization 2
Lack of consensus led to a declining
interest in mechanization among major
global development agencies from 1985 to
2005 seriously affected developments in
SSA;
OUTCOME - Different scenarios at the turn
of 21st century resulting from the different
paths followed during last quarter of 20th
century [FAO, 2008]
World Bank Study of 1987 critical
11. Shifting paradigms on agric. mechanization 3
Led to emphasis on DAT Networks by
Governments & abandonment of THS during
1985-2005
Declining imports of tractors and implements
Government THS were less than 20% of tractor
fleet remaining 80% in private sector hands
No lessons being drawn from the 80% but too
much focus on the failed 20% Government THI
Success in PH Processing Grain milling –almost
100% private sector owned e.g. SIDO Mills in
TZ despite strong competition from Indian and
Chinese mills
12. Global number of tractors in use by region
1961 - 2000
0
2
4
6
8
10
12
14
1961 1970 1980 1990 2000
NumberofTractorsinuse(Millions)
Asia North America Sub-Saharan Africa
Europe Latin America & Carribean Near East
13. Growth in tractor numbers used in agriculture in
different countries (1950-1990)
23 47
84 112 129
48
148
220
181 184
9 31
148
393
988
1.4
116
165
738
826
0
200
400
600
800
1000
1200
1950 1960 1970 1980 1990
NumberofTractors(Thousands)
SSA(Excl. South Africa) South Africa India China
*
14. Lessons from the past experience
Factors critical to the uptake of tractors in Asia [FAO, 2008];
Presence of sizable number of medium size farmers [MSFs] who
were:
Viable entities to invest in machinery – farming commercially
& producing for the market
Availability of credit – in some cases subsidized
Entrepreneurial skills & adaptive management capacity of
farmers
To respond to markets and technologies
Ability to use tractors for off-farm work – up to 50% of
annual use
Supportive industrialization and agricultural policies
Profitability of manufacturing and farming enterprises led to
Effective demand of equipment facilitated by rising wages
Exploit low lying fruits first i.e. start with priority areas e.g.
Groups [medium scale farmers];
15. Lessons from the Asian experience …
Mechanization should be viewed strategically and
from a lonterm perspective – ignore negative
short term studies
Mechanization is a complex and dynamic process
impacting differently on different groups – impact
should be carefully planned when systems have
matured and
Political leaders can support mechanization but
governments should not be involved in directly
offering services but create enabling
environments
Having a longterm vision and remaining steadfast
on it was critical for success in Asia – ignore
immediate inequities for long term development
16. Tractor hire services
Three periods may be identified.
1. 1961 to the mid-1970s – increase in number of
service providers as a result of government
interventions supporting tractorization.
2. Mid-1970s to late 1990s - the number of service
providers declined with the closure of government
supported hiring services
3. Early 2000s to date - number of service providers
increasing due to increased importation of tractors
as a result of government led facilitation of low
interest loans
17. Building sustainable systems for importation, manufacture, distribution
& Servicing of mechanization inputs
• The agricultural machinery and implements sector is quite small in
many countries in Africa
• The importation sector for agricultural machinery and implements is
dominated by a multitude of very small-scale private-sector actors –
need to consider sub-regional level enterprises
• Many countries in Africa have traditionally opted to use the
government system to directly import agricultural machinery because
volumes not large enough to attract viable quantities
• To establish and operate viable entities to manufacture agricultural
machinery and implements, set standards, carry out testing, support
franchises for distribution, repair & maintenance – sub-regionally
“Making agricultural mechanization in
Africa commercially sustainable”
18. “Low number of Tractors per Country – sustainability &
viability of Agricultural Machinery franchises”
19. 31.25
46 51
60 62 68
81.25
128
163
0
20
40
60
80
100
120
140
160
180
High cost of plowing 1 ha (in US$) - 2014
Source: FAOSTAT/IFPRI-2014
US
20. 4WT performance and profitability
Anecdotal evidence and limited data from
several studies show that the profitability and
sustainability of Tractor Hire Services is very
much dependent on:
generating off-farm work especially during the off
season
work in other parts of the crop production value chain
work in other districts where the land preparation
season is in different months of the year.
It is unlikely that THS based on 4WT which
concentrate on land preparation activities and
are located in one district throughout the year
are going to achieve utilization rates of more
than 400 hrs.
21. Challenges and opportunities
Availability of loans from commercial banks for the
purchase of agricultural machinery is very limited.
Accessibility of fuel, lubricants and repair services was
satisfactory as more than 85% of tractor owners’
access the facilities within 5 km. in many countries
Repair and maintenance services are mainly provided
by mechanics in small garages found in various small
towns and village centres.
Mobile mechanic services are also available when
tractors are operating in distant places from their
homes.
Spare parts are mainly sourced from machinery
dealers (sometimes 50-300 km away) as their agents
or spare parts stockists/traders usually have limited
stocks.
22. 0
200
400
600
800
1000
1200
1960 1980 2000 2020 2050
NumberofPopulation(Millions)
Rural Population
Urban Population
*
*
* Projection
Population in Africa, south of the Sahara
(Source UNFPA)
23. 0
10
20
30
40
50
60
70
Ghana Kenya Tanzania Zambia
%ofareaowned
Area owned/controlled by small-scale (0 - 5 ha), medium-
scale (5- 100 ha) and large-scale (>100 ha) farm holdings
in 2015
Small scale Farms
Medium scale Farms
Large scale Farms
Areas of different farm sizes in four countries in
2015 (Source: AASR 2016 – Chapter 2 - Jayne &
Amayew)
25. Creating sustainable institutions for regional cooperation and
networking
• The current market for agricultural machinery and implements in each
individual country in most countries in Africa is relatively small
• Regional cooperation offers a mechanism to bring countries together to
tackle common problems and learn from each other
- A study on the capacity and resources of current institutions and
organizations
- Review of existing and past models for regional collaboration
- A feasibility study on the establishment of a regional coordinating
mechanism
- Development of projects & programmes for the involvement of the
Regional Economic Communities
- Strengthening of regional capacity
- Fostering South - South collaboration
Need for creation of sustainable institutions
26. Institutional Framework – Asia Experience 1
Superintended by the United Nations Economic and Social
Commission of Asia Pacific [UNESCAP] since the 1960s
UNESCAP established RNAM – Regional Network for Agricultural
Mechanization as its flagship network covering all countries
RNAM was a network of national agricultural mechanization R&D
as well as manufacturing entities & became very strong by mid
1970s based in Phillipines.
By late 1990s RNAM evolved into the Asian Pacific Centre for
Agricultural Engineering and Mechanization [APCAEM] and based
in Beijing but under UNESCAP.
APCAEM funded through a PR China trust fund grant to the
UNESCAP and has evolved to CSAM – Centre for Sustainable
Agricultural Mechanization.
26
27. Institutional Framework – Asia Experience 2
CSAM quite active with several affiliates such as
ANTAM –Asian Network for Testing Agricultural
Machinery – highly regarded internationally
CSAM continues to operate under the UNESCAP
framework with its own governance structures – Council
of Ministers etc
CSAM developed, with FAO- Bangkok, the SAMS –
Sustainable Agric Mechanization Strategy of the AP
region approve in June 2014.
It has a very active information exchange and
publications program which is highly regarded by
member countries
Trade in Agricultural Machinery and implements in the
AP region largest in the World greater than even North
America and Europe 27
28. Concluding Remarks
Geographic patterns of service provision are often
conditional on the homogeneity or heterogeneity in
agro-ecological conditions.
Too much research attention has been focused on
the public sector owned and operated tractor hire
services (controlling less than 20% of the tractor
fleet in the different countries.
Privately owned THS have not been adequately
studied.
Need for more research on their profitability/
economic viability and longterm sustainability of
their business models.
This should be the main task of an Africa based
organization like CSAM in Asia
29. Concluding Remarks
In conclusion we note a quote from over 52 years ago:
‘……. One is impressed by the diversity of experiences with
animal-drawn and tractor-drawn implements in tropical Africa
and by the fact that no comprehensive effort is apparently being
made to analyse these experiences and make conclusions of this
analysis available to all countries in tropical Africa. The chronic
tendency to repeat mistakes will remain as long as there is no
proper and easily accessible record and analysis of past
experience. The urgency of improving and increasing the
equipment for African agriculture cannot be denied.
Unfortunately, all the experience of the past has provided
warnings of difficulties, but few concrete guidelines for a more
positive approach. In many cases for instance, it is difficult to
determine whether mechanization has failed because it was
inherently uneconomic, or because it suffered from certain
technical and managerial problems that could have been avoided
or overcome…..’. [de Wilde, 1967].
Dr. de Wilde then a retired Vice President for Economic Affairs at
the World Bank made these remarks after leading a year long
review of agricultural development in what were then categorized
as countries of Tropical Africa
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30. Concluding Remarks …
Dr. De Wilde goes on then on pg 130-131 of
his book to make recommendations on
establishing a regional mechanism to help
African countries in planning their
mechanization programs and projects.
Over the past 50 years there have been
several unsuccessful efforts in this regard.
Let us hope that the current efforts through
the AUC and SAMA Framework will lead to
the establishment of right mechanism.
Thank you.
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