cnfa/rumark 2009 fanrpn regional policy dialogue and agm by george j. magai country director - cnfa...
TRANSCRIPT
CNFA/RUMARK2009 FANRPN REGIONAL POLICY
DIALOGUE AND AGM By
George J. MagaiCountry Director - CNFA
Managing Director - RUMARK31 AUG – 04 SEPT 2009
• Ghana
• Kenya
• Malawi
• Mali
• Burkina Faso
• Uganda
AGRODEALER STRENGTHENING
PROGRAM COUNTRIES
• Mozambique
• Nigeria
• Tanzania
• Angola
• Niger
• Senegal
Quick Facts• CNFA establishes local marketing trusts that facilitate
private sector participation and investment in the agrodealer programs
• Through these programs the local trusts have established strong private sector networks which include:
Over 6000 locally owned Agrodealers with annual input sales of over $100 million
Over 80 National and International Agricultural Supply Companies
Over 30 National and International Financial Institutions
든Working with our partners we have been able to directly benefit the lives of over 2.5 million small-holder farmers
Key Problems & QuestionsKey Problems & Questions
• Low use of farm inputs by smallholders
• Low yields
– Smallholder farmers lack access to farm inputs and services
– Smallholder farmers lack information and knowledge about the farm inputs.
– Inputs and other services are expensive
– Smallholder farmers do not have adequate information and access to markets for agricultural products
Question
How do we increase the
use of farm inputs and
services?
- Sustainably?
- Cost effectively?
- At scale?
Question
How do we increase the
use of farm inputs and
services?
- Sustainably?
- Cost effectively?
- At scale?
CNFA’s Development HypothesisCNFA’s Development Hypothesis(the Premier Agrodealer developer)(the Premier Agrodealer developer)
• Farmers will increase use of inputs and services if they are readily accessible and affordable.– AgrodealersAgrodealers ( rural stockists) ( rural stockists) in farming communities need in farming communities need
strengthening as the last link in the commercial input strengthening as the last link in the commercial input marketing chain.marketing chain.
– Input supply companies & financial agencies need incentives Input supply companies & financial agencies need incentives & support to work with rural agrodealers. & support to work with rural agrodealers.
– Private sector is responsible & most suited to deliver inputs to Private sector is responsible & most suited to deliver inputs to farmers.farmers.
• Private sector- based approachPrivate sector- based approach– Strengthen and build sustainable linkages between Strengthen and build sustainable linkages between
enterprises in the input and output marketing systems- enterprises in the input and output marketing systems- suppliers, buyers (large/institutional), agrodealers & farmers.suppliers, buyers (large/institutional), agrodealers & farmers.
– Promote market-based policy interventionsPromote market-based policy interventions Result: increased flow of inputs into rural communities.Result: increased flow of inputs into rural communities.
The CNFA Inputs Model The CNFA Inputs Model
Cash, Voucher or Credit
Inputs & Knowledge
Financial Organizations
Input Supply CompaniesRegional Wholesalers &
Rural Agrodealers
Loans for inputs
Cre
dit
Gu
aran
tees
Commercial Trainers
Supply Companies
Business Mgt Training
Inputs on Credit
Product Training
Public AgenciesTraining on Regulations
Commercial Relationships
Smallholder FarmersMFI
Community Mobilizers
Voucher
Dem
onst
rati
on P
lots
, Fie
ld D
ays,
& E
xhib
itio
ns
Cash, Voucher or Credit
Inputs & Knowledge
Financial Institutions
Input Supply CompaniesDistributors &
Rural Agrodealers
Loans for inputs
Cre
dit
Gu
aran
tees
Business Mgt Training
Inputs on Credit
Product Training
Public AgenciesTraining on Regulations
Commercial Relationships
Smallholder Farmers Financial InstitutionsVoucher
Ru
ral B
ased
agr
odea
ler
Ass
ocia
tion
/far
mer
gro
up
sFor
mat
ion
Dem
onst
rati
on P
lots
, Fie
ld D
ays,
& E
xhib
itio
ns
The CNFA Output Marketing ModelThe CNFA Output Marketing Model
OUTPUT MARKET FACILITY
MANAGED BY AGRODEALERS OR
OTHER ENTERPRENEURS
Training, Linkages,
Financial Support & Services
Training Financial Services
Demand Creation &
Technical support
Inputs and
Advisory Services
Buyers to market
Quantity & Quality ProduceOutput
Inputs and
Advisory Services
Technical & Management Services
Output Marketing
Info & Promotion
Business
Management Training
E.g PCB, MoA, AITA, STAM
E.g Fertilizer (optichem), Seeds(MONSANTO, SeedCo)
and Chemicals (C&M, FO)
E.g. RAB Processors, WFP,Mulli, ACE platform
E.g. MRFC, FMB, OIBM, First Merchant Bank
Institutional ArrangementInstitutional Arrangement
DEVT. PARTNERS
E.g AGRA,MoA&FS, USAID
RURAL AGRODEALER
Training on
RegulationsSmallholder FARMERS
Information on use of outputs and demand creation
Loans for
Inputs
Product Knowledge Inputs on Credit,
Training & Demos on Products
Focus on Agrodealers & FarmersFocus on Agrodealers & Farmers
•Training in product knowledge, use, safety
•Company demos of products, technologies
•Public Sector training on regulations
•Business training from independent trainers
•Training on output marketing
Access to Finance:
Agrodealers
Smallholder Farmer
Smallholder Farmer
Informationon Inputs &
Use
Exposure to products and technologies
•Trade credit from supply companies for inputs
•Working capital loans for inputs from Financial Organizations
•Assistance to establish output marketing enterprises
Capacity Building:
Outputs sold to agrodealers
STRENGTHS: 1) Business Skills TrainingSTRENGTHS: 1) Business Skills Training
Training in business management of agrodealers has Training in business management of agrodealers has improved their businesses. Over 1,400 agrodealers trained improved their businesses. Over 1,400 agrodealers trained and certified to-date.and certified to-date.
STRENGTHS: STRENGTHS: 2) Technical Training2) Technical Training
Product Knowledge Product Knowledge Training in Training in collaboration with collaboration with Pesticides Control Pesticides Control Board (PCB), Input Board (PCB), Input supply companies supply companies and research org. and research org. has improved has improved knowledge on knowledge on InputsInputs
STRENGTHS:STRENGTHS: 3) Demand Creation 3) Demand Creation
Demand Creation have:Demand Creation have:• Facilitated companies and Agrodealers to conduct field Facilitated companies and Agrodealers to conduct field
demonstrations & field days in rural areasdemonstrations & field days in rural areas• Facilitated agricultural Inputs exhibitions in rural areasFacilitated agricultural Inputs exhibitions in rural areas• Promoted increase of use of Inputs and reduced travel distances for Promoted increase of use of Inputs and reduced travel distances for
smallholder farmers, and reduced transaction costs for companiessmallholder farmers, and reduced transaction costs for companies• Increased coverage through newsletters, newspaper, radios Increased coverage through newsletters, newspaper, radios
STRENGTHS:STRENGTHS:4) Financial Services4) Financial Services
Financial ServicesFinancial Services
• Utilization of Credit Guarantee Fund to financial institutions Utilization of Credit Guarantee Fund to financial institutions and input supply companies to offer credit to agrodealersand input supply companies to offer credit to agrodealers
• Support capacity building of Financial Institutions to develop Support capacity building of Financial Institutions to develop new financial products appropriate for rural entrepreneursnew financial products appropriate for rural entrepreneurs
Project ActivitiesProject Activities4) Financial Services cont.4) Financial Services cont.
• AGRA through RUMARK AGRA through RUMARK has a guarantee has a guarantee arrangement with MRFC arrangement with MRFC through which the through which the institution gives institution gives advances credit to advances credit to farmers to procure farmers to procure inputs. inputs.
• RUMARK certified RUMARK certified agrodealers have agrodealers have received $218,666 received $218,666 (K30,766,306) in loans (K30,766,306) in loans from MRFC and other from MRFC and other institutions institutions
STRENGTHS: STRENGTHS: 5) Output Marketing5) Output Marketing
• Train agrodealers Train agrodealers on bulking and on bulking and aggregation of aggregation of grainsgrains
• Support agrodealers Support agrodealers to establish output to establish output marketing marketing enterprises enterprises
STRENGTHS: STRENGTHS: 6) Matching 6) Matching InvestmentInvestment
Matching Investment facility has been used to support:
a) Output Marketing grain bulking and aggregation initiatives by agrodealers
b) Establish Agrodealers in rural markets
STRENGTHS: STRENGTHS: 7) Advocacy7) Advocacy
Facilitated the formation (and training) of agrodealer associations that will promote the interests of agrodealers and by extension to farmers.
WEAKNESSES/CHALLENGES/GAPS
• Implementing program activities through partner organizations highly depends on their goodwill;
• Isolation of agrodealers in the ISP weakens their business growth;
• Logistics to move both inputs and outputs are a major constraint
WEAKNESSES/CHALLENGES/GAPS
• Agrodealer business takes long time to grow and extremely fragile in poor economic and climatic conditions
• BDS is not yet commercialized – no providers;
• Weak/limited capacity (technical) of Commercial Trainers to effectively deliver BDS;
The Ideal Agrodealer
• Farm Service Centres Inputs suppliesOutput market – aggregation points
(sorting, grading, storage)Information provision for markets and
prices – e.g ACE - /MACE/GTPATractor hire Extension services - Soil testing,
spraying services (herbicides, etc), basic technical information
Processing Centres – value addition