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, Groundnuts, 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...