yara’s africa program. dato: 2008-05-15 - side: 2 yara’s african green revolution program (2005...

Yara’s Africa Yara’s Africa ProgramProgram

Dato: 2008-05-15 - Side: 2

Yara’s African Green Revolution program (2005 –2011)

Be a catalyst in the development of a new approach to PPP’s in African agriculture based on a holistic value chain approach

An advocacy role. Bringing agriculture to the forefront of the development agenda in Africa and be an honest broker supporting Public Private Partnerships

Value chain partnerships (Tanzania, Ghana and

Malawi).

AGR ConferenceYara Prize,

AGR web site.

Strengthen our own commercial platform and wholesale position through investments in port facilities, warehouses, and potentially production capacity in Africa

Leveraging off port investments to drive agricultural growth

corridors

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Example African country – fertilizer shipment from east African coastUSD per ton, 2006

Logistics and distribution bottleneck increasing dramatically fertilizer cost

290

290

60%

63

490

Insurance & others

25

Total costs

113

Sea Shipping

63

Inland transportation

113

25

40%

Fertilizer

Can be lowered through use of rail, if/when available

Can be lowered through use of rail, if/when available

Well above developed country prices; unaffordable to most

Well above developed country prices; unaffordable to most

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Congo, Rep.

Sudan

Nigeria

AngolaZambia Mozambique

Tanzania

Central African Rep.

Cameroon

Chad

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www.beiracorridor.com

Beira corridor: the next Cerrado?

• Beira Corridor is the gateway to South East Africa. Also a large area with huge agricultural potential

• Fascinating similarities between the Beira Corridor and the Cerrado region of Brazil in the 1970s

• A combination of public (research, infrastructure) and private (agribusiness) investments led to rapid agricultural growth

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Current status of agriculture in BAGC

• There is currently very little commercial agriculture in the Beira Corridor

• Of the 1.5m ha under production, >98% is farmed by smallholders

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Smallholder & Local Community Links

It is essential that the smallholder farmers in the corridor benefitfrom the growth of commercial agriculture

Hub and outgrower scheme

Serviced farm blocks Extension support programmes

“The Green Revolution in Mozambique has the principal objective of inducing an increase in production and productivity of small

producers by encouraging food production in a competitive and sustainable way.”

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Agricultural potential by 20302010 2030

• <20,000 ha irrigated commercial agriculture

• Smallholders almost exclusively subsistence production

• High production and marketing costs

• >210,000 ha irrigated commercial agriculture

• Smallholders have access to irrigation infrastructure and markets

• Economies of scale

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Investment Blueprint 2010 - 2030

• Investment frame of $ 250 million in patient capital, levearging a total investment of $ 1,8 billion over a 20 year period

• Giving up to 13.000 smallholder farmers access to affordable irrigation and supporting a further 200.000 small scale farmers through outreach

• Ultimately lifting 1 million people out of extreme poverty

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