IFDC
Accelerating Agriculture in Africa
Smallholder farmer as business opportunity
Agribusiness Forum 2010
October 3-6, 2010
Kampala, Uganda
André de Jager
Program Leader Agribusiness Program
IFDC - North and West Africa Division
IFDC
Smallholder farming as a business
Organized
Access output and input markets
and information
Form of rural finance exists and
affordable
Policies not hampering doing
business
IFDC
From challenges to changes
Not all smallholder farmers
want to / will be entrepreneurs
Public-private partnerships and
investments required
Facilitation before acceleration
Opportunities: Inputs, Services,
Sourcing
IFDC
Chances for business in Africa Agriculture
Small scale agribusiness clusters
Agro-industry clusters for local, regional and
global markets
Agro-input dealers as change agents
Market information
Technical innovations
IFDC
Small Scale Agribusiness Clusters
Cluster = all actors needed to
build profitable value chains
Producers and their
organizations
Input suppliers
Finance suppliers
Processors – warehousing –
value adding
Traders – buyers – market-parties
Business Development Services
Capacity building , technical advice
IFDC
Low cost – high impact
Investment per household: € 25
600,000 farmers in 7 countries
farming as a business
Yield increase of 80%
Household income increase 50%
> 5000 SME’s commercial service
providers
IFDC
External evaluation
The approach and intervention strategy have the
potential to fundamentally alter modalities of
international development collaboration ….. It can
become a flagship for Dutch development cooperation
because of its innovative entrepreneurial approach
towards sustainable agricultural growth and rural poverty
reduction.
IFDC
Agro Input Dealer Support
To increase the availability, accessibility and
affordability of agro inputs
Components:
Building skills through training
Strengthen agro-input
association
Facilitate access to credit
Demonstrations
IFDC
Mapping agro-dealers•Identified and mapped over
3,000 agro-input dealer sales
points
•The project has classified the
country into three categories;
low, medium and high density
This will guide the project to
work with dealers on
establishing new sales outlets
to serve the needs of farmers
better.
IFDC
Mobile phone applications
Send mass SMS text message to agro-input dealers about availability of
improved certified seeds
IFDC
Market Information
Two examples:
Africa fertilizer markets
Regional Agricultural Input Marketing System
IFDC
Africa Fertilizer Market
A new global forum
to disseminate and
exchange information
on fertilizers, soil fertility
and related agricultural
issues in Africa.
IFDC
ProductionFAO Nutrients & IFA Products
Imports & ExportFAO Nutrients & IFA Products
Production CapacityRaw, compounds, blends
Use per CropAdd 5 new countries
World PricesMonthly prices for 5-10 key fertilizers
National Retail PricesMonthly prices from 10-20 towns / country
Fertilizer Statistics
IFDC
Market Information
Africa Fertilizer Yellow Pages
Publications & Studies
Maps
Fertilizer Market News
Major Events
Links and Partners
Blogs & Forums
IFDC
AMITSA in brief With EAC & COMESA
8 countries in 2010, 11 in 2011
2,5 staff in Nairobi
DGIS (SAADA) + H.F. (STAR)
135 agro dealers trained in
65 major towns
First reports in 04/2010
Support to / supported by
Agro dealers devpt projects
Farmers organizations
Private sector
IFDC
1,25
1,8
1,31,45
1,781,81
2,6
1,75
1,17
1,96
1,55
0,52
0,930,89
2,6
2
1,07
1,33
0
0,5
1
1,5
2
2,5
3
Ug
an
da
Zam
bia
Ma
law
i
Mo
za
mb
iqu
e
Ke
nya
Ke
nya
Mala
wi
Mo
za
mb
iqu
e
Rw
an
da
Ta
nza
nia
Ug
an
da
Rw
an
da
Mo
za
mb
iqu
e
Ug
an
da
Za
mb
ia
Za
mb
ia
Ma
law
i
Ug
an
da
BEAN MAIZE - HYBRID MAIZE - OPV RICE
Legume Cereal
Seed average retail price (US$/kg)
6,5
6 11
,22
9,7
7
6,1
7
6,6
6 9,4
8
10
,4
8,7
5 13,3
5
10,7
1
7,2
9,8
3
11,9
9
14,7
8
6,8
6
5,4
2
12,3
5
5,8
9
23,8
9
8,2
8
0
5
10
15
20
25
30
Rw
anda
Buru
ndi
Kenya
Uganda
Tanzania
Zam
bia
Mala
wi
Mozam
biq
ue
Rw
anda
Kenya
Uganda
Tanzania
Zam
bia
Mala
wi
Mozam
biq
ue
Rw
anda
Kenya
Uganda
Mala
wi
Mozam
biq
ue
1 kg 1 liter 1 liter
Mancozeb (80 %) Glyphosate (360 G/l Or 480 G/l Ipa)
Cypermethrin (50 G/l)
Fungicide Herbicide Insecticide
CPP average retail price (US$/kg or liter)
Monthly prices agro inputs in Eastern Africa
Visit www.amitsa.org for more reports and information
IFDC
Conclusion / Discussion
Business opportunities for small holder agro
business development (base-of-the-pyramid)
exist how to accelerate the process?
Crucial elements to be in place:
Last-mile delivery inputs and services
Variety of financial services available
Transparency and market information