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12/17/13
1
Technical Convening on Agricultural Inputs (Seed &
Fert.) Policy in Africa
Mr. Argent Chuula, CEO ACTESA
! Burundi Comoros D.R. Congo Djibouti Egypt Eritrea Ethiopia Kenya Libya Seychelles Madagascar Malawi Mauritius Rwanda Sudan South Sudan Swaziland Uganda Zambia Zimbabwe Mozambique Botswana Tanzania
All COMESA Member States/ Plus Mozambique, Botswana, Tanzania, e.t.c
..00 CCOOMMEESSAA // AACCTTEESSAA’’ss RReeggiioonn
.
AALLLLIIAANNCCEE CCOOMMMMOODDIITTYY TTRRAADDEE IINN
EEAASSTTEERRNN AANNDD SSOOUUTTHHRREENN AAFFTTEERRIICCAA –– AACCTTEESSAA
!1. A Specialised Agency of COMESA.
2. Stemmed from the need of having an implementing Agency for CAADP pillars 2 on market access and 3 on Food Security
3. Established by COMESA Heads of States
on 9th June 2009 to implement agricultural activities on staple foods with a focus on small scale farmers in the ESA region.
12/17/13
2
!THE$PROBLEM!
AACCTTEESSAA SSTTRRAATTEEGGIICC RROOLLEE 1. Channels policy issues between the public and
private sector and other stakeholders
2. An information hub for use by producers, traders, UN agencies and other agricultural organisations.
3. Facilitates and co-ordinates activities of implementing partners at regional and national level
4. Co-ordinates the mobilization of resources for implementing partners on agricultural activities in the region
ACTESA$
COMESA$POLICY$ORGANS$
PRIVATE$SECTOR$
FARMERS$ORGANISATIONS$
AACCTTEESSAA SSTTRRAATTEEGGIICC RROOLLEE
MEMBER$STATES$
DEVELOPMENT$PARTNERS$
12/17/13
3
AACCTTEESSAA SSTTRRAATTEEGGIICC FFOOCCUUSS
Integra;ng$smallholder$farmers$into$na;onal,$
regional$and$interna;onal$markets$through$
an$improved$policy$environment$and$
expanded$market$facili;es$/services$
Focus$Area$one$Policy$research$
outreach$and$advocacy$Prioritysues:$ Policy!on!inputs!!(Seed,$Fer;liser)!/technology!(biotechnology!and!Biosafety)! Stakeholder!outreach!
and!advocacy!$$
Focus$Area$Two$Expanding$market$
services$and$facili;es$$$Priority$Issues:$ Market! facili=es! and!
services!(COM$EXC)$ Informa=on! system!
and!service!Forum!(Knowledge$Portal)$
$
Focus$Area$Three$Capacity$building$for$
commercializa;on$Prioty$Issues:$
P r o d u c = v i t y ! a n d!t e c h n o l o g y! a d o p = o n!(Biotechnology)$ Development! of! farmer!
organisa=ons!$
Mission
SSTTAATTUUSS OONN SSEEEEDD AANNDD FFEERRTTIILLIISSEERR
The draft COMESA Seed Trade Harmonisation Regulations in place only awaiting approval by Council of Ministers end February, 2013. Collaborated with private seed companies
(AFSTA) and National Seed Authorities Roadmap in place and finalizing COMESA Seed
Development Programme in close collaboration with AFSTA and COMESA Member States
SSTTAATTUUSS OONN SSEEEEDD AANNDD FFEERRTTIILLIISSEERR ACTESA intends to
harmonize policies on Fertilizer,
Supporting countries undertaking soil
mapping to identify the right types of fertilizer Supporting Seed and Fertiliser Financing
mechanisms (private and public) / investments
12/17/13
1
Current'situa+on'of'seed'harmoniza+on'and'implementa+on'in'Africa!
Jus+n'Rakotoarisaona'Secretary'General,'The'African'Seed'Trade'Associa+on'(AFSTA)'
Technical'convening'mee+ng'Addis'–'Ababa'
December'5,'2013'
OUTLINES!
! Main!objec3ves!of!the!harmoniza3on!
Key!areas!for!harmoniza3on!
! Situa3on!of!harmoniza3on!in!the!Regional!
Economic!Communi3es!(RECs)!
! Membership!to!RECs!in!Eastern!and!Southern!
Africa!(ASARECAHEAC/COMESA/SADC)!
! Implementa3on!
! Conclusion!
MAIN!OBJECTIVES!OF!THE!HARMONIZATION!!
Free! movement! of! seed! with! a! view! to!
promo3ng! crossHborder! seed! trade! for!beRer!
seed!supply!for!farmers;!
Mo3va3on! of! private! sector! to! invest! in! the!
seed!sector!because!of!increased!seed!market!
size!–!country!to!regional!based!seed!market.!
12/17/13
2
BACKGROUND!INFORMATION!
RECs:!COMESA,!SADC,!EAC!and!ECOWAS!
(ECCAS!has!not!ini3ated!harmoniza3on):!
harmoniza3on!all!at!implementa3on!stage!
Areas!for!harmoniza3on!
– Phytosanitary!Measures!and!seed!Import/Export!
Procedures!and!Documenta3on;!
– Standards!for!Seed!Cer3fica3on!– Variety!Evalua3on,!Release!and!Registra3on;!– Plant!Breeders’!Rights!(SADC)!
COMESA Burundi Comoros DR Congo Djibouti Egypt Eritrea Ethiopia Kenya Libya Madagascar Malawi Mauritius Rwanda Seychelles Sudan Swaziland Uganda Zambia Zimbabwe
SADC Angola Botswana DR Congo Lesotho Madagascar Malawi Mauritius Mozambique Namibia Swaziland Tanzania Zambia Zimbabwe South Africa Seychelles
EAC Burundi Kenya Rwanda Tanzania Uganda
ASARECA Burundi DRC Ethiopia Eritrea Kenya Madagascar Rwanda Sudan Tanzania Uganda
COMESA
ASARECA
SADC
EAC
SITUATION!IN!COMESA!
Ini3ated! in! 2008! and! adopted! by! the! COMESA!
Ministers! of! Agriculture! in! September! 2013;!
Expected! to! be! adopted! by! the! Council! of!
Ministers!in!February!2014!(final!adop3on);!
No! significant! differences! in! the! harmonized!
seed! regula3ons! of! COMESA,! SADC! and! EAC!
paving' the'way' for'a' tripar0te'agreement' for'the'three'RECs'(COMESA/SADC/EAC);!!
Draf! roadmap! for! its! implementa3on! already!
defined! by! COMESA/ACTESA! in! partnership!
with!the!African!Seed!Trade!Associa3on!(AFSTA)!
12/17/13
3
SITUATION!IN!SADC!
The!SADC!Protocol!on!seed!regula3ons!harmoniza3on!has!been!recently!signed!
by!11!Member!States!and!has!become!
enforceable;!
SADC!Seed!Center!has!been!established!in!2013!in!Lusaka,!Zambia!for!its!
implementa3on;!!
SITUATION!IN!ASARECA/EAC!
ASARECA!has!spearheaded!the!harmoniza3on!in!
EAC;!
Ini3ated!in!1999!and!reached!common!
agreement!in!2002!for!10!countries;!
Kenya,!Uganda,!and!Tanzania!opera3onalized!the!ASARECA/EAC!variety!
release!system!(regional!variety!list!available!
for!the!three!countries);!
Member!States!aligning!their!na3onal!seed!
law!to!the!ASARECA/EAC!common!
agreement.!
SITUATION!IN!ECOWAS!
Adopted!by!the!ECOWAS!Council!of!Ministers!
in!May!2008;!
The!West!African!Seed!CommiRee!(WASC)!in!
charge!of!the!implementa3on.!However,!it!is!
not!yet!established;!
CORAF/WECARD!is!taking!the!lead!for!its!
implementa3on;!
!Harmoniza3on!extended!to!cover!the!
Member!States!of!CILSS!and!WAEMU!!
12/17/13
4
IMPLEMENTATION!
Seed! sector! of! Member! States! at! different!
level! of! development;! there! is! need! to! uplif!
the! ones,! which! are! s3ll! lagging! behind! to!
opera3onalize!the!harmoniza3on;!
Implementa3on! is! challenging! since! the!
agreements!were!reached!a!few!years!ago!but!
not!yet!a!reality!to!boost!the!seed!trade;!
Requires! more! commitment! (human! and!
technical)! from! Member! States! and! an!
efficient!coordina3on/implementa3on!Unit.!
CONCLUSION!
Harmoniza3on! of! seed! regula3ons! and!
policies!should!boost!seed!trade!in!Africa!
to!improve!livelihood!of!African!farmers;!
Public!and!Private!Partnership!is!a!crucial!e lement! for! the! success! of! i ts!
implementa3on.!
1
IFDC
Fertilizer Policy Status Since Abuja
Declaration
Presented by Joshua Ariga and Maria Wanzala, IFDC
at meeting on:
“Technical Convening on Seed and Fertilizer Policy in Africa” Addis Ababa, Ethiopia, December 5-7, 2013, Sheraton Hotel
IFDC
Background ! June 2006: AU/NEPAD convened the Africa Fertilizer Summit to
address the fertilizer crisis facing Africa.
Key Resolutions: " Eliminate all taxes and tariffs on fertilizers and harmonize policies and
regulations to facilitate regional trade " Develop agrodealer networks " Introduce targeted subsidies for the poor " Establish national financing facilities for input suppliers " Establish regional fertilizer procurement and distribution centers " Promote national/regional fertilizer production and intra-regional trade " Establish an AFFM at the African Development Bank to meet the
financing requirements of these various actions
IFDC
Policy measure
EAC COMESA SADC ECOWAS
Harmonization of fertilizer policies
Zero external tariffs on fertilizers
Zero external tariffs on fertilizer
2010 study on fertilizer production opportunities for the region conducted.
ECOWAS Fertilizer Regulatory Framework adopted 2012
Regional fertilizer procurement
2013 IFPRI study on joint fertilizer procurement for the region
Fertilizer production/ blending in the region
Fertilizer production in Tanzania Fertilizer blending plants in: Kenya, Tanzania
Fertilizer production: South Africa, Tanzania, Zambia, Zimbabwe Bulk Blending plants: Kenya, Malawi, Mozambique,
Fertilizer production: South Africa, Zambia, Zimbabwe, Mauritius, Bulk Blending plants: Malawi, Mozambique,
Fertilizer production: Nigeria Senegal, Bulk Blending plants: Cote d’Ivoire, Ghana
Intra- and inter-regional trade
Kenya, Burundi and Uganda import fertilizer from Egypt
Kenya, Burundi and Uganda import fertilizer from Egypt
Botswana, Lesotho, Mozambique, Zambia import fertilizer from South Africa
Cameroon and Ghana import fertilizer from Morocco
Progress in Implementing Abuja: Regional Level
2
IFDC Progress in Implementing Abuja: Country Level Policy Indicator Good Satisfactory Partially
Satisfactory Unsatisfactory
Formal Policy and regulatory framework
Fertilizer inspection at point of sale
Elimination of taxes and tariffs Number of agrodealers
Distance farmers travel to purchase fertilizer
Targeted subsidies National financing facilities for importers and agrodealers
IFDC Increase in Fertilizer Consumption in Select Countries
! fertilizer consumption per hectare (kg/ha, nutrients, NPK):
! Increase in total fertilizer consumption (mt)
1998/99 2007/08 Kenya 21 33 Angola 3.3 8.3 Cameroon 3.7 8.6 Tanzania 3.0 5.9 Zambia 11 50
1998/99 2011/12 Malawi 50,200 270,000 Nigeria 163,200 >500,000 Uganda 3,535 45,000 Zambia 36,700 250,000
IFDC
IFDC Nine-Country Fertilizer Assessments: Results(2011-13)
‘000 mt product
Tanzania Mozambique Malawi Zambia Kenya Uganda Ethiopia Ghana
Current fertilizer use
263 50 270 250 489 45 500 200
Additionaldemand to meet country objectives
265 250 330 250 421 700 370
Total fertilizer reqt.
528 300 600 500 910 480 1200 570
Increase 2.0x 12.0x 2.0x 2.0x 1.9x 10.0x 2.0x 2.7x
3
IFDC
Policy Status and Constraints in 9 Countries
! Policy Status - Fertilizer subsidy in all
countries (except Uganda)
- Private sector imports in all countries except Ethiopia
- Formal fertilizer act in all countries (exceptions: Zambia’s is outdated; Uganda has a draft)
- No tax on imports (Tanzania, Kenya,
- Blending services available: Kenya, Malawi, Ghana, Ethiopia
- Zambia: ban on foreign currency trade has created exchange rate risks for international traders
! Key Policy Constraints - Ad hoc state intervention in imports (e.g. Kenya, Zambia)
- High cost and limited access to finance
- High transport & transaction costs due to: slow port discharge; poor port, road and rail infrastructure; small vessels; low ton trucks
- Border points (slow clearance, bureaucracy)
- Outdated recommendations, poor information on correct use and benefits of fertilizers
- Low adoption of blends; low yields due to wrong fertilizers
- Limited access to output markets, including storage and warehouse receipt system
- Inspection/regulations hinder product mix by limiting product set
IFDC
Policy Recommendations – National Level ! Expert advice on alternative subsidy approaches that will allow private sector
development ! PPPs for some port functions to expedite clearance (e.g. loading and unloading) ! Expert assistance to draft fertilizer policies and strategies ! Governments create predictable and stable policy environment (cease ad hoc market
intervention) ! Provide information and training to farmers and agrodealers on fertilizer benefits and
update recommendations ! Widen set of fertilizer products by soil testing and crop specific fertilizers ! Finance for private sector blending activities ! Invest in agrodealer networks (training and financing via risk-sharing arrangements) ! Link farmers to output markets (processing farms, buyers) ! New fertilizer products will require revamping extension services and capacity building
for agrodealers and farmers to determine appropriate blends and encourage adoption
IFDC
Policy Recommendations – Regional Level
! Update and/or draft national fertilizer policy and quality regulations. Ensure they are aligned to regional regulatory frameworks
! Develop national fertilizer policy in harmony with regional business interests for importers and dealers
! Handle infrastructure upgrades regionally
4
IFDC
Key Principles to Guide Input Policy
! Increase farmer physical proximity and access to input and output markets (rural roads, storage, processing, warehouse receipt systems, outgrower schemes, One-Acre fund model)
! Create incentives for increased private sector investment and engagement in the fertilizer space (predictable policy, finance)
! Use public funds efficiently – include complementary inputs in subsidy schemes (improved seeds, irrigation, extension, credit) in subsidy programs) and make them “smart” i.e. distribute via the private sector (sustainability)
! Facilitate farmer access to the most appropriate fertilizers for their soil type and crop mix to increase use efficiency and maximize their return
IFDC
12/17/13&
1&
Private&Sector&Perspec3ve&on&Seed&Policy&
Voices&from&the&Field&&
Addis&Ababa,&Dec.&6,&2013&
Who&Are&the&Voices?&
This&compila3on&is&based&on&100+&field&visits&to&African&seed&companies&in&12&
countries,&2008&K&2013&&&Ethiopia,&Rwanda,&Uganda,&Kenya,& &Tanzania,&
Malawi,&Mozambique,&Zambia,& &Ghana,&Nigeria,&Burkina&Faso&and&Mali&
Most&of&the&themes&are&common,&but&some&are&specific&to&individual&countries&
(e.g.&package&size&in&Ethiopia)&
12/17/13&
2&
General&Business&Environment&
! A"posi've"general"business"environment"that"is"
characterized"by"freedom"to"operate"and"low"levels"
of"bureaucracy,"including:"ease"of"licensing,"
registra'on,"filings;"access"to"bank"financing"at"
reasonable"rates;"ability"to"source"equipment"and"
supplies"from"outside"the"country;"fair"taxes;"ability"
to"brand"their"product;"etc.&
4&
General&Business&Environment&
! Support"for"a"robust"compe''ve"environment,"
which"will"raise"quality"and"lower"prices"for"farmers"
(e.g.,"a"level"playing"field"which"does"not"favour"a"
parastatal)&
! An"absence"of"subsidy"programs"that"drive"longE
term"market"distor'ons&! A"longEterm"view"of"the"business"environments"–"
local,"regional,"con'nental,"global,"and"the"unique"
requirements"of"each&
5&
Legisla3on&and&Regula3ons&! Clear,"forwardElooking"legisla'on,"including"recogni'on"of"local,"regional,"and"global"export"
markets&
! Clear"regulatory"frameworks"that"draw"strongly"on"
private"sector"ar'cula'on"of"costs,"needs,"and"
seasonal"issues"surrounding"seed"produc'on&
! “Form"that"follows"func'on”"–"e.g."export"
standards"for"export"seed,"but"more"prac'cal"
reputa'onEdriven"and"licenseEdriven"frameworks"
for"na'onal"markets&6&
12/17/13&
3&
Legisla3on&and&Regula3ons&
! A"seed"release"policy"that"is"not"excessively"lengthy"or"bureaucra'c"
! Clearly"ar'culated"and"effec'vely"implemented"
seed"company"regula'ons"that"are"tough"and"fair,"
but"not"onerous.""Ul'mately,"these"regula'ons"
should"migrate"towards"“good"conduct”"models"for"
companies"that"have"demonstrated"quality"
standards"and"ability"to"selfEregulate&
7&
Research&
! FarmerEresponsive"breeding"and"research"efforts"to"
develop"costEintensive"public"goods"that"cannot"be"
funded"privately"
! "Seed"company"exposure"to"the"breeding"pipeline,"and"
ability"to"test"material"in"onEfarm"condi'ons"before"it"is"
released"&
! Support"in"building"human"capacity"by"sharing"the"
talent"in"the"government"breeding"talent"pool,"either"
via"secondment,"frequent"interac'on,"or"dedicated"
trainings&
8&
Research&
! Breeding"ac'vi'es"to"support"ongoing"product"line"upgrades"and"evolu'on,"especially"for"orphan"crops&
! An"“open"architecture”"system"for"germplasm"
acquisi'on"for"both"commercial"produc'on"and"for"
breeding&
9&
12/17/13&
4&
Policy&in&Prac3ce&! A"liberalized"founda'on"seed"environment,"ideally"with"
technical"support"for"parent"seed""produc'on"if"needed"
un'l"company"can"produce"parent"seed"on"its"own""&
! "High"quality,"consistent"supply"of"inputs"under"government"control,"such"as"breeder"seed,"and"
founda'on"seed"if"companies"are"not"allowed"to"
produce"it"themselves.""This"supply"should"be"driven"by"
dialogue"with"the"seed"company"for"up"to"two"years"
before"delivery.""(Note"that"ideally"companies"will"be"
allowed"to"produce"their"own"founda'on"seed.)&
& 10&
Policy&in&Prac3ce&! "Transparency"about"variety"licensing"and"alloca'on"process"for"parental"seed"
! Transparency"in"subsidies"and"tenders,"focusing"on"qualified"private"sector"en''es"&
! Adequate"funding"for"local"regulatory"agencies"&! Lack"of"governmentEimposed"barriers"between"the"
company"and"the"ul'mate"customer,"the"farmer.""That"
is,"a"clear"path"between"the"seed"company"and"the"
farmer,"without"forcing"the"seed"company"to"go"
through,"e.g.,"a"coop"(although"they"may"choose"to"do"
so.)&11&
Policy&in&Prac3ce&
! MarketEbased"pricing,"driven"by"what"customers"
are"willing"to"pay"for"the"value"they"receive"from"
the"company.""(Value"is"a"combina'on"of"price,"
product"characteris'cs,"consistency"of"supply,"
convenience,"packaging,"etc.)&
! Prosecu'on"of"fake"seed"purveyors"&! An"appropriate"level"of"quality"control"on"pointEofEsale"outlets,"such"as"license"renewal"condi'ons,""
including"coop"distribu'on"sites&
12&
12/17/13&
5&
Support&and&S3mula3on&! Financial"support"for"research"and"capacity"investments,"which"might"range"from"a"matching"
investment"fund"(with"a"cap)"to"a"relaxa'on"of"import"
du'es"and"taxes"when"the"company"is"impor'ng"
research"or"produc'on/processing"equipment&
! Interest"rate"“buyEdown”"or"guaranty"fund"for"seed"companies"and"agrodealers"to"help"to"increase"quality"
seed"produc'on"and"dissemina'on"
! Assistance"with"access"to"land,"and"especially"land"with"irriga'on"poten'al&
13&
Support&and&S3mula3on&! Appropriately"synched"extension"work"to"strengthen"farmer"prac'ces,"including"building"demand"for"
improved"inputs&
! Facilita'on"of"open"dialogue"about"how"to"con'nually"improve"the"system,"always"keeping"the"farmer"at"the"
heart"of"the"mission.""This"should"include"regular"
mee'ngs"between"government"policyEmakers"and"
implementers,"researchers,"and"the"private"sector"to"
ensure"that"ac'vi'es"and""needs"are"appropriately"
coordinated"(as"was"done"so"successfully"in"India)&
14&
Food&for&Thought…&
What&cons3tutes&private§or&voice?&&&
What&cons3tutes&government&voice?&
How&do&we&achieve&open,&construc3ve&dialogue&and&joint&learning?&
12/17/13&
1&
Kenya&Fer.lizer&Policy&“Success&Story”:&&&1990&to&~2008&
J.&Ariga&and&T.&Jayne&
0
100,000
200,000
300,000
400,000
500,000
600,000
1990 1995 2000 2005 2010
me
trix
to
ns
total fertilizer use basal use top dress use
Na#onal'fer#lizer'use'in'Kenya'
Source:&Ministry&of&Agriculture&in&Kenya&
3
4 Reasons for the Upsurge in Fertilizer Use in Kenya
1. GoK has maintained a stable fertilizer policy stance since 1990 ! Eliminated import licensing quotas
! Eliminated foreign exchange controls
! Eliminated retail price controls
! From 1990 to 2007, no market uncertainties introduced by large-scale subsidy programs
12/17/13&
2&
4
4 Reasons for the Upsurge in Fertilizer Use in Kenya
2. In response to stable input policy environment, private sector investment in fertilizer distribution expanded rapidly ! 10-11 importers ! 500 wholesalers ! 8,000 retailers
5
4 Reasons for the Upsurge in Fertilizer Use in Kenya
3. In response to expansion of input stockists, small farmers’ are now much closer to fertilizer retailers ! 1997: 7.4kms ! 2000: 5.6kms ! 2004: 3.7kms ! 2007: 3.2kms
Kms'to'nearest'fer#lizer'seller'
Coastal'
Lowlands'
Eastern'
Lowlands'
Western'
Lowlands'
Western'
trans'
HPMZ' Western'
Highlands'
Central'
Highlands'
1997' 28.3' 9.8' 15.9' 6.3' 5.0' 3.3' 2.7'
2007' 9.9' 2.7' 3.8' 3.6' 3.6' 2.4' 1.3'
change'in'km'
L18.4' L7.1' L12.1' L2.7' L1.4' L0.9' L1.4'
12/17/13&
3&
7
Reasons for the Upsurge in Fertilizer Use in Kenya
4. Greater competition among importers and wholesalers has led to declining fertilizer marketing costs
Price&of&DiIammonium&Phosphate&(DAP)&in&Mombasa&and&Nakuru&(constant&2012&Kenyan&shillings&per&50&kg&bag)&
0
1000
2000
3000
4000
5000
6000
7000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
KSH
per
50
kg b
ag o
f DA
P (r
eal 2
012
pric
es)
Mombasa CIF Nakuru wholesale
Source: Yearly average fertilizer prices come from the Ministry of Agriculture in Kenya. Prices were deflated to 2012 levels using the CPI from the Kenya National Bureau of Statistics (KNBS).
Decline&in&marke.ng&margins&
Increased&domes.c&market&compe..on& Alliances&with&interna.onal&partners&
– access&to&cheaper&credit&– KnowIhow&conferred&to&local&firms&"&cost&reduc.ons&
12/17/13&
4&
end&
Recent&Evidence&on&Input&Subsidy&Programs&
Economists&have&focused&on&market&failures&as&primary&cause&of&low&fer.lizer&use& This&characteriza.on&has&served&as&ra.onale&for&ISPs& Rela.vely&liZle&analysis&of&whether&low&use&of&fer.lizer&reflects&low&profitability&of&use&
12/17/13&
5&
Low&crop&response&rates&to&fer.lizer&applica.on&leads&to&both:&&– Low&profitability&– Low&B/C&ra.os&of&fer.lizer&subsidy&programs&
Distribution of expected MPs of nitrogen at the district, soil group, year level
0.0
2.0
4.0
6
Den
sity
0 10 20 30 40 50expected marginal physical product of nitrogen
Varia.on&in&farmers’&efficiency&of&fer.lizer&use&on&maize,&Agroecological&Zone&IIa,&Zambia&
0
1
2
3
4
5
0 5 10 15 20 25 30 35
Marginal product (kgs / kg nitrogen)
Per
cent
of
farm
s
Note: Zone IIa is a relatively high-potential zone suitable for intensive maize production
12/17/13&
6&
16
Basal Productivity, NR II, Zambia
Maize yield response to basal fertilizer over soil acidity ranges Soil pH 3.1 - 4.3 4.4 - 5.4 5.5 - 7.1 Average partial effect of basal fertilizer application (kg/kg)
2.140** (0.01)
3.735*** (0.00)
7.552*** (0.00)
% of sample 51% 47% 2% **,&***&denotes&significance&at&the&5%&and&1%&level&respec.vely,&delta&method&pIvlaues&in&parentheses&
17
From'Larson'and'Oldham,''Mississippi'State'University'Extension'Service,'2008.''
Unresolved&problem:&
Low&crop&response&rates&are&a&major&underlying&problem&that&impedes&both&– Effec.ve&demand&for&fer.lizer&&– B/C&ra.o&of&ISPs&– Most&ISPs&evaluated&in&our&study&had&B/C&ra.os&less&than&1.0&
– Evaluated&under&a&range&of&alterna.ve&assump.ons&and&plausible&prices&
12/17/13&
7&
Unresolved&problem:&
Crowding&out&of&commercial&sales&– Found&to&be&in&range&of&25I55%&– Important&elements&of&the&private§or&were¬&eligible&to&carry&and&sell&program&fer.lizer&to&recipients&in&most&countries&
Unresolved&problem:&
Evidence&of&substan.al&diversion&of&subsidy&program&fer.lizer&
21
Diversion&of&fer.lizer&from&FISP,&Zambia&&
Farmer'claims' FSP/FISP'distribu#on'
Plan#ng'year' LLLLLLLLLLLLLLLLLLLLMetric'TonsLLLLLLLLLLLLLLLLLLLL'
2002' 31,722' 48,000'
2003' 33,372' 60,000'
2004' 16,792' 50,000'
2005' 23,595' 50,000'
2006' 58,404' 84,000'
2007' 43,596' 50,000'
2008' 55,114' 80,000'
2009' 69,103' 106,000'
2010' 116,116' 179,000'
2002'L'10' 447,814' 707,000'Source:&Mason,&2011&
33%'
63%'
12/17/13&
8&
Unresolved&problem&
ISPs¬&targeted&to&the&poor,&and&hence&have&rela.vely&liZle&effect&on&poverty& The&ar.cles&in&the&SI&found&liZle&evidence&that&
– ISPs&reduce&food&prices&or&increase&wage&rates&– Fer.lizer&targeted&to&wealthier&smallholders&can&use&fer.lizer&more&efficiently&than&poor&farmers&
23&
Farm size (ha)
Kgs maize per kg
fertilizer
0-0.99 3.73
1-1.99 3.48
2-4.99 3.52
5-9.99 3.68
10-20 3.46
Sources:&Burke&et&al.&(2012a),&RickerIGilbert&et&al.&&
24&
IFPRI&review&of&rate&of&return&studies:&Returns
Subsidies Negative – 12% Investments - research & extension 35% to 70%
- roads 20% to 30% - education 15% to 25% - communications 10% to 15% - irrigation 10% to 15%
If'we'believe'these'findings,'they'have'major'implica#ons'
12/17/13&
9&
Conclusions)
25&
Conclusions)1. ISPs)would)be)more)effective)if)adequate)
resources)were)allocated)to)complementary)public)investments)
2. More)balanced)public)expenditure)patterns)could)more)effectively)promote)national)policy)objectives)
3. Many)of)the)“smart)subsidy”)concepts)were)not)implemented)in)practice)
4. There)remain)concrete)steps)for)improving)ISP)effectiveness)–)but)not)clear)whether)they)are)feasible)to)achieve)
26&
Thank&you&
12/17/13&
10&
Distribution of MVCRs at the village, year level
0.2
.4.6
.8
Den
sity
0 2 4 6marginal value cost ratio
Farmer& Fer.lizer&&retailer&
Farmer& Fer.lizer&&retailer&
12/17/13&
11&
Farmer& Fer.lizer&&retailer&100&mt&
Farmer& Fer.lizer&&retailer&
Government&Fer.lizer&Program&&
(100&mt)&
80&mt&
Farmer& Fer.lizer&&retailer&
Government&Fer.lizer&Program&&
(100&mt)&
80&mt&
Crowding out:
Govt program of 100 mt reduces commercial sales from 100mt to
80mt, adding 80 mt to farmers’ fields
12/17/13&
12&
Farmer& Fer.lizer&&retailer&
Government&Fer.lizer&Program&&
(100&mt)&
20&mt&
80&mt&
Farmer& Fer.lizer&&retailer&
Government&Fer.lizer&Program&&
(100&mt)&
80&mt& 20&mt&
80&mt&
Farmer& Fer.lizer&&retailer&
Government&Fer.lizer&Program&&
(100&mt)&
80&mt&
20&mt&
80&mt&
Diversion:
Govt program of 100 mt adds 80mt through govt programs and adds 20 mt
through commercial
channels. Total additional use
to farmers’ fields = 60mt
12/17/13&
1&
Soil%Fer)lity%Management%in%Ethiopia%
2&
Agenda%
! Issues&! Approaches&
! EthioSIS&! Fer7lizer&blending&! Soil&test&based&fer7lizer&recommenda7ons&&
3&
Agenda%
! Issues&! Approaches&
! EthioSIS&! Fer7lizer&blending&! Soil&test&based&fer7lizer&recommenda7ons&&
12/17/13&
2&
4&SOURCE:&FAO;ATA;&AfSIS&
Exis%ng(soil(maps(in(Ethiopia(are(obsolete(with(limited(soil(fer%lity(informa%on(resul%ng(in(par%al(u%liza%on(of(soil(fer%lity(informa%on(on(
agricultural(ac%vi%es( ! The%world%soil%map%was%published%in%1970s%by%FAO%and%UNESCO%at%a%resolu)on%of%1:5M,%which%was%then%focused%to%1:2M%for%Ethiopia%by%1984%
! The%soil%map%is%based%on%soil%surveys%conducted%in%the%1930s%to%1970s%
! The%map%is%generated%using%soil%informa)on%and%technology%from%the%1960s%N%spa)al%informa)on%technologies%were%not%used%
! The%map%show%soil%types%in%Ethiopia%and%there%distribu)on%%%
Soil&informa7on&management&is&a&key&boJleneck:&Ethiopian&soil&informa7on&are&outdated,&lack&detail,&and&have&limited&use&in&suppor7ng&soil&conserva7on&and&land&management&efforts&&&
Extracted(for(Ethiopia(at(a(scale(of(1:2M(from(the(world(soil(map(of(FAO/UNESCO(((
5&
1817161615141313
08/09&07/08&06/07&05/06&04/05&03/04& 10/11&09/10&
443435393634
2522
07/08& 10/11&09/10&08/09&06/07&05/06&04/05&03/04&
Annual%Growth%Rate%%(CAGR)%
2003/04S10/11&≈%10%%
2003/04S10/11&≈%5%%
Total%cereal%yield%Qt/ht%from%2003/04N2010/11%
Total%fer)lizer%applied%for%cereal%crop%0000’%tones%from%2003/04N2010/11%
Source:&CSA;&Agricultural&Sample&Survey&2003/04S11,&
! Blanket%%applica)on%of%DAP%and%UREA%is¬&considerate&of&crop&need,&soil&nutrient&dynamics&and&agroSecological&factors&
&! 100%KG%of%DAP%and%Urea%is&applied&across&the&country&for&all&crops&providing&only&Nitrogen&and&Phosphorus%
%&%%&! Due&to&absence&of&updated%
and%detailed%informa)on%other&deficiencies&have¬&been&observed&&&
&! The&government&is&working&address&the&issue&by&developing&soil%Informa)on%atlas%and&introducing&fer)lizer%blending%to%the%country%&
Annual%Growth%%Rate%%(CAGR)%
Ethiopia’s&investment&in&fer7lizer&has¬&paid&off;&growth&in&fer7lizer&use&has¬&resulted&in&commensurate&increases&in&yield&requiring&alterna7ves&such&as&enhancing&local&fer7lizer&produc7on&&
6&
Agenda%
! Issues&! Approaches&
! EthioSIS&! Fer7lizer&blending&! Soil&test&based&fer7lizer&recommenda7ons&&
12/17/13&
3&
7&
EthioSIS,&in&addi7on&to&conduc7ng&soil&and&land&resource&assessments,&focuses&&on&extensive&soil&fer7lity&mapping&that&will&determine&the¤t&level&of&nutrient&deple7on,&and&allow&soil&and&crop&specific&fer7lizer&recommenda7ons&
! Soil%and%vegeta)on%samples%have%been%collected%and%analyzed%that%include%physical,%chemical%proper)es,%land%features%texture%and%organic%ma`er%%%%%%
8&
Diga&Woreda&nutrient&status&
[N]&ppm& [P]&ppm& [K]&ppm&
[S]&ppm& [Ca]&ppm& [Mg]&ppm&
“Best”¤t&topsoil¯oSnutrient&(N,&P,&K,&S,&Ca&&&Mg)&concentra7on&predic7ons&(to&be&validated)&
12/17/13&
4&
[Mn]&ppm&
[B]&ppm&
[Cu]&ppm&[Zn]&ppm&
“Best”¤t&topsoilµSnutrient&(Mn,&B,&Cu&&&Zn)&concentra7on&predic7ons&(to&be&validated)&
11&
N% 86%%
P% 99%%
K% 7.5%%
S% 92%%
Zn% 53%%
B% 65%%
Cu% 0.2%%
Nutrient%deficiencies%%(%&of&deficient&area&in&Ethiopia)&
Preliminary&woreda&level&soil&fer7lity&assessments,&in&conjunc7on&with&digital&soil&mapping,&has&enabled&the&predic7on&of&soil&nutrient&deficiencies&across&the&country.&Results&indicate&Ethiopian&soils&are&&deficient&in&N,&P,&S,&B,&Zn,&K,&Cu&
12&
Based&on&the&soil&sample&collec7on&and&analysis&work&of&111&woredas&the&deficient&in&N,&P,&S,&B,&Zn,&K,&Cu&in&almost&all&woredas&requires&the&need&to&develop&appropriate&nutrient&combina7ons&for&improved&inorganic&fer7lizer&inputs&
Nutrient%deficiency%distribu)on%of%111%woredas%in%Ethiopia%%%
NPZnB&
NPSZn&
0.2&NPSCuB&
0.2&NS&
0.1&NPB&
0.10&
NPKSB&
0.3&NPS&
0.3&
0.5&
NSB& 0.6&
NPKSZnB& 0.9&
NPSZnB& 2.9&
NPSB& 3.6&
Deficient%nutrients%and%number%of%samples%collected%in%000’%
Descrip)on%Frequency%%
33.4%
27.3%
8.9%
6.0&
4.7%
3.7%
3.4%
2.6&
2.2&
1.1&
1.1&
Seven(nutrients(i.e.,(N,(P,(K,(S,(B,(Zn(and(Cu(represent(the(deficiency(on(81%(of(the(surveyed(woredas((
12/17/13&
5&
Output&for&fer7lity&mapping&is&&a&detailed&fer7lizer&recommenda7on&&map&(Type&and&Rate)&&at&the&woreda&level&&E.g.&Diga&Woreda&S&Oromia&
Formula%2:%%18.1%N%–%36.1%P2O5%–%0.0%K2O%+%6.7S%+%%0.71B%%!!%NPSB%
Formula%4:%%16.9%N%–%33.8%P2O5%–%0.0%K2O%+%7.3S%+%2.23Zn+%0.67B%" NPSBZn%
Formula%5:%%13.0%N%–%26.1%P2O5%–%13.7%K2O%+5.6S+%1.72Zn%+%0.51B%!!%NPKSBZn&
14&
Plan&to&complete&198&woredas&soil&mapping&in&2014&and&&soil&informa7on&database&&will&comprise&of&&59&&CP’s&and&360&woredas&
15&
Agenda%
! Issues&! Approaches&
! EthioSIS&! Fer7lizer&blending&! Soil&test&based&fer7lizer&recommenda7ons&&
12/17/13&
6&
16&
Based&on&observed&nutrient&deficiencies,&six&blended&formula&recommenda7ons&have&been&developed&for&three&crops:&One&recommenda7on&is&a&compound&fer7lizer;&the&remaining&five&are&blended&fer7lizers.&Two&of&the&formulas&have&been&demonstrated&on&farmers&fields&
1
2
3
4
5
6
Formula%1:%NPS%19&N&S&38&P2O5&–&0&k2O5&+&7&S&+&0&Zn&+&0&B&&
Formula%2:%NPSB%18.1&N&S&36.1&P2O5&–&0&k2O5&+&6.7&S&+&0&Zn&+&0.71&B&&
Formula%3:%NPKSB%13.7&N&S&27.4&P2O5&–&14.4&k2O5&+&5.1&S&+&0&Zn&+&0.54&B&&
Formula%4:%NPSZnB%16.9&N&–&33.8&P2O5&–&0&k2O5&+&7.3&S&+&2.23&Zn&+&0.67&B&&
Formula%5:%NPKSZnB%13&N&–&26.1&P2O5&–&13.7&k2O5&+&5.6&S&+&1.72&Zn&+&0.51&B&&
Formula%6:%NPSZn%13&N&S&26.1&P2O5&–&13.7&k2O5&+&5.6&S&+&1.71&Zn&
Descrip)on%Demonstrated&formulas&&
17&
Cost(effec%ve,(low(maintainace(technology(will(be(used(to(blende(fer%lizers(in(Amhara,(Tigray,(Oromia,(SNNP(regions(under(the(ownership(of(coopera%ve(unions((((
! Four&new&physical&fer7lizer&blending&plants&will&be&established&at&coopera7ve&unions,&with&capacity&of&over&400,000%tones%per%year%
! Dry&blending&facili7es&can&create&fer7lizer&blends&with&up&to&six&nutrients&and&have&flexibility&&to&alter&formulas&based&on&soil&data&
! InScountry&plants&will&lower&costs&and&make&fer7lizer&more&accessible&
Given&that&Ethiopia’s&agricultural&soils&have&deficiencies&in&up&to&seven&nutrients&important&for&crop&produc7on,&the&MoA,&in&collabora7on&with&the&ATA&and&development&partners,&is&establishing&five&blending&plants&across&different®ions&to&produce&the&needed&blends&
Expected%produc)on%of%fer)lizer%blending%plants%%000’%tones%from%2014/04N2018%
396396367
172
74
600&
300&
2018&2017&2016&2015&2014&
Four&(poten7ally&five)&blending&plants&to&produce&new&blended&fer7lizers&&are&underway;&plant&founda)on%and%civil%work%is%50%%complete%for%the%four%blending%plants%%%
18&
Agenda%
! Issues&! Approaches&
! EthioSIS&! Fer7lizer&blending&! Soil&test&based&fer7lizer&recommenda7ons&&
12/17/13&
7&
19&
In&addi7on&to&the&lack&of&upStoSdate&soil&informa7on&in&the&country,&there&has&been&no&systema7c&development&of&soil&test&based,&or&siteSspecific,&fer7lizer&recommenda7ons&
Systemic%%%
! low&rates&of&fer7lizer&adop7on&may&be&aJributed&to&a&mismatch%between%environmental%condi)ons%and%shortcomings&in&the¤tly&recommended&fer7lizer&technologies&
! Limited%nutrient%applica)on%irrespec)ve&of&the&diverse&agroecological&characteris7cs&of&the&country&and&the&price&efficiency&of&fer7lizer&use&by&the&farmer&&
! Absence%of%site%specific%recommenda)on%based&on&soil&informa7on&resul7ng&in&the&applica7on&of&inadequate&fer7lizer&applica7on&&
! Less%emphasis%on&organic&inputs&and&ISFM&prac7ces&with&increased&focus&on&inorganic&fer7liza7on&
Organiza)onal%system%%%
! Lack%of%standard%research%methodology%and%procedures%on&soil&test&based&fer7lizer&recommenda7on&development&making&extrapola7on&to&a&wider&area&difficult&for&a&na7onal&fer7lizer&recommenda7on&development&
! Lack%of%threshold%values%of%important%nutrients%to&determine&efficient&amount&of&fer7lizer&applica7on&&
Coordina)on%! Lack%of%coordina)on%and%agreement%on&the&na7onal&soil&test&based&fer7lizer&recommenda7on&effort:&miss&alignment&on&the&objec7ves&and&approach&for&developing&soil&test&based&fer7lizer&recommenda7on&at&the&na7onal&level&
Issues%% Descrip)on%%
20&
Soil&test&based&fer7lizer&recommenda7on&package&development&envisages&long%term%and%short%term&strategic&approaches&based&on&dis7nct&ra7onales& Long%term%strategy:&Will&focus&on&the&
development&of&different&fer)lizer%recommenda)on%packages%for%all%crops:&! Characterize&the&country&into&different&agroSecologies&and&soil&types&
! Iden7fy&fer7lizer&trial&modali7es&by&taking&different&crops&and&soil&types&into&considera7on&
! Conduct&different&fer7lizer&trials&using&various&nutrient&composi7on&by&taking&soil&fer7lity&informa7on&into&considera7on&
! Conduct&verifica7on&trials&using&different&trial&methodologies&&
Short%term%strategy:&Will&focus&on&the&development&of&op)mal%fer)lizer%recommenda)on%packages%for%major%cereal%crops&and&soil&fer7lity&condi7ons&&! Characterize&the&country&into&representa7ve&agroSecologies&&
! Iden7fy&fer7lizer&trial&modali7es&by&taking&major&cereal&crops&and&soil&types&into&considera7on&
! Conduct&representa7ve&fer7lizer&trials&! Develop&op7mal&fer7lizer&recommenda7on&packages&for&the&&major&cereal&crops&and&poten7al&high&produc7on&areas&&
Ra)onale….%%
Ra7onale&for&the&short&term&strategy:&! Intensive&and&all&inclusive&fer7lizer&recommenda7on&package&development&in&terms&of&crop&and&area&is&)me%taking%and%cumbersome&requiring&huge&resources&and&7me.&
! The&country&is&in&a%state%of%urgency%for%the%development%of%fer)lizer%recommenda)ons%for&major&cereal&crops&&
! The&short&term&package&development&will&help%to%revise%the%long%term%strategy%that&will&ul7mately&cover&the&en7re&country&and&range&of&crops&
&Ra7onale&for&the&&long&term&strategy&! Ethiopia&is&likely&to&rely&on&the&agricultural§or&as&a&source&of&income&and&employment&for&the&foreseeable%future%%requiring%op)mal%and%up%to%date%fer)lizer%recommenda)on%packages&for&all&crops&given&the&fact&that&increasing&small&holder&farmers’&produc7vity&entails&the&integra7on&of&improved&technology&and&adop7on&
&&&
Two&approaches,&consis7ng&of&longer&term&controlled&trials&and&immediate&results&driven&trials&for&major&crops&in&the&short&term,&are&being&taken&to&address&these&issues&
21&
Some&objec7ves&of&the&soil&test&based&fer7lizer&recommenda7on&efforts&
1
2
3
4
To%develop%guideline%for%fer)lizer%advice%based%on%soil%test%and%crop%response%to%fer)lizers%on%representa)ve%soils%in%different%agroNclima)c%regions%of%the%country%%
To%derive%a%basis%for%fer)lizer%recommenda)ons%%for%desired%yield%targets%suited%to%the%constraints%of%fer)lizer%availability,%seasonal%variability%and%availability%of%credit%to%farmers%%%
Forecas)ng%and%monitoring%the%emergence%of%nutrient%deficiencies%in%areas%of%exploi)ve%agriculture%through%nutrient%indexing%in%wellNdefined%soilNcropNmanagement%systems%in%different%agroNecological%zones%%%%To%iden)fy%sustainable,%profitable%fer)lizer%technology%packages,%with%siteNspecific%recommenda)ons%within%a%GIS%oriented%cropNmodel%framework%%%%
12/17/13&
8&
22&
The&strategy&tries&to&employ&a&sequence&of&approaches/methods&for&assessing&crop&nutrient&requirements&&&&
Diagnosis%of%fer)lizer%requirements%%
Soil%test%/%crop%response%calibra)on%
Integrated%inorganic%and%organic%fer)lizers%
! Several&approaches&are&employed&for&assessing&crop&nutrient&requirement&including:&! Soil%analysis:%a&model&used&to&predict&and&evaluate&soil&fer7lity&via&soil&nutrient&extrac7on&methods&&! Plant%)ssue%analysis:&this&method&assumes&that&plant&growth&is&restricted&when&the&concentra7on&
of&nutrient&in&plant&7ssue&drops&below&“cri7cal&levels”&! Nutrient%deficiency%symptoms:%%this&method&will&help&iden7fy&the&symptoms&that&plants&exhibit&
when&a&nutrient&is&present&in&insufficient&quan77es&for&normal&growth&! Diagnosis%by%fer)lizer%addi)ve/graded%doses:&used&to&determine&the&fer7lizer&rate&at&which&
economic&crop&yield&can&be&obtained&through&filed&experiments&&&&&&&%
(
(
(
2.1%Calibra)on%! Soil&nutrient&supply&levels&are&calibrated&to&crop&response;&response&categories&determined&through&
conduc)ng%different%fer)lizer%response%experiments%at%different%soil%test%levels&2.2:%Recommenda)on%! Based&on&the&calibra)on%categories,%fer)lizer%recommenda)ons%are%developed%for%each%response%
category%by%also%including%such%considera)ons%as%farmers’%ability%to%access%credit%and%markets.&These&recommenda7ons&will&later&be&integrated&with&op7mal&soilScrop&fer7lizer&applica7ons&to&determine&economical&op7ma&and&viable&fer7lizer&applica7on&recommenda7ons&per&site&&&&
! The&op)mal%integra)on%of%organic%and%inorganic%fer)lizers%for%specific&agroSecologies&and&crop&types&will&also&be&integrated&in&the&op7mal&inorganicSorganic&soil&test&based&fer7lize&recommenda7on&development&effort&&&&&&
Approaches%% Descrip)on%
23&
The&implementa7on&of&soil&test&based&fer7lizer&recommenda7ons&will&consist&of&five&key&implementa7on&areas&&&
Implementa)on%areas%%
Implemen)ng%organiza)ons%
Representa)ve%domain%defini)on%
FineNtuning%fer)lizer%blend%formula%
Soil%test%crop%response%calibra)on%
Forecas)ng%fer)lizer%response%
Monitor%long%term%change%
! Data%compila)on:&Collec7on&of&data&from&exis7ng&maps&and&reports&
! Delineate%areas%:&Iden7fy&soil&and&climate&mapping&units&and&overlay&with&crop&produc7on&units&
! Develop%domains:&Map&biophysical&units&overlaying&this&map&and&develop&agroecological&units&&&&&&
! Valida)on:&Validate&soil&fer7lity&map&based&fer7lizer&blend&formula&recommenda7on&for&N,&P,&K,&B,&Zn,&S,&and&Cu&to&validate&site&specific&responses&&&
! Op)mal%nutrient%iden)fica)on:&Conduct&omission&plot&trails&to&determine&appropriate&nutrient&combina7on&fer7lizer&formulas&
( ( ( ( (
! Data%compila)on:&Conduct&measurements&of&crop&yield&response&to&rates&of&applied&nutrients&and&soil&test&for&the&nutrients&&
! Crop%yield%results:%Iden7fy&the&“Percent&Rela7ve&Yield”&&plot&response&curves&
! Interpreta)on:%Interpret&results&of&soil&test&to&yield&response&
! Determine%nutrient%requirement%factor&
! Data%compila)on:&collect&all&relevant&data&sets&including&soil,&crop&response&and&biophysical&informa7on&&
! Grouping:%Iden7fy&and&group&trial&sites&with&similar&characteris7cs&
! Model%development:%Iden7fy&models&to&capture&all&relevant&informa7on&and&extrapolate&the&result&to&a&wider&set&of&agroSecologies&
! Area%iden)fica)on:%Iden7fy&benchmark&sites&that&could&serve&as&long&term&monitoring&sites&
! Follow%up:&Conduct&soil&test&based&fer7lizer&recommenda7ons&to&monitor&change&&
! Update%recommenda)on:&update&fer7lizer&recommenda7ons&based&on&need&&&
Federal Democratic Republic of Ethiopia MOA&
! Development%partners%
! RARI’s%
CONCLUSION&
# Ethiopia& is& using& a& mul7Spronged& approach& to&increase&the&produc7vity&of&smallholder&agriculture&# Soil&fer7lity&mapping&# Fer7lizer&blending&facili7es&# SiteS&and&cropSspecific&fer7lizer&recommenda7ons&
# Preliminary& trials/demonstra7ons& show& promising&results&and&farmer&interest&
# Agricultural& produc7on& in& Ethiopia& will& significantly&shis& from& blanket& use& of& DAP& and& Urea& to& siteSspecific&use&of&a&more&complete&set&of&nutrients&
24&
12/17/13&
1&
IFDC
Policies to facilitate fertilizer blending for better recommendations
John Wendt Peter Heffernan Maria Wanzala
Paul Makepeace
Why$is$fer*lizer$blending$important?$
Different$crops$require$different$nutrients$in$different$quan**es$
IFDC
Soils vary in their ability to supply nutrients
0 kg K/ha
30 kg K/ha
60 kg K/ha
0 kg N/ha
30 kg N/ha
50 kg N/ha
70 kg N/ha
Burundi: N and K fertilizers required for 5 tons/ha maize yield
12/17/13&
2&
IFDC Blended fertilizers consider:
! Specific crop requirements
! Soil nutrient supply ! Yield potential (based
on climate, farmer goals)
...to optimize yields and profits
IFDC
Blending in the SSA context
! Many countries have only approved N, P, and K fertilizers
! Other nutrients ( e.g., Mg, S, Zn, B) may limit NPK response
! Countries must address deficiencies of all nutrients in order to optimize yields and realize best economic returns to fertilizers
NPK& NP&+&S,&Zn,&B&
Mozambique:$$Deficiencies$of$S,$Zn,$and$B$limit$NPK$response$
12/17/13&
3&
IFDC
What do commercial blenders do?
! Mix registered fertilizer ingredients for sale ! Mix fertilizer ingredients in response to
tenders and orders ! Some provide soil analytical services and
advice on blend formulations according to soil and crop requirements
! Often work with national and international research organizations to test and improve fertilizers
IFDC
What do commercial blenders do?
" A blender may have access to over 30 registered base fertilizer ingredients
" Active blenders may create hundreds of distinct blends annually
IFDC
Necessary blending regulations
! Registration of competent blending companies
! Registration of ingredients that go into blends " Minimum percentages of nutrients " Limits of contaminants (e.g., cadmium)
! Truth-in-labeling: " Percentages of nutrients in the blend specified " Specified percentages fall within pre-
determined limits
12/17/13&
4&
IFDC
Regulations that impede blending industry
! Some countries require that " Every blend be registered " Every blend be evaluated in field trials
It is not economically feasible to field test tens or hundreds of specific blends before release. Such regulations render a commercial blending operation financially unviable.
IFDC
Subsidies and the blending industry
! Government-subsidized fertilizers compete unfairly with the blending industry
! Alternative: " Governments can tender for proven blends for
specific crops and/or regions " This supports both farmers and the blending
industry
IFDC
Summary
# Regulate the ingredients in the blends—not each individual blend
# Blends themselves must $ Contain approved ingredients $ Comply to truth-in labeling standards
12/17/13&
5&
IFDC
Summary A vibrant blending industry
" Supports fertilizer research " Encourages rapid innovation to improve
fertilizer formulations " Improves returns to fertilizer investments " Increases national production
A positive regulatory environment is key to realizing the potential of fertilizer blending.
Thanks for listening!
12/17/13&
1&
www.afap&partnership.org0
&&&&&0
0
0
0
0
0
0
Agribusiness0Partnership0
Contracts00&
&
&0&&&
&&
December0020130
www.afap&partnership.org0
Agribusiness0Partnership0
Contracts0(APCs)0
The0AFAP0Program0–0December020130
In&return&for&AFAP&assistance:&1. Guarantees&and&financing&
assistance&2. Matching&grants&for&
improved&storage&3. Technical&assistance&and&
training&Businesses0make0a0development0commitment0above0and0beyond0the0company’s00regular0course0of0business0
&
www.afap&partnership.org0
Agribusiness0Partnership0
Contracts0(APCs)0
Current&APC&&pipeline&in&Ghana,&Mozambique&and&Tanzania:&& 920Agribusiness0Partner0
Contracts0
648,8100MT0of0FerOlizer0
Valued0at0$05470Million0
Reaching07,371,1180farmers00
0The0AFAP0Program0–0December020130
12/17/13&
2&
www.afap&partnership.org0
.0
.&
Key0Levers0for0Change00
Production Processing Distribution Agrodealer0Smallholder0
Farmer0
Output Market
Importer0credit0
Holding0warehouses0to0
improve0Omely0
availability0
! Improved0port0
infrastructure0and0
efficiency0
! Liberalized0ferOlizer0
trade0
Importation
Increased0focus0from0
major0ferOlizer0
producers0to0
develop00SSA0market0
More0financing0for0inventory0and0
storage0
More0local0blending0&0
granulaOon0 More0financing0for0inventory0and0
storage0
Timely0availability0
closer0to0farmers0
Educa&on)on)fer&lizer)use)best)prac&ces)
Output)market)access)to)increase)farmer)profitability)
Improved0subsidy0
schemes)
Market)development)
Value)added)processing)
Storage)
Strengthen Demand
Expand Supply of Fertilizer
Improve0Finance0in0
the0Channel
New0entrants,0Lower0costs,0More0savings0passed0on0to0
farmers0
More farmers use
appropriate fertilizers
Intermediate outcomes Lever 1 Lever 3 Ultimate outcomes
Lever 2
Policy0and0Policy0implementaOon0
*0
Lever 4
4&
*&Led&by&AfDB,&NEPAD,&RECs&–&AFAP&to&leverage&their&efforts&
www.afap&partnership.org0
.0
.&
.0
Payment Guarantees
AFAP0Financing0and0Benefits00
Grants
Accelerated0market0growth0
Lower0market0development0risk0
Higher0ferOlizer0use0
&0crop0yield0
! Reduce counterparty risk for fertilizer suppliers
Credit Guarantees
AFAP0AcOvity0 Benefits0 Outcome0
! Downstream working capital for distributors, retailers & co-ops
! Infrastructure financing to remove key supply chain bottlenecks
! Link with existing output market value chain programs to raise fertilizer use & crop yields
! Monitor to assess impact on farm-gate prices and fertilizer use
! Build capacity for value chain players and banks to facilitate increased credit in channel
! Policy advocacy to support development of efficient and stable fertilizer markets
! Information systems for market information and demand aggregation
5
www.afap&partnership.org0
Thank0you!0
PresentaOon0Title0
12/17/13&
1&
&&&&&&&&&&&&&&&
Seed&Policy:&Examples&of&engaging&the&private§or:&Dialogue,&Licensing,&and&Certification&&
&
Jitu&Shah&
AFSTA&President&
The&process&starts&with&the&Identification&of&Key&Players&
Government&Ministries&
Government&AgenciesM&Regulators&
Farmers&
Seed&Merchants&
Research&Institutions&/&Breeders&
Consumers&/&NGO’s&
Seed&Producers&
Policy&Framework&
Policy&&– DrivesMlegislation&&
In&Kenya&The&National&Seed&Policy&is&implemented&&through:M& Seed&and&plant&varieties&act& Plant&protection&act& Suppression&of&noxious&weed&act& Pest&control&act& National&BioMSafety&act&
&
12/17/13&
2&
Legislation&operational&through:M&&
Regulations&– In&Kenya&there&are&
Regulations&&on&National&variety&Release& National&performance&Trials& Regulations&governing&&packaging&of&seed& Plant&import®ulations& National&BioMSafety®ulations&
And&host&of&subsidiary®ulations&detailing&&specific&areas&of&seed&trade& Additional&to&the®ulations&are&published&procedures&and&timelines&for&the&conduct&of&seed&related&business.&
Under&the&Rapid&result&initiative&Govt.&agencies&have&service&level&agreements&with&stakeholders&to&ensure&efficiency.&
&Kenya&Model&
G&O&K&M&Policy&and&legislation& KEPHISM&Regulatory&agency&specifically&for&seed&and&plant&materials.&&
KARI/&KEFRIM&Research&institutions&involved&in&basic&research&and&custodians&of&public&genetic&materials&
KBSM&Government&standards&agency&for&manufacturing& NBAM&Responsible&for&bio&safety®ulation& STAKM&&Seed&Trade&Association&representing&all&seed&industry& KAM&–&Trade&Association&of&Manufactures&in&Kenya&
Kenya&
GOK$Policy$legislation$and$
Regulation$
$KEPHIS,$GOK$Agencies$STAK,$
KAM,$Stakeholder$NGO’s$&
Farmers,$Seed$Traders,$Merchants$
12/17/13&
3&
KEPHISM&Kenya&Plant&health&Inspectorate&services&
Main&agency&responsible&for&Plant&and&Variety&protection&in&Kenya.&Supervisor&and®ulator&for&seed&business.&&
Conducts&NPT’s&and&is&Secretariat&to&the&National&Variety&Release&committee.&
Responsible&for&Seed&certification&
&&&&&&SEED&CERTIFICATION&
KEPHIS&(Govt.&Agency)&is&responsible&for&seed&certification.&– Human&/Technical&resource&Capacity&– Level&playing&field&– Sets&Standards&– International&recognition&(UPOV)&
There&is&a&push&for&self®ulation&but&there&are&challenges:&– Human&capacity&in&private&seed&companies&– International&and&Regional&seed&trade&&– Policing&– Consumer&protection&
&&&&STAKM&Seed&Trade&Association&of&Kenya&
Member&association&for&all&Seed&Stakeholders.&
Represents&the&stakeholder&in®ional&and&international&forums.& Member&of&the&NPT&and&National&Variety&Release&committee.&
Involved&in&development&and&review&of&national&seed&policy&and&attending&to&seed&legislation&and®ulations&
Key&contact&for&seed&industry&to&dialogue&with&government&and&other&stakeholders.&
Organizes&Annual&congress&for&all&stakeholders&to&deliberate&on&matters&in&the&industry.&
12/17/13&
4&
&&Kenya&&seed&acts&review& National&seed&policy&launched&in&July&2011&
Support&legislation&&– Seed&and&plant&varieties&act&2011&
NPT®ulations&2013& Seeds®ulations&2013& Plant&Breeders&Rights®ulations&2013.&
Regulations&review&is&ongoing&¤tly&expected&to&be&finalized&this&week&(49)&and&gazetted&to&operationalize&the&act&by&15th&January&2014.&The&process&is&consultative&and&has&taken&a&long&time.&
&&&&&Consultations&on&the&Process&&
STAK&& Brings&together&all&stakeholders&in&the&seed&and&agribusiness§or&to&deliberate&on&issues&affecting&the&industry& Quarterly&meeting&of&STAK&executive&committee.& Review&STAK&activities& Deliberate&on&matters&touching&on&members& Participation&in&Farmer&Field&days&with&government:&
Issues&raised&are&jointly&owned,&addressed&and&solutions&sought.&
STAK&is&member&of®ional&trade&and&agribusiness&bodies&
Stakeholder&forums&
Periodic&sponsored&forums&and&workshops&on&matters&touching&seed&and&seed&production&where&government&and&other&agencies&were&invited.&– E.g.&Agri&Experience&(an&NGO)&in&Kenya&has&held&3&stakeholder&forums&where&the¤t®ulation&on&the&new&seed&and&plant&varieties&act&have&been&reviewed&before&presentation&to&parliament.&The&Ministry&of&Agriculture&and&a&legal&drafter&from&the&AG’s&office&was&present&to¬e&the&suggested&amendments.&
12/17/13&
5&
&&KARIM&Kenya&Agricultural&Research&Institute&
Govt.&research&institute&mandated&to&conduct&basic&research&in&food&crops,&horticultural&and&industrial&crops,&livestock&and&range&management.&
Custodian&of&public&genetic&materials&available&on&license&to&private§or&for&commercialization.&
Repository&of&agricultural&research&findings.&
&&&&Publicly&developed&varieties&
KARI&offers&varieties&under&license&to&private&companies&for&commercialization.&
– Open&Bids&after&variety&release&for&exclusive&use&&of&materials&for&&a&set&term&
– Private&M.O.U&for&commercialization&and&sharing&of&financial&proceeds&
– Outright&acquisition&of&variety.&&
&&&&Licensing&example&
East&African&Seed&Co.&acquired&exclusive&license&for&it’s&KH&600&15A&and&KH500&43A&maize&variety&from&KARI.&This&has&been&multiplied&by&the&company&and¤tly&on&commercial&sale&in&East&Africa.&
&The&financial&sharing&arrangement&are&entered&into&under&&&&&&&&&&an&MOU&and&the&costs&will&be&absorbed&in&the&pricing.&&
The&effect&on&pricing&of&the&seed&is&minimal&as&the&alternative,&development&of&own&varieties&is&usually&more&expensive&
12/17/13&
6&
SUBSIDY&
Kenya&Seed&company&is&Govt.&owned&and&gets&subsidized&in&its&operation&from&the&Treasury.&There&is&no&formal&subsidy&program&for&seed.&
Fertilizer&subsidy&are&through&the&National&cereals&and&produce&board,&this&is¬&a&formalized&subsidy&as&it&targets&mainly&maize&growers&and&is¬&wide&reaching.&– The&Malawi&example&through&STAM&model&appears&the&workable&model&&&
&&&&Challenges& Government&Policy&/&Subsidies&– Govt.&is&a&major&player&in&seed&trade.&
Distorts&pricing&and&competition&
– Management&of&subsidy&program&&
– Self®ulation& Seed&certification&–&industry&human&capacity&&challenge& Counterfeit&Seed&(Fake&seeds&policing)& Intellectual&Property&protection&
Low&Hybrid&seed&uptake&&&
&&&&&Summary&
National&Seed&policy&driven&by&consultation&with&key&stakeholders.&
Legislation&and®ulations&for&fair&and&level&playing&field.& National&association&of&seed&stakeholders&is&important&to&ensure&representation.&
Private&/Public&partnership.&
12/17/13&
1&
Indaba Agricultural Policy Research Institute
SUCCESSFUL POLICY MODELS IN THE SEED SECTOR IN ZAMBIA
CHANCE KABAGHE TECHNICAL CONVENING ON SEED AND
FERTILISER POLICY
5-7TH DECEMBER, 2013 ADDIS ABABA, ETHIOPIA
Indaba Agricultural Policy Research Institute
1
Introduction
! Zambia’s seed sector is characterized by the presence of local and international seed companies
! There are formal and informal seed systems " Formal systems involve mainly commercial hybrid
varieties such as maize, wheat and soybeans " Informal seed systems include farmer saved seed,
community based seed involving groundnuts, beans, millet, cowpeas
! Private and public sectors are involved in breeding
Indaba Agricultural Policy Research Institute
2
Hybrid maize seed
! There is high release of hybrid maize varieties: " Total number of hybrid maize varieties is 233.
! Increased private sector participation since liberalization ! Since 1991, 188 varieties (81%) of the total number
of varieties released are private while 45 varieties (19%) are public.
! But there is too much focus is on maize which leads to mono-cropping
12/17/13&
2&
Indaba Agricultural Policy Research Institute
Hybrid maize seeds released in Zambia 3
Period Total varieties released
Public Private
1960-1990 16 16 0 1991-2000 66 14 52 2001-2010 121 7 114 2011-2013 30 8 22 Total 233 45(19%) 118(81%) Source'of'data:'Seed'Control'and'Cer0fica0on'Ins0tute,'Zambia ! There are about 20 formal private seed companies and
over 40 community based NGOs involved in seed ! Government through the Zambia Agricultural Research
institute (ZARI) is also involved in breeding
Indaba Agricultural Policy Research Institute
4
Other important food crops
Crop Total number of varieties released
Public varieties
Private Varieties
Wheat 48 24 24 Sorghum 17 15 2 Pearl millet 11 10 1 Finger millet 7 7 0 Rice 17 15 2 Soya beans 36 12 24 Groundnuts 16 12 4
Source'of'data:'Seed'Control'and'Cer0fica0on'Ins0tute,'Zambia
Indaba Agricultural Policy Research Institute
5
Other important food crops…ctd
! Wheat and soya beans mainly for commercial farmers
! Millet, sorghum, rice, groundnuts are characterized by informal seed systems ! Supported by NGOs and public breeding ! Low interest by commercial seed companies
12/17/13&
3&
Indaba Agricultural Policy Research Institute
6
Strong policy framework in the seed sector
1. National seeds Policy-1999 ! embedded in the National Agricultural Policy
of 2004-2015 2. Plant Varieties and Seeds Acts Cap 236
! Appointed SCCI as a seeds quality controller " SCCI is responsible for a) variety testing,
registration and protection, b) Seed systems and inspections and; c) laboratory seed testing
" Provides an enabling environment for private sector
Indaba Agricultural Policy Research Institute
7
Strong policy framework in the seed sector
3. Plant Breeder’s Rights Act (no.18 of 2007) ! Implementation started in 2011 ! Intellectual property rights for breeders ! Grants rights to the breeder to multiply and release
the variety ! Spurs private investments by the private sector
Indaba Agricultural Policy Research Institute
8
Other factors behind the high rate of variety release in Zambia
! Influx of seed companies following liberalization ! Intense competition
! High yields especially for hybrid maize; ! can achieve 8 tons/Ha and thus low cost of seed
production ! Exports of hybrid maize are an incentive:
! Total seed produced: 30-35,000 tons per year ! Domestic consumption: 14-15,000 tons per year ! About 20,000tons is exported
! Strong R&D-private and public
12/17/13&
4&
Indaba Agricultural Policy Research Institute
Challenges
! Poor rural infrastructure " Long distances for farmers to access inputs
! State interference in maize marketing affects potential maize producers
" Low maize production by commercial farmers affecting demand for seed
! High dependence on rain-fed agriculture ! Fake seed
" Unscrupulous dealers buy commercial maize which they colour and sell as seed
9
Indaba Agricultural Policy Research Institute
10
Conclusions
Zambia has a well developed seed sector with both the private and public sector
The factors behind the high release are: ! Strong policy framework ! Strong enforcement through the SCCI ! Influx of private sector companies following
liberalization ! High yields-lowering the costs of seed
production
Indaba Agricultural Policy Research Institute
11
Recommendations
! Strengthen seed harmonization policies in the region
! Strengthen rural informal/community based seed systems
! Strengthen R&D and variety release for crops such as millet, beans, groundnuts, soya beans
12/17/13&
1&
Indaba Agricultural Policy Research Institute
SUCCESSFUL MODELS FOR PROMOTING INPUT ACCESS FOR SMALL SCALE
FARMERS IN ZAMBIA
BRIAN CHISANGA
TECHNICAL CONVENING ON SEED AND FERTILISER POLICY
5-7TH DECEMBER, 2013
ADDIS ABABA, ETHIOPIA
Indaba Agricultural Policy Research Institute
1
Outline
! Introduction ! Overview of FISP ! Why FISP has not delivered ! Models for enhanced input access among
small scale farmers ! The E-voucher system ! The Lima credit scheme ! Private sector models-Cargill Zambia
! Conclusion and recommendations
Indaba Agricultural Policy Research Institute
2
Introduction
! The major distribution channel for seed and fertiliser for the last decade is FISP
! FISP accounts for 200,000mt or 67% of the national fertiliser requirement for Zambia
! Complementary models of input distribution: ! Led by private sector , farmers’ union, NGOs
among others ! We highlight outcomes of FISP and present
successful models
12/17/13&
2&
Indaba Agricultural Policy Research Institute
3
Overview of FISP
! The main focus of FISP is to: ! Increase maize production through provision of
seed and fertiliser and ! Create an environment for private sector input
supply chains to develop
Indaba Agricultural Policy Research Institute
Overview of FISP…ctd
! 48,000 Mt of fertiliser
! 100,000 beneficiaries
! Input pack per hh: 8*50kg
! Subsidy rate: 50%
! 183,000 Mt of fertiliser (2012/13)
! 900,000+ beneficiaries
! Input pack per hh: 4*50kg
! Subsidy rate:50%
FSP at inception 2002/3 season FISP at present
4
Indaba Agricultural Policy Research Institute
5
Why FISP has not delivered
! Despite increasing aggregate maize production FISP has not delivered as a PRP
! Rural poverty remains high-about 80% ! Reasons:
" Poor targeting of farmers " Delays in distribution " Leakages " Crowding out of private sector " Lack of an exit strategy for farmers " Low fertilizer use efficiency
12/17/13&
3&
Indaba Agricultural Policy Research Institute
Models for enhanced input access among small scale farmers
! Innovative models promoting input access by farmers and private sector growth " E-vouchers –government, FAO and CFU " Lima credit scheme involving ZNFU, Zanaco and
private seed and fertiliser companies " Private sector led models such as Cargil
! Promotes private sector development, rural agro-networks and minimize government spending
6
Indaba Agricultural Policy Research Institute
1. E-voucher system-pilot
! The Zambian government is yet to pilot an e-voucher system
! FAO/CFU piloted an e-voucher project " Covering 37 districts, 55,812 beneficiaries, and 107
agro-dealers ! Reluctance by govt to pilot e-vouchers:
" agro-dealer networks are not adequately developed and capitalised
" Implementation failure and consequences on food security
! May be piloted in the 2014/15 season
7
Indaba Agricultural Policy Research Institute
E-voucher-how it works
! A web-based system accessible on mobile phones
! Realtime registration of beneficiaries and electronic payments of retailers
! Beneficiaries receive a voucher scratch card ! Voucher is redeemed at the nearest retail
outlet ! Agro-dealer receives instant payment through
online account
8
12/17/13&
4&
Indaba Agricultural Policy Research Institute
Benefits of E-vouchers
! E-vouchers address the challenges of FISP: ! Leverage private sector participation ! Reduce costs associated with current FISP –
administrative cost " E-voucher-5% of subsidy budget " Current FISP-35%
! Reduces delays in implementation by reducing tendering
! Farmers have a choice of inputs
9
Indaba Agricultural Policy Research Institute
2. Lima credit scheme
! Provides seed and fertilizer to small scale farmers on loan
! Interest rate: 14% ! Farmers pay 50% upfront and 50% after harvest ! Crops supported: maize and soya beans ! Stakeholders
! ZNFU ! Zanaco ! Seed and fertilizer companies
10
Indaba Agricultural Policy Research Institute
Lima credit scheme…ctd 11
! Present in10 provinces, 41 districts ! Covers 10,596 beneficiaries ! Loan consists of:
! 25 kg seed ! 8*50 kg bag fertiliser
! Beneficiaries identified through contact farmers at information centres
! Extension services provided at information centres
12/17/13&
5&
Indaba Agricultural Policy Research Institute
Lima credit scheme model
12
Contact Farmer
District Farmers Association
Farmer
ZNFU Secretariat
Zanaco Input Suppliers /Service Providers
Indaba Agricultural Policy Research Institute
Lima credit scheme growth trajectory
Season! No. of farmers!
hectarage! DFA! Approved Limit!ZMW!
Utilization of Limit
ZMW!2008/09& 600 600 2 2,000,000 309,000
2009/10& 1,334 2,229 10 4,000,000 3,068,000
2010/11& 1,511 3,320 18 8,000,000 5,090,000
2011/12 4,026 10,088 25 20,000,000 17,484,031
2012/13 10,596 21,508 38 65,000,000 38,175,810
Indaba Agricultural Policy Research Institute
Productivity of scheme beneficiaries 14
Season Yield/ha (tons)
Average ha/farmer
Recovery
2008/09 1.75 1 100% 2009/10 2.5 1.7 98.3% 2010/11 2.5 2.2 - 2011/12 2.7 2.5 - 2012/13 3.2 2.1 100%
12/17/13&
6&
Indaba Agricultural Policy Research Institute
3. Private sector model-Cargill Zambia
! Provides inputs on credit for maize production " For farmers involved in cotton contract farming
! Inputs include: " 10 kg hybrid seed " 4*50kg fertiliser
! Present 10 districts of Eastern Province ! 70,000 households growing cotton and maize ! Payback at harvest ! Recovery rate: 80%
15
Indaba Agricultural Policy Research Institute
3. Private sector model-Cargill Zambia…ctd ! Productivity increased with promotion of CA ! Extension services provided: 150 extension
services
16
Indaba Agricultural Policy Research Institute
Conclusion
! Government led input distribution models have several shortcoming ! Rural poverty rates have remained high ! Can be improved through e-vouchers
! Private models operate more efficiently ! higher yields, production and high loan recovery ! Effective extension systems ! Diversification in production
17
12/17/13&
7&
Indaba Agricultural Policy Research Institute
Recommendations
! Implementation of e-vouchers by the public model
! Create supportive environment for private sector and NGOs models of input distribution to small scale farmers
18
Indaba Agricultural Policy Research Institute
THANK YOU! 19
12/17/13&
1&
Fer*lizer&policy&in&Rwanda:&promo*ng&use,&priva*zing&
trade&&
Presenta*on&to:&Technical&Convening&on&Agricultural&Inputs&Policy&in&Africa&5G7&December&2013,&Addis&Ababa&
By:&David&Gisselquist,&IFDc&
Geography:&long,&costly&transport&
DarGesGSalaam&to&Kigali&– 1,700&kms,&$160/ton&
Mombasa&to&Kigali&– 1,700&kms,&$160/ton&
BUT…imported&agric’l&products&(eg,&rice)&pay&the&same&high&transport&costs&SO…&for&many&crops,&rates&of&return&to&fer*lizer&use&are¬&hurt&by&high&transport&costs&&
Geography:&arable&land/capita&
Popula*on& 11,000,000&
Arable&land& &&1,000,000&ha&
People&per&arable&hectare&
11&
Average&farm&size&per&agric’l&household&
0.5&ha&
12/17/13&
2&
Low&fer*lizer&use&through&2005&
Through&&1980s:&FAO,&GoR&extension,&no&private§or&(1#3%kg/ha)% 1994G1998:&distribu*on&free&or&with&gov’t&
credit,&repayment&low&(2#4%kgha)% 1999G2005:&GoR&gets&out,&removes&import&
du*es,&urges&private&trade,&World&Bank&subsidized&credit&for&importers&(5#6%kgs/ha)%
Priva5zed,%liberalized,%but%use%far%too%low!%What%to%do?%
2007G2012:&S*mula*ng&demand&NOTE:%This%table%applies%only%to%%subsidized%fer5lizers.%Private%traders%import%and%distribute%5,000%tons%of%unsubsidized%fer5lizers,%mostly%for%tea,%coffee%
Extension%to%s5mulate,%educate%farmer%demand%%
Fer5lizer%vouchers%linked%to%intensive%effort%to%promote%specific%food%crops%
Who&imports?& GoR&
Who&distributes?& Private&distributors,&assigned&districts&
Subsidies?& Transport&&from&port&+&targeted&voucher&
Targeted&&credit?& To&distributors,&dealers,&farmers&
Who&sets&prices?& GoR&
Use:&kg/ha& 30&kg/ha&
Low&fer*lizer&use&through&2005&
12/17/13&
3&
2007Gtoday:&gecng&it&right&
Focused&extension&program,&promo*ng&highGyields&for&specific&crops:&hybrid&maize,&potatoes,&rice,&wheat& Government&imports,&but&from&&&&
Latest&policy&changes& 2013:&– GoR&gets&out&of&fer*lizer&imports&for&subsidy&program&– GoR&stops&targeted&fer*lizer&credit&to&distributors,&farmers&– GoR&consolidates&subsidies&in&targeted&vouchers&
2014?&– GoR&wants&eGvouchers&for&easier&monitoring&to&ensure&
subsidized&fer*lizer¬&exported&– his&can&be&done&with&mFarms&smartGphone&repor*ng&by&
importers,&distributors,&agriGdealers&– With&beeer&tracking&of&fer*lizers&sold&against&vouchers,&GoR&can&
allow&anyone&to&import&and&sell&against&vouchers& Compe**ve&markets& price&controls¬&needed& new&products&
Rwanda&relies&on&a®ional&market&Regional)market)thru)Dar)es)Salaam)and)Mombasa)Kenya:&&&&&&&&&&&&&&&&&&500,000&mt&Tanzania:&&&&&&&&&&&&&250,000&&mt&&&&&&&Uganda:&&&&&&&&&&&&&&&&&45,000&mt&Rwanda:&&&&&&&&&&&&&&&&35,000&mt&Burundi:&&&&&&&&&&&&&&&&40,000&mt&So&Sudan:&&&&&&&&&&&&&&minor&Eastern&DRC:&&&&&&&&minor&&Total:&&&&&&&&&&&&&&~&900,000&mt&
12/17/13&
4&
Lots&leh&to&do:&expect&progressive&rapid&growth&in&fer*lizer&use&
country& Rwanda& Bangladesh&Popula*on& 11,000,000& 160,000,000&Arable&land& ~&1,00,000&ha& 9,000,000&ha&People&per&arable&hectare&
11& 18&
Fer*lizer&use&(tons/year)&
35,000&tons& 4,000,000&tons&
Fer*lizer&use&(kg/ha)& 35&kgs/ha& 450&kgs/ha&
12/17/13&
1&
!
Addressing&soil&fer2lity&to&maximize&
impact&of&seed&and&fer2lizer&policies&
Richard&B&Jones&
!
Three%important%parameters%affec0ng%fer0lizer%use%(Yanngen%et#al,%1988)%
The&technical&response&to&fer2lizer&use&– Units&of&output&(O)&from&one&unit&of&nutrient&(N)&(the&O/N&ra2o)&
The&rela2onship&between&output&price&and&fer2lizer&price&– Units&of&output&needed&to&purchase&one&unit&of&nutrient&(PN/PO)&
The&valueJcost&ra2o&(VCR)&– (O/N)/(PN/PO)&
!
Value&cost&ra2o&
This&is&defined&as&the&sales&value&of&the&extra&yield&produced&by&using&fer2lizer÷d&by&
the&cost&of&that&fer2lizer.&Normally,&a&VCR&of&
at#least#two&is&considered&necessary,&although&a&VCR&of&this&level&is&risky&if&there&is&a&danger&
of&drought,&disease&or&crop&prices&falling&
12/17/13&
2&
!
What%are%we%trying%to%do?% Fer2lizer&policy&interven2ons&– Reduce&the&cost&of&fer2lizers&through&improved&efficiencies&in&the&supply&chain&
Increase&technical&response&to&fer2lizer&use&– Integrated&soil&fer2lity&management&(ISFM)&defined&as&“The&applica2on&of&soil&fer2lity&management&prac2ces,&and&the&knowledge&to&adapt&these&to&local&condi2ons,&which&op2mize&fer2lizer&and&organic&resource&use&efficiency&and&crop&produc2vity”&(CIAT,&2011)&
Includes&J&but¬&limited&to&J&appropriate&mineral&fer2lizers,&organic&input&management&and&improved&germplasm&
!
pp
Magnesium ppm 143 139 277 Mg 143
Manganese ppm 76 80 250 Mn 76
Sulphur ppm 14 20 200 S 14
Copper ppm 1.09 2.00 10.00 Cu 1.09
Boron ppm 0.34 0.80 2.00 B 0.34
Zinc ppm 9.54 2.00 20.00 Zn 9.54
Sodium ppm 58 < 133 Na 58
Iron ppm 178 150 350 Fe 178
C.E.C meq/100g 11.56 15.00 30.00 C.E.C 11.56
Aluminium ppm 1108 < 1200 Al 1108
EC (Salts) uS/cm 43 < 800 EC(S) 43
PERCENTAGES AND RATIOS
Calcium % % Ca% 51.19 60 72 51.19
Magnesium % % Mg% 10.28 10 20 10.28
Potassium % % K% 6.64 3 8 6.64
Sodium % (ESP) % Na% 2.18 0 5 2.18
Other Bases % % OB% 5.98 3 10 5.98
Hydrogen % % H% 23.73 10 15 23.73
Total 100.00%
Ca:Mg Ratio % Ca:Mg 4.98 4 7 4.98
COMMENTS
> Low pH can cause deficiencies of phosphorus, calcium, magnesium and molybdenum. > Low Ca levels reduces soil microbial activity and as a result,
!
“4R”Nutrient&Stewardship&Framework&
(IPNI)&&
12/17/13&
1&
IFDC
Principles to Guide Cost-Effective Policies
Peter Heffernan and Joshua Ariga
Technical Convening on Agricultural Inputs Policy in Africa
Addis Ababa, Ethiopia December 5-7, 2013
Key&Challenges&to&Address&
Importa(on* Distribu(on* Farm*Level*
Vessel&Size& Logis;cs&capability& Appropriate&fer;lizer&
Financing&costs& Storage& New&technology&
Port&cost&and&capacity& Limited&agronomic,&&&business&skills&
Farmer&capacity&building&
Exchange&rate&risks& Access&to&capital& Access&to&capital&
Subsidy&mechanisms& Rural&infrastructure&
Market&informa;on&
Output&markets&
Trade&networks&
Key&Principles&to&Guide&CostPEffec;ve&Input&Policy&
Increase&farmer&access&to&input&and&output&markets& Linking&farmers&to&suppliers,&buyers&and&processors& Priori;za;on&of&logis;cs&investments&to&reduce&cost&and&risk& Reducing&distance&to&farmer&&
Promote,¬&impede,&private§or&investment&– Minimize&market&distor;ons&– Promote&stable&business&environment&
Promote&innova;on&and&choice&– Support&market&entry&and&compe;;on&– Facilitate&farmer&access&to&most&appropriate&technology&
12/17/13&
2&
Key&Principles&to&Guide&CostPEffec;ve&Input&Policy&
Capacity&building&for&technology&transfer& Agronomic&training&/&fer;lizer&benefits& Farm&demonstra;ons/Fer;lizer&recommenda;ons& Training&of&agroPdealers&and&extension&agents&&
Liquidity&is&cri;cal&across&the&en;re&value&chain& Constraint&faced&by&all&actors& Risk&sharing&mechanisms&
Encourage&free&flow&of&inputs& Eliminate&tariffs&and&other&trade&barriers& Develop®ional&corridors& Harmoniza;on&of&policies&
Key&Principles&to&Guide&CostPEffec;ve&Input&Policy&
Profitability&and&sustainability&are&the&founda;on&of&increased&fer;lizer&use&&– Improving&crop&response&rates&through&fer;lity&
management&– Lowering&the&cost&of&delivering&fer;lizer&to&farmers&– Raising&the&farmPgate&price&of&output&&&&
Maximize&the&use&of&the&private§or&to&op;mize&the&use&of&scarce&public&resources&
12/17/13&
1&
Input&Subsidy&Programs&in&Sub3Saharan&Africa&
T.S.&Jayne,&Michigan&State&University&&
Technical&Convening&on&Inputs&Policies&in&Africa&December&6,&2013& 1&
Policy&engagement&calendar&date% event% par*cipants% Main%messages%
March&2014&
Africa&Union&Ministers&of&Agriculture&meeIng,&Addis&Ababa&
Policy&makers& 1. Move&to&more&holisIc&strategy:&&from&promoIng&ferIlizer&use&to&sustainable&intensificaIon&
2. ShiO&budget&resources&toward&public&investments&with&major<&payoffs&
3. Support&and&rely&on&naIonal&policy&insItutes&and&networks&
March&2014&
Africa&Union&–&CAADP&meeIng&(need&more&info)&
Policy&makers&
July&2014&
ReNAPRI&Regional&Agricultural&Stakeholders&Conference,&Lusaka&
RepresentaIves&of&private&and&public§or;&policy&analysts&from®ion&
Late&2014&
Global&ForesighIng&conference,&Washington,&DC&
InternaIonal&–&development&partners,&policy&makers,&academics&
2&
Context&for&this&seminar&
10&years&ago,&input&subsidy&programs&(ISPs)&were&out&of&favor&–&very&few&in&Sub]Saharan&Africa&
ISP&expenditures&is&SSA&now&account&for&over&US$2.0&billion&per&year&&
How&did&we&get&to&where&we&are&now&in&2013?&&
3&
12/17/13&
2&
How&did&ISPs&go&from&“bust”&in&early&2000s&to&“boom”&in&2013?&&&
1. HIPC&
2. ShiO&from&condiIonality&to&budget&support&
3. Malawi&miracle&]]&“…simply&by&ignoring&the&experts”&
4. Rise&in&global&food&prices&since&2007&
5. ShiO&in&WB&posiIon&–&support&for&“smart”&subsidy&programs&
WB&and&other&basket&donors&now&financing&most&of&the&7&countries&with&the&biggest&ISPs&in&SSA&&
4&
4&questions&
1. There&is&a&role&for&ISPs&in&most&SSA&countries:&&true&or&false%
2. Do&you&feel&that&ISPs&in&most&SSA&countries&need:&A:&&no&changes&to&design%B:&&small&tweaks%C:&&major&reforms/improvements%D:&&should&be&disconInued%
5&
4&questions&
1. There&is&a&role&for&ISPs&in&most&SSA&countries:&&&&&&&&&&&&&&&true:%%69%%
2. Do&you&feel&that&ISPs&in&most&SSA&countries&need:&A:&&no&changes&to&design%B:&&small&tweaks%C:&&major&reforms/improvements%D:&&should&be&disconInued%
6&
12/17/13&
3&
4&questions&
1. There&is&a&role&for&ISPs&in&most&SSA&countries:&&&&&&&&&&&&&&&true:%%69%%
2. Do&you&feel&that&ISPs&in&most&SSA&countries&need:&A:&&no&changes&to&design:&&0%%
B:&&small&tweaks:&&4%%
C:&&major&reforms/improvements:&&81%%
D:&&should&be&disconInued:&&15%%
7&
4&questions&
3. What&should&be&the&primary&raIonale&for&input&subsidy&programs:&&A:&&Increasing&food&supplies&/&food&self]sufficiency&B:&&Poverty&reducIon&C:&&Dynamic&economic&growth&D:&&Others&
&
8&
4&questions&
3. What&should&be&the&primary&raIonale&for&input&subsidy&programs:&&A:&&Increasing&food&supplies&/&self]sufficiency:&27%%
B:&&Poverty&reducIon:&&12%%
C:&&Dynamic&economic&growth:&&38%%
D:&&Other:&&23%%
&
9&
12/17/13&
4&
4&questions&
4. Do&you&feel&that&ISPs&in&SSA&should&be:&&A:&&Scaled&up?&B:&&Are&at&about&the&right&level&of&expenditure&C:&&Should&be&downsized&
&
10&
4&questions&
4. Do&you&feel&that&ISPs&in&SSA&should&be:&&A:&&Scaled&up?&&8%%
B:&&Are&at&about&the&right&level&of&expenditure:&&0%%
C:&&Should&be&downsized:&&92%%
&
11&
Emerging&consensus&of&workshop&participants&
1. Spending&a&large&share&of&the&ag&budget&on&ISPs&may¬$be$the$most$effective$way&to&promote&the&welfare&of&it&citizens,&but&it&is&a&highly$demonstrable$way&to&do&so.&&
12/17/13&
5&
Emerging&consensus&of&workshop&participants&
2. ISPs&are&a&powerful&tool&to&quickly&raise&food&production….&
3. But&if&they&account&for&too&large&a&share&of&agricultural&spending,&they&can&crowd&out&other&public&investments&required&for&sustainable&development&&
Emerging&consensus&of&workshop&participants&
4. Focus&on&making&inputs&proPitable&/&sustainable&use:&&
Pro6itable$use&=&major&drivers:&! &&crop&response&rates&! &&output&price&! &&input&prices&
VariaIon&in&farmers’&efficiency&of&ferIlizer&use&on&maize,&Agroecological&Zone&IIa,&Zambia&
0
1
2
3
4
5
0 5 10 15 20 25 30 35
Marginal product (kgs / kg nitrogen)
Per
cent
of
farm
s
Note: Zone IIa is a relatively high-potential zone suitable for intensive maize production
12/17/13&
6&
16
From%Larson%and%Oldham,%%
Mississippi%State%University%Extension%Service,%2008.%%
Emerging&consensus&of&workshop&participants&
4. Focus&on&making&inputs&proPitable&/&sustainable&use:&&
Pro6itable$use&=&major&drivers:&! &&crop&response&rates&! &&output&price&&! &&input&prices&…..Underlying&investments&in&R&D,&extension&programs,&infrastructure,&etc.&
Indaba Agricultural Policy Research Institute
Public spending on agriculture, 2010
FRA 61%
FISP 30%
Other 9%
18
Source: Min. Finance Yellow book
12/17/13&
7&
Indaba Agricultural Policy Research Institute
Public spending on agriculture, 2010
FRA 61%
FISP 30%
Other 9%
19
Source: Min. Finance Yellow book
Input subsidy program
Indaba Agricultural Policy Research Institute
Public spending on agriculture, 2010
FRA 61%
FISP 30%
Other 9%
20
Source: Min. Finance Yellow book
Input subsidy program
maize marketing board and price supports
Indaba Agricultural Policy Research Institute
Public spending on agriculture, 2010
FRA 61%
FISP 30%
Other 9%
21
Source: Min. Finance Yellow book
Seed improvement Farm extension /
training programs Irrigation systems Responding to
climate change Policy analysis
Rural electrification Road-rail-port
infrastructure Land grant university
system
12/17/13&
8&
Indaba Agricultural Policy Research Institute
22
Diversion&of&ferIlizer&from&FISP,&Zambia&&
Farmer%claims% FSP/FISP%distribu*on%
Plan*ng%year% OOOOOOOOOOOOOOOOOOOOMetric%TonsOOOOOOOOOOOOOOOOOOOO%
2002% 31,722% 48,000%
2003% 33,372% 60,000%
2004% 16,792% 50,000%
2005% 23,595% 50,000%
2006% 58,404% 84,000%
2007% 43,596% 50,000%
2008% 55,114% 80,000%
2009% 69,103% 106,000%
2010% 116,116% 179,000%
2002%O%10% 447,814% 707,000%
Source:&Mason,&2011&
33%%
63%%
Question:&
Given&that&ISPs&will&continue,&what&concrete&guidance&can&be&identiPied&to&improve&their&effectiveness?&
23&
Proposal&1:&&&Raise&public&investment&in&agronomic&research&and&extension&programs&to&enable&farmers&to&use&fertilizer&more&efPiciently&&
12/17/13&
9&
Proposal&2:&&Reconsider&targeting&guidelines&to&achieve&more&equitable&development&impacts&&
FISP fertiliser received (2010/11 crop season) and expected maize sales, 2011, by farm size category
26
Total area cultivated (maize + all other crops)
Number of farms
% of farms % of farmers
receiving FISP
fertilizer
kg of FISP fertilizer
received per farm
household
% of farmers
expecting to sell maize
Expected maize sales
(kg/farm household)
(A) (B) (C) (D) (E) (F)
0-0.99 ha 616,867 41.9% 1-1.99 ha 489,937 33.3% 2-4.99 ha 315,459 21.4% 5-9.99 ha 42,332 2.9% 10-20 ha 6,626 0.5% Total 1,471,221 100%
Source:&MACO/CSO&Crop&Forecast&Survey,&2010/11
FISP fertiliser received (2010/11 crop season) and expected maize sales, 2011, by farm size category
27
Total area cultivated (maize + all other crops)
Number of farms
% of farms % of farmers
receiving FISP
fertilizer
kg of FISP fertilizer
received per farm
household
% of farmers
expecting to sell maize
Expected maize sales
(kg/farm household)
(A) (B) (C) (D) (E) (F)
0-0.99 ha 616,867 41.9% 14.3% 1-1.99 ha 489,937 33.3% 30.6% 2-4.99 ha 315,459 21.4% 45.1% 5-9.99 ha 42,332 2.9% 58.5% 10-20 ha 6,626 0.5% 52.6% Total 1,471,221 100% 28.6%
Source:&MACO/CSO&Crop&Forecast&Survey,&2010/11
12/17/13&
10&
FISP fertiliser received (2010/11 crop season) and expected maize sales, 2011, by farm size category
28
Total area cultivated (maize + all other crops)
Number of farms
% of farms % of farmers
receiving FISP
fertilizer
kg of FISP fertilizer
received per farm
household
% of farmers
expecting to sell maize
Expected maize sales
(kg/farm household)
(A) (B) (C) (D) (E) (F)
0-0.99 ha 616,867 41.9% 14.3% 24.1 1-1.99 ha 489,937 33.3% 30.6% 69.3 2-4.99 ha 315,459 21.4% 45.1% 139.7 5-9.99 ha 42,332 2.9% 58.5% 309.7 10-20 ha 6,626 0.5% 52.6% 345.6 Total 1,471,221 100% 28.6% 77.1
Source:&MACO/CSO&Crop&Forecast&Survey,&2010/11
FISP fertiliser received (2010/11 crop season) and expected maize sales, 2011, by farm size category
29
Total area cultivated (maize + all other crops)
Number of farms
% of farms % of farmers
receiving FISP
fertilizer
kg of FISP fertilizer
received per farm
household
% of farmers
expecting to sell maize
Expected maize sales
(kg/farm household)
(A) (B) (C) (D) (E) (F)
0-0.99 ha 616,867 41.9% 14.3% 24.1 22.2 1-1.99 ha 489,937 33.3% 30.6% 69.3 47.7 2-4.99 ha 315,459 21.4% 45.1% 139.7 64.0 5-9.99 ha 42,332 2.9% 58.5% 309.7 82.1 10-20 ha 6,626 0.5% 52.6% 345.6 86.8 Total 1,471,221 100% 28.6% 77.1 42.7
Source:&MACO/CSO&Crop&Forecast&Survey,&2010/11
FISP fertiliser received (2010/11 crop season) and expected maize sales, 2011, by farm size category
30
Total area cultivated (maize + all other crops)
Number of farms
% of farms % of farmers
receiving FISP
fertilizer
kg of FISP fertilizer
received per farm
household
% of farmers
expecting to sell maize
Expected maize sales
(kg/farm household)
(A) (B) (C) (D) (E) (F)
0-0.99 ha 616,867 41.9% 14.3% 24.1 22.2 135 1-1.99 ha 489,937 33.3% 30.6% 69.3 47.7 609 2-4.99 ha 315,459 21.4% 45.1% 139.7 64.0 1,729 5-9.99 ha 42,332 2.9% 58.5% 309.7 82.1 6,613 10-20 ha 6,626 0.5% 52.6% 345.6 86.8 15,144 Total 1,471,221 100% 28.6% 77.1 42.7 950
Source:&MACO/CSO&Crop&Forecast&Survey,&2010/11
12/17/13&
11&
31
Farm size (ha)
Kgs maize per kg
fertilizer
0-0.99 3.73
1-1.99 3.48
2-4.99 3.52
5-9.99 3.68
10-20 3.46
Sources: Burke et al. (2012a), Ricker-Gilbert et al.
Proposal&2:&&&reconsider&targeIng&guidelines&and&monitoring&
Conclusions&
33&
12/17/13&
12&
Conclusions&1. ISPs&would&be&more&effective&if&adequate&
resources&were&allocated&to&complementary&public&investments&
2. More&balanced&public&expenditure&patterns&could&more&effectively&promote&national&policy&objectives&
3. There&are&concrete&steps&for&improving&ISP&effectiveness&
4. Q&for&group&discussion:&&how&to&communicate&these&messages&effectively&to&governments?&
34&
Indaba Agricultural Policy Research Institute
12/17/13&
1&
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
Principles*for*sustainable*seed*policy*for*sub3Saharan*Africa*
Nicholas*Minot*IFPRI*537*December*2013*
Public*vs.*private*sector*roles*in*seed*sector*
! Proponents*of*public*sector*intervenFon*claim*private*sector*not*interested*in*serving*small*farmers*&*can t*be*trusted*with*this*strategic*sector*
! Proponents*of*private*sector*claim*private*sector*is*more*efficient*and*more*adaptable*to*changing*needs*of*farmers*
! But*seed*sector*development*requires*carefully*coordinated*efforts*of*public*and*private*actors*
! How*to*decide*which*roles*the*government*must*carry*out*and*which*roles*the*private*sector*can*do?***
! Economic*theory*suggests*public*sector*role*is*needed*to*address*externaliFes,*public*goods,*informaFon*asymetries,*and*equity*consideraFons**
CharacterisFcs*of*seed*as*product*
! Easy*to*copy.**Seed*producFon*involves*large*fixed*costs*of*developing*new*varieFes*and*uncertain*payoff,*but*once*produced,*many*seeds*are*relaFvely*easy*to*reproduce.**
! Quality*is*highly*variable.**Depends*on*its*geneFc*potenFal,*varietal*purity,*physical*cleanliness,*and*viability.**Good*seed*is*valuable;*bad*seed*can*be*worthless.**
! Quality*is*difficult*to*observe.** Consumer *doesn t*know*quality*unFl*aYer*it*has*been*purchased*and*used*( experience*goods )*
! Most*seed*consumers*in*sub3Saharan*Africa*are*poor*and*risk*averse.*Cash*constraints*oYen*limit*their*ability*to*purchase*seed*even*if*it*would*be*profitable*to*do*so*
12/17/13&
2&
ImplicaFons*for*role*of*public*sector*
CharacterisFc*of*seed*
ImplicaFon*for*role*of*public*sector*
Easy&to©& Private§or&will&under9invest&in&new&seed&technology&because&it&can t&control&who&copies&technology.&&Jus?fica?on&for&public&investment&in&research&&&development.&&
Quality&is&highly&variable&&&difficult&to&observe&&
Jus?fica?on&for&public&role&in&consumer&protec?on:&tes?ng,&seed&standards,&seed&cer?fica?on,&etc.&
Most&seed&consumers&in&are&poor&and&risk&averse&&
Jus?fica?on&for&assis?ng&farmers&on&equity&grounds&and&on&efficiency&grounds&(cash&constraints&prevent&profitable&investments&by&farmers)&
But*the*role*of*public*sector*varies*Stronger*jusFficaFon*for*public*role*
Weaker*jusFficaFon*for*public*role*
Component&of&seed§or&
Research,&varietal&development&&&quality&control&
Produc?on&(mul?plica?on)&and&marke?ng&
Characteris?cs&of&crops&
Open9pollinated&varie?es&(easy&to©)&
Hybrid&maize,&vegetable&seed,&industrial&crops&
Characteris?cs&of&farmers&
Crops&grown&by&small9scale&(poor)&farmers&
Crops&grown&by&large9scale&farmers&
Ins?tu?onal&development&
Ins?tu?ons&are&weak&and&underdeveloped&
Ins?tu?ons&are&more&developed&
Requirements*for*private*seed*company*development*
! Clear*regulatory*framework.*Clear*statement*of*the* rules *of*the*industry,*including*approval*of*private*seed*companies.**
! Fair*compeFFon.**Private*firms*must*have*some*assurance*that*they*will*not*be*compeFng*with*subsidised*state3owned*seed*enterprise.*
! Access*to*germplasm.**Local*seed*companies*will*not*enter*unless*they*have*access*to*germplasm*from*naFonal*or*internaFonal*research*centers.*Given*the*economies*of*scale,*risk,*and*difficulty*of*breeding,*local*seed*companies*iniFally*concentrate*on*mulFplicaFon*of*exisFng*varieFes.***
! Only*limited*distribuFon*of*free*emergency*seed.*Private*seed*companies*will*only*enter*a*market*in*which*the*distribuFon*of*free*or*subsidised*seed*by*the*government*or*NGOs*is*limited*in*Fme*and*space.*
12/17/13&
3&
Program*assistance*to*seed*companies*
! Assist*contract*growers*become*independent.**Contract*farmers*can*evolve*into*seed*company*growing*with*or*without*contracts.**
! Provide*training*and*credit*to*farmer*associaFons.**IniFally,*they*supply*other*members;*later,*they*may*formalise*and*supply*non3members.*
! Provide*equity*capital*&*technical*assistance*to*new*seed*companies.**
! Form*regional*associaFons.**AssociaFons*facilitate*exchange*of*informaFon,*lobbying*for*be`er*regulaFon,*code*of*conduct,*and*promoFon*of*regional*harmonizaFon*of*seed*regulaFon*
! Promote*agro3input*dealers*through*credit,*training,*associaFon,*and*establishment*of*code*of*conduct.*
Regulatory*assistance*to*seed*companies*
! Variety*release*procedures*should*be*clarified,*simplified,*and*accelerated;*
! Germplasm*should*be*made*available*by*public*research*insFtutes*to*private*seed*enterprises;*
! Import*restricFons*should*be*relaxed*on*seed*and*germplasm*(mutual*recogniFon);**
! Plant*variety*protecFon*to*protect*varieFes*from*commercial*copying*(but*not*farmer*saving)*
! Seed*cerFficaFon*should*be*either*voluntary*or*based*on*looser*standards*to*allow*a*wider*range*of*types*of*seed*in*the*market*place.*
Formal*and*informal*seed*sectors*
Formal*sector* Informal*sector*
Varietal&development&
Agronomic&breeding&programs& Farmer&selec?on&over&?me&
Characteris?cs&of&seed&
Varietal&purity,&high9yielding&with&fer?lizer&and&good&rain&
Mixed&varie?es,&lower&yielding&but&more&tolerant&
Processing& Seed&processing&plant&using&specialized&machinery&
LiYle&or&no&cleaning&&
Cer?fica?on&& Yes& No&
Distribu?on& Research¢ers,&extension&offices,&agro9input&dealers&
Farmer9to9farmer&exchange&at&markets&
Crops& Hybrid&maize,&vegetable&seed,&coYon&and&other&cash&crops,&some&pulses,&some&OPV&maize&
OPV&sorghum&and&millet,&some&pulses,&root&crops&
12/17/13&
4&
SupporFng*the*informal*seed*sector*
Why:***! Most*efforts*to*date*have*focused*on*developing*the*formal*
seed*sector.*! However,*informal*sector*accounts*for*80390%*of*seed*use*in*
most*African*countries*! Informal*sector*parFcularly*important*for*many*crops*grown*
by*poor,*including*sorghum,*millet,*cassava,*yams,*and*sweet*potatoes*
! Formal*sector*unlikely*to*serve*this*market*in*medium*term*
SupporFng*the*informal*seed*sector*
How:***! Create* standard *seed*category*with*looser*requirements*! IdenFfy,*promote,*and*train*farmers*to*be*seed*mulFpliers*for*village,*cooperaFve,*or*farmer*associaFons*! Contract*farmers*to*mulFply*seed*and*planFng*materials*! Distribute*disease3free*planFng*material*for*decentralized*mulFplicaFon*of*crops*with*bulky*planFng*material,*such*as*cassava,*sweet*potatoes,*and*plantains*! Facilitate*NGOs*and*farmer*organisaFons*in*seed*producFon*and*exchange*! Organise*seed*fairs*for*exchange*of*seed*
Summary*
Stage* Public*sector*role* Private*sector*role*
Research&and&varietal&development&
Research&on&most&OPV&grains&and&root&crops.&
Research&on&hybrid&maize,&vegetable&crops,&industrial&crops.&&Other&crops&as&PVP&established.&
Tes?ng&and&standards&
All&crops,&par?cularly&those&used&by&small&farmers&
Third9party&and&self&cer?fica?on&as&ins?tu?ons&develop&
Seed&produc?on&
Facilita?on&with®ula?on,&training,&credit&
Produc?on&of&seed&for&most&or&all&crops&
Seed&marke?ng& Facilita?on&with®ula?on,&training,&credit&&
Marke?ng&of&seed&for&most&or&all&crops&
Interna?onal&trade&
Facilita?on&with&harmoniza?on&of&rules&
Trade&in&seed&of&most&or&all&crops&
12/7/13
1
African(Union(and(the(Year(of(Agriculture(2014:(Expecta;ons(on(Fer;lizer(Policies(
Oumou(M.(Camara((IFDC/AUC)(USAID(Technical(Convening(on(Inputs(Policy(
December(5P7,(Addis(Ababa,(Ethiopia(
Context( At(the(19th(AU(Ordinary(Session((July(2012),(African(Heads(of(States(and(Governments(declared(2014(as(the(Year(of(Agriculture(and(Food(Security(in(Africa(
Theme:( Transforming(Africa s(Agriculture(for(Shared(Prosperity(and(Improved(Livelihoods,(through(Harnessing(Opportuni;es(for(Inclusive(Growth(and(Sustainable(Development ((
AUC(will(organize(several(con;nentPwide(ac;vi;es(with(a(view(to((– engage(state(and(non(state(actors(and(various(stakeholders(in(Africa(into(
broadPbased(consulta;ons.((– set(priori;es(for(the(next(decade(to(s;mulate(agricultural(growth(in(Africa.(
Seed(and(fer;lizer(policy(mee;ng(will(be(organized(to(shape(policy(priori;es(for(the(next(decade.(
2014(Year(of(Ag.(Ac;vi;es( January(2014:(Launch( March:(
– 10TH(CAADP(PP(– CAMA(
May:(IFPRI(Conference(on(Resilience( June:((
– African(Agribusiness(Forum(– Africa(Ag,(FNS(Planning(Leaders (Conference(
July:(AU(Summit( Sept:(African(Green(Revolu;on(Forum( Oct:(Africa(Month(of(FNS( Nov:(ReSAKSS(Annual(Conference(
12/7/13
2
Objec&ves(The(AUC(/IFDC(/USAID(propose(the(convening(of(a(one(day(high(level(mee;ng(on(
fer;lizer(policy((March(26,(2014)(in(Africa(to:(((
– Review(the(status(of(implementa;on(of(the(resolu;ons(of(the(Abuja(Declara;on(at(the(country(and(regional(levels;((
– Review(and(discuss(policy(experiences(on(fer;lizer(sector(development(since(the(Africa(Fer;lizer(Summit;(
– Take(stock(of(the(mul;ple(ini;a;ves(AU(Member(States,(RECs,(the(private(sector,(civil(society,(and(development(partners(have(undertaken(since(2006;(
– Provide(an(opportunity(to(share(experiences(and(views(on(successful(policy(interven;ons(for(s;mula;ng(rapid(growth(in(fer;lizer(use(in(Africa(at(the(country(and(regional(levels((smart(subsidies,(dealer(development,(policy(harmoniza;on,(nutrient(use(efficiency,(etc.);(
(– Discuss(effec;ve(policy(mechanisms(to(increase(private(sector(investment(for(na;onal(and(
regional(fer;lizer(market(development;((
– Evaluate(and(priori;ze(fer;lizer(policies(at(country(and(regionalPlevel(levels(and(shape(policy(priori;es(for(fer;lizer(sector(development(in(Africa;(and(
– Consider(concrete(implementa;on(issues.(
Shaping(Policy(Priori&es5for5Fer&lizer5Sector5Development5in5Africa5–Sub5Themes5(
( Improving(Fer;lizer(Use(Efficiency(
Reducing(Fer;lizer(Cost(at(the(FarmPGate(Level((transac;on(costs;(dealer(development;(smart(public(policies)(
Improving(Fer;lizer(Policy(Formula;on(and(Implementa;on(Mechanisms(at(the(Na;onal(and(Regional(Levels(
Improving(Access(to(Quality(Fer;lizer(via(the(Development(of(Regulatory(Systems((
S;mula;ng(Private(Sector(Investment(in(Fer;lizer(Sector(Development(
Expected5Outputs( Background(thema;c(papers(developed(
Post(Africa(Fer;lizer(Summit(policy(successes(and(failures(at(na;onal(and(regional(levels(iden;fied(
Policy(priori;es(for(fer;lizer(sector(development(iden;fied(
Policy(mechanisms(to(increase(private(sector(investment(for(na;onal(and(regional(fer;lizer(market(development(iden;fied.(
Policy(recommenda;ons(for(the5March528F30,520145Joint5AU5Conference5of5Ministers5of5Agriculture,5Fisheries,5Aquaculture,5and5Rural5Development(
12/7/13
3
Proposed5Members5of5Technical5CommiQee((
African(Union(Commission( Interna;onal(Fer;lizer(Development(Center(( USAID( Minister(of(Agriculture,(Nigeria( Africa(Fer;lizer(Agribusiness(Partnership( UN(organiza;ons((FAO,(IFAD)( OCP(–(Groupe(Office(Cherifien(des(Phosphates( Commissioner(for(Agriculture,(ECOWAS(/SADC/COMESA/ECCAS/EAC/IGAD/UMA(
Farmers(Federa;on( Yara(Interna;onal(
Thank(You!(
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