Download eNewsletter June 2014

Chikanta farmers celebrate a maize bumper harvest

Chief Chikanta; creating an enabling environment for private sector

investment

Smallholder attributes bumper harvest to private sector support

ETG groundnut outgrower scheme targets female farmers

NEWSLETTER | JUNE 2014Musika1

Dear reader,

Every issue of our newsletter is meant to give you additional insight into the operations of Musika as we strive towards the fulfilment of our overall vision of ‘a dynamic Zambian agricultural market that works for all stakeholders and in particular the rural poor’.

I therefore urge you to take keen interest in following some of the key developments taking place in the smallholder market, and see whether you can actively participate in accelerating our development efforts.

As you familiarise yourself with specific interventions that we have implemented together with our private sector partners, it is important for you to understand that our role, as with all interventions, is to simply demonstrate to the private sector the business potential that exists in remote but productive areas of the country.

This means that any subsidy given to our private sector partners is catalytic to the long-term development of a commercial market that will be sustained beyond Musika’s support.

Significantly, the value of targeting the smallholder market has been demonstrated to the point where the majority of market development work in Zambia’s more commercially viable areas is now undertaken by the agricultural retail firms themselves.

Musika has been on hand to provide targeted technical assistance at firm level to design and test new and inclusive business models.

In all cases, the interventions are designed with an exit strategy in mind. There are no open-ended support arrangements, but rather support that tapers off over an agreed period or is one off in nature and generally concludes with the private sector client taking over any costs being incurred by Musika as part of the firm’s own investment process.

In this issue of the newsletter, you will get an opportunity to read about Musika’s pilot projects, especially in the input market, that have been scaled up by private sector partners due to the commercial benefits that such interventions bring.

Crucially, it requires demonstrable growth potential and the presence of ‘industry leadership’, which is defined as one or more influential firms willing to drive forward an agenda that will benefit the industry as a whole.

With best wishes,

Reuben Banda

A message from the Managing Director

Musika is a Zambian non-profit company that stimulates and supports

private sector investment in the smallholder market.

VISION

Our vision is a dynamic Zambian agricultural market that works for all stakeholders and in particular the rural poor.

MISSION STATEMENT

To provide world class business development services to Zambia’s agricultural markets to deepen and broaden the impact of economic growth to all levels of rural society.

OUR STRATEGIC GOAL

Musika aims to “reduce rural poverty through integrating farming households in well-functioning agricultural markets”.

Musika is owned and managed by Zambians, developing home-grown solutions for the Zambian market.

CONTACT MUSIKA

+260 211 253 989 +260 211 250 355

(Fax) +260 211 255 502

6, Tukuluho Road, Long Acres Post Net No. 481, Private Bag E891

Lusaka, Zambia

www.musika.org.zm

CREATIVE AGENCY

Layout and Design by Global Research Insights Plus

+260 211 267 327/[email protected] www.grip.co.zm

Published in March 2014 by MUSIKA© All rights reserved.

Making Agricultural Markets Work for Zambia

Funded by Sweden and DFID Affiliated to Zambia National Farmers Union

JUNE 2014 | NEWSLETTER Musika 2

Parmalat Zambia has recorded a rapid increase of milk supplied by smallholder dairy farmers through the four Milk Collection Centers (MCCs) established by the company in Namwala district of Southern Province.

This was revealed during the launch of the MCCs by Parmalat on 30th June 2014 at a ceremony officiated by the Deputy Minister of Agriculture and Livestock and Itezi-tezhi Member of Parliament, Honourable Greyford Monde, at Niko.

The four centers, established with technical and financial assistance from Musika, are located in Namwala, Chitongo, Kabulamwanda, and Niko, and are currently benefitting over 400 farmers.

“At the end of January 2014 when we opened the first milk collection center at Namwala central, the volume received from the farmers was only 2,440 litres valued at K6,900. At the end of May, Parmalat received 200,000 litres of milk from the four MCCs representing an increase of 8,000 percent in five months, and this has injected K600,000 into the community,” observed Parmalat Milk Procurement Manager, Martin Njovu.

He explained that the Partnership between Musika and Parmalat provided smallholder milk producers in Namwala district with an opportunity to access a secure and reliable market for milk. This has had a positive impact on household incomes.

According to Njovu, Parmalat was

currently supporting 3,500 small scale dairy producers countrywide, who supplied about seven million litres of milk annually.

“Parmalat in collaboration with Musika has provided the Namwala milk producers with a route to markets for their milk which was previously going to waste. In Parmalat you have a processing partner who is trusted, reliable and has demonstrated wholeheartedly its commitment to developing smallholder dairy farmers in Zambia,” he pointed out.

Musika Board Chairman, Guy Robinson, emphasised that in addition to increasing access to an improved market, the intervention provided for knowledge transfer and provision of extension services aimed at improving the productivity of smallholders. He urged government to protect the smallholder dairy sector from unfair competition arising from cheap imported dairy products.

Robinson also encouraged the active participation of female farmers who have proved to be highly productive in the agriculture sector once given the necessary support.

“Most women who have actively participated in agricultural activities have been very successful. I would therefore encourage them not to be left behind so that they also benefit from this intervention which is meant to help them develop,” he emphasised.

Honourable Monde recognised Parmalat’s

Parmalat records increased volumes of milk collected through MCCs

contribution in transforming the lives of communities in Namwala district.

He expressed government’s commitment towards supporting initiatives that assisted in improving the livelihoods of communities located in remote areas.

“This project would not have been made possible if Musika did not find a willing cooperator, which in this case is Parmalat. Government will ensure that such interventions are supported with improved infrastructure such as a better road network and communication facilities so that more people have access to markets,” he said.

He observed that efforts to improve the breed of animals, provide veterinary and extension services as part of the intervention would boost the milk production capacity by farmers. The launch was witnessed by His Royal Highness Senior Chief Nalubamba, Chieftainess Choongo and Namwala District Commissioner, and the National Assembly Chairperson for the Agriculture Committee, Honourable Maxas Ng’onga.

The Deputy Minister of Agriculture and Livestock, Honourable Greyford Monde (in dark suit), tours the MCC facility at Niko.

Inside this edition

ETG groundnut out-grower scheme targets female farmers

3

Smallholder attributes bumper harvest to private sector support

4

BASF accelerates efforts to scale up the ‘Foot Guards’ business model

5

Tractor financing opens up opportunities for growth for smallholder service providers

6


7

Liquid lime; the answer to soil acidity challenges among smallholders

9

An ‘information first’ business model at work

10

Chief Chikanta; creating an enabling environment for private sector investment

11

Pegion peas outgrower scheme enables female farmer to diversify

12

Milk collection centers improve market access for smallholders

13


Export Trading Group Company Limited (ETG), with the support of Musika, recently handed over bicycles to ten

women agents in Katoba and Chipembi areas of Chongwe district to speed up the recruitment of 2,000 women smallholders under the company’s newly established groundnut out grower scheme.

In addition, the company handed over three groundnut shellers to help stimulate demand for shelling services among farmers in order to improve their productivity.

The groundnut out-grower scheme was established as an extension to the already existing pigeon pea out-grower scheme, initially supported by Musika, aimed at encouraging smallholders in Northern and Central provinces to grow pigeon peas at a commercial level, with ETG providing a ready market.

Speaking during the handover ceremony in Katoba area on 3rd June 2014, ETG Operations Manager Ravi Verma explained that the company was targeting the recruitment of 4,000 farmers during the 2014/2015 farming season, and increasing their access to inputs and extension services.

“We want to recruit 2,000 female farmers to grow groundnuts and 2,000 farmers to grow pigeon peas. ETG has now become a one-stop shop where farmers can sell their crop and at the same time buy seed, fertilisers and agro-chemicals through our depot here in Chongwe,” he explained.

ETG Country Manager Ajay Sharma emphasised that the company was able to purchase large quantities of commodities including maize and legumes such as soya beans and groundnuts at a competitive price which was embedded in the contract signed between the company and individual farmers.

“Last year ETG bought about 75,000 tons of maize and 24,000 tons of soya beans. This year 2013/2014 farming season we want to buy above 100,000 tons of maize from small scale farmers. We have the capacity to buy whatever quantities the farmers produce in terms of maize, soya

ETG groundnut out-grower scheme targets female farmers

beans and groundnuts at a competitive price, and we pay on the spot cash,” he explained.

Receiving her bicycle, Roselyn Simasiku, an agent for Kasenga area expressed happiness at the prospect of reaching out to more female farmers with product information and inputs. She appreciated ETG and Musika’s intervention which would enable female agents to work more efficiently.

Simasiku observed that the ability by ETG to bring inputs and provide a ready market for crops at the farmer’s door step was a source of encouragement for female farmers to join the company’s out grower scheme.

“Currently I have recruited 79 female farmers under the groundnut out grower scheme and this initiative has been received with both hands especially by us female farmers who always found it difficult to find a secure market for our crops,” she pointed out.

Simasiku challenged the farmers to exceed the expectations of ETG in terms of the quality and quantity of crop to encourage the company to continue doing business with smallholders in Chongwe district. She explained that this would translate into additional income that would enable farmers to graduate out of poverty.

“Farming is a business, so this out grower

scheme will enable us farmers to have enough money to buy soap, send our children to school and access medical services,” she observed.

His Royal Highness Chief Chamuka, who witnessed the handover ceremony in Chipembi area on 10th June 2014, urged his subjects to take advantage of the opportunities created by ETG and Musika to attract more private sector companies to help develop the community.

He challenged farmers to invest in farming as a business if sustainable partnerships between farmers and the private sector were to develop. Chief Chamuka urged his subjects to grasp the new concept of the provision of contracting services, as revealed by Musika and ETG, once farmers acquired agricultural equipment.

“ETG and Musika want us to change our mindset. Today we have learnt something new here – we need to diversify our production by planting crops like pigeon peas, and we also need to invest in machinery like the sheller so that we can use it to make money by servicing other farmers,” Chief Chamuka advised.

ETG started its operations in Zambia in 2004 and has established depots countrywide through which the company supplies inputs and buys various agricultural commodities including maize and legumes from smallholder farmers.

ETG Country Manager, Ajay Sharma, congratulates Roselyn Simasiku an agent for Kasenga area for being one of the recipients of a bicycle


Major firms including BASF, SARO, and MRI Syngenta recently organised a post-harvest field and

market day for farmers in Simaubi village of Chief Mapanza’s area located within Choma District.

The host was 42 year old Givers Munsanje Mukanachitanga, a smallholder farmer and agent for MRI seed, who lives approximately 81 kilometers from Choma town. As a beneficiary of products and services offered by the companies including seed, agrochemicals, agricultural equipment and extension services, Mukanachitanga had this 2013/2014 farming season produced a maize bumper harvest.

“This year’s harvest will give me over 150 tons compared to last year when I produced 75 tons simply because I took advantage of the opportunities provided by different companies,” he observed.

During the field day held on 12th June, 2014 spearheaded by Munzuma Estates an MRI Syngenta seed distributor, and supported by Musika, Mukanachitanga was eager to share with over 130 farmers that attended the event the benefits of adopting improved farming technologies.

The opportunity of working as an agent for Munzuma Estates, supplying seed to farmers within the community since 2009, exposed Mukanachitanga to different varieties of MRI Syngenta seed and the required agronomical conditions. Added to this was the knowledge he received on the use of herbicides, and the need to mechanise operations from land preparation to harvesting in order to increase productivity.

“I have personally benefitted from planting MRI seed 614 this season that is why I would recommend it to any farmer in my community, especially now that the rain season has become shorter. I was able to prepare my fields early even though the rains started late because I used the ripper and tractor I bought from SARO. I planted genuine seed from MRI and because I used the herbicide Stellar Star, I had no problems with weeds in my fields,” he observed.

Smallholder attributes bumper harvest to private sector supportMukanachitanga advised other farmers to invest in their production and lessen the dependency on government subsidised inputs.

“Prepare early by buying your fertiliser and seed immediately after you sell your maize so that once the first rain falls, you already have something to start with than to depend entirely on government. For the past two seasons, those that have not heeded my advice have been mourning the huge losses that they have incurred,” he advised.

Munzuma Estates proprietor, Gilbert Vlahakis, explained that the field day was the first of its kind that demonstrated the need for companies and organisations to develop strategic alliances aimed at servicing smallholder farmers with a range of products and services that had a positive impact on production.

“This event has been a success because of the positive response we received from MRI, SARO, BASF and Conservation Farming Unit after we requested them to come and demonstrate to the farmers how their products and information have benefitted farmers like Givas,” he explained.

The companies took advantage of the event to exhibit and promote the use of a maize sheller, a variety of agrochemicals, and demonstrated the use of a tractor drawn ripper. Other technologies that were promoted included the use of liquid lime, irrigation equipment, planter, fertilizer applicator, sprayer and solar energy products.

Musika facilitated linkages between the firms and smallholder farmers in Simaubi village with the aim of bringing products and services at their doorstep.

Givers Mukanachitanga (Right) explains to other farmers how he managed to control weeds in his field using herbicides while Eric Kalima (Left), BASF Southern Regional Manager, looks on.

Givers Mukanachitanga


BASF, a chemical company, has expressed its commitment to scale up the ‘Food Guards’ business model that was first implemented last year to intensify the promotion of a

herbicide called Stella Star among smallholders in Kalomo and Namwala districts of Southern province.

The intervention involved the recruitment of 20 interns from the Zambia College of Agriculture in Monze, who were stationed in selected rural communities including Chief Chikanta’s palace, Bulyambeba, Mobola, Bbilili, Nyawa, Muchila and Mbila.

Commenting on the performance of the business model implemented with the support of Musika, BASF Southern Regional Manager Eric Kalima explained recently that the company planned to implement the model at a larger scale by recruiting staff to reach out to a large number of smallholders in Mazabuka, Monze, Choma, and Kalomo districts.

The company planned to scale up the ‘Food Guards’ intervention under a new name called “Lima Chuma” in the local language which means “Cultivating Prosperity”.

“As a company we are very proud to be associated with such an initiative to the extent that now we want to scale it up, if possible bring other companies on board who can also participate. Now we are going to go in full time with 40 staff on bicycles and 10 supervisors on motorbikes, which Musika has funded to ease the challenge of mobility. With the help of these people on the ground, we are going to reach out to a lot of farmers,” he explained.

According to Kalima, the ‘Food Guards’ intervention was implemented over a period of one month within which orders of up to 11,000 litres of the herbicide Stellar Star were generated. This positive outcome encouraged BASF to scale up

BASF accelerates efforts to scale up the ‘Food Guards’ business model

the intervention this year 2014 by employing a staff member specifically responsible for the implementation of the “Lima Chuma” project.

“Because of what we did with Musika, this initiative has boosted the sales of BASF in terms of the product Stellar Star which we were promoting as an ambassador product to penetrate the smallholder market. Last year we received orders of 11,000 litres of Stellar Star just from the sensitisation we did in one month with the help of the students,” he pointed out.

“We have now employed a person specifically for that project so that we can give it the attention it requires,” explained Kalima.

In addition, the ‘Food Guards’ intervention was also meant to create employment for graduating students from higher institutions of learning. Kalima revealed that out of the initial 20 interns, BASF decided to employ some of them on permanent basis.

“We are going to move from using student internship because we are going to employ some of them. We have already picked about six to eight from the list of those who are graduating and participated in the initial project,” explained Kalima.

BASF and Musika implemented the ‘Food Guards’ business model to demonstrate a comprehensive private sector led extension service that would assist in the efficient delivery of product and general agricultural information, and improve access to productivity enhancing technologies.

“We are going to go out at full throttle in the four targeted areas and achieve the technology transfer to farmers. Definitely for the company to decide to take this route, it’s because what we did in the beginning yielded positive results,” he emphasised.

The 20 interns that participated in the BASF ‘Foot soldiers’ intervention.


Jabulani Bhebhe, 57, who lives in Shibuyunji district located about 65 kilometers West of Lusaka town, is

one of the tractor beneficiaries from the Musika/First National Bank/Conservation Farming Unit partnership programme, aimed at providing access to finance for equipment by smallholders.

Bhebhe acquired a brand new Tafe 59 60hp tractor and ripper at a total financed cost of K91,200 to be repaid over a period of three years at 16 percent interest. He paid an initial deposit of K34,500 as 30% equity contribution fee for the facility, whereas the actual showroom price at the time was K102,000 for a tractor unit, and K23,700 for a ripper unit.

“It was unbelievable, I applied end of September 2013 and it took only five days after my deposit at FNB bank for my tractor to be delivered to my farm in Kapyanga and no title deed was requested as security,” he said with a smile.

Bhebhe, a husband of two wives with 11 children, has always had a passion for farming which moved him to settle in Kapyanga in 1982. Through his hard work and tireless efforts Bhebhe procured a second hand tractor 15 years later.

“I didn’t utilise this tractor well, it was like buying problems,” he recounts.

Bhebhe had initially concentrated on working his fields because the old state of the tractor made it unreliable to provide services on commercial basis. He also did not own a ripper but relied on the use of a plough to prepare his and a few farmers’ fields.

But the rest is now history. The new equipment has enabled Bhebhe to take advantage of the huge business opportunity and he has developed into a reliable and reputable agricultural contractor with the passion to providing tractor services to his clientele all year round. According to Bhebhe, linking farmers to private organisations such as FNB and SARO, facilitated by Musika and the CFU, has benefitted his farming business and helped raise enough income

By James Luhana – Sector Coordinator, Service Markets

which has lessened the risk of him defaulting on the repayments.

“I have consistently paid my monthly obligations from November, 2013 to date. My plan is I make sure there is minimum K9,000 in my account for three months then every month through sms notifications on my phone the monthly deductions of K3,000 are effected. This means that I don’t need to travel to the bank when payments are due, instead I concentrate on looking for more business,” he explains.

In his tractor business strategy, the majority of Mr Bhebhe’s clients are women. In 2013, he provided ripping services to a total of 58 farmers among them were 38 women, covering approximately 158

Tractor financing opens up opportunities for growth for smallholder service providers

hectares. He charges K300 per acre for ripping and K250 per acre for ploughing. Despite receiving the tractor late in the season Bhebhe’s farm production for 2013/14 farming season increased from 20tons to 30tons of maize and from 2 tons to 5 tons of soya beans and maintained the 5 tons cotton. His plan for the 2014/15 farming season is to produce 200tons of maize and provide contract tillage services of up to 300 hectares. Bhebhe intends to diversify his business by investing in storage, transportation, spraying, shelling and planting equipment to make him a complete solution provider to farmers in the area. His immediate plan is to complete construction of a 12 x 5 meter grain storage facility connected to his unfinished agro shop.

Jabulani Bhebhe explaining the workings of the ripper to a female client


The month of May 2014 was a busy period for the community in Chikanta Chiefdom of Kalomo

district. Families were hard at work harvesting their maize crop after a successful farming season. Though the harvest was generally good in previous seasons, many smallholders described the 2013/2014 maize production as unprecedented.

Laurent Hanongo, 51, a small scale farmer in Mikata village attributed the high maize production to the presence of input companies within the community. The presence of firms such as SEEDCO, MRI Syngenta, ATS agrochemicals and Nyiombo Fertilisers helped reduce the risk of farmers buying fake agro products, which resulted in low yields.

As opposed to travelling approximately 108 kilometers to Kalomo and Choma town to buy inputs, Hanongo covered less than three kilometers to the new sales points established by SEEDCO and ATS agrochemicals at a central location within Mikata. His Royal Highness Chief Chikanta, supported by Musika, was instrumental


in persuading the companies to establish their operations in his chiefdom.

“Previously we would travel to Kalomo or Choma to buy the inputs. I would spend K60.00 on my transport, and this did not include the cost for transporting the bags of seed or fertiliser. The traders would also take advantage of our desperate situation and sell us fake products,” he explained.

Despite the erratic rainfall that characterised the 2013/2014 farming season, the timely availability of hybrid seed and herbicides to control weeds enabled farmers like Hanongo to plant on time and produce a maize bumper harvest.

“Many of us were able to use herbicides like Stellar Star and Round-up to control weeds, and we also planted genuine seed. That is the reason why many of us have produced a bumper harvest. No one here in Mikata is expected to go hungry this year,” he said proudly.

Hanongo explained that despite the hard work put in during the last farming season, he produced a meager 5 tons of

maize. His expected yield of 25 tons this 2013/2014 farming season was enough food to feed his six wives and 24 children, including 12 dependents and also meet their school requirements.

Bigones Hamusiya, a farmer in Nyeleti village and Kalomo District Agriculture Committee member representing Chilala block comprising seven camps, observed that the presence of the input companies within the community had reduced the dependency by farmers on subsidised inputs and hand-outs which were usually delivered late. Through the newly established sales points, farmers were able to purchase their inputs early in the season. These were sold through the 20ft containers managed by local stockists and supported by SEEDCO extension staff, and were conveniently positioned to service a large number of farmers with a variety of agro products and services.

“Previously most farmers were heavily dependent on free seed and fertiliser which was always delivered late. The

Laurent Hanongo receives a bag of harvested maize from his wife for storage.

To page 8


only option was to plant recycled seed. For example I still have seed and fertiliser delivered late in February/March 2014, so I couldn’t use it. This resulted in low yields during the last farming season. If it wasn’t for SEEDCO and Nyiombo, who came to Mikata and assisted us through the container, the situation would have been worse this year,” he pointed out.

According to Jericho Haan’gandu, an agent who sells agro products on behalf of SEEDCO and other companies at Mikata, farmers in the surrounding community had benefitted from a variety of agro products including veterinary drugs, herbicides, spare parts for farm equipment, and solar energy products sold through the containers.

“During the cold season like now cattle are affected by a lot of diseases. So a farmer can quickly get the right drugs and information from here to treat his sick animal. Secondly, during the rainy season when a farmer is in the field planting and the seed happens to run out, he can quickly rush here to buy the seed and continue with the work,” he pointed out.

42 year old Betty Mulomba, a widow living in Sikachapa village and less than

200 meters away from the Maboombo container, was expecting to harvest 25 tons of maize. She recognised Chief Chikanta’s role in ensuring women farmers like herself received the necessary support for them to grow.

“Our Chief has taken personal initiative to ensure that we are given opportunities to grow through farming. For those farmers that are able to quickly build upon these, they would quickly profit from the Chief’s innovative ideas,” she explained.

For Jericho Haan’gandu, a farmer in Mikata village and Ward Councillor for Chikanta ward A, the bumper harvest experienced by farmers in Chikanta could not have been possible without the assistance of Musika who facilitated the penetration of various companies in the area.

“Last year I harvested 35 tons but by the time I complete harvesting my field this farming season, I expect this figure to double. We just want to appreciate Musika, who brought us SEEDCO and other companies in the area,” he observed.

Haan’gandu appealed to Musika to find private sector partners to invest in the

livestock sector through the development of infrastructure like deep tanks, and also assist to find a secure and transparent market for the maize.

The successful implementation of the pilot project in Mikata, Bulyambeba, Maboombo, Kasukwe, and Chilala areas in Chikanta encouraged companies like SEEDCO to scale up the 20ft container intervention to other areas of Southern Province. The company developed strategic partnerships with firms supplying complimentary agro products including fertiliser, veterinary drugs, and herbicides through its sales outlets in order to offer farmers a ‘complete package’.

SEEDCO Sales Manager for Southern Region, Jasper Simanego, explained that the company’s efforts had contributed to the increased yields in Chikanta and had attracted the attention of the surrounding Chiefdoms.

“Our plan is to expand to other Chiefdoms on our own like Siachitema, Mbilili, and Chifinya so that more farmers benefit. On 29th May 2014, we will hand over a container in Chief Muchila which is also a very productive area. This is one way of assisting farmers so that they can be productive,” he said.

Betty Mulomba proudly shows off part of the maize harvested this farming season

Chikanta farmers celebrate a maize bumper harvestFrom page 7


Soil acidity is a major challenge faced by smallholder farmers in Zambia, who have had great difficulties in accessing and transporting the commonly used powdered lime because of

the large volumes required.

Compounding the problem of access is the inadequate knowledge and information among smallholders on its effective use coupled with the lack of product marketing by lime producers.

George Kapu an emergent farmer of Kanyenda area in Mpongwe district who has been farming for the last 15 years has not been spared from this challenge.

“I have not limed my fields in the last ten years, not because I don’t know about the benefits of lime but where to get it, how to get it, the high cost of transport and how it should be applied has always made me postpone the plans to lime my fields,” he explained.

According to Kapu, one ton of powdered lime costs K250.00 and transporting it costs an additional K250.00. This excludes application and incorporation costs raises the total cost to approximately K700.00 per hectare.

In an effort to change the dynamics of lime in the smallholder sector, Musika supported MRI Agro to undertake an awareness and demonstration campaign, offering ‘free trial’ packs of liquid lime to farmers buying 25 kilograms of seed with herbicides in targeted districts of Central, Northern, Muchinga and North Western Provinces.

Kapu was one such farmer who planted 2.5 hectares of beans and decided to experiment by just applying the lime to one hectare of beans and left the 1.5 without lime. Both plots were planted on the same day. After two months, Kapu noticed the marked differences in terms of the quality of the crop.

“When I received the lime I was not too sure of the performance, and I decided not to spray on one part of the field. But when I looked at my beans fields, I regretted having made that decision. The performance was simply excellent the crop stand itself tells the story,” he noted.

Kapu explained that the major cost was the lime at K240 for six litres, while the application cost was hidden in the spraying cost for the herbicide and it was not labour intensive. “I have no doubt this will be a good harvest,” said Kapu.

At harvest time, Kapu’s prediction came true. From the one hectare, where the liquid lime was applied, Kapu harvested 1.8 tons compared to one ton of beans harvested from the 1.5 hectare field that was not limed. In addition, the pod population per plant was good and the grains large and fully formed.

By Cholwe Kagoli – Operations Manager, Central Region

Kapu observed that additional demonstration plots needed to be developed to create awareness about the liquid lime so that a large number of smallholder farmers could benefit.

“I have been growing beans for a very long time but I have never seen it perform this way with bigger grains. We decided to sell the 1ton from the 1.5 hectares at K360 for a 50 Kilogram bag to raise money for our daughter’s school requirements. We are reserving the other 1.8 tons for a better market,” he said.

Liquid lime; the answer to soil acidity challenges among smallholders

George Kapu shows the difference in the performance of the crop which was planted the same day. The liquid lime applied in the one hectare field of beans (below) improved the crop stand and pod population.


Majority of smallholder farmers lack product knowledge necessary to enable them apply and use agricultural inputs effectively. The result is unnecessary increases

in costs to the farmer as they would not efficiently use the inputs, and more so, may not realise the anticipated increase in productivity that improved inputs bring.

As for the firms, this affects the farmer’s perception about the efficacy and effectiveness of a product and may result in reduced sales.

Through its experience of seeking solutions to challenges of access to inputs, information and productivity enhancing technologies, Musika develops business models adopted by its private sector partners and implemented in rural communities.

To bridge the information gap, Musika advocated for the use of an ‘information-first’ business approach by companies before farmers access their products and services. This business model ensured that farmers had sufficient information about a product before making the decision to buy and use it. A Musika supported ‘train the trainer’ programme was successful in stimulating a

By Edna Kasanda – Research Officer

strong demand for improved inputs amongst the smallholder farmers.

Baseline studies conducted by Musika revealed that the unavailability of reliable information and sufficient extension advice was a major constraint to the development of a well-functioning market system. In view of this, Musika supported a private sector led marketing innovation, which had at its core, a strategy to get product information out to the intended customers first, before making any sales.

The model resulted in a lot of benefits to the firm, as it helped to stimulate demand. Most of the farmers trained under this intervention expressed a strong desire to acquire the input. In addition, it ensured the correct application of inputs by the farmers. Research results indicated that over 90% of the farmers trained felt they had sufficient product information.

The success of the ‘information-first’ business approach, therefore, demonstrates that once the private sector invests time and resources in disseminating product information to its end users, high demand for the product is created.

An ‘information first’ business model at work

A farmer (Right) takes note of the information given by a company representative on the use of the different agro products on offer.

NEWSLETTER | JUNE 2014MUSIKA11

From the time His Royal Highness Chief Chikanta decided to embrace Musika’s market development approach,

there has been increasing interest from the private sector to conduct product promotion activities and establish their presence in his Chiefdom.

His commitment to ensure that his over 40,000 subjects benefitted from firms willing to invest in sustainable and commercial relationships with smallholders, has seen him take the lead in organising activities at community level that have exposed the private sector to potential business opportunities in the area.

Chief Chikanta’s Chiefdom is located about 105 kilometers north of Kalomo town in the Southern Province, and is home to a predominantly traditional farming community. The rich arable land which is approximately 50 kilometers wide and 80 kilometers long contributes to the highest maize crop yields in the country every year. But according to Chief Chikanta, this success had come at a great cost.

“The past years we have been incurring a lot of costs in terms of acquiring agricultural inputs because all the inputs

Chief Chikanta; creating an enabling environment for private sector investment

were coming either from Choma town or Kalomo town, either way the distance is about 105 kilometers and our farmers have been paying transport for themselves and the commodities that they bring, so we have been thinking - how we can cut down on these costs?” he reflected.

The response came when on 22nd February 2013 when Musika organised a forum in Choma for stakeholders in the agriculture sector, including private companies and traditional leaders, to discuss various issues affecting smallholder farmers in the province.

“During the deliberations, I made a presentation outlining all the problems being faced by farmers to the stakeholders. It was from there that the idea of holding market days where we call these companies to come and speak to the farmers was born. We quickly picked the idea in Chikanta and we held our first market day on 15th May 2013, in Bulyambeba and about 22 companies attended,” he noted.

Exactly one year after Chief Chikanta started engaging with the different companies, his Chiefdom has witnessed the establishment of business operations by different input companies that have

realised the value of bringing products and services closer to the community. These include SEEDCO, MRI Syngenta, BASF, and ATS agro chemicals.

The presence of the companies in the community has boosted the production levels of the farmers in Chikanta Chiefdom during the 2013/ 2014 farming season. Additional benefits include technology transfer such as conservation agriculture and the use of herbicides to increase their productivity.

“Our experience is a very good experience, and I want to urge all the agro suppliers and any other organisation supplying agricultural inputs to take up this approach, to deliver inputs to the farmers’ doorsteps, and to deliver them in time and at exactly the same price as the ones sold in Kalomo or Choma town,” emphasised Chief Chikanta.

Chief Chikanta’s ability to provide a conducive environment for private companies to operate in his area has drawn the attention of chiefs in the surrounding communities. He is eager to share his experience with those that have shown willingness to take farming as a business.

“It is not only in Chikanta where we intend to bring these inputs. On 29th May, we will be launching a SEEDCO container in Chief Muchila’s area which is also a highly productive area like ours. In other chiefdoms where these companies did not deliver inputs, the bumper harvest is not there. So we are testimony that when inputs are delivered in time, farmers prepare in time and the result is the bumper harvest that we have seen this season,” he added.

However, as has been the experience in Chikanta, the benefits of private sector investment included support to local community projects. The support given by companies enabled them to localise their corporate social responsibility activities to impact a larger number of the population.

“SEEDCO last year bought six iron sheets

His Royal Highness Chief Chikanta (Right) during the handover of the first SEEDCO container in Bulyambeba area

To page12


for Chipelele community school, 25 pockets of cement for Chenza community school and 12 iron sheets for Gombe community school. We also received a donation of 100 chairs for our community hall from BASF, an agro chemical supplier. This is the added advantage of having private companies present in our

Chief Chikanta; creating an enabling environment for private sector investmentFrom page 11

From the time Shirley Muwaika started farming in 2008, she had always grown maize at her farm located in the Southern part of Chinyunyu in Ndubulula area of Chongwe district.

Married with six children, Muwaika found it difficult to grow other crops like legumes due to lack of a ready market.

“Once I tried to grow groundnuts but they went to waste because there was nowhere to sell. I was promised by one buyer but when I realised that they had failed to keep their promise, I ended up selling part of the groundnuts at a giveaway price,” she explained. Out of frustration, Muwaika settled on growing maize, and because of the crop was not rotated with a legume crop, the result was low crop yields.

But today, Muwaika and her family are telling a different story. With the introduction of pigeon peas in 2012/13 season by Export Trading Group (ETG), with the support of Musika, her family decided to try growing the new crop. At first they feared that they would not manage the crop, and were uncertain that ETG would buy the crop even after Muwaika had signed a contract with the company.

Pigeon Peas Outgrower scheme enables female farmer to diversify

These fears were removed when ETG employed an extension field officer who conducted the management training. Muwaika decided to plant 1.5 hectares. With little effort made in terms of time and fertiliser, she managed to produce 0.4 tons and sold it to ETG at K800. The money realised was invested into buying vet drugs for her animals and spent the rest on groceries for her family.

During the 2013/2014 farming season Muwaika neither weeded nor sprayed the crop but surprisingly the crop performed better than it did in the first season. She expected to harvest above 0.5 tons of pigeon peas. She expects that the pigeon peas will provide additional income especially that the only cost encurred was labour during harvesting. Growing legumes like pigeon peas and groundnuts fields would also improve the soils’ fertility and help reduce the quantity of fertiliser applied in her maize field.

“I am now fully convinced that the crop is beneficial. I plan to extend my field of pigeon peas and groundnuts next season since ETG has also launched the groundnuts out grower scheme,” she added.

communities,” Chief Chikanta pointed out.

However, Chief Chikanta’s greatest obstacle to increasing the number of private sector companies doing business in the remote areas was the poor infrastructure. However, he was optimistic

that government would do their part in developing the road and communications infrastructure.

“I would like to urge government to improve the feeder roads especially in areas where agriculture is very prominent. While these companies can come here, there are still many complaints about the road infrastructure. The companies would like to come as far as possible but the roads are very bad. Communication should also improve so that companies are able to communicate easily,” he advised.

Over the next few years, Chief Chikanta plans to build upon the success of Musika’s intervention and introduce value-addition services with the support of private sector partners.

“We want to go beyond this stage of accessing inputs and producing bumper harvests to value addition as the second phase of development. We urge Musika that as we go into the second phase of value addition, they find us partners who can bring us processing equipment. That is the second stage we’re moving to if we are to achieve proper food security,” he said.

Chief Chikanta and his subjects celebrate the launch of a sales point for MRI Syngenta in his chiefdom.

By Mainecy Hampeyo – Business Advisor, Chongwe district


Cleopatra Mwaanga is a farmer and Manager of the NiKo Milk Collection Centre in Sigwidi village of Namwala district in Southern Province.

The collection centre opened its doors to the community in February 2014 and currently services 84 smallholder dairy farmers. On an average day the centre receives up to 1,200 litres of milk and on a productive day the centre collects 1,500 litres of milk which is the total capacity of the tank.

Cleopatra is one of the farmers benefitting from the newly opened collection centre and received an intensive milk handling training facilitated by Parmalat which included quality control and milk testing.

“Before this collection centre was opened we would sell milk at the market for little to nothing and also from our homes to fellow farmers.

This initiative has been received well by the community as farmers now have a ready monthly source of income as they are paid a lump sum by Parmalat which has begun to improve their livelihoods,” she explained.

Chairman of Kabulamwanda Dairy cooperative, Danson Siwala explained that the cooperative was now fully functional in contrast to the seasonal crop cooperatives that are active at planting and marketing.

“The dairy cooperative runs throughout the year with a continuous flow of income and this allows an opportunity to investment in other income generating activities around both the livestock and crops sectors,” he explained.

In addition to providing a reliable and secure market for milk, the extension services provided by Parmalat have brought with them increased demand for products and services. As Parmalat disseminated tips on dairy production, the demand for products and services increased through the cooperative. Through Musika’s intervention, service providers such as Ultravetis, Agriserve and Vet 24 intend to fill the gap by providing complementary services to the farmers.

According to Siwala, the dairy intervention had brought about an increase in household incomes which benefitted farmers in various ways including their ability to pay for their children’s school needs.

“For example when I had a conversation with the head teacher of Kabulamwanda School, the issue of late payments and failure to pay is a thing of the past as fees are being paid on time with little or no follow ups for late payments,” he observed.

The improved income levels have enabled smallholder dairy producers in Namwala, Chitongo, Kabulamwanda and Niko, where Parmalat has established four MCCs with the support of Musika, to invest in improving the productivity of their livestock.

Milk collection centers improve market access for smallholders

Cleopatra Mwaanga, a farmer and Manager at Niko Milk Collection Center received an intensive milk handling training facilitated by Parmalat.

By Dean Lihonde – Sector Coordinator, Livestock and Natasha Mhende – Data Management Officer


Our focus areas

AGRICULTURAL INPUT MARKETS

Musika works with retail firms in the seed, fertiliser and agrochemical industries to develop effective distribution models that are relevant to the technological, information and production needs of the smallholder.

Musika supports innovation by companies placing extension and market development staff into under-served markets in very isolated areas.

AGRICULTURAL OUTPUT MARKETS

Musika promotes open and transparent transactions between crop and livestock buyers and smallholder suppliers that encourage farmers to invest in their production. Within the cropping sector it supports the establishment of out-grower schemes, assured markets and embedded extension, and works with national and international companies to facilitate the development of a commodities exchange with the ability to offer futures contracts to the Zambian market.

Within the livestock sector, Musika is cost-sharing the development of infrastructure that supports an improved market such as auction facilities, livestock service centres for cattle and small livestock and dairy collection and processing facilities.

AGRICULTURAL FINANCE MARKETS

Musika facilitates the development of and access to financial products and services that are appropriate to the smallholder agricultural market and that have the ability to strengthen its core interventions.

Musika’s key areas of focus are assisting financial institutions develop equipment leasing products for the lower end of the market, assisting in the development of cashless electronic payment solutions for farmers and agribusinesses, stimulating the development of credit products that have non-traditional forms of security such as warehouse receipt financing and value chain financing. Musika also supports insurance companies to introduce simple and low cost risk mitigation products into the rural market.

AGRICULTURAL SERVICE MARKETS

Musika supports the development of commercial services that are key to increasing smallholder productivity. Within the livestock sector, Musika assists private veterinary companies to offer the smallholder market preventative health care and genetic improvement models.

Within the cropping sector, Musika assists agricultural equipment companies to penetrate the smallholder market and drive the development of the mechanised contracting industry, whereby smallholder farmers unable to purchase their own machinery can access productivity enhancing technologies such as mechanised land preparation, spraying and harvesting on a fee-for-service basis from local entrepreneurs.

ENVIRONMENTALLY BENEFICIAL MARKETS

Musika supports companies offering rural communities products, services and market opportunities that have an environmentally beneficial impact such as renewable energy solutions, rural carbon projects with pro-poor benefits, agroforestry and sustainable biomass production.

Making Agricultural Markets Work for Zambia+260 211 253 989, +260 211 250 355, (Fax) +260 211 255 5026, Tukuluho Road, Long Acres, Post Net No. 481, Private Bag E891

Lusaka, Zambia

www.musika.org.zm

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