IFDC

Accelerating Agriculture in Africa

Smallholder farmer as business opportunity

Agribusiness Forum 2010

October 3-6, 2010

Kampala, Uganda

André de Jager

Program Leader Agribusiness Program

IFDC - North and West Africa Division

IFDC

Smallholder farming as a business

Organized

Access output and input markets

and information

Form of rural finance exists and

affordable

Policies not hampering doing

business

IFDC

From challenges to changes

Not all smallholder farmers

want to / will be entrepreneurs

Public-private partnerships and

investments required

Facilitation before acceleration

Opportunities: Inputs, Services,

Sourcing

IFDC

Chances for business in Africa Agriculture

Small scale agribusiness clusters

Agro-industry clusters for local, regional and

global markets

Agro-input dealers as change agents

Market information

Technical innovations

IFDC

Small Scale Agribusiness Clusters

Cluster = all actors needed to

build profitable value chains

Producers and their

organizations

Input suppliers

Finance suppliers

Processors – warehousing –

value adding

Traders – buyers – market-parties

Business Development Services

Capacity building , technical advice

IFDC

Low cost – high impact

Investment per household: € 25

600,000 farmers in 7 countries

farming as a business

Yield increase of 80%

Household income increase 50%

> 5000 SME’s commercial service

providers

IFDC

External evaluation

The approach and intervention strategy have the

potential to fundamentally alter modalities of

international development collaboration ….. It can

become a flagship for Dutch development cooperation

because of its innovative entrepreneurial approach

towards sustainable agricultural growth and rural poverty

reduction.

IFDC

Agro Input Dealer Support

To increase the availability, accessibility and

affordability of agro inputs

Components:

Building skills through training

Strengthen agro-input

association

Facilitate access to credit

Demonstrations

IFDC

Mapping agro-dealers•Identified and mapped over

3,000 agro-input dealer sales

points

•The project has classified the

country into three categories;

low, medium and high density

This will guide the project to

work with dealers on

establishing new sales outlets

to serve the needs of farmers

better.

IFDC

Mobile phone applications

Send mass SMS text message to agro-input dealers about availability of

improved certified seeds

IFDC

Market Information

Two examples:

Africa fertilizer markets

Regional Agricultural Input Marketing System

IFDC

Africa Fertilizer Market

A new global forum

to disseminate and

exchange information

on fertilizers, soil fertility

and related agricultural

issues in Africa.

IFDC

ProductionFAO Nutrients & IFA Products

Imports & ExportFAO Nutrients & IFA Products

Production CapacityRaw, compounds, blends

Use per CropAdd 5 new countries

World PricesMonthly prices for 5-10 key fertilizers

National Retail PricesMonthly prices from 10-20 towns / country

Fertilizer Statistics

IFDC

Market Information

Africa Fertilizer Yellow Pages

Publications & Studies

Maps

Fertilizer Market News

Major Events

Links and Partners

Blogs & Forums

IFDC

AMITSA in brief With EAC & COMESA

8 countries in 2010, 11 in 2011

2,5 staff in Nairobi

DGIS (SAADA) + H.F. (STAR)

135 agro dealers trained in

65 major towns

First reports in 04/2010

Support to / supported by

Agro dealers devpt projects

Farmers organizations

Private sector

IFDC

1,25

1,8

1,31,45

1,781,81

2,6

1,75

1,17

1,96

1,55

0,52

0,930,89

2,6

2

1,07

1,33

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3

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BEAN MAIZE - HYBRID MAIZE - OPV RICE

Legume Cereal

Seed average retail price (US$/kg)

6,5

6 11

,22

9,7

7

6,1

7

6,6

6 9,4

8

10

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8,7

5 13,3

5

10,7

1

7,2

9,8

3

11,9

9

14,7

8

6,8

6

5,4

2

12,3

5

5,8

9

23,8

9

8,2

8

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5

10

15

20

25

30

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Tanzania

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1 kg 1 liter 1 liter

Mancozeb (80 %) Glyphosate (360 G/l Or 480 G/l Ipa)

Cypermethrin (50 G/l)

Fungicide Herbicide Insecticide

CPP average retail price (US$/kg or liter)

Monthly prices agro inputs in Eastern Africa

Visit www.amitsa.org for more reports and information

IFDC

Conclusion / Discussion

Business opportunities for small holder agro

business development (base-of-the-pyramid)

exist how to accelerate the process?

Crucial elements to be in place:

Last-mile delivery inputs and services

Variety of financial services available

Transparency and market information