Market Integration of Small Holder Farmers through CA

in Zimbabwe

Michael Jenrich, FAO ZW

Summary Smallholder farming in Africa is largely subsistence

based Little or no market integration, few farmers generate

income (support for food security..) low yields (food insecurity) poverty and migration low investments (e. g. mechanization, irrigation, improved

inputs and credits) Many small holders’ lands holdings could be sufficient

to generate income, if utilized efficiently farmers are not able to increase production and

productivity lack of access to markets, funding and adequate technical

support Involvement of private sector would be key for

change (input, output, capital), but does require productivity increases as entry...

Background

Background

Low productivity, farmers don’t make money Rural families do not see farming as a way to

generate income Governments support for agriculture, specially

small holders is low Private sector involvement is very limited,

small holder sector is “problematic” (small areas, low yields, poor infrastructure, farmers not organized, insecure tenure, no credit, poor track record...)

Result: →even less money and migration (poor old weak and uneducated stay behind)

Limiting factors Funds, credits, collateral Low yields, poor farming practice Inputs Markets Farmers’ organizational set up Bad track record Infrastructure Tenure

Interventions

Improve yield levels swiftly and sustainably and without major capital investments.

Integrate farmers into input and output markets

Support farmers to organize Complement with extension and

training Initial funding and credit systems

Support Activities

Improved land and crop management (CA+)

Input and Output Support (Contract Growing, including initial funding)

Community and Farmer Capacity Building

Part funding

Improved land and crop management (CA +) CA is central, provides quick & reliable

way to increase and stabilize yields without capital investments

Farmers are achieving higher production levels and production security, which is attracting private sector

Improved productivity opens opportunities to participate in markets and generating on farm incomes

Improved Agronomy, builds confidence

CA, (backed by strong extension, IPM, etc). Precise & Timely (planting holes), increasing yield

potentials significantly Inputs (lime, fertilizer, manure) used efficiently

(concentrate in planting basins) Reducing costs Farmers can do the land preparation in the dry

(winter, off season) Land preparation by hand maybe seen as a step backwards, but it gives resource poor farmers an

opportunity to do land preparation timely and precise and establish crops well...

Timely and precise operations through CA is giving private sector confidence to invest

Complementing activities Initial input support, based on market

agreement Capacity building, in cooperation with

farmers unions Monitoring & arbitration (if needed) Credits (inputs or bank guarantee) for

private sector Weather insurance CA machinery development and

contracting Plant protection and fertilizer contractors

Ongoing

Link private sector to farmers (this season 20.000 farmers, Ø 1ha each)

Support –and supervise- contract growing agreements

Integrate relevant stake holders (farmers, private sector, farmers unions, government and donors)

Lobby for role out...... (policy & private sector)

Crops Maize, Sorghum Paprika, Chilly Seed (Cowpea,

Sorghum, Groundnuts, OPV maize, Beans)

Cotton Tobacco Plantation (Tea, Coffee,

Bananas) Soya, Cowpea Livestock

Impacts

Currently 20.000 farmers (12 companies > 20.000ha, requests for 50.000 farmers)

Significant impact on HH and economy

Funds goes to and circulates in rural areas

Indirect income (weeding at $ 5/day in plantation areas)

Potential for huge scale up in region

Lessons Some small holders can and will

commercialize if supported appropriately (change of agronomy & mind set)

Many small holders can generate sufficient income from their farms

Private sector could facilitate the utilization of the vast potential of small holder agriculture

Farmers, private sector and economy benefit

Inputs, credits, tenure security, extension systems need to be improved parallel

Conclusion Through CA small holder farmers can

improve productivity, link to private sector and commercialize swiftly and without major capital investment

Given the vast potential of South Eastern Africa, CA in combination with market linkages can unlock huge farming potentials in the region

CA could be part of the key to increase very low yields and productivity in the region...