Lack of access to farm inputs, supplies and equipment is a key limiting factor for many farmers. Often, even when rural farm stores (often called agrodealers) are available regionally, they are so far from individual farms that transportation becomes prohibitively expensive and even impossible in some very remote locations.

Building a strong network of agrodealers ultimately strengthens the overall agricultural sector of a country as these key enterprises become centers for input supply, equipment purchase and rental and even training. Agrodealers can also become a center for agricultural knowledge and best practices for the entire community.

Training and financing are key elements in the success of the Agrodealer Model. For agrodealers to become thriving enterprises, owners and managers often need business training and technical assistance. CNFA certifies agrodealers after they have completed a rigorous six-module training program covering working capital, inventory control, sales and marketing, recordkeeping, costing and pricing and managing business relationships. Agrodealers also receive technical assistance in inputs and equipment. Once certified, they can continue to take more advanced courses.

Because agrodealers are often seen as a financially risky by traditional financial services providers, CNFA helps certified agrodealers access working capital and trade credit through credit guarantees. In Africa, for instance, CNFA backs commercial credit with a 50% guarantee, and by leveraging private sector investments, CNFA enhances agrodealers’ access to financing. In Kenya and Malawi, over $1.3 million in credit has been leveraged through guarantee facilities since 2007.

In Europe and Africa, CNFA has used this model to greatly improve rural economies. In Moldova, CNFA opened the first 10 farm stores, which grew into a network that has become one of Moldova’s largest suppliers of agricultural inputs and services, with over 80 stores serving more than 200,000 clients. Total turnover was more than $12 million in 2007.