Tanzania Agrodealer Strengthening Program

Overview:

Launched in 2007, the Tanzania Agro-dealer Strengthening Program (TASP), funded by the Alliance for a Green Revolution in Africa, has been successful in building and supporting a vibrant agro-dealer network capable of serving smallholder farmer demands for improved inputs, services, and marketing. Like CNFA’s other agro-dealer development programs, TASP focused on business and technical training as well as capacity building. Programming also focused on facilitating access to financial services, output marketing, processing, value adding services, and policy advocacy through association development.

TASP also designed and supported the Tanzanian government’s targeted subsidy program to link agro-dealers to the local seed industry and has been scaled up to foster the development of a nationwide rural market network. In 2010, TASP expanded into new districts, allowing CNFA to improve productivity and incomes for additional farm households in remote and underserved areas. Since 2007, TASP has certified over 2,600 agro-dealers, who are providing products and services to over 1.5 million smallholder farmers and improving the lives of nearly 8 million people.

Program Approach:

• Built agro-dealer capacity to better serve farmers through a proven six-part technical training covering: managing working capital, managing stocks, selling and marketing, basic record keeping, costing and pricing, and managing business relationships;
• Facilitated demand creation by establishing demonstration plots and farmer field days showcasing new agricultural inputs;
• Promoted improved linkage to financial services for agro-dealers through forums and clinics focusing on licensing, completion of a business plan, and access to capital.

Seed Industry & Smart Input Subsidy Distribution: At the program’s outset, CNFA focused on the five Southern Highlands districts targeted by the Government of Tanzania (GoT) for its smart, targeted subsidy program (Fast Track Districts) and five districts in the Arusha, Meru, and Kilimanjaro regions in Northern Tanzania. In Year 2, TASP expanded into the seven other districts in Manyara and Morogoro regions. Around Arusha, CNFA integrated agro-dealer development efforts with initiatives to improve Tanzania’s local seed industry, including foundation seed enterprises and local seed companies. Early activities focused on the design of a smart input subsidy program for sustainably implementing government subsidies to targeted communities and on developing the network of agro-dealers necessary to implement this subsidy program.

Association Development: CNFA supported seven district associations that were fully registered and ten that were in nascent stages of development. One of the associations supported by CNFA was the Songea Agro-dealer Association (SADA). SADA offers a powerful example of the benefits that a well-run association can accrue for its members and the influence that can be exerted. For example:

• SADA successfully advocated against the practice of Regional and District officials dictating prices at which inputs could be sold;
• SADA also proposed the “master input subsidy” concept that CNFA later brought to the MAFC, which would be issued by district officials on presentation of numerous input subsidies by the agro-dealer;
• Where individual group members (particularly startup agro-dealers) experienced difficulty in securing input supply credit, SADA managed to successfully negotiate for credit as an association;
• SADA leased an office in Songea Town and hired a coordinator to administer their activities.

Strengthening the Agro-dealer Network: TASP encouraged the establishment of new agro-dealerships in remote, underserved areas through matching grants, a credit guarantee facility, and demand creation activity that gave the farmer an opportunity to physically witness the benefits of improved agronomic practices and inputs. In addition, technical trainings to strengthen agro-dealer capacity, agro-dealer association development, and linking agro-dealers to financial institutions were key parts of the approach.

The Business Management Training (BMT) raised agro-dealers’ business standards of management and acumen, allowing the MAFC to exclusively link the handling of the subsidy inputs to agro-dealers’ successful completion of BMT. CNFA trained an additional 849 agro-dealers in 24 districts beyond the 17 in the original TASP scope to pave the way for the National Agricultural Inputs Voucher Scheme.

Overview:

The Agrodealer Strengthening Program, funded by the government of Sierra Leone through the Global Agricultural Food and Security Program, aimed to promote the transformation of the Sierra Leone’s fragmented and informal input distribution system into a more efficient, commercially-viable input supply infrastructure operated by the private sector. As part of an implementing consortium with the International Fund for Agricultural Development (IFAD), CNFA developed an agrodealer network to provide a one-stop-shop for smallholder farmers to access improved inputs, services and output marketing. The program was implemented in the District of Bombali, and enhanced agricultural productivity, increased rural incomes and improved household food security.

Program Approach:

• Develop a private network of agrodealers by establishing one-stop-shops;
• Provide business management and technical training to agrodealers;
• Build and strengthen private sector associations that supply agricultural inputs;
• Improve access to finance through a credit guarantee facility and matching grants program;
• Foster a commercialization enabling environment by advocating for agrodealer involvement in national agricultural sector strategies and implementations.

Overview:

Partnering with the Alliance for a Green Revolution in Africa (AGRA), CNFA implemented the three-year Agro-dealer Strengthening Program for Mali (ASP-M) to increase rural incomes and reduce poverty by transforming Mali’s underdeveloped input distribution practices into a more efficient, commercially viable input supply system. ASP-M strengthened Malian agro-dealers by providing training in business management and productive farming methods and increased farmer access to agro-dealers in remote areas, ultimately raising rural incomes and increasing household productivity. In order to transform Mali’s agro-dealer network sustainably, our team implemented a methodical four-step approach.

Program Approach:

• Built Agro-dealer Capacity to Serve Farmers: ASP-M developed and implemented activities including business management training, training in product knowledge, and safe use of chemicals and fertilizers. The program also increased market demand for improved inputs through demonstration plots, exhibitions, and farmer field days.
• Improved Rural Access to Finance: To complement stronger business and technical expertise of program trainees, CNFA worked to improve agro-dealers’ access to finance, creating guarantee facilities to stimulate access to trade credit and capital, developing agricultural lending training for commercial banks and microfinance institutions, building targeted agricultural lending products, and introducing competitive matching grants to spur private sector investment.
• Connected Farmers to Markets: With better financing in place, the program focused on smallholder farmer access to larger markets for distribution of their products. CNFA worked with agro-dealers to develop and deliver basic output marketing training in order to increase farmer awareness of market opportunities and to help link them to existing market channels.
• Advanced Agricultural Policy Advocacy: The last component of ASP-M focused on improving channels for a sustainable public-private policy dialogue. CNFA maintained a leadership role in the policy arena, shaping Malian agricultural policy to promote the interests of private sector growth and of the rural smallholder. CNFA also supported the growth of the Agro-dealers National Union in Mali (UNRIA-Mali), which received an endorsement from former United Nations Secretary General Kofi Annan after he visited the project in August 2010.

To ensure the successful operation of UNRIA, CNFA provided training on organizational management, member services, networking, and advocacy capacity building. This last component of ASP-M ensured that the program would be self-sustaining and bring increased business for agro-dealers and higher incomes for smallholder farmers.

Overview:

The three-year Malawi Agro-dealer Strengthening Program (MASP) improved the input supply and output marketing distribution channels available to smallholder farmers in the underserved, remote areas of Malawi by developing a commercially viable network of agro-dealers. Prior to MASP interventions, these small farm stores were located mainly in urban areas and were therefore inaccessible for many farmers. In partnership with the Alliance for a Green Revolution in Africa (AGRA), CNFA provided targeted training in business management and productive farming methods and increased smallholder access to agro-dealers in remote areas, thereby raising rural incomes and increasing household productivity.

Program Approach:

• Conducted a detailed survey of the existing agro-dealer network to identify underserved areas where new startups could be created;
• Worked with input suppliers to develop and deliver technical training to agro-dealers and promote the use of improved seed;
• Improved rural access to finance, which is difficult to obtain in remote areas due to the high cost of agricultural financing and high perceived risk by lending institutions;
• Facilitated smallholder farmer access to larger markets for sale of their improved products;
• Shaped agricultural policy to promote the interests of private sector growth.
• Business Management Training:CNFA and MASP worked through commercial trainers to identify and train rural retailers in a six-module business management training program that culminated in agro-dealer certification. The business management training included sessions on: managing working capital, managing stocks, costing and pricing, selling and marketing, record keeping, and managing business relationships. MASP succeeded in training and certifying over 1,500 agro-dealers in Malawi;

• Credit and Financial Services:After certifying agro-dealers, the program provided access to working capital and trade credit by linking them with input suppliers and microfinance institutions. CNFA leveraged private sector investments and backed commercial credit with a 50% credit guarantee. Almost 300 agro-dealers benefited from MASP’s guarantee component. In addition to improving smallholder access to key value chains and trade in rural markets, CNFA supported capacity building programs and the development of agricultural-specific lending products for financial institutions in Malawi;
• Technical Training:The program also helped input suppliers to develop and deliver technical training to agro-dealers in product knowledge, handling and safe use of pesticides, herbicides and fertilizers, and use of improved seed. Training was complemented by increased smallholder farmer awareness of, and demand for, improved inputs through demonstration plots and farmer field days. CNFA worked with stakeholders, including the Pesticides Control Board and other groups, to increase their institutional capacity to deliver technical knowledge to smallholder farmers;
• Agricultural Policy Reform:CNFA worked to improve agricultural policy by increasing the role of the private sector in policy advocacy, decreasing the government’s role in the inputs market and minimizing market distorting subsidies and government interventions. In Malawi, CNFA helped to create the Agriculture Inputs Traders Association (AITA) and worked with AITA to develop a white paper on fertilizer subsidies that was presented to the government. This submission led to a change from direct government distribution of fertilizer to a farmer-held voucher-based system;
• Output Marketing:CNFA strengthened the linkage between input and output distribution channels and used the rural retailer as a link back to cash markets for their farmer customers. In Malawi, agro-dealers frequently served as a point of market information, traded in outputs as well as inputs, and often engaged in primary processing, storage, or handling. To foster and strengthen capacity to fill this varied role, MASP provided agro-dealers with small matching grants to improve storage facilities, put in small processing facilities, and invest more deeply in equipment for farmer outputs. CNFA trained 217 agro-dealers in output marketing;
• Animal Health and Veterinary Training:Many of the agro-dealers surveyed provided veterinary supplies and animal healthcare products for rural farmers. As such, technical experts provided training on how to approach veterinary service provision, stock veterinary supplies, feed supplements, and link with wholesale suppliers;
• Association Development:Association development efforts resulted in a sustainable forum for advocacy on behalf of small business agro-dealers throughout Malawi. Through MASP, CNFA strengthened associations through trainings on organizational management, member services, networking, advocacy, and capacity building. Overall, MASP supported nine agricultural associations and 29 agro-dealer associations.

Overview:

New Opportunities in Agriculture (NOA), a five-year, $2 million program funded by USAID under the RAISE PLUS IQC, boosted agricultural production by capitalizing on the strengths of traditional crops, introducing new high-value crops into market, involving women, youth and minorities in the production process and advancing and expanding value chains to draw in infrastructure investment and strengthen export capacity. From 2011 to 2015, NOA put tools in the hands of Kosovar farmers, supporting them in all aspects of production, marketing and entrepreneurial growth by providing vital training and opening market linkages to encourage and facilitate trade.  Working under contract with Tetra Tech, CNFA provided short-term technical expertise in value chain development through its USAID-funded JOhn Ogonowski and Doug Bereuter Farmer-to-Farmer Program and extensive network of agribusiness consultants.

Approach:

From 2011 to 2015, NOA promoted value addition in targeted sectors, introduced new crops, including asparagus and saffron, and developed various crop-based producer groups to provide stronger linkages between producers and buyers throughout the region. It also expanded access to credit training and technical assistance for loan borrowers and officers and provided mentoring, training, workshops and technical assistance for private-sector agribusinesses, building the capacity of Kosovo’s private sector agribusinesses.

1. Increased Affordable and Accessible Credit: NOA enables producers and other value chain actors to access capital or credit through a variety of mechanisms, such as loans and grants. A total of 142 small or medium enterprises received access to credit and grants issues for value chain operators and helped procure a variety of new agricultural equipment, allowing firms to increase productivity and reach new markets.
2. Linked Farmers to Markets: NOA exposed Kosovar farmers and processors to new markets by organizing study tours and promotional events, as well as facilitating relationships between producers and buyers. These activities exposed producers to new technologies for crop production, new varieties to enhance yields and quality and new, higher-priced crops. In addition, these activities increased awareness amongst potential buyers of new opportunities arising from raw materials produced domestically. The program saw over $3.3 million in sales as a direct result of linkages created between farmers, processors and traders and a total of 310 delivery contracts were issued for targeted crops.
3. Diversified and Increased Agricultural Products: NOA also expanded production by training farmers on the use of new technologies and value0adding processing, including a new processing line for bagged lettuce — the first of its kind in Kosovo. A total of 25 new technologies and management practices were introduced through the program and 1,200 farmers and processors adopted these new technologies and management practices. CNFA designed a toolbox of interventions to encourage table grape farmers to use growing techniques specific to table grapes, which included instruction on best cultural practices, improved canopy management and integrated the modified “T” trellising. This allowed for an extended growing season across all targeted crops, enabling farmers to produce earlier and earn higher prices.
4. Improved Food Quality and Safety: NOA worked to improve food quality and safety to ensure Kosovar producers and processors abided by existing food safety regulations issued by government authorities. By working with firms to become certified and meet international standards, NOA built consumer confidence in local products in areas including water sanitation, the establishment of a Listeria exclusion and testing program, pre-harvest inspection procedures, hygiene-enhancing supplies and equipment and the development of a recall plan. Food quality and safety measures implemented through NOA helped to improve product formulations, enrich human resources and further the development of Kosovo’s food industry.

Overview:

The two-year, $471,675 Business Connections Program (2011-2013), funded by USAID and the Government of Kazakhstan (GOKZ),  built the capacity and competitiveness of Kazakhstani small-and-medium-sized enterprises (SMEs) through modernization and expansion initiatives. The program was aligned with the GOKZ’s broader national development plan to diversify the economy through the development of Kazakhstani SMEs. The Business Connections Program also supported the objectives of the Ministry of Economic Development and Trade and the JSC Entrepreneurship Fund (DAMU). CNFA helped identify expert agriculture trainers, plans and volunteer experts and helped create agriculture-related training materials to meet the program’s objectives.

Approach:

1. Provided Business Management Trainings: Identified qualified U.S. agricultural business experts to develop training curriculums and deliver business management courses to Kazakhstani participants.
2. Organized Study Tours: Led selection process of study tour participants chosen to represent Kazakhstani companies in targets industry sectors and facilitated three-week-long study tours which included industry-specific training, business meetings with U.S. companies, roundtable seminars and trade shows.
3. Strengthened Access to Information and Learning: Redesigned the DAMU business portal to encourage information sharing and distance learning among participants.

Overview:

The five-year, $7.4 million John Ogonowski and Doug Bereuter Farmer-to-Farmer program in East Africa, funded through USAID, focused on select agricultural value chains, identifying needs at every level from production to marketing.

From 2008 to 2013, CNFA sent over 320 volunteers to Kenya, Tanzania and Uganda, and a limited number of volunteers to Rwanda. The hard work put forth by volunteers and field staff made the program a success.

Approach:

CNFA relied heavily on the expertise of U.S. volunteers from diverse backgrounds to respond to the needs of host country farmers and organizations. Our volunteers possessed deep expertise in their fields and represented all ages and industries, including farmers, bankers, professors, civil servants and active and retired business people.

The assignments, ranging from two to four-week-long projects and varied in scope, trained associated service providers and agribusinesses in topics from financial management to marketing, cooperative development, agricultural production, post-harvest and processing technologies, international quality standards and rural finance.

Overview:

CNFA implemented the two-year (2011-2013), $3.2 million Zaytun Project to strengthen strategic components of the table olive and olive oil value chains in the regions of Nubaria and Matrouh through the delivery of targeted technical assistance to small and medium Egyptian olive processors and training with complimentary grants-matching assistance to smallholder olive farmers.

Working with local partners like the Egyptian Banking Institute (EBI) and the Egyptian Olive Council, the Zaytun Project addressed short-term problems that olive producers and processors face, while simultaneously laying the groundwork for long-term sustainable development. In collaboration with these partners, CNFA designed a strong, value-chain-based program that strengthened production and post-harvest practices of olive farmers, delivered technical assistance and training to small and medium-sized table olive oil and olive oil processors and facilitated business linkages between supported olive growers’ associations and processors. Through various policy initiatives, the Zaytun Project increased expansion into higher-value export markets and improved the reputation and image of the Egyptian olive industry.

The Zaytun Project brought Egyptian olive oil to the international stage. In collaboration with the Chamber of Food Industry, the Project developed an olive industry website to increase the exposure of the Egyptian olive sector. The success of project-sponsored processors at an international olive oil competition marked an important step in establishing the reputation of Egyptian olive oil internationally, as well as introducing a new identity of Egyptian olive oil on the international market. After this success in 2013, it is likely new categories will be created for North African olive oils in next year’s competition.

Approach:

1. Strengthened Producers: The Zaytun Project strengthened smallholder olive producers through assistance in production practices, post-harvest handling and organized producers into viable growers associations. The project orchestrates intensive training, technical assistance, association development and study tour activities to educate olive producers on best practice techniques. The core training activity was a Farm Field School (FFS) training program, where a tired design allowed the lessons of a few technical specialists to reach thousands of police farmers. The Project compiled a manual in Arabic and English to ensure these experts could carry lessons into future training programs. Additionally, the Zaytun Project awarded four one-to-one grants to farmers’ associations that resulted in the creation and upgrade of several micro-processing units for pickling olives, as well as the funding for two composting projects. Finally, the Zaytun Project facilitated a study tour in Italy to further strengthen farm management and collective marketing of olives.
2. Strengthened Processors: After an intensive selection phase, the Zaytun Projects strengthened olive processors through technical assistance to improve quality and engaged in value addition that led to increased exports, profits and employment. The project chose 15 processor companies to participate in a series of technical assistance, training and trade show activities. Two international experts served as consultants for these processors and directly addressed the individual obstacles facing each business. An additional marketing consultant was hired to assess production and marketing of olive oil products, provide marketing advice and collect oil samples for entrance into an international competition. The Zaytun Project compiled a manual to ensure the advice of the consultants could be preserved and easily distributed. A supplementary training session on agro-finance was organized with four Egyptian banks that resulted in the creation of the first working capital loan projects for the olive sector in the country. Through targeted training and technical assistance, the Zaytun Project fortified the techniques and opportunities of Egyptian olive processing companies.
3. Strengthening Market Linkages: The Zaytun Project facilitated producer-processor linkages through the creation of direct relationships, resulting in an improved olive supply, strengthened commercial relations and increased sales and incomes for producers and processors. The Project also hosted a total of four market linkage workshops to bring together olive producers and processors. CNFA worked directly with producer and processor representatives with the objective of facilitating business linkages between Egyptian olive farmers and processors.

Overview:

Access to inputs, such as improved seed varieties, fertilizer and crop protection products are imperative to the transformation the agricultural sector. The Seeds Project (2007-2012), part of the West Africa Seed Alliance (WASA), was created to transform West African agriculture from subsistence farming to profitable, self-sustaining and competitive commercial agriculture.

CNFA-implemented the five-year, $6.1 million project funded by USAID and the Alliance for a Green Revolution in Africa (AGRA), with the International Crops Research Institute for the Semi-Arid Tropics and Iowa State University. The project sought to modernize seed distribution systems, facilitate smallholder farmer access to improved seed varieties, improve seed production technologies and strengthen links to credit and markets. The Seeds Project strengthened West Africa’s seed system across Burkina Faso, Ghana, Mali, Niger and Senegal.

Approach:

Through the Seeds Project, WASA advanced the development and implementation of national seed laws and regulations, created and strengthened private seed enterprises, provided business management and technical trainings, produced a foundation for certified seed available for distribution and conducted seed variety trials for cereals and vegetables through the following approach:

1. Provided Business Management and Technical Trainings: The project’s Agrodealer Business Training Program built the business capacity of local seed company managers through training in business planning, supply chain management and marketing. The six-module training model included: managing working capital, managing stocks, costing and pricing, selling and marketing, record keeping and managing business relationships.
2. Increased Agricultural Productivity: WASA worked with local institutions to build agricultural potential in specific focus areas. Bringing improved access to input supplies, availability of technology and technology transfer to farmers and increased access to credit for rural smallholders, the alliance had a significant impact on production practices throughout WASA countries. Field days were an effective medium in spreading awareness of improved farming methods. With participants spanning from local agrodealers to government officials and major supply companies, the input systems in target countries saw marked improvement.
3. Created and Strengthened Private Seed Enterprises: WASA developed viable agricultural inputs systems and supported the overall growth of the West African agricultural sector by creating a sustainable commercial seed industry that provided small-scale farmers with affordable, timely and reliable access to high-input quality seeds and planting materials. In cooperation with input supplies, WASA organized demonstration plots and farmer field days to enhance awareness about new products and technologies.
4. Improved Technical Training of Seed Enterprises: CNFA worked through input-supply companies and commercial trainers to build capacity for the safe usage and handling of products. WASA field demonstrations also provided an excellent educational tool to teach both agrodealers and farmers about new varieties and correct herbicide and fertilizer application.
5. Improved Seed Output Marketing: WASA linked agrodealers and farmer producer groups to commodity traders and crop processors to create market pull for farmer production. It also assisted seed companies and associations in establishing seed marketing strategies.