|
Farming sector gets USD4.2m boost
2007-12-20 08:56:37
By Guardian Reporter
Tanzania has been awarded USD4.3 million by Alliance for a Green Revolution in Africa to boost its farming sector.
Funds will support Tanzania Agro-dealer Strengthening Program (TASP) by building a network of 840 agro-dealers.
The program aims to transform what is now a fragmented farm supply distribution system into a more tightly linked consortium of businesses.
A release from TASP Nairobi headquarters says the programme will emphasise gender-equal participation and ensure that women have full access to training and financing.
It also will focus on giving farmers greater access to Tanzania`s government-run fertilizer supply program.
The launching of the project is part an intensive effort to revive small-scale farming and agricultural markets hobbled by the scarcity and high costs of basic farm supplies such as seed, tools and fertilizer, the Alliance for a Green Revolution in Africa (AGRA) has awarded USD13 million in grants to establish nationwide networks of rural agro-dealers in Malawi, Tanzania and Kenya.
``All three country programs aim to achieve a 30 percent growth in rural smallholder incomes; a 40 to 50 percent reduction in the average distance farmers need to travel to purchase farm supplies; and an up to 15 percent decrease in the price of inputs within three years,`` said A. Namanga Ngongi, the new president of AGRA.
The agro-dealers will operate small businesses that reach poor farmers in remote areas.
In addition to selling affordable farm supplies in the quantities needed by small-scale farmers, the agro-dealers will be trained in the safe handling, efficient and environmentally sound use of farm inputs, and will pass this knowledge on to farmers.
These agro-dealer networks will give poor farmers access to basic farm supplies that are otherwise beyond their reach.
Now, it is common for rural farmers to travel great distances just for the opportunity to purchase seeds or fertilizers.
And at the end of their journey they frequently find stores lack the specific items they need or are selling them at unaffordable prices.
Lack of access to basic farm supplies has made it virtually impossible for small-scale farmers to increase their yield or incomes, reinforcing widespread poverty.
The AGRA Agro-dealer Development Program (ADP) will provide emerging, small retailers in rural communities—many of who farm themselves—with the training, capital and credit they need to become certified agro-dealers.
These agro-dealers will in turn reach a total of 1.6 million rural households, potentially benefiting 8.8 million farmers and their family members.
The USD4.3 million Malawi initiative, led by the Rural Market Development Trust (RUMARK) is focused on developing a network of over 600 rural agro-dealers, up from the existing core of 160.
Kenya`s Agro-dealer Strengthening Program (KASP) will use its USD4.4 million grant to scale-up an existing network of 243 agro-dealers, who are concentrated in Western Kenya, to include 1,800 rural farm supply businesses in 32 districts across the country.
It will also work with 10 ``Millennium Villages``, part of the Millennium Villages Project of the Earth Institute at Columbia University, to increase the economic sustainability of their farm input subsidy program.
``The agro-dealer programs build on great initial success in Malawi, which has seen the country transform itself from being a net importer to a net exporter of maize, and even to become a donor of food aid to neighboring countries. If Malawi can do it, it can be done by every country in Africa,`` said Akin Adesina, Vice President for Policy and Partnerships at AGRA.
Malawi faced a major food crisis just a few years ago due to drought that left millions of people starving.
In response, the Malawi government began distributing subsidized fertilizers and improved seed to assist poor farmers.
In tandem with this effort, RUMARK began training and certifying agro-dealers who could set up shop in remote regions, giving farmers access to the farm supplies.
In 2006/2007, Malawi provided farmers with some $60 million in so-called ``smart`` or ``targeted`` subsidies.
Based on this system, farmers can trade in government-issued vouchers to certified agro-dealers in exchange for partially subsidized farm supplies.
``The system made sound economic sense by combining public sector support for poor farmers with an exchange system that strengthens the private sector,``said Adesina.
``This was in sharp contrast with previous approaches that delivered subsidized supplies solely through government agencies, displacing the role of the private sector.``
``The results of all of these efforts—plus favorable rains and Malawi Government policies—have been stupendous,`` said Richard Chapweteka, director of RUMARK. ``In 2006/07, the country generated an additional maize surplus of 1.4 million metric tons. It sold $160 million worth of maize and donated 10,000 metric tons of food aid to neighboring Lesotho and Swaziland.``
In addition, the program showed that, with modest levels of support, grassroots agricultural entrepreneurship can thrive in rural Africa.
``It was important for me to get training in business management and the types of seeds and fertilizers to sell,`` said Dinnah Kapiza, who transformed her used clothing business into a full-line farming supply store in rural Malawi that now serves 600 small-scale farmers.
``I also developed relationships with government extension agents because farmers want more than seeds or fertilizer. They want advice on the best crops to plant and the farming techniques that will produce a good harvest.``
|
