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SAPP
01
SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME COMPONENT 1: More Efficient Value Chains
SUB-COMPONENT 1: Agribusiness Value Chain Interventions
DEVELOPING MORE EFFICIENT VALUE CHAINS
02
GOAL
To increase the income levels of poor rural households in production, value adding and trade of agricultural commodities
M&E SUPPORT TO MINISTRY OF AGRICULTURE AND LIVESTOCK
ENABLING ENVIRONMENT FOR AGRIBUSINESS DEVELOPMENT
03
OVERALL PURPOSE: Facilitate more efficient value chains able to connect small-scale farmers to input suppliers and markets COMMODITY SMALL-LIVESTOCK INTERVENTION PLAN The specific objectives of the small-livestock intervention plan (IP) is to improve income opportunities to smallholder small-livestock producers (mainly goats, pigs and local chickens), through: • Small-scale producers improving access to inputs • Improved market access by small-scale farmers • Small-scale farmers improving productivity in small-livestock
SAPP through the Small-livestock Intervention Plan conducted a training-needs assessment for small-livestock farmers. The training-needs assessment Report identified entrepreneurship skills, group governance and production according to market specifications as key areas where small-livestock farmers needed capacity building. The TNA Report also recommended the training materials that were suitable and later SAPP designed a capacity building programme aimed at addressing the identified needs in the TNA report. A pilot training was conducted involving 34 groups.
TRAINING TOPICS • Identification of a business/Entrepreneurial opportunity • Business planning process • Business planning for financing • Agricultural marketing and trade • Promoting Agricultural products • Price determination • Basic Gross margin analysis • Agricultural market information • Basic business record keeping • Managing Business relationship • Negotiating skills
GROUP/COOPERATIVE FORMATION AND DEVELOPMENT • The need to form a farmer group/belong to an association • Forming groups (to organise and give guidance, to promote and encourage savings and investment, to train members in necessary skills, and to source finance needed by individual farmers and micro enterprises). • Membership requirements • Group training • Managing farmer groups/associations • Managing Meetings • Governance (Election of leaders)
QUICK STORIES FROM THE FIELD
SAPP
05
2013
(c)KarimaCherif/ESA
OUTCOME 1
Small-scale producers better connected to and better able to respond to market demand and value addition opportunities
ENTREPRENEUR TRAINING FUNDED: 2006 MEMBERSHIP: 15 MEMBERS (2006) / 48 MEMBERS (2013): 38 WOMEN, 10 MEN ACTIVITY: GOAT BREEDING, PRODUCTION AND SELLING TOTAL GOATS: 10 (2006) / 40 (2013) CHABOTA WOMEN AND YOUTH IS ONE OF THE GROUPS PARTICIPATING IN THE SMALL-HOLDER AGRIBUSINESS PROMOTION PROGRAMME (SAPP). THE GROUP IS SITUATED IN KAUMUZYA CAMP IN MONZE DISTRICT. THE GROUP IS INVOLVED IN REARING OF IMPROVED GOAT BREEDS WHICH THEY SALE TO MEMBERS. APART FROM THE REARING OF GOAT IMPROVED BREEDS, THE GROUP IS ALSO INVOLVED IN MARKETING OF SMALL-LIVESTOCK SUCH AS GOATS , VILLAGE CHICKEN AND PIGS WHICH THEY BULK AS A GROUP AND SELL TO URBAN MARKETS. THE GROUP IS ALSO INVOLVED IN REARING OF CATTLE, GROWING OF FIELD CROPS SUCH AS MAIZE, GROUNDNUTS AND SOYBEANS.
CHABOTA GROUP
CHABOTA WOMEN ASSOCIATION HAS RECEIVED ENTREPRENEURSHIP TRAININGS ORGANIZED AND CONDUCTED BY SAPP. THE GROUP IS ONE OF THE MOST WELL ORGANIZED GROUPS AND HAS WELL DEFINED BUSINESS PLAN. THE GROUP HAS SINCE SUBMITTED A BUSINESS PROPOSAL WHICH THEY HOPE COULD BE FUNDED BY SAPP FOR EXPANSION OF THE IMPROVED BREEDS SMALL-LIVESTOCK BREEDS.
Prudence & Caitano
Ivan
PRUDENCE MAZILA AND CAITANO CHILULI ARE MEMBERS OF CHABOTA GROUP SINCE ITS FOUNDATION IN 2006 AND PRUDENCE IS THE SECRETARY. THEY COME FROM KAUMUZYA CAMP WHERE THEY LIVE WITH THEIR 6 CHILDREN. THE GROUP HAS GROWN FROM 15 MEMEBERS TO 48 AND THE NUMBER OF GOATS OWNED INCREASED FROM 10 IN 2006 TO 40 IN 2013. THEY HAVE PARTICIPATED IN THE TRAINING COURSES IN ENTREPRENEURSHIP ORGANIZED AND CONDUCTED BY SAPP AND THEY CAN ALREADY SEE BENEFITS IN THE ORGANIZATION AND REPORT KEEPING OF THEIR GROUP ACTIVITIES. PRUDENCE AND CAITANO ARE VERY ACTIVE AND THROUGH THE SMALL-LIVESTOCK BUSINESS HAVE MANAGED TO SUPPLEMENT THE SCHOOL EXPENSES OF THEIR 6 CHILDREN, TO BUILD A BRICKS HOUSE WITH ALLUMINIUM ROOF, TO INSTALL SOLAR POWER, TO BUY A TV AND TWO MOTORBIKES. WITH THE APPLICATION OF THE KNOWLEDGE RECEIVED FROM THE TRAINING THEIR BUSINESS WILL BENEFIT AND THEY AIM AT REACHING IN 5 YEARS 40 IMPROVED BREED GOATS EACH FAMILY TO ENSURE THEMSELVES WITH SUSTAINABLE ASSETS.
IVAN MUBI IS A MEMBER OF CHABOTA GROUP FROM KAUMUZYA CAMP. HE IS MARRIED WITH 4 CHILDREN. IVAN IS VERY ENTUSIASTIC AND SATISFIED FROM THE ENTREPRENEURSHIP TRAINING RECEIVED, IN PARTICULAR HE FOUND VERY USEFUL AND BENEFITTING THE KNOWLEDGE EARNED FROM THE TRAINING ON BUSINESS PLANNING PROCESS, MARKETING AND PROMOTION, PRICE DETERMINATION AND PACKAGING. THANKS TO THIS TRAINING HE FEELS NOW EMPOWERED IN NEGOTIATING AND SELLING HIS GOATS AND HE IS VERY ACTIVE IN SUPPORTING THE GROUP IN EXPANDING THE SMALL-LIVESTOCK IMPROVED BREED PRODUCTION BUSINESS. IMPROVED BREEDS BUSINESS The group got involved in the supply of improved breeds for goats due to the high demand from the members and local farmers. Initially, they were sourcing improved breeds from the Livestock Development Trust and had to wait for more than 6 months when they order and pay for the male improved goats. Apart from the longer waiting period, the improved male goats were too expensive for them costing K600 or USD $120 per male goat which is only three months old. They discovered that if they could do the business themselves, they could supply the male goats at half the price and still be able to make good profit. That’s how they started the improved breeds business and there is high demand which they can’t satisfy and would like to expand and improve the business operations. (c)KarimaCherif/ESA
OUTCOME 2
Enhanced capacity of value chain operators and improved relations and coordination among value chain stakeholders and support services
MATCHING GRANT FACILITIES
A
for developing of a Small-livestock marketing and bulking point
MARKETING OF SMALL-LIVESTOCK The major markets for small-livestock are in urban areas where small-scale farmers have to travel distances. They have been facing a number of problems such as: • Transportation costs • Thefts • Price fluctuations • Lack of bulking facilities • Lack of farm inputs • Attracting economic volumes that would enable them sign supply contracts or even call buyers to come and buy at farm gate In view of the above, SAPP aims at developing a small-livestock marketing and bulking point through matching grant facilities in an effort to address some of the problems highlighted above.
KALOMO DAIRY COOPERATIVES
KALOMO DISTRICT IN ZAMBIA IS ONE OF THE FOCAL DISTRICTS UNDER THE SAPP SMALL-LIVESTOCK INTERVENTION PLAN. IT IS ONE OF THE DISTRICTS WITH LARGE POPULATION OF SMALL-LIVESTOCK IN ZAMBIA. THE KALOMO DAIRY COOPERATIVES SOCIETY WAS ESTABLISHED IN 2003 BY A GROUP OF FARMERS WHO GOT TOGETHER TO START PRODUCING MILK COLLECTIVELY IN ORDER FOR THEM TO FIND AN EASY MARKET AND ENSURE AN INCOME FOR THEIR FAMILY. WITH THE SUPPORT OF THE GOVERNMENT AND NGOs THEY MANAGED TO OPEN A MILK CENTER AND HAVE BEEN ABLE TO LINK TO PARMALAT WHICH ENSURE THEM WITH EASY ACCESS TO MARKET.
JONATHAN (COOPERATIVE CHAIRMAN), GRAVE (VICE-CHAIRMAN) AND STEVEN (ARTIFICIAL INSEMINATOR TECHNICIAN) EXPRESSED THEIR AMBITION TO HAVE THE COOPERATIVE MARKETING GROW, INTRODUCING NEW PRODUCTS AND QUALITY BREED. HOWEVER THEY STILL FACE A NUMBER OF CHALLENGES SUCH AS TRANSPORTATION, BULKING FACILITIES AND ANIMAL FEEDING. FOR THIS REASON KALOMO DAIRY COOPERATIVES APPROACHED SAPP FOR THE DEVELOPMENT OF THE SMALL-LIVESTOCK TRADING AND BULKING POINT. SAPP HAS SINCE FACILITATED THE DEVELOPMENT OF THE MASTER PLAN FOR THE SMALL-LIVESTOCK MARKETING CENTER. THE PLANS HAVE BEEN APPROVED BY THE PROVINCIAL PLANNING AUTHORITY.
Jonathan
COOPERATIVE CHAIRMAN
Grave
COOPERATIVE VICE-CHAIRMAN
Steven ARTIFICIAL INSEMINATOR TECHNICIAN
THE FUNDS FOR THE FIRST PHASE OF SMALL-LIVESTOCK MARKETING AND BULKING CENTER CONSTRUCTION HAS BEEN SOURCED FROM MUSIKA A COOPERATING PARTNER FOR SAPP AND THE FUNDING AGREEMENT HAS ALREADY BEEN SIGNED. KALOMO DAIRY HAS ALSO APPLIED FOR FUNDING THROUGH THE SAPP MATCHING GRANT FACILITY FOR PHASE II OF THE SMALL-LIVESTOCK TRADING AND BULKING POINT.ONCE THE SMALL-LIVESTOCK BULKING AND TRADING POINT IS OPERATIONAL MORE THAN 200 SMALL-LIVESTOCK WILL TRADED/BULKED PER DAY AT THIS CENTER. THE CENTER WILL INCREASE THE MARKETING OPPORTUNITIES FOR SMALL-LIVESTOCK FARMERS AND ALSO WILL PROVIDE GOOD TRADING FACILITIES FOR TRADERS AND BUYERS. THE CENTER IS ALSO EXPECTED TO ACCOMMODATE INPUT SUPPLIERS MAKING ACCESS TO INPUTS EASIER TO FARMERS.
QUICK STORIES FROM THE FIELD
SAPP
05
2013
(c)KarimaCherif/ESA
OUTCOME 2
Enhanced capacity of value chain operators and improved relations and coordination among value chain stakeholders and support services
MATCHING GRANT FACILITIES
for developing of an input supply point at small-livestock marketing center
B
PUBLIC/PRIVATE PARTNERSHIP SAPP was funded on the principle of public/private partnership with the focus on private sector taking a leading role in the value chain developing work as intermediary actors and the Government enabling environment. SAPP by supporting the private sector intermediary actors aims at enhancing their capacity to provide services to its primary target group who are smallholder farmers.
Jan
JAN IS THE MANAGER OF FARMARAMA, A COMPANY ESTABLISHED ONE AND A HALF YEAR AGO BY 6 WELL KNOWN ZAMBIAN AGRICULTURAL INPUT COMPANIES (LIVESTOCK SERVICES, AFRIVET, SARO, MRI AGRO, ROSS/NUTRIFEEDS, GREENBELT FERTILIZERS) WHICH OBJECTIVE WAS TO CREATE A ONE-STOP SHOP WHERE FARMERS COULD SELL AND AT THE SAME TIME BUY THEIR INPUTS. FARMARAMA SELLS FROM SEEDS, TO CHEMICALS, TO ANIMAL HEALTH PRODUCTS, TO VACCINES, TO CATTLE DIPS, TO POULTRY EQUIPMENT, TO TRACTORS, TO SPRAYERS, TO STOCKFEED, TO DAY OLD CHICKS, TO FERTILIZERS, TO MILKTANKS, AND MANY MORE ITEMS AT AFFORDABLE PRICES.
FARMARAMA APPLIED FOR SAPP MATCHING GRANT FACILITIES TO COLLABORATE WITH SAPP BY OPENING AN OUTLET AT THE SMALL-LIVESTOCK MARKETING CENTER TO ADDRESS MANY OF THE CHALLENGES SMALL-SCALE FARMERS USUALLY FACE SUCH AS EASY ACCESS TO FARM INPUTS AVOIDING LONG TRAVELS AND THEFTS, SELL THEIR SMALL LIKESTOCK AND PRODUCTS IN EXCHANGE OF MONEY AND THEREFORE ABLE TO BUY FARM INPUTS AT AFFORDABLE PRICES.
Dempie MORE BEEF LIMITED IS A COMPANY BASED IN LUSAKA, WHICH PROCESS, PRODUCES, AND SUPPLIES SAUSAGES AND COLD MEATS TO MAJOR SUPERMARKET CHAINS AND RESTAURANTS IN ZAMBIA. DEMPIE IS THE MANAGER OF MORE BEEF IN CHOMA WHICH APPLIED TO COLLABORATE WITH SAPP THROUGH THE MATCHING GRANT FACILITY IN ENSURING THAT SMALL-SCALE FARMERS ADOPT BEST PRACTICES IN ANIMAL HUSBANDRY, IMPROVE THE QUALITY OF THEIR PRODUCTS AND OFFER READY MARKET. MORE BEEF IS CONSTRUCTING A NEW ABATTOIR IN CHOMA WHICH WILL BE SOON OPERATIONAL AND WHERE SMALL-SCALE FARMERS CAN COME AND SUPPLY WITH THEIR LIVESTOCK JUST AS ANY COMMERCIAL FARMER WITH A COMPETITIVE PRICE. IF THE ANIMAL IS NOT SLAUGHTER READY MORE BEEF WILL PROVIDE THE FARMER WITH THE SERVICE OF KEEPING THE ANIMAL UNTIL READY. MORE BEEF WILL ALSO SERVE AS A BULKING POINT FOR GOATS, SHEEP AND CATTLES. THE COLLABORATION BETWEEN SAPP AND MORE BEEF AS INTERMEDIARY ACTOR IN THE VALUE CHAIN WILL ENSURE THE SMALL-SCALE FARMERS’ ACCESS TO THE SAME BENEFITS AS THE COMMERCIAL FARMERS.
QUICK STORIES FROM THE FIELD
SAPP
05
2013
(c)KarimaCherif/ESA