Value addition is one of the methods appropriate in reducing postharvest loses and increase food security and income to smallholder farmers and other actors along the value chains. Farm Concern International (FCI) has been in the front line to contain post-harvest losses through value addition.
The Inzonzi Nziza Project, implemented in Rwanda, has introduced new crops to farmers such as kales, high yielding and pest resistant onions and orange-fleshed sweet potato varieties and Amaranth.
The project targets not only improve household income by 150% among the targeted communities by 2017, but also improve their health. Farm Concern International (FCI) conducted a Farmer Organization and Cooperatives Assessment survey on 17 farmers’ groups/cooperatives in the three ADPs of Nyaruguru, Mudasomwa and Nyamagabe. The survey revealed that nutrition dense crops such as vegetables were not popular among the smallholder farmers, see figure 1 below.
Among the farmer groups interviewed, maize and Irish potatoes were the most preferred value chains with 71% of respondents indicating production of these crops, followed by Cabbages at 35%, Beans and Wheat at 29% and Carrots at 24%. Mushrooms, African Traditional Vegetables (ATV), Butter, Goats, Cassava, Tree tomato, Garlic and Animal husbandry indicated 6% each and were the least traded value chains. However, the more lesser value chains in the region were tomatoes, wheat, goat rearing, cassava, egg plants and tree tomato all indicating an average rate of 6% production and below.
Research shows that, when crops are repeatedly planted in an area for a long time, they become susceptible to pests and diseases. The soils also get depleted of nutrients and become less productive. This has been the case in the areas where Inzozi Nziza project is implemented, where farmers have majorly planted maize. However, with the introduction of this project which encourages crop rotation, it is expected that the families will have improved health and reduced malnutrition rate among the smallholder farmers.
Through the Rwanda Multi-Value Chain and Enterprise Development Programme funded by World Vision Rwanda, Farm Concern International (FCI) conducted an assessment of existing Farmer Organizations with a view of understanding their location; membership; management and governance structures; aims and goals as well as the ability to contribute and benefit from their chosen value chains. Additionally, the assessment aimed at identifying existing gaps, challenges and making recommendations on the way forward.
This assessment covered farmer groups in the three ADPs of Nyaruguru, Mudasomwa and Nyamagabe with the involvement of 17 Farmer groups and cooperatives in this assessment.
The most accessed service mentioned by respondents was warehousing (100%) while the least service among all respondents interviewed was access to formal markets at 0%. According to the findings, 58.8% of all respondents in the groups interviewed accessed credit and banking services, 35.3% accessed financial literacy training, while 23.5% accessed bulking and commodity aggregation centres.
The least accessed services were market information services, formal sector market linkages, technical and business training as well as local pack house all at 5.9%. (Figure 1).
Based on these results, farmer organizations will be used as foundation for development of the commercialization process. These farmer organizations were found to be lacking fundamental structures that would enable them to evolve into viable commercial entities. The project will therefore involve re-organization of existing groups to focus on production and marketing through adoption of village-based production systems. The groups will also be trained and equipped on commercialization skills in order to develop a commercial mind-set. There will be emphasis on market-driven agriculture and production, as well as market linkages.
The Rwanda Multi-Value Chain and Enterprise Development Programme targets to improve the livelihoods of participating farmers by 150%. The Programme is an intervention under INZOZI NZIZA project a tripartite partnership between World Vision Rwanda, Farm Concern International and Vision Finance Company Limited working closely with relevant government ministries to introduce innovations among smallholder farmers in Southern Rwanda specifically in Nyaruguru, Nyamagabe and Mudasomwa ADPs. The intervention seeks to create enterprising solutions that trigger innovations within the smallholder farming communities.
The project will facilitate at least 6,000 smallholder farmers with modern agricultural production techniques, market access and value chains development through strategic partnerships. The value chains of consideration in the mentioned project sites include irish potatoes, dairy products, cereals, Traditional African Vegetables (TAVs), exotic market vegetables with an emphasis on red bulb onions among others.
According to World Bank stats, South Africa unemployment rate is currently at 52%. Farm Concern International aims to lower this percentage by turning around the smallholder’s economic empowerment in South Africa. To actualize this, FCI is preparing to start operations in South Africa through the Rural Commercialization & Market Development in South Africa, (RuCoMaDeS).
This intervention is especially critical for South Africa youth because Africa Development Indicators Report on youth employment indicates that today’s world population is estimated at 1.2 billion people between ages 15 to 24 years, an increase of 17% compared to 1995. About 87% of these young people live in countries with developing economies, such as South Africa. In Africa, 200 million people are within this age range, comprising more than 20% of the population (United Nations 2007). In view of the high unemployment and crime rates among the youth in South Africa, FCI interventions intend to create alternative sources of livelihoods thereby contributing directly towards job creation, crime and poverty reduction. This can be achieved, and will be achieved!
In its next 10-year plan, FCI plans to undertake commercialization, market opportunities, youth employment analysis, women integration in agri-business as well as value chain assessments in Limpopo, Kwazulu Natal and Eastern Cape in South Africa. These analysis will form the basis for commercialization and market development targeting rural communities and innovatively draw youth and women into market-led production and agribusiness opportunities.
The goal of the RuCoMaDeS intervention is to increase market participation for South Africa smallholder farmers which will encompass youth participation programmes in agricultural trade, thus enhancing sustainability and profitability of smallholder agro-enterprises. FCI reckons that the future of agriculture is dependent on capitalizing on youth skills youth through an integrated approach with other farmers to ensure food security.
A market appraisal conducted by Farm Concern International (FCI) has revealed that although traders in Somaliland prefer to buy produce from Somaliland, they end up buying from Ethiopia because the volumes produced in Somaliland are too little to meet the existing demand. One critical finding of the research was that all crop produce apart from onions were sourced from Ethiopia despite the fact that traders preferred buying commodities at home. This means that there exist tremendous markets opportunities in Somaliland which need to be utilized with proper facilitation of smallholder farmers to enhance them penetrate to the market and benefit so as to improve their livelihoods.
Source: FAO & Farm concern International, 2013.
The market appraisal targeted three regions where the Rural Commercialization project (RuCom) is being implemented by FCI and supported by FAO Somalia. The three regions analyzed were Awdal, Togdheer and Gabiley region which also encompasses Maroodijeex, an area around Hargesia.
The five markets selected were Central market, Ahmed Guray, Guri hadhuudhka, Gobanimo and Gabiley. These markets moved a total of 5,752,286Kgs of commodities a year, with a market value of USD 4,276,458. This was through the sale of maize, carrots, onions, tomatoes, cabbages, barley, Irish potatoes and yellow melon which earned farmers USD 2,614,638.3 annually.
In addition, FCI and FAO through the RuCom programme are promoting collective action through Structured Farmer Organizations. There have been effective forums held between buyers and sellers that have resulted to market linkages and opportunities for business transactions. The forums were held in the villages where the farmer organizations bulk various commodities for market.
These forums provided an opportunity for the farmers to learn about various specifications of quality, quantity and varieties demanded by traders as they purchased the commodities. Farmer organizations were encouraged to practice production scheduling to meet the specific buyer demands so that there would be supply not only within the conventional harvest times but throughout the season.
As a result, in January 2014, Qahir Bahar Cooperative Farmer Organization and Borwaaqo Cooperative and Trade association signed a buyer-seller agreement for the supply of onions, tomatoes and water melons.
FCI VISION :Commercialized smallholder communities with increased incomes for improved, stabilized & sustainable livelihoods in Africa and beyond.