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Browsing IFDC Publications by Author "Alexander Fernando"
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- ItemAssessment of the Effectiveness of Agro-dealer Development Activities Conducted by USAID-AIMS Project in Mozambique: Agricultural Input Markets Strengthening (AIMS) III: June 2015.(2015) Latha Nagarajan; Alexander Fernando; Leonardo, W; Aniceto Matias; Ginga GoncalvezAgro-dealer development was one of the key components of the USAID-funded Agricultural Input Market Strengthening (AIMS) project implemented by the International Fertilizer Develpoment Center (IFDC) in Mozambique. AIMS focused on creating an extensive network of input suppliers/retailers, equipping them with business and technical knowledge and strengthening their capacity through credit, information and policy to meet the demand. Since 2006, AIMS has directly trained 201 agro-dealers covering both Beira and Nacala corridors. AIMS-IFDC staff in Mozambique conducted a rapid impact assessment of agro-dealers during July-September 2014. The purpose of this assessment was to profile and document the contribution of the AIMS project toward establishing sustained agricultural input networks and providing inputs accessible to smallholders in Mozambique. This was done on a limited scale by comparing a few key parameters with the baseline conducted in 2006 before the start of the program, and subsequently by a detailed survey assessment among dealers who were trained by the USAID-AIMS project vs. those who were not trained but are operating agro-input businesses in the project areas. In general, the agro-dealers have observed an increased demand for agricultural inputs among farmers in the last five years. Sixty percent of the sample in the survey (both trained and non-trained) said their businesses have doubled in the last three to four years. Demand for improved varieties of maize and beans have gone up along with use of fertilizers (NPK and urea) for these crops. Distances traveled by farmers to access farm inputs have reduced substantially with improved dealer networks. There were significant differences among the constraints faced by trained vs. non-trained agro-dealers in expanding their business operations.
- ItemExisting and Potential Business Models on Last Mile Delivery of Seeds(2021) Latha Nagarajan; Thomas Musembi; Alexander FernandoThe first part of this report builds on insights developed from the review of existing models of seed delivery systems available in sub-Saharan Africa (SSA) that serve most smallholder farmers. The first chapter begins with a summary of what the various models seek to address in the smallholder farmer operating landscape. A description of the various operating models identified in the formal1 and informal2 seed sectors is reviewed. The greatest responsibility for the model to function is borne by the principle or anchor entity that brings together other supportive partnerships to make the model function in seed delivery to farmers. The review recognizes that no one entity can satisfy all farmers’ needs identified in delivering quality seed at the last mile, but a series of formal and informal working relationships between various players in the seed value chain is necessary, each with different roles and responsibilities in the entire process. The report further identifies the dominant models as those operating at the informal seed system level, driven by commodity traders and community-based seed producers. Models operating in the formal seed system are responsible for the distribution of certified seed and are also captured in their various forms; they are described as government-backed models that include seed parastatal-based models and relief-based models that encompass seed aid, seed vouchers, and trade fair approach. Models based on aggregation are also described, and these include formal and informal farmer groupings, such as cooperatives that deal with input and output aggregation models that take the form of off-takers, contract farming, or out-grower schemes. The report further recognizes the agro-dealer model as being at the core of the certified seed delivery system, driven by a network of rural-based brick-and-mortar agro-dealer enterprises with varying capacities and operating structures. The Village-Based Advisor (VBA) model is also captured as one that helps to combine seed delivery together with on-the-ground extension service support.With access to finance being identified as a major factor affecting farmers’ productivity, various organizations have developed innovative models that offer agricultural inputs and other bundles of services on credit. These models are described in detail and include the One Acre Fund (OAF) social enterprise model, with other new and upcoming organizations taking an almost similar basic approach of input credit but with a distinctly different marketing route involving digital financing, intermediaries, and local networks. These include models by Apollo Agriculture, Tulaa, and Agri-wallet that recruit small-scale farmers every season with similar input supplies (seed and fertilizer), crop insurance, and extension services. Models that involve vegetatively propagated crops, namely Irish potato, sweet potato, and cassava, have been described separately so as not to diminish their importance and the special characteristic of this group. The seed systems in this category are farmer and trader-dominated, highly dependent on public research and development, and less formally regulated, with most of the delivery models taking a decentralized multiplication process approach to increase localized availability of disease-free planting material to farmers. The fodder seed systems have been described as underdeveloped due to limited progress in the livestock sector in which animals are kept on subsistence. There is, however, growing interest in this sector with the increase in demand for livestock products and the presence of new market actors for fodder seed in the market. The second part of the report proposes potential models that can be adopted and gives basic guidelines that should be embedded in them. These include scalability, sustainability, quality standards, incorporation of technological advancements, and the creation of a local ecosystem around the solution considering its inclusivity nature, i.e., considering gender, age, and disability of the population involved. Input into these models has also borrowed from the Fast-Moving Consumer Goods (FMCG) industry, which is very efficient in delivering goods from producers to consumers, even in very remote areas. Some solutions have been tailor-made to suit the special conditions and regulatory framework in the seed industry. The review further proposes and describes the Business Model Canvas 3 as a tool that will aid in understanding the proposed models systematically and concisely. The outcome will be insights about last-mile customers, important partnerships required, the value proposition offered, and through what channels the models hope to generate revenues while managing costs for sustainability. Various models have been proposed, which all focus on last-mile delivery solutions. These are labeled as the micro-franchising model; Regional clean seed producers with hub entrepreneur model; Dry legumes production financing model; Seasonal Rural Aggregation and Distribution Kiosks model; and the Motorcycle Distribution Agents model. The rationale for proposing each model is explained in-depth with an accompanying business model canvas. No one model will be able to deliver on all the needs of rural small-scale male and female farmers; what is required is a combination of different ingredients incorporating a market-based systems approach, learning from previous projects, multiple partnerships, borrowing successful models from other industries, taking advantage of technological advancements, and eventually taking calculated risks. Through experimentation with different approaches, we will eventually produce models that can drive more quality seed and related inputs sustainably to most small-scale male and female farmers in rural SSA.