Can Private Sector fill the gap in Agricultural Extension?
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Transcript of Can Private Sector fill the gap in Agricultural Extension?
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 1
Can Private Sector fill the gap in Agricultural Extension?Presented by:Suresh Babu
Senior Research FellowInternational Food Policy Research Institute, Washington D.C.
atThe SASKI Brown Bag Lunch, World Bank, Washington D.C.
16th December 2015
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 2
Overview Introduction
Conceptual Framework
Case Studies on Private Extension
Synthesis of Results
Conclusions
Challenges and way forward
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What is private extension?The concept of private extension emphasizes three aspects, which includes:
involvement of extension personnel from a private agency or organisation
payment of services by the client through a service fee, directly or indirectly
playing supplementary or alternative role to public extension services
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Why are private extension systems important?
• Declining budget allocation for the public extension by the Governments and donors
• Transformation of agriculture from subsistence level to commercialized agribusiness
• Concerns on efficiency and effectiveness of public extension
• Beneficiary contribution for ensuring demand driven and accountable extension provision
• Private extension to supplement and complement the public extension
• Decentralization of public extension
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Research questionsPrivate extension is demand-driven and its uptake is need-based, leading to the following questions: • What is the difference between private and public extension systems? (Birner et al., 2009)
• What regulatory mechanisms and institutional arrangements must be developed to support private extension?
• What are the latest innovations in extension provision?
• What are the motivations and incentives for private companies for knowledge sharing?
• What are the opportunities for private knowledge entrepreneurs (Dewhurst et al., 2013)
• What role can policymakers play in shaping and supporting inclusive innovation systems? (Foster and Heeks, 2013a,b)
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About the book…
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To better understand different models of extension delivery and financing by private companies
across the agricultural value chain
To provide an assessment of what are the factors leading to successes
or failures of various approaches
To draw lessons and recommendations for future
endeavors.
Presents 10 cases of private extension across 7 countries.
Using various data collection methods, research techniques and
field interviews
Analyses of trends, commonalities and differences among various
extension approaches
Rationale for the book Methods used
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Conceptual Framework
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Operational Framework for Assessing, Analyzing, and Acting on Extension Reforms
The framework for assessment of private extension requires: Assessment of the current state of extension:
• Quantitative methods• Qualitative methods
Analysis of extension provision:• Internal Factors• External Factors
Dialogue and consultations:• Key Informant interviews• Focused group discussions
Action plan for reforms
Program implementation, monitoring and evaluation
Assessment
Analysis
DialoguesAction plan
Implementation; Monitoring and
Evaluation
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Case Study I: EID Parry, India EID Parry is the oldest private sugar mill in India
Motivation for private extension provision:• Regular supply of sugarcane for crushing needed
• The area under sugarcane cultivation is decreasing with ourbanization; o subsidy for cashew plantation;o reducing water table
• Decrease in sugarcane yield
• Increase in labor wages
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Uniqueness
Company has managed to break the smallholder syndrome
Effectively pulls the global, regional and national knowledge needed for
successful cultivation of sugarcane by the area farmers
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Case Study II: Kenya Horticulture Exporters (KHE) Kenya Horticulture Exporters (KHE) is a leading exporter of vegetables and fruits in Kenya
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KHE
Finance /Input Farmers
Loan repayment
Credit / Inputs
Extension Approach of KHE
Uniqueness KHE enables smallholders to capture
value in export markets
It empowers them to understand and work with international standards
Create further value for local communities by employing people in processing, packaging and logistics
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Case Study III: Rio de Una, Brazil
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Rio de Una is a food processing company which connects farmers to the buyers of the fresh vegetables
Uniqueness It is a win-win situation, where it is in
the best interest of the company and the farmers is met
Provides attractive employment opportunities to rural youth
Works well as viable alternative to public extension systems for family farms that meet minimum level of agricultural production required
Vegetable farmers – Organic and Traditional Extension Services
Extension / Technical Associates
Credit
Organic certification
Equipment rental
Own seedlings
Research linkage
EMATER
Micro-irrigation
Rio de Una-Vegetable processing and
packaging
Bob’s McDonalds Other
retailers Walmart
Retail stores
Wholesale market
Consumer
Vegetable purchase by Rio de Una
Vegetable Value Chain and the Role of Private Extension in Brazil
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Case Study IV: Syngenta Frijol Nica Program, Nicaragua
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Key Objective
To provide an integrated package of high-level technological solutions, technical assistance, support in market linkages, and education for bean producers and their families through:
Knowledge Transfer
Technical Support
Financing
Uniqueness Program identified opportunities
to turn bean cultivation into a highly technical, profitable activity
The extension model combines input supply and technical assistance with financing as well as partnerships with commercial groups.
The Frijol Nica program was initiated by Syngenta and a strategic partner, Rappaccioli McGregor, S.A. (RAMAC) in 2006
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Case Study V: Multi-Trex Integrated Foods, Nigeria
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Uniqueness It makes profitability of cocoa production for
farmers a key consideration in its operation
Focuses on production of high quality cocoa
Enabled efficient communication and keeping the extension service demand driven and focused on issues highly relevant for the smallholder cocoa production
Multi Trex works in the cocoa value chain and provides extension services designed to target cocoa farmers and assist them to:
Increase the quality of cocoa supplied through certification and good agricultural practices
Increase their productivity
Increase input availability for farmers
Ensure regular supply of cocoa
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Case Study VI: Jain Irrigation Systems Limited, IndiaJain Irrigation Systems Limited (JISL)is a multinational organization known for its pioneering work in the micro-irrigation industry
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Uniqueness The successful vertical integration of
JISL extension program in the white onion value chain from input provision
to processing
Contract farming has increased farmers’ return on investment while
creating profit for the company.
JISL Extension Program
• JISL provides agricultural inputs like seed, bio-fertilizer, micro-irrigation system (e.g. drip), seed planters, package materials (‘gani’ bags), and a comprehensive package of extension services
• After harvest, the produce is bought back by JISL at minimum support prices or market price, whichever is higher
• On average, farmers have achieved 130% yield increases.
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Case Study VII: Marico Limited, IndiaMarico Limited is one of India's leading consumer product & services companies operating in the beauty and wellness industry It is currently the largest buyer of safflower in India which is marketed under its healthcare products in the safflower value chain to provide extension to farmers
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UniquenessThe program focuses on profitability of safflower production rather than only
increasing the levels of safflower production for its own supply
Direct linkages between producers (farmers) and processors (industry) of safflower seed tightens the supply chain, leading to more efficient communication and
coordination between actors
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Case Study VIII: PRAN, BangladeshPRAN is the largest certified agro food exporter in the agro processing sector in Bangladesh
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UniquenessPRAN’s well-defined field-level network,
and organized input distribution and crop collection system
Guarantee of sale
elimination of the middle men through creation of ICT enabled agricultural hubs
PRAN’s Vision
To enrich the agriculture sector by creating more demand for agro
products and enhancing production by providing training and financial
support to the participating farmers
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Case Study IX: Sarveshwar Organic Foods Limited, India
Sarveshwar Organic Foods Ltd. was established in 2004 and is involved in the farming, processing, and export and marketing activities of organic produceThe company’s extension program focuses on smallholder farmers growing Basmati rice organically in 157 villages of Jammu, Samba and, Kathua districts of Jammu.
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Publicity of
Material
Prepare and
maintain Field
Diaries
Extension Activities
Traceability of produce
Awareness Generation
Internal Inspection
External Inspection
Uniqueness purchases rice from the farmers on the premium rates
on buy back basis
efficient systems of procurement, storage, monitoring and delivery of produce
The requirements and obligations of organic production and contract with the company are explained to the
farmers upfront.
Awareness Generation
Internal Inspection
External Inspection
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Case Study X: An Giang Plant Protection Joint Stock Company, VietnamAn Giang Plant Protection Joint Stock Company (AGPPS) is a provider of seedlings, fertilizers, and pesticides and a conduit for the transfer of agricultural technologies and cultivation techniques in the rice industryTo address major agricultural pests and diseases threatening Vietnamese rice producers, AGPPS selected well-informed farmers to act as ‘farmers’ friends' (FFs) to aid small holder farmers
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Uniqueness• AGPPS has an extensive distribution network and flexible sales policies
• Offers high quality products, provides advanced technical assistance to farmers, and has strong marketing campaigns, providing end to end solutions to farmers
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Synthesis of Results I: OverviewInvolves complete set of actorsQuality of the produce drives private extensionCompetitiveness in global markets Cost of extension is captured by the private sectorShared value addition – ensures sustainabilityNet profitNatural Resource Management
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Synthesis of Results II: Impact of Private extension
Benefits of Private Extension
India/ Sugarcane
Kenya/ Vegetables
Brazil/ Vegetables
Nicaragua /Beans
Nigeria/ Cocoa India/ Onions
Yield increases +++ ++++ ++++ +++++ ++++ ++++
Cost reductions ++++ +++ ++ ++ ++ ++++
Quality and consistency of outputs
+++ ++++ ++++ +++ ++++ ++++
Increase in net profit
+++ ++++ +++ +++ ++++ ++++
Natural Resources Benefits
++++ +++ ++++ +++ ++ ++++
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Impact of the private extension system
Note: This is given in the format of “before and after” keeping before at the “++” level
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Synthesis of Results III: Feedback on the private extension services
The case studies also provide feedback from the contract farmers themselves, the extension workers, the communities in which the companies operate, and the company management.
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Crop/Nature of advice India/ Sugarcane Kenya/ Vegetables Brazil/ Vegetables Nicaragua /Beans Nigeria/ Cocoa India/ Onions
Pre-planting advice +++ +++ ++++ +++ ++ ++++Input supply – seedlings/ seeds
++++ +++ ++++ +++ ++ ++++
Input supply – fertilizers and chemicals
++++
++ ++ ++++ ++++ ++
Help with crop loans ++++ ++ +++ +++ +++ ++++Irrigation systems ++++
++ ++ ++ ++ ++++
Intermediate cultivation / weeding
+++ +++ ++ +++ ++ +++
Harvesting
Help / advice
++ +++ ++++ ++ ++++ +++
Post-harvest advice ++ ++++ ++++ ++ +++ ++Marketing advice /Help ++ ++++ +++ +++ ++++ ++++
Ranking: +++++ excellent ++++ very good+++ good ++ fair + poor
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Conclusions IProvision of integrated services
Better research-extension linkages
Market connections – assured market access
Reduction in price uncertainty
Inclusive innovation
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Conclusions IIEnhanced use of quality inputs
Product differentiation
Solidarity building
Cost recovery
Demand driven
Capacity development
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Final RemarksAccess to knowledge is a key determinant of agricultural growth
Private extension plays an important role in the pluralistic extension system
Private extension programs for value chains are effective, but their coverage is limited
Perfect substitute for public extension systems?
Public-private partnerships to increase the efficiency and effectiveness of the public extension system
Need better understanding of costs and benefits of innovations in extension approaches16th December 2015
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Challenges and way forward…Need to monitor private companies to avoid undue exploitation of farmers
Dispute resolution is another major challenge
What price do farmers pay for extension services?
The scale (and scope) of private companies’ operations may remain limited
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Thank you!