Linking value chain actors to markets: a Business...

www.iita.org A member of CGIAR consortium

Linking value chain actors to markets: a Business Model

Simon N’cho, Ousmane Coulibaly, Nicodème Fassinou Hotegni and Sounkoura Adetonah IITA-Ghana, P.O. Box TL 6, Tamale

Tel: +233- 3720-28913/+229 62 59 49 35 www.iita.org

TAKING COWPEA TO SCALE IN WEST AFRICA (COSP)

Pan-African Grain Legume and World Cowpea Conference 1 March 2016 Livingstone, Zambia

FEED THE FUTURE

http://www.iita.org/


TARGET COUNTRIES and PROJECT ZONES

Scope of the Project


Themes and specific objectives of COSP

SO2: Crop management

Reduce poverty - Improve food and nutritional security for healthy life of dryland farmers in West Africa

SO1: Seed Systems and input services

SO3: Post-harvest and increase home consom.

- Identification and production of

quality seed of improved farmers’ preferred cowpea varieties - Up and out scale quality seed of improved farmer’s preferred cowpea varieties

Functional seeds systems

- Reduce prevalence of insect pests damage on cowpea crop

- Increase awareness and adoption of proven IPM technologies

Improve cropping practices

- Identification and promotion of

methods to reduce harvest losses

- Improve access to environmental friendly storage methods: PICS bags

- Out scaling of adapted and efficient post harvest techniques

Improve household nutrition

SO4:

Pro

ject

Man

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t, Ef

ficie

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f int

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COSP alignment with CRP-Grain Legumes

CRP.SO3. (COSP SO2) Identify and promote crop and pest manmagement practices for sustainable grain legume production

CRP.SO4. (COSP SO1) Develop and

facilitate efficient legume seed

production and delivery systems for smallholder farmers

CRP.SO5. (COSP SO3) Enhance grain legumes

value chain benefits captured by the poor,

especially women

CRP.SO6. (COSP SO4) Partnerships, capacities and

knowledge sharing to enhance grain legumes

R4D impacts

COSP


PROBLEMS

Limited Supply and Consumption of cowpea

and cowpea-based products in Ghana, Mali,

Nigeria and Senegal

CAUSES

Low productivity, high rates of post-harvest

losses and poor knowledge of nutritious

value of cowpea/cowpea-based products

KNOWLEDGE-RELATED CAUSES Lack of:

- Awareness of quality seeds of improved cowpea varieties -Knowledge of best and available cowpea agronomic practices -Knowledge of available storage technologies reducing post-harvest losses - Knowledge of nutritional benefit of cowpea/cowpea-based products

Inputs markets

Input suppliers

Grain producers Traders/processors Outputs markets

Rese

arch

inst

itutio

ns CBOs Research institutions

NARS NARS

IPs

Innovation Platforms

Promote best cowpea agronomic practices

Promote best IPM practices

Promote improved cowpea storage technologies

Increase Home consumption and sales of

cowpea products

COSP

-Increased on-farm cowpea productivity -Reduced post-harvest losses -Increased cowpea sale and home consumption -Increase farmer’s gross margin

Project Monitoring & Evaluation: 20 quantifiable indicators

Theory of change of COSP


•Breeders with information from Stakeholders/markets

•Project supports and pay for Agricultural research institutions (NARI) in each country (SARI&CRI in Ghana; IER in Mali; IAR in Nigeria and ISRA in Senegal) •Public-Private Partnerships and NGOs with technical

support from the cowpea project/IITA and NARI

•NARI, NGOs sell foundation seed to seed companies on a cost-recovery basis

•Seed companies and contract local growers •Some registered CBOs •Project collaborates with partners to train farmers in

improved production and storage technologies (Formal seed system) •Private through local contract growers •Project collaborates with partners to train NGOs,

CBOs, FBOs, Nucleus farmers in improved production and storage technologies

(Informal seed system) •Seed companies set seed price •Local contract growers

•Agro-dealers, NGOs, CBOs, FBOs

•Project contributes to link grain producers to buyers and processors through Innovation Platforms facilitation •Project collaborates with partners to promote family

consumption of cowpea-based products

• Perceptions on producers, processors and consumers (preferences are key to adoption and scaling through higher demand

•Not profitable for private seed companies/growers because of high cost

• Good research facility due to the technical requirements •Limited market, no profit •High production cost •Technical support required for quality assurance

• Effective channel to reach seed producers and registered CBOs. The price is set to recover the production cost only.

•Registration of companies and organizations required for quality control

•High skills required and High cost of certification process •Profitable for private companies

•Seed companies are in business (make profit)

•Using existing channels and local contract growers reduces distribution costs

•Project will provide technical and financial support for selected seed companies to purchase small seed packets during the first two years.

•No need to register, Certification not required •Most important source of diffusion of seed from improved

varieties with lower transport cost • Advocacy for recognition of quality seed as a good

opportunity and accepted by regulatory services

What Who Why Selection of end-users preferred

varieties

Breeder Seed production

Foundation Seed production

Foundation Seed distribution

Certified Seed production

Quality Seed production

Market 1. Cowpea Seed marketing

Grain production, processing and

storage

Market 2. Grain and cowpea products

marketing

Info

rmat

ion

flow

for p

refe

rred

var

ietie

s

•Smallholders farmers and Processors •Project collaborates with partners to train farmers

in improved cowpea production and storage technologies

•Production for home consumption and market •Improved storage to reduce post-harvest losses and take

advantage of high market price late in the year

•Ensure that market respond to consumers’ preferences

•Promote demand-driven cowpea production and marketing

•Ensure family benefit from nutritional advantage of cowpea products

Financial systems

Technical and marketing Support

Cowpea Out Scaling Project Business Model


M&E Structure

Akvo FLOW Dashboard PMP

PM, COSP: Ensure data quality and

transfer to USAID

M&EO, COSP: correction and

validation of data

DQAE: Control all country data quality

DQAA: Control data quality in-country

M&EO: Supervision and Cleaning of data

DCA: Collect raw data and send to

Akvo FLOW dashboard

PM, COSP: Ensure report

quality and transfer to

USAID

M&EO, COSP: Review report

CC: Report format

DQAA: Control data quality

M&EO: Filling PITT

DCA: Use PIRS

COUNTRY

LEVEL

M&E field agents in target Zone 1

M&E Data quality assessment specialist

M&E officer at National level

National project coordinator

M&E officer at Regional level/IITA

M&E Consultant M&E Assistants

and Database manager

Project Manager (IITA)

Activity Manger (USAID)

USAID

REGIONAL LEVEL/IITA

Flow of data collected

Fig.1. Monitoring and Evaluation framework in the COSP

Data quality assessment (validity, integrity, precision, reliability, timeless)

Feed-back information



1 M&E Supervisor

1 M&E Supervisor

M&E Data quality

assessment agent

1 M&E Supervisor

DQA-1 (country)

DQA-2 (regional)

DQA-3 (M&E unit)


Iitacosp.akvoflow.org/admin

Akvo FLOW Dashboard


Linking v.c. actors to markets

Output Market. -Poor access - Low Prices

VC Actors -Inadequate information; weak interaction; poor business environment -Poor bargaing power, Poor technologies, Low productivity, Low profit, Soil, depeletion

Input Market - Poor access - High Prices IPs and others

organizations Enhance communication, innovation

capacity among actors, Improve interactions, coordination, and coherence

among all actors, Facilitate learning and use of knowledge, Contribute to improved productivity and Creating an enabling

environment


• Supporting stakeholders to access timely, quality and affordable inputs


• Training stakeholders to use improved production, post-harvest and marketing technologies


• Improving stakeholders’ access to accurate markets information

• Enhancing stakeholders bargaining power

• Improving Access to

finance (Business credit)



SEED PRODUCERS: Input market

• Improve access to early generation seed of improved and preferred cowpea varieties

• Link seed producers to agro-dealers

• $39,000 to support research institutes to produce and distribute 6.75 tons of breeder seed

• 888 seed producers and seed companies technicians trained to produce 59 tons of foundation seed

• Agro-dealers involved in a training program to provide quality inputs to seed producers (6)

Activities Achievements



• Improve seed producers awareness on the profitability of selling quality seed of preferred cowpea varieties

• Promote innovative marketing strategies to increase demand and sales of quality seeds

• Provide high quality and affordable seed to cowpea grain producers

• 13 Awareness campaigns and 7 seed fairs were organized in target countries

• $31, 000 to support seed companies to package and sell seed in small packs (1, 2, 4,5,10 kg).

• 436 CBOs, 234 FBOs, trained to produce 337 tons of high quality seed

• More than 500 seed out growers contracted with seed companies and trained to produce high quality seed

Activities Achievements

SEED PRODUCERS: Output market



• Increase awareness and access to quality seed

• Train and organize agro-dealers to sell quality seed of improve cowpea varieties

• Link stakeholders to finances (where feasible)

• 13 awareness campaigns through local radio, TV show, Posters and seed fair

• Agro-dealers involved in training programs to provide farmers with most fitted packages of seed and other inputs (10 trainings)

• Facilitate linkage between farmers/traders and agro-dealers and finance institutes to get input credit (at least 8 in Senegal)

Activity Achievements

GRAIN PRODUCERS: Input market



• Promote demand-driven cowpea production and

• Ensure that product respond to consumers’ preferences

• 638 demonstrations plots were conducted to train farmers on GAP and visited by 11,560 stakeholders

Activity

Achievements

GRAIN PRODUCERS: Output (consumer) market



• Improve farmers capacity in storage of cowpea grain

• 8,020 farmers trained in post-harvest handling, storage and grain conservation

Activity

Achievements




• Increase Home consumption of cowpea products

• Link producers to grain buyers and processors

• 3,247 household representatives trained to demonstrate the nutritional value of cowpea and cowpea-based products,

• More than 17, 000 people reach by radio message

• At least 80 (Senegal) pre-harvest contracts were facilitated between farmers, FBOs and grain buyers

Activity Achievements




Challenges and Solutions

Challenges Solutions

Asymmetry of Market

Information

Establish a dynamic and participative Market

Information collection and diffusion System (MIS)

Ensuring Functioning Innovation Platforms

Enhance effectiveness of existing IPs and CBOs/FBOs


• Ghana Strong interest of seed out-growers. Partnership with COSP has led to an increase (double) in the number of seed out growers and quantity of quality cowpea seed produced

• Mali Strong interest of communities. Cowpea value chain stakeholders embrace improved cowpea varieties to enhance food security and improve livelihoods

• Nigeria Eager adoption by farmers. Demonstrations plots have speeded up the uptake of improved cowpea varieties in Northern Nigeria


Thank You

Linking value chain actors to markets: a Business...

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