USAID in partnership with the Alliance for a Green ...

USAID in partnership with the Alliance for a Green Revolution in

Africa, the Bill & Melinda Gates Foundation, and the Swedish

Government

A Global Development Alliance:

STRENGTHENING AGRICULTURAL INPUT AND

OUTPUT MARKETS IN AFRICA (SAIOMA)

COOPERATIVE AGREEMENT AID-OAA-A-12-00061

TARGET COUNTRIES

KENYA, MALAWI and

ZAMBIA

FY 2014 Annual Report

TABLE OF CONTENTS

ACRONYMS LIST............................................................................................................................................ 3

1. INTRODUCTION................................................................................................................................... 4

2. PROGRAM MANAGEMENT .................................................................................................................. 5

3. PROJECT RESULTS BY OBJECTIVES ..................................................................................................... 8

3.1 Objective 1: Improved Agricultural Production.................................................................................. 8

3.2 Objective 2: Improved Access to Markets........................................................................................ 15

4. CHALLENGES ....................................................................................................................................... 20

5. LESSONS LEARNED ............................................................................................................................. 21

6. ORGANIZATION AND STAFFING .................................................................................................... 22

7. FINANCIAL REPORTING..................................................................................................................... 23

8. ANNEXES.............................................................................................................................................. 24

ACRONYMS LIST

ACE Agricultural Commodity Exchange

AFO Administrative and Finance Officer

AGMARK Agricultural Market Development Trust

AGRA Alliance for a Green Revolution in Africa

AO Agreement Officer

AOR Agreement Officer Representative

BFS Bureau for Food Security

BMGF Bill & Melinda Gates Foundation

CCIA Cooperative Consultancy and Insurance Agency

CGA Cereals Growers Association

CPI Capacity Performance Index

FO Farmer Organization(s)

FOSUP Farmer Organization Support Programme

FtF Feed the Future

FUM Farmers Union of Malawi

GDA Global Development Alliance

GSDA Gender and Social Diversity Assessment

Ha Hectares

ICRW International Center for Research on Women

Kgs Kilograms

M&E Monitoring and Evaluation

MOU Memorandum of Understanding

MPI Markets, Partnerships and Innovations [office]

NASFAM National Smallholder Farmers’ Association of Malawi

RUMARK Rural Market Development Trust

SAIOMA Strengthening Agricultural Input and Output Markets in Africa

SHF Smallholder farmer

USAID United States Agency for International Development

USG United States Government

COUNTRY Male agro-dealers

trained

Female agro-dealers

trained

Total agrodealers

trained Country

Kenya 70 66 136

Malawi 119 19 138

Zambia 191 76 267

TOTAL 380 161 541

Country Quantity of Seed (tons)

Kenya 162

Malawi 1130

Zambia 158

TOTAL 1,650

Country Quantity of Fertilizers in tons

Kenya 1,851

Malawi 177

Zambia 216

TOTAL 2,244

Number of Farmers

Number of farmers applying

promoted technologies

Male 3,393

Female 1,534

Total 4,927

Technology type

Marketing and distribution 4,927

1. INTRODUCTION

Strengthening Agricultural Input and Output Markets in Africa (SAIOMA) is a Global Development

Alliance between the United States Agency for International Development (USAID), the Alliance for a

Green Revolution in Africa (AGRA), the Bill & Melinda Gates Foundation, (BMGF) and the Swedish

Ministry of Foreign affairs with a mission of promoting inclusive agricultural growth in selected African

countries, namely Kenya, Malawi and Zambia.

Supported by USAID under cooperative agreement number AID-OAA-A-12-00061, this Feed the Future

(FtF) initiative runs from September 30, 2012 through June 30, 2016. SAIOMA’s primary beneficiaries are

rural smallholder farmers, and its approach fosters partnerships among local implementing partners with

complementary social, agricultural and business skills, whose collective expertise will promote food

security and farmer incomes in Africa. The project specifically targets four high-potential agricultural value

chains in each project country, which include grains and legumes.

SAIOMA uses farmer organizations as the main platform for technology and knowledge transfer to

smallholder farmers, and is designed to improve operational capacities of farmer organizations, with a

specific focus on developing women’s skills and opportunities in agribusiness. Based at AGRA’s

headquarters in Kenya, SAIOMA is implemented through in-country partners. It achieves its goals through

the following specific objectives:

SO1: Improve agricultural production – interventions focusing on increasing smallholder farmers’

access to agricultural inputs. Specifically, the project works to strengthen the network/outreach of

agro-dealers to provide agricultural inputs and technical information to smallholder farmers thereby

increasing availability and distribution of improved seed varieties. SO2: Improve smallholder farmers’ access to

markets – project activities improve the adoption of post-harvest management practices by smallholder

farmers (SHF), and improve marketing structures and linkages for SHFs (ex. business to business meetings,

training in contract negotiation, improved storage facilities, and facilitation of transportation

arrangements).

This report covers the period from October 01 2013 to September 30, 2014, which represents the first

year of sub-project implementation, after USAID’s approval of sub-awards for Kenya, Malawi and Zambia

project activities, in November 2013. Key accomplishments during this reporting period include:

Submissions of FY2014 sub-award work-plans to USAID in January 2014, execution of project

baseline studies in all three countries by USAID-approved contractors, launching of SAIOMA in all

project countries with bi-lateral missions, finalization and approval of grant manual addendum for the

execution of micro-grants by sub-recipients, submission and approval of the Pesticide Evaluation

Report and Safer Use Plan (PERSUAP), and internal review of SAIOMA by all implementing partners.

Farmer organization profiling, mobilization of farmers into groups and beneficiary identification in

project locations.

Training of agro-dealers, micro-grant support for start-up agro-dealers, and establishment of field

demonstrations and farmer field days aimed at promoting improved inputs and good agricultural

techniques as well as promoting agro-dealer businesses.

Improved relations in targeted agricultural value chains through coordination of business to business

meetings and facilitating linkages between agro-dealers, input suppliers and financial institutions.

Establishment of linkages between hub agro-dealers and retail and start-up agro-dealers, and

between hub agro-dealers and seed companies/input suppliers. Facilitating linkages between hub

agro-dealers and financial institutions for access to loans.

Training farmers in post-harvest crop management techniques, improved storage practices and

warehouse management, which resulted in increased application of improved technologies and

inputs by smallholder farmers.

Famer training in contract negotiation and transportation arrangements. Training of

farmers within FBOs in governance and organizational skills as well as assistance to

participating farmers in crop aggregation and collective crop marketing.

2. PROGRAM MANAGEMENT

Sub-award Approvals – The three sub-wards to SAIOMA consortia implementing partners in Kenya,

Malawi and Zambia were approved by USAID in November 2013. Subsequently, grant agreements were

signed with consortium lead partners: AGMARK, Nutri-Aid Trust and RUMARK to implement the project

in Kenya, Zambia and Malawi, respectively. All the sub-awards run from November 2013 through May

2016.

The Kenya consortium comprised of AGMARK, Cereal Growers Association (CGA), the International

Center for Research on Women (ICRW), and the Cooperative Consultancy and Insurance Agency Ltd

(CCIA). In Malawi, the consortium is made up of the Rural Market Development Trust (RUMARK),

Agriculture Commodity Exchange (ACE), National Smallholder Farmers’ Association of Malawi (NASFAM)

and the Farmers Union of Malawi (FUM). In Zambia, Nutri-Aid, Frontier Associates and the Farmer

Organization Support Program (FOSUP) make up the consortium.

Baseline Studies – Following USAID’s approval, the project contracted IPSOS to conduct the baseline in

Kenya, the Lilongwe University of Agriculture and Natural Resources (LUANAR) in Malawi and Rubicon

consultancy in Zambia. The selected consultancy firms worked with AGRA’s M&E officers to standardize

and subsequently administer data collection tools, namely separate questionnaires for each of these

respective groups: households, agro-dealers, focus groups, and farmer based organizations. This study was

conducted in the first quarter of the fiscal year.

Project Launches – During the present

reporting period, the SAIOMA project was

officially launched in the three target

countries. These events brought together

project stakeholders including farmer

organizations, government officials, and

USAID implementing partners. Key guests

were the Permanent Secretary from the

ministry of agriculture in Zambia, Dr.

David Shamulenge and USAID Zambia

Economic Growth Team Lead, Dr. Anna

Tons. The project launch in Malawi took

place in Lilongwe in February 2014. The

key guests were USAID Malawi Deputy

Economic Growth Team Lead, John Edgars

and AGRA Market Access Director, Anne

Mbaabu. In Kenya, the launch was also held in the same month. Main speakers at the launch included

Special Advisor on Agriculture to the President of Kenya, Dr. James Nyoro, Stephen Fondriest USAID

AOR, Dr. Millie Gadbois, the FtF Coordinator at USAID Kenya and Jane Karuku, AGRA’s President

Inception Workshops – SAIOMA conducted inception workshops with the implementing partners in

each project country. In these week-long workshops, AGRA staff introduced various requirements under

SAIOMA, in the areas of financial compliance and reporting, environmental compliance, as well as

monitoring and evaluation. The workshops also covered other details of the grant award letter to enhance

grantees’ readiness for successful project implementation.

Grant Manual – The SAIOMA project team worked with AGRA’s grant unit to amend the project’s

grant manual to include sections for the administration of micro-grants by sub-recipients for the

rehabilitation of storage facilities, for start-up agro-dealers, and for warehouse management. USAID

approved this amendment in FY 2014.

PERSUAPs – The project hired a consultant to finalize the project’s Pesticide Evaluation Report and

Safer Use Plan (PERSUAP). This document was approved by USAID’s Bureau Environmental Officer (BEO)

on September 15, 2014.

Changes in Implementing Partners’ Consortia – In Kenya, one of SAIOMA’s implementing

partners, ICRW withdrew from the consortium after the grant had been awarded. Following this

withdrawal, AGRA worked with project implementers to revise the Kenya sub-award budget, to replace

ICRW with short term technical assistance. USAID approved this budgetary amendment.

In Malawi, AGRA proposed to change the lead partner of the consortium after determining that the lead

partner RUMARK had lost too much capacity to fulfill this role’s requirements. This was following the

departure of RUMARK’s Managing Director on extended leave due to his involvement in the political

campaigns. NASFAM replaced RUMARK as the lead partner of the Malawi consortium, with RUMARK

only focusing on agro-dealer related work.

In Zambia, the consortium’s budget was amended to cater for the purchase of project vehicles rather than

the lease arrangement originally envisaged, due to value-for-money considerations.

Key Project Staff Transition – AGRA’s SAIOMA Administrative and Finance officer, Stephen Migwa

resigned from the position in February 2014. Antonny Kavinguha replaced him.

USAID AOR Visit to Kenya -During his working visit to Kenya, Steven Fondriest, USAID’s

SAIOMA AOR participated in the project launch and conducted a field visit to Meru with SAIOMA

management team, to familiarize himself with the project operating environment. Mr. Fondriest also

worked with the project team to identify emerging issues that required management action by AGRA and

USAID.

SAIOMA Annual Review Meeting -In September 2014, SAIOMA organized an annual review meeting,

with a view to critically analyzing FY 2014 project implementation, sharing experiences, discussing

challenges and charting a common way forward for FY 2015. Incoming AOR, Gloria Kessler participated in

the last 2 days of the meetings. Gloria met all the project grantees and learnt of SAIOMA activities in the

target countries. She also conducted a field visit in the central province of Zambia.

3. PROJECT RESULTS BY OBJECTIVES

3.1 Objective 1: Improved Agricultural Production

SAIOMA interventions under this objective seek to enhance the availability of agricultural inputs and

promote good agronomic practices needed for market participation, primarily through rural agro-dealers.

The theory of change here is that when producers use improved agricultural inputs and improved

agronomic practices, they will increase their yields and incomes. Demand creation activities for agricultural

inputs such as field days and demos are therefore important both for the development of agro-dealer

businesses, as well as for farmer adoption of improved inputs and practices.

During this year, the project identified the agro-dealers and hub-agro that will work on the project.

Furthermore, SAIOMA held field days where agro-dealers advertised their inputs and other yield

enhancing technologies to their potential clients (farmers). The achievements by country are as follows:

3.1.1 Intermediate Result 1.1: Increased men and women smallholder farmers’ access to

agricultural inputs

Outcome Indicator: Percentage change of agro-dealers trained in technical and business management

The project trained a total of 541 agro-dealers across the three countries in FY 2014. The agrodealers

received technical training focusing on product knowledge and safe use of seeds, fertilizers/manure;

product handling during transportation, storage and application measures and business management skills

such as managing working capital, managing stocks, sales and marketing, basic record-keeping, cost and

pricing, and managing business relationships. At baseline, 41% of agro-dealers in the project area had

already been trained. In FY 2014, the target was to increase this proportion to 53%. After training of 541

agro-dealers, 65% of the agrodealers in the project area are now trained, representing an achievement of

124% of the target.

The major reason for surpassing the set target is the strategy that was set by the project to increase

number of trainings in FY2014 in order to allow for more time to monitor how the agro-dealers will

operate in FY2015 and FY2016. The project trained 380 males and 161 female agro-dealers in the present

reporting period.

Table 1: Agro-dealers Trained in FY2014

In Kenya, the project trained a total of 136 agro-dealers in FY 2014; 66 females and 70 males. The annual

target was 40% while the achievement was 68%, representing 170% achievement of the target. In Malawi,

the project trained a total of 138 agro-dealers in the same period; 119 male and 19 female. The target was

to train 55% of targeted agro-dealers while the achievement represents 39% of the targeted agro-dealers

trained. This corresponds to an achievement of 71% of target, which was due to a slow start of activities

in Malawi, partly caused by the change in the consortium’s lead role. In Zambia, a total of 267 start-up

agro-dealers (76 female and 191 male) were trained. The project achievement translates to 89% of

agro-dealers trained out of a target of 63%, representing an achievement of 141% of the annual target.

Output Indicator: Number of agro-dealers supported with grants to establish input shops

Aimed at helping to stimulate quick business growth among trainee agro dealers, micro grants are

provided for the renovation of shops to bring them to recommended standards by improving ventilation in

the interior, business branding, shelving amongst other improvements. This grant is available only to those

agro-dealers who have received business skills trainings and it is advertised to prospective beneficiaries

during the various business management training sessions.

In FY2014 the project administered grants to 73 agro-dealers, from a target of 37 agro-dealers. This

corresponds to an achievement of 197%. The major contribution for surpassing the set target was the

revised strategy adopted by the project team in Zambia which reduced the average amount given per

grant from $1000 to a maximum of $300. The breakdowns of these achievements per country are as

follows:

The Kenya target for FY 2014 was to provide micro-grants to 15 agro-dealers. However, the project did

not manage to award any micro-grants during the reporting period due to lengthy identification and due

diligence processes. Micro-grants will be awarded in FY 2015. The Malawi project targeted to provide

micro-grants to12 agro-dealers. The project administered microgrants to six agro-dealers, who managed

to meet the required milestones. This corresponds to an achievement of 50% of the target; the other 50%

will receive the grants in FY 2015. The Zambia partners provided micro grants to 67 agro-dealers from a

target of 10 agro-dealers, representing an achievement of 670% of the target. This was attributable to the

fact that the project reduced the amount of the grants to each grantee, who in turn required the

agro-dealers to put more of their own investments.














FtF Feed the Future




Ha Hectares


Kgs Kilograms











trained

Female agro-dealers

trained

Total agrodealers

trained Country

Kenya 70 66 136

Malawi 119 19 138

Zambia 191 76 267

TOTAL 380 161 541


Kenya 162

Malawi 1130

Zambia 158

TOTAL 1,650


Kenya 1,851

Malawi 177

Zambia 216

TOTAL 2,244

Number of Farmers



Male 3,393

Female 1,534

Total 4,927

Technology type


Post-harvest handling and storage practices 4,927

Output Indicator: Number of agro-dealer hubs developed

The project strengthens and deepens agro-dealer networks as a means of improving input availability to

smallholder farmers. While start-up/retail agro-dealers are generally not yet well established, do not have

strong links with seed suppliers and do not access inputs on credit, hub agro-dealers can ably fulfil these

roles. These hub agro-dealers are able to advance small amounts of inputs on consignment basis to

start-up agro-dealer retailers. The project works with existing agro-dealers to serve or further develop as

hub agro-dealers, by linking them up with retail and start-up agro-dealers, thereby strengthening the input

supply chain. These hub agrodealers were trained in various modules including: agro-dealer business

growth strategies, agrodealer retail pricing strategies, business planning for agro-dealers, customer service,

advanced financial management, retail store management and strategic planning for hub agro-dealers.

In FY2014, the project developed 36 agro-dealer hubs from a target of 34, representing an achievement of

106% of the target. The breakdown on achievement per country is as follows:

In Kenya, the project identified and developed ten (10) hub agro-dealers from a target of five (5),

representing a 200% achievement of the target. Malawi identified 25 agro-dealer hubs for training

however, no hubs were actually developed. The project is using an approach were the training participants

pay a nominal fee to participate in the trainings. Payment of a contribution fee is a key aspect of this

project as it enforces the business principles that are the essence of this project. It is expected that

agro-dealer hubs that pay a fee (however nominal) will be more committed and participate actively in the

project. Furthermore, they will expect and demand that they get a good service from the trainers hence

improving the effectiveness of the project. Training for these agro-dealer hubs is planned for FY2015.

The project developed 26 hub agro-dealers against a target of nine in Zambia. This represents a 288%

achievement of the target. This achievement is attributed to the fact that the project adjusted its strategy

in order to develop more hub agro-dealers in the first year to allow for more monitoring and support in

FY2015. As a result of project-facilitated linkages, hub agrodealers accessed as much as 15 tons of seed

from seed companies on credit. The hub agrodealers were also trained in output marketing in order for

them to participate in crop aggregation. As a result, hub agro-dealers have increasingly started to

aggregate crops and establish forward linkages with commodity buyers for output crop marketing

purposes.

Output Indicator: Number of agro-dealers accessing credit from commercial banks

The project’s aim was to assist two (2) hub agro-dealers to get credit. Three (3) hub agrodealers received

loans representing 150% achievement of the target. The achievement was realized in Kenya due to

favorable interest rates compared to Zambia and Malawi. The loans were taken by three male

agro-dealers. The credit was for improving their input stock, and for the procurement of vehicles to

transport inputs to service the smaller agro-dealers in more rural areas.

In Malawi, high interest rates of about 40% made it difficult for agro-dealers to access bank loans especially

as agro-input gross margins range from 6 to 10%, as a result. None of the agro-dealers acquired credit

from commercial banks. The Zambia activity did not plan to link agro-dealers to financial institutions in the

first year of the project.

Output Indicator: Quantities (tons) of improved seeds sold by agro-dealers (cumulative)

A total of 1,650 tons of improved seed were marketed by project-trained agro-dealers in FY2014 against a

target of 11,093 tons. This 15% achievement of the target is due to the fact that most seed sales take place

in the months of October and November annually. With SAIOMA sub awards signed in November 2014,

project activities started after the main seed sales’ seasons, thereby missing many potential sales. The

breakdown of this indicator per country is as follows:

Table 2: Quantities of seed sold by project supported agro-dealers

The

Kenya

activity recorded 162 tons (60%) of the targeted 270 tons. This was possible because Kenya has two

agricultural seasons therefore, these sales represent one of the two seasons. In Malawi, the project

recorded sales of 1,330 tons of improved seed in FY2014 against a target of 10,000 tons. It is worth noting

that agro-dealers were only trained in good record keeping in February 2014, when most of the sales

were already completed. In Zambia, SAIOMA recorded sales of 158 tons of improved seeds by

project-trained agro-dealers, from a target of 823 tons. The project trained agro-dealers in record keeping

after the main season of seed sales.

Output Indicator: Quantities (tons) of fertilizers sold by agro-dealers (cumulative)

The project recorded a total of 2,244 tons of fertilizers by project-trained agro-dealers in FY2014, against

a target of 22,040 tons. Again, most fertilizer sales take place in the months of October to November

annually, therefore project activities started after the main period of fertilizer sales. The breakdown of this

indicator per country is as follows:














FtF Feed the Future




Ha Hectares


Kgs Kilograms











trained

Female agro-dealers

trained

Total agrodealers

trained Country

Table 3: Quantities of fertilizers sold by project supported agro-dealers

In Kenya, project-trained agro-dealers sold 1,851 MT of fertilizers, representing 67% achievement of the

FY2014 target of 2,781 tons. The Malawi activity recorded a total of 177 tons of fertilizer sold against a

target of 18,600 tons, which represent 1% achievement of the target. This low achievement was

exacerbated by poor record-keeping by the agro-dealers before project training. The Zambia activity

achieved 216 metric tons, representing 33% achievement of the 69 MT target.

3.1.2 Intermediate Result 1.2: Improved agricultural practices among men and women

smallholder farmers

Outcome Indicator: Percent of targeted farmers in project area using improved seeds and fertilizers.

The SAIOMA Baseline conducted in FY2014 showed that 60% of farmers are using improved seed and

fertilizer. The breakdown per country on the use of seed and fertilizer is 64% in Kenya, 55% in Malawi and

53% in Zambia. This indicator will be measured in FY2015 as the project will be supporting farmers during

the planting season and will promote improved seed and fertilizer.

Outcome Indicator: Number of farmers and others who have applied improved technologies or management

practices as a result of USG support

The overall target set for this indicator was 15,500 farmers and others applying improved technologies or

management practices. 4,927 farmers were recorded to have applied improved technologies and practices.

From the total 11,534 were male and 3,393 were female. The major technologies that were adopted

include post-harvest handling techniques and value addition of harvested crops. The major reason for the

non-achievement of this target is that most of the trainings in Kenya and Malawi took place towards the

end of FY2014, after the identification, mobilization and profiling tasks.














FtF Feed the Future




Ha Hectares


Kgs Kilograms











trained

Female agro-dealers

trained

Total agrodealers

trained Country

Kenya 70 66 136

Malawi 119 19 138

Zambia 191 76 267

TOTAL 380 161 541


Kenya 162

Malawi 1130

Zambia 158

TOTAL 1,650


Kenya 1,851

Malawi 177

Zambia 216

TOTAL 2,244

Number of Farmers



Male 3,393

Female 1,534

Total 4,927

Table 4: Farmers applying improved technologies

The breakdown of results per country is as follows:

Kenya: 394 farmers from a target of 6,000 used improved technologies in post-harvest handling practices

and value addition of harvested crops. This represents 7% achievement of the target. Out of the 394

farmers, 203 were male and 191 were female. Malawi: a total of 181 farmers (77 Male and 104 female)

applied project-promoted technologies in FY2014. The annual target was 5000 implying an achievement of

4% of the target. Zambia: 4352 farmers were recorded to have adopted the use of improved technologies

from a target of 4,500. This corresponds to 97% achievement of the target.

Output Indicator: Number of rural households benefiting directly from USG interventions

A total of 22,257 households benefited from USG interventions in FY2014 against a target of 37 000

households. This achievement corresponds to 60% achievement of the target. The major reasons for the

project not achieving the target are that, it started after the agriculture season hence missing out on

reaching some beneficiaries during the planting season. Another reason is that some activities in the target

countries started off at a slow pace and gathered momentum towards the end of FY2014. The

breakdown of the results per target country is as follows:

In Kenya, 1397 households benefitted from SAIOMA interventions i.e. trainings, market linkages to sale

agricultural produce against a target of 10,000 households. This represents 14% achievement of the target.

In Malawi, the project trained 8,735 households (138 agro-dealers, 790 lead farmers and 7,807 smallholder

farmers) in FY2014 against a 10,000 households’ target. This represents 87% achievement of the target

attributable to the lead farmer/ToT approach. In Zambia, the project reached 11,545 households against a

target of 17,000. This represents 68% achievement of the target.

Output Indicator: Number of input demonstration plots established by the project

Crop demonstration plots offer an important platform for smallholder farmers to learn key field

management issues faced by farmers with specific regard to correct application and utilization of

agro-inputs like seeds and fertilizers. In addition, these activities act as good avenues for driving business

to the agro-dealer shops, especially the smaller ones.














FtF Feed the Future




Ha Hectares


Kgs Kilograms











trained

Female agro-dealers

trained

Total agrodealers

trained Country

Kenya 70 66 136

Malawi 119 19 138

Zambia 191 76 267

TOTAL 380 161 541


Kenya 162

Malawi 1130

Zambia 158

TOTAL 1,650


Kenya 1,851

Malawi 177

Zambia 216

TOTAL 2,244

Number of Farmers



Male 3,393

Female 1,534

Total 4,927

Technology type


In FY 2014, SAIOMA project managed to establish 123 demonstration plots from a target of 84. This is

146% achievement of the target. Major reason for this achievement is that the project partners decided to

have more demonstration plots so as to reach out to more farmers. The project partnered with input

supply companies that provided all inputs for the demonstration plots. The breakdown of the results per

target country is as follows:

Working in collaboration with the agriculture input supply companies, the Ministry of Agriculture,

agro-dealers and FBOs, the project set up 12 demonstrations sites in Kenya. Each with 4 demonstration

plots, 1 per target crop (green grams, sorghum, pigeon peas and cowpeas) in a bid to increase smallholder

farmer adoption of improved technologies and best practices to increase production. A total of 48

demonstration plots were established against target of 30. This higher number was important to cater for

the four crops per site. In Malawi, the project established 37 demonstration plots against a target of 24,

representing an achievement of 154%. The Zambia activity established 36 demonstration plots against a

target of 30, representing a 120% achievement.

Output Indicator: Number of field days organized for women and men smallholder farmers per year

The purpose of the agricultural input fairs, field days and exhibitions is to improve farmer’s knowledge on

use of improved agricultural inputs, technologies and agricultural management practices. During these

events agro-dealers, seed companies and agricultural equipment vendors advertise their crop varieties and

other yield enhancing technologies to potential clients. In FY 2014, the SAIOMA project organised 100

field days against a target of 132, representing an achievement of 76% of the target. The breakdown of the

results per target country is as follows:

In Kenya, five (83%) of the targeted six field days/exhibitions were conducted by SAIOMA with 1573 (713

Male, 860 Female) smallholder farmers attending. In Malawi, the project conducted 79 field days against a

target of 120, representing an achievement of 66% of the target. 2,606 farmers attended these field days.

While in Zambia, the project held nine field days against a target of 6, representing an achievement of

150% of the target. A total of 1,217 (886 male and 331 female) smallholder farmers attended these field

days.

3.2 Objective 2: Improved Access to Markets

This objective is accomplished using farmer organizations as an entry point for project interventions.

SAIOMA facilitates linkages to formal market for participating farmers, trains farmers in crop management

techniques that reduce post-harvest losses and improves storage facilities. Other project interventions

include capacity building in crop aggregation, marketing, price discovery systems and negotiations skills.

The project employed collective marketing as a strategy to enable SHFs benefit from economies of scale

to access competitive markets and reduce transaction costs. SHFs aggregated produce through their FO’s

which were linked to large structured output markets and to agro-dealers engaged in output markets.

Outcome Indicator: Volume of agricultural produce marketed (MT)

In FY2014 project-supported farmers marketed 1,791 metric tons of promoted crops. The target for this

indicator was 22,563 metric tons. This represents 8% achievement of the target. The project did not

manage to reach the target volumes due to the fact that the project did not start working with the

farmers during the planting season by mobilizing the farmers to grow the project targeted crops. The

other reason is that project supported aggregation centres and warehouses were not ready for use during

the marketing season. The storage facilities would have been used to store the quantities required by

buyers.

Two hundred and fifty-two (252) participating smallholder farmers in Kenya aggregated and jointly

marketed 617 MT (21%) out of the 3,000 tons target. The project had not recorded tonnage by

non-group members that were aggregating as a result of project interventions. In Malawi, 207 tons, against

a target of 6,663 metric tons were aggregated and marketed, representing a 3% achievement of the target.

The project is promoting the use of warehouse receipt system (WRS) which has taken time to have

buy-in. In addition, some aggregated crop is in the WRS and has not been sold hence could not be

counted. Finally, soya beans and groundnuts production in the project areas was affected by a dry spell

that occurred during the season. In Zambia, project-supported farmers aggregated and sold 967 metric

tons of produce against target 12,900 representing 7% achievement. This produce is valued at

US$397,658.

Table 5: Crops Marketed by SAIOMA in FY 2014

Outcome Indicator: Value of

incremental sales (collected at

farm-level) attributed to FTF

implementation

The value of incremental

sales will be recorded in

FY2015. FY2014 was the first

year of project

implementation and the value of

FY2014 will therefore be

the base on which the project

will build up in the following

years. The project sold produce

amounting to $734,930

against the target of sales of $7,

908 100. The breakdown of

the sales per country was

as follows: Kenya $257,515,

Malawi $79, 755.57 and Zambia

US$397, 658. These sales were

done by a total of 4875 farmers.














FtF Feed the Future




Ha Hectares


Kgs Kilograms











trained

Female agro-dealers

trained

Total agrodealers

trained Country

Kenya 70 66 136

Malawi 119 19 138

Zambia 191 76 267

TOTAL 380 161 541


Kenya 162

Malawi 1130

Zambia 158

TOTAL 1,650


Kenya 1,851

Malawi 177

Zambia 216

TOTAL 2,244

Number of Farmers



Male 3,393

Female 1,534

Total 4,927

Technology type


Post-harvest handling and storage practices 4,927

Outcome Indicator: Percentage change in post-harvest losses

The SAIOMA project is measuring post-harvest losses at storage. The project did not manage to

rehabilitate the storage facilities therefore it was not possible to measure the loss in storage facilities.

Output Indicator: Total increase in installed storage capacity – (m3) (FTF)

During FY2014, SAIOMA was supposed to increase the storage capacity in targeted areas by 6450 m3; the

project did not complete renovations of any storage by end of FY2014. A total of 25 facilities were being

refurbished by the end of FY2014.

3.2.1 Intermediate Result 2.1: Increased adoption of improved post-harvest

management practices by men and women smallholder farmers

Outcome Indicator: Percentage of smallholder farmers adopting improved post-harvest storage practices

The SAIOMA baseline which was conducted in FY2014 showed that 28% of farmers had adopted

improved post-harvest management practices. Most of the trainings in post-harvest management took

place in the third and fourth quarter of FY2014; it was therefore not possible to measure the adoption

rates the same year as the baseline.

Output Indicator: Number of farmers trained in improved post-harvest management practices

The SAIOMA project trained 20,900 (11,762 male and 9228 female) farmers in post-harvest management

practices. The target set for FY2014 was 37, 000 farmers, representing 55% achievement of the target.

There was slow roll out in Kenya and in Zambia hence the target which was set was not reached. The

objective of the training is to increase quantity and quality of grain sold by ensuring that very little is lost

due to poor post-harvest handling.

Table 6: Farmers trained in post-harvest management practices.














FtF Feed the Future




Ha Hectares


Kgs Kilograms



The breakdown of achievement per country is as follows:

In Kenya, 1,106 smallholder farmers (11% of the 10,000 target) were trained in post-harvest handling

practices; of whom 182 were male and 924 female. In Malawi, 790 lead farmers (435 male and 355 female)

were trained as trainers of trainers (ToT) in crop post-harvest management. These have in turn trained

7,807 farmers giving a total of 8,597 farmers trained (4,243 males and 4,354 females) out of the set target

of 10,000. This represents an 86% achievement of the target. In Zambia, 11,287 SHFs (7,337 were male

and 3950 were female) were trained in post-harvest handling and warehouse management out of target

17,000, representing 66% achievement of the target.

Output Indicator: Number of improved storage facilities constructed/ rehabilitated by the project

During FY2014, SAIOMA was supposed to rehabilitate 49 storages; the project did not complete

rehabilitation of any storage by end of FY2014. There were storage facilities that were being refurbished

by the end of the fiscal year but will be completed in FY2015. A total of 25 facilities were being

refurbished by the end of FY2014.

3.2.2 Intermediate Result 2.2: Improved marketing structures and linkages for men and

women smallholder farmers

Output Indicators: Number of farmers involved in produce aggregation for contract sales per year

In FY2014 SAIOMA project mobilized 4,785 farmers to aggregate their crop against a target of 30,000

farmers, representing 16% achievement of the target. Of the 4,785 farmers, 3,330 were male and 1,455

were female. The fact that farmers in project areas have been cheated before by some output buyers

constrained the uptake of aggregate and collective marketing. Another reason for low achievement is the

farmer identification, profiling and mobilization in the first year of implementation. In Kenya, 252 farmers

(3%) out of 10,000 farmers jointly aggregated and sold produce during FY 2014. In Malawi, 181 farmers, 94

males and 87 females aggregated at satellite warehouses (communal warehouses), representing 2%

achievement of the target of 10,000 farmers. In Zambia, 4,352 farmers aggregated their crop, representing

44% achievement of the (10,000) target. 515 MT of commodity worth USD100, 000 was traded through

structured markets.

Transport Linkage Mechanisms: By taking advantage of the economies of scale through crop

aggregation, SHFs can now reduce transaction costs in transport by using one truck. The project

developed the following 3 transportation models, identified transporters and provided them with haulage

contracts:

Transporter receives payment immediately the produces reaches the market.

Transporter receives payment directly from the buyer -Stop Order facility

Transporter receives payment from the FO only when the FO has been paid. As a result of this

mechanism, the commodity is able to move from the aggregation centre to the buyer and the transporter

receives his payment.

Output indicator: Number of MSMEs, including farmers, receiving USG assistance to access loans.

In FY2014 the project linked 34 MSMEs, including farmers to access loans, from a target of 165 MSMEs,

representing 21% achievement of the target. Most MSMEs who have the potential to access loans are

agro-dealers, who get consignment of seeds and fertilizers on loan at the start of the agriculture season.

However, given the many inception activities carried out in FY2014, it was difficult for the project to

achieve the annual target. In Kenya 2 MSMEs accessed loans despite 421 being trained and linked to

financial institutions. The Zambia activity did not manage to assist project beneficiaries to access loans.

In Malawi, farmers and farmer organizations that deposited commodity into the WRS were able to access

loans using the deposited commodity as surety to the loan. A total of USD39, 953 was loaned out to 12

farmers and 3 farmer organizations. In addition, 17 agro-dealers (15 males and 2 females) acquired 999

tons of seed on loan. This achievement represented 320% achievement of the annual target (10). It was

observed that the high interest rates being charged by the banks are deterring farmers from applying for

loans in commercial banks. However, MSMEs managed to get loans from other sources as stated. These

loans were mostly provided by input companies.

Outcome Indicator: Level of women representation in leadership of FO’s

As part of the project’s gender strategy, SAIOMA promotes and empowers women to fulfil leadership

roles in FOs. In FY 2014, the project planned to encourage participating FOs to include 54% of women in

leadership. However, the FOs had 30% representation in leadership of FO by end of FY 2014 since

comprehensive gender training of the target FBOS has not happened yet due to delays occasioned by

prolonged profiling of FOs.

In Kenya, the project did not manage to collect data for this indicator since they had not completed the

CPI profiling by end FY 2014. In Malawi, the project worked with 15 farmer organizations, each with an

average membership of 606 farmers. 38% female leadership was achieved, indicating a 108% achievement

of the (35%) target. This was facilitated by extensive campaigns on the benefits of incorporating women

(and the youth) in leadership positions. These campaigns were conducted during annual general meetings

and community mobilizations. In Zambia, the project achieved its target of attaining 50% of women in

leadership in FY 2014 within profiled FOs. This is because the majority of rural farmers are women and

the communities and FOs had been sensitized on giving equal opportunities to women in governing the

FOs. The project contributed to this achievement through sensitization, and training done for the FOs in

governance and leadership, where there was a deliberate continued sensitization of Gender issues for the

FOs.

Outcome Indicator: Level of Youth representation in leadership of FOs

SAIOMA also promotes and empowers youth to fulfil leadership roles in FOs. In FY 2014, the project

planned to encourage participating FOs to include 24% of women in leadership. However, the FOs had

16% representation in leadership of FO by end of FY 2014 as follows:

Kenya: Not yet determined since comprehensive training of the target FBOS was yet to commence by the

end of the first year owing to delays occasioned by prolonged profiling of FOs and access to funds. The

capacity performance index (CPI) of the target groups will be conducted in the first quarter of the second

year of the project. Malawi: The plan for the year was to have 7% of youth inclusion in leadership position

in all farmer organizations. In FY 2014, 29% of participating FOs had youth in leadership positions,

indicating a 414% achievement of the target. For Zambia, the target for FY2014 was 5% of youths to be

represented in FO leadership positions, and the project has achieved 15% of youths in leadership

positions.

After the FO trainings especially in leadership and governance, the FOs have made deliberate efforts to

include youths in the leadership positions and this is contributing to the high achievement rate.

Outcome Indicator: Proportion of target FOs whose capacity performance index (CPI) has improved

In FY 2014, the project collected baseline data for the capacity performance index. The data collected

helps to understand the challenges that FOs face and subsequently to design tailored trainings for

participating FOs, to address identified challenges. After trainings and have been conducted, the project

will monitor how the FOs perform over a few months before another measurement of the CPI

conducted.

4. CHALLENGES

The complex nature of this integrated project, the inherent challenges of coordinating several

partners’ activities and capacity limitations of implementing partners constituted significant

constraints to project roll-out.

Most implementing partners need capacity strengthening particularly in monitoring and

evaluation skills.

The potential withdrawal of the key sorghum buyer East Africa Breweries Limited (EABL) in

Kenya due to high excise tax levied on beer brewed using sorghum is affecting the volume

aggregated and sold jointly as smallholder farmers are shying away from planting the crop since

they are not assured of a market.

The withdrawal of ICRW from the Kenya consortium and the subsequent long process of

replacement delayed the implementation of gender activities in the country, while the change of

lead partner in Malawi led to delayed implementation of activities.

The revenue collection laws governing certain target counties in Kenya where the project is being

implemented are impeding the SAIOMA demand creation activities (exhibitions/ field days/input

fairs). The levies are unclear, numerous and costly.

The practice of collective marketing is new in parts of Machakos and Kitui counties in Kenya.

Some smallholder farmers have had unpleasant experiences with agents who defrauded them.

5. LESSONS LEARNED

a) Interventions linking SHFs to formal markets have to be designed to meet the requirements of

individual buyers. For instance, selling to the World Food Program (WFP) requires farmers to

adhere to strict requirements (e.g. grain quality inspection, re-bagging). This means the process

takes a long time and there maybe additional costs for the farmers to meet the required standards.

The price must justify the cost of aggregation and collective marketing.

b) Engaging input supply companies in setting up demonstration plots helps to have more numbers of

demonstrations as input suppliers use this platform to market various inputs.

c) The use of agro-dealers as buyers is one way of creating sustainable market opportunities for

smallholder farmers as agro-dealers have a permanent presence in these communities.

6. ORGANIZATION AND STAFFING

7. FINANCIAL REPORTING

8. ANNEXES

1) Indicator Performance Tracking Table (IPTT) 2) Environmental Mitigation and Monitoring Plan

(EMMP)

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