Chad - Sustainable Commercial Agriculture

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A view on post 2010 development of sustainable commercial agriculture in Chad, highlighting i. the cotton sector, ii. large scale farming and iii. how to realize low cost inputs to farmers on a commercial and sustainable basis.

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<ul><li><p>CHADCincuantenaireECONOMIC FORUM SUSTAINABLE * COMMERCIAL * AGRICULTURE</p><p>Mark Terken NDjamena, 9 Jan 2011</p><p>MARK TERKEN</p></li><li><p>WHAT TO ACHIEVE</p></li><li><p>PRESENTATION OUTLINEIntroduction and background ATTRACTING INVESTMENTFarming is a businessThe conditions for successful agricultureRealize low costs of inputs, equipment, transportDistinguish food security, subsistence support, import substitution, commercial farming and agri businessCommodities i. with USP for Chad and ii. that make money to ALL value chain actors such as CottonSUSTAINABLE Cotton, Inputs, Commercial Farms</p></li><li><p>INTRO &amp; BACKGROUNDMark Terken Project Development results in Southern and West AfricaAssisting Governments, investors, banks, private equity funds in African AgricultureLook at the USP of Chad develop sustainable commercial agricultureCottonLow cost inputs and low transaction costsLarge scale &amp; Corporate farming </p></li><li><p>2. FARMING IS A BUSINESSOnly grow crops which you, your soil and your farm will grow wellBuy good seeds, follow required timing and husbandry and apply fertilizers and agrochemicals as advised Be competitive; buy inputs at low prices, work hard to obtain good yields and sell at the right time, to achieve the best priceHave sale agreements in place </p></li><li><p>GOOD YIELD POTENTIAL SOUTH CHADSource WB 2010</p></li><li><p>3. WHERE TO START &amp; TO DOROLE FOR GOVERNMENTDeliver a policy of ENABLING ENVIRONMENTPeace, no hunger, medication, education Stability and Good governance &gt; FACILITATEBalanced protectionism, consistent policiesEfficient policing, sound judiciary systemLand tenure system &amp; Investment protectionInvestment &amp; tax incentivesFacilitate in work permits for experts</p></li><li><p>4. LOW COST INPUTSZERO TAX </p><p>FACILITATE LOW COST TRANSPORT DUTY FREE TRUCKS, TYRES, SPARESCHEAP FUEL !</p><p>CREATE COMPETITION AMONGST SUPPLIES / TRADERS</p></li><li><p>5. DIFFERENT INTERESTSChads Food security &amp; Import substitution (political &amp; trade balance &amp; pricing objectives)Subsistence support to the hungry &amp; poor(Humanitarian)Emergent farming(Economy Transformation)</p><p>* Contract Farming (cotton etc) * * Commercial and Large scale Farming ** Corporate farming * (sugar etc.)</p></li><li><p>SUCCESFUL INTEGRATION</p></li><li><p>6. COMMODITY GROUPSLIVESTOCK &amp; FISH CROPS; FOOD, CASH &amp; LARGE SCALE</p><p>Livestock (Beef, Milk, Poultry, Sheep, Goat, Camel) &amp; Fish Sorghum, Millet, Yam, Cassava, Beans etc.Cotton, Groundnut, Gum, Sesame, Veg &amp; FruitSugar, Maize, Soya, Rice (Banana, Onion etc)</p></li><li><p>6.1 COTTON REFORM NOWPeaked at 265,000 ton per year FOT Value today us $ 300,000,000 ! = $ 200,000,000 to Chad farmer Now in 2009 /2010 only 35,000 ton ! ..Regain a leader position in Africa by: Consistent &amp; strong agricultural policy Attract strong foreign investors, reputable cotton ginsThey drive the industry !!! And the industry will Create competition &amp; deliver fair farm gate prices</p></li><li><p>6.2 COTTON - ACTIONHigh level Research for Seed variety developmentDeveloping latest technology and agronomy Transparent contractingOrganize farmers &amp; train 4 times per season Provide timely and adequate supply of good seed, agro chemicals (&amp; fertilizers) and implements to farmers (seasonal credit)Collect from groups and pay instant cash</p></li><li><p>7.1. COTTON INVESTMENTValue chain &amp; competitiveness studyMarket the industry internationallySelect donor support; GTZ etcLeverage government investment with support &amp; research from EU, USA, Brazil Africa; CFC, Embrapa, USDA, etc. Bring in a minimum 3 foreign ginning companies, facilitate their operations</p></li><li><p>7.2 SUPPLY CHAIN INVESTMENTInterest global fertilizer companiesAttract seed and agro chemical companiesZero tax on seed, fertilizers, agrochemicals, equipment and irrigation !!!!!Create competition</p></li><li><p>7.3 ATTRACTING FARMING INVESTORSValue chain studies for Sugar cane and Arable crops (maize, groundnut, soya, rice, etc.)With support of donor programsIdentify target areas and market to investorsOffer long term &gt; 50 year land leases to foreign investorsInvestment protection; Miga and or bi-lateralOffer tax incentives, low fuel costs etc.Sound tax policy on food imports ! AND .</p></li><li><p> REALISE COMMERCIAL FARMING</p></li><li><p> *****</p></li></ul>

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