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Introduction IFDC

Projects & Achievements FY11

2011 – 2012 program

Lessons learned

Agenda

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Introduction to IFDCName

An International Fertilizer Development Centre .

Legal Status in Mozambique . Since 2002 in Mozambique.

Official status as Public Organization working with GOM & IAMM.

As per 01.01.12 offices at IAMM buildings in Maputo.

IFDCs Vision • IFDC works with more than fertilizer. • Vision is to build a world free of

hunger.

Long-term focus:

Improving agricultural productivity in Developing countries and enhance the profitability of farming, reduce poverty, increase the efficiency of commercial markets, restore soil fertility, and promote a healthy environment.

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IFDC’s Mission Statement

To increase sustainable agricultural productivity through the development and transfer of effective and environmentally sound plant nutrient technology and agricultural marketing expertise

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Average fertilizer use (kg/ha)

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IFDC works together in Mozambique and SSA

AFAPAGRA Agro DealersAgrifuturoBancoTerraBOMCAL – NampulaCDM / SABMillerDECA - Manica CLUSADGIS IPI

FAOIAMM / MINAGIPNIICRISATMozambique Fertilizer company

NEPADOCDI / VOCA OLAMSUNSMILEUSAIDV&M WFP

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Projects & Achievements. IFDC in Mozambique 2011

Projects 1.AIMS (Agricultural Input Marketing Strengthening in Mozambique)

2.AMITSA (Regional Agricultural inputs Marketing Information System) 3.BASIS ( Voucher measurement program)

4.MADD (Mozambique Agro-Dealer Development)

5.MIM (Maize Intensification in Mozambique (2008 – ongoing)

6.CASSAVA+ (Cassava production with SABMiller / Cerveja de Mozambique)

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1. AIMS

Objective: Activity 1. Transfer of soil fertility management technologiesActivity 2. Strengthening input supply chain and development of agro dealers in rural areasActivity 3. Input sector policy reforms and regulationsActivity 4. Strengthening MIS (Market Information Systems)Activity 5. Strengthening agro dealers trade associationsActivity 6. Fertilizer and seed voucher system for poor farmers

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Donor: USAID

Geographical area: Beira + Nacala Corridors

AIMS Achievements to date

1. Demonstrations on NPK / Urea: 802. Field days: 40 to 2400 farmer. (38% F)3. Technical handouts on fertilizer use: 5,0004. Farmers benefited from technical know how: 14,0005.Promotion of Integrated Soil Fertility Management: BC 1573 / NC 2500 Ha 6.Agro Dealers trained: BC 59 / NC 71 + Study tours for 24 ADs7.Policy on fertilizer for GoM: 1 draft completed and tabled with GoM.8. Strategic workshop with Agr. Input Suppliers. BC 2 / NC 2 9.Legalization Agro Dealers: BC and NC: Total 8 10.Seed and voucher systems: Assisted 24,960 farmers in BC/NC

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•Legend: BC = Beira corridor/ NC = Nacala corridor

2. AMITSA

Improving access to market and agricultural technical inputs information in East Africa (Burundi, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia)

Objective

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Donors: COMESA / EAC (East African Community)

AMISTSA

• Improve access to timely data and information on agricultural input markets for farmers, traders, manufacturers, etc.

• Establish business linkages among agricultural input importers from different countries and regions and international input manufacturers and traders.

• Reduce input procurement costs.• Increase the use of inputs; thereby increasing agricultural

productivity.• Improve food security and accelerate economic growth.

OBJECTIVES

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Achievements

1. Regional input prices available on fertilizers, seeds and agro chemicals.

2. See: www.amitsa.org

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Some tables on retail prices and trends fertilizer inputs. FY11

FERTILIZER CATEGORY FERTILIZER PRODUCT PESTICIDE CATEGORY PESTICIDE TYPE

Complex fertilizers [NPK] NPK 12 24 12 Fungicide Sulfur (80%)

Complex fertilizers [NPK] NPK 23 21 0 + 4S Herbicide Acetochlor

Complex fertilizers [NPK] NPK 25 5 10 Herbicide Atrazine (50 %)

Nitrogen fertilizer [N] Ammonium Nitrate Herbicide Glyphosate (360 g/l or 480 g/l IPA)

Nitrogen fertilizer [N] CAN 28 0 0 Herbicide Paraquat (200 g/l)

Nitrogen fertilizer [N] UREA 46 0 0 Insecticide Aluminium Phosphide (57%)

Phosphate fertilizers [P] DAP 38 Zn Insecticide Chlorpyrifos-ethyl (480 g/l)

Phosphate fertilizers [P] SSP Insecticide Cypermethrin (200 g/l)

Potash fertilizers [K] MAP 39 Insecticide Dimethoate (400 g/l)

Insecticide Lambdacyalothrin (50 g/l)

Insecticide Metamidofos (585 g/l)

Insecticide Volapromid

SEED TYPE

SEED PRODUCT

(VARIETY)

Bean Volta

Bean Catarina

Bean Magnum

Cowpea IT 16

Cowpea IT 18

Maize - hybrid PAN 67

Maize - OPV Matuba

Maize - OPV Mocuba

Maize - OPV Sasuma

Maize - OPV Tsanguma

Rice C463

Rice Chupa

Rice IITA 312

Rice Limpopo

Rice Melanina

Agr. Inputs measured available in Mozambique. IFDC 2011

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3. BASISObjective

•Impact of fertilizer subsidy on economic and social indicators•Demand of fertilizer react to different prices?•Adoption of new agricultural technologies more sustainable?

Options explored:

•The use of a “smart subsidy” with a multiple year subsidy decreasing over time,•The combination of subsidies with access to savings accounts with trainings that encourage farmers to save enough money from harvest to purchase fertilizer in the next planting season. (Partner: BOM with AGRA hedge funding)

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Donor: USAID through University of Michigan & AGRA with BOM.

Preliminary achievements on…

The FAO voucher program offering agro-input subsidies to progressive farmers

The savings program, which includes basic financial training, opening of savings accounts and financial incentives to open and use savings accounts

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Achievements are based on total 1;593 HHs : 351 households from Barue, 211 from Sussundenga and 1031 from the Manica district.

Different uses of the VoucherMaize 320 (32%)

Other agricultural production 57 (14%)

Not used yet 21 (5%)

Given away 0

Sold 3 (1%)

Other 4 (1%)

Total 405

Table 1: Uses of voucher among participants who received a voucher

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Won the Voucher Lottery

Total

no yes

Used Voucher on Maize

no 730 547 1277

yes 67 253 320

Total 794 800 1597

Table 2: Voucher lottery results and consequent use on maize

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•A significant number of households did not use any fertilizer during this campaign, that number reduces when we consider only those who won the voucher lottery and even more when we focus on those who received their voucher.

However, there were still 52% among the individuals who got the voucher that didn’t used any fertilizer in maize production and 70% that used less that the 100kg subsidized through the voucher.

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Some lessons learned

Other lessons learned • Late start voucher program due to organizational

problems;• Thus farmers used own money to plant and had

no reserve to pay balance voucher• Rains failed at critical period• limited know how of beneficiaries on use of

inputs on-farm• Fertilizer for maize was used for other crops

(vegetables and tobacco)• Not measured: Yields and Gross Margins.

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4. MADDGoals + Objective

Goal: Intensification of agriculture (Manica and Tete Provinces). How? Increased use of agri-inputs, adoption of best-bet crop production technologies, and enhanced business transactions of agricultural commodities in rural markets. Where? Manica and Tete provinces.

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Donor: AGRA

• Increased availability of agri-inputs (incl. Seeds) in the province through expanded and strengthened agri-input marketing chain from production / import to retail levels.

• Reduction in agri-input transaction costs and increased quality assurance.

• Increased adoption of right input use technology packages in selected agricultural areas resulting in higher yields and farm incomes.

Objectives

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INDICATORLOA TARGET [May 09-Oct

2011]LOA ACTUAL

% ACHIEVED AGAINST TARGET

REMARKS

No. ADs trained in Business Management 343 384 112

No. ADs trained in Technical knowledge 250 309 124 This increase include the lead farmers from villages surrounding the demo plot

No of demo plots established 250 225 90 This is in progressNo. companies participating in demand creation activities 34 19 56

The local companies doesn't exist in the project area

No. sessions of demand creation activities – Field days, seed fairs, exhibitions, etc.

180 225 125 Agro dealers themselves was motivated on sales and they organize some events alone without the project support

No. Farmers adopting recommended technologies under demand creation activities

150,000 177,629 118 The demos inspire the farmers

Number of agro-dealers trained in business plans. 145 140 97 No. of ADs accessing Loans/Credit facilities 90 58 64 This is in progress

No. Of ADs accessing Loans/Credit facilities through the District Trade Association under the GF - 178 -

This include the Agro dealers start-up and retailers accessing credits facilities through the District Trade Association

Volume of seed sold through project agro dealers (MT) 3,883 3,437 89

In some areas mainly affected by starvation phenomenon the adoption of the new technology are critical

Volume of fertilizer sold through projectagrodealers (MT) 5,596 5,200 93 Number in attendance at field days. 7,500 13,824 184 Number of soil samples analyzed per year. 300 300 100

Number of Agro dealers contributing to MIS data collection 25 11 44

The mobile phone introduced by AMITSA reduced the number of Agro dealers expected to contribute on the data collection

Number of District Agro dealers Trade Association created 13 13 100 This is completed

Number of Province Agro Dealers Trade Association created 2 2 100 The legalization process is in progress

RESULTS MADD. May 2009 – October 2011 - Manica & Tete

5. MIMGoal

Donors:

To demonstrate how farmers can intensify maize production where maize is produced under rain fed conditions.

Increase maize yield, production, and nutritional properties trough improved management and increased use of fertilizer, quality seed and CCPs (crop production products);

Increase incomes of smallholders and improve livelihoods by improved diets and purchasing power in rural areas trough increased access to input and product markets.

Objectives

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Details on implementation • Areas: Beira corridor:

Sofala, Manica and Tete.

• Districts: 9• Farmers Associations:

15• Farmers: 253 (Female:

35%)

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Activities MIM 2011

1. Land preparation methods.2. Planting times.3. Methods of planting and planting

density.4. Fertilizer applications and different

types of fertilizer. Not just NPK & UREA, but also Zn, S, Mn.

5. Weed control in Maize.6. Evaluation of vegetative

development of maize.

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Treatments

T1 Farmer saved seed without fertilizer application;T2 Farmer saved seed with 50 Kg/ha of NPKS (12:24:12:6) as basal fertilizer and 50 Kg/ha of Urea (46%N) as top-dressing fertilizer;T3 Farmer saved seed with 100 Kg/ha of NPKS (12:24:12:6) as basal fertilizer and 100 Kg/ha of Urea (46%N) as top-dressing fertilizer;T4 Hybrid (PAN 67) without fertilizer application;T5 Hybrid (PAN 67) with 50 Kg/ha of NPKS (12:24:12:6) as basal fertilizer and 50 Kg/ha of Urea (46%N) as top-dressing fertilizer;T6 Hybrid (PAN 67) with 100 Kg/ha of NPKS (12:24:12:6) as basal fertilizer and 100 Kg/ha of Urea (46%N) as top-dressing fertilizer.

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Results• Hybrid PAN 76 applying 100 Kg/ha of NPKS (12-24-12-6) and 100 Kg/ha

of Urea (46% N);• Gross margins under the AIMS (USAID funded) program G/M found in

Nacala were.

Beira corridor yield and Gross Margins AIMS FY11

Yields Kg/Ha

Gross Margins MZM

T1 – Maize Matuba without fertilizers (0.0 kg N/ha + 0.0 kg P/ha) 1,315 -342.5T2 – Maize Matuba + fertilizers rate (100 kg NPK/ha + 100 kg urea/ha) 2,401 2430.5T3 – Maize PAN 67 without fertilizers (0.0 kg N/ha + 0.0 kg P/ha) 1,605 502.5T4 – Maize PAN 67 + fertilizers rate (100 kg NPK/ha + 100 kg urea/ha) 3,155 5827.5

Nacala corridor yield and Gross Margins AIMS FY11

Yields Kg/Ha

Gross Margins MZM

T1 – Maize without fertilizers (0.0 kg N/ha + 0.0 kg P/ha) 1,1165 -625T2 – Maize + half of recommended fertilizers rate (50 kg NPK/ha + 50 kg urea/ha) 2,1895 2220T3 – Maize PAN 67 + fertilizers rate (100 kg NPK/ha + 100 kg urea/ha) 3,0225 3945T4 – Cowpeas/Peanuts/Soybeans + 9 kg P/ha 0,9295 -952.5

6. CASSAVA+

• Objective •Production of starch for flour and beer replacement and

• Production of healthy virus free cassava in Nacala corridor

•Success based on implementation in Nigeria.

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Donor: Private and possible Foreign Government donor funds/Dutch

Partners: DADTCO, CAL, IFDC, SABMiller/CDM

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AMPU in Ribaue: DADTCO, IFDC, CAL November: 2012. Production: 5 Mt/Hr to make from roots “cake” for CDM / SABMiller.

Role of IFDC in Cassava+• Technical assistance to plant virus free varieties

released by IAMM in Nampula

• Baseline study of place of cassava in household economy

• Assistance to CAL (Corridor Agriculture) to train + produce rapidly improved cassava vegetative planting material

• Training in three locations 1,500 farmers in improved ISFM (Cassava / Pigeon Pease / Cow Peas. )

• Link agro dealers with framers to use inputs to increase production of cassava p/Ha.

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Nursery for 750,000 plants for rapid multiplication of improved cassava Var’s from IAMM/Nampula

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Opportunities for the Fertilizer industry and Seed in a changing agricultural landscape in Africa

7. Conclusions and Discussion

• Private sector driven

• Collaborate with Research (Platform/IAMM/PPP)

• Markets for outputs exist and develop more

• Entrepreneurship of all actors + Farmers organized

• Best agricultural practices available

• Focus on inputs accessibility and dealer networks

• Access to finance (BOM)

• Market information available and most important…

• Focus on Private sector through PPP

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Elements of success by IFDC in Mozambique

Plans for 2012 1. AIMS - Ending September 2012. 2. AMITSA - Ongoing3. BASIS – 2nd survey: July – Aug – Sept 20124. MADD. - MADD I ending April 2012. New

proposal for MADD II for 4 x districts in Sofala and 3 districts in Zambezia. AGRA to confirm funding.

5. MIM - Ongoing6. CASSAVA+ - Expanding to Beira corridor and

Inhambane – depending on funding7. 2 SCALE: - Optional. Start in Central and North to

assist “chain leaders”.8. SEED: - Develop project to introduce Hybrid

seeds exposure through agro dealers.9. Pigeon Pea - Collaborate with SNV to produce P Peas in

Tete through IFDC agro dealers network.

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Way forwards for Platform 1. Collaborate & strengthen IAMM on capacity building

(strategic, technical and commercial through projects on fertilizer / seed and other input uses )

2. 3 monthly In-depth meetings on sector subject matter and cross-over synergies on fertilizer / seed / gross margins of crops

3. Focus on a commercial approach toward solving Food Security and Livelihoods issues. i.e. Agro dealers, Credit on farm demonstration of crops, seed production, horticulture, small livestock and post harvest.

4. Involve private sector (Producers and suppliers) through PPP. (Soil labs / OMNIA?)

5. Confirm with private sector to invest in agricultural, NRM and livestock projects which complement the 4 objectives of PEDSA CAADP and FtF strategy.

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Obrigado

Thank you

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Drivers Commodity Market has to pull the change

Governments fully committed, favorable policies (See: Malawi)

Commonalities There has to be an urge (famine, market etc)

Technologies have to be available (and often are)

Infrastructure (roads, warehouses, physical markets)

Policies need to be conducive

There has to be money – financial sector support and reasonable interest rates

Mile Stone Delivery - Solutions for Africa

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What works Multiple investments are needed simultaneously

extension improvement

Private Strengthening strengthening

input market linkages, dealer development & access to finance

access to output markets

A blanket approach will often not work – better to go for 1000’s of pockets of excellence

Don’t expect change to happen overnight

Mile Stone Delivery - Solutions for Africa

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Risk factors

Volatile markets / small local markets

Policy changes – subsidies – border closures etc.

Changing product quality requirements

Climate risks

No savings offered

Offered match at regular

savings rate

Offered savings with 50% match

rate

Total

Receives agro-input

voucher 267 hhs 283 hhs 245 hhs

795 hhs

Does not receive agro-

input voucher 247 hhs 311 hhs 240 hhs

798 hhs

Total 514 hhs 594 hhs 485 hhs1593 hhs

Table 1: Sample distribution across the different treatments

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Won the Voucher Lottery

Total

no yes

Used Voucher on Maize

no 730 547 1277

yes 67 253 320

Total 794 800 1597

Table 1: Voucher lottery results and consequent use on maize

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SEED…. Not mentioned yet… but will be

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