Value Chain/Market System Development in Fresh Vegetables : SSMP Interventions

Prepared by Bishnu Kumar Bishwakarma, Sustainable Soil Management Programme (SSMP), HELVETAS Swiss Intercooperation Nepal

1. Planned Outcomes and Outputs of the Project Related with Market

Systems The Sustainable Soil Management Programme (SSMP), now in its 14th year and 4th Phase,

promotes a variety of appropriate and sustainable soil management (SSM) practices, based on

the use of local resources. Currently SSMP is operational in 7 mid-hill districts of Nepal (see

Figure below). The major objective of the project is to improve the food security and income of

women and men farmers in bari dominated farming systems of Nepal’s mid hills. The market

system related outcomes and outputs are:

2. Production and Marketing of Vegetables

SSMP provides inputs – technical, material and promoting linkages – to farmer groups to

stimulate fresh vegetable production and marketing. This has the potential to be a lucrative

option for the farmers in terms of gainful employment and household cash income generation.

Currently more than 10,000 farmers from the 7 project districts are significantly involved in this

sub-sector with annual transaction of 8,000 Mt of fresh vegetables from which 7,500 farmers

(60% Disadvantaged and 70% female) have earned more than 20,000 NRs/year/hh. In the

prevailing context of increasing outmigration of male members from the rural households, this

sub-sector shows the significant opportunity for poor and women farmers to earn cash income and retention of male members providing employment and income.

Ramechhap farmers selling vegetables at weekly

local haatbazaar, 2013

6. Project Interventions

SSMP works with the Ministry of Agriculture Development (MoAD), DoA, Ministry of Federal

Affairs and Local Development (MoFALD) and educational institutes at national level; District

Development Committee (DDCs), DADOs and Local Service Providers at the district level;

and AFECs, Experienced Leader Farmers, and farmers at the VDC and community level.

facilitates the preparation of Farmer groups marketing plans through mobilizing local

service providers and collaborating with in-house projects - LINK in the west, DADOs and

other projects in the east,

technical trainings, coaching and hands-on practical skills to the staff of local service

providers and Experienced Leader Farmers who are then provide on-farm coaching and

training to the farmers,

offers new/improved production technologies and material support to the farmers,

facilitates the linkage of farmers with existing markets and market information

collaboration with local radios, VDCs, DADOs and other actors.

7. Interventions Impacts: Expected vs. Achieved

Pro

ject

Activity

Mark

et

outp

uts

En

terp

rise

imp

act

Ma

rke

t

ou

tco

me

Required service available:

~ 400 Experienced Leader

Farmers & 150 local staff

mobilized

Regular and reliable market

information available: updates

from radio, VDCs,

Experienced Leader Farmers

Enabling environment for poor in the

markets: ~ 1,000 adopted polyhouse

technology, ~ 10,000 farmers producing

season/off season vegetables for

marketing

Training/coaching to Service

Providers (Local staff/Experienced

Leader Farmers, Local Resource

Persons), coaching FGs on sales &

marketing

Planned production system

which is market oriented: ~

500 Farmer Groups have

adopted planned

production

Increased productivity (~ 50% ),

transaction ( ~ 10,000 Mt) and efficiency

of small farmers: NRs 10-50 thousand

from 1 Ropani / year, 2-3 crops/year

Increased use of better

services by farmers: ~ 500

Farmer Groups received

services for marketing (target

750)

Better skills of Service providers =

150 trained staff in 40 Local

Service Providers, 1400

Experienced Leader Farmers, 177

Farmer groups trained (target =

250)

Market information (Local radio in each

district, Agriculture Forest and Environment

Committees, Experienced Leader Farmers

and projects), linking Farmer Groups with

existing markets

Incentives and inputs

(e.g. seeds, polyhouse,

coaching & trainings)

Improved market information

systems- Local radio in 3

districts & 32 VDC (target 60)

updating information, and 224

linked with markets (target 250)

Options for poor small farmers are

available: 17,000 (65%

disadvantaged) households

receiving inputs, ~500 Farmer

Groups prepared marketing plan

Increased income:

~7,600 farmers earned more

than NRs 20,000 /year (target

10,000)

Increased employment:

~2,000 farmers as short

term service providers,

retention of migrants

Increased investments and net

assets: better home, land and

gold purchases, children’s

education & nutrition

Imp

act

Output A2: relating to access of smallholder

households to inputs and technologies

10,000 households received vegetable or

cash crop seeds or planting materials

800 households received poly-tunnel

packages and produced off-season

vegetables

Output A3: (linking smallholder households

to market opportunities)

250 farmer groups provided coaching in

sales and marketing

250 farmer groups use existing market

and collection centres

Outcome A :

• 15,000 households (60% Disadvantaged) marketed cash crops including vegetables (worth

more than NRs 20,000 per annum).

• Inputs and incentives from SSMP to stimulate/enhance production, sales, knowledge of markets and marketing

Service Providers

Value Chain

Technical support

services:

Agriculture

Service Centre,

DADO,

Experienced

Leader Farmers,

Local Resource

Persons,

Projects

Business development

services:

Chamber of Commerce

(FNCCI),

District Agriculture

Development Office,

Department of Agriculture

(DOA), Projects, Coops,

Media (Local radios, TV),

Mobile phone services

Skills training:

Projects,

District Agriculture

Development

Office, Employment

Fund, Coops,

Farmer business

schools,

Experienced

Leader Farmers

Financial

Services:

Banks,

Coops,

Local

Farmer

group

savings

Technical support services:

Agriculture Service Centre,

District Agriculture

Development Office

(DADO),

Experienced Leader

Farmers (ELFs)/

Local resource person

(LRPs), Projects

Inputs

Market actor:

Local agro-

vets,

Coops,

local suppliers,

projects

Production

Market actors:

Individual

Farmers,

Farmer Groups

Coops

Transport

Market actors:

local bus/trucks/

Transport

associations,

individual farmers,

Coops

Processing

Market actors:

collection centres,

Coops, small

scale cottage and

large processing

industries

Wholesale

Market actors:

collection

centres,

district/

regional

collectors,

Retail

Market

actors:

local shops,

vendors,

haatbazaar

3. Value Chain / Market System of Fresh Vegetables

Level Constraints Reasons why the constraints are

persisting ?

Producer Un-planned production,

inadequate investment, lack of

information and skill, low efficiency

and productivity

Lack of business concept in farming -

traditional way of farming, lack of availability

of improved technologies and poor

information systems

Input suppliers Lack of regularity and reliability,

poor information dissemination

Lack of competition- very limited number of

Agro-vets, lack of trainings, no regular

update/estimate of demand/supply

Collection

centres/traders

Lack of trust, poor governance,

poor relationships, poor post-

harvest handling, often poorly

located

Lack of clear objectives and policies and

accountable operating systems, sometimes

vested interest, poor information systems,

technical knowledge and rapport building with

farmers

Support

services

Poor services especially in the

business sector, lack of

investment

Few investors in this sector due to high risk,

low confidence, short-term vision; mostly

centered around the periphery of the district

headquarters, lack of accountability

4. Key Constraints in the Existing Market System

5. Opportunities for Poor and Women in the Sub-sector

existence of markets: increasing market centers,

increasing demand for fresh vegetables with changing food habits,

access to markets is improving – better input supplies, information systems, extensive

and affordable mobile connections, and road networks,

increased number of service providers: District Agriculture Development Office, VDC

level Agriculture, Forest and Environment Committees (AFECs), projects, Coops,

experienced leader farmers,

enabling government policies - commercialization in agriculture, subsidies to farmers.

Facilitating farmers for

preparing marketing plan

Technical training to the

Service providers

Introduction and promotion of improved often new

production technologies for the farmers

Major project interventions at different levels related to outcomes and outputs,

expected vs. achieved results at July 2013

SSMP operational district in phase 4 (Jan 2011-Dec 2014)

Farmer growing vegetables for market,

Khotang, 2013

- showing the various actors operating in fresh vegetable market systems in the districts

At least 60 Village Development Committee (VDCs) regularly updated current produce prices at

the VDC

Prepared for the Regional Workshop on Market Systems & Value Chain

Development, 23-27 September 2013, in Ben Tre, Vietnam