IFDC

Realizing Agriculture Productivity Increase in Africa

Intensification through Technical and Agribusiness Innovations

Agribusiness Forum 2011

October 16-19, 2011

Johannesburg, South Africa

André de Jager

Acting Director

IFDC - North and West Africa Division

IFDC

Content

Challenges IFDC Technical Production Innovations Agribusiness Innovations Conclusions

IFDC

FOOD DEMAND = 11.5 BILLION

By 2050 dietary shifts will result in the consumption equivalent By 2050 dietary shifts will result in the consumption equivalent of about 11.5 of about 11.5 billion people billion people at 2009 diet levels. at 2009 diet levels.

Population and Food Demand

Source: United Nations Estimates

POPULATION = 9 BILLIONPOPULATION = 9 BILLION

IFDC

To meet demand, global food production must

increase by at least 70% by 2050 using less land and water resources without polluting the environment while coping with the climate change

The Challenge

IFDC

Poverty reduction and agriculture

Contribution of income sources to poverty reduction in developing countries with reducing poverty rates (OECD, 2011)

5

IFDC

Productivity and production

6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009

mt / h

a

Developed Countries

Asia Developing

Latin America

Sub-Saharan Africa

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Agro Input Markets Constraints

7

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Access to Markets

8

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IFDC-Mission

Increase sustainable agricultural productivity

Through improved plant nutrient technologies or practices

Through increased access to input markets and product markets

IFDC

IFDC intervention areas Input Markets: last mile delivery, quality and information Integrated Soil Fertility Management: environment and

productivity Agribusiness Clusters: output markets and value chains Capacity and institutions: practical skills, organization

and management Policy environment: regulations and regional integration

IFDC

Technical Productivity Innovations

Seeds: improved varieties and GMO major contribution to productivity increase

Disease and pest management: new products, IPM, biological control

Mechanization: limited innovations

Fertilizers: no R&D, no product innovations, limited implementation innovations

IFDC

2 out of 3 bags of urea go unused in wetland rice

production

IFDC

UDP technology Urea is compacted into small

briquettes—urea supergranules

Applied well below soil surface near plants’ roots

Use efficiency greatly improved because nitrogen is trapped where it is needed

Reduction in nitrogen gases lost to atmosphere

Inhibition of nitrification

13

IFDC

New developments

Virtual Fertilizer Research Center

Fertilizer Recommendations

Organic-inorganic optimization

Urban-human nutrients recycling

IFDC

Profiled and mapped over 4,000 dealers and created an electronic database

Provided technical and business training to 2,300 agro-dealers, all certified by Government of Ghana

Published a first-ever national directory of dealers

Linked trained dealers to US $1.6 m through a credit guarantee scheme

Agro-Input Dealer Development in Ghana

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IFDC

2004:Assisted about 2,000 dealers to serve 20,000 farmers in rural areas

Emergence and growth of agro-dealers in Ghana: Summary of IFDC’s direct interventions and achievements

(2002 – 2011)

2008 : IFDC trained 569 input dealers and certified by GOG

2009-11: Dealers set up 219 demos2002-

04:USAID “GAIMS” Dealer Training Project

2005 : AssistedGAIDA to become a founding member of

2003: IFDC facilitatedGAIDA formation with core group of 500 members

2004: Facilitatedopening of 390 new input shops

2008-2011: New 3-yrfunding to support GAIDA + SEEDPAG

2009: IFDC mapped3,500 agro –dealer shoplocations

2010: Published& distributed 5,000 agro –dealer directories to farmers & other s

2010-11103 GAIDA members accessed $1.5m credit from 2 banks

2011: GAIDA assisted GOG to develop regulations to implement the Plant & Fertilizer Law passed in June 2010

2011: GAIDA members trained to deploy ICT to improve operational efficiencies

Pre-subsidy period || Private – Public Partnership to implement fertilizer subsidy since 2008/09

2011: GAIDA membership increased to 1,200

2009IFPRI/IFDCDealer Survey

IFDC

Voucher Program Nigeria

Benefits Develops the Private Sector

by providing guaranteed sales in rural areas

Increases efficiency of delivering subsidies to smallholder farmers

Reduces government costs and reaches more farmers

Timely availability of fertilizers

Steps Identify target smallholder

farmers Distribute vouchers to these

farmers Farmers use vouchers to

purchase fertilizers Government honors

vouchers by payment to fertilizer suppliers

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Results Voucher Program

Reached 400,000 targeted rural smallholder farmers 94% of targeted farmers reached (11% old program) Provided $13.5 million in government purchasing-

power support Sold more than 50,000 MT through the private

sector Sold a market value of $32.7 million of mineral

fertilizer

18

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ICT and Mobile Phone applications

Access Market Information (RESIMAO, Esoko, Mfarm)

Commercialization and tracability Financial services, insurance (M-pesa, Mobile

Money, Kilimo Salama Extension (Kencall)

IFDC

Agribusiness Innovations Fertilizers

Facilitate investments in local blending Increased financing options in supply chain Agro-input dealers: last-mile-delivery,

intensification package, product and message Pooling demand of smallholders ICT application for market transparancy E-vouchers

IFDC

Conclusions

Agricultural Intensification necessary and requires targeted technical and business innovations

Public-private partnership approaches Well-functioning input and output markets Financing and risks require more attention

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For More information: www.ifdc.org