Linking Small Farmers to Markets in COMESAPresentation ByJulius Mathende

On Behalf of

Dr Cris Muyunda (CEO)Chief Executive Officer

Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA)

At the AGRITEC ID-EMRC International Business Forum Held in Lisbon, Portugal from 20-21 January 2011

OUTLINE

• Objectives of ACTESA

• Key Result Areas of ACTESA

• Commodities of Focus

• Mechanisms for Linking Farmers to Increase Productivity

GENESIS OF ACTESA

• Specialised Agency of the CommonMarket for Eastern and SouthernAfrica (COMESA)

• Launched in Sept 2008

• Endorsed by the COMESA Heads ofStates in June 2009

• Funding: USAID, EU, AUSAid, W Bank

•

OBJECTIVES OF ACTESA

• Improving the Policy Environment and Competitiveness

• Building Capacity for Market Expansion and Service Provision

• Integrating Farmers into Markets

• GOAL-Higher productivity & Incomes

The Productivity Challenge: 2005, Crop Yields (MT/ha) –

COMESA vs Global

Crop COMESA GLOBAL

Average

Global Best

Maize 1.39 4.47 11

Rice 1.12 3.84 10

Wheat 1.38 2.66 5

Sorghum 0.67 1.30 4

Millet 0.47 0.82 4

Potatoes 7.46 16.45 30

Sweet

Potatoes

4.29 13.49 40

Cassava 8.18 10.76 60

Beans 0.60 0.70 3

KEY ASPECTS IN ACHIEVING & SUSTAINING PRODUCTIVITY GAINS

• LINKING FARMERS TO INPUTS, OUTPUTS &

FINANCIAL MARKETS

Market Access

• PROVIDING APPROPRIATE TECHNOLOGY

AND SERVICE PROVISION

Research and Extension

IMPORTANCE OF ESTABLISHING A DEDICATED INSTITUTION TO ADDRESS ISSUES OF SMALLHOLDER FARMING AT

REGIONAL LEVEL - ACTESA

• USD20 billion is spent by COMESA Member

States on food imports

• Only USD 0.2 billion sourced from among M/S

• Great opportunities for trade – ACTESA to

ensure smallholders, traders, processors,

market institutions realize/take these

opportunities

IMPORTANCE OF ESTABLISHING A DEDICATED INSTITUTION TO ADDRESS ISSUES AT REGIONAL LEVEL CONTD.

• Average Fertiliser usage is less than 10kg/ha

and COMESA Member States committed to

increase usage to 50kg/ha by 2015

• Usage of improved maize seed in the region is

less than 30 per cent and COMESA Member

States committed to enhance usage and trade in

seed

• Inputs Market Development a Prerogative -

ACTESA to spearhead

IMPORTANCE OF ESTABLISHING A DEDICATED INSTITUTION TO ADDRESS ISSUES AT REGIONAL LEVEL CONTD.

• Farmer’ and Input suppliers access to credit

constrained

• Poor infrastructure - high input costs and low

output competitiveness

• Limited funding of research and extension

activities constrains technological innovation –

commitment to increase budgets for research

• Underscores importance of promotion of PPPs

through ACTESA

IMPORTANCE OF ESTABLISHING A DEDICATED INSTITUTION TO ADDRESS ISSUES AT REGIONAL LEVEL CONTD.

• Barriers to trade (tariff and non tariff esp. TBTs)

• Inconsistencies and lack of transparency in

policies - high production and marketing risks

• Underscores importance of continuously working

on trade policy issues to expanded agric

markets remain open as does ACTESA through

Agric Ministerials, COMESA Policy Organs

meetings, Tripartite (COMESA,SADC, EAC )

trade negotiations

MAJOR ACTESA PROGRAMS

COMRAP: Services/Inputs

SMART - FS

AAMP: Policy/Markets

Biotechnology & Biosafety (Biotech)

Livestock & Fisheries

WFP P4P

1. COMESA REGIONAL AGRICULTURAL INPUTS PROGRAM (COMRAP)

EC FOOD FACILITY

SEPTEMBER 2009 – AUGUST 2011

COMRAP COMPONENTS

• Finance: Capacity building for Financial Sector and Weather Indexed Insurance Promotion (MicroEnsure)

• Agro Dealer Network: Inputs Market Development –strengthening input supply systems (IFDC)

• Seed Sector Development: Harmonisation/Rationalisation of seed policies and regulations PLUS improving national seed value chains(Seed Authorities, CGIARs)

2. Strengthening Markets and Regional Trade for Food Security

SMART- FS

MAIN OBJECTIVE:

TO CREATE A -

“TRADE AND MARKETING SUPPORT

FACILITY”

4. BIOTECHNOLOGY & BIOSAFETY PROGRAMME

• Working on Polices/Regulations, Long Term Program on BB, Facilitating the Panel of Experts, Roadmaps and Communication Strategy.

• Country by country approach in building consensus on BB policies

3. Africa Agricultural Markets Program

AAMP

• Capacity Building Program for Policy Makers, Private Sector, Journalists and other key stakeholders in agribusiness

• Creates a network of dialogue, ideas and exchange of views between the public and private sector

8. WFP P4P

• Output Market Development -Promotes procurement of Commodities from smallholders.

• ACTESA collaborating with the World Food Programme

ACTESA

Julius Mathende:jmathende@actesacomesa.org

Thank For Your ATTENTION