FOOD FOR THE HUNGRY ASSOCIATION

CAP DELGADO PROVINCE MOZAMBIQUE

VSL Concept for Agricultureand Nutrition Outcomes

MAPUTO SEPTEMBER 2011 

FOOD FOR THE HUNGRY ASSOCIATION

CAP DELGADO PROVINCE MOZAMBIQUE

VSL Concept for Agricultureand Nutrition Outcomes

MAPUTO SEPTEMBER 2011 

OVERAL PROGRAM GOAL (Agriculture, Health and Nutrition, Cmmunity

capacity Building)

GOAL: Food insecurity reduced in vulnerablepopulations of 3 districts in Cabo DelgadoProvince, through increased food production,acess and utilization.

General objective of the Agriculture Program

“Protect and enhance livelihood capacities of vulnerable farming households via agricultural production and marketing”

Where we workThe program is 3 districts in cabo Delgado Province-Northern

Mozambique viz:

NANGADENANGADE MOCIMBOA DA PRAIAEPALMAPALMA ,

Agriculture component

Two components:1.Improved agricultural production2.Promotion of Vilage Savings and

Loans

Challenges to commercialization in the project area

Background to the area we work:• Situated in the Northern most part of Mozambique• Poor infrastructure• 700 + Kms from major commercial town of Nampula• Commercialization of small holder produce in Cabo Delgado Province Mozambique, is an area that is todate not yet well developed. • The large buyers are mainly based in southern provinces and are usually not prepared to travel long dictances in search of produce that they are able to acess locally. • Quantities sold by individual farmers have also been too small to justify transport to and from the North.

VILLAGE SAVINGS AND LOANS (VSL) AND HOW IT MAY IMPACT ON CROP VALUE CHAINS

VSL involvement:• With the above challenges, FH MYAP program

through the Village Savings and Loans component, decided to intiate a system that would agregate produce to attract large buyers to the project area.

• A number of strong Savings Groups were approached and encouraged to come together, creat a small fund to initiate the buying of produce that they would then sell to large buyers at a small profit.

• The groups formed marketing nucleus now refered to as “MARKETING FORUM”.

VSL involvement cont:• These forum started by putting aside part

of their savings to construct temporary stores for the purpose of buying and storing produce on transit.

• FH then helped contact a number of large buyers who were then ready to come in to buy and transport significant quatities of produce that had been brought together by members of the various farmer associations.

The process adopted in establishing the Forums:

• Each district is geographically divided into 3 zones for purposes of implimentation of this activity (A,B,C);

• Each zone initiated the formation of a number of forums. The actual number is dictated by produce available, distances and capacity of the associations;

• Each forum starts off with the Savings Volunteer (Animadore) as convener who later hands over leadership to one elected Association President once the basic Forum structure is complete;

• Each Association involved in the marketing process sends in one representative to the Forum:

Association Association Association Association

Forum Forum

• Facilitate the movement of produce out of the zones

• Help aggregate small quantities of harvests and to enable the FORUM management negotiate effectively with the buyers. The centres through aggregating produce are now able to operate on economies of scale.

• This is the beginning of a future larger association building and will be encouraged to establish a permanent system. Currently both VSL and non VSL associations are involved.

Why forums?

Where does FH come in?FH currently supports the Forums incontacting buyers at peak sales period andproviding information on the following: • Estimated quantity of produce in each district,

• Prices currently operating,• Storage capacity available/quantities stored,• Location of the various stores,• Quality of produce.Direct forum association contacts is the final goal

How has this impacted on crop value chains-e.g sesame

• One of the biggest constraints farmers in Cabo Delgado are facing is acess to market among other logistical challenges.

• VSL has directly impacted the tail end of the sesame value chain in the project area thus stimulating increase in production and introduction of comparatively large scale marketing.

Typical value chain for one of the key crops

SESAME VALUE CHAIN:

Input supply PRODUCTION

Land preparation Planting Weeding

PROCESSING AND VALUE ADDITION

Pest/disease control Harvesting - Processing

MARKETING

Storage Sales/marketing

Savings status and sesame sales 2010 September:

Disrtict Savings Sales

Quantity sold (Tons) Value MTN

Nangade 564,644 77.33 2,320,080

Moocimboa Da Praia 216,185 24 619,900

Palma 161,145 19.6 588,450

Source: Quarterly report FH July to September 2010

From the above data, it is clear that income from Nangade is comparatively higher and hence savings. There is s direct corelation between improved production, savings and income.

Correlation between level of savings, quantities sold and value

Some latest commercialization results-Mocimboa Da Praia district Sept 2011

MUITO OBRIGADOMUITO OBRIGADO

KANIMAMBOKANIMAMBO

TAKUTATAKUTA

KIOCHKIOCHÚCURRURRU