mAgri Webinar: Mobile market information systems for farmers: requirements for success

Restricted - Confidential Information © GSMA 2011

Webinar - Mobile market

information systems for

farmers: requirements for

success

09.10.12

#magri

14.00 Introduction & GSMA insights

14.10 Overview: Agricultural Market Information Systems (MIS)

14.15 Impact of Market Information Systems Activities on

Market Performance in Mozambique

14.20 MIS Pre-requisites & Best Practices

14.30 Case study: Esoko Malawi

14.45 Q&A

15.00 End

Agenda


mAgri Webinar: Mobile market information systems for farmers:

requirements for success

#magri

John Zoltner, Director, Information Technology Applications Department

(ITAD), FHI 360

Expert Panel




Andrew Kizito, Lecturer, Department of Statistical Methods and Actuarial

Science, Makerere University, Uganda

Robert Turner, Chief of Party, Market Linkages Initiative, ACDI/VOCA

Malawi

Shaun Ferris, Senior Technical Advisor - Agriculture and Environment,

Catholic Relief Services

#magri

Introduction & GSMA insights


Amol Jadhav,

mAgri Project Manager,

GSMA Mobile for Development

#magri



www.gsma.com/magri


The mFarmer Initiative

Objective:

To create and scale sustainable mobile solutions enabling

over 2 million poor smallholder farmers to obtain critical

agricultural information

Vision of Success:

Improvement of poor farming households’ resilience and

decision making as a result of access to relevant

agricultural information through sustainable business

models and continuous learning.

In partnership with the Bill & Melinda Gates

Foundation and USAID



Bundled services

Partner with existing MIS

Quality assurance

Tigo Tanzania Agri VAS pilot

results (see blog at

www.gsma.com/magri)

Impact of mobile MIS- mixed

results

Mobile MIS: GSMA lessons

so far

Restricted - Confidential Information © GSMA 2011 #magri



Overview: Agricultural Market Information Systems (MIS)


John Zoltner

Director, Information Technology Applications Department

(ITAD)

FHI 360

#magri



What is an MIS?




Market Information System

– A set of integrated and coordinated processes and tools to deliver

agricultural market information and services

Services provided respond to specific needs of a community, market or value

chain

– Price data collection, analysis and distribution

– Linking traders and supporting transactions

– Related services, such as agricultural extension information or weather

alerts

Why use an MIS?




MIS are designed to increase market transparency to:

– Increase revenues for smallholder farmers

– Lower transaction costs for traders

– Lower cost of goods for consumers

Allow governments to track trends in availability or food commodities to create

policies or react to shortages

History of MIS




Collection and distribution of crop prices in Africa dates back (at least) to

colonial times

Radio, faxes and email accelerated and extended price reporting

Web platforms further accelerated and organized the data over time

Mobile platforms customized the data and made it ubiquitous – or hold that

promise

First Generation MIS




Grew out of Famine Early Warning efforts , such as USAID’s FEWSNET (1984)

Focused on particular countries or value chains

Provided price information only – obtained from sample markets

Activities were donor dependent and provided for free

Examples:

– OMA – Agricultural Market Observatory, Mali

– AMIC – Zambia

– SIMA – Mozambique

Second Generation MIS




Led by private sector or farmers’ / traders’ associations – generally not by governments

Market prices integrated with other relevant information and services, such as:

– Input price information

– Agricultural extension advice

– Weather forecasts

– Platforms to link producers with traders

Leverage modern technologies: web and mobile

Attempting to develop sound business models: links with trade organizations, user

fees, advertising

Examples:

– Esoko

– Infotrade (Uganda)

– RATIN (Kenya)

MIS Innovations




Distribution of information personalized for recipients via mobile

New methods of price monitoring:

– GIS and POS

Better integration for trade: Matching traders and producers, Integrating with

commodity exchanges

Better regional integration:

– RESIMAO

– AAMIS-Net

Impact of Market Information Systems Activities on Market

Performance in Mozambique

Community Power for Mobile


Andrew Kizito,

Lecturer, Department of Statistical Methods and

Actuarial Science,

Makerere University, Uganda

#magri



Paper Co-authored by Cynthia Donovan, and John M. Staatz

www.aec.msu.edu/fs2/papers/idwp124_revised.pdf

http://www.aec.msu.edu/fs2/papers/idwp124_revised.pdf

Growing marketable staples

Ownership of Radio

Cell phone Network in Village

Roads with public transport

Proximity of administrative post

Belongs to associations.

Extension

Level of Education

Agro-ecological zones

Factors that Influence

Receiving Market Information




Receiving information increased probability of market

participation by 34%

Information premium of 12% per kilogram

Benefit-Cost Ratio of 6

Conclusion: MIS was a socially profitable investment

Effects of Receiving Information on Market Participation

and Prices




Provide information on major marketable staples.

Make radio and cell phones important diffusion channels

Make associations and groups important MIS clientele.

Make government and NGO extension staff MIS clientele.

Focus in areas with potentially high supply response.

Improve feeder roads

Decentralize information systems

Invest in universal education

Implications for MIS Improvement and Design




MIS pre-requisites and best practices

Community Power for Mobile


Shaun Ferris

Senior Technical Advisor - Agriculture and Environment

Catholic Relief Services

mAgri Webinar: Designing & Marketing Mobile Information & Advisory

Services for Women Smallholders

#magri

Valued and Trustworthy

Built to fit

Client focused

Promoted and supported

Scalable

Multi-channel

Long-term

Constantly upgraded

Viable Business model

Success Factors




Any MIS data must be

– Accurate

– Relevant to the target group

– Timely

– Accessible

– Reliable

– (most services have failed on all

factors)

– Well trained motivated

enumerators

Valued and Trustworthy




Market information (Spot prices)

Market intelligence (Prices Plus)

Market linkage (Brokerage)

Built to Fit the Purpose




Segmented

– Smallholder grain farmers

– High value horticulture farmers

– Export product farmers

– Livestock farmers

– Commercial farmers

– Traders

Local language

– Major groups

Crop Focused

– Grain crops

– Fruit and Vegetable

– Livestock

– Cash crops (traditional export crops)

Client Focused




Local language Radio gets to

target communities

Posters

Radio spots

SMS blasts

SMS linked to discount offers

Educational shows

Billboards

Road shows

Linked to key actors / projects

Linked to key ministries

Promoted and supported




Geography

– District, national and regional MIS

– National was the most successful

– Recommend national level units

Scalable




National MIS

Radio Coverage 13 Stations

Multi-channel

Farmers Local traders Wholesalers Formal traders

Neighbours

Traders

Radio

Mobile

Web

E-boards

Boards

MIS needs years to be known and build trust

2 years to get known

3 regular use by progressive farmers / groups

4+ adopted more mainstream

5 ready for add on’s

Long-term




Market conditions change

Quality control vital in first 2-3 years

Evaluation of use and needs

New technologies / applications

Embedding into other services

Addition of services

Constantly reviewed for upgrading




Good value if a public goods service

A good “fit” if an embedded service

Profitable if a stand alone

Business Model




Case study: Esoko Malawi

mAgri Webinar: Designing & Marketing Mobile Information & Advisory

Services for Women Smallholders

Robert Turner

Chief of Party, Market Linkages Initiative

ACDI/VOCA Malawi

#magri




Market Linkages Initiative Malawi MIS

Started Jan 2011 with USAID funding

Esoko Web-to-SMS platform and

methodology

Started with 13 markets, ~4,000

farmer recipients

Staple food crops – maize, rice, soya,

groundnuts, beans

Mzimba

Dowa

Mitundu

Jenda

Madisi

Lizulu

Mchinji

Thondwe

Limbe

Mkando

Phalombe

Lilongwe

Chikwawa

Original Network




Methodology

Generally Esoko methodology with

local input

Local measures converted by market

Multiple vendors, most quoted price

Prices uploaded via mobile on market

days (retail, wholesale… and buying)




Methodology cont’d

Reviewed and approved via web by administrator before posted

Unusual prices addressed to enumerator or to key informants




Esoko Malawi MIS

Enumeration funding / mgt now with

Agricultural Commodity Exchange

Now 28 markets and sunflower,

sorghum added

ACE agents collect prices but also

facilitate MSME trade over the

exchange

Current Network




Esoko Malawi MIS

WFP contract ACE to collect prices

for M&E

Commercial value of all markets not

yet known

Esoko will market price information to

farmers and revenue share with ACE




Esoko chosen for technology and local business model

MLI working with Esoko to develop local resellers

Commercial sustainability of price information is possible, but product and

marketing are key

MNOs are natural partners

Products must included more than prices – weather, agri-tips, offers, etc.

Commercial Sustainability




Government Service?

Many governments already collecting

price information

Widespread recognition of need for

MIS (ASWAP)

Current system unable to meet needs

for market use (timeliness,

consistency, accuracy)

Case can be made for cost of MIS vs.

cost of market interventions

#magri

http://makingtheconnection.cta.int

Four day event comprising a mix of presentations, panel sessions, working groups and breakout

sessions, as well as a day of field trips. Conference topics will include:

Trends impacting on value chain development

Value chain innovation

Enabling environments

Sustainability and scaling up

Capacity development



http://makingtheconnection.cta.int/

http://makingtheconnection.cta.int/


Q&A

[email protected]

www.gsma.com/magri

Twitter: @GSMAmAgri

#magri

Join the mAgri distribution list

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