NAAIAP (NATIONAL ACCELERATED AGRICULTURE INPUTS ACCESS PROGRAM)

NAAIAP COMMERCIALIZING

SMALLHOLDER MAIZE PRODUCTION:

WHERE DOES THE SHILLING FALL?

Regional Workshop on Integrated Policy Approach to

Commercializing Smallholder Maize Production, Norfolk Hotel, on June 6-7, 2012

Rose M. Mwangi

NAAIAP OVERVIEW NAAIAP is one of the pro-poor

programs (others-THVC,NMK & Fertilizer subsidy)

, creating a safety net for resource poor farmers, Addresses MDG1 – hunger and poverty alleviation

NAAIAP is Govt. response to the 2006 Fertilizer Conference held in Abuja, Nigeria

Other African countries also responded to Abuja Conference

NAAIAP N – National A – Accelerated A – Agricultural I – Inputs A- Access P - Program

NAAIAP Secretariat 8 Technical officer – Rose, Sikobe,

Zaweria, Amatha, Korir, Mutua, Esther & Lusweti

5 Administrative staff – David, Mary, Christine, Alex and Magondu

Office – 6th Floor, Hill Plaza

GOAL & OBJECTIVE NAAIAP GOAL – To reach 2.5 million resource poor

small scale farmers through promotion, access and use of improved farm inputs

NAAIAP OBJECTIVE – To increase agricultural

productivity for farmers with one hectare of land through provision of basic farm inputs; and mobilization of farmers resources for re-investment in agriculture

NAAIAP – Started in 2007

- Was fully funded by GOK then - Had 2 components – Kilimo Plus and

Kilimo Biashara - Covers over 150 districts

NAAIAP CONCEPT To transform smallholder maize farmers from

subsistence to commercial farming

NAAIAP CONCEPT Farmers begin with starter pack

(Kilimo Plus) Farmers graduate to Kilimo Biashara ◦ Farmers can now buy inputs on their own

(40% KP farmers) ◦ Farmers can also gain access to

affordable loans to expand farming enterprise (8% KP farmers)

NAAIAP targets to commercialize maize by targeting the whole maize value chain

NAAIAP FUNDING, COVERAGE & BENEFICIARIES

Source of funds

Project Duration BUDGET (Ksh)

No. of Beneficiaries

No. of districts 07/08 08/09 09/10 10/11 11/12

GOK – KP x x x x x x x x x x 1,350 M 208,092 160

KB-Equity Bank

x x x x x x x 1,649 M* 39,967

KAISP (IDA)

x x x X X 389 M 55,126 6

FAO x x 33 M 3,457 4

Egyptian Aid

x x 5.88 M 1,680 4

2KR (NAAIAP)

x x 4.3 M 696 8

EAPP (IDA/EU)

x x x x x x 2,200 M 193,950 94

x x x x x 114,459 105

RFI&RLP (ADB)

x x x x x 137.4 M

19,000

7

TOTAL 4.020 B 629,683

Projects, # beneficiaries & # districts

0

50

100

150

200

250

300

BUDGET (Ksh Tens of Millions) # Beneficiaries (Thousands) # of districts

NAAIAP FINANCES Source of funds 2007/08 2008/09 2009/10 2010/11 2011/12 TOTAL

1 GOK – KP 250,000,000 250,000,000 250,000,000 250,000,000 350,000,000 1,350,000,000

2 KAISP (IDA) 331,000,000 56,000,000 387,000,000

3 FAO 20,000,000 5,000,000 25,000,000

4 Egyptian Aid 5,880,000 5,880,000

5 2KR (NAAIAP) 4,315,200 4,315,200

6 EAPP (IDA/EU) 1,095,980,078 1,104,019,922 2,200,000,000

7 RFI&RLP (ADB) 66,000,000 66,000,000 44,000,000 176,000,000

TOTAL 250,000,000 611,195,200 377,000,000 1,411,980,078 1,498,019,922 4,148,195,200

Beneficiaries (K-Plus)

22,000 87,876 174,875 126,383 60,000 471,134

NAAIAP FINANCE TRAIN

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

2007/08 2008/09 2009/10 2010/11 2011/12

RFI&RLP (ADB)

EAPP (IDA/EU)

2KR (NAAIAP)

Egyptian Aid

FAO

KAISP (IDA)

GOK – KP

NAAIAP – Component 1 KILIMO PLUS (Input Voucher) ~500,000 inputs vouchers issued ~100

districts (100% subsidy, one touch) Agro-dealer training for 2,685 stockists

& 305 staff Soil testing – 3 training done, 8700 soil

samples collected from 145 districts, 30 farmers per district. KARI doing analysis.

NAAIAP – Component 2 KILIMO BIASHARA (ACGS) Agriculture Credit Guarantee Scheme 4 banks – Equity, Family, Cooperative

& KWFT get total KES 500m to offer affordable loans (12% interest rate)

Rising interest rate threat to commercialization.

Visibility and Sensitization of ACGS thro TV, Radio, Field days, Newspaper and Posters

NAAIAP– Component 3 THV-CROPS 114,459 farmers in 105 districts benefited

from drought resistance seed & planting material worth >KES 151million

Irrigation infrastructure for 3 KARI stations (Katumani, Igoji & Marimanti) KES 50 million

Irrigation equipment to 4 ATCs – Bukura, Kitui, Wambugu & Garissa > KES 10 million

“commercialization of sorghum” for farmers seed bulking training for staff

Fild d

NAAIAP – Component 4 Administration Supervision and Backstopping ICT – 5 pilot districts, input of data;

and purchase of server and setting up Impact Assessment Report printed Develop M&E framework for NAAIAP Financial Management & Audit Visibility and Communication Develop proposal for EAPP II

PROGRAM IMPACT SINCE INCEPTION Fiscal

year No. of district

s

No. of input vouchers (farmers)

Yield/Acre Bags (90

kg)

Production Bags (90

kg)

Value Million KSh.

2007/08 35 35,500 22 781,000 1,327 2008/09 62 92,000 15 1,380,000 3,174 2009/10 103 169,110 22 3,720,420 8,557

2010/11 94 126,383 14 1,769,162 5,307 2011/12 56 60,000 - - - Total - 482,993 - 7,650,582 18,365

• Creation of demand-extension, inputs, markets credit, partnerships • Increased productivity from 4 bags to 20 bags per acre • Fertilizers consumption 48,300 T & 4,830 T of certified seed • Distance to accessibility of farm inputs has decreased from 15- 35km to 3-9 km

NAAIAP - Challenges

Climate change Viral disease attacking maize in Rift

Valley Fluctuating prices of inputs against

voucher value Low formation of cereal banks Funding constraints-erratic Delayed disbursement of funds to the

field for logistics and stockists Logistics - Data management, Double

allocation Sale of inputs for immediate

NAAIAP - Recommendations Strengthen our data analysis and retrieval

system- Data management & Research NAAIAP funds should be set apart (whether

from GOK or Development partners) to enhance access and disbursement of funds is done on time.

Adopt lessons learnt from our tours and impact assessment study – diversification to other cereals, irrigation.

Develop a pull system rather than push system

NAAIAP FUTURE To reach 2million remaining farmers Require an estimated Ksh 18.7 billion. To generation of marketable

26,000,000 bags of maize, valued at KSh 78 billion at current prices.

Funds to address the inputs access, Funds to target the market

development options - and develop a grain market pull system that will attract more supply and utilization of improved inputs.

NAAIAP 2012/13 Budget 1. GOK Funds – Ksh 350million 2. Donor Funds (WB/EU) – Ksh 2

Billion 3. 2KR Funds – Ksh 600 million TOTAL – Ksh 2.95 billion 71,000 input voucher Crop insurance Strengthen post harvest - market &

value addition Upscale the NAAIAP E-Coupon

Points to ponder for NAAIAP Can NAAIAP move to phase II? Are farmers ready/willing to contribute

towards the subsidy? Should subsidy to given more than

once to a beneficiary? Are we achieving the Abuja dream? Are we attaining the MDG 1? Are less persons sleeping hungry? Where has the shilling fallen?

Thank You