The Impact of Ebola (EVD) on SME’s in Rice and … · The Impact of Ebola (EVD) on SME’s in...

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The Impact of Ebola (EVD) on SME’s in Rice and Vegetable Markets in Sierra Leone December 2014 Presenters: Vware Bobori Peter Ghombo

Transcript of The Impact of Ebola (EVD) on SME’s in Rice and … · The Impact of Ebola (EVD) on SME’s in...

The Impact of Ebola (EVD) on SME’s in Rice and Vegetable Markets in Sierra Leone December 2014 Presenters: Vware Bobori Peter Ghombo

Sierra Leone Opportunities for Business Action (SOBA) is a market systems development

programme that aims to reduce poverty in Sierra Leone by increasing incomes of farmers and small-

scale entrepreneurs. Following the Making Markets Work for the Poor (M4P) approach, SOBA seeks to

improve the underlying pro-poor performance of a range of market systems in the agricultural and

light-manufacturing sectors, leading to opportunities for better access and improved growth for poor

and disadvantaged people.

SOBA is funded by the United Kingdom’s Fund for International Development and Implemented in

partnership with Sierra Leone Ministry of Trade and Industry.

1. Executive Summary

The current outbreak of Ebola Virus Disease (EVD) in Sierra Leone is severely affecting economic

activities in the country. The disease, which is characterized by the early onset of debilitating symptoms

and high fatality rates, has led to a slowdown in business practices, labour shortages, and behaviour and

policy changes. In particular, the potential of EVD to negatively impact the agricultural sector is very

high due to the seasonal nature of the sector, which requires that key production activities are

undertaken at specific times, so as not to compromise production levels. As such, food security for

and the livelihoods of many in Sierra Leone – especially among the poor and vulnerable - is

significantly threatened.

SOBA has conducted an assessment to examine the direct effects of EVD on the rice and vegetables

markets, especially on small and medium-sized enterprises (SMEs) who are engaged in, and rely on

these markets for their livelihoods. The study was conducted in November 2014 in Western Area Rural,

Port Loko and Koinadugu – districts in which SOBA is jointly implementing market development

interventions with, key private sector partners.

Interviews with 200 key actors in the two agricultural markets show that the EVD outbreak has

negatively affected farming related activities for all the farmers interviewed. Land preparation, planting,

weeding, application of inputs, harvesting and sales of produce have all been affected.

The biggest problem which farmers face because of the EVD outbreak is access to markets to sell their

produce, with 65% of farmers experiencing this problem. 76% of women are more constrained in

accessing markets compared to 67% of youths and 57% of men. Indeed, due to the outbreak of EVD in

Sierra Leone, women farmers are less able than men and youths to carry out all but one of the farming

practices listed.

Fear of contracting Ebola is the biggest factor restricting SMEs income generating activities – 86% said

fear prevents them from going about their normal business. As a result, incomes have fallen for 93% of

farmers; with 55% earning over Le200, 000 less on average, on a month to month basis. Income effects

are slightly larger for youth (97%), compared to women (96%) and men (90%).

Farmers also report that the prices of food and non-food items have gone up, while supply of food has

reduced. Food traders and vegetables input distribution agents confirm that supply of food and inputs

have fallen, at the same time as prices have been rising.

Study findings are significant as they indicate that as long as fear of EVD prevents/limits farming

activities – farmers’ yields are at risk, especially for the rice harvest which was underway at the time of

the study. With farmers’ already experiencing reduced incomes – smaller yields will only compound the

problem. Less income combined with food scarcity and price rises will, among other things, lead to

reduced food intake and malnourishment – results also indicate that farmers are substituting ‘non-

essential’ foods with staples like rice.

Consequently, not only are the negative effects of EVD on SMEs in the rice and vegetables sub-

sectors are already significant, the epidemic could potentially have wider knock on effects on the

livelihoods of the most vulnerable in the country without urgent intervention.

Study findings show that access to markets/trading opportunities is the biggest challenge facing

SMEs. Therefore better access to markets/trading facilities which improve the flow of both food and

non-food items will reduce wastage, help keep prices down and boost the incomes for all actors in the

rice and vegetables markets, including the poor.

2. Introduction

Since the first reported cases of Ebola Virus Disease (EVD) in May 2014, more than 8000[1] cases have

been recorded in Sierra Leone. As a result, the Government of Sierra Leone (GoSL) declared a public

health emergency in July, putting in place several prevention and containment measures such as

prohibiting large gatherings, restricting movement, and quarantines of identified ‘hot spot’ areas.

The effects of the virus itself, combined with the strategies employed to contain the spread have wide

reaching implications for Sierra Leone’s economic growth – among other things, real GDP growth is

likely to decline and the rate of inflation is expected to rise - driven by price increases resulting from

disruptions in market systems.

An estimated two-thirds of Sierra Leone’s poor are engaged in and dependent on subsistence

agriculture for their livelihoods, and the EVD outbreak has disrupted key agricultural activities for

staple crops such as local rice, cassava and yams. This has both immediate and longer term

implications, as farmers’ ability to generate income from agricultural activities is critically reduced now,

straining already limited resources and further worsening poverty indicators for many Sierra Leoneans.

SOBA is mandated to deliver improvements in the underlying pro-poor performance of a range of

market systems in the agricultural and light-manufacturing sectors, which will ultimately lead to

opportunities for better access and improved growth for poor and disadvantaged people in the country.

It is therefore imperative that the program plays an active role in alleviating EVD related hardships on

target beneficiaries, by expanding and/or developing appropriate mitigation strategies and

interventions. In order to do this effectively, SOBA conducted an assessment of the impact of EVD on

small and medium enterprises (SMEs) in the markets in which we are currently working with private

sector partners, to deliver expected income increases for the poor - rice and vegetables.

In the rice market, SOBA’s work with Mountain Lion Agriculture Limited (MLA), is targeted at

addressing key constraints identified - limited access to high quality seed rice by smallholder farmers,

primarily due to poor quality of locally available seed rice varieties, as well as inefficient seed rice

distribution systems; and poor market penetration of domestic rice in local wholesale and retail outlets.

[1] Confirmed, suspected & probable cases as of 14 December 2014; Source https://www.internationalsos.com/ebola/index.cfm?content_id=397&language_id=ENG

The four interventions designed to address the constraints are:

1.Establish a commercial seed multiplication business so quality seed rice is available for distribution to

small scale farmers.

2. Set up an efficient and commercially viable seed rice distribution network.

3. Establish a quality processing unit to produce local rice that is of comparative quality with imported

varieties.

4.Facilitate packaging, distribution and marketing of processed local rice to increase the availability of

good quality processed local rice in retail and wholesale outlets.

Access to quality inputs is also a key constraint which vegetables producers face. And so in partnership

with 2 inputs supplies companies - Holland Farming (HF) and Salone Seeds (SS) - SOBA is piloting the

establishment of a cost effective inputs distribution model for selected vegetables inputs to smallholder

farmers.

Therefore, as part of the study, SOBA also assessed the impact of EVD on current private partners’

business operations in general, and on interventions being run in partnership with SOBA. In summary,

the main objectives of the assessment are to:

• Further contribute to the knowledge base of the impact of EVD on SMEs in the country

• Highlight the financial and non-financial impacts of EVD on SMEs and key private sector actors in the

rice and vegetables markets

• Examine current and planned mitigation strategies by SMEs and key market actors

• Highlight how SOBA’s work with key players in the rice and vegetables markets is contributing to

mitigate the impact of EVD SMEs in these markets

• Examine what, if any, support SMEs and key market actors are currently receiving from other

stakeholders to mitigate the impact of EVD

• Highlight support required to mitigate the impact of EVD

• And thus, provide a basis for both SOBA and external strategy for mitigation interventions for target

beneficiaries

The results of the study are reported in the following sections of the report.

3. Study methodology

Information was obtained from SOBA’s partner companies, distribution agents, traders and farmers

from areas in which program supported intervention are currently being implemented in PortLoko,

Koinadugu and Western Area Rural districts. For ease of administration and response, and also to

provide scope for respondents to give detailed answers when required, semi structured questionnaires

with pre-coded and open ended questions were administered via face to face interviews, for all

categories of respondents. Farmers and traders were conveniently sampled [2] , while SOBA partners

and distribution agents were purposively selected as shown in table 1 below:

Table 1: Categories of respondents and sample sizes

* These are distribution agents of SOBA partners in the Vegetables sector

Of the 166 farmers interviewed, 75 were rice farmers from Port Loko and Koinadugu, being the rice

producing areas in which SOBA interventions are currently being implemented. On the other hand, 91

vegetables producers were interviewed in Western Area Rural, Port Loko and Koinadugu. In addition,

92 of the respondents were male, while 74 female. Table 2 below shows the percentage composition of

farmer respondents:

Table 2: Distribution of farmers

Category of respondent No. sampled

Rice and vegetables farmers 166

SOBA partners: Rice – Mountain Lion Agriculture Limited Vegetables – Holland Farming and Salone Seeds

1 2

Vegetables inputs distributors and Retailers 16

Food traders (Local rice and vegetables)* 15

Total 200

Sex

Frequency

Crop Produced

Frequency District

Frequency Age

Frequency

Male 55% Rice 45% Western Area Rural

17% 15 to 24 7%

Female 45% Vegetables 55% Port Loko 50% 25 to 34 17% 100% 100% Koinadugu 33% 35 to 44 30% 100% 45 to 54 26%

55 to 64 17% 65 and above 3% 100%

[2] Reluctance to interact with strangers for fear of contracting EVD meant that the study team could not randomly select respondents as previously planned; interviews were carried out with respondents who were willing to participate in the study as long as they belonged in the target groups

15 traders of food produce – mostly rice and vegetables were interviewed in the 3 districts. In addition, a

total of 16 distributors and retailers were interviewed in Port Loko and Koinadugu:

Table 3: Traders, distributors and retailers

District No. Sex No. Category No.

15 Traders

Western Area Rural 6 Male 3 Local rice Trader 5

Port Loko 5 Female 12 Vegetables

Trader

10

Koinadugu 4

16 Distributors and

Retailers

Western Area 0 Male 9 Distributor 5

Port Loko 6 Female 7 Retailers 11

Koinadugu 10

4. Study findings

4.1 Respondents’ Poverty profile

Household characteristics and asset ownership computed with the Progress out of Poverty index -PPI

[3] for Sierra Leone, indicate an average PPI score of 36.2 for all the respondents – which shows that

approximately 85.2% of respondents live in households which fall below the national poverty line. In

addition, 94.3% and 69.0% of respondents live in households which fall below the $2.50/day PPP line and

$1.25/day PPP line respectively. The findings confirm that the majority of respondents interviewed for

the study can be classified as poor; and thus fall within SOBA’s target beneficiaries for increases in

incomes and improved livelihoods. Table 4 below details the PPI scores, the proportion of respondents

and the percentage probabilities for the 3 different poverty indicators.

Table 4: Respondents poverty profile

PPI Score Below national

poverty line Below $1.25/day

PPP line Below $2.50/day

PPP line. % of respondents

0-4 100.0% 100.0% 100.0% 0%

5 to 9 100.0% 100.0% 100.0% -

10 to 14 100.0% 100.0% 100.0% 2%

15 to 19 97.3% 88.5% 97.3% 8%

20 to 24 97.6% 85.8% 99.4% 5%

25 to 29 98.6% 91.2% 99.3% 14%

30 to 34 90.5% 74.4% 98.9% 17%

35 to 39 85.2% 69.0% 94.3% 12%

40 to 44 81.3% 62.4% 96.2% 17%

45 to 49 74.1% 51.5% 96.9% 8%

50 to 54 57.3% 36.9% 88.2% 8%

55 to 59 45.0% 27.5% 77.7% 5%

60 to 64 28.2% 13.8% 80.8% 2%

65 to 69 21.3% 9.6% 57.6% 1%

Average PPI score 36.2

[3] http://www.progressoutofpoverty.org/country/sierra-leone

4.2 Farmers

4.2.1 Effects of EVD on farming practices

• The EVD outbreak has negatively impacted on the farming practices of all farmers interviewed

• Land preparation, planting, application of inputs, harvesting and marketing of produce have all reduced amongst farmers

• Ability to sell produce has been the most affected by the EVD outbreak

• Women are less able than men and youth to carry out the majority of farming practices

As shown in figure 1, the majority of farmers (65%) have experienced difficulties marketing farm

produce, while 61% and 55% had experienced difficulties in application of inputs and planting

respectively. In addition, EVD has also negatively impacted on harvesting (53%), land preparation (47%)

and weeding (45%).

Figure 1: Farming practices negatively affected by EVD

Figure 2 shows further disaggregation of farming practises affected by EVD, first by gender and then by

crop. Regardless of gender, the top constraint is the same for respondents – difficulties in selling

produce. However, 76% of women find it difficult to sell farm produce, compared to 67% of youths and

57% of men. Similarly, women are more constrained in land preparation, planting, application of inputs

and harvesting than men and youth; weeding is the only farm practice in which women are less

impacted than men, but are still worse off than youths.

47% 55%

45%

61% 53%

65%

24%

0%10%20%30%40%50%60%70%

Land

pre

p.

Plan

ting

Wee

ding

App

licat

ion

of in

puts

Har

vest

ing

Mar

ketin

g pr

oduc

e

Oth

ers

Farming Practice

Percentage of farmers

In Sierra Leone, women’s contributions are vital for household food security and overall wellbeing. That

the EVD outbreak is having a greater impact on women’s productive abilities is therefore especially

worrying, due to the ripple effects on the nutrition and health of households in general, and children in

particular.

Analysis by crop shows that rice farmers are relatively worse off than vegetables producers in terms of the

negative effects of the EVD outbreak on all farming practices. However, the biggest impact of EVD on

farming practice for rice farmers is in application of inputs, followed closely by difficulties in selling

produce – which is also the biggest problem facing vegetable producers,

While it is noteworthy that all farming practices are being constrained because of EVD, the fact that rice

and vegetables producers are universally challenged in selling their produce is significant, as it means that

farmers are producing food for income, which they are not able to sell. Post-harvest wastage in vegetables

production, a pre-existing major constraint for vegetable producers – is now likely to be compounded by

the difficulties which farmers have in selling their produce because of the EVD outbreak.

Figure 2: Farming practices affected disaggregated by gender and crop

0%20%40%60%80%

Land prep. Planting Weeding Application of inputs

Harvesting Marketingproduce

Others

Male 42% 50% 46% 57% 40% 57% 30%Female 53% 61% 43% 66% 69% 76% 16%Youth 44% 49% 41% 59% 56% 67% 18%

Farming practices affected, by Gender

0%10%20%30%40%50%60%70%80%

Land prep. Planting Weeding Application of inputs

Harvesting

Marketingproduce

Others

Rice 57% 68% 61% 77% 61% 76% 24%Vegetables 38% 44% 31% 47% 46% 56% 24%

Farming practices affected, by Crop

4.2.2 Wider effects of EVD on farming related activities

• Over 2 in 3 farmers now pay more for transportation to markets

Expanding further on the specific effects of the EVD outbreak on farming activities and thus income

generation, farmers listed multiple activities in which they are experiencing negative effects. Table 5

below shows why farmers have difficulty selling their produce – just over 2 in 3 farmers state that

transportation costs (to markets) have gone up. In addition, even when farmers do manage to sell their

produce, they receive comparatively less money than before for their crops. For farmers interviewed,

there is a twofold effect of reduced market access – inability to sell produce; and also to buy inputs. In

addition, supplies of inputs and labour have both fallen, and at the same as the costs of these important

farming requirements have gone up.

With higher labour costs, fall in supply of labour, farmers’ inability to personally tend to their plots

themselves and the associated drop in farming practices/activities, rice and vegetables yields are likely

to be significantly less than previous harvests.

Farmers were interviewed in November (during the harvest season for local rice) and 28% of rice

farmers who took part in the study reported that harvesting had been affected by the EVD outbreak.

This indicates that there will be relatively less local rice available for consumption in the New Year,

prices will rise further and farmers, who are usually net buyers of rice, will struggle even more to obtain

sufficient rice for consumption.

Table 5: Impact of EVD on farming related activities

Farming related activity % of farmers Farming related activity % of farmers

Increase in cost of transport to markets 67% Increase in labour costs 55%

Fall in price received for sale of farm produce 63%

Reduced ability to personally tend farm 52%

Fall in access to markets to sell produce 62% Fall in supply of inputs 49%

Fall in labour supply 59% Fall in supply of Ext. services 33%

Increase in costs of inputs 58% Increase in cost of Ext. services 21%

Fall in access to markets to buy inputs 58%

4.2.3 Causes of EVD effects

• Fear of contracting EVD is the major deterrent to farming activities for 86% of farmers

As figure 3 below shows, for farmers, there are several aspects of the EVD outbreak which has led to the

negative impacts on farming practices and related activities, foremost of which is the fear of virus –

which has prevented them from going about their normal business; followed by government imposed

containment policies like restricting movement/quarantines.

Figure 3: Why EVD is negatively impacting farming practices and related activities

4.2.4 EVD impact on farmers’ incomes

• 93% of farmers have experienced decreases in average monthly incomes

• Income effects have been greatest for youth, followed by women and then men

• All farmers interviewed in Western Area Rural have experienced reductions in their monthly incomes

As expected, with the EVD outbreak limiting farmers’ ability to fully engage in farming and related

activities, farmers acknowledge that their incomes are falling. Specifically, nearly all the farmers who

took part in the study (93%) estimate that their average monthly incomes have fallen - with an average

monthly decrease of over Le200, 001 for 55% of farmers sampled (figure 4).

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

People afraid togo about their

normal business

Migration toother areas

considered safe

EVD relatedillness/deaths

leading to labourshortages

Restrictions ofmovement/quarantine measures

Percentage of farmers 86% 22% 33% 64%

86%

22%

33%

64%

Another 13% have seen their average monthly incomes decrease by Le150, 001 – Le200, 001, while 9% of

farmers have experienced average decreases of between Le100, 001 – Le150, 000; 11% - between Le50,

001 and Le100, 000; and 1% - less than Le50, 000 a month.

Figure 4:

Figure 5 below shows that youth record the highest proportion of farmers experiencing decreases in

average monthly incomes (97%), relative to women (96%) and men (90%). In addition, more rice farmers

(95%) than vegetables farmers (91%) have seen average monthly incomes fall. All farmers interviewed in

Western Area Rural reported reduced incomes, while 92% and 91% of farmers in Port Loko and

Koinadugu respectively, said their average monthly incomes had fallen.

Figure 5:

0%

10%

20%

30%

40%

50%

60%

Lessthan Le50,000

Le50,000 -

Le100,000

Le101,000-

Le150,000

Le151,000-Le

200,000

Le201,000- andabove

Notspecifie

d

Proportion of farmers with fall inaverage monthly income 1% 12% 10% 14% 60% 3%

90%

96%

97%

Proportion of farmers with reduced average monthly incomes, by Gender

Proportion of malefarmers

Proportion offemale farmers

Proportion ofyouth farmers

95% 91%

Proportion of farmers with reduced monthly incomes, by Crop

Proportion of ricefarmers

Proportion ofvegetable farmers

4.2.5 Non-Income effects of EVD – consumption of food and non-items; access to health

• Farmers report that rice, palm oil, cassava, fish and meat are among the food items which have

become less available for consumption

Even as farmers’ incomes have decreased, the prices of both food and non-food items have gone up,

while the amount of food available to farmers has fallen (figure 6) – with rice, palm oil, salt, cassava, fish

and meat listed amongst the scare items. For men and women – increases in the price of food is more

significantly felt with 54% of men and 47% of women paying more for food now than before the EVD

outbreak. On the other hand, for youth, reduced availability of food is a bigger issue than the other

impacts mentioned, followed by increases in food prices. It is noteworthy that for all respondents –

reduced access to health care is the least significant of the effects of EVD listed by respondents.

Figure 6:

100%

92%

91%

Proportion of farmers with reduced monthly incomes, by District

Proportion of Western Area farmers

Proportion of Port Loko farmers

Proportion of Koinadugu farmers

39%

52%

44%

14% 9%

Reduced availability of food items

Increase in the price of food items

Increase in the price of non-food items

Reduced access to health care

Others

4.2.6 Support for Farmers

• Less than 1 in 10 farmers have taken up new income generating activities

• About 1 in 4 farmers is receiving support to mitigate the impact of EVD

Farmers’ efforts to manage the EVD outbreak and reduce the negative impact on their lives are mainly

focused on avoiding the virus – with 86% stating that they have adopted preventive measures such as

washing hands with soap/chlorine, avoiding crowds, self-restricting movement et cetera. A small

proportion of farmers – 7%- have also taken up new income generating activities such as cultivating

crops in their back gardens and petty trade.

Some farmers (23%) are also receiving some support from government (8%), NGOs (8%) and

donors/donor programs (5%). Support currently being received and desired by farmers includes

financial, extension services, inputs and training (table 6).

Table 6: Type of support farmers are receiving and want

0%

20%

40%

60%

80%

100%

120%

140%

160%

Reducedavailability of

food items

Increase in theprice of food

items

Increase in theprice of non-

food items

Reducedaccess to

health care

Others

Youth 54% 51% 38% 18% 15%Female farmers 36% 47% 41% 9% 9%Male farmers 40% 54% 46% 18% 5%

Type of Support Financial Ext.

Services Inputs Training Others

Being received (% of farmers) 5% 2% 4% 4% 10%

Farmers want (% of farmers) 28% 8% 28% 10% 34%

4.3 Traders - local rice and vegetables

• Sales trends for food traders suggest that non-essential food items are being substituted with staples

like rice

Sales pattern for traders of vegetables show average monthly sales rising till April, followed by

declining sales till October, 2014. On the other hand, local rice traders’ average monthly sales fell

steadily till June, after which sales of local rice increased from month to month till October.

Pre the EVD outbreak, demand for vegetables in Sierra Leone was growing not just among the urban

middle/high class but also among the rural and urban poor with widening income generation

opportunities in the construction, mining and agriculture sectors. Nevertheless, production of

vegetables especially ‘exotic’ varieties such as tomatoes, cabbages, carrots and cucumbers was mostly

for cash rather than as food crops. Hence, the EVD outbreak in May has impacted severely on sales of

vegetables as producers experience reduced access to markets, the prices go up and people likely

substitute vegetables with more essential food items like rice. Indeed, the sales patterns for local rice

provide confirmation that demand for rice has been on the increase since July, coinciding not only with

the EVD outbreak but also the ‘hungry’ [4] season. Figure 7 shows the average monthly sales for traders

from January to October, 2014.

Figure 7: Average monthly sales for vegetables and local rice traders

[4] This is the season when access to food deteriorates and usually occurs from June to August. “WFP (2011) Comprehensive Food Security and Vulnerability Analysis”, http://reliefweb.int/report/sierra-leone/2011-sierraleone-comprehensive-food-security-and-vulnerability-analysis-cfsva

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Jan Feb Mar April May June July Aug Sept Oct

Veg. traders -average MonthlySales (Le)

Rice. traders -average MonthlySales (Le)

Traders - average Monthly Sales(Le)

While traders acknowledge that seasonality of produce is a factor in determining sales, they emphasise

the impact of the EVD outbreak on sales volumes as some crops have become scare (vegetables –

lettuce, cabbage, carrots, tomatoes et cetera; local rice – ‘bara’ rice, ‘off’ rice), prices of supplies have

gone up, customers have moved to areas considered safe from the virus and customers say they are

cannot afford to buy food as needed, as figure 8 below shows.

Figure 8: Impact of EVD outbreak on trader's business

As with farmers, traders have adopted hand washing with soap as well as restricted movement and

interaction as to avoid contracting the virus. Two of the 15 traders interviewed also belong to co-

operatives which serve as sources of interest free loans – to help sustain their business during the EVD

epidemic.

20% of traders have received support to mitigate EVD effects from government, while 13% have received

support from NGOs. Types of support received include financial support (13%), and training (13%). 67%

of traders would like to receive financial support, 13% extension services, 20% inputs and 13% training.

0%

10%

20%

30%

40%

50%

60%

Fall insupply

ofvegetabl

es

Fall insupplyof rice

Fall inSupply

of inputs

Rise inprices ofvegetabl

essupplied

Rise inprices of

ricesupplied

Rise inprices of

inputs

Rise inprices of

otherfooditems

Rise inbusiness

costs

Others

% of traders 53% 20% 20% 20% 13% 0% 40% 20% 27%

4.4 Input distributors and retailers

• Sales volumes, supply volumes and prices of inputs have all been negatively affected by the EVD

outbreak

Input distributors and retailers who participated in the study are part of the distribution networks of 2

input supply companies with whom SOBA is jointly piloting the establishment of a cost effective inputs

distribution model for selected vegetables inputs.

Figure 9 shows that for the distributors, average monthly sales of inputs peaked in February, steadily

declined until June, started to rise slowly until September, after which sales fell again. For retailers on

the other hand, sales rapidly grow to a peak in May, but have been falling since then. Again, the lower

relative sales for input distribution agents since May, coincides with the outbreak of the virus in Sierra

Leone and further supports lower demand, consumption and purchasing power in the vegetables

market.

Figure 9: Average monthly sales for input distributors and retailers

As figure 10 below shows, in addition to falling sales, the EVD outbreak has also resulted in a fall in

inputs supplied, a rise in the prices of inputs [5] and a general rises in business costs. Input distribution

agents attribute these effects both to seasonality of vegetables production which drives demand for

inputs and on the EVD outbreak, particularly to transportation difficulties arising from the epidemic.

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Jan Feb Mar April May June July Aug Sept Oct

Retailers -average Monthly Sales(Le)

Distributors -average MonthlySales (Le)

Distributors and Retailers -average Monthly Sales (Le)

[5] Distributors and retailers stock a wide range of inputs including but not limited to inputs supplied by SOBA partner input

supply companies

Figure 10: Impact of EVD outbreak on vegetables inputs distributors and retailers

The existing business relationship with Holland farming and Salone Seeds has benefited the input

distribution agents in that the good quality of inputs supplied by the companies helps to stimulate

customers demand for inputs. In addition, the input supply companies have also supported their

distribution agents with EVD sensitization training and supplies like soap. In general, the distribution

agents have received some financial support and inputs from other sources like the government, NGOs

and donors.

4.5 Impact of EVD on SOBA partners: Mountain Lion Agriculture Limited, Salone Seeds and

Holland Farming

For SOBA’s rice sector partner - Mountain Lion Agriculture Limited (MLA) – the EVD outbreak has had

no significant impact on operating costs (except for medical costs) nor has it affected the company’s

revenues. However travel restrictions within the country have increased the time required for completion

of even the most basic tasks such as procuring invoices from suppliers and moving supplies across

different locations.

The effects of internal travel difficulties are exacerbated by external travel bans/restrictions which have

restricted MLA’s ability to secure required international technical expertise, and led to delays in the

implementation of key activities - for example the installation of the company’s new parboiler/dryer

system. Another effect of the epidemic is that potential investors in the company have, for the time being

at least, withdrawn interest in the company. All of these issues have meant that MLA’s growth trajectory

has slowed significantly relative to pre-EVD projections.

Despite these issues, the company’s core operations continue to function well, with MLA adopting EVD

mitigation strategies such as training of staff on prevention measures, setting up hand washing stations

in all company locations and hiring medical students to conduct temperature testing.

69%

13% 44%

44%

Fall in supply of vegetablesinputs

Rise in prices of vegetablesinputs

Rise in business costs

Others

The effects of the EVD outbreak on SOBAs partners (HF and SS) in the vegetables market have been

more significant – travel restrictions mean that transports costs have gone up. Trips also now take

longer, sometimes requiring overnight stays and therefore lodging costs. In addition, increases in

shipping costs have pushed the prices of inputs up and affected supply volumes. Both companies also

confirm that sales of inputs have dropped mostly because it is more difficult for the company to get

inputs to outlets in remote locations and also farmers themselves are unable to travel to bigger towns

where inputs are more readily available for purchase. In general, while certain costs have gone up,

revenues have also dropped.

Due to the EVD related challenges Holland Farming and Salone Seeds are currently facing, both

companies are cautious in expressing optimism that the activities currently being implemented in

partnership with SOBA to set up inputs distribution chains can be delivered as originally planned.

On a positive note, however, both HF and SS acknowledge that partnership with SOBA can be

strengthened with direct support from the program to expand the scope of the inputs distribution

networks. In addition, SOBA has and can in the future, be instrumental in securing travel passes to reach

markets and farmers in the more isolated areas of the target intervention districts with desired inputs

5. Conclusion and recommendations

Findings from the study provide confirmation that agricultural activities in Sierra Leone have been

significantly impacted by EVD, particularly in the rice and vegetables markets. Farmers are no longer

able to prepare land, plant, weed, apply inputs, harvest and market their produce as before.

Significantly, SMEs access to and participation in markets is the activity most affected – transport costs

to markets have gone up while supply of food and farm inputs to markets have fallen at the same time as

prices of these items have gone up. In general, all aspects of agricultural production have worsened for

rice and vegetables producers, leading to tangible reduction in incomes by over Le200, 000/month for

the majority.

Though farmers are dealing with multiple challenges of reduced economic activities, falling revenues,

reduced supply of food and non-food items, as well as rising prices, the priority at the moment is to stay

EVD free. Thus as long as fear of the disease necessitates limitations in movement and keeps the pace

farming activities at a depressed level, economic outcomes can only become worse with medium to long

term consequences on food production and consumption, unless urgent support structures are put in

place to mitigate these impacts.

Other key actors in the markets assessed have experienced similar economic outcomes as farmers since

the start of the EVD outbreak – difficulties assessing markets, rising prices/operations costs, falling

supplies of essential commodities, fluctuating/falling sales and revenues.

From the results obtained from the study, it is possible to deduce that the multiple negative effects of

EVD being experienced by SMES and other actors in the rice and vegetables markets, would be greatly

reduced by the strengthening of markets/trading structures. Indeed, several other studies have

highlighted the impact that failures in agricultural markets to keep the flow of essential commodities

moving from producer to consumers is having on Sierra Leoneans (especially those living in remote

areas).

However, the sector specific approach of this SOBA study is highly advantageous as it focuses on SMEs

in 2 key agricultural sectors, in which early intervention can bring about significant benefits. Despite a

reduction in food production activities, vegetables and rice producers have stated that they have

difficulties selling what they do produce; and food traders confirm that supplies have fallen. On the

other hand, the supply of inputs and other requirements for optimum production have also reduced due

to rising transportation and other costs. By facilitating the trade of food and agricultural inputs, the

demand/supply gap can be reduced, income generation strengthened and prices fall for food and non-

food items.

Since SOBA’s approach is to strengthen market systems – the program is well placed to quickly

leverage existing partnerships in the rice and vegetables markets to expand buying and distribution

channels to reach more remote SMEs in more remote areas of Sierra Leone. Adopting this approach will

ease the economic impact of EVD on participants in the rice and vegetables markets, but in ways which

improve rather than further distort already weak market systems.

Finally, given that across the board, respondents in this study have embraced EVD prevention

measures; and in the light of concerted efforts by the Government of Sierra Leone and partners, to

contain the spread of the virus - putting in place systems which allow people recover more control of

their livelihoods will greatly increase the prospects of post EVD recovery for all of Sierra Leone.