Rural Markets Promotion Program

PRESENTATION OUTLINE

Program Profile

Program Components: Strategy and Progress

Issues arising from implementation

Rural Markets Promotion Program

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Effectiveness: 26 April 2009

Completion date: 2018

Scope of activities: Enabling smallholders to increase their agricultural income by marketing their surpluses more profitably

Geographical Focus: 15 districts of the Provinces of Niassa, Cabo Delgado, Nampula and Zambézia

Implementation structure: 3 Implementation Blocks

Block A - Niassa (Cuamba Office)

Cuamba, Maúa, Marrupa, Mandimba, Materica and Mecanhelas;

Block B – Cabo Delgado (Pemba Office)

Ancuabe, Balama, Chiúre, Montepúez and Namuno

Block C – Nampula and Zambézia (Alto Molocue Office)

Malema, Ribáuè, Alto Molocué and Gurué

Maputo – Program Management Unit

Implementation through Service Providers and Partners

• MASA – Extension and Market Information

• MIC – Agricultural Marketing

• Roads Sector: ANE and Roads Fund - Roads

• District Government and Municipalities (Rural Markets Infrastructure)

• FARE – Financial Services

Rural Markets Promotion

2

Program Profile

PROMER Expected Outcomes

• Improved smallholder access to and participation in agricultural markets and value chains;

• More efficient market intermediaries, and more effective partnerships, stimulating increases in agricultural production and value addition;

• A more conducive environment for agricultural market operations.

Agribusiness in Mozambique???

PRODUCER

Value Chain Actors

• Input Suppliers

• Buyers

• Financial Institution

• Extension services

• NGOs

• etc

Market Inefficiences

• Poor roads

• Poor market information

• Low production/productivity

• Uncoordinated efforts among

actors

• etc

How does PROMER increase the income of small scale producers?

Component 1: Development of more dynamic Market Intermediaries

• Support of Farmer Organizations

• Capacity Building of Farmer Associations • (Training and Coaching through a Classification System

and SWOT Analysis) • Linking with key market actors

• (eg. Input suppliers, buyers and financial institutions)• Development of Higher Level Support Institutions

• (Forums, Federations, Unions) • Adult Funtional Literacy

• calculations related to production and marketing costs, read scales, understand contracts that they sign withbuyers or banks

• Market Oriented Extension Services (Support to SDAE´s)• Support to Small Scale Value Addition Activities

• storage - warehouses, machines for: cleaning, grading andpacking) - reduce post harvest losses and increase qualityof produce (mostuire content, reduce impurities)

Component 1: Development of more dynamic Market IntermediariesSupport of Farmer Organizations

Linking with Traders Adult Functional Literacy

Training

•Capacity Building of Farmer Associations (Training and Coaching through a Classification System and SWOT Analysis)

•Linking with key market actors (eg. Input suppliers, buyers and financial institutions)

•Development of Higher Level Support Institutions(Forums, Federations, Unions)

•Adult Funtional Literacycalculations related to production and marketing costs, read scales, understand contracts that they sign withbuyers or banks

•Market Oriented Extension Services(Support to SDAE´s)

•Support to Small Scale Value Addition Activitiesstorage - warehouses, machines for: cleaning, gradingand packing) - reduce post harvest losses and increasequality of produce (mostuire content, reduce impurities)

Subcomponent 1.2. Support to farmers Organizations

Years No. of FO Beneficiaries Literacy training beneficiaries

2012 330 8.334 2.936

2013 465 10.589 2.691

2014 465 12.314 4.025

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Subcomponent 1.2. Support for Farmers Organizations

Facilitation of linkages between FOs and traders through formal and informal agreements

Years FOs

involved

No of

marketing

contracts

Tons Producers

Involved

$

2012 146 44 1,375 3,650 373,000

2013 232 174 4,189 5,800 883,000

2014 299 365 5,782 11,821 2,000,000

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Níveis Componente Critérios Principais Indicadores

1 Visão

Clareza sobre porque existe,

vantagens e para onde querem

ir/chegar a médio curto e longo prazo

1. Os membros participam activa e espontaneamente na vida do

grupo e da comunidade (motivação, participação);

2. O grupo tem objectivos/metas claras de como atingir os

objectivos

1. Evolução/incremento do número de membros, pagamento

de cotas e jóias, etc.

2 Estratégia

Mecanismo/metodologia a usar para

alcance dos Objectivos

1. Estabelecimento de redes em regime de parcerias;

2. Estabelecimento de ligações de mercado

3. Planos de negócios

1. Número de parcerias estabelecidas

2. Número de ligações efectivas de mercado

3. Ciclo de revisão e planificação estratégica

4. Volume do negócio

5. Créditos beneficiados/pagos

6. Número de contractos estabelecidos

3 Cultura

Atitude, valores e normas

conscientemente percebidas

individualmente e colectivamente

dentro do grupo que concorrem para

materialização da visão

1. Gestão democrática

2. Constante elevação do nível de escolaridade dos membros

3. Os membros conhecem as normas valores internas

1. Cumprimento dos princípios estatutários

2. Equidade de géneros nos órgãos sociais 40%

3. Realiza Assembleias gerais ordinárias e extraordinárias

4. Tem regulamento interno e funcional

5. Transparência e prestação de contas

6. Percentagem do nr de membros que sabem ler e escrever;

4 Estrutura

Estrutura organizacional com funções

e regras bem definidas, canais de

comunicação e tomadas de decisão

transparentes e funcionais

1. Associação Legalizada

2. Associação Estruturada

3. Canais de circulação de informação bem definido

4. Tem sistema de gestão de actividades Económicas

5. Participação das mulheres nos órgãos sociais (quota)

1. Estatuto, registo legal

2. Estatuto, órgãos sociais e regulamento interno

3. Editais, cartas de correspondências internas

4. Livros de registos, realizar auditorias associativas

5. 40% mulheres nos órgãos sociais

5 Competências

Condições em recursos humanos e

oportunidade para melhoria das

capacidades através de formação,

treinamento e aquisição de novas

capacidades.

1. Tem Animadores formados e dinâmicos

2. Capacidade de gestão de património

3. Sistema de planificação funcional

4. Execução, prestação de contas e avaliação funcional

5. Gestores formados e dinâmicos

6. Boa capacidade de estabelecer parcerias de forma

independente

7. Bom cumprimento de requisitos de mercado

8. Membros sabem ler e escrever

1. Número de animadores por associação

2. Inventarios, planos de manuntençao e estado fisico das

infraestruturas e equipamento

3. Tem planos de negócios das actividades económicas

4. Relatorios de prestaçao de contas e auditorias

5. Número de gestores por associação

6. Numero de contratos estabelecidos com sucesso

7. Há maior produção e produtividade de ano para ano

8. 75% de alfabetizados

6 Recursos materiais

Existência de recursos materiais e

financeiros e Capacidades de

avaliar/contabilizar a falta desses

1. Tem posse legal de infra-estruturas

2. Tem conta bancária

1. Tem Sede Própria, Armazéns, Cantina, Moageira) e terras de

produção agrícola

2. Valor na conta bancaria

Classification/Graduation System

Support for Farmers Organizations

• Issues arising from implementation– At the start the Service Provider capacity was low for them to

effectively build the capacity of FOs – Use of a graduation system, SWOT Analysis to develop a plan for

tailor-made coaching for each Farmer Organization– Functional Adult Literacy and Business Training: market oriented

production - crop mix which gives more income and diversifies risk

– How to ensure sustainability of the work done in FOs Support?• Graduation system to create FOs that can successful manage businesses• If there economic gains to be made by joining and maintaining a FOs,

the members would want to continue• Improving the quality of contracts (volume and value per contract) and

their fulfilment • Professionalizing the FOs – have qualified people (hired), who can

manage the business – to pilot with Unions (experience from other countries)

Component 1: Development of more dynamic Market Intermediaries

Support to Input and Output Rural Traders

Demo Plots Small Scale Value Addition

Input and Output Trading

• Capacity Building (75 Traders)• Linking with input supply companies and large

scale buyers• Finance: Risk Management Fund (get input on

credit from input supply companies) andWorking Capital

• Promotion of Demand for Inputs: Demo plots, agricultural fairs

• Input cost support – seed vouchers• Trader Association Strengthening

Component 2: Enterprise Led Value Chain Development Initiative

• Identification of Value Chain Opportunities– Value Chain Study– Concept Notes– Strategic Investment Plans

• Matching Grant Facility– Support to Outgrower Schemes– Direct support to Private Sector (infrastructure and equipment)– Support to other Segments of the Value Chain

• Facilitation of Agribusiness Partnerships– Industry experts to mentor the value chain actors

• Experience – Corredor Agro Lda, over a 1,000 farmers in a contract farming

scheme (inputs on credit, extension services and buying back of produce) in Ribaue and Malema

– CAL had liquidity issues and closed down

Enterprise Led Value Chain Development Initiative

• Issues arising from implementation

– The need to support other segments of the value chain and not only support the value chain driver/leader

– The inclusion of farmer association presidents in the distribution of inputs and buying of produce reduced side selling

– With the experience of CAL, the need to give technical assistance to the lead private sector

Component 3: Improve the Market Environment

• Market Infrastructure– Roads Repair (678km) – Spot Repair and Infrastructures– Rural Markets Repair and Construction – 15 Markets with

improved sanitation facilities and market stalls

• Facilitating Access to Finance– Support expansion of financial institutions (6 outlets)– Link farmers and traders to financial institutions– Support to Community Based Financial Services (ASCAS -

Accumulative Saving and Credit Association)

• Improving Market Transparency– Dissemination of Market Information through Community

Radios • Information related to prices, transport costs, what producers have to

sell and what traders want to buy

– Support to MIC in activities of Agricultural Marketing• Forums for evaluating the Market Season – annual plans involving all

stakeholders to ensure a successful marketing season

Component 3: Improve the Market Environment

Roads

Component 3: Improve the Market Environment

Markets

Improve the Market Environment

• Issues arising from implementationRoads– The need for full rehabilitation and not only spot repair to ensure that

the District Governments have the capacity to carry out road maintenance

– Have roads that are “climate smart” – as some of the roads that were rehabilitated were destroyed with the heavy rains of the past two years

Markets– Where markets were constructed, will they be used by the intended

beneficiaries?Access to Finance– Even after supporting the expansion of MFI, still no products and

services for AgricultureMarket Information System– Information can be outdated (done weekly), during the peak of the

marketing season– To ensure sustainability, can the government take up the financing of

this as a public service?

Component 5: Nutritional Education

• Trainings for FOs on nutrition aspects

– demonstration and kitchen gardens,

– women peer-to-peer groups

• Community radio transmissions

• Nutrition classes in primary schools

Component 4: Policy/Institutional Support and Management

• Knowledge Management and Coordination

– Program Planning, Monitoring and Evaluation

– Support to DNDR in Knowledge Management

• Policy and Institutional Support

– Support to government partners (DPAs, DPICs, ANE, Roads Fund, FARE, DNDR)

• Program Management

– Program Management Unit and 3 Offices

– Implementation through Service Providers and Partners

– National, Provincial and District Reference Groups to support the Program

Component 6:

Institutional support to the Department of International Cooperation of the MFE

Manage the funds of the Unit

PROMER Activities are organized to resolve value chain challenges

Laws, Policies and Regulations Infrastructure Access to Credit and

Credit Management

Market Information

Producers Farmers´Organizations Traders Consumers

Inputs Business Management and other

Technical Training

Extension Services Knowledge Management

and Coordination

Produce

Information

“A chain is only as strong as its weakest link”

THANK YOU