IFAD Gender Strengthening Programme for East and Southern Africa Market Environment Case Study Mpongwe District/Kanyenda Village, Zambia

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4 1. Kanyenda is a relatively large village on the main road between Mpongwe and Luanshya, 14 km away from the Mpongwe, district capital, and 70 km of new paved road away from Luanshya, the main market town in the area. Kanyenda is 50 km by unpaved graded road from the main Lusaka-Ndola road axis from which it takes three hours to drive to Lusaka. The population is reported to be 187 households, or around 1000 people. Residents include an extension supervisor and five camp officers. Kanyenda has its own produce market, an Omnia depot and a number of private shops. 2. Mpongwe district is a booming frontier area, with low population density and abundant arable land available for homesteading. For this reason, it attracts a constant inflow of migration, coming from adjacent areas in Copperbelt province and from as far away as Southern province and northern Zimbabwe. It has a dual rural economy, with smallholder farmers coexisting alongside large commercial farms. The largest commercial operation in the district is Dar Farms Limited, with ha, much of it under extensive management for cattle ranching. Mpongwe Development Corporation (MDC) leads the district in terms of area under crop production (8 000 ha). Major crops grown by MDC are maize, soya, wheat and coffee. 3. The mobility map drawn by Kanyenda village leaders reveals that the main markets for village produce (mainly maize) are in Luanshya. Villagers selling in bulk hire transport to take their produce to Luanshya either for sale to Antelope flourmills or to Flamingo, a large-scale commercial poultry grower. The cost of transport to and from Luanshya is to kwacha (USD 1.60 to 2.40) per person round trip and kwacha per bag of produce. The cost of transport from Kanyenda to Mpongwe is kwacha (USD 1) round trip per person plus kwacha (0.5) per 50-kg bag. 4. Local women go to the dambo farms to buy vegetables for resale in the village. Villagers also buy fish from the fishermen at the river for resale, house to house, in the village. 5. When products are taken to markets outside the immediate area, men are more likely to take them to market than women. The village leaders travel to Lusaka two or three times per week. Trips to market in Soweto are combined with shopping trips. Most households have connections with relatives living in Lusaka or in Eastern Province. 1

5 6. According to farmers, the most important local products are maize, sorghum, sweet potatoes, pumpkins and cassava in that order (Kanyenda Appendix, Table 3). The products that bring the most cash are maize, groundnuts, chickens, goats and pigs. The easiest products to market are maize, sorghum, chickens and goats, groundnuts and sweet potatoes. The most difficult product to market is paprika, which has only one institutional buyer (Cheeta). Pigs are also difficult to sell because of high transport costs. 7. The main markets for local products are located in Luanshya (70 km from Kanyenda), even though Kanyenda has a daily produce market and Mpongwe, the district capital, is only 14 km away. The markets in Mpongwe are poor because they are farther into the interior where local purchasing power is weak and all farmers produce the same products at the same time of year. Meanwhile, farmers consider it risky to attempt to sell their products in Luanshya due to high transport costs and uncertain prices. For instance, during the harvest season, the price of goods in Luanshya sometimes falls below the price in the village in response to gluts on the market. The situation is exacerbated by inadequate market information and poor telecommunications (the telephone closest to Kanyenda is 35 km away at Masaiti district headquarters).,whpã0dunhwhg 8QLW 3ULFHÃLQÃ9LOODJH 3ULFHÃRXWVLGHÃ9LOODJH +DUYHVW 3HDN +DUYHVW 3HDN /RFDWLRQ 0DL]H NJÃEDJ à à à à /XDQVK\D 6RUJKXP NJÃEDJ à à à à /XDQVK\D 6ZHHWÃSRWDWRHV ÃNJ à à à à /XDQVK\D *URXQGQXWV ÃOLWUHVÃXQVKHOOHG à à à à /XDQVK\D *URXQGQXWÃVHHG ÃNJ à à =$06((' &DVVDYD ÃNJ à à à à /XDQVK\D &DEEDJH ÃNJ à à à /XDQVK\D 3XPSNLQV ÃNJ à à à à /XDQVK\D %HDQV ÃNJ à à /XDQVK\D 5DSH ÃNJ à à à à /XDQVK\D 7RPDWRHVòÃUDLQIHG NJÃER[ à à à à 7RPDWRHVòÃLUULJDWHG NJÃER[ à à à à &DEEDJH ÃNJ à à à à /XDQVK\D &KLFNHQVÃORFDO (DFK à à à à /XDQVK\D *RDWV (DFK à à à à /XDQVK\D 3LJV (DFK à à à à /XDQVK\D 3DSULND ÃNJ à à &KHHWDK &KDUFRDO ÃNJ à à 8. Villagers report that produce prices are rising but profits for maize are eroding because input costs are rising faster than output prices. In addition, maize production is falling due to excess rainfall, late delivery of fertilizer and the death of draught animals. Groundnut production is increasingly attractive because demand is strong and the crop needs few purchased inputs. Chickens are increasingly profitable because of price increases, at least partly because of declining production brought about by outbreaks of Newcastle disease. Goat prices are increasing as a result of high demand, but farmers are unable to increase their production on a stable basis. Leaders say that profits are rising for goats and chickens because these animals can be reared with little expense. However, the household interviews revealed that most farmers only sell when they face an emergency, selling mainly in the hungry season when the terms of trade are highly

6 unfavourable. Cabbage production and prices are highly erratic although profits are said to be rising. Tomatoes, on the other hand, were unprofitable in 2001 because of overproduction. When the maize crop failed, a large number of farmers had decided to plant dry-season tomatoes. 9. According to village elders the leaders of the village Kanyenda was founded in the 1930s by people who left a neighbouring village. At the time, land was plentiful and there was no hunger. Farmers planted maize, sorghum, sweet potatoes and beans. In the 1940s, cabbage, tomatoes, carrots, and rape were introduced. Hybrid maize and fertilizer were brought in during the mid-1940s. Credit was available to individuals for farm inputs, and government price supports sheltered farmers from the adverse effects of external economic shocks. The first gravel road was built in According to village leaders, the economic situation started to deteriorate in 1990 following economic liberalization. Maize prices declined with the abolition of pan-territorial pricing and the dismantling of the National Agricultural Marketing Board s (NAMBOARD) crop purchasing. Farmers had nowhere to sell and were forced to accept the low, farmgate prices dictated by private traders. Prices rose sharply when subsidies were removed and the kwacha was devalued. The 1992 drought caused farmers to default on their seasonal production loans and Zambia Cooperative Federation (ZCF) repossessed household goods when farmers did not pay. In 1995, corridor disease killed nearly all the cattle in the area and mechanized farmer-immigrants from Zimbabwe and Southern province were forced to revert to manual cultivation. Later, most banks closed, and farmers could not get any credit. When credit was reintroduced in 1999, farmers were forced to join cooperatives and to pay a substantial down payment to get seasonal production loans. The only positive things that occurred as a result of economic liberalization were increased availability of consumer goods, shops and minibus transport. The paving of the Luanshya- Mpongwe road in 2000 led to an upsurge of armed robbery and theft of crops and animals. 11. Village leaders classified households into three categories ranging from least poor to the poorest of the poor. The village s upper stratum, Category A, is food secure even in the face of widespread crop failure (as in 2001). They are able to cultivate 10 ha or more using tractors or oxen and hired labour. Category B is usually food self-sufficient, except in bad years. They live in mud brick houses with thatch roofs and they own goats, pigs or chickens, a vegetable garden, or a bicycle. They are usually able to cultivate enough land to feed the family plus a limited surplus for sale. Category C households either cultivate manually on their farms, which are under 1 ha on average too small for food self-sufficiency or they are unable to cultivate at all due to old age, poor health or disabilities 1. 1 This differs with the elder, sick and disabled being put in category D in other case studies. The reason for this discrepancy is that it is the villagers in each place who decide how many categories of wealth they want to put in the PRA exercise, and the description of the categories are also done by the villagers themselves. Thus the number of wealth categories may vary from village to village (usually between three and five), as will the description of each category. For an elaboration of this point, please see the Synthesis Report.

7 12. The village has five active groups relevant to enterprise development and marketing: a farmers cooperative; a group involved in growing groundnut seed for sale to ZAMSEED; a CLUSA-assisted group (CLUSA; Cooperative League of the United States of America, American NGO) involved in conservation farming; a group involved in maize production and input supply; and a youth club (Kanyenda Appendix, Table 7). The Kanchita farmers cooperative was established in 1999 to get access to credit for fertilizer. Its members are mostly A and B category households. The village s oldest group is the Tumbomboshe association. Established in 1993, it has 12 members (nine women and three men) who grow groundnut seed for resale to Zamseed. The CLUSA group established in 2000 has 50 members (34 men and 16 women) who are

8 engaged in conservation farming. The Buyant Asishi association, established in 2000, has 17 members (15 men and two women). The main activities are fertilizer loans and maize growing. The Zambian Orphans and Women s Association (ZOWA) was established in 1999 to assist orphans and widows to support themselves. It has 35 members (30 women and five men). The group s main activities are growing maize and soybeans. 13. According to Kanyenda s leaders, the groups which have made the greatest contribution to village development in order of importance are the groundnut seed growing group, the farmers cooperative and the CLUSA conservation farming group. The association for support of widows and orphans (ZOWA) and the Buyant Asishi maize farming club have yet to produce any benefits. Membership in enterprise groups is drawn from A and B category households whereas membership in ZOWA centres on C-category households. The members of ZOWA and the Tubomboshe groundnut seed growing association are mainly women, whereas the membership of the Kanchita farmers co-op and Buyant Asishi is mainly male. Membership in the CLUSA group is a third female and two thirds male. 14. Women in Kanyenda village identified a great variety of income sources, both for themselves and for the men. Women s main sources of income, as they ranked them in an exercise, are groundnuts, maize, sweet potatoes, sorghum (some women sell to breweries) and sweet beer. Other income sources identified for women were tomatoes, pumpkins, local eggplant, mangoes, chickens, okra, oranges, pigs, beans and goats. Some of these items are sold in the village or along the roadside, and others are taken to the market in Luanshya. Groundnuts are typically sold in the village and the buyers are individual, fellow villagers. Maize is mostly sold either at the market in Luanshya or to milling companies. Women report that there is also an extensive barter system related to maize. Sweet potatoes are sold to local traders at the market in Luanshya. Women and men own chickens and goats individually, and the individual owners control their own property. 15. Men s top five income sources, according to women, are maize, charcoal, vegetables (such as cabbage, tomatoes, onions and rape), goats and sweet potatoes. Income from charcoal selling is not seasonal and some even sell to a match company that comes into the area with trucks to buy. In addition, men make cash income from cassava, beans, sorghum, fish, pigs, sheep, cattle and chickens. 16. Out of the 13 sources of income mentioned by men, 92% (or 12) were agricultural products (the only exception was charcoal). Of these, almost 70% (nine out of 13) were crop products, whose yearly production is dependent on inputs, some of the inputs from outside the area. Their three most important sources of income cited in descending order were maize, groundnuts and tomatoes. Two of these (groundnuts and maize) were also cited by women as men s most important income sources. All 16 sources of women s income (100%) were agriculturally based, with 88% (14 out of 16) being crop products. Groundnuts, maize and sweet potatoes were the three most important sources of income for women. Groundnuts were perceived by both men and women themselves as the most important source of income for women (Kanyenda Appendix, Tables 9 and 11).

9 17. According to women, their main expenditures are: household goods, such as salt, sugar, cooking oil and soap; school fees; medical fees; maize grinding; and inputs, such as fertilizer and seeds. Since women and men cultivate separately in Kanyenda, both women and men buy inputs for their own plots. In addition to the items ranked most important, women also spend money on relish ingredients, clothes, hairdressing and beer drinking. Some women pointed out that only a few women drink beer. Men spend most of their money on beer, cigarettes and women, according to the women in Kanyenda. Thereafter, men s most significant expenditures are: hired labour; farm inputs, such as fertilizer and seeds; school fees; and medical expenses. Men were also reported to spend money on household goods, clothes, bicycles and livestock. 18. There was a significant difference for the Kanyenda farmers compared to the Libuko villagers in that Kanyenda farmers hire in farm labour whereas Libuko villagers hire out as pieceworkers on other farms. Generally speaking, the villagers in Kanyenda seem to be relatively better off than the villagers residing in the other two Zambian case study areas, because of their wide range of income sources as well as the kinds of items identified as expenditures. 19. In descending order, men cited food, fertilizer and seed as their three most important expenditure items. Both men and women mentioned beer as an expenditure item for themselves as well as for the other sex. While men rated beer as the fifth expenditure item for women, the women rated it as the most important expenditure item for men. More than 45% of men s expenditure items cited by men were related to agricultural production. However, the corresponding percentage figure for women was only 13% (Kanyenda Appendix, Tables 9 and 11). 20. According to the cash inflow calendar and the seasonal activity calendar with marketing completed by men (Appendix Tables 13 and 16), maize appears to be the major contributor to the high household income in the months of July, August and September. On the other hand, groundnuts seem to be the major contributor to household income earned from April to July. Data given by women was similar to that given by men in this regard. 21. According to men, the period from October to January sees the highest levels of expenditure (Table 14). This coincides with the need to purchase food during the hungry period, the period for purchasing farm inputs (seed, fertilizer, land preparation, etc.) and the time when school requisites (school fees and uniforms) must be met. Conversely, the low expenditure recorded in the period from April to August (Appendix Table 14), results from food availability and no need to make food purchases (as noted above, the highest expenditure according to men was on food). 22. According to women, the peak period of cash inflow for women is July to October, with a significant peak in August, when they start selling maize. The peak periods of cash outflow occur in November, December and January, with the expenses slightly less in December than in November and January. The women explained that this had to do with buying inputs in November (and some input purchasing in December, but not as much), paying school fees, and being forced by the hungry period to buy maize and mealie meal in January when the prices are relatively high.

10 23. The rains start in November and end in mid-april. Maize is planted from November throughout January, and the crop is sold from August onwards. Groundnuts are planted at the same time as maize. Fresh groundnuts can be sold towards the end of January and February, while dried groundnuts are sold from August to October. Sweet potatoes are planted from December to January and are harvested and sold throughout the year. Sorghum is planted from October to December, harvested in July and August and sold in September, October and November. Beans are planted from November through February, and may be sold (either fresh or dried) all year around. Pumpkins are planted form October to March, harvested from January through July, and sold from January through August. Irrigated crops, such as tomatoes, cabbage, onion and rape, may be planted and sold almost all year round due to abundant water access in the area. But their peak planting season tends to be March to July, with most of the selling happening during the remaining months of the year (August to February). The peak period for selling knitwear is in January and February, in order to get money to buy food, and the peak period for selling sweet beer and buns is from August to October, which is the time of year when people can afford the luxury. 24. The peak labour period for both men and women was from October to February. In October, men prepare fields for planting usually from November when the rains begin. The peak labour period for both men and women coincides with most of the rainy season. This is the period when most of the crop production-related activities are undertaken (Kanyenda Appendix, Table 16). June and July are also the peak period for women as they are involved in harvesting maize, as well as cutting grass for thatching houses. Charcoal burning is the most important off-farm activity undertaken by men (ranked fourth as an income source). The business is most lucrative in the rainy season when charcoal burning is most difficult and consequently fetches the highest price. Men also engage in charcoal burning from June to August. Goats, pigs and chickens are largely sold from November to January, a period characterized by high expenditure as noted above. In an average year, food stocks in Kanyenda village last for six months after harvest (from April) while, in a good year, the stocks are adequate to reach the next harvest. In a bad year, the food stocks last for only five months after harvest (Kanyenda Appendix, Table 16). 25. Apart from slight differences in the women s and men s ranking of the access and control over village resources, it is evident from both women s and men s exercises that men tend to control high value resources such as farms and cattle, as well as the most expensive farm tools and means of transport such as ox carts and tractors. Men also have total control of bananas and cabbage in Kanyenda, which is different from the other two Zambian case study villages. Women in Kanyenda tend to give themselves less control over important resources than women in the other two Zambian case study villages, despite the fact that they were significantly more outspoken and active in the groups and less visibly suppressed than women in the other two villages. Women in Kanyenda have almost equal control over maize (4:6), which is a big difference from the other case study areas. This might be due to the fact that women and men cultivate maize separately, and women do control their own produce. Although farmland is entirely controlled by men (0:10), land in the village is controlled as much by women as by men (5:5 separate plots), which might be explained by the matrilocal practices in the area (ie, husband moves to wife s village after marriage).

11 26. According to men, maize is a predominantly male-controlled crop from production to marketing. Men decide on purchase of improved seeds and fertilizer and on crop sales. Men entrust maize earnings to their wives for safe keeping, but women have little say over how it is spent (Kanyenda Appendix, Table 17). On the other hand, groundnuts are a predominantly female-controlled crop from production to sale. Not only do women keep the money from the sale of groundnuts, but they also control decisions on the use of the income and also on which seeds to plant, how many and when. Women use their own money to pay for the inputs (Kanyenda Appendix, Table 17). Women control their personally owned chickens and goats, while men control larger items such as land, cattle, tractors and the ox-drawn farm implements (Kanyenda Appendix, Tables 18 and 19). 27. Gender roles in marketing depend on who grows the crop, where it is sold and in what quantity. Women and men have separate fields and each buys their own inputs and markets their own outputs. Women also market and control the income from their personally owned chickens and goats, as well as groundnuts, sorghum and pumpkins. Marketing of other crops can be done by either sex, with the exception of charcoal, which is sold almost exclusively by men. From the access and control profile, it appears that tomatoes and paprika can be controlled by either sex, whereas cabbage is exclusively controlled by men. 28. When crops are sold at the farmgate, from the compound or in the village marketplace, women are more likely to market than men. But when they are transported to Luanshya for sale, men are likely to take over the marketing. When men sell in Luanshya, they usually control the income and decisions regarding its use. 29. The main marketing problem identified by the women in Kanyenda was no organized market. The cause of this problem was identified to be lack of leaders who could organize the villagers and represent them properly. Their coping mechanism is to sell ad hoc and in small quantities at relatively low prices. The suggested solution to this problem was for the women villagers to get training in organization and leadership as well as to start contributing money to build a market. 30. The second problem identified by Kanyenda women was the high cost of inputs such as fertilizer and seeds. The cause of this was put entirely on the government, and the only solution they could see was that government should intervene. 31. The third problem identified by the women was that they had no control of the selling price. The cause of this, according to the women, is that all of them sell their produce at the same time, so markets are glutted with the same products, while buyers are few and have great bargaining power. The women also said that they have few other sources of income than maize (which was a bit surprising, after having seen their extensive list of sources of income) and are therefore forced to sell maize immediately after harvesting. Their coping mechanism is just to continue selling their produce when they have to. They suggested two solutions to the problem. One was to diversify their produce more in order to have a variety of income sources. This would enable them to store the maize for a while and sell it at a time of year when the prices are higher.

12 The other solution was very similar to the inventory credit component of the IFAD-financed Market Linkage Programme in Zambia: SHEMP (Smallholder Enterprise and Marketing Programme), with maize storage as collateral for bank loans. 32. The main problems identified by men were: no market, low producer prices, long distance from input suppliers and poor condition of feeder roads. The complaint about the lack of a market does not refer to physical market infrastructure as the village has its own outdoor produce market. The complaint about distance from input suppliers is surprising because one of the village storekeepers became an input supplier under the CARE/REAP programme. The problem of farm to market roads is serious as some sections of the village are 13 km from the main road and the paths are impassable by motor vehicles in the rains. 33. The problems identified by village leaders were similar: high cost and late delivery of fertilizer, low prices and lack of markets for crops, and price fluctuation. The potential solutions identified were to cooperate with one another in input buying and crop selling and to use crop rotations and organic manure to decrease the need for fertilizer purchase. 34. For the smaller traders there is a very definite lack of liquidity to build up/expand their operations. They often have inadequate supplies to fully respond to demand and generally lack the funds to go to the client. This means that farmers who have holdings at a greater distance from the trader often the poorer farmers are frequently kept from obtaining inputs. 35. Generally, the traders do not give credit, but a few farmers who are well known to the traders are able get supplies and pay later. However, smaller traders who are trying to expand their businesses are sometimes willing to give credit (in one case equivalent to 50% of the value of the purchase). Women are recognized as much better credit risks than men. Yet it is hard to expand the number of women buying inputs, since many women find it difficult to come to the shops. Female heads of households do not experience this difficulty, as they tend to operate more like male farmers. 36. As in the other two Zambian market environment case study areas, the ability to supply inputs in small packages is a key to selling to smallholders in the Mpongwe area. While one-kilogram packs of fertilizer are common, chemicals (mainly for vegetables) are not broken down into small units. Seed packs are also not broken down, but tend to come in smaller units so are less of a problem. 37. It was observed that women have more problems with marketing their vegetables than men who tend to be more dynamic and willing to group together to find transport to get their products to market. As one villager put it, women are fine at organizing groups, but not when money is involved. 1 Two traders interviewed in Mpongwe market centre (Omnia SmallScale and Gilead Investments) and two outside of Mpongwe centre on the road (two CARE/REAP-trained traders: Peter Phiri and Msukuma Grocery).

13 38. Of the farmers in this area that received credit through the Food Relief Agency for fertilizer, only 10% were women. 39. Antelope Milling, large milling company based in Luanshya, buys from smallholders, commercial farmers and rural traders. If more than 100 bags of maize can be assembled, Antelope Milling will send one of its trucks to pick up the bags. This represents a considerable incentive for the formation of farmers enterprise groups, as transport is always a constraint and use of minibuses the common means of transporting produce for smallholders and frequently for smaller traders. 40. The Kalowa Trust, a locally based NGO, was the only NGO operating in the area, apart from CARE that is running the Rural Enterprise and Agribusiness Promotion (REAP) pilot programme based in Ndola. Kalowa Trust is running the Intermediate Means of Transport Project to promote technologies, such as donkey carts and bicycles with trailers. Both are particularly suitable for women since women can handle donkeys much more easily than oxen and the cost is lower. It was a follow-up activity to a successful pilot run by the Ministry of Agriculture/Mpongwe that trained some 40 farmers with donkeys and introduced four donkey carts and 12 bicycles with trailers to both women and men. About 300 farmers applied for donkeys, of which the majority were women. While still early in the NGO s activities, the pilot programme indicates that this could be a promising initiative for introduction to other areas. 41. Mpongwe district has excellent potential for production of marketable surpluses thanks to a relatively favourable situation, with low population pressure and abundant fertile land. Many private traders come to buy maize in the area. However, farmers face high risks in marketing their crops due to distance from markets, high transport costs and lack of market information. The prices in Luanshya in the peak harvest time are often lower than those in the village. Reliable and locally-specific market information on which institutional buyers are open for buying from what date and at what price is an urgent felt need among most farmers in the area. 42. Because of the abundance of land and good natural fertility, nearly all able-bodied farmers are capable of producing crops for the market. Hence all able-bodied households are potential beneficiaries. 43. Because women have separate fields under their personal control, married women should be a target group for market linkage activities not just women heads of households. 44. Women manage to control the income from crops marketed locally in the village market but, when crops are marketed in Luanshya, men take control of income and decisions on how to spend it. During the process of commercialization, special efforts are required to safeguard and reinforce women s control of crops and of the income from their sale.

14 . 45. In Mpongwe district, the main interest in market linkages lie among households producing a marketable surplus. These include both A and B category households. Category A households could benefit considerably from SHEMP, and Category B households could benefit substantially. The C category households correspond to Category D elsewhere, who are unable to cultivate enough land to feed themselves due to old age, illness or disabilities. They are not an appropriate target group for market linkage activities, but could benefit indirectly from improvement of the terms of trade for the products they sell to meet emergency consumption needs. 46. The likely beneficiaries of SHEMP are shown below, by socio-economic status. Some target-group neutral components like roads will benefit the entire population of the areas benefiting directly from better road access. Support for market intermediaries benefits the intermediaries themselves (AA) and the village households involved in business (A). 1 Government of Zambia

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