Technical Report: SATH Regional Price and Market Information Study

Transcription

1 Technical Report: SATH Regional Price and Market Information Study Gerrit Struyf and Eric Sommeling, Consultants Submitted by: AECOM International Development Submitted to: USAID/Southern Africa December 2011 USAID Contract No. 674-C DISCLAIMER The author s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. PO Box Plot 50668, Tholo Park, Fairgrounds Gaborone, Botswana Phone (267) Fax (267) info@satradehub.org

2 TABLE OF CONTENTS TABLE OF CONTENTS... 2 LIST OF ACRONYMS... 5 EXECUTIVE SUMMARY INTRODUCTION REVIEW OF EXISTING PRICE AND MARKET INFORMATION SYSTEMS Desk Review of Regional Initiatives Zambia Initiatives ZNFU Introduction Analysis of the Quality of the System Efficacy of the Business Model AMIS Introduction Analysis of the Quality of the System Efficacy of the Business Model ZAMACE Introduction Analysis of the Quality of the System Efficacy of the Business Model TRANSZAM Introduction Analysis of the Quality of the System Efficacy of the Business Model E-extension (under development) Introduction Analysis of the Quality of the System Efficacy of the Business Model Malawi Initiatives ACE Introduction Analysis of the Quality of the System Efficacy of the Business Model ESOKO

3 Introduction Analysis of the Quality of the System Efficacy of the Business Model South African Initiatives Introduction AMT (AGINFO) Introduction Analysis of the Quality of the System Efficacy of the Business Model SAFEX Price/Market Information System Development Trends Conclusions General Conclusions, Not System Specific System Specific Conclusions IDENTIFICATION AND ANALYSIS OF INFORMATION GAPS IN ZAMBIA AND MALAWI Brief Value Chain Analysis of Selected Commodities Zambia Maize Legumes and Oil Seeds Vegetables Livestock Malawi Maize Legumes and Oil Seeds Vegetables Livestock Information Gaps Faced by Farmers Small-Scale Farmers Large Scale and Corporate Farmers Information Gaps Faced by Traders Small-Scale Traders Major Commodity Traders/Exporters/Processors Information Gaps Faced by Other Actors Finance Sector

4 Government Agencies RECOMMENDATIONS FOR PRICE/MARKET INFORMATION SYSTEM DEVELOPMENT Recommendations for Development of Regional Information Systems TRANSZAM Provision of Regional Information From Existing Systems on Commercial Basis Recommendations for Country Based Systems with Regional Replication Potential ACE ZNFU E-extension System ZAMACE ESOKO ANNEX 1: Detailed Description of E-extension system ANNEX 2: TRANSZAM Grant Concept Proposal ANNEX 3: Risk Management ANNEX 4: SATH Methodology for TRANSZAM Development ANNEX 5: SATH Methodology for AMT Development ANNEX 6: SATH Methodology for ACE Development ANNEX 7: SATH methodology for ZNFU Development

5 LIST OF ACRONYMS ACE Agricultural Commodity Exchange (Malawi) ACTESA Alliance for Commodity trade in Eastern and Southern Africa AGRA Alliance for Green Revolution AMD Agricultural Markers Division AMIC Agricultural Market Information Center AMIS Agricultural market Information System AMITSA Agricultural Input Market Information and Transparency System BVO Bid Volume Only CFC Common Fund for Commodities CFU Conservation Farming Unit COMESA Common Market for Eastern and Southern Africa COMRAP COMESA s Regional Agricultural inputs Program CSO Central Statistics Office DFID Department For International Development DMDO District Market Development Officer DRC Democratic Republic of Congo EAC East African Community EU European Union FEWS NET Famine Early Warning Systems Network FISP Farm Input Support Program FRA Food Reserve Agency GoM Government of Malawi GRZ Government of the Republic of Zambia HQ Head Quarters ICT Information and Communication Technology IDEAA initiative for Development and Equity in African Agriculture IFA International Fertilizer industry Association IFDC International Fertilizer Development Center IR Intermediate Result IT Information Technology M&E Monitoring and Evaluation MACE Malawian Agricultural Commodity Exchange MACO Ministry of Agriculture and Cooperatives MLI Market Linkage Initiative 5

6 MT NGO OVO QC RMM SA SACAU SADC SAFEX SATH SHEMP ADC SI SMS STTA TA ToR WFP ZAMACE ZNBC ZNFU Metric Ton Non-Governmental Organization Offer Volume Only Quality control Risk Management Matrix South Africa Southern African Confederation of Agricultural Unions Southern African Development Community South African Futures Exchange Southern Africa Trade Hub Smallholder Enterprise and Marketing Program Agribusiness Development Component Statutory Instrument Short Messaging Service Short Term Technical Assistance Technical Assistance Terms of Reference World Food Program Zambia Agricultural Commodity Exchange Zambia National Broadcasting Corporation Zambia National Farmers Union 6

7 EXECUTIVE SUMMARY The objective of the study is to identify and analyze sources of price and market information in key countries in the Southern African region. The analysis of the information systems focuses on the quality of their service offerings and the efficacies of their business models. The study also identifies price and market information gaps for the Southern African Trade Hub (SATH) strategic value chains as well as other staple foods and commodities. From the analysis, recommendations are made to SATH to encourage private sector/commercial actors to cover gaps in the market. Main Findings 1. Review of Existing Price and Market Information Systems Based on a desk review of regional price and market information system initiatives and an in-depth review of systems in Malawi, South Africa and Zambia, the following main findings are noted: General conclusions (not system specific) with regards to price and market information services reviewed (also in relation to viable business models) are: A number of information services, either country or regionally based and mostly government or donor funded, are operational in the region and provide relevant price and market information. Currently this information from different sources is not systematically collected, repacked and offered commercially to interested parties Most of the price and market information systems are based on the following 2 models: Price and market information is collected from the various traders/processors/exporters/etc. in the market. Price and market information are discovered from transactions over a commodity exchange. This type of price and market information is more transparent and easier to collect provided the commodity exchange is functional. The only price and market information system providing relevant information that operates on a sustainable business model is SAFEX. However conditions in South Africa diverge significantly from all other countries in the region. Replication of the SAFEX system in other countries requires not just the setup of an exchange but also the creation of an environment in which the exchange can operate. The exchange is extremely vulnerable to external factors which it has no or limited control. An exchange will have to successfully address the following external issues: Lobbying with government to change its policies in interference in the market. To date, this has not been successful in any of the countries. Lobbying with government to enact a legal framework (including certified warehouse operation) in which an exchange can operate; this is a very slow process. Establish warehouse operators and a warehouse receipt system, there are very few warehouses providing secure storage of products according to industry specification and/or warehouse receipt systems. This also must be connected to an exchange. 7

8 A price and market information system that is linked to a commodity exchange can only work if the commodity exchange itself operates satisfactory (high turnover, high number of transaction, and financially self-sustainable). Collection of actionable price and market information through an administrator- ZNFU 4455 or through enumerators-esoko is feasible and relatively cost effective. To get information to the end users (farmers, traders) through ICT, two methods were found: A SMS push system (ESOKO) provides a large number of persons with information, yet holds the following constraints: o Expensive, for example, to reach 20,000 users with 1 message will cost approximately US$1000. o Focused on an exclusive group with no market information available/provided to a larger community. o All users of the platform need to be registered. o Payment of subscription fees for individual farmers/traders (ESOKO bronze membership US$25/year) is not working in practice as the uptake has been very low and collection costs for subscription fees are high. o There is a need to regularly update the registry of users as there will always be a percentage of the phone numbers no longer used. This can be done if individual users have to pay for the service, which is currently not the case. A SMS pull system (ZNFU 4455), through which the user initiates access to collected market information. This is cost effective from a point of view of SMS costs (users pay), however has the following constraints: o Experience has shown that unless continued promotion takes place, the number of users will drop significantly. o High costs of promotion. o Major training on how to use the system is required, which is costly. o Revenue collection can be done through a revenue sharing agreement with a cell phone company. However revenue is small due to the limited number of messages and small fees charged. The limited number of messages through the system is due to the low repeat usage of the system and limited number of users that can be reached. A price and market information system that is only based on provision of price and market information (collected from various traders/processors/exporters/etc.) cannot provide a viable business model, particularly outside of South Africa, due to: Individual end users are not prepared to pay substantially for the information The cost of getting the information to the end user is high The bulk of end users (farmers) do only require market information for a limited period per year The following developments are currently underway: ESOKO is developing their system to provide a business tool to companies subscribing to the platform that will enable companies to communicate more effectively with their registered users (buying agents, distributors, farmers, etc.) ZNFU (E-extension system) is developing their information services in the following direction: o Provision of trading platform to farmers and traders o Communication system to farmers, companies and government (extension services) o Location based information system to farmers (events, etc.) o Market information 8

9 o Link to major mobile phone operator in terms of promotion costs and income generation of the system For the following systems that have at a business model, although they may not be viable, specific conclusions are noted: South Africa AMT: AMT is able to provide market and price information to a large customer base (banks, trading houses, magazines, etc.) based on subscription fees by South African based organizations AMT seems to operate on a viable business model Although AMT claims to provide regional agricultural data, in practice it limits itself to providing information on direct trade between South Africa and countries in the region. There is no information provided on markets in the AMT reports on market and price information and trends of countries in the region. AMT has the potential to collect regional market and price information from existing systems (ACE, ZNFU 4455, FEWS NET, etc.), repackage this information and offering it commercially to both SA based and Southern African regional customers. Zambia ZAMACE A number of key conditions for successful commodity exchange are not in place, including: o The Agricultural Credit Act has not been enacted through appropriate statutory instruments (SIs) making it difficult to operate certified warehouses. o Interference in the maize (main commodity) market through government programs. The business model depends on the volume of trade on the exchange. In its current format, the exchange does not generate enough revenue for its operational cost ZAMACE has been highly dependent on donor funding (USAID) and until the current restructuring exercise addresses business model issues/financial sustainability, it will not survive. Malawi ACE A number of key conditions for successful commodity exchange are operational, including: o It is possible to operate certified warehouses, however only 4 are operational o There is limited interference in the maize market through government ACE in its current operation is not able to be financially viable and will need to continue to rely on donor funding to operate. ACE is operating as a project and will need institutional anchoring for long term survival. The plan to increase trade and income for the exchange focuses on increasing the usage of the ESOKO platform to reach out to more traders and farmers. This appears to be unviable as the running costs of the additional services outweigh the expected incomes (i.e. the projected extra cost for the 20 call centers is US$120,000 while the projected total trade of the exchange is US$95,200.) Zambia E-extension 9

10 Currently in development phase and not yet operational yet there is active interest by MUSIKA (a Zambian agribusiness development program) to further develop the system nationally Goes beyond the provision of just market information, including communication tools, direct marketing tools, a trading platform, etc. Potential for a viable business model are in place (airtime, payment for business information, subscriptions by major companies/grz, etc.) The system is still in the development phase and will need to be properly piloted based on which national roll out/scaling up and regional roll out could take place Malawi ESOKO Off the shelf market information platform that requires minimum time to implement. The company, Wellspring, is still in the process of developing and exploring the business opportunities for the ESOKO platform in Malawi. There are a number of opportunities for the platform to create revenue, however for all of these opportunities it is still necessary to see if they will actually generate enough revenue to cover the platform and make a profit. If the current subscribers of the platform (a total of 12) would pay for the subscriptions, users could require a gold subscription (US$ 1500 per year), and the system would generate an income of US$18,000 per year. If the revenue from subscriptions is the main source of revenue, this would require a substantial increase in the number of subscribers. There is a large element of donor participation compared to private sector participation. The users of the system are mainly donor funded, with the advantage that these users are more likely to buy into the system and will also pay for additional services like training and other consultancy services required. Zambia TRANSZAM It is not possible to finalize conclusions as the system has been running for about 3 months and is in a testing/promotion phase Potential for a viable business model are in place (transporters paying subscription fees) Major income and business model success is likely to come from regional transporters who could make the business model viable. However more work will need to be done to develop TRANSZAM into a successful regional transport information system 2. Identification and Analysis of Information Gaps in Zambia and Malawi Based on the value chain analysis of SATH strategic crops and commodities, desk reviews and interviews of key parties that requiring market and price information are noted: Small-scale farmers lack information with regards to: Inputs: where to source, price and how to use some of the inputs and credit access Production: technical knowledge, post-harvest, product specifications required by market and location and access to service providers Processing and storage: storage options and storage knowledge Sales and distribution: finding transporters and making use of backloads Market: price information, product specifications required by market and where to find major traders and processors 10

11 Large scale and corporate farmers lack information with regards to: Processing and storage: storage options Sales and distribution: making use of backloads Market: some farmers sell to a brokers/traders based on relationship rather than price information Small-scale traders lack information with regards to: Processing and storage: storage options, storage knowledge and access to finance (warehouse receipting) options Sales and distribution: finding transporters and making use of backloads Market: location of small-scale farmers with good quantities for sale, prevailing prices in production areas, price information end users (processors, exporters, etc.), product specifications required by market Major commodity traders/exporters/processors lack information with regards to: Sales and distribution: making use of backloads Market: difficulty to access commodities more directly from small-scale farmers, prices of competition, import/export procedures and regulations and production forecasts both local as well as regional Recommendations for Price/Market Information Development Based on the main findings, the following recommendations are made to help encourage private sector and commercial actors to provide/further develop price and market information systems based on a business model. Recommendations for the Development of Regional Information Systems: TRANSZAM Actively pursue/support the further development of the transport platform TRANSZAM Support the implementation of the transport system TRANSZAM in the following areas: o Invest in the upgrade of the platform to include all countries in the region, considering the need for further expansion of functionality in the following areas: allow browsing using mobile phones, advertising on the platform and customer rating/reviews of transporters. o Promotion of the platform in the countries in the region: Tanzania, Malawi, Mozambique, South Africa, Namibia, Zimbabwe, DRC and Botswana. Provision of existing regional information on a commercial basis Actively pursue/support the information development whereby information from existing information systems operational in the Southern African region is systematically collected, repacked and offered commercially to interested parties. Engage organizations like AMT on a consultancy basis to review possibilities for the systematic collection of price and market information from existing regional information systems, repackage this information and possibilities to offer the information on a commercial basis to both SA as well as regional customers. Provide a competitive grant for the systematic collection of information from existing regional systems, repackaging and commercial offering of this 11

12 information to SA and Southern African regional customers. Potential organizations which could make use of the competitive grant include AMT, SAFEX and commercial banks. Recommendations for Country Based Systems with Regional Replication Potential: ACE Actively pursue/support the further development of ACE (including its price/market information system) Support ACE with the development of a market based (donor funding only for limited investments/start up costs) business plan for the organization. The development of the ACE business plan (including financing plan) will include the following aspects: o The development of the ACE business plan should be done by a highly qualified business consultant o The ACE business plan development should consider: institutional anchoring, strategic development, business plan, review of user charges, viable establishment of certified warehouse, access to ACE price/trade information to key stakeholders and earmarked support Based on the ACE business plan SATH may consider providing limited start up support for viable/sustainable ACE operation ZNFU E-extension system Actively pursue/support the development of the E-extension system in conjunction with MUSIKA Pursue the E-extension system in terms of supporting the implementation of a proper pilot phase/operationalization around 3 districts and making the pilot results relevant for a potential regional roll out of the E-extension system A number of key conditions linked to the development of a sound business model need to be fulfilled/confirmed: o Confirmation by the selected mobile phone provider that it will be possible to charge users o Revenue sharing agreement between Airtel and ZNFU that enables a viable business model Based on piloting, result effect changes on the E-extension system in terms of increasing the effectiveness of the system and the development of a viable business model Based on the piloting results (effectiveness of E-extension system and business model development), roll out the E-extension system nationally (all major agricultural districts) and review possibilities for regional roll-out ZAMACE It is recommended not to actively pursue/support the further development of ZAMACE Closely follow ZAMACE developments over the coming months and review progress in areas of; ZAMACE merger with Lusaka stock exchange, development of the agricultural credit act and involvement/interference of GRZ in the maize marketing (FRA operations, export bans, etc.) If substantial progress is made, reconsider possible support to ZAMACE ESOKO It is recommended not to actively pursue/support the further development of ESOKO 12

13 Closely follow ESOKO developments over the coming months and review progress in areas of: franchise development of Wellspring and ESOKO system information provision to farmers, traders, etc. in terms of business model development (shift from donor dependency to private sector income generation) If substantial progress is made, reconsider possible support to ESOKO to support business model development and upscale viable (private sector paid) ESOKO price/market information systems in Malawi and the region 13

14 1. INTRODUCTION The overall goal of the Southern Africa Trade Hub (SATH) is to increase international competitiveness, intra-regional and international trade and food security in the Southern African Development Community (SADC) region. Under SATH Objective 2 Increased Trade Capacity and Regional Value Chains and Intermediate Result (IR) 2.4: Increased Use and Availability of Trade-Related ICT Products, this consultancy has been engaged. This report is the final deliverable to identify existing sources of price and market information, analyze gaps in price/market information in key commodities, and recommend ways and interventions SATH can address gaps in price and marketing information. 2. REVIEW OF EXISTING PRICE AND MARKET INFORMATION SYSTEMS 2.1. Desk Review of Regional Initiatives There are a number of regional initiatives providing price and market information to the agricultural sector using ICT. Based on desk reviews, information is provided with regards to these systems concerning the type of information collected, the dissemination method, target groups, business model and analyze the quality of the service offered. Table 1 provides a brief overview of 13 price and market information systems reviewed and the regional and country specific systems are described in detail below. Regional systems As noted in the table, most platforms developed are at the national level and only two platforms, Agricultural Input Market Information and Transparency System (AMITSA) and Famine Early Warning Systems Network (FEWS NET), cover more than one country. AMITSA is also the only platform that provides information on inputs. Zambia systems In Zambia, there are currently three platforms running: the commodities exchange ZAMACE, the ZNFU 4455 market information system, and TRANSZAM, a platform linking the agricultural sector (and others) with transporters. Malawi systems In Malawi, there are three initiatives: the Agricultural Commodity Exchange (ACE), the ESOKO platform and a project called MACE/IDEAA. Kenya systems In Kenya, there are two initiatives: the commodities exchange KACE and NAFIS, an agricultural information platform of the government. It should be noted that KACE is based on the same design as the exchange in Zambia and Malawi. NAFIS is an agricultural information system of the Kenyan Government, available for free. Except for providing market and price information, the platform is designed as a tool for the extension service of the government. Characteristics of NAFIS include: Government extension service Electronically generated voice information service available in English and Kiswahili languages No additional charges beyond the normal telephone and internet charges The system provides general information on crops, livestock and market prices, including inputs, services, produce and products 14

15 The information is collected through the government extension services whereby field officers upload the data using an internet based menu system Uganda systems In Uganda, there are two platforms operating that provide market and price information: the exchange, UCE, and INFOTRADE. UCE is based on the same design as the exchange in Zambia and Malawi. INFOTRADE is a project initiated by Agricultural Sector Program Support, the agrobusiness division of DANIDA and FIT Uganda, Ltd., the private partner running the platform. The platform provides information on market prices for 46 commodities in 22 markets. The information is provided free to users, and the information can be accessed weekly and in the annual Agricultural Market Report. This information is also sent to 18 radio stations in the country and displayed on notice boards in the markets. The information is accessible by SMS text messages by sending a SMS message to the platform with the information requested. South African systems In South Africa, a large number of players provide market and price information to the industry: the commodity exchange, SAFEX, for following commodities traded over on the exchange: white and yellow maize, wheat and soya beans and cake. COMMODITYINSIGHTS is a web based news information platform based in India. The website gives real-time news, analyses and price data from Indian commodity exchanges, MCX and NCDEX, along with trade information generated by their own research team. General information on the website is free and more detailed information is provided on a subscription basis. The information provided is live data from the commodity exchanges MCX and NSDEX, various price charts and economic articles on base and precious metals, oil prices and agricultural commodities. Price information is provided from the commodity exchanges MCX and NSDEX for Barley, castor oil seed, Copper, Coriander, Cotton seed cake, Crude oil, gold, guar seed, maize, pepper, potato, silver, etc. For the website COMMODITYINSIGHTS no further detailed information will be provided as it focuses mainly on the Indian market. Table 1: Summary of price and market information systems Name Country Description AMITSA Regional Is run by international fertilizer development center (IFDC) Provides price information on inputs Free service There is no business model as the platform is a public service Information is available on the internet; are in the process of implementing ESOKO platform to distribute their data FEWS NET Regional USAID funded activity/project Early warning/vulnerability information on emerging and evolving food security issues Local market and cross border markets price information on major food crops Free service There is no business model as the platform is a public service Information is available on the internet 15

16 ZNFU 4455 Zambia Run by the Zambia National Farmers Union Provides buying prices and contact details of companies buying produce To access information the user pays for a SMS text message. There is no business model as the information is a public service. Information is available through mobile phone by SMS text messages and on the internet ZAMACE Zambia Is run by the commodity exchange, ZAMACE. Provides transactions over the exchange and the bids on the exchange. Users pay a commission on trade; the trade information is available on the internet for free. Based on the fees charged to trade over the exchange Information is distributed by to a mailing list and available on the internet TRANSZAM Zambia Is run by the Zambia National Farmers Union Provides offers on goods to be transported and offers on empty backloads. Transporters pay an annual user fee; to promote the platform it is free for the first 6 months. Fees from the transporters subscribing to the platform Information is available on the TRANSZAM website MACE/ IDEAA Malawi Is run by a 5 year project by MACE, funded by Initiative for Development and Equity in African Agriculture (IDEAA) Provides collected prices of commodities in 13 markets and submit offers to buy or sell in 45 markets Users get the information for free Based on brokerage fee charged when linking buyer/seller. User get access to the information by SMS and can send offers through SMS; there is also a radio program where users can submit offers ACE Malawi Is run by the commodity exchange in Zambia Provides transactions over the exchange and the bids on the exchange. Users of the exchange pay commission on trade; the trade information is available on the internet for free. The exchange uses the ESOKO platform to disseminate trade opportunities to registered traders and farmers. Based on the fees charged of trade over the exchange Information is available on the internet and SMS text messages are sent to registered users. ESOKO Various countries in Africa Including Malawi Is run by ESOKO Networks (Ghana), the platform was introduced in Malawi by MLI. The company, Wellspring, acquired the franchise to run the platform in Malawi and will be running the platform from the end of Provides information on commodity prices and price offers Corporate users pay subscription to communicate with registered individual users. Individual users can subscribe to market information for certain products. Based on company and individual user subscriptions. Other potential revenue streams are still in development; these are revenue from consultancy service and selling market information to other parties like financial institutes. Currently 11 organizations/companies subscribe to the system (paid for by the MLI). Two organizations have paid themselves. 16

17 Subscriptions are paid yearly. No individual users have subscribed to the platform; charging individual users is a challenge in terms of fee collection and willingness to pay for the information. The other revenue streams still have to be developed. Information is available by SMS text messages and on the internet. KACE Kenya Run by the Kenya commodity exchange Provides information on transactions over the exchange and the bids on the exchange. Users of the exchange pay commission on trade Based on the fees charged of trade over the exchange Information is available on the internet, interactive voice response using phones, SMS text message using a subscription, 5 market information kiosks NAFIS Kenya Run by the Kenya Government Provides information on price information and production information on Dairy Cattle, Dairy Goats, Bee Keeping, Maize Production, French Beans, Tomatoes, Grain Amaranth, Indigenous Chicken, Layers, Broilers, Ostrich farming, Fruits, Mangoes, Sweet Potatoes Free service No business model, is a public service Information is available on the internet and by phone, voice interactive. UCE Uganda Run by the Uganda commodity exchange Provides information on transactions over the exchange and the bids on the exchange. Users of the exchange pay commission on trade Based on the fees charged of trade over the exchange Information is available on the internet Infotrade Uganda Run by FIT Uganda Ltd and the Agricultural Sector Program Support, the agro-business division of the DANIDA Provides market information on 46 commodities in 22 markets. Information is free No business model Publishing of weekly and annual Agricultural Market Report, sends information to 18 radio stations, SMS messages, Notice Boards in markets SAFEX South Africa Run by the commodity exchange in South Africa Provides information on transactions over the exchange Users of the exchange pay commission on trade Based on the fees charged of trade over the exchange Information is available on the SAFEX website and through agricultural business houses Agricultural business houses (Afgri, SENWES) South Africa Run by the companies Provides latest market prices Users receive this information for free as they are clients to the business houses. Agricultural business houses provide market information as a service to their clients. Information is available by and on a mobile phone application The South Africa A pilot project started in 2004 whereby about 100 farmers 17

18 Makuleke Project receive market information on their internet enabled mobile phones The service is free (farmers only pay for their cell phone subscriptions). In future the project would like to change to a subscription-based model in which farmers pay a set fee and can then use the service as much as they want. If successful plans to roll-out similar projects across SA and the rest of Africa. Does not seem to have gone beyond pilot phase, no further information found on the up scaling of continuation of the project. Some of the information platforms are designed as a public service and are funded by donors or national governments. Other platform are based on a business model by either providing the information at a cost for the end user or providing the information for free, but linking the user of the information to a company. Detailed description of AMITISA Name and details service Name: Launch date: November 2009 Country: Website: AMITSA (Agricultural Input Market Information and Transparency System) Burundi, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia (Hosted in Kenya) Contact details: AMITSA Coordination Supporting organizations c/o IFDC, East and Southern Africa Division, ICIPE Campus, Kasarani, Off Thika Road. P. O. Box , Nairobi, Kenya Tel: / F: info@amitsa.org IFDC (international fertilizer development center) EAC (East Africa Community) COMESA (Common Market For Eastern and Southern Africa) Partnerships in data collection Croplife (global federation representing the plant science industry) IFA (International Fertilizer Industry Association) AFSTA (African Seed Trade Association) COMRAP (COMESA's Regional Agricultural Inputs Program) STAR (Strengthening Trade in Agricultural Inputs at a Regional Level in Africa) ACTESA (Alliance for Commodity Trade in Eastern and Southern Africa ) AGRA (Alliance for a Green Revolution) ESASA (Eastern and Southern Africa Seed Alliance) 18

19 CATALIST (Catalyze Accelerated Agricultural Intensification for Social and Environmental Stability) EADN (Extending Agro-input Dealer networks) Description of the service A web based input market information system that addresses the lack of information about agro-inputs. The objectives of the system are to: Improve access to timely data and information describing agricultural input markets for the benefit of all stakeholders, farmers, traders, manufacturers, etc. Establish business linkages developed among agricultural input importers from different countries and regions and international input manufactures and traders Reduce input procurement costs Increase the use of inputs thereby increasing agricultural productivity Improve food security and accelerate economic growth AMITSA described itself as: in its growing phase, both geographically and in terms of contents and services. It was established in 2009 to fill a major void on information on agro inputs (fertilizers, seeds and pesticides), and built to complement / interact with other existing and new MIS, whether private or public, national or regional, commodity-based or not. We see ourselves as catalysts for various efforts in SSA in this field, rather than primary producers of market information. The information collected is: Monthly international prices of fertilizer Monthly prices of fertilizer in the participating countries Monthly prices of about 10 pesticides in the participating countries Monthly prices for legume bean and hybrid maize seed Annual production capacity for fertilizer in the participating countries Annual national import, export and consumption of fertilizer in the participating countries The prices for fertilizer, pesticides and seed are retail prices collected from a number of retails shops. This data is averaged and published in monthly price reports. Other data are a list of contact details of various companies and organizations in the participating countries. Collection method Data is collected using the participating organizations. This information is requested in an to the organization. The target group The system defines its target group as all stakeholders: farmers, traders, manufacturers, etc., however looking at the information provided by AMITSA, the most likely users of the data would be: Large scale farmers Large scale traders Government Financial institutions Processors 19

20 Usage of the data The target of AMITSA is all players in the chain, policy makers, academia, agro input trade/farmer associations, individual traders /farmers, development partners, etc. There is no information available on the usage and impact of the platform. AMITSA has not carried out an assessment on the number of users that access the information or an impact assessment of the platform. When contacted, AMITSA indicated that they are thinking of using Google analytics to monitor the number of users. AMITSA has also contracted ESOKO to provide information to users on the ESOKO platform. They have completed the integration of the mobile phone service on AMITSA for data collection and SMS push information sharing, SMS alerts, price search, etc. The aim is to roll this out to farmer associations and partners on the ground. To date, there are no users setup on the platform. To summarize, the system can be used for: Trading: Price discovery Contacting suppliers: Buying: Selling: Planning: Statistics: Actionable data: Dissemination of the data No Yes Limited, there is a very limited list of companies and organizations in the system Limited, there is a limited list of companies and organizations in the system No Yes Yes The system provides all the data on the internet. No, the information provided is more for planning and statistical use AMITSA has also contracted ESOKO to provide information to users on the ESOKO platform. They just finished the integration of the mobile phone service on AMITSA for data collection and SMS push information sharing, SMS alerts, price search, etc. The aim is to roll this out to farmer associations and partners on the ground. To date, there are no users setup on the platform. Cost of the service for the end user There are no charges to access the data. Usage and Impact of the system There is no information available on the usage and impact of the system Business model AMITSA noted it is not a business, but a public information platform for all. Capacity hosting organization AMITSA is an initiative at IFDC and is not a project. It has several partners involved at the national and regional level to ensure its continuity and successful implementation. 20

21 Detailed description of FEWS NET The Famine Early Warning Systems Network (FEWS NET) is a USAID-funded activity that collaborates with international, regional and national partners to provide timely and rigorous early warning and vulnerability information on emerging and evolving food security issues. FEWS NET professionals in Africa, Central America, Haiti, Afghanistan and the United States monitor and analyze relevant data and information in terms of its impacts on livelihoods and markets to identify potential threats to food security. The FEWS NET project in its current format will end at the end of From the meeting with FEWS NET at the Zambia office it was noted the project will continue, however there could be some changes but details were not available. The information collected by the FEWS NET office in Zambia are retail prices for white maize and maize meal in the most important markets of Zambia, received from the National Statistical Office. FEWS NET also collects information on the trade volumes across the main borders in the region and prices at the borders. This is done by enumerators employed by FEWS NET. At one point, there were negotiations between ACTESA and FEWS NET on the option of ACTESA taking over this role. However this did not materialized due to internal management issues at ACTESA. The reports generated by FEWS NET are on agro-climate monitoring, markets and trade and livelihoods. Agro climate monitoring reports The agro-climate monitoring information provides weather reports that focus primarily on areas that experience either droughts, flooding or other weather conditions that could affect production and food security. The livelihoods information reports The livelihoods information provides analysis with a means to predict and judge the impact of a shock on household income and food access. Markets and trade information reports The markets and trade information provides a number of reports for various regions including West Africa, East Africa and Southern Africa. The information provided is country and region specific. The market and trade reports generated by FEWS NET are: Price Watch reports: Price Bulletins reports: Regional Market Reports: The price watch reports give retail price information on the most important food crops, white maize, wheat, rice and beans. Additionally a brief explanation is provided explaining price trends. The reports are made for West, East and Southern Africa and are published monthly. Retail price statistics over the last year for the most important food crops and market(s) in the country. This is carried out for most countries in Southern and Eastern Africa. The bulletins are published monthly. Reports on regional markets, and cover only East Africa. However information is out of data; the last report was for June

22 Cross Border Trade Reports: Very detailed information on informal trade volumes and prices of white maize, rice and beans between various borders of Malawi, Zambia, DRC, Zimbabwe and South Africa. Conclusions of the service Although the main task of FEWS NET is to operate as an early warning system for food security it does create some valuable market information reports. These reports are for the main food crops and contain the retail market prices in the main markets. Additionally the reports provide information on informal trade volumes across the borders in the Southern African region. FEWS NET provides no information on production or stock levels in the various countries. The information provided by FEWS NET is especially important and useful for government agencies and organizations like the World Food Program. The information provided by FEWS NET is also useful for the private sector by providing a quick and detailed overview of price trends (retail prices) in the region and information on the factors that affect prices and (informal) trade across borders. These factors can be weather conditions, structural problems in an area or government policies such as import or export bans Zambia Initiatives There are currently 4 price and market information system/sources in Zambia and one in development: ZNFU4455 SMS based market information system operated by the Zambia National Farmers Union. Agricultural Market Information System (AMIS) operated by the Agricultural Market Information Center (AMIC) under the Ministry of Agriculture and Cooperatives. The Zambian Agricultural Commodity Exchange (ZAMACE). TRANSZAM, a web based transport system operated by the Zambia National Farmers Union where the agricultural sector (and others) are linked to the transport sector. E-extension system a new cell phone base platform for the agricultural industry being developed by the ZNFU. There are other sources of information available to the agricultural sector, but they provide general information or are used only for statistical purposes: The ZNFU Friday brief, a weekly news bulletin send by to all Zambia National Farmers Union members with news, updates and information about the agricultural sector. Data from the Central Statistical Office (CSO), including retail data to produce the consumer price index ZNFU Introduction The Zambia National Farmers Union Market Information System or ZNFU 4455 was designed in 2006 with the assistance of the Agribusiness Development Component (ADC) of IFAD s Smallholder Enterprise and Marketing Program (SHEMP). 22

23 The ZNFU4455 is an SMS based market information system/service. The system is well documented with information about and usage of the system available from the ZNFU Analysis of the Quality of the System Name and details service Name: ZNFU 4455 Launch date: 2006 Country: Website: Contact details: Zambia Description of the service: Zambia National Farmers Union (ZNFU) Tel / Fax ZNFU Head Office Showgrounds Lusaka, Zambia ZNFU 4455 is an SMS based Market Information System developed by the ZNFU available on the Airtel network. The system provides buying prices and contact details of companies. To receive information, users send a SMS message to the number 4455 on the Airtel network; the system will send back the requested information. This type of system is referred to as a pull system. The total number of companies listed in the system is over 200 and the buying price for 16 commodities listed in the system are: -Maize -Soybeans -Beef -Groundnuts -Goats -Rice -Cassava -Honey -Sheep -Sunflower -Wheat -Cowpeas -Beans -Pigs -Sorghum -Jatropha Price collection is done weekly as companies set their prices at the beginning of the week (normally Monday) and prices do not change over the course of the week. Buying prices To receive the buying prices for the commodities in the system, the user sends the first four letters of the commodity to the number 4455 on the Airtel network. The reply message of the system will be the buying prices (highest price first) from the companies listed in the system. To receive only the buying prices of companies in a district or province, the user would send a SMS message with the first four letters of the commodity, space, and the first four letters of the province or district. For example, if one sends maiz to the system, the system will reply with the following message: 40 buyers in Zambia. Prices per Kg: gzfompi Chcchi Natilsk Chcndo Chclsk Afgrlsk 950. supelsk 950. Nachlsk 920.cypndo

24 Explanation of the reply message: There are 40 companies listed in the system that are buying maize; the best prices are from the companies gzfompi buying at Kw 1200 per Kg, chcchi buying at Kw 1100 per Kg, etc. Contact details To receive the contact details of a company, the user has to send the name of the company to the number 4455 on the Airtel network. From the above example the highest price is offered by the company gzfompi. If the users send gzfompi to the system, the system will reply with the following message: Gzfompi , GZ Foods, Behind CR bus stop, Mpika. Contact Mr Katongo. Buying Cassava, Soybeans, Beans, Maize and pigs. The information collected The information collected is: Contact details of the companies Buying prices of the companies in the system The information is mainly collected from larger traders who are able to buy considerable quantities. Collection method The price collection is conducted weekly by phoning the companies or by . Prices are collected weekly as companies set their prices at the beginning of the week (normally Monday) and these prices do not change over the course of the week. The reason why companies do not change their prices during the week is that it gives the seller time to deliver the produce for the set price. However, there have been exceptions during periods when companies heavily compete with each other to buy produce. As soon as one company increased its price, other company would do the same. During this period each company would phone the systems administrator to update the price. It could happen that a company would change its price more than once a day as the companies also use the system to check on each other s prices. The target group The main target groups are small and medium scale farmers, small traders and large traders. The small and medium scale farmers use the information to negotiate prices with local traders and to find a market for their produce. The small scale traders use the price information to sell to larger traders listed in the system and to set prices when they buy produce from farmers. The large traders use the platform to buy produce and to find competitors prices. Usage of the data Three groups of users use the system: farmers, small traders and the large traders. Farmers 24