AgResults Kenya On-farm Storage Presentation. to the Crawford Conference. Rodrigo Ortiz, AgResults Secretariat Lead. August, 2016

Similar documents
Aflatoxin biocontrol: Management Tool to Reduce Postharvest. IITA: Bandyopadhyay, Akande, Atehnkeng, Kaptoge, Mutegi

AgResults. Innovation in Research and Delivery. Draft concept note June I. Objectives and rationale

Agricultural Productivity in Zambia: Has there been any Progress?

Eastern Africa, bordering the Indian Ocean between Kenya and Mozambique

Aflatoxins, Agriculture and Technology Solutions Available for Abating the Aflatoxin Challenge

Benchmarking the Business of Agriculture

SMALLHOLDER MAIZE PRODUCTION EFFICIENCY IN KENYA

Waste and Spoilage in the Food Chain. Decision Intelligence Document May 2013

Seventh Multi-year Expert Meeting on Commodities and Development April 2015 Geneva

Farmer field school networks in Western Kenya

STDF PROJECT PREPARATION GRANT (PPG) APPLICATION FORM US$50,000

Assets & Market Access (AMA) Innovation Lab. Tara Steinmetz, Assistant Director Feed the Future Innovation Labs Partners Meeting April 21, 2015

TAILORING CONSERVATION AGRICULTURE TO LOCAL CONTEXTS AND CONDITIONS OF SMALLHOLDER FARMERS IN AFRICA

The Case & Action for Regional Structured Trading Systems

Bridging funding for the Agricultural Commodity Exchange for Africa Trust Quarterly Progress report

Nurture Our Planet. Nourish Our People. Recommendations from the High Level Roundtable on Food and Nutrition Security and Sustainable Agriculture

CHAPTER 2 AGRICULTURAL INSURANCE: A BACKGROUND 9

TANZANIA. The land area of Tanzania is about 1 million square kilometres. This includes the offshore islands of Zanzibar, Pemba and Mafia.

Distance learning program for agricultural education in Southern Africa. Mungule Chikoye, Krishna Alluri, Richard Siaciwena, and Rainer Zachmann *

Political Champions Partnership for stimulating insurance penetration in lower income countries. Initial Market Surveys: Summary Note

Agricultural Policies and Food Security Challenges in Zambia

Humidtropics Kiboga/Kyankwanzi Soybean production training

Closing Yield Gaps. Or Why are there yield gaps anyway?

Introduction To Structured Trading Systems

Risk Management for Greenhouse and Nursery Growers in the United States

Results and Challenges

Emmanuel Tumusiime-Mutebile: The challenge of modernising smallholder agriculture in East Africa

EVOLUTION OF THE MARKET A ZAMBIAN CASE STUDY

FACT SHEET. Production Risk

Social protection, agriculture and the PtoP project

Farmer to Farmer East Africa Volunteer Assignment Scope of Work

The Journal of Science Policy & Governance

THE MASTERCARD FOUNDATION: RURAL AND AGRICULTURAL FINANCE STRATEGY

LOAN ANALYSIS. 1 This is drawn from the FAO-GTZ Aglend Toolkits 1 5 for the training purpose.

Terms of Reference. I. Objective of Assignment

Fact sheet: Kilimo Salama ( Safe Agriculture )

PJ 24/ February 2012 English only. Projects Committee/ International Coffee Council 5 8 March 2012 London, United Kingdom

Determining the effect of stemborers on yields of cereal crops, principally maize and sorghum

VALUE CHAIN ANALYSIS: A CASE STUDY OF MANGOES IN KENYA

Politics, Surpluses, Deficits, and Debt

Key global markets and suppliers impacting U.S. grain exports BRICs

THE COMMODITY RISK MANAGEMENT GROUP WORLD BANK

CLIMATE RISK SENSITIVITY IN THE FOOD VALUE CHAIN: WHEAT

Legume Scholars Program. Nomination Package. November Deadline for Submissions 19 December 2014

Domestic steel market overview

A COST BENEFIT ANALYSIS OF MAIZE PRODUCTION AND MARKETING IN UGANDA

Risk assessment is the process of identifying and quantifying a trader s exposure to risk based on their position in the market.

Securing Rural Livelihoods through Improved Smallholder Pig Production in Eastern and Southern Africa

Topic 4: Different approaches to GDP

Importance of Data to give access to agriculture insurance to smallscale farmers, 2 nd African Continental Briefing Nairobi, 14 July, 2014

SUPPLY CHAIN MANAGEMENT (SCM) WITH APPROACH TO QUALITY CONTROL IN MILLING INDUSTRY

Indian Agrochemical Industry

5. Industrial and sector strategies

SCALING UP AGRICULTURAL FINANCE

Data analysis and packaging

ACCESS TO FINANCE FOR AGRICULTURAL ENTERPRISES. Presented by Farouk Kurawa Agricultural Finance Specialist, USAID MARKETS II

China s experiences in domestic agricultural support. Tian Weiming China Agricultural University

David Sparling Chair Agri-food Innovation Nicoleta Uzea Post-doctoral Fellow

How to Design and Update School Feeding Programs

More money, less dependency

Flexible Repayment at One Acre Fund

REVOVERING LOST LIVELIHOODS: The case of smallholder plantation crops in Zimbabwe

Role of Media in Agricultural and Rural Development

The BAKER S DREAM brand

SOCIAL PROTECTION BRIEFING NOTE SERIES NUMBER 4. Social protection and economic growth in poor countries

Indaba Agricultural Policy Research Institute POLICY BRIEF Number 67 Lusaka, Zambia May, 2014 (Downloadable at

Beyond biological nitrogen fixation: Legumes and the Sustainable Intensification of smallholder farming systems

CONTROLLED ATMOSPHERE Application for Milling Industry

(SPECIFIC PROCUREMENT NOTICE - SPN)

Trends in Solid Waste Management: Issues, Challenges and Opportunities

FEED THE FUTURE LEARNING AGENDA

Determining the Use of Technology in World Food and Fiber Production

THE FINANCIAL CRISIS: Is This a REPEAT OF THE 80 S FOR AGRICULTURE? Mike Boehlje and Chris Hurt, Department of Agricultural Economics

Contents. Introduction EAGC, EAGC Key Programs & Activities EAG Partnerships & Support Policy Dialogue & Risk Management Approaches Recommedations

JAMAICA. Agricultural Insurance: Scope and Limitations for Weather Risk Management. Diego Arias Economist. 18 June 2009

EB 3946/ May 2008 Original: English. Executive Board/ International Coffee Council May 2008 London, England

The Business Case for Investing in the Import and Distribution of. Fertilizer in Rwanda May 2012

Comparison of different crop insurance models in Nepal. Sunil K. Singh Senior Agriculutural Economist, MoAD

10 Preconditions for a Successful Commodity Exchange a Comparison between ACE and ZAMACE

Grain Traders Association of Zambia

Rainfall Insurance and Informal Groups

Traditional Products. The two Traditional Crop Insurance Products are: Named Peril Crop Insurance (NPCI) Multi Peril Crop Insurance (MPCI)

South African and global food-processing trends: Development

Guidelines and Good Use Practices for the Use of Seed Applied Products and of Treated Seed (May 2014)

Agriculture Insurance Programs developed with PPP mechanisms case study of Europa Re

Traditional rice storage facilities and options for safe storage: A study in some selected flood-prone areas under Bhola district

Financing Smallholder Farmers. to Increase Incomes and Transform Lives in Rural Communities

Global Cashew Nut Industry Report

Practical solutions for minor uses and specialty crops: the voice of European farmers and their cooperatives

Speaker Summary Note

UTZ CERTIFIED IMPACT REPORT

Mitigating catastrophic risk in Australian agriculture

Global Pulse Production and Consumption Trends: The Potential of Pulses to Achieve Feed the Future Food and Nutritional Security Goals

Agricultural Growth Is the Key to Poverty Alleviation in Low-Income Developing Countries

The use of genetically modified crops in developing countries

Summary of the Results of Evaluation Study (Terminal Evaluation)

Representatives from National and International Research Institutions;

4 th IAIS/A2ii Consultation Call Agricultural Insurance

Managing Rising Energy Costs for Seniors in the ACT

NATIONAL UNIVERSITY OF LIFE AND ENVIRONMENTAL SCIENCES OF UKRAINE

Transcription:

The AgResults initiative is a partnership between: AgResults Kenya On-farm Storage Presentation to the Crawford Conference Rodrigo Ortiz, AgResults Secretariat Lead August, 2016

AgResults Overview and Theory of Change $118 million Collaborative initiative between DFID, DFAT Australia, Global Affairs Canada, USAID, and the Gates Foundation to use pay-for-results mechanisms to incentivize and reward high impact agricultural innovations that promote: Food Security Health Nutrition Why? Pull mechanisms incent the private sector to overcome market barriers by investing in innovation and reward only those who are successful. They contrast with traditional push mechanisms where donors give up front grants or technical assistance to achieve an expected, but not guaranteed, impact. Oftentimes, this means that donor money is spent regardless of whether or not the desired results were achieved. How? The AgResults, analyzes binding constraints that inhibit solutions such as: Access to finance/credit Low consumer awareness Lack of business capacity Distortionary gov t policies Once binding constraints are identified, AgResults determines which of the constraints to solve, and the right amount to provide as a prize. - 2 -

Prizes stimulate private sector investment by altering the expected return Increases Market Attractiveness Prizes alter the expected value of entering a particular market Organizations build the technological, management or distribution capabilities to compete in the market after the conclusion of the competition Provides Platform for Innovation Prizes are agnostic to the technology or approach used Competitions measure the results of each approach, enabling the most effective solution to rise to the surface Crowds in Solvers Traditional development allows for one organization to attempt to solve the problem at hand, while prizes enable more organizations to participate Competition increases the need to innovate to meet consumer demand The X-Prize, a US $10 Million Prize, resulted in over US $100 Million in private sector investment. - 3 -

AgResults Pilots Nigeria Aflasafe TM Pilot Eliminating harmful toxins in maize Newcastle Vaccine Pilot Increasing vaccination levels and creating market for vaccine delivery Uganda Legume Seeds Pilot Strengthening market for improved legume seed varieties Kenya On-Farm Storage Pilot Expanding on-farm storage solutions for smallholder farmers Vietnam GHG Emissions Reduction Pilot Pioneering GHGreducing and yieldincreasing technologies Zambia Biofortified Maize Pilot Tackling Vitamin A deficiency with biofortified Provitamin A maize - 4 - Brucellosis Vaccine Pilot (Global) Creating a low-cost, effective registered Brucellosis vaccine

The Kenya On-Farm Storage Pilot uses a pull mechanism to address post harvest losses of maize and grain by creating a market for on-farm storage solutions for SHFs Magnitude of Post-Harvest Losses Post-harvest grain losses in Sub-Saharan Africa are estimated to be US$1.6 billion per year, which is 13.5% of the $11 billion grain market The Larger Grain Borer (LGB) and other pests cause substantial post-harvest losses that have a significant impact on small-holder farmer (SHF) food security. The Eastern Region of Kenya experiences particularly large losses from the LGB. Significant Post-harvest losses caused by spoilage and pests Farmers flood the markets with grain at harvest and are required to buy grains at a higher price later Market Barriers for Storage Solutions Low supply of technologically effective on-farm storage solutions suitable for Kenya Lack of SHF awareness of effective storage practices and their benefits Limited access to affordable on-farm storage solutions for SHFs High marketing and promotion costs associated with access to the SHF market Market solutions exist and they have helped large and medium farmers but they are not reaching SHF Negative Economic Impact on Smallholder Farmers without Post-Harvest Storage Devices Time from Harvest Supply of Maize Price of Maize Harvest Buy back maize - 5 -

The Kenya Pilot aims to reduce post-harvest losses of maize and grains by facilitating the development, marketing, and distribution of on-farm storage solutions to SHFs Kenya Pilot Pull Mechanism Structure The pilot is separated regionally to meet the specific need to prevent LGB damage in the Eastern Region Rift Valley Sales to Smallholder Farmers Pilot Mid-Point: The first five Implementers to reach the 21,000 MT (Metric Ton) sales threshold of any single storage device type will receive a USD $750,000 performance-based grant. Pilot End-point: All Implementers that pass threshold will share USD $1,000,000, proportionally distributed based on sales Eastern Region Sales to Smallholder Farmers Pilot End-point: Implementers that reach the 21,000 MT sales threshold of any single storage device type that is LGB proof will share USD $3,000,000, proportionally distributed based on sales By offering $7.75M in prize awards to solvers that meet pilot sales thresholds, the pilot aims to: Increase the economic welfare of SHFs through improved access to affordable storage devices that minimize crop losses and increase SHF income and food security $7.75M Help catalyze a sustainable market for SHF storage devices in Kenya Test an innovative model of engaging the private sector to serve smallholder needs, with potential future applicability to the delivery of other goods and services to SHFs Incentivizing the creating of new technologies and adapting existing technologies in a technologically agnostic framework - 6 -

The Kenya Pilot Implementers are marketing and testing the use of plastic tanks, metal silos, and hermetically sealed bags as storage devices Storage Standards Easy to use and affordable for smallholders farmers Solution eliminates pests within two to three weeks of the grain being placed in the container No external infestation of pests during reasonable 4 to 6 month storage life No adverse effects to grain quality during storage Technologies Used Metal Silos: Large, sealable silos recently adapted for SHF use. Capable of storing up to 540KG of maize (20 years) Plastic Tanks: Durable, affordable airtight plastic containers capable of storing more than 100KG of maize (10 years) Hermetically sealed bags: Multi-layered, sealable bags that can store up to 100KG of maize (3 years) Metal Silos Plastic Tanks Storage Bags - 7 -

AgResults in collaboration with the International Center of Insect Physiology and Ecology developed the Large Grain Borer penetration protocol for testing storage devices against insect damage WBS11111-Prez-Date Client Confidential The penetration tests consisted of three stages: Insect Damage Test to assess the efficacy of storage devices in protecting the grain from insects that enter during the storing process Penetration 1 Test to determine if Large Grain Borer can breach storage device materials Penetration 2 Test assessed whether insects released outside a full-size storage container could penetrate the device within a four-week period - 8 -

Increased market participation by various on-farm storage providers leading to increased sales to smallholder farmers (SHF) Rift Valley Pilot Eastern Region Pilot Pilot Not Present Western Nyanza Participating Regions in Kenya Rift Valley Eastern Central Nairob i Area North Eastern Coast The Pilot has 6 local and international companies participating and 2 new companies joining from Uganda Participating companies have seen increased demand for storage devices by small holder farmers have improved their designs to respond to their needs In spite of the existing sales progress, new companies are joining. To date companies have sold nearly 70,000 metric ton (MT) capacity to smallholder farmers Increasing their ability to store grain to fill their needs No longer selling in a glut market or having to buy grain when price is high Total Storage Capacity (MT) Sold to SHF in Eastern Region 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 53,590 Aggregated Sales Total Potential Storage Capacity (MT) Sold to SHF in Rift Valley 50,000 40,000 30,000 20,000 10,000 0 13,391 Aggregated Sales - 9 -

What is the expected impact of the Kenya On-Farm Storage Pilot? Expected Pilot Impact Reach approximately 480,000 smallholder farmers and generate at least 172,000 MT of adjusted storage capacity for grain in the Rift Valley and Eastern Region. Generate US$14M in smallholder benefits from the storage of grain, the sale of crops in higher-priced market periods, and the reduced need to buy grain for household consumption. Enable Implementers to test products and marketing strategies that can be used for distribution of storage solutions. Smallholder Farmer Impact Improved storage capacity will allow SHF farmers to retain maize and avoid selling immediately after harvest, when prices are lowest o Research shows that the difference in price of selling at farm-gate and buying back from the retail market as soon as a month later is often $150-$200 MT o Improved storage capacity will lead to increased food security and reduce expenditure on maize during non-harvest periods Safely stored, non-contaminated maize will demand a premium price in the market, growing farmer incomes Access to on-farm storage not only reduces post-harvest losses, but incentivizes farmers to increase production Effective storage methods eliminates the need to dust stored grain with pesticides reducing adverse effects on farmers health Aflatoxin Reduction On-farm storage technologies limit aflatoxin contamination of maize. Airtight storage technologies limit oxygen and prevents aflatoxin from building up by suppressing the development of Aspergillus flavus. Reduced aflatoxin contamination will result in higher quality maize and improved health outcomes among SHFs - 10 -

By offering an incentive, the private sector has created a sustainable new market for devices that fit the needs of SHFs Private Sector Redesign of larger storage deceives Product machinery in place Investment in marketing and promotion of smaller storage devices Product prices generate profit Farmers Ability to save maize after harvest Higher income from selling grains when prices are high Higher demand for better storage devices after realizing their benefits Agro-Dealers Established relationships with the private sector and farmers Realized profit from selling new storage devices Established distribution channels - 11 -