Improved market access yields higher incomes for farmers

The durability of the cereals is one of the key weapons helping people in the business to maximize profit as they simply store the goods during low season. Unlike perishable goods that render losses to business people due to short lifespan. (PHOTO: DENISH OCHIENG/ STANDARD)

Agriculture is at the heartbeat of Africa's economy; providing two-thirds of jobs and up to 75 per cent of the continent’s domestic trade. However, despite the critical role agriculture plays in our lives and its potential to transform the economy, challenges along the value chain continue to limit growth.

A farmer growing maize typically harvests around two tonnes per hectare. When the same farmer can access inputs from seed to fertiliser and chemicals, and is trained to use better farm practices, their yield can increase to between 5-7 tonnes per hectare.

But increasing on-farm productivity is only one piece of the puzzle. As well as overcoming the challenges limiting yields, we must also ensure farmers can access markets that pay a fair price for their produce.

Due to lack of storage and market options, most smallholder farmers will sell their produce at harvest, when prices are at their lowest. Immediately after harvest, prices begin to rise, representing a lost income opportunity for smallholder farmers. For instance, at harvest, a farmer in Tharaka North may sell green grams at Sh60 a kilogram, two months later, these same green grams will be worth Sh120 per kilogram.

The Alliance for a Green Revolution in Africa (AGRA) works across Africa to help millions of small-scale farmers overcome such challenges and improve their well being. AGRA’s development approach aims to transform agriculture from a solitary struggle to survive to a thriving business.

In partnership with USAid, we are implementing the Strengthening Agricultural Input and Output Markets in Africa program (SAIOMA), an initiative that is addressing the challenges across the agricultural value chain, from increasing productivity for farmers to helping them access reliable markets in Kenya, Malawi, and Zambia.

SAIOMA starts by strengthening agro-dealer — the outlets that provide farmers with agricultural inputs and advice. Paul Kirema, from Kariega in Tigania West, is one of nearly 400 agro-dealers that SAIOMA has trained in Kenya.

During a recent visit to his shop, we spoke about how the training had changed the way he did business; making him more informed, helping him to build better relationships with farmers. These changes, he said, contributed to a 30 per cent increase in profit.

Strengthening agro-dealers like Kirema is critical to getting farmers better access to inputs. Before Kirema opened his shop in Kariega, many farmers would have to travel over 30km to Meru to get agricultural supplies. Now, they can get the same products closer home — cutting down on time and money.

The farmers in Kariega are not an isolated case. About 70,000 farmers in the project areas of in Kitui, Meru North, Tharaka Nithi and Machakos now have better access to quality inputs and advice as a result of SAIOMA’s interventions in Kenya.

But strengthening agro-dealers is only part of the solution. Once farmers produce more, they need to sell it and just as SAIOMA builds the capacity of agro-dealers to run better businesses, we train farmers how to handle their crops after harvest to minimise losses and to work together to meet market requirements and participate in efficient markets.

Almost 250 farmers have been trained in how to sell as a group and negotiate contract sales with larger buyers. By aggregating their produce, these farmers are attracting larger buyers who offer higher prices. For example, in Tharaka Nithi, aggregated produce prices were almost Sh 5,850 per metric tonne higher than farm gate prices, for farmers this equaled an extra Sh15,000 in their pockets.

This additional money is increasing rural incomes and is going towards domestic expenses like school fees and home improvements. As their incomes increase, farmers continue to adopt newer technologies and move to other income generating activities, like community lending, where members of the community can access credit, without going to banks.

However, we acknowledge that achieving a total transformation of the agricultural sector in Kenya and Africa will require the contribution of all players and that there are outstanding individuals and institutions across the continent tha are taking charge of the agricultural agenda.

If you know such, please nominate them for the US $100,000 Africa Food Prize athttp://www.africafoodprize.org/nominate. Deadline is Friday 24 June 2016.

The writer is the SAIOMA Team Leader at the Alliance for a Green Revolution in Africa (AGRA). SAIOMA is a partnership between AGRA, USAid and the Bill and Melinda Gates Foundation and is part of the Feed the Future initiative.