MATCHING GRANTS

HAPPY MULOLANI Small-scale farmers have often concentrated on crops and diversification as key in their agriculture practices. However, more recently, the emphasis has also embraced taking farming as a business in a quest to enhance entrepreneurship among smallholder farmers. The concept of farming as a business is more in the domain now with the Department of Marketing and Agribusiness under the Ministry of Agriculture and Livestock (MAL) and other stakeholders taking centre-stage in propagating this concept. It is a fact that, a lot of trainings centred on entrepreneurship trainings have been imparted to farmers in order to increase their capacity to not only produce crops, but also enhance their business and marketing skills by engaging in other ventures that can support their farming enterprises. However, despite the numerous entrepreneur trainings that have been imparted to small-scale farmers, it has been a daunting task for them to access funds to enhance their entrepreneurial activities thus, making it very difficult to progress in their farming endeavours despite the knowledge acquired from these trainings. Most small-scale farmers have been encouraged to take farming as a business and to that effect, it is on record, the many intervention programmes that have also spearheaded this concept, such as the Economic Expansion in Outlying Areas (EE-OA), Agriculture Support Programme (ASP), Agricultural Sector Investment Programme (ASIP) and other intervention programmes, which have worked collaboratively with MAL in impacting business knowledge in smallholder farmers. What has been evident however, is that farmers need to get organised with a clear vision and work with organisations that can support their enterprises as long as they are clear about how they execute their generated business ideas. The more reason why this is important for farmers to derive ideas of viable enterprises and also be able to successfully own them. One such programme that has set-out to promote farmers business ventures is the smallholder Agribusiness Promotion Programme (SAPP). With a lifespan of seven years, SAPP’s mandate is to work with smallholder farmers that are organised and have viable business ventures that are progressive and sustainable. SAPP Programme Manager Kwibisa Lywalii points out that farmers are key in enhancing their business enterprises as they have ideas on what activities can boost their economic well-being and status in their respective farming communities. He reveals that the programme has a matching grant facility, which supports among other ventures, interventions in small-livestock, beef, cassava, beans, groundnuts, and beginning in 2015 also activities in aquaculture and rice. The programme promotes value addition and primarily supports activities with a strong market focus or orientation. The outlining factor for groups to qualify for the matching grant, is that they need to contribute 10per cent towards the overall cost of their enterprise. The core essence of them contributing towards their project, is to show commitment and also own their enterprises. ‘’When groups contribute towards their own projects, it ensures ownership and to some extent, sustainability even when the programme has phased out,’’ says Lywalii. He reveals that so far, SAPP is on record for having disbursed about K3, 000, 000, to farmer beneficiary groups countrywide under the matching grant facility in the various intervention categories noting that the response has been encouraging. With these available grants, awareness and capacity building in various beneficiary groups has heightened in a bid to promote self-sustainability and empowerment. And Livingstone District Cooperative Development Officer Benjamin Mvula is of the view that, there has been tremendous shift in terms of how farmers have been engaging in farming enterprises after awareness trainings on taking farming as a business and entrepreneurship. Mr. Mvula observes that the major hurdle for most smallholder farmers has been access to credit as most of them do not have title to their land to guarantee security resulting in them not being able to access finance and loans from banks and other lending institutions. He, however, believes with SAPP’s intervention, it has boosted farmer’s access to finance their enterprises with emphasis on their contribution because once farmers themselves contribute towards their own intiative, it shows commitment and the venture succeeds. One typical case in point, is Lubemba Cooperative Society of Mukuni agriculture camp in Livingstone, which has a membership of 25 and has now turned out to be a multi-purpose cooperative, as it has integrated livestock production as its main enterprise while also continuing with gardening, which has been its long standing activity. Lubemba Cooperative Chairperson Teddy Ncube disclosed that the matching grant has helped them to overcome their financial hurdles in setting up their goat breeding centre, where they are crossing exotic and local breeds to the farmer community in Mukuni agriculture camp in Livingstone. ‘’Initially, we were just engaged in gardening, we mainly grew vegetables, tomatoes and reared local chickens,’’ says Ncube. He explained that the group had tried to mobilise resources in order to embark on livestock production by rearing goats but did not have adequate resources. ‘’We later learnt about the matching grant facility, which we applied for and were considered when we submitted our proposal: after being funded K100, 000, we seriously invested in the goat breeding centre,’’ said Ncube. He further said the group has had some challenges with other farmers being in distant areas and this has compelled the group to earmark five centres within Mukuni camp while utilising the main breeding centre as a point of exchange for off springs to multiply their breeds in the various localities. ‘’We have a strategic goat breeding centre and have five different communities in this activity within the camp, were farmers are breeding goats. It is clear that there are various initiatives that farmers can easily succeed as long as they own their projects and remain focussed in their entrepreneurial activities. It is also encouraging to see how smallholder farmers have become more entrepreneurial focussed and less dependent on crops alone as this is a more sustainable way of engaging in agriculture. Therefore, smallholder farmers need to take a leaf from groups such as Lubembe Cooperative society to enhance their groups and strengthen their linkages with organisations that not only build capacity but are also able to finance such entrepreneurial activities that aim at contributing to uplift lives of smallholder farmers.

BENEFITS OF SEED GROWING

HAPPY MULOLANI Anita Nakonde, is a seed grower, who has commends SAPP for promoting seed multiplication, through seed growing, as it has really boosted beans production and provision of pure seed to the farming community in the area. Nakonde says more farmers in the area have realised the importance of using pure seed, taking into account the increased yields and profitability. ‘’My production levels have increased after engaging in growing pure seed and it turns out profitable to sale pure seed than in the past, when I used recycled seed,’’says Nakonde. She said that she plans on increasing her area under cultivation, from half a lima to one lima the forth-coming season. Nakonde encourages her fellow women farmers to seriously consider embarking on seed multiplication. It is a known fact that most of agriculture production is carried out by women yet the benefits tend to trickle to men, this is the more reason why Nakonde’s advsie is timely in empowering women farmers to seriously take up the task of seed growing and provision to the farming community in the area. What is encouraging the availability of a readily available, which has often been a source of worry for the farmers to take up enterprises that would benefit them.

FARMER MAKING STRIDES IN BEANS INTERVENTION PLAN

HAPPY MULOLANI George Nsowela, 50, is a passionate small scale farmer in Kalukanya village in Nsenga Hill Agriculture camp in Mbala district of Northern province, who is an ardent seed grower. Nsowela, whose family size is eight, settled in Kalunkanya with his family in 1996. The main crops he cultivated include: maize, sweet potatoes, finger millet and cassava. It is worth stating that when Nsowela engaged in farming, he merely grew maize for sale leaving a bit for home consumption. He also grew beans, traditionally using recycled beans seed. The cultivation of beans using recycled beans resulted in low yields and ultimate reduced production. However, farmers underwent facilitation at one of the awareness meetings last year in 2015 by agriculture field staff, who linked them to the Smallholder Agribusiness Promotion Programme (SAPP), a programme under the Ministry of Agriculture and Livestock (MAL) funded by the International Fund Agricultural Fund (IFAD) whose interventions, among others, is to link farmers to potential markets by developing farmers’ business acumen in their enterprises. Mr Nsowela reveals that when he attended the SAPP inception meeting on the Beans Intervention Plan in Mbala, he realised how the programme interventions will boost beans production through pure seed. Through the programmes’ interventions, their beans production levels have gradually increased as farmers have embraced the use of pure seed as opposed to recycled seed. SAPP through MAL facilitated a service provider, DESLO to work with the farmers in a bid to promote the provision of pure seed taking into account, that farmers in the area had for a long time been using recycled seed, thereby affecting their production levels and productivity. The targeted number of farmers to be seed growers was 30 growers and these were given soft loans under DESLO and signed contracts with farmers. DESLO’s package was 7.5kilogramme, inoculant and 25 kilogramme bag of fertilizer, of which the farmers were expected to repay 30 kilogrammes of beans pure seed produce. The beauty of the Outgrower scheme arrangement, is that farmers are guaranteed of market by the service provider as long as it is certified as pure seed. Nsowela never anticipated to be become a seed grower neither did he realise the benefits of growing seed. ‘’I want to increase my area under cultivation because I have realised it is more profitable to grow seed than the commercial one,’’ he says. Mr Nsowela further said it was more profitable to grow pure seed than maize as the yields of maize had reduced tremendously due to the soil acidity in the area. He revealed that one lima produced about 10kilogramme bags of maize while one lima of beans produced an average of 60kilograme bags of beans, which even fetched more on the market. Mr Nsowela appreciates SAPP’s interventions as it has helped in linking the farmers to seed grower managers that have been working at improving the quality of seed, enhancing productivity and ultimately, increased production. He explains how low his production was given the scarcity of pure seed in Mbala district before become seed grower. ‘’Per lima, I would harvest five bags of beans using recycled seeds while when I used certified pure seed, I attain good yields averaging 30bags for half a lima,’’says Nsowela. He further points out that what SAPP has done differently is that they not only emphasis but have also supported the beans enterprise at every stage of progression in terms of linkage, capacity building and expertise.

WHEAT LAUNCH

HAPPY MULOLANI Government says it will not allow importation of wheat in the country. Agriculture and Livestock Minister Given Lubinda says government will not allow wheat importation in order to empower the local farmers sale their wheat this season. Mr. Lubinda urged farmers not to increase wheat prices but sale wheat at parity prices that were competitive on the market. He said during a launch of the wheat harvest season at Zambezi Ranching and Cropping in Lusaka. Mr. Lubinda further explained that he has engaged the Minister of Energy to prioritise the agriculture sector in order to boost wheat production amid the power outages that may affect its production. And Zambia National Farmers Union (ZNFU) has appealed to government to lower the cost of wheat production. ZNFU Second Vice President Graham Rae said if costs of wheat production were lowered, the country had the capacity to export wheat to the region and beyond. Mr Rae said despite the challenges of power outages affecting wheat production, farmers managed to produce 330,000metric tonnes of wheat. Mr. Rae pointed out that last season 52 percent of the total wheat crop was sold while this year 93 percent of wheat is yet to be sold.

GOVT MEETS MILLERS

HAPPY MULOLANI The Millers Association of Zambia and government have resolved to establish a national maize stock position of all stakeholders countrywide within 24hours. Millers Association of Zambia Chairperson Allan Sakala disclosed during a consultative meeting with government in Lusaka today, when it presented its concerns on the high cost of maize and its effects on mealie meal prices. Mr Sakala said after the maize stock verification exercise is concluded, stakeholders in the maize value chain will come up with proposals aimed at coming up with a feasible solution. He further commended government for its open door policy and continued dialogue in addressing the mealie meal situation currently prevailing in the country. The consultative meeting is as a result of the recent price increases of mealie meal prices.

FARMERS ACCESS TO CREDIT

BY HAPPY MULOLANI Smallholder farmers have had challenges of access to credit and this has seen them stagnant in their agricultural activities. It is estimated that 80percent of smallholder farmers progression in their agricultural enterprises has remained very low. These challenges have basically been two fold, bordering on demand and supply. It is worth noting, that lack of collateral for accessing credit to enhance agricultural production has been one of the major factors that has been attributed to farmers not progressing in their enterprises as they are considered a high risk group. A dairy small-scale farmer in Choma, Farmer Noole expresses concern that there have been weak institutional framework, policy inconsistencies on agricultural financing as well as limited finance literacy. ‘’There is need for government to intervene in order to have farmers that are protected and ensure that farmers businesses are viable even as various linkage to prospective financiers become available,’’says Mr Noole. And Choma Dairy Association of Zambia Region Board Chairperson Mirriam Mbazima points out that the eminent problem of access to credit needs government’s and other stakeholders intervention. Mrs Mbazima also appealed to government to consider reducing the interest rates in order to ensure the cost of finance is lowered and increase demand as well as accessibility by producers. Against this background, government in collaboration with key stakeholders have made drastic strides in addressing farmers’ challenges. This has prompted the Ministry of Agriculture and other organisations such as SNV and AgriProFocus to jointly collaborate and run finance fairs in selected parts of the country. AgriProFocus Country Coordinator Claire Van Der Kleij pointed out that some of the institutions involved in the finance fairs include, Musika, Dairy Association of Zambia, Radio Café, Image Promotions and SNV Netherlands Development Organisation. Ms Kleij explained that the AgriProFocus, is a network of agriculture professionals initiated by Dutch Non-Governmental Organisations, finance agencies and knowledge institutes with the aim of promoting farmer entrepreneurship Ms Kleij disclosed that three finance fairs have so far been conducted, with the first fair being held in Choma and attracting over 500 farmers while in June, this year, another fair was conducted in Chipata and the third fair has reverted to Choma. AgriProFocus organises finance fairs in order to connect rural and smallholder farmers with finance service providers in a bid to empower them and also guide their own development as well as build their agribusinesses. These fairs also play a vital role in exposing and linking farmers to finance institutions, agri-businesses and NGOs as they exhibit their products and also interact during workshops that are also hosted while the fairs are in progress. This provides a platform to farmers share information about their programmes, products, investment opportunities, business planning and saving schemes. And SNV Sue Ellis says the organisation hosts AgriProFocus in Zambia and are an international not-for-profit development organisation. SNV will this year be celebrating its 50years of development work globally as well as its presence in Zambia, which is indicative of the massive work and support the organisation has rendered to rural communities and farmers . Dr Ellis says SNV works with local partners in order to equip communities, businesses and organisations with tools, knowledge and connections they need to increase their incomes and gain access to basic services, which will play a cardinal role in empowering rural communities in addressing poverty and for farmers to also guide their own development. ‘’On this basis, SNV partnered with AgriProFocus because we share the same goals and interventions in the agriculture sector,’’ pointed out Dr Ellis. And government has reaffirmed its commitment to support smallholder farmers engaged in agribusiness interventions in order to improve production and productivity. Agriculture and Livestock Deputy Minister Greyford Monde said currently, there were 400,000 smallholder farmers linked to agribusiness through outgrower schemes in cotton, sugar cane and soya beans Mr Monde explained that it was important to support various viable enterprises such as dairy, through investments that will help develop farmers’ business acumen. ‘’It is impressive that the district and overall, the province has a high presence of dairy farmers, which makes it a good investment for various dairy products,’’ says Mr.Monde. He added that despite 80 percent of farmers producing raw milk, the country was still a net importer of milk and milk products estimated at K25million kilogrammes of powdered milk. Mr. Monde said farmers should take value addition seriously if they are to gain more returns and profits from their dairy enterprise, noting that this applies to other enterprises as well. ‘’Value addition will help farmers gain more profits and returns on their products unlike in their raw form, and that’s is the more reason government was emphasizing on value addition,’’said Mr Monde. With the government and a consortium of agriculture development players helping to foster farmers’ accessibility to credit and other products through finance fairs, it is hoped that more farmers will take advantage of the opportunities that is now readily available. What is required is for farmers to be in organised groups and identify viable enterprises worth undertaking. It is crystal clear, that the availability of affordable credit is critical for the success of any sector of the economy, as credit will enable farmers to mobilise other resources to support production, employment and income generation within the sector.