Markatied Agrcuturl Technology Tansfer and Commerctalzaton Project Rural Sector Enhancement Program
Needs Assessment Study for Market-driven Agricultural Technology Transfer and
Trang 2CONTA 2002
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Trang 3Needs Assessment Study for Market-driven
Agricultural Technology Transfer and
Commercialization in Adamawa State, Nigeria
Trang 4Acknowledgments
‘The authors are grateful to USAID for providing the funds for the execution of this study We are especially grateful to Dr Patrick Kormawa, Coordinator of RUSEP and all the RUSEP staff at ITTA Tbadan, Drs Jonas Chianu, K Makinde, and Wale Adekunle and Mrs ‘Yemi Nwoke for their logistic and technical support We also thank the Director of RCMD De D Keatinge for his accommodation and support ‘We benefited immensely from the cooperation and assistance of Project Manager ‘Adamawa State ADP and all his staff, especially Dr Louis Mandama, Director of Exten- sion Our thanks also go to Dr Ingawa, head of Unit, PCU Sheda Abuja
‘We sincerely hope thar the contents of this document will be useful towards achieving a market-driven agricultural technology transfer and commercialization in Adamawa State and Nigeria in general
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Contents
2._Priority main crops of interest 4
Level of production and demand = Production input : — 7 Industrial and domestic utilization of maize, rice, and groundnut —_ 10 Valuecadded acti dO 3._Factors influencing che effective implementation of market-driven cultural technology transfer and commercialization
“Technology of production (research and extension support) " Poshanest 2S nn TỔ The seqr invgleeiBEhk « eeeeeeseeeeeseeeeeeeeereeereeeeerr— 12 ‘Market opportunities and infrastructure 12 Mieroerelit supportBeiliies 13 Low farmer empowerment B Policy instability nnn Sa ‘4._Appropriate the concept emphasizing roles and responsibilities of ll stakeholders Plicy and insticudional su intervention framework to operationalize ics 14 TẾ TDùsemminadon eFilarmation eeeseeeseseeseaeeeeeaseesaE— Promotion of private sector involvement in technology transfer and Tể
Come icici ‘Commercalizaion of inputs/ourput markets sus 1S 15
Marker information mm
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5 Crop budget for maize in Adamava State 25 6 Crop budget for rice in Adamawa State 26 7 Crop budget for groundnut in Adamawa State 7 8, Trends in the prices of different crops in Adamawa State, 1999 and 2 28
Tables 1
2 Proftabilityfha of maize, rice, and groundnut enterprises in Adamawa State 5 3._ Major producing locations for the selected crops
4 Agencies, types of seeds, and quantity produced/marketed in Adamawa State 7 5._ Distribution of fertlizers in Adamawa State by government, 1999-2001 9 6 Value added in processing a tonne of maize, rice and groundnut
‘commodity of interest, and mode of
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ADIATN ADP AIDU BEA BCR BEF cB CBO CRIN ECOWAS FIIRO FRIN ICRISAT IFAD TA ILRI LGA MDATTC MIS NAFDAC NARDB CAM CRI NGO NRCRI NSS OAU PCU PME PRODA REFILS RID RTEP RRIN SAFGRAD
Acronyms and abbreviations
‘Accelerated dissemination of improved agricultural technology in Nigeria Agricultural Development Project
‘Agro-Industrial Development Unit block extension agent
benefit-cost ratio break-even factor cooking banana
‘community-based organizations ‘Cocoa Research Institute of Nigeria
Economic Community of West African States ‘extension agent
Federal Instiute of Industrial Research, Oshodi Forestry Research Institute of Nigeria,
International Crops Research Institute forthe Semi-aid Tropics Intemational Fund for Agricultural Development
International Institute of Tropical Agriculture Intemational Livestock Research Institute local government area
Market-driven Agricultural Technology Transfer and Commercalization ‘market information system
[National Food and Drugs Administration and Control [Nigerian Agricultural and Rural Development Bank
National Center for Agricultural Mechanization [National Cereals Reseach Institute
‘nongovernmental organization
[National Root Crops Research Institute National Seed Service
‘Organization of Afican Unity Project Coordinating Unie
Project Monitoring and Evaluation Projects Development Agency
Postharvest Technology Department research-extension—farmet-inpur-linkage system Rural Institutions Department
Root and Tuber Expansion Program Rubber Research Instiute of Nigeria
Trang 8SMS SON TR-TC TR-TVC USAID WARDA
subject matter specialsss
Standards Organization of Nigeria
Scientific and Technical Research Commission total fixed cost
‘otal revenue minus tral cost
total revenue minus total variable cost
United States Agency for International Development West Africa Rice Development Association
Trang 9Executive summary
‘The Needs Assessment Study for RUSEP in Adamawa State, Nigeria, is focused on the problem of identifying candidate crops and technologies to be promoted to cause visible positive changes in the income and quality of life of the rural populace within a short petiod The team visited areas with high agricultural production potential, che Ministry of ‘Agriculture, Adamawa Agricultural Development Project (ADP), Federal Office of Sta-
tistics, and leading input distributors, and collected information on land use, agricultural production, processing, and marketing, The team aso interacted with farmers, processors, ‘marketing agents, and input dealers and conducted a rapid rural appraisal study in selected
locations
“Thee candidate erops were shortlisted maize, rice and groundnut ‘The selected loca- tions forthe intervention were Mallam Hore village in Ganye LGA for maize, Gurin village in Fufore LGA for rice, and Hong village in Hong LGA for groundnut The technologies identified for promotion include manual shelling for maize, processing paddy rice into grain before sale, and decortication and extraction of oil from groundnus seed The study indicated that processing one tonne of maize before sale is associated with an added value of 810380 Processing of one tonne of paddy rice to grain before sale yields an added value of 4103313, and the extraction ofl from one tonne of groundnut is associated with an added value of M1538 ‘The major constraints militating against market-driven production and processing, of maize, rice, and groundnut are lack of credit to meet production requirements, lack of access to improved varieties, fertilizers, and agrochemicals, and nonavalabilty of cottage level processing equipment at affordable prices Farmers’ associations, community-based organizations (CBOs), and women's groups have not achieved much in the development and transfer of market-driven technologies to farmers They need to mobilize farmers into groups, and link the groups to those agencies chat provide formal credit for agricultural purposes and those that distribute improved seeds, fertilizers, and agrochemicals and also to agencies that provide cortage level processing technologies The private sector involvement in the input supply and output market is not well coordinated or organized and lacks desired efficiency Farmers should be organized into groups as retailers and be linked directly co inpuc dealers
‘There isno deliberate government policy to promote market information system (MIS) ‘The prevailing prices are discovered through bargaining and haggling Enumerators from the ADP should collect both ourput and input prices during surveys ofthe major markets and disseminate the information through radio and television broadeass in local languages and English every fortnight throughout the tate and aso via the PCU~ADP intranet The PCU-ADP intranet will be of immense advantage as MIS data from other states could be ‘browsed Bulletins, pamphlets, and other publications in local languages and English should bemadcevery three months dealing availabe research results, extension messages, structure of input and output markets, and location of processors and industries using maize, rice, and groundnut In dealing with the farmers, the AADP should also provide them with the
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current information on esearch, extension, trends and forecasts of input and ouput prices, location and charges ofthe processors and industries using maize ice, and groundnut
‘The AADP should train a) certified see producers on production technology and the application of diagnostic skills in the needs asessments of farmers, (b) processors on the postharvest processing techniques forthe ke crops and the simple maintenance of machines, and (6) traders on storage, packaging, and handling techniques Furthermore, the AADP should facilitate che training by representatives ofthe agrochemical companies of suppliers and marketers on the handling and application of fertilizers and agrochemicals and also locate experts on the technology of pesticide application to train contrat sprayers Finally the AADP should tain the supporting taffof RUSEP on the concepr of agricultural projec, technology transfer, and commercalization, aswell as the specific technology requirements ‘of maize, rice, and groundnut The Project Monitoring and Evaluation subprogram of the
[AADP should be crained on methodologies and application of effective MIS
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Introduction
‘Adamawa state has a land area of 39 742.12 sq km, which is abour 4.49% ofthe land area in Nigeria The stae lies between latitudes 8 and 11 degrees North and longitudes 11.5 and 13.75 degrees East In the 1991 population census, the state had a population of 2 146 066 This was projected to be 2.510 418 by 1997, giving a density of 63 people per sq km (Federal Office of Statistics 1997) About 80% of the population reside in
rural areas and are engaged in agricultural production activities
Trang 12farmers! education by the Adamawa State Agricultural Development Project (AADP), various factors have constrained the adoption ofthese technologies These include poor access to production inputs, lack of acces to credit, insufficient machinery for cultivation, harvesting, and processing, and inadequate marketing arrangements for produce Thus, the study of market-driven technology transfer and commercalization of agriculture in ‘Adamawa State is justifiable
Background of the study
‘The purpose of the Rural Sector Enhancement Program (RUSEP) is to test, atthe state- level, strategies to improve and develop market-driven agricultural production and to gen- ‘erate employment through the enhancement of creation of rural-agriculeural enterprises designated areas in Nigeria The strategy being proposed for the project isto focus on proved production and productivity of targeted commodities with well-established market opportunities and potential for employment generation through the development ‘of more market-oriented agriculture
‘As part of projec activities needs assessment study was to be conducted in select sites with a high potential for agricultural improvement with particular relevance 1 target technologies/commodices The findings of this study would be reviewed at an analytical workshop for participatory stakeholders to define a priority lst of potential ‘options for enhanced commercial production and productivity from technology transfer by the project Terms of reference
‘The falling terms of reference uid the sud ‘Mdentfy the most likely areas and crops where agriculeural technology transfer might achieve the purpose of market-driven technology transfer and + Identify the types of technology and the level of adoption in terms of
downstream activities (storage, processing, et.) as they affect the major crops of + For the identified crops and technologies, assess the profitability at farm and smarket levels + Identify the constraints militating against market-driven agriculture
(ego technology, infrastructure, inpuc supply situation, and output markets) + Examine the roles of existing functional farmer associations, CBOs including
‘women's groups, and donor agencies and proposed development and transfer of market-driven technologies
Trang 134+ Assess the present situation of market information system (MIS) and suggest ‘ways 10 develop a comprehensive MIS that can link producers, processors, and end-users of agricultural products including NGOs and other organizations within and outside Adamawa Stace
+ Ideneify taining needs for produces, procesos, eraders, entrepreneurs, ein suppor of marker-driven technology transfer and commerialzaion ìn agietuze
Methodology
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Priority major crops of interest
Level of production and demand
‘We shortlisted five major crops from the lst of che crops produced in the state for further consideraion based on the time series data available on the cultivated areas, output, and -market prices Time series data on che area cultivated to the crops by the rural farmers (Table 1) indicated the following ranking forthe average annual area (000 ha) commit- ted to the crops from 1998 to 2000: sorghum 148, maize 116, rice 70, cowpea 53, and roundout 44
‘The ranking ofthe average annual ourputs (0000) of the selected major crops from 1998 +0 2000 was as follows: sogghum 188; rice 148, maize 139, groundnut 65, and cowpea 5 Considering the marketing potentials, ic is evident chat the rural farmers seldom market sorghum and cowpea The cropsare mainly grown for houschold food security On eliminat- ing sorghum and cowpea, the three leading crops are maize ice, and groundnut However, ‘maize and tice compete For the frst postion The decals are presented in Table 1
Secondly, crop budgetsIha were cast forthe five shortlisted crops fr thee years (1999— 2001), and the annual average gross margins/ha were estimated The annual average gross ‘margins for maize, rie, and groundnut turned out to be higher than for the rest Conse- ‘quently, maze, rice, and groundnut were selected fo further detailed analysis The average annual gross margins for maize, rice and groundnut are presented in Table 2 and the crop
‘Table 4 Area and output of major crops in Adamawa State (1998-2000),
(Cultivated area (000 ha)
Trang 15Table 2 Profitability/ha of maize, rice, and groundnut enterprises in Adamawa Stats Crop 1999 2000 verge ‘Gross margin Mele 1785018090 33466 Production cos 2,950 24,400, 2440667
‘Average cot per man-day Tor abor exe 3450 szisy 14,820, 55 14.406 67 554.09
Gross margin pr man-day 0568410 mg
Gros margin pet mara —— 078 178 074 14 236 126
Rice
Gros margin 1696 36500 77/00 30,083.38,
Producti cose 35950 37900 40350 3806667
‘Average cot pet man-day “oul labor cose 25450 432 27.100 856386379755 3340 372666
Goss margin pe man-day M540 35057 Sos Mất
Gros margin per mira 035 096 116 077
Beciecos rie 135 Lal 217 178
Goss margin Groundout 17200 3115032280 3686667
Production cone 23300 2510026900 5,00
Average cant pee mandy Sis "Maat AG49 343.84
“Teai hhạc cực 38/50 31650, 23850 21630
‘Geos margin por mamdh 25G 42671 MAB “368034
(Gros marin pr is 074 tại Ly 1.06
Benefi-co iio 17 224 219 207
budget analysesare found in Annexes 5, 6,and 7 The average gross margin and benefit-cost ratio for maize are N31 347 and 2.6; rice N300053 and 1.8; and groundnut.M26867 and 2.1, Based on these facts, it is concluded that che ranking of the crops based on market <demand-driven potential is such that maize is leading, followed by rice and groundnut
Production location
“To select the production location for te selected crops, a sample was selected of 25 mem- bers comprising Ministry officals, AADP management staf private input vendors, traders, and farmers and asked to rank the LGAs and villages in order of priority with respect to the production ofthe selected crops More than 80% of the rankings were consistently in agreement Based on the rankings, it was concluded tha the major producing area for maize is Ganye LGA: for rice, Fufore and Ganye LGAs: and for groundnut, Hong LGA The derails are presented in Table 3 These villages are accordingly recommended for RUSEP
Technology of production, storage, and processing
Trang 16‘Table 3 Major producing locations for the selected crops
Crop Zone 16A
Maize 3 Ganye
Rice 3 Fufore
Groundnut Sorghum 2 1 Hong Mobi north and south Cowpea 1 Michika
to disseminate the improved production practices to farmers However, the adoption rates are suboptimal due ro limited coverage of the extension services As result, bout 60% of the farmers have acces to improved seeds and the majority of them adopt manual labor for cultivation and on-farm processing due to underdeveloped hiring services for tractors, and animal eration ‘The yield levels of these crops are stil suboptimal: the mean yields benveen 1998 and 2000 were: maize 1.2 ha ice 2.1 ha, and groundaut 1.6 ha These low yields could be ateributed to inadequate application of fertilizers and poor agronomic practices, Any intervention geared towards improving the productivity ofthese crops, there- fore, needs co focus strongly on higher fertilizer regimes, seeds of high yielding varieties, and proper agronomic practices
In Adamawa State, rural farmers do not store thei ice, maize, and groundnut for long This i because of che pressing need for cash to meet their immediate financial obligations Moreover, most of them obtained credie from middlemen to buy thir required production Inputs: they must repay this immediately after harvest ether in cash or in kind The middle ‘men are ustally buying agents of user-companies located outside the state These middlemen are always lurking around during the harvesting period in search ofthese commodities to buy and sor for some time in jute bags using storage chemicals The stored commodities are handed over to their respective parent companies as soon as adequate transportation arrangements are completed This marketing arrangement does not guarantee adequate remuneration to farmers’ production effort since the prices at which they sell are always below the ongoing market prices
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‘Groundnut decortication and ol extraction from groundnut seed are common projects among women in Adamawa State Because of improved eiciency from using the groundnut cil exractors introduced by the AADP the women have been able to generate more income where the equipment is availabe, thereby leading to an improved standard of living for
the whole family ln the past, some flour and feed mills locate in the state to take advantage of the production capacity of maize closed down forthe following major easons The Inter-State Flour Mill was technically designed for wheat and not maize; consequently, it could not rill maize wo the quality desired by local onsurners, hence about 90% ofthe output fom the mill was transported to ther states forsale Also the transportation cost of wheat and maize inputs and outputs forced the owners to relocate the mill to Lagos This isthe land- ing port for imported wheat and has more absorptive capacity (a bigher population) than Adamawa Snte, Although the Upper Benue River Basin Development Authority (UBRBDA) i located in the save and introduced rice milling it could not obtain enough paddy to sueaio the mill Ths is because UBRBDA did not engage either in direct production of rice 0 in promoting ice production among farmers through a contract grower’ scheme
Production inputs Seed production
‘The major seed producers/marketers are Afcort Nig PLC, Sebore Farms, Adamawa ADP Alheri Seeds, and Premier Seeds, The types and quantities of sed produced and marketed are shown in Table 4
Up £0 40% of rural farmers in Adamavwa State source their seeds, especially for maize and rice, ftom the AADP and other seed companies while the test source either from theie old stock or purchase grain as seeds from the village markets, Private entrepreneurs were interviewed and indicated that the business of seed tctling is very profitable Sebore Farms, the latest entrant in seed production, has increased its land area put under maize
‘Table 4 Agencies, types of seeds, and quantity producedimarketed in Adamawa State ‘Agencieslcompanies ‘Seed markered ‘Quantity (0 markered re Farms Maize 500 Adamawa ADP Maize 68 Rice >4 Coxton 101 Premier Seeds Maize 20 Rice 10
Alheri Seeds Maize 10
Trang 18seed cultivation, However, the involvement of local farmers in seed production and market- ing as an enterprise has not yet developed During the planting season, certified seeds of maize and rice can be found being retailed by private individuals all the LGA headquarters Most ofthe farmers are aware ofthe supe- Fior performance ofthe improved crop seeds, however, the major limitation to wide-scale adoption was attributed to high cost For example, 2 kg certified sced of open-potlinated (OP) maize cost abourN240.00 Also, the quantity of certified seeds could not meet an increased demand There is therefore the need to promote the development of small-scale seed encerprises among farmers’ groups and individuals This approach will make more improved seeds available in the marker at competitive prices The AADP should play a facilitating role by organizing taining for seed producers and also provide certification, including quality contol services, in collaboration with the National Seed Service
Fertilizer procurement and distribution
‘Adamawa Stae established a chemical fertilizer blending plant in 1998 This funetioned for only afew months and was closed down due to technical problems Ie was ater discovered thar the machinery used in establishing the plane was obsolete The plant could produce only 300 cof NPK in 1999 Prior tothe withdrawal of subsidies from chemical feslizers by the Federal Government in 1998, the state used to procure its fertilizers from NAFCON, n Onne, Rivers State; Federal Superphosphate Fertilizer Company, Kaduna; Fertilizer and Chemical Led, Kaduna; and Fertilizer Blending plant, Minna, Niger State
‘The federal and state governments provided the bulk ofthe fertilizers sold in the sac n 1999, 2000, and 2001 The fertilizers were procured by the governments and distributed {retail stores located in the 21 LGA headquarters Sales were made through a commintee cstablished by the Ministry of Agriculture (MOA) in each LGA, Members of the commit- tce were drawn from farmers, the AADP, MOA, LGA, political parties, and some security agencies The Commissioner of Agriculture heads the committee
‘There are also middlemen engaged in che fertilizer busines They procure chemical ferilizers from various sources and sell atthe major markets in the state I is, however, evident that: () delivery of the fertilizers is not vimely, and (i) the eyes of fertilizers in demand are not available For instance, atthe beginning of the 2001 season, only urea and [NDK were delivered by the federal government The quantity of fertilizer distributed to farmersis grosly inadequate The estimated total annual requirement of chemical ferlzers by farmers in the state fs 70410 t This is made up of NPK, 45000 «; urea, 12000 «; and SSR, 13410 «In 2001, only 10310 cor 15% ofthe required quantity were distributed in the tae The detals ae in Table 5
From the situation analysis above, it is apparent that farmers’ needs ate not met in terms of annual fertilizer requirements and this has deleterious effets on productivity at the farm level For any intervention to increase the productivity of farmers in maize, rice, and groundnut, government must ensure an adequate quantity and timely aailabifty of fertilizers to farmers
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For the success of RUSER ic is suggested that (a) farmers should be organized into viable commodity-based groups for input sourcing, marketing, and processing; (b) the state government should provide an enabling environment for private sector involvement in fertilizer procurement and distribution; and (c) the stare government should replace the obsolete blending plane and rehabilitate che abandoned selling points
Agrochemicals
‘Agrochemicals, such as herbicides, pesticides, and seed dressing chemicals, are readily avail- able in retail storesat the state capital and LGA headquarters Some ofthe rerailers also take the agrochemicals to the local matketson market days The demand for these agrochemicals islow due to exorbitant prices charged by the dealers However, the majority ofthe farmers interviewed said chey were prepared to take advantage of the pest control services provided by ức private dealers
Tractors and animat-drawn implements
Trang 20Industrial and domestic utilization of maize, rice, and groundnut
Caunendly thec re no agrobased industries that utilize maize ice, and groundnut as aw raters in Adamawa State, Because production lvl of these crops could not sustain ‘medium and large-scale agrobased industries, a indicated earlier, the transportation cost, of imported raw materials and finshed products forced the previously existing agrobased industries wo relocate to other parts ofthe country Domestic utilization of maze, rice and groundnut is limited Consumption alone could not exhaust the quantities produced in the sate, Value-added activities
Value-added activities o maize are limited due tothe relocation of the four and feed mills ouside the state Processing of paddy eo milled rice i still at che rudimentary stages of development The technology of extracting oil from groundnut seeds is being propagated by the ADP to women's groups The adoption level of this technology is stil very low because of the inadequate number of groundnut oil extractors available
In onder to assess the profitability of processing + and groundnut, daca were collected from some local procestors to estimate the value added in processing these crops ‘The results of the analysis are summarized in Table 6 The denis of the value-added analysis are presented in Annexes 2,3, and 4 Is evident from the analysis that favorable prospects exist for market-driven technology transfer and commercialization in respect of ‘maize, rice, and groundnut
‘Marketing opportunities for maize, rice, and groundnutabound The demand for these ‘commodities for domestic and industrial use within and outside the state is large but the market is not adequately organized,
In processing a tonne of maize, rico, and groundnut
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Factors influencing the effective implementation of market-driven agricultural technology transfer and
commercialization
Technology of production (research and extension support) Agricultural extension service in Adamawa Stace is mainly carted out by the ADP that adopes the Training and Visit extension delivery system The field operations of the AADP are spread over four 2ones across the 21 LGAs The major functions of the AADP as an extension outfit include diagnostic surveys to identify farmers production constraints, one farm adaprive research to-adapx proven technologies emanating fom research institutes on farmers’ fim situations, and technology review meetings These area forum for interaction bperween research and extension to formulate production recommendations The AADP hholds forcnightly taining sessions for frondline extension staf by subject-matcer specialists Extension agents make regular fed visits to contact and noncontaet farmers, using, small ploc adoption technique and management traning plots (MPT) ro demonstrate improved technologies Ie is obvious that effective agricultural extension isthe way to agricultural development Unfortunately, most farmers in the state are yet to achieve the expected level ‘of production and efficiency due o itegular Rơm visits compounded by poor mobility of the extension staf and nonpayment oftheir transport allowances
Trang 22Postharvest activities
Postharvest activities, especially storage and processing atthe farm level, are limited by the inclination of most farmers to dispose oftheir produce immediately after harvest Where processing of maie, rice, and groundnut is carted out atthe farm level, this is manually ‘executed This process is slow and irksome and the volume of output is low Because of the high volume of maize, rice, and groundnut produced, there isa great potential for introducing small and medium-scale processing machines among individuals and fuemer groups Such machines should be promoted through demonstrations before being sold to farmers
Private sector involvement
“The private sector is mainly involved in input supply and distribution but nor in formal technology transfer to small-scale farmers However some of the major agroinput dstibu- tors occasionally train cheit marketing agents on pesticide application, The distribution neowork of the private dealers terminates at LGA headquarers To faciliate technology transfer, the inputs need to be brought closer co che farmers in the rural areas Currently, the involvement of the private sector in technology commercialization is limited to market- ing che available on-the-shelf technologies However, most of these technologies are not geared co meet the needs of any specific end-users For example, while farmers demanded hybrid maize varieties because of their higher yielding potentials compared to OP maize, the private sector seed marketer could only provide OP varieties The input dealers should take into consideration the specific needs ofthe farmers in stocking their inputs
Market opportunities and infrastructure
‘Market opportunities abound forthe profitable commercalization of technologies associ- ated withthe production and usiliztion of maize, rice, and groundnut The infrastructures for the storage ofthese commodities at the primary and terminal markets ae inadequate; hence commodities are stored and marketed in the open This has adverse implications on handling commodities and the lack of quality control consequently deprecates their value, LGAS should, therefore, be sensitized o provide the necessary infrastructure chat wil enhance better handling ofthese commodities Producers and marketers should be trained ‘on commodity handling, quality control, and standardization,
“The input and ourpur markers in Adamawa State ae not well-coordinated or organized However, some retailers and itinerant trader sell some ofthe inputs inthe open market on village marketing days Tiss associated with problems of adulteration and improper dosage in the case of agrochemicals and fertilizers and low quality in respec of planting materials, including grain sold to farmers as seed for planting To alleviate these problems, farmers should be organized into groupe as retailers and be linked directly to input dealers “Two systems of marketing these commodities were observed during visits to primary and terminal markets The fst system involves petty traders and itinerant dealers taking grain to village periodie markets to sell The second system involves long distance trade
Trang 23‘connecting other states and industrial centers with the producing areas Buying agents pur- chase grain direetly from farmers or from village market wholesalers Farmers as individuals ddo noc deal directly with the industries because ofthe large quantities involved and the high quality required Farmers have not been organized into viable groups to take advantage of bulk purchase opportunity provided by the buying agent
Microcredit support facilities
‘The small-scale farmers cultivating maize, rice, and groundnut have no access to formal ‘mierocredie facilities administered by financial institutions There is no evidence of the AADP linking these farmers to the nancial institutions Most ofthe farmers interviewed complained that they wete unable to expand the cultivation ofthese crops because of inad- equate capital Some ofthe farmers obtained credit fiom informal sources with high interest rates and this had adverse implications on the teal income realized from sales of output
The importance of credit to farmers is crucial for expanding theie production Formal credit iscirations prefer to provide credit to farmers groups rather than to individuals to reduce the associated repayment risk Therefore the ADP needs ro organize the farmers into commodiry- and actvity-based cooperative groups with a view wo taking advantage of
the microcredit ficiltes available in the financial institutions With adequate provision of credit, che farmers will have full control of thei output and will undertake related marketing fanctions including processing, storage, and transportation of the commodities
Low farmer empowerment
“The ADP has not given deserved attention tothe importance of organizing farmers into cooperative groups Out of the women's groups formed, only three have been registered ‘There isno active efforeto form commodity-based groups The team was informed that the seate government had directed the Ministry of Agricultuce and Rural Development (MARD) to collaborate with the AADP and organite farmers into commodity- and activty-based ‘cooperative groups at the state, LGA, and ward levels Ths will enable the groups to ben- fit from agricultural development packages provided by various agencies The critical role farmers’ groups can play cannot be overemphasized, hence, fr the success of RUSEP che Rural Institution Development uni of the ADP needs co step up its activities in group ‘mobilization and formation
Policy instability
‘Aggiculeural programs in Adamawa State have suffered from frequent changes in govern- ment policies High turnover rate ofthe leadership in the state MARD has not ensured continuity in government policies However, the state government recognizes the need to revitalie agriculture, Consequently, it has prepared a blue print for intervention in agricul- tural development A review of the document indicated thac RUSEP strategy is consistent swith the proposed intervention
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4
Appropriate intervention framework to operationalize
the concept emphasizing roles and responsibilities of all stakeholders
“The three major crops identified to have comparative advantage in their production, uti- lization, and commercializtion in Adamawa State are maize, rice, and groundnut The potentials ofthese crops have not been fully realized due ro numerous constraints calier discussed In this section of the report, practical interventions ae proposed to enbance the production, procesing, and marketing ofthese crops ‘This cardinal goal of increased production and income as well as improvement in the standard of living ofthe rural populace can be realized through the development of a dynamic partnership The relevant principal actors include research, extension, farmets
inpur dealers, procesors, marketers, market information agencies, Snancal institutions, policy makers, and NGOs as well as CBOs The fllowing changes te, therefore, proposed to improve the role performance and responsibilities of the principal akeholders
Policy and institutional support Research and development
Except under special programs, research and development are currently caried out based ‘on the intuition ofthe scientists and their sponsors, with lie or no involvement of the intended beneficiaries Under RUSEP relevant stakeholders should initiate necessary research on maize rice, and groundnut Research chruse should be on farmers’ needs identified during diagnostic surveys in which farmers were atively involved Government should provide the necessary support to conduct technology adaptation research to solve specific problems of these crops
Extension
‘The government policy on extension should focus on insticutionaizing the inkage between the ADP and other stakeholders Government should also support mass demonseeations of improved technologies and practices through multilocation of uaining plows Extension delivery services must be strengthened, especially in terms of better funding, staff motiva- tion, and improvement in the provision of logistics and mobility The AADP should shift its technology delivery method from individual contact to group contact Consequently, the casting Rural Intiutions Department subprogram of the ADP should be strengthened
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to organize farmers into producers’ and marketers’ groups The village extension agents of the AADP should then work with these farmers’ groups and associations of producers and
marketers associations During RUSEP implementation, farmer’ education should be emphasized to update and upgrade cher technical knowledge in the production, process ing, and marketing ofthese erops
Finance
“The inancilsupportto the AADP from the state government is inadequate for the effective delivery of extension services to farmers However, the recommendation othe state govern= ment to allocate 25% ofits annual budget to agriculture, ifimplemenced, wil improve the financial support of agriculeural programs being
do not have access to production credit facilites Appropriate mechanisms should be put in place by the ADP to link farmers’ groups to Financial institutions
ed Farmersin the selected locations
» Dissemination of information
‘There is no deliberate goveenment policy in the sate to promote a market information system (MIS) Although che ADP collects data on commodity output prices for planning purposes, no deliberate artempe is made co use these data to promote marketing activi- ties adequate MIS is pur in place, it would assist noc only producers and marketer but ‘would also enable the state government to intervene when necessary to stabilize commodity
prices
Promotion of private sector involvement in technology transfer and commercialization
Existing service providers input dealers, fabricators of postharvest machines, and proces sors should be encouraged to provide effective services to support production, processing, and marketing of maize, rice, and groundnut by being linked co financial insticutions to dobeain credit and expand their activities More efforts should be geared towards organiz- ing producers, including women’ groups, into commodity-based cooperatives and trade associations These should be registered so that they would be ina position to benefit from governmencsponsored agricultural development activities
Commer: tion of inputs/output markets
Trang 26Fertilizer
‘Middlemen are engaged in the fertilizer marketing business They procure chemical fertlz- crs from various sources and sell atthe major markets Howeves, the delivery ofthe eriizers not timely Some ofthe demanded types of feclzers are not availabe Farmers needs are sot fully met in terms of annual fertilizer requirements and chis has deleterious effects on productivity ar the farm level Farmers should form producer groups and source fertilizers in good time, say, by January every yeat More private retailers should be encouraged to participa in ferilizer distribution by being provided withthe required logistics fr handling fertilizers such as warehouses, retailing points, and vehicles The state government should establish a good blending plant and rehabilitate che abandoned selling ceners
Seeds
‘The private sector dominates the production and marketing of improved seeds The involvement of local farmers in seed production and marketing as an enterprise is yer to be adequately developed To improve availabilicy and reduce the cost of production, rurl-based ‘community seed enterprises should be developed involving farmer groups The ADP has crucial ole to play in terms of providing technical support and quality control The sed marketers have nor met the farmers’ demand for hybrid maize seed The linkages berween research institutes, farmers, and industrial users of the product should be strengthened such that che production of hybrid maize seeds would be demand-driven,
Agrochemicals
Procurement and disteibution of agrochemicals flly commercialized However, che AADP should monitor the distribution and prevent adulteration Agrochemical merchants should be encouraged to train thet retailing agents on the handling and application of the agro- chemicals in such a manner that they would relay ths information to the farmer uses
Tractor and animal-drawn implements
Private sector involvement inthe hiting of tractors and/or animal-drawn implements for cultivation sno filly developed Private individuals and farmer’ groups shouldbe encour- aged to procure tractors and/or animal-drawn implement for hiring o farmers This can bbe achieved by linking them to ered institutions for loans
Output disposal
Farmers produce most ofthe crops for cash About 60% of the crop ouput is sold in rural and urban markets However, only very few farmers are actively involved in selling theie ‘commodities in the marketplace, The pattern of crop disposal is such that most ofthe farm produce is bought by grain merchants who stock it until prices increase later in the year for eransport it tothe larger markets in the southern part of che country Apart from these ‘merchants, other organizations buy up large quantities of farm produce These include agents of breweries such as Golden Guinea and Nigerian Breweries who buy guinea corn; ‘Maiduguri Textile Industries buy cotton; Sun Oil, represented by Afcort, and some oil mills
Trang 27
from Kano buy groundnut and cotton seed These companies have buying agents who buy the farm produce in large quantities during the harvest season The collapsed Inter-State Floue Mill used ro buy maize The deals ae in Table 7,
“The activities ofthe merchant middlemen or agents consticure exploitation of the rural farmers and do not allow efficiency in the marketplace Ii therefore suggested 2 follows for effective commerciaization of the output market
+ Agricultura extension should be improved to educae the farmers on the benefits of direct involvement in handling their marketed produce
‘+ Prosuction credit support should be available to farmer groups to increase their ‘capacity fr storing, processing, and marketing chee produce
+ Individuals and farmers groups should establish cural-based cottage level
agroprocessng to process maize rice, and groundnut into intermediate products for ‘other industries or for export
Human capital development
Development ofall relevant stakeholders is critical for effective implementation of market- driven technology transfer and commercialzation The interactions with the stakehold- cs indicate the following taining needs ro be addressed in the course of implementing RUSEP
‘The AADP should erain producers (farmers and farmer groups) on:
1._ agronomic practices and furm management using the MTP approach; thsi because the euzrent yields of maize, rice, and groundnut in the selected locations are below the expected yields fo farmers using improved varieties of seeds,
2._ group management and principles of cooperation using adult education techniques to promote group formation and derive the benefits of cooperation, and
3 poscharves activities in maize, rice, and groundnue using demonstration methodolo- gies to incorporate value added to the produce
Experts selected by the ADP should train processors (individuals and groups) on the techniques of parboiling and milling ric: oil extraction from groundnut, and simple, routine maintenance of equipment This will enable the incorporation of value added, quality improvement, and quality control ro produce and also improve the efficiency of the processing techniques
Experts selected by the AADP should train traders on storing, packaging, and handling ‘techniques This will improve the quality control measures in the operations of the trad-
“The representatives of agrochemical companies, facilitated by the ADE, should train suppliers and marketers on the handling and application of ferilizers and agrochemicals ‘This will enable them to provide the needed appropriate advisory services to the farmers
‘The AADP should train certified sced producers on seed production technology and the application of diagnostic skills in the need assessment of the farmers This will enable them to produce improved seed varieties that are tailored to the requirement ofthe farmers
Trang 29Experts drawn by the AADP on the technology of pesticide application should train contract sprayers This will promote the involvement of the private sector in pest control services ‘The Project Monitoring and Evaluation (PME) subprogram of the AADP should be trained con the methodologies and application of effective MIS so that appropriate marketing data are collected and relayed to the farmers to enable them take advantage of interspatial price and output differentials In this regard, the PCU-ADP intranet will be ofimmense advan- ‘age as MIS data from different states could be browsed
Market information system (MIS)
‘The existing MIS concerning production, processing and disposal of maize, vice, and groundnut in the selected locations can be described as undeveloped The prevailing prices are discovered through bargaining and haggling There are no market bulletins, publica- tions, or electronic broadcasts that enable the producer, traders, and consumers to know the ongoing prices of produce before any ransaction Consequenty, most ofthe marketing agents approach the market in complete ignorance This positon encourages the middlemen and traders o dictate prices that would be considered arip-offby producers and consumers ‘Active efforts should be made to ensute that che agents (producers, traders, and consum-
es) have pretrade knowledge of the ruling prices at the inputs and output markets This will enable producers to plan adequately about how much, when, how, and for whom to produce in order to optimize their goal
Teil enable traders/merchants to incorporate more value added in the commodities they deal with in order co earn their margins, Iwill also minimize the cost of market search for the consumers To achieve chs aim, we make the following proposals
1 AADP enumerator should collet nor only output prices but also input prices daring surveys of the major markets and disseminate the information through publications, radio and television broadcasts in local languages and English on a fortnightly bass throughout the state and also via the PCU-ADP intranet,
2 Bulletins, pamphlets, and other publications in loca! languages and English should be published on a quarterly basis detailing availble esearch results, extension messages, structure of input and ourpuc markets, and location of processors and industries using maize, rice, and groundnut
3 In dealing with the farmers, the ADP should also provide the farmers with the ‘current information on research, extension, trends, and forecasts of input and ourput
Trang 305
Conclusion and action plan for RUSEP-
implementation
‘The needs assessment study carried out in Adamawa State revealed that maize, rice, and groundnut have potentials for market-driven technology transfer and commerialization ‘These potentials are due to agroccological requirements suitable for the cultivation of these crops and high marker demand within and outside the sta Relevant and appropri ate on-the-shef technologies are available to improve the production and productivity of these crops and there are potential markets within and outside the state However, certain ‘constraints that may impede increased production ofthese crops were identified and docu- ‘mented Recommendations to address the constraints were also proposed Local leaders and the relevant stakeholders (farmers, input dealers, ourput marketers, financial intiutions, ete), should be informed about RUSEP
For effective implementation of RUSEP activities in the state, the following action plans are recommended
Farmers
In che selected areas, farmers should be organized into commodity- and activiy-based groups, including women's groups Arrangements should be made so get these groups registered Such groups should be empowered through training to be able to carry out seed production activites, inpur sourcing, group marketing, processing, er The groups require training on group management, credit sourcing, farm management, exc On each participating farmer’ land, 0.5 ha should be established for MTP for practical raining! demonstration on maize rice, and groundnut production agronomic practices Yield data from those MTP should be compared with farmers’ own yields
Input dealers
Linkages with input dealers should be established for the supply of hybrid maize seeds, proved rice seed (FARO 44) and improved groundnut (RMP 12 and Ex-Dakar) When fertilizer and agrochemical requirements of farmers participating in RUSEP have been determined, 2 mechanism should be set up to facilitate timely procurement by farmers! groups Individual marketers should also be organized into marketers groups
Trang 31
AADP
Frontline extension staff who are expected to work with farmers in this project need to be trained on improved agronomic practices before the planting season These tained extension
‘workers should in tum train che farmer participants Staff of the ADP requires training on the methodology for effective MIS A mechanism is needed to collect and collate matket
information and establish feedback to participating farmers A training program and feld days for farmers are needed The seed multiplication plan for 2002 should include rice seeds (FARO 44) and groundnut sed (RMP 12 and Ex-Dakar) to augment domestic supply In addition, a hiring unie for animal traction should be sec up When processors have been identified and inventoried, AADP should arrange for required training
‘The ongoing project should be monitored on a regular basis
Trang 32‘Annex 1 Average market prices for the major crops, 1999 and 2000
“Major crops ‘Wilronne in 1999 Maize 14,660 Miller 15,720 Sorghum 14,660 Rice 45,350 Cowpea 40470 Cassava 15,430 Soybean NA Yam 32,330 Cotton NA Groundnut 47,540 Wheat NA Vegetables 57663 Ta ‘Annex 2 Value added In processing malze In eobe to maie graln Inflows
Revenue from sales
Subtotal average price, 1999-2001 Outflows ‘Operating expenses Labor, 3 man-days “Transport Maine in husk average price, 1999-2001 Bags Subvotal operating cost Firing value of aes for proces Housing
Trang 33‘Annex 3 Value added In processing paddy rice to dehusked rice Tu
Revenue from sles
Subrotal average price 1999-2001 Outfiows Operating expenses Labor, 3 man-days Teanspore Paddy rie average price, 1999-2001 Milling Destoning Bags
Subtoral operating cost
Hiring vale of ses for processing 1 tonne Housing
Boling drum Other fixed acts
‘Subtotal fixed cost
‘Group commitment Toul ens
‘Net benefit before tax
Trang 34‘Annex 4 Value added in processing groundnut seed into oil Inflows
Revenue from sales
Trang 39‘THE International Institute of Tropical Agriculture About IITA (UTA) was founded in 1967 as an international agricultural research institute with a mandate for
improving food production in the humid tropics and to develop sustainable production systems Tt became the first African link in the worldwide network of agricultural research centers known as the Consultative Group on International Agricultural Research (CGIAR), formed in 1971 IITA’s mission is to enhance the food security, income, and well-being of resource-poor people primarily in the humid and subhumid zones of sub-Saharan Africa, by conducting research and related activities to increase agricultural production, improve food systems, and sustainably manage natural resources, in partnership with national and international stakeholders To this end, IITA conducts research, germplasm conservation, training, and information exchange activities in partnership with regional bodies and national programs including universities, NGOs, and the private sector The research agenda addresses crop improvement, plant health, and resource and crop management within a food systems framework and targetted at the identified needs of three major agroecological zones: the savannas, the humid forests, and the: altitudes, Research focuses on smallholder cropping and postharvest systems and on the following food ‘crops: cassava, cowpea, maize, plantain and banana, soybean, and yam,
Trang 40
About RUSEP
RUSEP is a market-led agricultural technology transfer and commercialization project The project was conceived in recognition of the need to increase private sector investment in the agricultural sector The project intends to promote effective linkages between producers, processors with markets and to improve agricultural productivity in Nigeria
Market development is a key aspect of the project This involves the identification of commodities with market opportunities, the organization and training of clients, including farmers, processors and traders ‘Thus providing the necessary skills and information
to respond to the demands of market opportunities Facilitating market information flow through an active market information system provides increased access to, and use of, improved agricultural inputs This aims to generate effective business linkages and agricultural trade
RUSEP provides a coordinated and synergistic approach with existing public and private support (input and credit) institutions to increase the effectiveness and impact of research This is with the aim to expand opportunities in output markets beyond their present capacity in order to transform the rural ‘economy from subsistence to commercial agriculture ‘Thus, the project will contribute to wealth creation, generate employment, diversify incomes, and increase food security in both rural and urban areas