Food Trade East and Southern Africa recognizes the trans-formative potential of agriculture and trade to improve the lives and incomes of thousands of small scale farmers, as well as strengthen food security in the region. To harness this potential and bridge the gaps that exist in the trade of staple foods in East and Southern Africa, FoodTrade ESA is investing in innovative systems to allow small-scale farmers to improve their inputs and gain access regional markets. We support the private sector, governments, and other development actors to bring small scale farmers closer to the heart of agricultural systems in East and Southern Africa.
Our mission: to catalyze lasting changes that enable efficient trade in staple foods across the region to improve the lives of farmers, suppliers, service providers, traders, retailers, and consumers.
Our vision: to unlock trade across borders and across the region to get more food to more people.
“We aim to ensure that more staple food is traded and more people benefit from participation in national and cross border value chains for staple foods.”
Innovative System for Improving Soya-bean Value Chain in Uganda. The grant is to be funded by Challenge Fund Round 4: Soybean value chain channeled through FoodTrade East and Southern Africa and to be Co-Funded RUFORUM and aBi Trust through The Development Analyst -International
Mr. Ocilaje Michael- PhD student (to-be) and Master Students to be identified by College of Agriculture and Environment (CAE) shall conduct PhD and Masters’ Thesis in the same topic. The Development Analyst International shall be responsible for the implementation of the Grant.
The project shall promote aggregation of smallholder farmers into groups and links producers with off-takers to enable then achieve economies of scale along the soyabean value chain and meet the standards and requirements of modern markets and address other barriers of modern market access.
The project shall work with existing farmers’ platforms such Village Saving Groups, SACCOs, Special farmer groups. Where there are no groups, the projects shall set up farmer groups. The aggregation is a key issue for the development of the Soyabean Sub-sector sector, as it generates higher level efficiencies in the sub-sector. Again, aggregation supports Soya bean farmers to improve their productivity through increased access to services and markets, and enhances their competitiveness by reducing transaction costs of companies choosing to work with them. It also has number of advantages which includes, among others;
– a key constraint of smallholder farming is access to guaranteed markets for crops.
When farmers are aggregated and have higher volumes to offer and greater bargaining power, they can diversify their off-taker base. Intermediaries, can then promote the integration of their products in the international market.
– aggregation provides significant increases in income for smallholder farmers by providing demand-driven services that facilitate in creased productivity, including access to improved
inputs and value added services (sorting, grading, drying, warehousing, credit provision).
– collective action gives farmers bargaining power to secure better prices.
Cost saving –
aggregation enables smallholders to reduce transaction and overhead costs by
purchasing inputs together, reducing the cost of transport per farmer and accessing discounts through bulk purchasing.
B4. Explain how the project will provide smallholder farmers with either of the following (i) an off-taker market for Soybean produce at a fair price (ii) adequate input supply, (iii) provision of agriculture extension services and support services to farmers and their organizations
(Please describe your plans to fund the remainder of the budget-enter breakdown below)
(i) an off-taker market for Soybean produce at a fair price:
Using different models, the project shall work closely with different structures such as Farmer Development Centres,farmer filed schools, intermediary organisations ( input suppliers, NGOs, warehouses) , producer organisations( informal and formal organisations to provide market for soyabeans. These models help in aggregation of smallholder farmers into groups links producers with off-takers and can help achieve economies of scale along the value chain and meet the standards and requirements of modern markets and address other barriers of modern market.
(ii) adequate input supply,
Depending business model adopted, the project shall work with private sector and other development actors (see 1 above), with of promoting the participation of small-scale farmers in the production and marketing of soybeans, as well as improve input supply.Partnerships shall help address market failures in storage, inputs, service markets, as well as coordination mechanisms and policy regulation. This will go along way in improving the yields and livelihoods of soybean farmers, contribute towards strengthening food security and translate into several benefits to consumers.
(iii) provision of agriculture extension services and support services to farmers and their organizations
In line with fund objectives, the project shall work with different extension systems of the organisations profiled in the country that provide extensions services including government one single spine extension recently established. The project shall use major extension approaches used by these organisations such as : Needs assessments, orientation sessions and the training of all involved actors as part of individual or community mobilization and capacity building activities. The other include; field experiments, demonstrations, field days and discussion group meetings at which sales representatives from seed houses and agrochemical companies talk on new varieties and other innovations. Field days at off-station research sites to extend technologies.
The project shall also provide a number of business services based on the situation in the country namely: group training, individual counseling and advice, the development of new commercial entities, technology development and transfer, information provision, business links and policy advocacy. The services include;supporting organized rural retail agro-inputs dealers in rural areas,provision of BDS to farmers through associations and cooperatives,provision of direct services to promote production for export processing, a farmers initiative for production of seeds, to name but afew:
|B4. Explain how the project will provide smallholder farmers with either of the following (i) an off-taker market for Soybean produce at a fair price (ii) adequate input supply, (iii) provision of agriculture extension services and support services to farmers and their organizations|
|Total grant amount requested range (Must be greater than £250,000 and less than £800,000)||300-600K|
|Grant as % of total project budget (calculated by system)||48%|
|Applicant matching investment amount||340,000|
|(Please describe your plans to fund the remainder of the budget-enter breakdown below)|
|Applicant’s cash investment|
|Applicant’s bank loan(s) or facilities|
|Investment from applicant’s partner company(ies)’s|
|Other sources(cannot include funding from other donors i.e. DFID, USAID, Gates, etc)|
|Total applicant investment (Sum of B12, B13, B14, B15)||340,000|
|Applicant investment amount as a % of total project budget (calculated by system)||52%|
|How did you find out about Food Trade ESA?
History of the business
D1. Briefly outline the broad history of your business
D2. What is the capacity of your business to be able to successfully implement the proposed project? In areas where you need to develop the capacity, please outline investments you will be making and when you will be making those investments.
Management and Personnel
D3. Set out the structure and key skills of management team and staff responsible for project oversight and implementation
- COMMERCIAL RISKS
E1. How does the funding you are seeking enable you to reduce your commercial risks and enable you to generate further funding for your investment (i.e. including funds from commercial banks, etc)?
E2. Have you approached a commercial bank to finance this investment? If yes, what was the outcome?
- Cross –border trade and regional markets
F1. Each investment must have regional impact. Please describe how your project will increase regional trade of staple foods. (250 words)
- Markets and Competition
G1. List the primary buyers to whom you will sell your products/services
G2. List your primary suppliers and identify possible constraints (max 150 words)
G3. List and analyse the major competitors; sources of competition (max 150 words)
|G4. What is your sales and marketing strategy? (max 150 words)|
|Expected Project Impact.|
|Direct Impact: Job Creation|
|H1. The number of estimated new jobs created by this investment|
H2. Describe and justify the new jobs
H3. What % of these jobs will be for women?
|Direct Impact: Beneficiaries|
|H4. Describe the potential impact on small holder farmers|
|H5. Estimated number of poor farmers and consumers that will directly benefit during the life of this investment.|
|Direct Impact: Benefits to other businesses within the value chain/supply chain|
|H6. Description and justification of the benefits to other businesses within the supply chain (suppliers, buyers, service providers)
J1. Description of a positive environmental impact? (150 max)
J2. Describe potential environmental and social risks and mitigation strategies (150 max)
J3. Are there other factors which will affect the success of your project, such as policies/regulations and the status of physical infrastructure? How will your project manage these factors? (150 max)
- Financial Statement
|The next sections MUST be completed in conjunction with FoodTrade ESA Application Workbook.xls.The narratives and numbers presented in these sections must be consistent with the more detailed workings in Application Workbook which can be downloaded from CF application webpage and then must be completed and uploaded along with application.|