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Tag: agribusinesses

Ethiopian machines for Ethiopian farmers

Techno-Nejat owner Usman Abdella, operations manager Ali Mussa, and GIZ project manager Ralf Barthelmes with a recently completed seed cleaner at Techno-Nejat workshop in Adama, Ethiopia. (Photo: Adane Firde)

In many sub-Saharan countries, including Ethiopia, smallholder farmers of legume, wheat, and maize struggle to maintain their own food security, produce higher incomes, and promote economic growth and jobs in agricultural communities.

As farmers, fabricators, and aid workers collaborate to move forward on this problem, innovative solutions are moving out into the field – and generating new ideas across the continent.

Where are machines for small farmers?

Machines tailored to local needs and conditions can often make a big difference–but most agricultural technology is designed and produced to meet the requirements of massive, commercial farms. To help close this gap, Green Innovations Centers (GIC) work to connect smallholding farmers with locally produced technology that can transform their business, their family lives, and their local economies.

Launched in 2014 by Germany’s Federal Ministry for Economic Cooperation and Development’s special initiative, ONE WORLD No Hunger, the GIC collaborate with the International Maize and Wheat Improvement Center (CIMMYT) to increase agricultural mechanization in 14 countries in Africa and two in Asia.

Technician at Techno-Nejat workshop, Adama, Ethiopia. (Photo: Adane Firde)

The need for seed

Informal seed systems, in which farmers save and reuse seed, and exchange low quality seed with other farmers, are prevalent among Ethiopian smallholder farmers. Seed cleaning plays an important role in helping farmers build high-yielding seed development systems by removing seed pods and other chaff, eliminating seeds that are too small or infected, and refining the seeds to a high-quality remainder.

After GIC staff in Ethiopia identified seed cleaning as a critical need for smallholding farmers in the country, researchers set out to develop a solution that was affordable, sustainable, and adaptable to local demands.

Local machines for local farmers

In 2022, GIC Ethiopia partnered with Techno-Nejat Industries in Adama, Ethiopia, to design and produce a first run of mobile seed cleaners for use by smallholding farmers across the country. Techno-Nejat has an established track record in agricultural fabrication and was eager to take on the new collaboration.

In early March, the company completed the initial delivery of eight seed cleaners. The machines process chickpea, soy, wheat, and barley seed with a maximum capacity of 1.5 tons per hour. With wheels and a compact, efficient design, they are also easy to move from one farmer’s property to another. At a cost of US $7,500 and a production time of 55 days, the machines have potential both for expansion within Ethiopia and scaling up for export.

Mr. Zogo, owner of Techno Agro Industrie in Benin, with Ali Mussa, Adama, Ethiopia. (Photo: Adane Firde)

Seeding future collaboration

Smallholding farmer cooperatives will take delivery of the first eight seed cleaners in the coming weeks. And while Ethiopian farmers are ready to experience the immediate benefits for their operations, this innovation is also showing promise for additional collaboration.

“Through existing GIC networks, we have connected with Techno Agro Industrie, a company manufacturing seed cleaners in Benin,” said Techno-Nejat’s owner Usman Abdella. “We welcome partnership opportunities, and we extend the red carpet,” Usman said.

As funding for GIC’s mechanization effort winds down, this organic, private Ethiopia-Benin partnership holds promise to generate continued benefits of innovation after the project has concluded, fostering South-South collaboration within Africa.

Private sector support essential for agribusiness

Samantha Power, Administrator for USAID, in an interaction with colleagues from SSSC and CIMMYT in Nepal. (Photo: Kaji Ram Bhatta/CIMMYT)

On February 7, Samantha Power, Administrator for the United States Agency for International Development (USAID), visited SEAN Seed Service Centre (SSSC) in Thankot, Nepal. Her time at the seed company — which is supported by the Nepal Seed and Fertilizer (NSAF) project — provided an opportunity to learn more about how private sector support for agribusiness can help accelerate Nepal’s agricultural transformation.

The event began with a tour of the company’s facilities and seed lab, where Power met with breeders and employees responsible for sorting and grading seeds. Other stops on the visit included meetings with SSSC management and researchers from the International Maize and Wheat Improvement Center (CIMMYT), who explained the important role the private sector plays in the country’s seed sector, from the development of climate stress tolerant varieties to facilitating seed access and distribution.

The Administrator and USAID officials at a round table with private sector on transforming Nepalese agriculture. (Photo: Kaji Ram Bhatta/CIMMYT)

Later in the day, Power participated in a round table discussion with agribusiness entrepreneurs from seed and agricultural production companies, fertilizer manufacturers and distributors, and farmers cooperatives to better understand the key challenges and opportunities in fostering agricultural transformation in Nepal. The talks focused on the need for reforms on seed and fertilizer markets and elimination of market distorting policies such as unplanned subsidies, as well as the need to facilitate access to finance to boost investments and insurance to manage risks.

Key recommendations from participants included increased use of technologies — such as improved seeds, machineries, improved soil fertility management and digital tools — as well as the creation of a more enabling environment for attracting private sector investment and increasing agricultural participation among youth and disadvantaged communities in Nepal. The private sector plays a critical role in bolstering national food security, increasing economic growth, and creating transformative change in the country’s agricultural sector so it can be more commercial, competitive, and inclusive. Participants provided suggestions on how the Government of Nepal could further support the sector, allowing agribusinesses to develop and grow in order to cater to the needs of smallholder farmers and consumers.

CIMMYTs Nepal Seed and Fertilizer (NSAF) project is funded by the United States Agency for International Development (USAID). It aims to develop competitive and vibrant seed and integrated soil fertility management (IFSM) systems for inclusive and sustainable growth in agricultural productivity, business development, and income generation in Nepal.

For women in Ivory Coast, processing cassava no longer has to be a grind

Attieke is the national dish of Ivory Coast. Served with fried fish or a vegetable stew, this tangy, fermented side is the heart and soul of Ivorian cuisine. And because it’s made from cassava, attieke is gluten free. So, in addition to its status as an iconic food of hospitality from Abidjan to Yamoussoukro, attieke has the potential to catch on in distant locales.

Producing attieke is complicated—transforming tubers in the ground into a delicious bowl of couscous-like cassava involves harvesting, peeling, grinding, fermenting, pressing, and effectively storing the processed crop. And in Ivory Coast, this work is traditionally performed almost entirely by women.

A cooperative member processes cassava using a manual grinder. (Photo: Sylvanus Odjo/CIMMYT)

A grueling process

Traditional methods for processing cassava, however, are very slow and extremely laborious. “We had to use a wooden plank with nails [to grind cassava]”, said N’Zouako Akissi Benedicte, president of the local agricultural cooperative in Mahounou, Nanafoue, about 30 kilometers from the capital, Yamoussoukro. To remove the liquid from the ground cassava, Ivorian women used “a kind of screw press” that required so much strength that “it caused us pain in the chest.”

In addition to being painful and grueling, these manual methods are terribly inefficient, generating about 30 kilograms of product per hour. Benedicte said a worker could process very little cassava in a day’s work using this traditional approach. Limited physically by this hard manual labor and struggling to generate enough income to establish financial independence, women working in cassava production in Ivory Coast face difficult challenges.

Hydraulic cassava press. (Photo: Sylvanus Odjo/CIMMYT)

Lightening the load

Three years ago, things started to change for Benedicte and other women working in cassava production in her area. At that time, her cooperative partnered with the Green Innovation Centers for the Agriculture and Food Sector (GIC) of Ivory Coast to receive training to use hydraulic-powered cassava grinders and presses. These machines, which GIC helped design and adapt for the climate and cultural context of Ivory Coast, promised to significantly increase speed of production while making all aspects of cassava work more accessible to women. For instance, the grinding capacity of the equipment is around 600 kg/hr.

Launched in 2014 by Germany’s Federal Ministry for Economic Cooperation and Development’s special initiative, ONE WORLD no hunger, GIC collaborates with the International Maize and Wheat Improvement Center (CIMMYT) to increase agricultural mechanization in 14 countries in Africa and two in Asia.

Beyond helping Benedicte’s cooperative finance the purchase of the new machines and providing instruction in their use, GIC offered the agricultural cooperative a broad range of seminars on topics including selecting seed varieties, soil preparation, processing, and commercialization. This comprehensive approach set the women of Mahounou, Nanafoue up for success.

Gas powered mechanical cassava grinder in Mahounou, Ivory Coast. (Photo: Sylvanus Odjo/CIMMYT)

A message for my sisters

For Benedicte, the new grinder and press are making a huge difference. “The press with the hydraulic system is very efficient and we no longer need to use so much effort to remove the juice,” she said. According to Benedicte, workers in the cooperative are now processing up 1,000% more cassava per day and are only limited by the availability of raw material.

Better yield is also generating financial improvements for these women. “A woman who is working can buy her own machine and earn money that can be used for the education of her children,” Benedicte said. “I have a message for my sisters: a woman cannot solely depend on her husband and expect him to provide everything.”

GIC is working with 32 other groups like Benedicte in Ivory Coast, and the mechanization program has impacted the work of 1,000 women so far.

Taking the next step

There are still hurdles to overcome. In Mahounou, women producing cassava are relying on men to ignite the machines, and when a grinder or a press breaks down, it can be difficult to find spare parts. Benedicte believes electric machines could help solve both problems and take their business to the next level. “We would like to increase our production and sell it at an international level,” she said. “We would like to have a small processing unit here for women that could be used to produce high quality products for the international markets.”

GIC also has plans for a technology transfer that could reproduce this successful program in Malawi. Ivorian staff are collaborating with colleagues there to develop a cassava grinder and press for the Malawian context.

For Benedicte, there is more than food and income at stake in the success of these efforts. “It is important to be autonomous in taking charge of our own expenses,” she said. “This is being a woman. So, please, I invite my sisters to work.”

Cover photo: N’Zouako Akissi Benedicte, president of the local agricultural cooperative, with cooperative members and mechanical cassava grinders. (Photo: Sylvanus Odjo/CIMMYT)

In Burkina Faso, a business model for mechanization is providing hope

Ouattara Ali grows rice and maize on a small parcel of land in a village on the outskirts of Bobo Dioulasso, Burkina Faso’s second-largest city.

In the eight years since he began farming, he has faced significant challenges because he depends on traditional practices. Other smallholders in the community are in a similar situation, which limits their ability to realize greater prosperity.

A steady trickle of young adults is leaving the area to find work in the city as an alternative to the difficulty of trying to make ends meet on limited hectarage, coping with erratic harvests and with no guarantee of long-term financial stability.

This story is not unique to Ali and his community – it is familiar across Burkina Faso and other nations where the problems of food security, reliable employment, and dependable income limit economic development in rural areas.

Mechanization as a business

To help communities tackle these challenges, in 2014 Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) created the special initiative One World No Hunger, which launched Green Innovation Centers for the Agriculture and Food Sector (GIC) in 14 countries in Africa and two in Asia. In Burkina Faso, the GIC focuses primarily on the sesame and rice value chains in the Hauts-Bassins, Cascades, Boucle du Mouhoun, and Sud-Ouest regions.

These initiatives include the introduction of mechanized agricultural practices that can increase yields of maize, rice, and other crops. In connection with GIC, farmers like Ali have used machines across the full agricultural value chain – from seed development to post-harvest – to improve their own crop yields. Mechanization has also enabled them to offer their services for hire to other farmers in the area.

Mechanization is a significant economic driver for boosting development of farm areas, but to achieve sustainable success and maximize the ability to bring transformative change to communities, business model development must be a critical focus area.

One of Ouattra Ali’s two-wheel tractors that he uses to provide machinery hire services to nearby farmers. (Credit: Rabe Yahaya/GIZ)

In August, the International Maize and Wheat Improvement Center (CIMMYT) and Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH, collaborated with the United Nations Food and Agriculture Organization (FAO) and Germany’s University of Hohenheim to host a webinar on business models for agricultural mechanization projects. Joining the conversation were 48 participants from countries including Burkina Faso, Nigeria, Benin, and Vietnam.

During the webinar, FAO Senior Consultant Karim Houmy presented research on business models from two case studies of agricultural mechanization hire services in sub-Saharan Africa. Houmy found five basic types of business model, each with its own structure, complexity, and requirements, but he also outlined common features that characterize all successful models.

Many models, a few key principles

The basic business model for agricultural mechanization involves a farmer who uses machinery on their own crops, and then subsequently provides the same services to neighboring farmers. This model is probably the simplest and least expensive. Any smallholder who can procure the necessary machinery, parts, and training can launch this small business, generate additional income, and help neighbors increase their yield. This model also has limits, however, as it restricts farmers to a relatively small footprint of clients whose farms are located near the service provider.

At the other end of the scale is an enterprise model where an entrepreneur does not own any farm machinery but uses mobile phones and geographic information system (GIS) technology to connect farmers with service providers. This model provides a much greater geographical scope as well as greater opportunities for growth and innovation. It also adds layers of complexity that require a network of intermediaries – from machinery dealers and mechanics to booking agents – and bank financing.

The more diverse in operational offerings a business model is, the more promise it holds for generating economic growth and food security. This occurs by spreading activity across a wider geographic region, providing yield-increasing services for more farmers, employing more workers, and generating increased demand up and down the supply chain.

In addition to laying out the range of business models in operation today, Houmy identified success factors important for all, including long-term access to financing and local infrastructure, both of which are structural issues that entrepreneurs have less immediate control over. GIC works to address this shortcoming by involving a broad range of stakeholders, including government actors, in addressing issues of sustainability.

Houmy encouraged entrepreneurs to focus on areas like cultivating a skilled staff, building close links with processors and aggregators, and diversifying the services they offer. This sort of business model training can translate into significant improvements on the ground.

Building a business

Life began to change dramatically for Ali when his local agricultural bureau connected him to the GIC in his area.

Through his relationship with GIC, Ali gained access to some basic mechanized farming equipment, including disc plows, harrows, and planters, which revolutionized his work. He now prepares his rice and maize fields more quickly and evenly. He plants them more efficiently and spends less time harvesting while producing equal and sometimes higher yields. To support this transition, GIC provided training in agricultural mechanization, seed production, and financial management.

Initially, Ali sustained an injury while using a harrow and trailer. Thankfully, this did not slow him down for long, he said. He learned how to regularly tighten components of the machine to avoid further injuries and other safety problems.

Soon, Ali began using his machines to provide services to his neighboring farmers as well, helping them with land preparation, transportation, and planting.

Today, 22 local farmers use Ali’s services, and his community is experiencing the benefits. Less time is spent on planting and harvesting while agricultural yields are increasing. Mechanization marked a sharp decline in the drudgery associated with farming tasks, especially for the area’s youth and women.

Ali is thinking about the future by expanding and diversifying. He plans to buy a seeder and a thresher if he can get financing, and he is interested in additional training. He is developing a business plan for a larger enterprise that would be “the farmers’ one-stop shop” for mechanization services in his area. With the profits so far, he has built a house for his wife and two children and bought a small car.

GIC has supported 26 service providers like Ali in Burkina Faso as well as others in Benin, Mali, and Kenya. Over time, the proliferation of sustainable agricultural operations like Ali’s, as well as their growth into more complex and more profitable business networks, holds enormous promise for rural areas where food security, sustainable employment and a baseline of prosperity have been elusive for far too long.

Cover photo: Workers on Ouattra Ali’s farm outside of Bobo Dioulasso, Burkina Faso. (Credit: Rabe Yahaya/GIZ)

Gauging the impact of COVID-19 lockdown on farming communities and agribusinesses in Nepal

The agricultural market has been suffering since the government of Nepal imposed a lockdown from March 23, 2020 to limit the spread of COVID-19 in the country. A month after the lockdown, the International Maize and Wheat Improvement Center (CIMMYT) conducted a rapid assessment survey to gauge the extent of disruptions of the lockdown on households from farming communities and agribusinesses.

As part of the Nepal Seed and Fertilizer (NSAF) project, CIMMYT researchers surveyed over 200 key stakeholders by phone from 26 project districts. These included 103 agrovet owners and 105 cooperative managers who regularly interact with farming communities and provide agricultural inputs to farmers. The respondents served more than 300,000 households.

The researchers targeted maize growing communities for the survey since the survey period coincided with the primary maize season.

Seed company staff harvesting maize during the lockdown. (Photo: Darbin Joshi/CIMMYT)
Seed company staff harvesting maize during the lockdown. (Photo: Darbin Joshi/CIMMYT)

Key insights from the survey

The survey showed that access to maize seed was a major problem that farmers experienced since the majority of agrovets were not open for business and those that were partially open — around 23% — did not have much customer flow due to mobility restrictions during the lockdown.

The stock of hybrid seed was found to be less than open pollinated varieties (OPVs) in most of the domains. Due to restrictions on movement during the entire maize-planting season, many farmers must have planted OPVs or saved seeds.

Access to fertilizers such as urea, DAP and MOP was another major problem for farmers since more than half of the cooperatives and agrovets reported absence of fertilizer stock in their area. The stock of recommended pesticides to control pests such as fall armyworm was reported to be limited or out of stock at the cooperatives and agrovets.

Labor availability and use of agricultural machineries was not seen as a huge problem during the lockdown in the surveyed districts.

It was evident that food has been a priority for all household expenses. More than half of the total households mentioned that they would face food shortages if the lockdown continues beyond a month.

During the survey, around 36% of households specified cash shortages to purchase agricultural inputs, given that a month had already passed since the lockdown began in the country. The majority of the respondents reported that the farm households were managing their cash requirements by borrowing from friends and relatives, local cooperatives or selling household assets such as livestock and agricultural produces.

Most of the households said that they received food rations from local units called Palikas, while a small number of Palikas also provided subsidized seeds and facilitated transport of agricultural produce to market during the lockdown. Meanwhile, the type of support preferred by farming communities to help cope with the COVID-19 disruptions — ranging from food rations, free or subsidized seed, transportation of fertilizers and agricultural produce, and provision of credit — varied across the different domains.

The survey also assessed the effect of lockdown on agribusinesses like agrovets who are major suppliers of seed, and in a few circumstances sell fertilizer to farmers in Nepal. As the lockdown enforced restrictions on movement, farmers could not purchase inputs from agrovets even when the agrovets had some stock available in their area. About 86% of agrovets spoke of the difficulty to obtain supplies from their suppliers due to the blockage of transportation and product unavailability, thereby causing a 50-90% dip in their agribusinesses.

Seed company staff harvesting maize during the lockdown. (Photo: Darbin Joshi/CIMMYT)
Seed company staff harvesting maize during the lockdown. (Photo: Darbin Joshi/CIMMYT)

Immediate actions to consider

Major takeaways from this survey are as follows:

  • Currently, food access is a priority and households are spending more money on food. However, as and when the lockdown eases, the need for cash to buy agricultural inputs and services is likely to emerge and may require attention.
  • Accessing maize seed and fertilizer was a problem in many communities during the maize season. Similarly, a shortage of rice seed, particularly hybrids, can be an issue for farmers unless efforts are made right away.
  • To help cope with the COVID-19 disruptions, a one-size-fits-all relief package would not be effective for farming communities living in different domains. Major support should be on facilitating transport and distribution of seed and fertilizers, access to food supplies through the local government’s schemes, and provision of soft loans.
  • Agrovets have an important contribution as the last mile service providers and they were hit hard by the lockdown. Therefore, facilitating agrovet businesses to operate and transport seeds, fertilizers, and pesticides from suppliers to agrovet business points will be essential to restore businesses and deliver agri-inputs to farmers.

The survey findings were presented and shared with the government, private sector, development partner organizations and project staff over a virtual meeting. This report will serve as a resource for the project and various stakeholders to design their COVID-19 response and recovery strategy development and planning.