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Tag: agriculture public-private parternship

Rapid modern wheat variety adoption key to supply chain security in Malawi

Written by Tawanda Hove on . Posted in News.

CIMMYT Director General Bram Govaerts, USAID Special Envoy for Global Food Security Carey Fowler, and USAID staff assess the new wheat variety trials at PYXUS. (Photo: CIMMYT/Tawanda Mthintwa Hove)

Scientists at the International Maize and Wheat Improvement Center (CIMMYT) are helping to scale up wheat production and productivity in Malawi.

The political conflict between Russia and Ukraine has disrupted food supply chains globally and Malawi’s wheat supply has been adversely affected. As a response, Pyxus Trading, the biggest agribusiness private company in Malawi, has endeavored to partner with CIMMYT to accelerate the growth of wheat production in the country.

At a recent visit by CIMMYT’s Director General Bram Govaerts, the executive management of Pyxus provided detailed updates of how CIMMYT has facilitated access to 100 improved wheat varieties now undergoing trials in Malawi. The visit was part of the Accelerated Innovation Delivery Initiative (AID-I), a new project funded by the United States of Agency for International Development (USAID).

Attending the Pyxus field visit was United States Department of State Special Envoy for Global Food Security Cary Fowler, Dina Esposito, Assistant to the Administrator at USAID Bureau of Resilience and Food Security, and other USAID staff.

Speaking at a field tour this January at the Pyxus farm headquarters, Commercial Manager John Gait expressed the importance of achieving self-sufficiency in countries like Malawi.

“It’s become very apparent with the global supply chain disruptions of wheat and related commodities that countries like Malawi should rise to a level of self-sufficiency for strategic commodities such as wheat,” Gait said. “Through the help of CIMMYT, we managed to obtain materials for 100 varieties which we have put under trial. Our objective is to select varieties that are most adapted to our agroecology and provide us with satisfactory yields and grain quality sufficient for our processing ambitions.”

CIMMYT Sustainable Agrifood Systems (SAS) Director Sieg Snapp affirmed CIMMYT’s support for private sector companies like Pyxus.

“When they told me they were searching for high performing genetic materials I told them about the Global Wheat Program and how such material could easily be obtained from our headquarters in Mexico,” Snapp said. “I immediately facilitated linkages between Pyxus and CIMMYT headquarters which saw the quick delivery of the varieties. Considering that it was quite recent, I am impressed to see that the trials are already so well established.”

Multiple varieties on display at the Pyxus farm in Malawi imported from the CIMMYT gene bank in Mexico. (Photo: CIMMYT/Tawanda Mthintwa Hove)

Achieving global food security will require cooperation and collaboration between partners from different sectors. One of CIMMYT’s strategic thrusts is to encourage public-private partnerships where national governments can leverage on the competencies and capabilities of the private sector.

“We aim to be catalytic in all our functions. We believe we have a critical role in ensuring that countries like Malawi have access to the best genetics to ensure that they meet their food requirements. I am happy Pyxus identified us a strategic partner to work with in their wheat program, and through working hand in hand with the government and other key players, the quest to achieve food self-sufficiency can have a shortened pipeline,” Govaerts said.

From left: Hambulo Ngoma, Moses Siambe, Bram Govaerts, Siege Snaap and Regis Chikowo observing the wheat trials supported by CIMMYT in Malawi. (Photo: CIMMYT/Tawanda Mthintwa Hove)

In addition to witnessing the wheat trials, Govaerts received a tour of the entire Pyxus operations which included the groundnut and forestry operations. Pyxus staff each took turns explaining the various business models the company was employing to contribute to Malawi’s export earnings and food security.

As a commitment to help Malawi realise increased wheat production, CIMMYT will be closely following the Pyxus trials and providing technical support to ensure that the best varieties adopted are rapidly scaled.

Private sector support essential for agribusiness

Written by Sarah McLaughlin on . Posted in News.

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.

Public-private collaboration to improve fertilizer supply

Written by Sarah McLaughlin on . Posted in News.

Basanta Shrestha, Vice-Chair of FAN, shares the objectives of the public-private dialogue with Govinda Prasad Sharma, Secretary of MoALD (seated left) ,Mrigendra Kumar Singh Yadav, Honorable Minister of MoALD (seated center), Chandrakanta Dallakoti, Chairperson of FAN (seated right), and other participants. (Photo: Aayush Niroula/CIMMYT)

Fertilizer supply shortages are a chronic problem in Nepal, where thousands of farmers are often unable to access the required quantities on time. This is particularly common during the cultivation of rice — the major staple food crop for the country.

Some of the critical challenges to meeting fertilizer demand include limitations to import mechanisms and budget allocation for fertilizer subsidies by the Government of Nepal. Additionally, the successive COVID-19-induced lockdowns and Russia-Ukraine war have further deepened the crisis in the past two years by significantly delaying imports and increasing fertilizer prices. This continuous gap in supply has compelled farmers to buy fertilizers from the country’s unofficial or “gray” markets.

To address these shortcomings, researchers on the Nepal Seed and Fertilizer (NSAF) project, implemented by the International Maize and Wheat Improvement Center (CIMMYT), have been supporting the Fertilizer Association of Nepal (FAN) and the Ministry of Agriculture and Livestock Development (MOALD) to resolve policy issues that will enhance fertilizer distribution efficiency.

Fertilizer sector stakeholders participate in a panel discussion at the public-private dialogue. (Photo: Aayush Niroula/CIMMYT)

On 23 September 2022, the NSAF project team joined representatives from the International Fertilizer Development Center (IFDC) and FAN to organize a policy dialogue around improving the country’s fertilizer supply system. Held in Kathmandu, the event brought together concerned public and private sector stakeholders to discuss existing challenges and propose different policy alternatives that ensure the timely availability of fertilizers in the required quantities.

Representatives from FAN presented the key issues and challenges in the sector while NSAF project coordinator Dyutiman Choudhary presented the findings of different fertilizer policy studies conducted jointly with local partners. The results showed that involving the private sector in distribution improved farmers’ access to fertilizers compared to distribution carried out solely by cooperatives. The study also indicated a potential to reduce fertilizer subsidies and increase import volume to help meet demand.

Lynn Schneider, Deputy Director of USAID Economic Growth Office shares her remarks at the policy dialogue. (Photo: Dyutiman Choudhary/CIMMYT)

Improving national supply systems

The event featured a panel discussion, where participants shared their experiences and outlined the issues faced by private sector importers, logistic service providers and retailers, and policymakers from federal and provincial governments while engaging in their respective functions. The panel members also suggested a number of different ways to improve national fertilizer supply systems, such as:

  1. Restructuring fertilizer subsidy programs, i.e. reducing the current subsidy by 20-30% (a recommendation from the NSAF assessment) and using budget savings to increase imports and allocate subsidies based on fertilizer demand.
  2. Making a procurement process timeline to ensure timely fertilizer supply for three major crops — rice, wheat, and maize — and importing about 30% of the total fertilizer through Government-to-Government (G2G) agreement.
  3. Implementing a crisis management strategy by maintaining buffer stocks (20% of the demand).
  4. Ensuring a level playing field for the private sector in the import and distribution of the fertilizers.

The dialogue concluded with mutual agreement by stakeholders from the public and private sectors to improve local fertilizer distribution through private sector engagement. They agreed to revise some clauses specified in the Nepal Fertilizer Distribution Directive 2020 related to profit margins, volumes, classification of fertilizer distributors and selling fertilizers. Govinda Prasad Sharma, secretary of MOALD, informed attendees that the ministry has already started planning fertilizer procurement based on actual demand and gave assurances about G2G agreements with neighboring countries such as India to bring in fertilizers for distribution during times of peak demand. Sharma also agreed to continue supporting the private sector in capacity building to import fertilizers and to revise subsidies to make more fertilizers available.

“It is our great pleasure to see all fertilizer-related stakeholders in a common platform, which is critical to bring out key issues and cooperation between the public and private sector,” said Lynn Schneider, deputy director of the Economic Growth Office at USAID Nepal. Schneider also emphasized the importance of generating efficiency in estimating fertilizer demand and supply and fertilizer types by using Nepal’s digital soil map, working in close coordination with provincial and local governments, and increasing the role of the private sector to ensure fertilizer supply to meet crop requirements in the peak season.

Attendees at the Public Private Dialogue on Improving Fertilizer Supply System in Nepal (Photo: Aayush Niroula/CIMMYT)

The Nepal Seed and Fertilizer project is supported by the United States Agency for International Development (USAID) and is a flagship project in Nepal. It aims to build competitive and synergistic seed and fertilizer systems for inclusive and sustainable growth in agricultural productivity, business development and income generation in Nepal.