MAKHANDA, South Africa (PAMACC News) - A comparative study exploring the challenges farmers face in two cattle-farming provinces in South Africa and Kenya shows that trader or broker market control, prevalent in Kenya, should be avoided in South Africa as market access for farmers is improved.
It further identifies the Meat Naturally Initiative (MNI) in the Eastern Cape as a successful case study that, with proper co-ordination agricultural national extension office, could be replicated in both countries to tackle these challenges and increase the access and participation of small-scale farmers in beef markets.
The study, conducted by Professor Cyril Nhlanhla Mbatha, director of the Institute of Social and Economic Research (ISER) at Rhodes University, identifies poor production methods and limited market access as critical challenge clusters that prevent small African farmers in both countries from developing. In cattle farming in particular, poor grazing practices and a lack of vaccination produce poor quality animals. Limited information, poor infrastructure and cultural issues are some of the factors leading to low participation levels of these farmers in livestock markets.
The study compares how some of the common challenges in cattle production and market access have, to varying degrees, been overcome in both countries. Mbatha says that a higher number of rural South African farmers remain excluded from different parts of the value chains of formal beef markets compared to Kenya, and even though they own large herds of cattle, their contribution to the country’s demand for beef remains marginal. “Rural South African small farmers are generally faced with high production and marketing challenges, which prevent them from developing into successful commercial farmers. In terms of business operations, South African small communal farmers lack many of the prerequisite elements that make for innovative competitive markets. Many South African small farmers are still operating within mainly traditional systems with respect to livestock farming.”
Mbatha says challenges in managing livestock and in improving businesses also stem from the fact that there are many more farmers who own smaller numbers of herds, rather than fewer farmers owning bigger herds. “In limited capacities of communal grazing areas this would lead to conflicts among livestock owners on land management issues. This has a direct negative impact on the health and number of Large Stock Units raised per hectare of land. It also impacts markets, as buyers need to search for good quality product.”
Most studies agree that transaction cost issues are core to most challenges faced by small livestock farmers. “Costs of transporting stock to and from markets are a barrier. Ultimately these costs force farmers to adversely select themselves out of formal markets, which leaves them with limited prospects, says Mbatha. “This gap is a clear opportunity for the agricultural extension office to coordinate these information flows.”
Mbatha says that while Kenyan small rural farmers face similar production challenges as those faced by their SA counterparts, they are more advanced in their level of participation in formal markets. However, the farmers’ lack of resources including infrastructure to transport animals to markets, has allowed an emergence of powerful traders who control markets to the detriment of poorly resourced farmers. “The Kenyan beef value chains are dominated by brokers, traders and butchers. There are persistent reports of high levels of collusion by fewer brokers, especially in the marketing stages of livestock.”
Mbatha says that even though the market domination by brokers is higher in Kenya compared to SA, Kenyan farmers are still better off. “In SA small farmers are almost completely excluded in the marketing stages of red meat, where big suppliers dominate the market. As the small farmer markets develop, it should be anticipated that brokers would emerge to occupy many spaces where obvious profits can be made and market issues like those observed in Kenya may develop, where market powers and prices are skewed against producers. Extension offices in SA must already develop strategies for bypassing any potential dominance of markets by traders to the abuse of farmers through prices in different regions of the country.”
The study identifies a successful case study in developing small African farmers that could be replicated across South Africa. The Meat Naturally Initiative (MNI) in the Eastern Cape Province applies a holistic model through which many of the documented challenges in livestock farming for both countries could be reduced, or avoided. “This project has a holistic environmental approach to rural development, with rangeland restoration as one of its objectives. This project organised livestock auction markets for rural small farmers as one of its initiatives to incentivise farmers to participate in environmental protection efforts. Put simply, stakeholders work with traditional leaders to mobilise community members to restore and protect their ecological capital. The model rewards community members with economic incentives aimed at reducing poverty and improving their livelihoods, through participation in livestock-based enterprises.”
Mbatha says that while the MNI model seems sustainable if implemented as intended, only a small proportion of farmers currently benefit. Many parts of the project and its approach to development need to be emulated for the benefits of more SA small farmers in other rural regions, a process that could be co-ordinated through the national agricultural extension office. Mandated to assist small farmers, it holds the required national footprint and shares many of the developmental objectives of the project to promote the lessons across the country.
“If the useful lessons from the model are not deliberately spread across the country, as small farmer markets develop on their own, many of the bad structural elements of such markets may creep in. The Kenyan study illustrates well what some of these elements could be with respect to potentially rising farmer abuses by traders or brokers.”
*********************************************************
Prof Cyril Nhlanhla Mbatha is the director of the Institute of Social and Economic Research (ISER) at Rhodes University, a dynamic African hub of pioneering research that is opening gateways for community-rooted knowledge to be incorporated in policy and practice aimed at improving the natural environment and quality of human life. Former acting Dean and CEO of the Unisa School of Business Leadership and the first Director of the Young African Leaders Initiative (YALI), Prof Mbatha has been a senior research consultant on topics including Public Finances Management, Labour Markets & Further Education and Training, International and Regional Trade Integration for government departments and research councils in South Africa and international donor organisations like the UNDP in Botswana and the World Trade Organisation.
PAMACC News: The African Forest Forum (AFF) has in the last two years carried out research works on strengthening sustainable management of Africa’s forests and trees outside forests and the role they play in meeting global and national climate change mitigation goals.
In collaboration with the Network for Natural Gums and Resins in Africa (NGARA) and forest experts, results of the research carried out in fifteen African countries is now shared with other stakeholders to strengthen the capacity of public and private forest institutions for sustained development outcomes in the sector and especially in the fight against climate change.
According to AFF executive secretary Godwin Kowero,the science-based knowledge sharing on forest management is carried out via national and regional webinars to help participants " learn from policy and forest governance processes that hold potential to cultivate better responses in the forestry sector to the climate change opportunities and challenges on the continent.
The webinars accordingly is taking place under the theme, " National responses to the Paris Agreement and promoting gums and resins in Africa for resilience to climate change.”
Speaking at the opening of the webinars in Francophone Africa[Cameroon,Benin and DRC] GODWIN Kowero noted that good governance and collaboration among the different stakeholders was key in the drive towards sustainable management and wise use of these resources for the benefit of present and future generations.
"We need to work in synergy to attain expected results in forest management and the fight against climate change" Gonwin Kowero said.
The importance of a sound governance system in forest management was corroborated by the representative of the Central African Forestry Commission,COMIFAC.
According to the deputy executive secretary and technical coordinator of COMIFAC, Chouaibou Nchoutpouen, the different countries in Africa must respect the global environmental governance system that is built on agreements including the United Nations Framework Convention on Climate Change and its landmark agreement reached in Paris in 2015, to combat climate change and accelerate and scale up the actions and investment needed for future sustainable low carbon future
" Countries-parties to this agreement are required to formulate their national visions to address climate change while demonstrating at the international level their politican will and readiness to contribute to global adaptation and mitigation efforts. A stronger response from governments and public organisations, communities and and private sectors is therefor required for results oriented actions" Chouaibou said at the opening of the Webinar workshop in Douala.
Marie Louis Avana of AFF Cameroon reiterated on the role women play in pushing the drive in suatainable forest management. " The African Forest Forum understands the important role women play in promoting forest management and thus leaving no stone unturned to encourage their actions she said.
In another presentation on the enhancement of African Forest Governance in response to Paris Agreement and related Global Climate policies and initiatives by FOKABS, Ngwa Elvis Suh, emphasised on the importance of improved governance systems in the forest sector to meet global and national ambitions.
A study carried out by FOKABS was presented with the objective of providing information that could enhance national forest governance to respond to the Paris Agreement and related global climate change policies initiatives in countries of the West and Central Africa.
The opening of the workshop also had sessions on group work and media round table discussions that permitted forest and climate change experts exchange experiences and best practices in sustainable forest management that could be replicated in other countries.
AFF executive Secretary urged environment and climate change journalists to use information provided by experts to better engage public and policy makers take steps to fight against the causes and effects of climate change.
PAMACC News: The African Forest Forum (AFF) has in the last two years carried out research works on strengthening sustainable management of Africa’s forests and trees outside forests and the role they play in meeting global and national climate change mitigation goals.
In collaboration with the Network for Natural Gums and Resins in Africa (NGARA) and forest experts, results of the research carried out in fifteen African countries is now shared with other stakeholders to strengthen the capacity of public and private forest institutions for sustained development outcomes in the sector and especially in the fight against climate change.
According to AFF executive secretary Godwin Kowero,the science-based knowledge sharing on forest management is carried out via national and regional webinars to help participants " learn from policy and forest governance processes that hold potential to cultivate better responses in the forestry sector to the climate change opportunities and challenges on the continent.
The webinars accordingly is taking place under the theme, " National responses to the Paris Agreement and promoting gums and resins in Africa for resilience to climate change.”
Speaking at the opening of the webinars in Francophone Africa[Cameroon,Benin and DRC] GODWIN Kowero noted that good governance and collaboration among the different stakeholders was key in the drive towards sustainable management and wise use of these resources for the benefit of present and future generations.
"We need to work in synergy to attain expected results in forest management and the fight against climate change" Gonwin Kowero said.
The importance of a sound governance system in forest management was corroborated by the representative of the Central African Forestry Commission,COMIFAC.
According to the deputy executive secretary and technical coordinator of COMIFAC, Chouaibou Nchoutpouen, the different countries in Africa must respect the global environmental governance system that is built on agreements including the United Nations Framework Convention on Climate Change and its landmark agreement reached in Paris in 2015, to combat climate change and accelerate and scale up the actions and investment needed for future sustainable low carbon future
" Countries-parties to this agreement are required to formulate their national visions to address climate change while demonstrating at the international level their politican will and readiness to contribute to global adaptation and mitigation efforts. A stronger response from governments and public organisations, communities and and private sectors is therefor required for results oriented actions" Chouaibou said at the opening of the Webinar workshop in Douala.
Marie Louis Avana of AFF Cameroon reiterated on the role women play in pushing the drive in suatainable forest management. " The African Forest Forum understands the important role women play in promoting forest management and thus leaving no stone unturned to encourage their actions she said.
In another presentation on the enhancement of African Forest Governance in response to Paris Agreement and related Global Climate policies and initiatives by FOKABS, Ngwa Elvis Suh, emphasised on the importance of improved governance systems in the forest sector to meet global and national ambitions.
A study carried out by FOKABS was presented with the objective of providing information that could enhance national forest governance to respond to the Paris Agreement and related global climate change policies initiatives in countries of the West and Central Africa.
The opening of the workshop also had sessions on group work and media round table discussions that permitted forest and climate change experts exchange experiences and best practices in sustainable forest management that could be replicated in other countries.
AFF executive Secretary urged environment and climate change journalists to use information provided by experts to better engage public and policy makers take steps to fight against the causes and effects of climate change.
PAMACC News (Meru, Kenya) - Armed with a ‘mulika mwizi’ mobile phone gadget, Simon Kailikia, a 33 year old smallholder farmer from Baraimu village, Tigania West in Meru County has been able to triple his farm produce, thanks to a phone based platform known as e-Granary.
“Once again, we are expecting another bumper harvest in the next few weeks,” Kailikia told the Seeds of Gold as he patrolled his five acre piece of land under maize crop.
It is the fourth season he is using the e-Granary platform, which ensures that registered smallholder farmers have access to quality certified seeds and relevant farm inputs, access to finance (credit) to fund their activities, insurance cover in case of natural calamities, access to information about Good Agricultural Practice (GAP), and above all, access to weather and climate information so that crops are planted at the right time – all on a mobile phone platform.
After the harvest, registered farmers through their groups bring together all their produce and using the mobile platform, they can access the market collectively.
“There is clear evidence that Africa’s full agricultural potential remains untapped due to use of incorrect farm inputs, late planting, use of poor seeds, inadequate financing, lack of structured markets and lack of insurance cover to cushion smallholder farmers whenever they suffer losses based on the changing climatic conditions and related calamities,” said Mutiga Wanjohi, of the Alliance for a Green Revolution in Africa.
The e-Granary is a commercial solution developed by the East African Farmers Federation (EAFF) to improve social-economic status of smallholder farmers in 10 African countries in collaboration with governments, UN, Nongovernmental organisations and the private sector.
“We strive to effectively organize and aggregate the otherwise dispersed producer base, in order to achieve scale and engage as a significant stakeholder in the agricultural economy,” said Robert Kubai, the Evaluation and Learning Specialist at the EAFF.
According to Kailikia, it is the first time he has seen the benefit of smallholder farming despite having been brought up in a farming family.
“I was brought up in a farming family, and all through my life, I knew that farming was an activity for people who do not have any meaningful work to do,” said Kailikia. “But today, I have come to appreciate that farming is a sustainable business, beyond hand to mouth survival,” he said.
Kailikia says that his life changed when Baraimu Mathio Self Help Group was introduced to the e-Granary. “For all these years, I never knew that the five acre piece of land under my name had such a huge potential,” said the youthful farmer, and the chair of the group.
Before, he used to plant any seed that was available, sometimes without fertilisers and without following recommended agronomic practices.
However, in 2018, after registering with the e-Granary, he received certified maize seed and necessary farm inputs at the right time on credit. Using the mobile phone platform, he received a short message instructing him on when to plant. And later, he was alerted when the time for topdressing came.
“I was shocked because for the first time, I harvested a total of 93 bags from a piece of land where we used to harvest a total of 25 bags or 20 during a good season,” said the farmer.
Through the e-Granary, EAFF linked him to the buyers of his farm produce, who bought it at an impressive price of Sh3500 per bag. “I sold 87 bags and I used the money to construct a shop, which I now lease to my group members as a store for their produce,” he said. He has since constructed a permanent house from farming activities.
Out of the 67 members of Baraimu Mathio Self Help Group, 55 have completely embraced the e-Granary, most of them women and youth.
To benefit from the e-Granary, one has to be a member of a farmer group. Through the group, the farmer has to register to the e-Granary using a given USSD code because many smallholder farmers in rural villages do not own smart phones.
During registration, the farmer gives all the personal details, the size of the land, the location and the particular crops that they intend to farm. Using this information, the e-Granary calculates the amount of fertilisers and related farm inputs that will be required, and then the EAFF identifies where to buy the seeds, and signs a contract with a potential buyer.
With the contract in place, the EAFF is able to approach finance organisations for farmers’ loans in form of seed, farm input and insurance cover. The items are then delivered to the farmer groups, and using the documented farmer information, each farmer receives a customised package. After harvest, it is the farmer’s responsibility to pay back the loans.
“We insist on farmer groups so that farmers, group members can guarantee fellow members when loans are offered, and watch over each other so that no one farmer defaults,” said Kubai.
Today, over 200,000 farmers in the region are using the e-Granary, according to EAFF.