Financial Challenges to Smallholders

Transcription

1 Mechanization Smallholder s Livestock System : Financial Challenges to Smallholders Dr. Abule Ebro & Dereje Legesse Batu Agri-Business Finance Fair March 27-28, 2015

2 Objective Through Introduction & Demonstration of Small Scale Technologies, LIVES promote o Technology-led Businesses: o o o Input/Service Supply Businesses. Production Businesses. Processing/Marketing Businesses.

3 Need for Small Scale Technologies Low Investment - Low Return Cycle LOW INVESTMNENYT Quality Inputs, Better Technologies, Marketing & Promotion... LOW RETURN Agricultural Activity, Operating at Loss / Subsistence Level... LIVES introduced & encouraged the adoption of better Small Scale Technologies : Both Livestock & Irrigated Agricultures.

4 Cont... o Introduced Small Scale Technologies: Livestock Technologies Small Scale Milking Machines Progesterone Kits (Cattle Heat Detection & Pregnancy) Preg-Tone (Small Ruminant Pregnancy Diagnosis Devices) Incubators Poultry House Chopping/Grinding & Shredding Machines Biogas Electric Generator & Gas Bags

5 LIVES Approach

6 LIVES Business Development Support o o o o o o o Promote Technology-Led Businesses. Capacity Needs Assessment : Update/Refine Capacity Development Interventions. Ex-ante Analysis, Technical Assistance & Link with. Linkage with Financial & Non-Financial Service Providers including Market. Promotional Activities: Learning events & Field Days Maximizes Commercial Sources of Funds. Technical & Business Trainings: on various topics.

7 o Source of Fund : Where & How? o Cont... Encourage Business expansion through commercial sources of fund (Credit). o Promote alternative financing both for Working Capital & Investment: Financial Leasing Discussion & understanding created with MFIs (Amhara Credit & Savings Institution S.C., Oromia Credit & Savings S.C., Sidama Microfinance S.C. & RUSACCOs).

8 Financial challenges to smallholders

9 Outline of presentation 1. LIVES project approach and pillars 2. Major livestock technologies 3. Livestock technology demonstration efforts 4. Farmers response to credit access/financial access 5. Points of discussion

10 Better Future for Farmers Access to Finance 1. LIVES Project Approaches and Pillars An ILRI research for development project implemented with IWMI, MoA and EIAR in partnership with Amhara, Tigray, Oromia and SNNP Regional States Supported for 6 years by a our development partner (DFATD/Canada) Transforming subsistence to more market oriented smallholder agriculture.

11 Better Future for Farmers Access to Finance 1. LIVES Project Approaches. Goal To contribute to environmentally sustainable, enhanced income and gender equitable wealth creation for smallholders and other value chains actors through increased and sustained market-off-take of high value livestock and irrigated crop commodities. Ultimate Outcome Increased economic well-being for male and female smallholder producers in 31 districts in 10 target Zones in Amhara, Oromia, Tigray, and SNNPR through the development of livestock and irrigated value chains

12 Better Future for Farmers Access to Finance LIVES Objectives Capacity development knowledge management Promotion for scaling out Commodity value chain development Action research

13 Better Future for Farmers Access to Finance Table 2. Priority commodity value chains and their zonal location in the four LIVES Regions Zone Dairy Beef Small ruminant Poultry Apiculture Irrigated agriculture Eastern Tigray Central Tigray West Gojam North Gondar South Wello East Shoa West Shoa Jimma Gamo Gofa Sidama Dairy 9; Beef 4; SR - 5; Poultry 7; Apiculture 5; Irrigation - 10

14 2. Major livestock technologies Biogas technology ( Biogas electric generator 2.5 KW capacity Biogas electric generator 3.5 KW capacity Red mug biogas digester 10 m 3 Biogas pumps 20 W Biogas pumps W Biogas compressors Biogas storage bags 5 m 3 Nano milking machine (single bucket) Portable Milking Machine Small/medium-scale Incubators Preg-Tone (Small Ruminant Pregnancy Diagnosis Device) Progesterone Kit (Cattle Heat Detection & Pregnancy Diagnosis) Poultry Cage

15 Chopping/Grinding & Shredding Machines 15

16 Chopping/Grinding & Shredding Machines Feed resource development and Improving the utilization of feed resources in Jimma 16

17 East Shoa

18 Progesterone Kit (Cattle Heat Detection & Pregnancy Diagnosis)

19 Preg-Tone (Small Ruminant Pregnancy Diagnosis

20 Demonstration materials and Coaching & mentoring Manual Baler

21 Responses of Focus group discussants in the three LIVES project zones 6FGDs/district; participants/discussion) Constraints East Shoa West Shoa Jimma Dugda Bora Lume Ejere Adaberga Dedo Kersa Seka-Chekorsa Is cash/credit a constraint to crop/livestock production or is it readily available 5 FGD=Yes 1 FGD=No Not timely Lengthy process Shortage Only available for fertilizer and improved seeds 6 FGD= Yes Do not trust each when group 6 FGD= Yes Long processes, not timely, small amount, short maturity period 4 FGD= Yes 1 FGD= No Group variability problem 6 FGD=Yes 5 FGD= Yes 1 FGD= No More to crop production Awareness problem, Low culture of saving and credit Short time of returning period It is not a custom SMS for crop productivity and be used 4 FDG= Yes 1 FGD= No 1 FGD= Do not borrow (religious region) Amount given small, high interest rate, low/short maturity, 5 FGD= Yes 1 FGD= No Time of returning (Hurry to be returned) Only group Might be mistake Timing, maturity, amount

22 5. Discussion points Financial Institutions: How do financial institutions respond to problems raised by farmers? How can we ensure Better Future for Farmers Access to Finance?...

23 Thank You!

24 The presentation has a Creative Commons licence. You are free to re-use or distribute this work, provided credit is given to ILRI.