Appropriate and Equitable Mechanization in Africa

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1 Appropriate and Equitable Mechanization in Africa through Conservation Agriculture, Use of Two-Wheel Tractors, and Involvement of the Private Sector. Frédéric Baudron, David Kahan, Pascal Kaumbutho, John Sariah, Joseph Mutua, Richard Rose, Saidi Mkomwa, Brian Sims, John Blackwell

2 Urban persons per active person in agriculture Number of undernourished in SSA (millions) More Farm Power Needed in Africa Population is growing faster than food production Unmet demand: rising number of undernourished people Increasingly urban demand: more processing, more transport Producing more, processing more and transporting more requires more power Ethiopia Kenya Malawi Mozambique Tanzania Zimbabwe

3 Density of economically active people in agriculture (people per ha) Desnity of cattle and buffaloes (heads per 1 ha) Density of tractors (nb per 1 ha) but Available Farm Power has India Ethiopia Kenya Malawi Mozambique Tanzania Zimbabwe been Stagnating

4 Drudgery (mainly Placed on Women) A major limiting factor? Power?

5 Cotton yield (kg ha -1 ) Proportion of total annual labour (%) Cereal production (t farm -1 ) year -1 ) (Baudron et al., 214) pair 1 pair 2 pairs Number of oxen N input from manure (kg ha Very rich (Zingore et al., 21) Rich Poor Very poor Distance plot - homestead (km) (Baudron et al., 211) No pair of oxen One pair of oxen Two pairs of oxen or more 2 2 (Baudron et al., 212) Planting date (days after the 1st of Nov)

6 Addressing the Issue of Declining Farm Power Decreasing power demand: Conservation Agriculture Increasing power supply: Mechanization

7 CA & Appropriate-scale Mechanization Soil inversion is the most power intensive operation. Its suppression makes the use of lower powered, more affordable and easier to maintain tractors possible.

8 CA with a Two-Wheel Tractor Strip tillage Direct-seeding: 2 rows Direct-seeding: 1 row US$ 772 US$ 863 US$ 1,156 US$ 1,649 US$ 4,12 US$ 2,826

9 No true best bet Stony fields Singulation of large seeds Weed load Transport

10 Locally-made tool-bar-based seeder US$ 8

11 Making small-scale mechanization viable: the Bangladesh experience Small and fragmented fields, reliance on small machines But one of the most mechanized agriculture of South Asia Service providers Only 1 in 3 farmers owned a tractor Equity: even the poorest access 2WTs services Key to success Low cost of the machines Multi-purpose machines Private sector-led model Spare parts provider Mechanic Importer Retailer 2WT owner Contract farmer Diesel and oil provider Driver Farmer

12 Market access Developing business models to deliver Coordination (inter-business linkage) Capacity-building Information Promotion (e.g. branding) small mechanization Ethiopia: Financial service provision Financial and information flows Importer/ Spare part manufacturer Operatorso Service Farmers manufacturers provider Finance Physical flows Support service facilitators o o Kenya: Tanzania o Zimbabwe o A business model is how a company organizes to generate Farmer cooperatives revenue and (supplied sustain by itself private sector dealers) (Alexander Osterwalder ) Custom hiring services (entrepreneurs supplied by a public company importing equipment; loans) One-stop-shop (cluster of agribusinesses providing a broad range of services) Private sector dealer model (linking to farmer groups) Contract farming (package of inputs and services provided on credit) Institutional environment (laws, regulations, etc.)

13 Business Model Development: 7 Principles 1. Private rural service providers (only few farmers will be able to purchase machines individually) 2. Flexibility of BM (changing local context) 3. Possible need of a broker (weak markets, vulnerable farmers) 4. Linking input BM to output BM (cash flow) 5. Multi-purpose uses (to maximize mechanization use rates) 6. Bundling of services and products (to reduce the cost of mechanization services) 7. Possible need for kick-start smart subsidies (to get the private sector involved)

14 Value of added by agriculture (billion current US$) Conclusion: Why Should it Work This Time? Demand for mechanized services has increased (intensification, commercial orientation) Supporting infrastructure (e.g. access to finance, repair services, fuel and lubricants) has developed Past focus on 4WTs (inappropriate for small and fragmented fields, and too costly for African smallholders) Past public sector focus (inefficient and uneconomic government-run tractor hire schemes) Tapping the synergies between CA and small mechanization Ethiopia Kenya Malawi Mozambique Tanzania Zimbabwe

15 Thank you!

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