The Effective Grain Storage for Better Livelihoods of African Farmers Project EGSP

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1 The Effective Grain Storage for Better Livelihoods of African Farmers Project EGSP Hugo De Groote International Maize and Wheat Improvement Centre (CIMMYT) Nairobi, Kenya Food Processing and Post-harvest Handling Innovation Lab Inception Meeting Dakar, August 16, 2014

2 EGSP I: Objective: Reduced postharvest losses, increased income and enhanced food security for resource poor farmers Technology: metal silo Project area: Malawi Kenya (Homa Bay and Embu) Methods: Promotion and dissemination Train artisans in metal silo construction Promotion: radio, brochures, manuals, some silos Research: On-station: efficacy On-farm testing Storage loss estimation (Zambia, Kenya) Storage practices (Kenya) Economic analysis of different storage method Adoption and impact

3 EGSP II Technology: metal silo and hermetic bags Project area: Malawi, Zimbabwe, Zambia, Kenya: (plus Naivasha and Nakuru, surplus areas) Methods: Promotion and dissemination Train artisans Training agrodealers Financing metal silos through commercial, table banking Research: On-farm testing Effect of training Economic analysis of different storage method Adoption and impact

4 Steps in economic analysis of storage 1. Understanding the system - Understanding the farming system, seasonality, practices 2. Estimating the problem Estimating the extent (spread, geographic distribution) Estimating the intensity of the problem (levels, damage, loss) 3. Efficacy testing: On-station testing 4. Benefit cost analysis 5. Farmer evaluation: on-farm trials 6. Modeling and Econometric analysis 7. Impact assessment

5 1. Understanding the problem Seasonality

6 Farmer's % loss estimate 2. Estimating losses Farmers estimates Clear pattern and links Loss increases with temperature and humidity Kenya

7 3. Efficacy of hermetic storage De Groote H., Kimenju S.C., Likhayo P., Kanampiu F., Tefera T., Hellin J. (2013) Effectiveness of hermetic systems in controlling maize storage pests in Kenya. Journal of Stored Products Research 53:27-36.

8 Cost (USD/ton) 4. Benefit/cost analysis Polypropylene bags US$ 0.6/90 kg bag Actellic super: US$ 3.3/bag Super grain bag: US$ 5.3/bag Metal silos: ~ size PP bag PP bag with Actellic Super Super bag (in PP bag) 0.36 T 0.72 T 1 T 1.35 T 1.8 T Metal silo

9 Benefit cost ratio of new technologies Assuming constant price of $230/ton, loss of 14%, loss in new methods proportionate to trials Super actellic Supergrain bag (3 years) Supergrain bag (1 year) Metal silo 0.09T Metal silo 0.72T Metal silo 1T Metal silo 1.8T

10 Sensitivity analysis What if loss is only 7% (or price half)? Not profitable If loss is 7% and price of sales double: same as base With low losses and prices, only large silos cost effective Loss= 7%, price = USD 230 (or loss=14% and price = USD 115) 2.00 Loss= 14%, price = USD 230 (or loss=28% and price = USD 115) 1.50 Loss= 28%, price = USD Super actellic Supergrain bag (3 years) Supergrain bag (1 year) Metal silo 0.09T Metal silo 0.72T Metal silo 1T Metal silo 1.8T

11 % Grain Damage 5. On-farm Testing (Randomized Control Trials) Damage in storage after 2 and 4 months Damage is much lower in the hermetic bags than the control Bags: 4% of grain Baseline = 594 First round (2 months, N=238) Second round (4 months, N=173) No insecticide Insecticide Control Hermetic bags

12 % weight loss (non-negative) Weight loss in storage after 2 and 4 months No insecticide Insecticide Baseline = 594 First round (2 months, N=238) Second round (4 months, N=173) Control Hermetic bags Weight loss in control: about 1%/month Weight loss reduced by insecticide, to 1.5% after 4 months In hermetic bags: 0.5% after 4 months Farmers comments: grain in hermetic bags smells fresh, even after four months

13 Zambia AEZ: I = High rainfall II = Intermediate III = dry 6. Modeling: Extrapolation losses from farmer estimates - Zambia Storage losses increase with temperature and humidity Not all variance in AEZ III explained by climate % grain loss in storage AEZ Mean N STD I IIA III Total

14 Extrapolate losses (in %) and Extrapolation multiply with maize production storage losses (in tons)

15 7. Impact assessment: Metal silos in Kenya with Propensity score matching Household survey of 1344 households, representative over all zones Survey of households who adopted metal silos: 124 (105 storing maize) We matched (using propensity score matching) adopters and non adopters on their characteristics (size, income,..) 105 adopters with 892 non-adopters

16 Average maize sales (kg) Results: Major difference in sales time Metal silo users Metal silo non-adopters Months after storage Non adopters sell most of their maize at harvest Adopters sell much of their grain in the fifth month Adopters get higher prices.

17 Months Benefit US$/household Impact of metal silos Reduction in storage loss Value of : US$18 Reduction in Pesticides used: Value of US$134 (some adopters still used pesticides). Increased storage period Households store maize for 2 months longer Pesticide cost savingloss abatement Households are food secure for one month longer Gitonga Z.M., De Groote H., Kassie M., Tefera T. (2013) Impact of metal silos on households maize storage, storage losses and food security: An application of a propensity score matching. Food Policy 43: Maize storage Food security (months of adequate supply)

18 8. Further work Technical Test for aflatoxins Closure systems for metal silos (tubeless tires) drying Economics Benefit cost analysis of metal silos and hermetic bags Impact analysis of hermetic bags using randomized control trials data. Experiment with credit for silos Adoption and impact surveys Policy issues Train agrodealers and distribute through private sector Reduce costs (tax) of imported inputs Quality control measures, label for metal silos, Labels for aflatoxin free grain Improve access to metal silos through collective action: farmer groups and credit facilities Support for job creation

19 Thank you

20

21 Pictures storage

22 Storage pest cont. Natural infestation Artificial infestation ex. Storage pests kenya

23 Storag pests cont.

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