USAID Tropical Soybean for Development Workshop
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1 Participate during the seminar: #AgEvents USAID Tropical Soybean for Development Workshop Follow us on Twitter twitter.com/agrilinks Like us on Facebook facebook.com/agrilinks Presenters Ahmed Kablan, USAID Robert Bertram, USAID Peter Goldsmith, Feed the Future Innovation Lab for Soybean Value Chain Research October 28, 2014 Mike Robinson, Syngenta Foundation
2 Ahmed Kablan USAID, Bureau for Food Security Dr. Kablan is a program manager at the Office of Agricultural Research and Policy at the USAID Bureau for Food Security. At USAID, Dr. Kablan manages the Postharvest Loss and the Soybean Innovation labs. Dr. Kablan s work at USAID centers on integrated value chain development and nutrition. His major focus is on the factors that lead to negative nutritional outcomes and ways to achieve nutrition integration into the various research programs (innovation labs) funded by USAID. Dr. Kablan is a pharmacologist with a biotechnology and drug discovery background. He has over 12 years of postdoctoral research, teaching and science policy and regulatory experience.
3 Robert Bertram USAID, Bureau for Food Security Rob Bertram is the Chief Scientist in USAID's Bureau for Food Security, where he serves as a key adviser on a range of technical and program issues to advance global food security and nutrition. Inthis role, he leads USAID's evidencebased efforts to advance research, technology and implementation in support of the U.S. Government's global hunger and food security initiative, Feed the Future. Dr. Bertram's academic background in plant breeding and genetics includes degrees from University of California, Davis, the University of Minnesota and the University of Maryland.
4 Peter Goldsmith Feed the Future Innovation Lab for Soybean Value Chain Research Peter Goldsmith serves as the Principal Investigator for the USAID Feed the Future Innovation Lab for Soybean Value Chain Research (Soybean Innovation Lab). Pete is also a faculty member at the University of Illinois at Urbana-Champaign in the Department of Agricultural and Consumer Economics. Peter s research interest is agro-industrial marketing. Specific topics include: adaptation processes and strategy, biotechnology, food safety, the Brazilian and Argentinean agribusiness complex, and large-scale livestock and grain firms.
5 Mike Robinson Syngenta Foundation Mike Robinson is Chief Scientific Adviser for the Syngenta Foundation for Sustainable Agriculture. Mike has over 20 years of R&D experience in industrial biosciences and, more recently, biofuels technologies, renewable energy, and carbon accounting in agriculture. Previously, he worked as Senior Technology Analyst for the Syngenta Corporate Strategy & Technology group. He has been involved in the establishment and project management of several global collaborative research programs with academic and commercial organizations. Mike holds a PhD and graduated from Nottingham and Leeds Universities and Rothamsted Experimental Station in the UK.
6 Soy in Feed the Future: Promise and Challenge Rob Bertram U.S. Agency for International Development
7 The Global Challenge About 870 million people suffer from chronic hunger More than 3.5 million children die from undernutrition each year The world s population will increase to more than 9 billion by 2050 Food production will have to increase by 60% by 2050 to feed the world Agricultural production will be significantly impacted by climate change
8 Food price spikes and volatility Global cereal prices (US$/ton) 800 Maize Wheat Rice 600 Projected changes in global agricultural commodity prices, Lamb Milk Beef Soybean 400 Rice Wheat Rapeseed 200 Poultry Pork Maize 0 0% 20% 40% 60% Source: Data from FAO 2014 Source: Rosegrant et al Notes: The changes are calculated assuming current policies are maintained
9 Grain Yield (kg ha ) Global Cereal Yield Trends, % % Maize Yield y = x r2 = 0.94 Rice Yield y = x r2 = Wheat Yield y = x r2 = Year THESE RATES OF INCREASE ARE NOT FAST ENOUGH TO MEET EXPECTED DEMAND ON EXISTING FARM LAND! source: FAOSTAT
10 Business as Usual: Challenges and Threats = Continued Scarcity Challenges Climate change Water scarcity Biofuel demand Income Population growth Higher food prices Growing threats to: Land Water Environmental preservation Biodiversity Enhanced investment in agricultural research + technological change Game-changer for productivity and food security Lack sufficient knowledge on Disaggregated impacts of specific technologies by country Agroclimatic zone Source: IFPRI
11 6. Improve Access to Nutritious Food and Nutrition Services What Does Feed the Future Do? 1. Help farmers produce more 2. Help farmers get more food to market 3. Support Research & Development to improve smallholder agriculture in a changing climate 4. Strengthen Regional Trade 5. Create a better Policy Environment
12 FTF Research Strategy Overarching Goal Emerged: Sustainable Intensification Three research themes: Advancing the productivity frontier Transforming key production systems Improving nutrition and food safety Anchored by key geographies: Indo-gangetic plains in South Asia Sudano-sahelien systems in West Africa Maize-mixed systems in East and Southern Africa Ethiopian highlands
13 USAID Food Security Research Program Areas 3 Major Research Programs Program anchoring research in key farming systems Program for Policy Research and Support Program for Human and Institutional Capacity Building Program for Safe and Nutritious Foods Integrated Cross- Cutting Programs 13
14 Feed the Future Innovation Labs Lead Institution Collaborating Institution Oregon State University Aquaculture & Fisheries University of California, Davis Assets & Market Access Climate Resilient Chickpea Climate Resilient Millet Genomics to Improve Poultry Horticulture Hawaii Washington State University Climate Resilient Wheat University of California, Riverside Climate Resilient Cowpea Puerto Rico Colorado State University Adapting Livestock Systems to Climate Change Sorghum & Millet Sustainable Intensification ^! ^ Kansas State University Applied Wheat Genomics Reduction of Post-Harvest Loss University of Texas, El Paso Rift Valley Fever Control in Agriculture University of Illinois, Urbana- Champaign Soybean Value Chain Research Texas A&M University Small Scale Irrigation Michigan State University Grain Legumes Food Security Policy Purdue University Food Processing & Post-Harvest Handling Tufts University Nutrition The Pennsylvania State University Climate Resilient Beans Virginia Polytechnic and State University Integrated Pest Management University of Georgia Climate Resilient Sorghum Peanut Productivity & Mycotoxin Control
15 Soybean Value Chain Research Why Soybean? Soybean is the fastest growing agricultural crop over the last 20 years, expanding at a rate of 8% per year Soy is grown in over 85 countries on a total of almost 100 million hectares This impressive growth has occurred despite being a non-native crop in 94% of regions currently producing soybean Recent expansion has occurred in the lower latitude regions of the world where food insecurity rates and poverty rates are highest and where poor populations are often deficient in protein consumption
16 Benefits of Soybean The dramatic rise of soybean in global agriculture can be attributed to: the nutritional value it offers users given its high protein and oil content, and the economic benefits it provides farmers by being both a highly productive and profitable crop. dietary shifts towards livestock and poultry semi tropical and tropical production systems supports soil fertility enhancement through legume-based nitrogen fixation--rotations
17 Goal: Help African farmers participate in the soy revolution Global Farmer Soybean Revenue $126,000,000,000 African Farmer Soybean Revenue $1,012,500,000 (.8%) African Farmer Soybean Revenue (ex-south Africa) $610,000,000 (.48%) The driver is poultry feed (also pork, aquaculture) Soybean is a proven powerful driver of rural economic development and malnutrition reduction Very high human development indices in districts where soybean is grown
18 Animal Feed Soybean meal has long been considered the best source of supplemental protein in diets for poultry and swine. Soybean meal is by far the most widely used protein source in the USA and throughout the world Aquaculture replacing fish meal in fish feeds
19 Soybean Value Chain Lab: Univ. Illinois-led Consortium What is Feed the Future Innovation lab for Soy Value Chain Research? A consortium of leading soybean researchers in the U.S. and Africa with the support of local research partners have designed the Foundations for Soybean in Africa Project The approach of the Foundations Project is based on four research pillars (I) Genetic Improvement (II) Enhanced Crop Productivity and Quality (III) Nutrition (IV) Value Chains and Socio-Economic Research
20 These four pillars comprise the essential components of sustained production improved household nutrition sustainable market linkages for smallholder farmers The Foundations Project s architecture is based on a novel SMART Farm concept (Soybean Management with Appropriate Research and Technology) as its platform
21 Where we work: African countries where soybean is emerging
22 Foundations for Soybean Research 1. Plant Breeding and Germplasm Development 2. Seed and Grain quality and storage 3. Plant Breeding education and training 4. Production and Agronomics 5. Human nutrition 6. Livestock nutrition 7. Gender Implications 8. The Economics of Value Chains 9. Environmental Impact 1. Drs. Diers and Nelson, UI Crop sciences 2. Drs. Bilyeu and Clark, UM Crop sciences 3. Dr. Mumm, UI Plant Breeding Center 4. Drs. Reynolds and Awuni, MSU Crop sciences 5. Drs. Gundersen and Nash, UI Human Nutrition 6. Dr. Lacy, UG Poultry Nutrition 7. Drs. Ragsdale and Peterson, MSU Sociology and Anthropology 8. Dr. Findeis, UM Economics 9. Dr. Guest, UI Env. Engineering
23 Soy Innovation Lab: Addressing critical needs for smallholders Established a SMART farm in Ghana Soybean Management with Appropriate Research and Technology Production, agronomic, and varietal testing station Varietal Improvement Program for Soybeans Working with IITA and NARs to establish a coordinated continuous and transparent varietal testing program Masters degree in Soybean Breeding University of Ghana and West African Center for Crop Improvement Development of a low processing soybean Increases household utilization by reducing labor and energy costs
24 Filling gaps for a sound foundation for smallholders Technical support and germplasm exchange NARs Direct technical advisory partnerships Bradyrhizobia persistence in tropical soils Soybean seed germination evaluation Poultry Nutrition Centers Local processing, marketing and utilization of meal The environmental impact of soybean production Smallholder adoption, gender, and economics Soy Cows and Vitagoats for human nutrition and entrepreneurship Tropical Soybean Information Portal (TSIP)
25 What are the benefits of Soybean Innovation lab to US Soy producers 1) Foster market demand for soy in Africa 2) Increased understanding/awareness of biotechnology based crop improvements 3) US-friendly industry standards established
26 Please See our Feed the Future Website Thank You!
27 The Economics of Tropical Soybean Dr. Peter Goldsmith Principal Investigator, USAID Soybean Innovation Lab Tropical Soybean in Development October 28, 2014 Washington DC Web: (coming soon) Twitter: USAID Soy
28 Four Walk Away Messages 1. Soybean is a non-native, non-staple, and commercial crop Significant implications for soybean as a development crop Web: (coming soon) Twitter: USAID Soy
29 Four Walk Away Messages 1. Soybean is a non-native, non-staple, and commercial crop Significant implications for soybean as a development crop 2. Highly productive delivering protein and oil in tropical settings Highly productive generating economic impact to tropical rural economies Web: (coming soon) Twitter: USAID Soy
30 Four Walk Away Messages 1. Soybean is a non-native, non-staple, and commercial crop Significant implications for soybean as a development crop 2. Highly productive delivering protein and oil in tropical settings Highly productive generating economic impact to tropical rural economies 3. Tropical soybean economics very different than temperate soybean economics Web: (coming soon) Twitter: USAID Soy
31 Four Walk Away Messages 1. Soybean is a non-native, non-staple, and commercial crop Significant implications for soybean as a development crop 2. Highly productive delivering protein and oil in tropical settings Highly productive generating economic impact to tropical rural economies 3. Tropical soybean economics very different than temperate soybean economics 4. Research is needed to help the soybean complex be successful USAID SIL mission: to provide the foundation for soybean practitioners to be successful Web: (coming soon) Twitter: USAID Soy
32 The Economics of Soybean: Several Important Topics Value Chains Supply chain linkages Seed systems and Intellectual Property Rights Rural Economic Development Human development indices Household Adoption: SIL Researcher Dr. Jill Findeis at the University of Missouri Portfolio Gender- Drs. Ragsdale and Peterson, Mississippi State University Policy and Competitiveness Macro Economics Government Intervention Production Economics Production function Scale Economies Cost of production Web: (coming soon) Twitter: USAID Soy
33 AREA HARVESTED INDEX: BASE YEAR = 2000 Soybean: Fastest Growing Crop in the World LEADING AGRICULTURAL CROPS: HECTARES PLANTED GROWTH RATE ( ) 50% 40% 30% 20% 10% 0% -10% -20% Wheat Maize Rice Soybeans Barley Sorghum Cotton Rape Millet Beans Crop CAGR Soybeans 2.92% Rape 2.33% Maize 2.18% Beans 1.71% Cotton 0.73% Rice 0.48% YEAR Wheat 0.00% Sorghum -0.63% Barley -0.80% Millet -1.29% Source: FAOSTAT and author s calculations Web: (coming soon) Twitter: USAID Soy
34 The Goal of USAID SIL: Help African farmers participate in the soybean revolution Global Farmer Soybean Revenue $126,000,000,000 African Farmer Soybean Revenue $1,012,500,000 (.8%) African Farmer Soybean Revenue (ex-south Africa) $610,000,000 (.48%) The driver is poultry feed due to rising incomes and meat consumption Web: (coming soon) Twitter: USAID Soy
35 Soybean Value Chain Development Index selected African countries ( ) Poultry Soybean Index CAGR ( ) Ratio S:P Zambia 2.11% 12.40% 5.88 Ethiopia 3.33% 13.32% 4.00 South Africa 6.50% 14.55% 2.24 Malawi 3.55% 3.14% 0.88 Nigeria 5.92% 1.49% 0.25 Ghana 16.99% 0.00% 0.00 Mozambique 1.70% 0.00% 0.00 Web: (coming soon) Twitter: USAID Soy
36 Soybean is a non-native, non-staple, and commercial crop Non- Native Very little experience within the agricultural system Example: Syngenta Seed Study: 10k observations, , 6 countries, 32 crops-- 0 soybean observations Similar to our assessments of NARS research portfolio Not good or bad, tropical soybean is just new For practitioners (SIL clients) Researchers, extensionsists, NGOs, consultancies, private sector, USAID missions, policymakers, funders Web: (coming soon) Twitter: USAID Soy
37 Soybean is a non-native, non-staple, and commercial crop: Gender and Household Implications -Labor as a scarce resource -Labor vs. decision making Women Decision Making Index (Groundnuts = 1.00) Groundnuts Maize Onions Soybean Sunflower Tomatoes Average Production Processing Storage Transportation Marketing Average Source: ACDI/VOCA, Zam and authors calculations Web: (coming soon) Twitter: USAID Soy
38 Low Technology Tropical Soybean Production Function: All Labor and No inputs Saboba, Ghana (1) Ghana (2) Yield = 0.6 mt/ha Yield = 1.1 mt/ha Chereponi Tanzania (3) Inputs Agricultural Operations Other Cost Yield = 0.5 mt/ha Inputs Agricultural Operations Other Cost Yield = 0.8 mt/ha (1) (2) (3) Web: (coming soon) Twitter: USAID Soy
39 High Technology Tropical Soybean Production Function: High Inputs and Low Labor Mato Grosso, Brazil Inputs Agricultural Operations Other Cost Fixed Costs Web: (coming soon) Twitter: USAID Soy
40 High Technology Temperate Soybean Production Function: High Capital and Low Labor and Inputs Illinois, USA Inputs Agricultural Operations Other Cost Web: (coming soon) Twitter: USAID Soy
41 So same commodity but three very different production approaches Tropical Low Technology Saboba, Ghana (1) Tropical High Technology Temperate High Technology Illinois, USA Mato Grosso, Brazil Inputs Web: (coming soon) Twitter: USAID Soy
42 Cost of Production Ghana Tanzania Brazil USA Saboba Chereponi National National Mato Grosso Illinois Metric Tons Bushels/ Ac (USD/Ha) 1. Inputs $ 21 $ 17 $ 50 $ 20 $ 531 $ 435 Seed $ 13 $ 13 $ 17 $ 20 $ 69 $ 170 Fertilizer $ 8 $ 4 $ 18 $ - $ 282 $ 168 Soil Correctives $ - $ - $ - $ - $ 5 $ - Pesticides $ - $ - $ 15 $ - $ 175 $ Operations $ 214 $ 236 $ 497 $ 106 $ 97 $ 106 Temporary Labor $ 142 $ 157 $ 480 $ 66 $ - $ - Fixed Labor $ - $ - $ - $ 40 $ 48 $ 32 Disking Harrow* $ - $ - $ - $ - $ - $ - Leveling Disking Harrow * $ 25 $ 25 $ - $ - $ - $ - Fertilizing and Seeding $ 18 $ 19 $ - $ - $ - $ - Machine Application $ - $ - $ 17 $ - $ - $ 22 Aerial Application $ - $ - $ - $ - $ - $ - Harvest $ 29 $ 34 $ - $ - $ - $ - Post-harvest Desiccation* $ - $ - $ - $ - $ - $ 2 Fuel and Oil $ - $ - $ - $ - $ 49 $ OTHER COSTS $ 14 $ 17 $ 75 $ 8 $ 174 $ 77 Technical Assistant $ - $ - $ 75 $ 6 $ 17 $ - Production Transport $ 14 $ 17 $ - $ - $ 27 $ - Taxes $ - $ - $ - $ - $ 47 $ - Storage and Processing $ - $ - $ - $ 2 $ - $ 10 Insurance $ - $ - $ - $ - $ - $ 42 Finance Interests $ - $ - $ - $ - $ - $ 25 Administrative Costs $ - $ - $ - $ - $ 83 $ FIXED COSTS $ 38 $ 66 $ - $ - $ 292 $ 889 Depreciation $ 17 $ 33 $ 43 $ 138 Maintenance $ 48 $ 62 Capital Insurance $ - $ 22 Land $ 21 $ 33 $ 201 $ 667 TOTAL COST $ 286 $ 335 $ 622 $ 133 $ 1,093 $ 1,507 Price per mt $ 501 $ 487 $ 756 $ 473 $ 404 $ 522 Price per bushel Price relative to the CME cash 98% 95% 164% 103% 96% 102% Gross Revenue/ Ha $ 302 $ 264 $ 839 $ 357 $ 1,269 $ 1,754 NET PROFIT/ Ha $ 16 $ (71) $ 216 $ 349 $ 176 $ 247 Per Day $ 0.04 $ (0.19) $ 0.59 $ 0.96 $ 0.48 Per person (7) $ 0.01 $ (0.03) $ 0.08 $ 0.14 $ 0.07 % change in income (@$1.50/day) 0.41% -1.85% 5.64% 9.12% 4.58% Web: (coming soon) Twitter: USAID Soy
43 Cost of Production Ghana Tanzania Brazil USA Saboba Chereponi National National Mato Grosso Illinois Metric Tons/Ha Bushels/ Ac (USD/Ha) 1. Inputs $ 21 $ 17 $ 50 $ 20 $ 531 $ Operations $ 214 $ 236 $ 497 $ 106 $ 97 $ OTHER COSTS $ 14 $ 17 $ 75 $ 8 $ 174 $ FIXED COSTS $ 38 $ 66 $ - $ - $ 292 $ 889 TOTAL COST $ 286 $ 335 $ 622 $ 133 $ 1,093 $ 1,507 Price per mt $ 501 $ 487 $ 756 $ 473 $ 404 $ 522 Price per bushel Price relative to the CME cash 98% 95% 164% 103% 96% 102% Gross Revenue/ Ha $ 302 $ 264 $ 839 $ 357 $ 1,269 $ 1,754 NET PROFIT/ Ha $ 16 $ (71) $ 216 $ 349 $ 176 $ 247 Per Day $ 0.04 $ (0.19) $ 0.59 $ 0.96 $ 0.48 Per Person (7) $ 0.01 $ (0.03) $ 0.08 $ 0.14 $ 0.07 % change in Income (@$1.50/day) 0.41% -1.85% 5.64% 9.12% 4.58% 6.44% Web: (coming soon) Twitter: USAID Soy
44 Cost of Production Ghana Tanzania Brazil USA Saboba Chereponi National National Mato Grosso Illinois Metric Tons/Ha Bushels/ Ac (USD/Ha) 1. Inputs $ 21 $ 17 $ 50 $ 20 $ 531 $ Operations $ 214 $ 236 $ 497 $ 106 $ 97 $ OTHER COSTS $ 14 $ 17 $ 75 $ 8 $ 174 $ FIXED COSTS $ 38 $ 66 $ - $ - $ 292 $ 889 TOTAL COST $ 286 $ 335 $ 622 $ 133 $ 1,093 $ 1,507 Price per mt $ 501 $ 487 $ 756 $ 473 $ 404 $ 522 Price per bushel Price relative to the CME cash 98% 95% 164% 103% 96% 102% Gross Revenue/ Ha $ 302 $ 264 $ 839 $ 357 $ 1,269 $ 1,754 NET PROFIT/ Ha $ 16 $ (71) $ 216 $ 349 $ 176 $ 247 Per Day $ 0.04 $ (0.19) $ 0.59 $ 0.96 $ 0.48 Per Person (7) $ 0.01 $ (0.03) $ 0.08 $ 0.14 $ 0.07 % change in Income (@$1.50/day) 0.41% -1.85% 5.64% 9.12% 4.58% 6.44% Web: (coming soon) Twitter: USAID Soy
45 Cost of Production Ghana Tanzania Brazil USA Saboba Chereponi National National Mato Grosso Illinois Metric Tons/Ha Bushels/ Ac (USD/Ha) 1. Inputs $ 21 $ 17 $ 50 $ 20 $ 531 $ Operations $ 214 $ 236 $ 497 $ 106 $ 97 $ OTHER COSTS $ 14 $ 17 $ 75 $ 8 $ 174 $ FIXED COSTS $ 38 $ 66 $ - $ - $ 292 $ 889 TOTAL COST $ 286 $ 335 $ 622 $ 133 $ 1,093 $ 1,507 Price per mt $ 501 $ 487 $ 756 $ 473 $ 404 $ 522 Price per bushel Price relative to the CME cash 98% 95% 164% 103% 96% 102% Gross Revenue/ Ha $ 302 $ 264 $ 839 $ 357 $ 1,269 $ 1,754 NET PROFIT/ Ha $ 16 $ (71) $ 216 $ 349 $ 176 $ 247 Per Day $ 0.04 $ (0.19) $ 0.59 $ 0.96 $ 0.48 Per Person (7) $ 0.01 $ (0.03) $ 0.08 $ 0.14 $ 0.07 % change in Income (@$1.50/day) 0.41% -1.85% 5.64% 9.12% 4.58% 6.44% Web: (coming soon) Twitter: USAID Soy
46 Cost of Production Ghana Tanzania Brazil USA Saboba Chereponi National National Mato Grosso Illinois Metric Tons/Ha Bushels/ Ac (USD/Ha) 1. Inputs $ 21 $ 17 $ 50 $ 20 $ 531 $ Operations $ 214 $ 236 $ 497 $ 106 $ 97 $ OTHER COSTS $ 14 $ 17 $ 75 $ 8 $ 174 $ FIXED COSTS $ 38 $ 66 $ - $ - $ 292 $ 889 TOTAL COST $ 286 $ 335 $ 622 $ 133 $ 1,093 $ 1,507 Price per mt $ 501 $ 487 $ 756 $ 473 $ 404 $ 522 Price per bushel Price relative to the CME cash 98% 95% 164% 103% 96% 102% Gross Revenue/ Ha $ 302 $ 264 $ 839 $ 357 $ 1,269 $ 1,754 NET PROFIT/ Ha $ 16 $ (71) $ 216 $ 349 $ 176 $ 247 Per Day $ 0.04 $ (0.19) $ 0.59 $ 0.96 $ 0.48 Per Person (7) $ 0.01 $ (0.03) $ 0.08 $ 0.14 $ 0.07 % change in Income (@$1.50/day) 0.41% -1.85% 5.64% 9.12% 4.58% 6.44% Web: (coming soon) Twitter: USAID Soy
47 What is the best prescription for soybean for development: low tech or high tech? Rice Cotton Maize Soybean Uganda Burkina Faso Ghana Ghana Mato Grosso Net Income Low tech High tech Low tech High tech Low tech High tech Low tech High tech Per hectare $ $ $ (23.00) $ $ (120.00) $ $ $ per day $ 0.11 $ 0.55 $ (0.06) $ 0.11 $ (0.33) $ 0.05 $ 0.15 $ 0.48 per person (7) $ 0.02 $ 0.08 $ (0.01) $ 0.02 $ (0.05) $ 0.01 $ 0.02 $ 0.07 % increase in income ($1.50 USD) 1% 5% -1% 1% -3% 0% 1% 5% 1) 2) 3) 4) Goldsmith and Montesdeoca, Factor Productivity and Agricultural Efficiency in Tropical Agriculture. Working paper. University of Illinois Department of Agricultural and Consumer Economics: 35 pages. Web: (coming soon) Twitter: USAID Soy
48 In sum for this non-native, non-staple, and commercial crop Clearly tropical soybean production can be a profitable enterprise Demand is strong, and many regions of SSA maintain a strong basis Soybean human development indices too can be high Part of a vibrant value chain involving; inputs, feed, livestock, meat, and food But how sustainable is the low input tropical soybean model? Also raises larger questions about labor productivity and scale, and soybean (and other commercial crops) as a pathway out of poverty Web: (coming soon) Twitter: USAID Soy
49 Getting the Horse before the Cart: Critical Steps that Enable successful Seed Scaling Mike Robinson Syngenta Foundation for Sustainable Agriculture (SFSA) Tropical Soybean for Development Workshop Washington D.C., October 28, 2014
50 Getting the Bull before the Plough! About the Syngenta Foundation Demand-led approaches to seed systems development The SFSA Seeds2B concept The impact of functioning seed systems Our offer 2
51 Who we are Non-profit organization, established in 1979 under Swiss law Can access Syngenta expertise, but independent with our own Board Global focus on pre-commercial farmers Over 100 staff, 90% in developing countries Mission To reach millions of smallholder farmers through scalable, sustainable solutions that raise productivity, activate supply chains and increase incomes 5
52 Where we work 5
53 Meeting the market demand About the Syngenta Foundation Demand-led approaches in seed Demand-led approaches in seed system systems development development The Seeds2B concept The impact of functioning seed systems Our offer 5
54 Breeding to meet the market demand (1/2) Technology / policy / donor push Crop production Plant Seed Farmers Farmer participatory breeders producers Consumers breeding Seed Distributors Demand-led pull 55
55 Seed producers Processors Farmers Consumers Breeding to meet the market demand (2/2) Crop performance and resilience Yield and abiotic stresses: heat and drought etc. Pest and disease resistance Agronomic and harvesting characteristics Performance with low inputs Agro-ecological adaptation Transportation robustness Quality characteristics Taste Colour Appearance Nutritional value Cooking qualities Storage Processing traits 56 Seed and parent production Fertility and scalability Propagation and production considerations Cost of production Performance and suitability for processing Cost variables Storage
56 Seed producers Processors Farmers Consumers Tropically-adapted soybean Crop performance and resilience Adaptation to day-length Adaptation to altitude Disease and pest tolerance Pod-shattering Delivers enhanced soil fertility Quality characteristics Cooking time Nutritional value Processing traits Seed and parent production Viability of stored seed Seed yield Grain quality Low linoleic acid content Dual purpose Oil and protein 57
57 The Seeds2B concept About the Syngenta Foundation Demand-led approaches in seed systems development The SFSA Seeds2B concept The impact of functioning seed systems Our offer 58
58 The three pillars of Seeds2B Policy Facilitating subregional harmonisation Advising individual governments to liberalise national seed policy Seed import model (inter- and intra-africa trade) Assessing performance of new varieties and if required, variety registration to permit sale De-risking entry and brokerage for distribution Local production model Encouraging local production of seed Facilitating licensing of public-bred varieties to private sector seed companies Building the market for seed for smallholders (linking to off-takers, insurance, credit, savings) Seeds2B is an agile conceptual framework to improve the functioning of seed sectors. 59
59 Development of seed sector Targeting «pre-commercial» crops Market segmentation DT Maize (India) Yellow maize (Southern Africa) «Commercial crops»: Already strong private sector engagement. Yam (West Africa) Beans (East Africa) Cassava (West Africa) Potatoes (East Africa) Hybrid tomato (West Africa) Cabbage (West Africa) Soybean (East Africa) SFSA crops of interest: pre-commercial market segment, developing private sector interest. Sweet potato (West Africa) Low potential for private sector involvement. Subsistence crop Cash crop We work in areas of market or institutional failure by encouraging the private sector to invest. 60
60 Sourcing and trialling new varieties from across the world Trials so far Crops (focused efforts) Breeders (technology owners) Varieties Over 7,500 plots at 13 sites trialled in
61 The Seeds2B concept A holistic approach to bring together the relevant players in the value-chain Breeders: Variety development Germplasm conservetation Genetics Farmer Aggregators: 1. Organization 2. Extension 3. Credit 4. Insurance 5. Seed Adoption Feedback Seed orders, AMC, Delivery Seed Companies: Multiplication Commercialization Seed supply Off-takers: 1. Traders 2. Processors 3. Canners 4. Retailers Conducive environment: Insurance, Finance, Regulatory, Policy 62
62 Finding the right partners for the Seeds2B concept A holistic approach to bring together the relevant players in the value-chain Farmer Aggregators: 1. Organization 2. Ext nsion e 3. Cr dit e 4. Insurance Breeders: Variety development Germplasm conse n rvetatio Genetics Adoption Feedback Seed orders, AMC, Delivery Off-takers: 1. Traders 2.Processo 3.Canners 4. Retailers rs Seed Companies: Bubiya Products Mtanga Farms 14 Conducive environment: ACRE
63 Links to a conducive environment: Index insurance Weather index insurance for smallholder farmers: «We estimate that there could be 2 million farmers using this service in 2020» Accenture/Vodafone,
64 Links to a conducive environment: Credit and savings Savings-linked extension and seed supply: Mali
65 Our impact so far the potato value chain About the Syngenta Foundation Demand-led approaches in seed systems development The Seeds2B concept The impact of functioning seed systems Our offer 66
66 Development costs and impact to date: Potatoes in Kenya Development costs ( ) Initial USAID, GIZ and later SFSA investment (capacity building and brokerage) $0.7m SFSA investment in Kisima $0.2m Leveraged AECF (DFID) investment $0.5m Kisima contribution $0.5m TOTAL $1.9m Impact up to 2014 Profit per smallholder seed purchaser (per acre per season) $235 Total smallholder seed purchasers (indirect and direct, cumulative) 14,000 Additional profit to seed purchasers ( , cumulative) $5.7m Projected additional profit of smallholder seed purchasers ( , cumulative) $16m 67
67 Our offer About the Syngenta Foundation Demad-led approaches in seed systems development The Seeds2B concept The impact of functioning seed systems Our offer 68
68 Our offer for tropically-adapted soybean Assistance with drawing up product profiles and market sizes. Trial in multi-locational observation trials in east and west Africa, SE Asia. Trial promising varieties in demo sites with farmer groups and NGOs. Arrange market feedback from processors. Help with national registration, including fast-track regional harmonized registration. Help with locating local seed multipliers. Help with licensing seed companies back to original breeders. Linkage to small-holder seed uptake mechanisms such as aggregators, insurance and credit and savings. Exploration of off-taker contracts. 69
69 A potential Seeds2B concept for soy in East Africa A holistic approach to bring together the relevant players in the value-chain Farmer Aggregators:. Ext. Cr on Breeders: Variety development Germplasm conservetatio n Genetics Adoption Feedback Seed orders, AMC, Delivery Offtakers: rs 1. Trade 2. Processors 3. Ca nners 4. Re tailers Seed Companies: Multi n Commercialization Seed supply 21 Conducive environment: ACRE
70 Tropical Soybean for Development Workshop Washington D.C., October 28, 2014 Mike Robinson Ian Barker Dominik Klauser
71 Thank You Thank you for joining us! Share Feedback Visit the event page to post comments & questions. Stay In Touch Contact Us: OR Julie MacCartee, USAID/BFS Upcoming Events Climate Change Impacts on Agriculture and Food Security: Implications for Developing Climate Resilient Agriculture Programs October 30
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