NAAIAP COMMERCIALIZING SMALLHOLDER MAIZE PRODUCTION: WHERE DOES THE SHILLING FALL?

Transcription

1 NAAIAP (NATIONAL ACCELERATED AGRICULTURE INPUTS ACCESS PROGRAM) NAAIAP COMMERCIALIZING SMALLHOLDER MAIZE PRODUCTION: WHERE DOES THE SHILLING FALL? Regional Workshop on Integrated Policy Approach to Commercializing Smallholder Maize Production, Norfolk Hotel, on June 6-7, 2012 Rose M. Mwangi

2 NAAIAP OVERVIEW NAAIAP is one of the pro-poor programs (others-thvc,nmk & Fertilizer subsidy), creating a safety net for resource poor farmers, Addresses MDG1 hunger and poverty alleviation NAAIAP is Govt. response to the 2006 Fertilizer Conference held in Abuja, Nigeria Other African countries also

3 N National A Accelerated A Agricultural I Inputs A- Access P - Program NAAIAP

4 NAAIAP Secretariat 8 Technical officer Rose, Sikobe, Zaweria, Amatha, Korir, Mutua, Esther & Lusweti 5 Administrative staff David, Mary, Christine, Alex and Magondu Office 6 th Floor, Hill Plaza

5 GOAL & OBJECTIVE NAAIAP GOAL To reach 2.5 million resource poor small scale farmers through promotion, access and use of improved farm inputs NAAIAP OBJECTIVE To increase agricultural productivity for farmers with one hectare of land through provision of basic farm inputs; and mobilization of farmers resources for re-investment in agriculture NAAIAP Started in Was fully funded by GOK then - Had 2 components Kilimo Plus and Kilimo Biashara - Covers over 150 districts

6 NAAIAP CONCEPT To transform smallholder maize farmers from subsistence to commercial farming

7 NAAIAP CONCEPT Farmers begin with starter pack (Kilimo Plus) Farmers graduate to Kilimo Biashara Farmers can now buy inputs on their own (40% KP farmers) Farmers can also gain access to affordable loans to expand farming enterprise (8% KP farmers) NAAIAP targets to commercialize maize by targeting the whole maize value chain

8 Source of funds NAAIAP FUNDING, COVERAGE & BENEFICIARIES Project Duration 07/08 08/09 09/10 10/11 11/12 BUDGET (Ksh) No. of Beneficiaries No. of districts GOK KP x x x x x x x x x x 1,350 M 208, KB-Equity Bank x x x x x x x 1,649 M* 39,967 KAISP (IDA) x x x X X 389 M 55,126 6 FAO x x 33 M 3,457 4 Egyptian x x 5.88 M 1,680 4 Aid 2KR (NAAIAP) x x 4.3 M EAPP (IDA/EU) RFI&RLP (ADB) TOTAL x x x x x x 2,200 M 193, x x x x x 114, x x x x x M 7 19, B 629,683

9 Projects, # beneficiaries & # districts BUDGET (Ksh Tens of Millions) # Beneficiaries (Thousands) # of districts

10 NAAIAP FINANCES Source of funds 2007/ / / / /12 TOTAL 1 GOK KP 250,000, ,000, ,000, ,000, ,000,000 1,350,000,000 2 KAISP (IDA) 331,000,000 56,000, ,000,000 3 FAO 20,000,000 5,000,000 25,000,000 4 Egyptian Aid 5,880,000 5,880,000 52KR (NAAIAP) 4,315,200 4,315,200 6 EAPP (IDA/EU) 1,095,980,0781,104,019,922 2,200,000,000 7 RFI&RLP (ADB) 66,000,000 66,000,000 44,000, ,000,000 TOTAL 250,000, ,195, ,000,000 1,411,980,078 1,498,019,922 4,148,195,200 Beneficiaries (K- Plus) 22,000 87, , ,383 60, ,134

11 NAAIAP FINANCE TRAIN 1,600,000,000 1,400,000,000 1,200,000,000 1,000,000, ,000, ,000, ,000,000 RFI&RLP (ADB) EAPP (IDA/EU) 2KR (NAAIAP) Egyptian Aid FAO KAISP (IDA) GOK KP 200,000, / / / / /12

12 NAAIAP Component 1 KILIMO PLUS (Input Voucher) ~500,000 inputs vouchers issued ~100 districts (100% subsidy, one touch) Agro-dealer training for 2,685 stockists & 305 staff Soil testing 3 training done, 8700 soil samples collected from 145 districts, 30 farmers per district. KARI doing analysis.

13 NAAIAP Component 2 KILIMO BIASHARA (ACGS) Agriculture Credit Guarantee Scheme 4 banks Equity, Family, Cooperative & KWFT get total KES 500m to offer affordable loans (12% interest rate) Rising interest rate threat to commercialization. Visibility and Sensitization of ACGS thro TV, Radio, Field days, Newspaper and Posters

14 NAAIAP Component 3 THV-CROPS 114,459 farmers in 105 districts benefited from drought resistance seed & planting material worth >KES 151million Irrigation infrastructure for 3 KARI stations (Katumani, Igoji & Marimanti) KES 50 million Irrigation equipment to 4 ATCs Bukura, Kitui, Wambugu & Garissa > KES 10 million commercialization of sorghum for farmers seed bulking training for staff

15 NAAIAP Component 4 Administration Supervision and Backstopping ICT 5 pilot districts, input of data; and purchase of server and setting up Impact Assessment Report printed Develop M&E framework for NAAIAP Financial Management & Audit Visibility and Communication Develop proposal for EAPP II

16 Fiscal year PROGRAM IMPACT SINCE INCEPTION No. of district s No. of input vouchers (farmers) Yield/Acre Bags (90 kg) Production Bags (90 kg) Value Million KSh. 2007/ , ,000 1, / , ,380,000 3, / , ,720,420 8, / , ,769,162 5, / , Total - 482,993-7,650,582 18,365 Creation of demand-extension, inputs, markets credit, partnerships Increased productivity from 4 bags to 20 bags per acre Fertilizers consumption 48,300 T & 4,830 T of certified seed Distance to accessibility of farm inputs has decreased from 15-35km to 3-9 km

17 NAAIAP - Challenges Climate change Viral disease attacking maize in Rift Valley Fluctuating prices of inputs against voucher value Low formation of cereal banks Funding constraints-erratic Delayed disbursement of funds to the field for logistics and stockists Logistics - Data management, Double

18 NAAIAP - Recommendations Strengthen our data analysis and retrieval system- Data management & Research NAAIAP funds should be set apart (whether from GOK or Development partners) to enhance access and disbursement of funds is done on time. Adopt lessons learnt from our tours and impact assessment study diversification to other cereals, irrigation. Develop a pull system rather than push system

19 NAAIAP FUTURE To reach 2million remaining farmers Require an estimated Ksh 18.7 billion. To generation of marketable 26,000,000 bags of maize, valued at KSh 78 billion at current prices. Funds to address the inputs access, Funds to target the market development options - and develop a grain market pull system that will attract more supply and utilization of improved inputs.

20 NAAIAP 2012/13 Budget 1. GOK Funds Ksh 350million 2. Donor Funds (WB/EU) Ksh 2 Billion 3. 2KR Funds Ksh 600 million TOTAL Ksh 2.95 billion 71,000 input voucher Crop insurance Strengthen post harvest - market & value addition Upscale the NAAIAP E-Coupon

21 Points to ponder for NAAIAP Can NAAIAP move to phase II? Are farmers ready/willing to contribute towards the subsidy? Should subsidy to given more than once to a beneficiary? Are we achieving the Abuja dream? Are we attaining the MDG 1? Are less persons sleeping hungry? Where has the shilling fallen?

22 Thank You