Improving smallholders livelihoods Syngenta Foundation for Sustainable Agriculture
The Syngenta Foundation was established by the leading agribusiness Syngenta. Both organizations are committed to sustainable agriculture. Unlike the company, however, we primarily work with pre-commercial farmers smallholders in developing countries. Syngenta mainly concentrates on customers operating large or medium-sized farms. The Syngenta Foundation for Sustainable Agriculture is a separate legal entity, currently working in about 15 countries. (c) 2014 Syngenta Foundation for Sustainable Agriculture, Basel, Switzerland. All rights reserved. 2
Small farmers play a big role Around the world, about 500 million families are engaged in smallholder farming. They already play a key role in the management of natural resources, and in the global battle against poverty and hunger. New tools and methods will help them to contribute even more to food security. And productive agriculture doesn t just put food on the table; it is also essential for overall economic development. The Syngenta Foundation works with smallholders and many other partners in developing countries. Together we create added value for farming families and their communities. That is, of course, easier said than done. This brochure points to some of the challenges, and explains how we tackle them. 3
Stimulating research that helps farmers get ahead A good harvest often starts in a laboratory. For example with research into plants and the breeding of new varieties that are hardier, higheryielding or produce better quality. In recent years, unfortunately, many countries have reduced their public agricultural research even though the world needs more and more to eat. That makes new partnerships more important than ever. As well as conducting good research, these partnerships must ensure that farmers can access the results. That often means close cooperation between state institutions and private companies: Public-Private Partnerships ( PPP ). 4
The Syngenta Foundation has extensive experience with PPPs. We often act as bridge-builders, or as chemists would say, as catalysts. We help other organizations to team up in the service of smallholders in developing countries. We re currently supporting work to improve tef, the national cereal of Ethiopia. We re also working to develop a corn for Asia that can cope better with drought, but is still affordable for smallholders. We ve catalyzed a PPP to protect wheat worldwide from a devastating disease. And in Kenya we helped found an institute that trains young scientists from across East Africa. Whatever the details, we always keep a clear eye on our goal: research that involves small farmers, and produces results from which they can really benefit. For example with seeds... 5
Helping potatoes pay the school fees Seeds may be tiny, but they make a remarkable difference to harvests. Even if a farmer changes nothing else, she or he can hugely improve yields just by using better seed. With potatoes, for example, the harvest often doubles. (And if farmers also change how they grow the crop, the difference gets even larger). The problem is that many smallholder families don t have access to healthy modern seeds. So they save some from the previous harvest and replant them. Unfortunately that means they also replant last year s diseases, and miss out on new varieties that grow better. As a result, harvests are much smaller than they could be. As well as less to store for the family, low yields also mean less to sell. Lower incomes mean less to invest in the next crop and so the downward spiral continues. 6
That s a cycle the Syngenta Foundation aims to change. When smallholders get access to better seed, they re keen to use it. So the challenge is really about logistics. In Kenya and Tanzania, we re working with large farms, smallholders and other partners to produce more certified potato seed for sale. We re also tackling bottlenecks in other countries seed markets, across a range of crops. There is still enormous demand to meet. But the results so far tell a clear story: farmers who sow better seed reap higher profits. And what do they usually do first with the extra money? Spend it on their children s school fees. A word of caution, however: profits only come in after harvest. Well before that, smallholders need to invest and buying new seed naturally costs more than saving old. Up front, that investment is a risk. And smallholders risks are something we d like to reduce. For example with insurance... 7
Lowering the risks that get in the way Some have thousands of hectares, others less than two but regardless of size, there are some worries that all farmers share. One of the biggest is the weather. Drought, floods, hail and frost can destroy whole crops. The right rain at the wrong time doesn t help much, either. And whatever the weather, plants also face attack from insects and weeds. All sorts of diseases threaten crops, animals and farmers own health. And even when the harvest is safely in, prices keep moving up and down. So farming is risk management, every day of the year. Smallholders have a particularly hard time here. Usually, they carry the entire business risk alone, from seed purchase to food sale. Understandably, many of them avoid making investments that could raise yields, but can also ruin their family if the harvest fails. 8
The Syngenta Foundation helps smallholders to manage their risks professionally. We started by organizing weather insurance, and used modern technology to keep costs down and the premiums affordable. A range of products now covers large numbers of East African smallholders against other risks as well cow health included. In the past, insurance companies largely ignored the rural population, and vice versa. But today they work together so well that our risk management initiative has won a string of prizes. And we ve shown that with the confidence that comes from insurance, smallholders really do invest more in their harvests. Or put another way: by reducing their risks, they can earn more money. Insurance doesn t end every farm worry. But it does shift the burden of risk. And we are also working to improve smallholders income in other ways. For example through new markets... 9
Making markets make money Useful research, better seeds and less risk are three keys to success. But none of them actually puts money in a farmer s pocket. To be profitable, agriculture needs markets in other words customers. But what is a good market? Where could one find new customers? How can smallholders serve them successfully, day after day? And what about prices? Let s take prices, for example. Farmers who can t store their produce properly are forced to sell soon after harvest. Lots of other people sell then, too, so the prices are low. However, if smallholders club together, they can afford proper storage. That way, they ve still got stocks in reserve when prices rise. So instead of middlemen creaming off profits, the money goes to the people who actually grew the crops. And what about markets? The weekly get-together in a nearby town can be a good source of income. But we help smallholders look beyond traditional options. A market can also be a completely new set of customers. Like a chain of restaurants, supermarkets in the capital or export wholesalers. However, these customers set high standards: quality, quantity, hygiene and delivery all have to be spot on target. For a smallholder, tapping into this kind of market can look very daunting. 10
The Syngenta Foundation aims to meet that challenge. In Mali we helped set up farmers organizations to give them more say in the market. In Bangladesh we re working to create Farmers Hubs, new rural centers for advice and transactions. Together with partners, we enable smallholders to satisfy highly sophisticated customers. Starting in the Peruvian Andes, we ve shown that small farmers can become important suppliers to a well-known hamburger chain. Next we re extending this initiative to restaurants across Latin America. In Vietnam, farmer groups can now provide Hanoi supermarkets with vegetables that meet the high VietGAP standard. These crops are healthier for consumers and the environment than the country s conventional produce. In Kenya, smallholders have benefited from links to export markets, an entirely new source of income. And increasingly, our software platform Farmforce will make it much easier for wholesalers to work with large numbers of small farmers. With growers on track for good incomes, there s just the politics to get right... 11
Harvesting the fruits of better policy Agricultural policy is a popular topic. Lots of people have their own opinions, and keep on sharing them. That s not always a recipe for success, however. Overall, agricultural policymakers haven t scored very highly in recent decades. Most governments have reduced research expenditure. Subsidies, tariffs and other barriers skew international markets. And in many countries, poor infrastructure and unsuitable legislation put further brakes on smallholders success. 12
The Syngenta Foundation provides a counterweight. We run studies and collect data that point to new ways forward. We publish the findings and discuss them with decision-makers. That doesn t always produce results immediately. But encouraging changes do take place. In West Africa, for example, many politicians have realized that cross-border cooperation is better than national isolation. For its rice, the region depends heavily on imports from Asia. A poor harvest in Thailand can lead to alarming price rises in West Africa. In future, countries will team up instead of trying to go it alone. That s exactly what one of our studies recommended and unlike a classical Think Tank, we can also help implement what we suggest. The Syngenta Foundation is now engaged in initiatives to improve rice harvests across the region. Action is important. But so is discussion beforehand. That s why we also get involved in debates, worldwide... 13
Talking to learn There s an agricultural policy debate somewhere every day. Fortunately, they are not restricted to parliaments and Ministries. Experts also discuss at conferences, sometimes in small groups, sometimes with large audiences and lots of media attention. These discussions offer more than just a speaking platform; they are also valuable learning opportunities. Everybody can contribute, and take home new insights. That s why we enjoy getting involved. Over the years, we ve debated on every continent and a wide range of topics. But for us, whatever the setting, the heart of the debate is always about improving smallholders livelihoods. 14
We also keep discussing after the conference has finished. In books and journals, for example. On our website, and in our Reviews. This brochure is part of our outreach, too. If you ve found it interesting, you can discover a lot more on www.syngentafoundation.org. But as talking is above all a chance to learn, we also look forward to hearing from you. You ll find various ways to contact us on the back cover. 15
Contact us: Syngenta Foundation for Sustainable Agriculture WRO-1002.11.54 Schwarzwaldallee 215 4058 Basel, Switzerland syngenta.foundation@syngenta.com Tel. +41 61 323 5634 Fax +41 61 323 7200 www.syngentafoundation.org