future for small farms
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What is the Future for Small Farms in Africa and Renewed Role for Farmers?TRANSCRIPT
WHAT IS THE FUTURE FOR SMALL FARMS IN AFRICA AND RENEWED ROLE FOR FARMERS?
Mabel Ndakaripa Munyuki-Hungwe (PhD)
Barefoot Education for Afrika Trust
African smallholders
Africa has shown some impressive growth rate in real GDP (5%)
Growth due to enabling policy and business environment, favourable commodity prices (in some) and improved peace and stability (AfDB, 2013)
Success: central Kenya: coffee, dairy, vegetable; South west Nigeria: tomatoes & peppers; Ghana (Brong-Ahafo) tomatoes achieving higher gross margins from land and labour in commercial enterprises
African smallholder farmers
But this has not translated to jobs, wealth, income growth, poverty reduction & food security needed to transform Africa
388 million Africans still live in poor conditions, 239 million are under nourished and of the 20 least competitive economies, 14 are African (WEF, 2012)
But Africa possesses greatest potential to create wealth and transform especially through agriculture
Africa Real GDP Growth Rates by Sub Region 2000-2060 Source: AfDB Database and Projections
African agriculture
Agriculture still the main stay – employment & livelihoods of many economies
Agriculture contributes to foreign exchange earnings
Investment is therefore crucial African leaders through CAADP have also
in their part placed agriculture on the agenda in development to improve food & nutrition security, increasing incomes in African communities (what is needed is more implementation)
Small holder farmers
Globally there are 450 million smallholder farmers
Africa has about 63 million such farmers Income ranges between $170 -$570 per
annum Many farm on less than 2 hectares Many only market produce within their
locale Less than 10% have entered lucrative
export value chains
But Small farms offers opportunities
Farm size (ha)
% of all farms
Africa
<2 80
2-10 15
10-100 3
>100 0
Can: use land more
efficiently
produce cheaper and more nutritious foods
increase own incomes and productivity
promote equity, hunger, and poverty reduction
Source: Calculations based on most recent data available from FAO Agricultural World Census from late 1980s-2000s
AND average farm size in Africa will continue to decline due to rural population growth therefore: SMALL FARMS HAVE BECOME THE NEW FORCE
FOR AFRICAN AGRICULTURAL TRANSFORMATION
New challenges facing African smallholders
Poor access to inputs (SSA pay high prices for fertilizer hence use less in the world), credit, support services, knowledge to boost production
Smallholders face risks to climate shocks, pest & disease outbreaks, have limited access to risk reduction strategies (safety nets)
Some face poor information, resources and bargaining power
Land scarcity, acquisitions as they compete with the state, multi national corporation, other communities
Challenges & opportunities
Africa increasingly being rapidly urbanised trends show that by 2020-2030 most of Africa will predominantly urbanised (Reardon et al, 2013)
Emergence of an African middle class economy both rural and urban with more non staple foods: wheat, processed foods, milk, meat, poultry, fruits and vegetables
African youths an untapped resource yet 40% of workforce is under 23 years of age (Rukuni, 2013)
Almost every smallholder farmer has a mobile phone
Source: Adapted from Haggblade, 2012
Smallholders opportunities
“Meeting global increases in demand for agricultural products will be difficult without sourcing from African smallholder farmers (GIZ)
Africa has the potential to increase annual agriculture production output from $230 billion to $800 billion by 2030 (McKinsey, 2010)
PPP Partnerships
Mobilizing Private Sector Finance through innovative and targeted Public Private Partnerships is central to unlocking the potential of African Agriculture.
Need for better negotiation skills among African farmers especially farmer organisations
Promote Transformative and Targeted public-private partnerships
innovation –driven
KNOWLEDGE economy
innovation –driven
KNOWLEDGE economy
Innovation & Sophistication factors•Business sophistication•Innovation
Innovation & Sophistication factors•Business sophistication•Innovation
efficiency – driven economy
MANUFACTURING
efficiency – driven economy
MANUFACTURING
Efficiency Enhancers•Technological readiness•Higher education & training•Goods market efficiency•Labour market efficiency•Financial market sophistication•Market size
Efficiency Enhancers•Technological readiness•Higher education & training•Goods market efficiency•Labour market efficiency•Financial market sophistication•Market size
factor driven economy-
AGRICULTURE MINING
factor driven economy-
AGRICULTURE MINING
Basic Requirements•Institutions•Infrastructure•Macroeconomic stability•Health & education
Basic Requirements•Institutions•Infrastructure•Macroeconomic stability•Health & education
The 12 pillars of Competitiveness (Source: World Economic Forum)
New roles for African small farmers Rebuild agriculture production capacity Revamp the agro industry Priority to diversifying into cash and
commercial commodities Target value-chains high end markets Add value locally and own the FARM TO
SUPERMARKET VALUE CHAIN Increase competitiveness of the African
Agricultural Sector from production to manufacturing
Major paradigm shift (transformation) needed More policy/advocacy representation
Prime movers necessary for agricultural development
Human capital development – professional, managerial and technical skills necessary in the sector
Sustained growth of biological capital (improved genetic and crop and animal husbandry) and physical investments in dams, irrigation and roads
Improved performance of institutions (marketing, credit, research, extension and settlements) currently many key agricultural institutions under stress
Favourable economic policy environment and political support for agriculture over long terms (CAADP)
New technology produced by private and public investments in agricultural research
Land/agrarian reform – improved tenure security and wealth creating capacity than before
Thank you! Asante Sana! Merci!