Postharvest, Learning Alliances and Business Models

Martin Gummert, Senior Scientist II, Post Harvest Development, IRRI

Alfred SchmidleyScientist, Business Model Development, IRRI

GRISP Workshop: Boosting agricultural mechanization in rice-based systems in sub-Saharan Africa

Senegal, 6-8 June 2011

Manual threshing1-5%

Sun drying3-5%

Cutting, handling1-5%

Open storage5-10%

Village milling20-30%

Small retailers

Machine threshing1-5%

Combine harvesting1-5%

Mechanical drying1-2%

Sealed storage1-2%

Commercial milling5-10% Large retailers

Crop Consumption

Physical losses in traditional postharvest chain

Physical losses in mechanized postharvest chain

Quality losses resulting in 10-30% loss in value

Average Postharvest Losses in Southeast Asia

IRRI’s Postharvest (PH) Partnerships in Southeast Asia, 2011

Public sectorPrivate sectorProjectConsortium

Objective:Reduce PH lossesValue addingOutputs:1. Adapted technology

and management options

2. New multi-channel extension approaches

3. Business models for PH technologies

4. Multi-stakeholder platforms (Learning Alliances)

Technology

Axial Flow Thresher

Introduction in CountriesPhilippines, 1969-1972Pakistan, 1976-1978Thailand, 1977-1980Indonesia, 1980-1982Lao, 1997-1998Vietnam, 1980s?

Combine HarvesterThailand: mid 1990sVietnam: since ~ 2000

Axial Flow Threshing Principle

Green revolutionYield increases

Double cropping systems

IRRI, 1972

Mechanized Harvesting• Response to labor

shortage and high harvesting cost

• Physical losses reduced from 4-10% to 1-2%

• Timeliness -> Better quality

Vietnam: 4,000 combines in the Mekong Delta

India

Central Plain in Thailand: fully mechanized, 90% by combine

Cambodia: in 2011 around 200 combines

Mini Combine Harvester Training and Field days in CambodiaFebruary 2007

Manual harvesting cost: US$ 188/haCombine harvesting: US$ 120/ha(Data from 2011, Battambang province)

Reduction of PH losses to 1-2%

Mechanized Drying• Paddy should be dried

within 24 h after harvesting to <14% moisture content

• Mechanical dryers produce optimum quality but use is limited– Vietnam: 30% of crop produced

in Mekong Delta– Thailand: 70% of crop produced

in Central Plain (?)– Other SE Asian countries: <5%

• Constraints– Lack of quality incentives– In-appropriate technology– Wrong targeting of technology

?

2-5% physical loss

Quality loss

Dryer Development in VietnamFarm level dryer, 1995-19972,000 unitsDiscontinued

1980-89: 1t•IRRI flat bed dryer introduced•Few units

1990-99: 4-8t•Contract service•Rice husk furnace

2000-09: 10-20t•Better quality•Partial automatization•6,200 in Mekong Delta

1990s: Two-stage drying strategy: Fluidized bed dryer + in-store drying

2010-19: Value chain integration, capacity, quality optimization

Columnar dryers

Contributors to success• Developing export market• Lack of roads in Mekong Delta• Simplicity, local manufacturing• Subsidies only for initial prototypes• Scientific support did not end

IRRI support to NARES and manufacturers: Transfer of Vietnamese type Flat Bed Dryer to Myanmar, Cambodia, Lao PDR, Indonesia, Philippines

Hermetic Sealed Storage Systems

5 t Cocoon™

Principle• Low oxygen permeability• Biological activity reduces O2 and increase CO2

• Insects die at low oxygen level => pest control without pesticides• Plastic prevents moisture adsorption• => Germination maintained for 12+ months• => Higher head rice yields and less spoilage

50 kg “Super bag”

0

3

6

9

12

15

18

21

0 20 40 60 80 100

Days of storage

Oxy

gen

cont

ent,

%

Thick PE bag92106001-092106002-0

Source IRRI Agricultural Engineering Unit, 2004

Hermetic storage, status

• Verified with farmers and seed producers throughout SE-Asia

• Bayer Crop Science and Philippine Seed producer store all hybrid rice seeds hermetically

• Last mile delivery for farmers• Improper usage due to lack of training• Counterfeits with non-hermetic properties• Other manufacturers of hermetic products

– Certification through third party laboratory?

Achievements:

Challenges:

50 kg IRRI Super bag,Super Grain Bag™

Rice mill evaluation and improvement

• Raw material quality• Reduce losses through better

maintenance and operation• Upgrading of equipment• Organic rice certification (Lao PDR)

Lao PDR Indonesia Vietnam

Rice quality test kit

Temperature

Moisture content

Milling degree

Head rice, brokens

DimensionsCracks, Insects Weight Volume

• Better understanding of grain quality• Better decision making in post harvest

management• Affordable, for farmer intermediaries and

processors

Effect of production on losses: Laser leveling

Research findings:• Increases yields (5-15%)• Reduces water use (10-

30%)• Better weed control• Reduced pesticide use• Lower harvesting losses• Better milling quality

Approaches

New impact pathway focus

• Value chain approach – multiple actors• Facilitate multi stakeholder platforms

– Participatory Impact Pathway Analysis (PIPA)– Learning Alliances

• Increased public private partnerships– Piloting available technologies

(e.g. Spectra - laser leveling)– Jointly developing new technologies

(e.g. GrainPro - Super grain bag for rice storage)– Extension for farmers

(e.g. hermetic storage with Philippine seed producers,dryers through Myanmar Rice and Paddy Traders Association)

Postharvest value systemHorizontal rice value chain with vertical linkage (equipment value chain)

•Extensionists•NGOs•Researchers•Banks

Other value creators:

Rice markets

Farmers Service providers Millers

MillingStorageDryingThreshingHarvesting

Seed producers

Distributor

Retail Dealers

Service / Repair

ComponentSuppliers

Fabricator

Traders

Seed Production

Business models

The PIPA process(Participatory Impact Pathway Analysis)

Impact pathway- Actor- Change in practice- Change in knowledge attitudes

skills and aspirations- Project strategies for achieving thisNational Learning Alliances

Composite network map from PIPA workshop in Cambodia, 2008

Machinery suppliersNo link to end users?

Traders and millers: very often mentioned and many connections

Developing the Impact pathways

Actor Change in practice

Change in KASKnowledge, Attitudes, Skills

Project Strategy, Activities

Impact Pathways

VisionPostharvest loss reduced

Postharvest ProblemHigh Postharvest Loss

Farmers Use drying service Know about better quality of mech. dried

paddy

Stakeholder mappingRoles, relationships, power..

Training for farmers, on quality

Manufacturers Produce good dryers, after sales service

Production know how, they value quality

Training, industrial extension

Other actors……

Sources: Douthwaite et al., 2007; IRRC and ADB projects

Learning alliances• Multi stakeholder platform to

embrace key public and private stakeholders

• First step: PIPA• Flexible “membership”• Leads to cost sharing• Facilitated by an honest broker• Process oriented

Cambodia

Vietnam

Philippines

Plan Act Reflect and capture

A mechanization example

• Agricultural extension + industrial extension

• Multi stakeholder platform (Ministry of Industry and Trade, Ministry of Agriculture, Manufacturers Association, Universities, Bank…)

• Technology champions• Time frame of 6 years• Business support for

users (business plans, link to micro credit project)

• Critical mass

Hydrotiller in West Sumatra, Indonesia• Designed by IRRI based on Turtle tiller from

the Philippines• 1995: Introduced by ATIAMI project• 2010: 2 manufacturers, 1,000 units/year• 10+ workshops provide after sales services

Drivers for successIntroduction in South Sulawesi failed!Project worked with 4 manufacturers to introduce the hydrotiller. At the same time the Provincial Government imported hand tractors from China and distributed them through subsidized loans to cooperatives (most loans were not paid back).-> killed the market for the hydro tiller-> damaged local industriesmost Chinese machines broke within a season, no after sales services -> farmers ended up with broken machines

Summary: Factors contributing to successful uptake

• Sound and affordable technology adapted to local conditions

• Pull and push• Technology champion• Critical mass (personnel, funding)• Time frame (6-10 years)• Business case• Partnerships

– Early inclusion of the private sector– Research did not disconnect– Some sort of multiple stakeholder platform

What has not worked well

• Technology usage by farmers groups (cooperatives, informal groups)

• Government driven technology supply programs

• Public sector manufacturing• Farm level drying• Focus on small farmers only• Focus on either “push” or “pull” only

Capacity building / Training

• Cross cutting through all outputs, • At IRRI and in-country• Training modules

– Reference manuals, power points, fact sheets, videos, sample teaching plans, e-learning

• October 17-28, 2011 at IRRI– Basic PH course, hands on, modules on all

postharvest operations plus related topics– Accreditation as IRRI postharvest trainer– Study visits to Philippine PH stakeholders– Cost: US$ 2,600

Thank you

For better livelihoods for future generations of rice farmers and

consumers

Contacts:1. IRRI homepage: http://www.irri.org2. IRRI Postharvest group: Postharvest@irri.org3. Postharvest Learning Alliance Site: http://postharvestLA.irri.org4. IRRI Rice Knowledge Bank: http://www.knowledgebank.irri.org