STATUS OF THE RICE SUBSECTOR AND NATIONAL RICE STATUS OF THE RICE SUBSECTOR AND NATIONAL RICE DEVELOPMENT STRATEGY FORMULATION PROCESSESDEVELOPMENT STRATEGY FORMULATION PROCESSES

AGRI-PROFOCUS MULTI-STAKEHOLDER FORUM 5th October 2008

Kaunda KapepulaPrincipal Agricultural Economist

Department of Agribusiness & Marketing

Ministry of Agriculture and Cooperatives

PRESENTATION OUTLINEPRESENTATION OUTLINE

1. WHERE ARE WE – SUPPLY AND DEMAND?

2. WHAT DOES THE ZAMBIAN RICE VALUE CHAIN MAP LOOK LIKE?

3. WHAT IS BEING TOWARDS FORMULATING A COMPREHENSIVE NRDS

VISION AND GOALVISION AND GOAL

VISION

GOAL

A competitive private sector-led Zambian rice industry that would uplift isolated rural economies through improved profitability of all enterprises along the value chain through utilisation of locally adapted low-cost modern technologies, provision of critical support services and an enabling policy environment

More than Double Rice Production from the Current 25, 000 MT to about 60,000 Mt within 5 years

National Rice Requirements (MT)

Area Planted, Production and Sales

% share of food group in total % share of food group in total value of consumption of main value of consumption of main

staplesstaples

% share of main % share of main staples in total staples in total value of food value of food consumptionconsumption

Urban Urban CentreCentre

MaizeMaize WheaWheatt

RiceRice CassavaCassava

LusakaLusaka 39.039.0 49.449.4 10.710.7 0.90.9 19.519.5

KitweKitwe 42.542.5 45.345.3 10.310.3 2.02.0 23.223.2

MansaMansa 45.845.8 28.228.2 10.010.0 16.016.0 23.823.8

Source: Food Security Research Project, Mason N. and others, June 2009

Ten Year Average Provincial Contribution to National Production

Rice Value Chain Map

LOCAL SMALL

MILLERS

LOCAL SMALL

MILLERS

CROSS-BORDER TRADERS (IM)

URBAN INFORMAL TRADERS

LARGE MILLERS/

WHOLESALERS

LARGE MILLERS/

WHOLESALERS

Export s /Domestic Retailing

Wholesaling/Distribution

Processing

Assembly

Production

CROSS-BORDER TRADERS (EX)CROSS-BORDER TRADERS (EX)

LARGE GRAIN TRADERS

DOMESTIC SMALLHOLDER FARMERSDOMESTIC SMALLHOLDER FARMERS FOREIGN SUPPLIERSFOREIGN SUPPLIERS

PUBLIC URBAN MARKETS

PUBLIC URBAN MARKETS

FOODSERVICE OUTLETS

FOODSERVICE OUTLETS

VILLAGE ASSEMBLERS

VILLAGE ASSEMBLERS

MEDIUM SCALE MILLERS/

WHOLESALERS

MEDIUM SCALE MILLERS/

WHOLESALERS

FRAFRA

RETAILERS

RETAILERS

Rice Value Chain Supporters

1. Extension & Research (Seed & Agronomy) – ZARI, SCCI & DoA, & Private Sector

2. Input Suppliers – Private Sector, SNV, Other NGOs/Projects, FISP, ZAMSEED

3. Marketing – Private Sector, NGOs/Projects ZAMACE, FRA

4. Financial Services – ZANACO, ZATAC, WOOD & DAAD, CEEC, ZSIC

5. Policy – MACO (Agricultural Credit Bill)

OPPORTUNITIES

1. Growing Demand for Rice in both Domestic and Regional Markets with Historic High Commodity Prices

1. Growing Demand for Rice in both Domestic and Regional Markets with Historic High Commodity Prices

2. Duo Role of Rice as a Food and Cash Crop for Smallholder Farmers;

2. Duo Role of Rice as a Food and Cash Crop for Smallholder Farmers;

3. High Prospects for Participation of MSEs especially Women in Group Managed Enterprises i.e. Seed Production and Processing

3. High Prospects for Participation of MSEs especially Women in Group Managed Enterprises i.e. Seed Production and Processing

4. Leveraging Renewed Commitment and Goodwill by International Development Agencies (e.g. the CARD initiative) To Address Food Insecurity and High Poverty Levels

4. Leveraging Renewed Commitment and Goodwill by International Development Agencies (e.g. the CARD initiative) To Address Food Insecurity and High Poverty Levels

IMPORTANCE OF THE RICE SUB-SECTORIMPORTANCE OF THE RICE SUB-SECTOR

KEY ISSUES &CHALLENGES

1. Fragmented and Uncoordinated Markets

2. Low Entrepreneurial, Business Management and Technical Skills

3. Limited Access to Financial Services

4. Recycled Seed and Poor Quality Grain

5. Poor Knowledge of Good Agricultural Practices (GAPs)

6. Low Level of Mechanization

7. Inadequate Modern Processing Mills/Huskers & Lack of Quality Standards

8. Weak Public-Private Sector Institutions to Drive Innovation

STRATEGIC AXESSTRATEGIC AXES

RICE VALUE CHAIN

DEVELOPMENT

Quality Improvement &

Value-Addition

Quality Improvement &

Value-Addition

PPPs 4 Improved Knowledge Management

PPPs 4 Improved Knowledge Management

Pro-Market Policy Environment

Pro-Market Policy Environment

Sustainable Management of Natural

Resources

Sustainable Management of Natural

Resources

Productivity & Hacterage Scaling-up

Productivity & Hacterage Scaling-up

Citizenry EconomicEmpowerment

Citizenry EconomicEmpowerment

NERICA MAKING SIMILING FACES IN GUINEA – WEST AFRICA