Due to its strength in cotton production, a disparity between cotton and food crops has developed in Benin over the last several years, creating the need to better balance agricultural production. With only 23 percent of Benin’s total land area dedicated to cultivated crops, the competition between non-food crops and cash crops that support food security is on the rise.
Government efforts to build long-term demand for agro-inputs while ensuring a sufficient supply of the products have focused primarily on export crops such as cotton. Smallholder farmers find it difficult to procure agro-inputs for other crops and often divert fertilizers meant for their cotton crop to food and/or other cash crops. As a result, none of their crops receive the optimum amounts of fertilizer.
The Non-Cotton Inputs project is increasing the productivity of two staple crops (maize and rice) and one cash crop (pineapple). Project objectives are to help 30,000 targeted farmers to increase yields of these three crops by 40 percent. The three-year project (2009-2012) is funded by the Embassy of the Kingdom of the Netherlands in Benin and is implemented by IFDC in a strategic partnership with the Netherlands Development Organization (SNV).
The project covers agricultural regions in Benin that already receive support from SNV and IFDC’s 1000s+ project: Borgou/Alibori, Plateau and Couffo for maize; Collines for rice; and Atlantique for pineapple. In these regions, IFDC is training farmers in advanced agricultural technologies and the proper use of quality agro-inputs. The project also builds stronger linkages between smallholder farmers and agro-dealer organizations, agro-input suppliers, financial institutions, processing/storage facilities, transportation sources and private enterprises to facilitate product export.
As a major element of the project, micro-financing is provided by Fédération des Caisses d’Épargne et de Crédit Agricole Mutuel (FECECAM) of Benin and the Banque Régionale de Solidarité. These institutions have established systems that guarantee loans to select farmers, allowing smallholders to sell their production at later dates to take advantage of peak selling-season prices.
Project Progress (2010-2011)
During the first year of project implementation, 10,000 farmers were targeted through 16 farmer-based organizations (FBOs). The project will reach another 15,000 producers during the 2011-2012 cropping season.
- A database has been developed and installed at the headquarters of nine FBOs to help structure the demand and improve the management of agro-inputs. Nearly 40 FBO managers were trained in database use.
- Nearly 600 FBO executives were trained in business plan development. More than 220 business plans were developed and submitted to a partner financial institution, reflecting a financing need estimated at 2.7 billion FCFA (about US $5 million) – of which 60 percent is for agro-inputs.
- Three FBOs received administrative and logistical support to participate at the Salon International de l’Artisanat de Ouagadougou in November 2010. During the three-day event, the Initiative for Boosting Pineapple Development (Initiative pour la Relance de l’Ananas, or IRA) sold 12.6 metric tons (mt) of bottled fruit juice; the Regional Association of Pineapple Producers (Association Régionale des Producteurs d’Ananas, or ARPA) sold 3.75 mt of fresh pineapples; and the Centre Rice Growers Union (Union des Riziculteurs du Centre, or UNIRIZ-C) sold 3.5 mt of rice. The participants also developed business relationships with importers and supermarkets for future transactions.
- Support was given to UNIRIZ-C to increase the market share of parboiled rice. Supermarkets in Cotonou, Port-Novo and Parakou were contacted to promote the rice to consumers. Tasting sessions were held during a fair in Glazoué.
- The capacities of 2,657 FBOs were strengthened through the training of their executive members in administrative and financial management. Nearly 700 management tools were distributed including cash books, member books, minute books and stock record cards.
- From January to June 2011, 318 FBO leaders and representatives were trained in good governance; 60 were women. About 175 were trained in gender issues, non-cotton input management, HIV/AIDS issues, leadership and conflict management.
- Nearly 200 rice producers and another 200 maize producers were trained in crop storage and conservation best practices.
- The project has also strengthened the FBOs’ capacities to prospect for markets and collective marketing of agricultural produce. Training courses included assessing production costs, the structure of agricultural produce markets, price calculation and input supply management.
- Thirty seed producers from UNIRIZ-C received technical training and credit in the form of foundation seeds and fertilizers. As a result, 30 hectares in six communes of the Collines region are being used for the production of certified seeds for two improved varieties.
- Thirty-four FBO managers were trained in techniques to negotiate with financial institutions.
- Twenty-one micro-finance institutions (MFIs) were trained to use the inventory credit system (also known as the warehouse receipts system and as warrantage in French) effectively and the extent of risk in the financing of business plans.
- A study to propose a mechanism for the establishment and management of a guarantee fund was validated in September 2010. In December 2010, a convention was signed with FECECAM-Benin for the financing of business plans and agro-input credit delivery.
- From January to June 2011, FECECAM provided over 5 million FCFA (US $10,000) for women to implement income-generating activities.
- A memorandum of understanding was signed between IFDC and two financial institutions: Banque Régionale de Solidarité and FECECAM, to facilitate FBOs’ access to credit.
- A feasibility study on the establishment of inventory credit systems in Benin and a study on the functioning of the guarantee fund were conducted. A consultation workshop was organized with stakeholders (FECECAM, FBOs and packaging agents) involved in the implementation of an inventory credit system. As a result, trade linkages were established between maize producers and agro-input dealers, which allowed producers to sell about 950 mt of maize worth 117 million FCFA (US $240,000).
Benin Non-Cotton Information
Benin Non-Cotton Brochure