AIMS promotes private sector investment in agro-inputs (fertilizers, seeds and crop protection products) and marketing in Mozambique’s Beira and Nacala corridors. The project is improving farmers’ access to agro-inputs through more competitive markets and improved agro-dealer networks. AIMS is funded by the U.S. Agency for International Development (USAID) and implemented by IFDC. The first phase of the project ended in September 2009. The second phase (2009-2012) is continuing to strengthen the private input sector and create demand for agro-inputs through market development and the introduction of Integrated Soil Fertility Management (ISFM). The project is part of the Platform for Agricultural Research and Technology Innovation (PARTI) together with Consultative Group on International Agricultural Research (CGIAR) centers, the Mozambican government and the Brazilian Agricultural Research Agency (EMBRAPA).
AIMS project activities are grouped into the following major components:
Transfer of Soil Fertility Management Technologies
Because of the inherently low soil fertility levels in Mozambique, AIMS is promoting the adoption of ISFM, the combined use of mineral fertilizers and locally available organic amendments (crop residues, compost and green manure) to replenish lost soil nutrients. This improves both soil quality and the efficiency of fertilizers and other inputs. AIMS is training agro-dealers and extension agents in ISFM technologies and other improved agricultural practices so that they can transfer the knowledge to smallholder farmers through demonstration plots and participatory learning activities.
In 2009/10, the project established 42 demonstration fields involving over 400 farmers in Ribaue and Malema districts. Fields such as these demonstrate the costs and benefits of applying fertilizer at different rates and evaluate various intercropping systems between maize and legume crops (legumes increase the amount of nitrogen in the soil, thus improving soil fertility and increasing agricultural productivity).
Strengthening Input Supply Chain and Development of Agro-Dealers in Rural Areas
Agro-dealers in Mozambique are located primarily in major market towns. The small size and unorganized nature of these agro-dealers make it difficult for smallholder farmers in rural areas to access fertilizers and improved seeds. In most areas, farmers must travel 30 to 40 kilometers to buy agro-inputs and also to market their crops. This discourages farmers from using modern inputs and increasing crop productivity.
AIMS is organizing training sessions for agro-dealers on product knowledge and financial and business management. IFDC staff members in Mozambique regularly follow up with the trained dealers to ensure that they are implementing what they have learned. Demonstration plots are established in collaboration with agro-dealers, who are responsible for their maintenance. This transfers responsibility for demand-creation activities to the dealers and encourages them to promote their businesses.
Input Sector Policy Reforms and Regulations
Currently, there are no price or marketing controls on agro-inputs in Mozambique. The development of agro-input markets is the responsibility of the private sector, but there are no fertilizer laws or a fertilizer regulatory authority in the country. Under such conditions, quality assurance and the importation of improper and/or uneconomical fertilizer products cannot be monitored. Due to inadequate product knowledge, retail dealers and farmers often buy products that result in inefficiencies and low yields. An enabling and supportive policy environment for private sector development is essential. IFDC projects in Mozambique are assisting the government to introduce appropriate legislation and establish a fertilizer authority to enforce the legislation.
Strengthening Market Information Systems (MIS)
Reliable information on agro-input availability and prices at the market level are often unavailable for agro-dealers and farmers. The Mozambique Ministry of Agriculture’s (MINAG) System of Information of Agricultural Marketing (SIMA) provides information on crop produce but not on inputs. Access to timely and reliable market information on the availability and prices of agro-inputs and crop produce would greatly contribute to confidence and transparency in the input marketing system.
In one particular 2010 effort to address this issue, IFDC staff organized a workshop on MIS in collaboration with AMITSA staff. AMITSA is a web- and mobile-based MIS focused on agro-inputs for eastern and southern Africa. The objectives of the workshop were to assess the MIS environment in the region, define ways to collaborate with ongoing initiatives (such as SIMA) and further promote AMITSA.
Strengthening Agro-Dealer Trade Associations
Associations give members the opportunity to pool demand, reduce costs through joint procurement, organize internal and external training sessions and advocate for a favorable policy environment. During training sessions, AIMS encourages agro-dealers to join district-level associations, which are linked to the Association of Mozambican Agricultural Input Suppliers (AMPIA). AMPIA was created in 2008 under the first phase of AIMS. Since 2008, IFDC projects in Mozambique have worked closely with the national association.
Fertilizer and Seed Voucher System for Poor Farmers
Fertilizer and seed vouchers provide incentives to invest in modern inputs and provide farmers with purchasing power support. Short-term incentives are essential in Mozambique because farmers are not yet accustomed to using improved technologies and are unwilling to purchase agro-inputs without first experiencing the benefits of their use.
A two-year input voucher pilot program began in September 2009 in collaboration with the European Union, Food and Agricultural Organization of the United Nations (FAO) and the Mozambique government. IFDC staff in Mozambique helped select and train agro-dealers and negotiated prices between importers and blenders, transporters, wholesalers and suppliers. During the second season of funding, over 20,000 fertilizer vouchers for use on maize and rice crops were distributed and redeemed.
AIMS activities are implemented in collaboration with the following IFDC projects: Maize Intensification in Mozambique (MIM), Mozambique Agro-Dealer Development (MADD), Savings, Subsidies and Sustainable Food Security and the FAO-Mozambique Input Voucher Program. AIMS and MADD also collaborate with the World Food Program’s Purchase for Progress projects (P4P) to make inputs accessible for farmers and to organize procurement of farmers’ produce in a structured manner through agro-dealer networks and AMPIA.
AIMS Progress (January-June 2011)
- Trained agro-dealers were linked with suppliers and financial institutions during ‘business linkage meetings’ organized after the completion of training sessions.
- One focus was on the demonstration and transfer of ISFM technology. Numerous ISFM demonstrations and field days were implemented in both the Beira and Nacala corridors.
- The process of legalization of district agro-dealer associations continued. Twelve associations now have full legal status. This enables these associations to open bank accounts and perform joint transactions on behalf of their members. Each district association has, on average, 12-15 members.
- Trainings of agro-dealers in the use of AMITSA continued. About 15 agro-dealers are now providing price data to AMITSA on a monthly basis. Links with the mobile phone platform ESOKO have been established. Price data from AMITSA will be included in government price bulletins.
- AIMS continued to support the second season of the pilot Input Voucher Program, implemented in collaboration with FAO and EU. Funds were used to design the program and provide coordination during implementation.
Past Highlights (July-December 2010)
- An agro-dealer assessment was carried out in July and August 2010 in collaboration with the MADD project.
- Several agro-dealer training sessions were conducted in both the Beira and Nacala corridors. A total of 65 dealers were trained during this period.
- Trained dealers were linked with suppliers and financial institutions during ‘business linkage meetings’ organized upon completion of the training sessions.
- A meeting with agro-dealers, the AMITSA team and MINAG was organized in November 2010. This meeting strengthened the involvement of Mozambican dealers in delivering price information. Fifteen agro-dealers were trained to provide monthly input price data for the market information system, AMITSA, which is linked to the ESOKO platform.
- Links were made with government initiatives to jointly produce price bulletins with the national market information system that focuses on output prices. Price data from AMITSA will be included in these government price bulletins.
- A policy workshop was organized in November 2010 in collaboration with the Alliance for a Green Revolution in Africa (AGRA) and the New Partnership for Africa’s Development (NEPAD). The workshop focused on fertilizer and seed policies in Mozambique.
- IFDC led the establishment of a Soil Fertility Working Group that brought together the platform partners, government institutes and other stakeholders to jointly discuss and address soil fertility issues in Mozambique.
- AIMS contributed to the second season of the pilot Input Voucher Program that is implemented in collaboration with FAO and EU. Funds were used to design the program and provide coordination during implementation.