Project: Development Assistance for Private Sector Agriculture Initiative (ADIPSA)
Funder: Danish Embassy Sector: Food Security and Agriculture
The production of soy and sesame seeds in Mozambique is dominated by small producers, who face significant constraints to domestic production. Subsistence farming is still the norm for much of rural Mozambique and many small producers do not consider the possibility of cash crops. They do not feel secure about the existence of the market and are not sufficiently organized and equipped to respond to demand and market dynamics. From 2008-2011, NCBA CLUSA, funded by its partnership with the Royal Danish Embassy in Mozambique, implemented the ADIPSA (Development Assistance for Private Sector Agriculture Initiative) program – a US$2,500,000 budget - to support the development of the soybean and sesame value chains for commercialization. The program increased small producer production in the provinces of Tete and Manica in western Mozambique by developing self-governing producer organizations.
NCBA CLUSA’s approach supported a system of community-based training to equip participants with community organization capabilities to develop, implement and monitor activities related to soy and sesame value chains. It also worked with local development that would bring benefits to members of producer groups and communities in general. Producer associations received training on soy and sesame production to increase their technical knowledge. Additionally, NCBA CLUSA worked with 14 associations to develop marketing and business plans, credit schemes, agro-processing, and best practices. The program benefitted 9,222 producers and enabled small holder products’ improved access to the market through training and better access to financial services and quality input supplies. Producers benefited from improved seeds, fertilizers, lime and pesticides, animal and mechanized traction, as well as access to finance and credit. Throughout the program, NCBA CLUSA supported the legalization and organization of 250 cooperatives and associations that supported these activities. The farmers involved produced over 5,176 tons of soybean, sesame, and sunflower during the 2011 agricultural campaign.
Associations in Manica and Tete benefitted from comprehensive business preparedness offered by ADIPSA. After working under the project, these groups gained the ability to make and honor contractual obligations, exercise accountability, and design a marketing plan. With these skills, associations registered with the John Deer Program in order to purchase input packages of small tractor machinery, including training on maintenance. This pilot project was well suited for the ADIPSA target area and encourages local associations to take responsibility for their investments, as the program requires a 20% initial deposit and training in management and financial accountability.