November 07, 2022

Facilitating access to inputs for vegetable farmers through Market Systems Development

Fresh Produce

Mali

Seeds are an essential element for increasing agricultural production and productivity. Seeds, fertilizers, and water (irrigation and good agricultural practices) are the three main pillars essential for increasing agricultural productivity.

In Mali, as with other crops, access to quality inputs remains a challenge along the horticultural value chain. Under the vegetable partnership between SCS International and 2SCALE, farmers faced difficulties in accessing quality inputs, which negatively affected productivity and product quality. Initially, they had three supply options: self-production of seeds, individual purchase of inputs on the market, or pre-financing of inputs for the season by SCS, the main buyer of the crops. This pre-financing system carried many risks for the champion. Previously, SCS took the full risk of providing inputs to producers on credit in exchange for payment at harvest. However, the company was always disappointed when producers reported production losses at harvest time. Indeed, in the absence of monitoring, the producers do not respect the technical production itineraries. In addition, there are parallel sales to other buyers.

With a loss of more than 8 million CFA ($ ) registered credits, the business champion was forced to limit its pre-financing favors to producers. However, the seeds usually purchased on the market are not of good quality, and often have a low germination rate.

To overcome these obstacles, 2SCALE has introduced the Market System Development (MSD) approach, which aims to bring inputs closer to small-scale producers. This includes the supply of inputs and coaching services that contribute to the formalization and regulation of production standards. According to Kadia Diakité, a specialist in the MSD approach, it is a mechanism for analyzing and implementing a guaranteed system of access to inputs. She explains:

The approach also allows for analysis of how the mechanism influences quality agricultural productivity and the ability of producers to meet market demand.

This intervention is a way for the program to enable actors to overcome market constraints related to access to quality inputs and rely on the expertise of input suppliers by engaging them directly in the partnership and making them responsible not only for improving marketing and distribution, but also for training and coaching producers.

A system with several benefits

With the MSD approach, inputs are not sold in cash. Suppliers give the inputs partially on credit, i.e., a payment of 50% upon purchase and 50% after the harvest. In addition, purchases are made in groups according to the needs expressed by each cooperative. This approach is beneficial for producers. Beyond a guaranteed supply on time, the training given by the input suppliers and the follow-ups in the field allow to reinforce the farmers' skills in the efficient use of inputs. Moreover, the approach has been a source of motivation for farmers by strengthening their relationship with the business champion.

Facilitating access to gender-sensitive last-mile inputs

In the Malian vegetable sector, women constitute the majority of producers. 75% of the producers targeted in the SCS partnership are women, which explains their significant market share in this approach. For this reason, special attention has been given to gender-sensitive last-mile distribution.

This system is a sustainable solution for small-scale producers in the vegetable partnership in terms of access to quality inputs (fertilizers, seeds, pesticides). It allows producers to have inputs on time without difficulty and at a competitive price, and to benefit from technical guidance throughout the agricultural season.

In Mali, after one year of effective implementation of this approach, the sales volume of seed suppliers reached 619,500 FCFA in seed. For organic fertilizers from ECOFERT, 23 bags of 50kg or 115 000 FCFA were distributed.

2SCALE intends to work on introducing MSD solutions within its different partnerships in order to improve small producers' access to quality inputs.

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