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August 05, 2022

Turning Smallholder Farmers' Challenges into an Opportunity for the Youth in Nigeria

Staple Crops
Nigeria

Sorghum farmers in Kaduna State, Nigeria, travel several kilometers to buy inputs required for their farming activities. This, in addition to increased costs of production, stress, and security risks, poses a challenge to their productivity, income, and livelihoods.

This challenge presented an opportunity for 2SCALE’s partnership with syndicate aggregators, Adefunke Desh and Nalmaco, to fill two needs with one deed-solve the farmers' challenge through engaging the youth. For a start, the partnership sought to ease smallholder farmers’ access to inputs by empowering the youth to become input distributors. 14 youths- seven males and seven females- were selected within clusters in Giwa, Maraban Guga, Shika, and AROC to provide the services. To build their capacity to efficiently deliver the inputs closer to the farmers' residence, the partnership facilitated training on agro-dealership in December 2020.

To enhance self-reliance and further improve the skills required, the contents of the training revolved around identifying specific farmers' needs based on the agricultural activities within the community, identifying different ways to acquire starting and running capital, and how to establish and effectively manage a business.  

Also, in 2021, the participating youths underwent life and business skills training using the OYE (Opportunity for Youth Employment) Curriculum. This training covered courses such as business selection, customer relations, business ethics, and business promotion. They also got to learn about different chemicals through the Agric extension officers attached with INTAGRIS Consulting Limited, who are the Business Service Support Providers in the partnership.

Propelling the youth into agro dealership

Access to finance has been a major hindrance for youths interested in venturing into the agri-business world. Most of the participants had difficulty acquiring sufficient funds to venture into the business upon successful completion of the training. However, two participants, Daniel Sani and Mukhtar Umar have successfully started and operated their agro-dealership businesses, bringing agro-inputs closer to farmers in their community.

Daniel Sani, 28, set up an agrodealership shop in 2021 in Unguwar Galadima Shika, Kaduna State, Nigeria. He started off selling agrochemicals and veterinary drugs. Before the training, he made a living through farming and trading by buying cows, fattening them, and selling them at a profit. Since both of these economic activities were small-scale, the income was insufficient to fund his agro-inputs start-up. He, therefore, had to source capital from close relatives who assisted him with the finance to find a suitable location for his store and start operations.

He explains:

The 2SCALE training opened my eyes to this business opportunity and equipped me with the necessary life and business skills to run a successful and sustainable business. Agro-dealership is a very lucrative business. We have brought the needs of farmers closer to their doorstep. I also identify specific farmers’ needs and address them, by advising on the best chemicals and inputs to use both on and off the farm. I am now able to improve my well-being and take care of my dependents. The extra income I earn from the agro-input business goes back into my cattle rearing and farming businesses.

In addition to offering discounts, he sells his product at an affordable rate which is almost N200 (USD 0.47) lesser, per litre than in the open market. From each litre of agrochemicals sold, he makes about N300 (USD 0.7) as profit. This, as well as his ability to identify the best products in the market, has come a long way to helping him build trust with his customers, guaranteeing loyalty.

For both Daniel and Mukhtar, the farmers in their community appreciate buying from them because their shops are located near their homesteads and farms. They perceive having these products in very close proximity as a blessing since they do not need to incur extra costs on transportation. 

Mukhtar Umar, 32, lives in Giwa Local Government Area, Kaduna State. After the 2SCALE training, he was an apprentice for two months, learning under an established agro-input dealer in his location. Through his business of farming and trading gunny bags, he was able to save up enough capital to start selling agrochemicals and farm inputs. He shares:

I took up the apprenticeship to learn the technicality of agrochemicals and their mode of application through a certified agro dealer. I started my business in 2021, well equipped because of the hands-on experience from the apprenticeship and the training organized by 2SCALE. I make a profit of N200- N400 (USD 0.48-0.96) per litre. To sustain farmers’ loyalty, I offer advice on how to correctly use agrochemicals and give discounts to returning customers. As a part-time student, the business enables me to meet some of my basic needs including purchasing school materials and transportation fees to the school. I have now become independent and able to support my parents.

Youth inclusion is at the core of 2SCALE’s approach. Creating opportunities for the youth to engage productively in agribusiness improves their livelihoods and strengthens value chains. For the sorghum partnership in Nigeria, a burden has been lifted off of the smallholder farmer’s shoulders. They now have easy access to quality, certified inputs at affordable prices, which increases their productivity and leads to improved livelihoods.  

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