Sustainable Smallholder Cross Border Trade Integration Project (SSMATI)

EXTERNAL END OF PROJECT EVALUATION for SSMATI

Presented by:
Small Medium Agribusiness Enterprise Development Services Limited (SMAED Services Ltd.)

May 2011

Content
Introduction(The Consultant) SSMATTI Background Purpose of the Study Planned Targets Work Plan Approach and Methodology Findings Operations Recommendations & Conclusions

1.THE CONSULTANT SMAED SERVICES LTD

Firm: SMAED Services Ltd Legitimacy: Registered in Kenya and working in Eastern Africa Portfolio: Agribusiness development/Food Security and SMEs Development, Business Development Services Contract: Effective from 21/2/2011

2. PROJECT BACKGROUND
2.1. Overview
Project commenced January 2010- March 2011 Geographical coverage (Kenya, Uganda, Rwanda) Partners: COMPETE Program (USAID).

2.2. Overall Goal:

Train Agro dealers on Grain Bulking Support agro dealers to establish storage facilities through matching investments facility Link agro dealers to commodity market/Large Traders

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2.3. SSMATI Activities

x Training agro dealers on grain bulking and aggregation x Supporting agro dealers to establish storage facilities through a matching investment facility x Linking agro dealers to the formal grain markets through grain traders and other large buyers of cereals.

AGMARK Agro dealer Model

Developing Rural-Base, commercially viable agro dealer networks to improve management, technical and financial capacity of Agro dealers Creating rural marketing system to facilitate:
x Supply of farm inputs to farmers. x Buying and Bulking of grains from farmers.

TERMS OF REFERENCE (TOR)

3.1. Purpose for the Evaluation is to: Assess the extent of SSMATI contribution to increased crossborder trade. Provide independent view on the implementation of the project. Assess suitability of Institutional frameworks in terms of; Efficiency, effectiveness and sustainability (Strategy, Operations, Impact & Lessons) Determine degree of success or failure of SSMATI Derive recommendations and conclusions useful for future programming and where appropriate Project expansion Determine the Projects impacts on improving farmers production, market access and livelihoods

3.2. Objectives and Scope of the Evaluation

3.2.1. Strategy: Appropriateness of the AGMARK model of private sector facilitation Rationale or justification 3.2.2. Operations: Were targets met? Were the project targets met Effectiveness in achieving expected outcomes/objectives Efficiency in optimizing resources and strength of implementation Client satisfaction 3.3.3. Learning: Are there better ways? Alternatives Best practices Lessons learned

3.3. Specific issues to be addressed

x Targets x Impacts & Lessons Learned x Volume of grain traded x Increased quality of grain x Effective x Sustainability

4.Detailed Work Plan

ACTIVITY Sign Contract Client Briefing Literature Review Consultation with Key Stakeholders (AGMARK, Country Director and (COMPETE Program) Review of Methodology and design of data collection tools. Consultation with Kisumu Office, Data collection Field work in Western Kenya (Siaya, Funyula Teso and Bungoma) Field work - Data collection (Isingiro, Kabale, Kisoro, Ntungano, Kanungu / Kihihi, Kasese and Kamwenge ) in Eastern Uganda and Kampala Data entry analysis Draft Report Stakeholder consultation Final report DATE 21st Feb 2011 22nd Feb 2011 23rd -25th Feb 2011 22nd -25th February 2011 3rd -7th March 2011

8th -11th March 2011 14th -18th March 2011 21st -25th March 2011 26th May 2011 30th May 2011

4.1 Approach and Methodology

Briefing and de-briefing with client and Key Stakeholders (AGARK, COMPETE Program) Desk Review Face to face interviews Consultation with key informants and beneficiaries Field visits / field level questionnaires. Electronic Interviews Data analysis Draft Report and client comments. Final Report

Figure 3.1.2

5. 1FINDINGS 6.1. Training for Agro-Dealers

6.1. 1 Areas of Training Undertaken Bulking And Aggregation Business Mgt Introduction To Marketing Market Costing & Pricing Milking Training Output Marketing Pest Control Post Harvest Handling Procurement Record Keeping Safe Use Of Pesticides Stock Mgt Storage Store Mgt bulking Warehouse Management

Countr y Kenya Uganda

Targ et 30 50

Achie ved 16 57

%age 53 114

5.2. RELEVANCE OF AGRO DEALER MODEL

Increase in Commodity Price Maize
2500 2000 1500 1000 500 0 Before During Increase (% ) 90ks Tin

Study revealed that there has been increased cross border trade between Kenya, Eastern Uganda, Western Uganda and Rwanda in terms of volume value and price.

Maize arketing smallholder farmers

Maize Marketing Smallholder farmers Before 90ks Tin During 1800 40 Increase (% ) 2000 80 11 100

5.3. Access to Farm Inputs All sampled farmers agreed that access to farm inputs during the project had improved as illustrated in the table below
Indicators No. Of Farmers who responded Before Total no. of Respondents 37 37 37 37 %age 94.6 78.4 73 86.5

Proximity Timeliness

35 29 27 32

Adequacy 27 Affordability

5.4 Livelihood Improvement for farmers All the respondents agreed that the project had contributed to their improved livelihood as illustrated
No. Of positive responded Total no. of Respondents interviewed 37 37 37 37 37 %age

Better feeding Intensified farming

3.5 27 32 27 31

94.6 73.0 86 73 83.8

Diversified farming Increases assets Ease of payment of medical bells Ease of fees payment Increased purchasing power Improved income
32 32 37

37 37 37

86.5 86.5 100

Improved Livelihood

Better Feeding Intenify Farming Diverse Farming Increased Assets

Better Feeding Intenify Farming Diverse Farming Increased Assets Pay medical Easier Pay Fees Easily Expenditure/Purchasing Power Income/Earning 73.0% 73.0%

94.6%

Pay medical Easier Pay Fees Easily Expenditure/Purchasing Power

86.5%

Income/Earning

83.8% 86.5% 86.5% 100.0%

0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0% 100.0%

6.2. Support to Agro dealer / Matching Investments a) Provision of Equipments, tools and materials Weights b) Improvement of stores / renovations

6.2.1. Type of Equipment / Tools and materials provided

Gunny Bags Moisture Mete Pellets Renovations Sealing Machine Sieves Sign Post Stacking Machine Stationery Storage Bags Tarpaulins Trolleys Weighing Scale Workshop

6.2.2. Targets
Indicator Target KENYA UGANDA
10

Achieved KENYA
4

%age KENYA
100

UGANDA
21

UGANDA
210

No. of agro dealers to benefit from matching investments Value of matching investments made to agro dealers Value of matching investments made by agro dealers Agro dealers to be linked to large scale buyers / traders Agro dealers linked to Financial services Value of capital / loan accessed by agro dealers Agro dealers accessing financial services

$17,020

$79,000

$11,092

$56,125

65

71

$17,020

$79,000

$16,488

$57,957

97

73

100

50

50

50

28

100

56

$24,000

$30,000

$ 25,641

2,232

107

15

25

7. IMPACT 7.1 Volume of Trade

Indicator Target KENYA UGANDA 750 750 $300,0 000 7500 Achieved KENYA 3,775 280 $87,415 6,371 UGANDA 2,220 1,767 323,317 7,887 KENYA 444 33 87 91 %age UGANDA 296 236 108 105

Volume of grains bought from farmers in MT tonnes Volumes of Grains sold to traders in MT Value of Grains Sold in US$ Number of farmers accessing agro dealer output marketing

850 850 $100,000 7,000

7.2 IMPACT
7.2 Cross-Border Trade
Indicator Target KENYA UGANDA 50 4 Achieved KENYA 44 4 UGANDA 28 6 KENYA 88 100 %age UGANDA 56 150

Linkages with Cross-border buyers Buyers sensitized in cross border documentation

50 4

Volume of Trade
Location Volume of Trade Maize (Tons) Kisoro Kabale Total 120 3.5 123.5 5 5 70 Beans (Tons) Sorghum (Tons) 70 121,000,000 9,850,000 130,850,000 Rwanda Katuna / Rwanda Value (UGS) Destinati on

8.1 Success Stories Increase in Grain Handling Capacity

Grain Handling /Bulking Capacity - Maize
250000 200000 150000 Kenya 100000 50000 0 Before After Increase Uganda 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Before After Increase

Grain Handling/Bulking Capacity - Beans

Kenya Uganda

Grain Handling / Bulking Capacity - Maize Before After Increase Kenya 18000 222500 204500 Uganda 5000 60000 55000

Grain Handling / Bulking Capacity - Beans Before After Increase Kenya 6300 180000 173700 Uganda 10000 30000 20000

8.2 Success Stories- Employment Creation

8 7 6 5 4 3 2 1 0 Before After Kenya Uganda

8.3. ILLUSTRATIONS OF CROSS BORDER SALES

Type of Grain Volume Bulked in MT Volume in US$ Volume sold in Mt Value in US$ Buyer

Bukusu ACE Byuvuhole traders Assoc

Maize Maize

15 20 9.1 20

2,009 4464 1635 4464

0.5 17.5 11.1 20

781 4911 3167 4911

Cross Busia border Across Rwanda Border Sudanese Border Rwanda Border

Friends Agro input Maize Dealers Byuvuhole traders Assoc Maize

9.1Lessons
The general view of all beneficiaries and collaborating partners is that the SSMATI project was a timely project which could not have come at a better time. focus on international standards targeting large buyers through improved quality of commodities and best practices learned through both training and exchanges. Improved storage practices led to reduction of losses to both farmers and Agro-dealers Grain quality issues and improved cross-border trade activities between Kenya, Uganda, Rwanda and Southern Sudan. Employment opportunities Agro-dealers have received very well the component of output marketing as additional source of revenue not previously engaged in. Most partners feel the project was a good pilot to be improved on with further funding focusing more capacity building and enlisting more beneficiaries.

10.1

Challenges

Procurement delays Uganda Scope of coverage More Training

xAgro-dealers xFarms xPost harvest handling

11.1

Recommendations

Facilitate AGMARK for 3-6 Months to recoup lost time during pilot period and monitor impact to optimize resources during period for consultation for support to Phase I of the Project. Facilitate AGMARK for Phase I Project for longer period e.g 3 years to provide sufficient tie to interact with the agro dealers and measure impact and sustainability of the model. Facilitate AGMARK to upscale the project to include more Agro dealers and farers in each of the countries and where possible expand to other COMPETE Program project areas on operations to expand and consolidate markets Facilitate AGMARK to institute a short term study on fundamental reasons for low uptake of available credit facility