One billion people around the world are still chronically poor. Agricultural growth and productivity remains central to poverty reduction, particularly in the poorest countries, where a large share of the population relies on agriculture and agribusiness for their livelihood.
Thursday, May 29, 2014
Monday, April 7, 2014
Combining caging and ponds: One company’s experience
An employee feeds fish in cages. Caging is one of the methods that is increasingly being adopted. PHOTO BY EDMOND TAREMWA |
Fish farming in Uganda is a viable business enterprise that continues to attract investment, both large- and small-scale, as it develops.
The advantages likely to be enjoyed by an individual farmer or business in Uganda are adequate water, good soils, a ready market, availability of feeds and skilled labour.
There are a variety of methods by which fish can be farmed. Some of these are caging, ponds, and tanks, among others.
Allen Kusasira, research development and extension manager of Source of the Nile Farm (SON), believes fish caging is the way to go in today’s tight business environment.
SON is located in Bugungu, Buikwe District along the shores of Lake Victoria. It has been in operation since 2006, has 89 employees, and farms fish in both cages and ponds.
Simple to operate
Though she acknowledges it is highly capital intensive, Kusasira also cites the advantages. “We operate at higher costs compared to other businesses since most items we use in our work are imported,” she says.
“Our business is a very simple one to operate as long as you do not put off any activity while at work. We hardly find any challenges, I must say, except as usual, the environmental factors that affect our work.
“Fish here reared both in ponds and lake water where over 30 grids have been constructed with each grid bearing over 10 cages,” says Hassan Muganda, one of the workers.
“The cages are in different sizes; the smaller ones contain around 2,800 fish each, and the bigger size contain around 18,000 fish.”
Kusasira explains, “Our biggest problem is water. For the ponds, the water has got to retain its natural colour, failure of which the fish will suffocate.
When the water in the ponds turns green, it fails the circulation of oxygen in the water, which can make the fish suffocate. Also, there is a problem of bad weather. Whenever there is drought, water tends to dry up and this limits productivity, ” she says.
Breeding
The initial stage involves carrying fish from the lake to ponds for breeding, which takes 21 days. The recommended ratio of male to female is 1:2, usually around 300:600 fish.
After breeding, adult fish is transferred to another pond as a way of separating them from the young ones (pictured).
With the above ratio, there would be a projection of 20,000 young fish after breeding, which are then transferred to the hapa (a cage made with nets) in which they are confined during that stage.
Feeding
“Feeding is the most technical part of this business because fish is fed according to its stage,” explains Hassan Muganda, “At the youngest stage, fish are fed on fry meal, a 45 per cent protein food. This is treated with a sexing hormone responsible for making them all female (which is the desired sex).
The second stage is fingerlings which feed on the same food. Juveniles, the third stage, are fed on the same but with 35 per cent protein content.
The last stage is table size or production stage and the protein content is 25 to 30 per cent. The other foods include crude protein, fat, ash and moisture.
With advance in technology, there are more efficient feeding methods, most noticeable is the demand feeder, a can-like machine placed in the middle of the cage or pond with a pendulum that the fish keep on striking as feed is cast in the water. There is also an automatic feeder, which is used for juveniles.
Business
Kusasira is a bit hesistant to speak about business. But she later reveals that they strictly invest in fish and have never diversified business despite the competition faced from lake fish because of the smaller fish size produced on the farm.
“In five years,” she anticipates, “We look forward to increasing our productivity, processing our own produce and capturing bigger markets.”
The market
Fish in this system is to a large extent sold within Uganda and is never processed. “We have not sold processed fish, apart from merely slicing it, and this reduces our operational costs.
What makes this business possible is that as you start it, you get your permanent customers to always buy your deliveries. We sell most of our fish in the local market and some to Rwanda and Kenya,” says Kusasira.
Building a strong farmers’ organisation
Kapchorwa farmers’ group overcomes setbacks, earns from coffee and matooke
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Members in the matooke garden. PHOTO BY ALLAN CHEKWECH |
In mid-2006, 40 farmers in Kongowo parish, Kaserem Sub-county, Kapchorwa District decided to work together under an association in a bid to boost their income. Now, eight years later, Kongowo Farmers’ Association is making returns on the initial investment.
When they started growing Arabica coffee, making a nursery bed was the first attempt. The group talked to a friend in Bulambuli District who gave them 4,000 seedlings.
Initially, though, a few people were committed to watering and taking care of the nursery bed. But, eventually, within that year, the seedlings were ready for transplanting. Then, in early 2007, the farmers started tilling the land. Since they were many, the work was made easier.
So, the spacing and application of fertilisers was done from an informed point of view.
Labu says when it came to picking the coffee beans, most members went to the farm; they were able to collect 3,500 kilogrammes in phases by end of the season.
Since the coffee beans need to be ground, all members participate in this in order to reduce costs. They also do the washing and drying together.
“At that time, coffee prices had fallen to Shs3,200 a kilo. So we earned Shs11.2m. The money was not much, each one got something and rest of the money was used to buy fertilisers and in maintaining the farm,” Rapkwalai says.
In the 2011 season, the group harvested 6,000 kilogrammes and at that time, the prices had increased to Shs4,200 a kilogramme. They garnered Shs25.2m in total.
“We hold meetings very often. Usually, when the produce is sold, we sit together, calculate the income and decide on how much to share and how much to keep on the association’s accounts,” Rapkwalai adds.
The study found that although almost half the agricultural workers across the continent are women and their productivity on their farms is significantly lower per hectare compared to men.
The report says agriculture has enormous potential to drive inclusive economic growth, improve food security, and create job opportunities for millions of Africans.
This first of its type report reveals deep rooted gender gaps in African agriculture, identifies factors holding back women farmers, and sets out concrete actions that policy makers can take to reduce inequality.
ONE Africa Director, Dr Sipho Moyo, explained, “We ignore this gender gap at our peril and ultimately at great social and economic cost. It is a real injustice to Africa’s women farmers and their families that women make up nearly half of the labour force in agriculture but, on average, produce less per hectare than men.
Friday, March 21, 2014
Grain Bulking the way to go for smallholder farmers
Objectives:
To develop sustainable value chains and reduce poverty by increasing smallholder farmers’ access to commercial staple foods markets.
Duration: February 2010 – May 2011
Geographical locations: Southern and Eastern Regions of Uganda, Western Kenya and Kigali, Rwanda.
Partners: Funded USAID COMPETE and implemented in partnership with UNADA.
SSMATI supported agrodealers in Southern and Eastern Regions of Uganda to aggregate surpluses from smallholder farmers and link the commodity to the formal markets in Rwanda and Kenya that are grain deficit countries.
Impact:
An alternative, more competitive, Market for Grain for small holder farmers was developed through the agrodealers Agrodealers in Kenya and Uganda were trained on grain bulking and were supported to improve storage facilities.
By the end of the project period these agrodealers had purchased 2,234 MT of grain valued at $ 502,000 from 14,566 smallholder farmers Supported agrodealers continue to provide market for surplus grain from farmers.
Thursday, March 13, 2014
From Farm to Table: Navigating Food Safety in China
Brady Sidwell is the Vice President of Corporate Development and Strategy of Asia Pacific Operations at the OSI Group. The OSI Group is a world leader in providing quality animal protein to the global food industry. They have a presence in sixteen countries, and have been operating in China for over twenty years. In this blog, Sidwell discusses food safety crises in China, as well as strategies to effectively overcome them.
Over the last ten years, China has played an increasing role in world agriculture trade, ranked as the fourth largest agricultural exporter and the second largest importer in the world. Yet, they struggle with several obstacles to agricultural modernization, including changing tastes and a demand for imported food, resource scarcity, a population shifting from rural to urban, as well as food transport and food safety.
Over the last two decades, OSI has witnessed many of the trends and obstacles in the Chinese agricultural market, food safety being one of the most visible in the media. As a private company in a foreign country, we’re setting an international standard for best practices in food safety.
OSI Group in China
OSI has had a presence in China for twenty-one years now – just last weekend, we opened our ninth and tenth facilities. Our national footprint in food processing is extensive, producing poultry, beef, pork, as well as vegetables and dough. Currently, OSI is the largest protein supplier to quick service restaurants in China. By the end of this year, OSI will employ about 6,600 people in China, and we’re on track to process about 300 million birds in our poultry vertical integrations by 2015.
The Root Food Safety Issues in China
At the core of most food safety issues in China is lack of control over the food supply chain. Typically, the product you see in a restaurant or in the grocery aisle has changed hands several times, from the grower or producer, to the packer, to the transporter (usually several, depending on the distance the product has to travel), to the store or restaurant. Each of these entities is usually a separate business, with different standards and procedures. This means there is rarely an overarching body overseeing these transactions and ensuring there are no ‘breakdowns’ along the way.
Integrate Your Supply Chain
The best way to eliminate the potential for food safety crises is to gain control over your supply chain, eliminating the number of middlemen between China’s fragmented farm base and the end consumer. As an example, OSI Group has very consciously made several large scale investments in vertically integrating.
We’ve developed a closed system where we control everything, from the parent stock, to the hatchery, to the broiler farms, to the slaughterhouse, all the way to the distribution. It’s a system that’s worked well to protect both our and our customer’s brands, and we’re expanding our efforts to be more vocal in showing other agricultural production companies how these models can help ensure with food safety.
Control Your Own Supply
OSI farms its own product as well as purchases from a network of producers which must comply with strict audit criteria rechecked regularly. We ensure that our suppliers are approved not only around quality, food safety and corporate governance, but also in aspects like animal welfare and employee code of conduct. We work hard to set the standard for best practices and maintain that standard throughout the organization.
Support Your Growers
There’s currently a void in China around extension of technical know-how and support for agricultural industry best practices, so private companies like OSI are filling the void. For example, we provide agronomists for our regional and local vegetable growers, who work directly with farmers on irrigation and planting, choosing seed varieties and pesticides, testing water for potential contaminants. In terms of poultry and beef production, we provide support with genetics and feed rations. Essentially, OSI acts as an extension agent to improve the quality of our supply. We believe that if our suppliers are strong, we’re strong.
Media Messaging
Whenever there’s a widespread food safety crisis, the population gets bombarded with a lot of messages from the media, many of which are conflicting or incorrect. For example, when the bird flu epidemic broke out, people stopped eating poultry even though you can’t get sick if it’s cooked properly. We work closely with officials and media services to get audiences accurate information to help guide their choices.
Think Long Term Strategy and Execution
Food safety is a major long-term opportunity because we can control our environment, we can operate independently, and we can do it at a scale that makes it possible for us to serve a national customer. The key factor is execution. Anyone can put together a strategy on paper, or make a forecast about how quickly we can get to a certain cost point. But these are huge operations that require a significant amount of skilled labor. Invest in education, support services, training, and streamlining processes – these are the factors that will bring one’s strategy to success.
Educating the Global Agribusiness Entrepreneur in China
Wayne Batwin is the President of PRIME Market Access International, a management consulting firm. He has more than 34 years of experience in international food and agriculture research and policy, marketing, and market development. Batwin recently retired from the Foreign Agriculture Service of USDA, where from 2006 to 2010 he was the Director of Agricultural Trade Office at the U.S. Consulate in Shanghai, China.He is a presenter at the upcoming Global Agribusiness Entrepreneur Symposium Series in China.
China has an incredibly rich agricultural tradition; Chinese farmers have been cultivating crops for thousands of years. However, radical changes in the last century have had a profound impact on agricultural production, and there are several constraints that the Chinese agricultural sector is facing that impacts their ability to modernize agribusiness today.
Keep in mind that China has 1.35 billion people to feed every day. Compared to the U.S., China has over 4 times the population but only 75% of our cropland. Adding to this pressure are dietary changes (mostly towards higher meat consumption) as a result of substantial economic growth over the last two decades. Chinese consumer trends are changing among the growing middle class. Furthermore, geographical and logistical challenges abound in China. Most of the population lives along the east coast in major urban centers, while most of the agriculture is spread throughout the country. The lack of water and other agricultural inputs is also having an impact on agricultural production, especially in the northern and western regions where water is scarce. Lastly, land usage and ownership are serious social and economic issue that needs to be reorganized before China can truly make the transition to a modern agricultural system.
The Critical Need for Education
As many of these issues pose serious obstacles towards modernization, Chinese agribusiness is still making headway. Reforms have taken place to allow some private sector entrepreneurs to create businesses that meet current demand. Inroads have been made to create larger tracks of land to grow and harvest a larger quantity of food products, and some advances have been made to transportation systems that allow products to be delivered to the consumer in a timely manner.
These changes have been accomplished by individual entrepreneurs relying on their own ingenuity and personal connections to get their products to market. But this is not enough given the kind of demand the industry is facing today. Many of these entrepreneurs work tirelessly on their own businesses and lack training in what is needed to scale their businesses within the agricultural sector specifically. They are hungry to understand what it takes to be part of an expanding industry and to grow their businesses in accordance with this increasing demand. They want to know the kinds of agricultural mechanization it will take and the kind of cooperation that goes into building a large-scale agricultural sector. These entrepreneurs are successful, but they don’t yet have access to ongoing training that is specific to agribusiness. This kind of training has not been readily available in China. Although there are exceptional universities in China, the kind of continuing executive education that’s common in western countries is very unusual in China.
According to Mr. Edward Zhu, CEO of the Chic Group, agribusiness education reform requires that applied education needs to be incorporated into higher educational systems and developed to focus on “learning from practice” with hands-on training in agronomy, agri-business management and world’s best agricultural practices. He explains, “We must advocate importing the world’s top agri-businesses, agri-universities and training institutes to speed up the learning curve.” In response, UC Davis Executive Education has taken the reigns in addressing this critical need.
UC Davis Responds
Ranked #1 in the world for teaching and research in the area of agriculture, and world renowned in the areas of management and economics, UC Davis is uniquely positioned to leverage the rich expertise from its faculty to deliver compelling executive education curriculum. Moreover, its agribusiness symposium series features industry experts with on-the-ground know-how, who can present lessons learned in the U.S. that can be applied to the Chinese market. UC Davis Executive Education successfully identified a critical business need and pooled the resources and connections to address significant knowledge gaps at the leadership level of China’s agribusinesses.
Having worked closely in the agribusiness sector in China for many years, I’m convinced there’s a real need for this type of education. We’re starting to see a lot of buzz and excitement in response to this program, and our hope is that we can have a key impact in modernizing agribusiness in China.
Global Agribusiness Series: Opportunities in China
Colin Carter is Distinguished Professor of Agricultural and Resource Economics at the University of California, Davis and Director of the Giannini Foundation of Agricultural Economics. His research interests include international trade, futures markets, and commodity markets. In this blog, he discusses China’s role in world food markets, as well as opportunities for the US in Chinese Agribusiness.
Since joining the World Trade Organization in 2001, China has played an increasingly greater role in world agriculture trade, and has grown to become the world’s largest agricultural economy. It’s currently the top producer of various food products, including pork, wheat, rice, tea, cotton, fish, and tomatoes.
To help put their role into perspective, China has been ranked as the 4th largest agricultural exporter and the 2nd largest agricultural importer in the world. Specifically regarding the U.S., China is the number one market for agricultural exports (including soybeans, cotton and corn), and it’s the 3rd most important supplier of agricultural imports for the U.S (including products such as apple juice, dog and cat food, and canned citrus). Currently, the U.S. has a trade surplus with China in agricultural products, which means we sell more to them than we buy.
Major Challenges for Agribusiness in China
One of the major challenges facing China’s agriculture is a transition to larger-scale farms. Right now, the farms in China are very small, approximately one acre in size. One-third of the Chinese labor force is farming, and most of those individuals are relatively poor compared to residents in urban areas. It will be a major challenge and social issue for the government to facilitate allowing farms to get larger, more efficient, and more profitable.
To us, it might seem like a disproportionately high percentage that one third of the population is farming; however, just recently the population in the cities has exceeded the population in the countryside, which is a major shift. Going forward over the next ten to twenty years, this trend towards massive urbanization will continue. There are major discussions going on regarding the creation of farm cooperatives and land ownership reform to increase the size and scale of existing farms. Ultimately, China can’t modernize its agricultural production unless it makes the transition to larger scale farms.
Another obstacle is dealing with resource scarcity – primarily water, because a large share of Chinese agriculture uses irrigation. Another is the environmental impact of agricultural production in China. They’ve expanded food production quite rapidly, but have done so using very intensive production techniques, such as heavy use of chemical fertilizer. Management of natural resources is key including the use of chemicals and controlling the pollution externalities associated with agricultural production.
Opportunities for the U.S. in Chinese Agribusiness
Again, China is the number one market for agricultural exports, in the U.S., so the opportunities are tremendous, and not only in terms of importing and exporting agricultural products. A few examples:
- Technology transfer: China faces major challenges in food safety. The way the U.S. produces, processes, handles, and transports food is much more advanced and environmentally friendly, creating an opportunity to transfer this technology to Chinese markets. Investment is critical on a global level because it’s about world food safety, not just about food safety in China.
- Changing tastes: A growing urban middle class with higher income has led to a higher percentage of disposable income. Because of China’s food safety issues, this population is gravitating towards higher quality imported food and organic food, which offers multiple opportunities for U.S. exporters.
- Talent: Larger Chinese agribusinesses are having trouble retaining talent – finding and keeping people with the know-how and technical savvy to help the country modernize agricultural practices. Americans with experience will find their skills in high demand in this emerging market.
- Trade: With growing urbanization, the country is seeing significant changes in food consumption, primarily greater demand for protein in the form of meat products like pork and poultry. The U.S. has a comparative advantage in producing and exporting animal products.
UC Davis Executive Education is leading the way in this area, launching a program bringing the business of agribusiness to China. Importing education on these topics to facilitate agricultural modernization.
Professor Carter is a presenter at the upcoming Global Agribusiness Entrepreneur Symposium Series in China, co-hosted by UC Davis Executive Education and the CHIC Group in Shanghai. Click here to learn more about program details, and click here to read a recent news release on the program.
UC Davis Executive Education develops custom education programs for leaders and executives. For more information on building a customized program, please contact Managing Director Wendy Beecham.
Th Global Agribusiness Entrepreneur symposium series in China
Throughout China today, the agricultural industry is transforming its traditional farming techniques towards modern mechanization. For all industry practitioners at every level of the agricultural supply chain, there is a need to learn practical knowledge about the latest techniques and technologies. China’s agricultural businesses need to scale up in order to meet the demands of a growing and discerning customer base.
We are pleased to announce the launch of our new symposium series in China, specifically designed to address this need. In assembling this program, we’ve taken our signature approach: identifying key industry challenges nationally and globally, and providing hands-on education using sustainable learning techniques from world class experts who will present a practical information about core issues.
The Program
This program has been designed to enable senior agribusiness executives to actively participate, learn, and put their new knowledge to use in their businesses. Each participant will complete a business “growth plan” that can be immediately applied to their business contexts.
Before, during and after the sessions, participants will be provided with background material to become familiar with the discussion topics, as well as the action plan templates that will allow them to implement what they’ve learned back at the office. Program topics will include:
- Global opportunities for trade in Chinese agricultural products and services
- Investment and financing opportunities and strategies
- Business acumen to grow and scale your business
- Hiring and keeping the best talent
- Best practices in food safety
- Successful global organic farming
Experts with a Capital “E”
Program content will be delivered by leading industry and agricultural faculty experts with practical knowledge and proven track records of success in their fields. These experts bring deep knowledge and insight about the China, U.S., and global market place to the table. Experts include Keith Schneller, Director of UC Agricultural Trade Office in Shanghai, Colin Carter, Distinguished Professor of Agricultural Economics at UC Davis, Wayne Batwin, President, Prime Market Access International, and Juergen Voegele, Director, Agriculture and Rural Development Department, Sustainable Development, World Bank.
Perhaps the best example of our panel of industry leaders is Charles Sweat, CEO of Earthbound Farm. He will lead attendees through an interactive case study, telling the story of how Earthbound Farm grew from a family owned business with two acres to an international success in organic farming.
The case study will cover details of how the owners selected their site and determined the best crops to grow; how they financed their business; how they added mechanization to grow their business; how they dealt with a significant food safety issue that affected an entire industry; and how the business was transformed to focus on the organic produce sector today.
If you’re involved in the agribusiness sector and want to explore program offering at the UC Davis Graduate School of Management, Executive Education, please contact Wendy Beecham today.
Wednesday, March 12, 2014
Government urged to change farmers' attitudes
You win with farming than sports betting
Thursday, March 6, 2014
Agriculture and agribusiness: Youth dynamism & turnaround in Nigeria (1)
- High level of poverty and corruption, resulting in a desire for quick money.
- Unfavorable government policies as it relate to land acquisition and funding for agricultural purpose particularly for young agriculture entrepreneurs or small private agribusiness farms.
- The large gap between the mindset perception of success and opportunities of post academics in white-collar jobs (Private & Public), business etc.
- Lack of access to proper information and orientation to accept agriculture as the new revenue stream.
- Inadequate infrastructures
- Lack of entrepreneurship possibilities, incentives & training among majority of youths
Cultivating youth entrepreneurship through agribusiness
Highlights
- To date, the programme had been able to train 556 youth in 19 districts across Kenya in business skills acquisition and entrepreneurship development, as well as elevating these youth trainees to be enterprise development agents
- To date, the programme had been able to train 556 youth in 19 districts across Kenya in business skills acquisition and entrepreneurship development, as well as elevating these youth trainees to be enterprise development agents