Metrics for Marketing Workshop Findings From the Farmer Impact Surveys Maputo, Feb 15th 2017 Findings From the Farmer Impact Surveys Sergio Macuacua

1. Introduction Moz target offers services technical assistance in design and implementation of Agribusiness. The core business is Socio Economics Studies, Monitoring and Evaluation Services and Training. In collaboration with Fintrac, Moz Target has been doing M&E work under FTF P4I Activities. In 2016 – Moz Target Service, conducted: 2 data verifications on inputs sales, access to technical assistance, market, or microcredit through iDE’s agent network. 4 Farmer Impact Studies of projects, implemented by CLUSA, iDE, ETG and Opportunity Bank.

2. Client profile Ages of respondent farmers 16-85 years; Average 35-40

3. Findings on Seed Supply 3.1. Seed Purchase Fairs are a very powerful way of reaching out to farmers: Most (60-71%) farmers said they heard about certified seeds for the first time in the seed fairs. Agrodealers also reported that they are mainly supplied and sale at trade fairs; Others heard from demonstration plots-field days, fellow farmers; public extension agents; Radio has also great potential for seed and farming techniques information dissemination;

3. Findings on Seed Supply 3. 2 3. Findings on Seed Supply 3.2. Certified Seeds Performance –feedback from farmers Farmers report that are getting higher germination and yields, as result of using certified seeds combined with good agriculture practices; Few interviewed farmers said they were still unsure about the benefits of using certified seed, since they got equal or lower yields. These farmers’ comments recognize that they experienced failure mainly due to insufficient rain;

3. Findings on Seed Supply 3. 3 3. Findings on Seed Supply 3.3. Yields Using Certified vs Non Certified Seeds Yields Before and After Project Intervention (phone survey) Crops Yields (Kg/Ha) Average Increase (Percentage) Before Intervention After Intervention Sesame 600 1,000 67 Cowpea 650 1,090 68 Pigeon Pea 1,500 50 Soy Bean 835.7 1,480 77 Sugar Bean 380 660 74 Groundnuts 100 400 300 Maize 716.7 1,875 162

3. Findings on Seed Supply 3.4. Challenges The main challenges reported by farmers concerning access to certified seeds include: Timing of the seeds supply vs planting season (unpredictable rains); Distances to reach seeds stores and fairs sites from some villages was reduced but its still a challenges for some farmers (average 9-17km); Shortages of certain types/ volumes of seeds from agrodealers. The farmers interviewed consistently reported that they were unable to access fertilizers and pesticides, through agents, or at seed fairs. Agrodealers often limit their stocks of certified seeds, presumably based on their cash flow.

3. Findings on Seed Supply 3. 5 3. Findings on Seed Supply 3.5. Willingness to purchase certified seeds Farmer comments indicate that they are willing to pay for certified seeds and other inputs as long as they get them on time. Some farmers stated that they would be more willing to purchase seeds if they could access seeds on a credit basis and then pay back in either cash or commodity after harvest. Market access opportunities for smallholder farmers are key to convincing farmers to invest in improved inputs such as certified seeds.

4. Findings on Financial Services and Loans Out of 97 farmers interviewed, 91 declared that before FTF P4I intervention they had no bank accounts and until the survey date they had no other accounts. Out of 97 farmers, 44 reported having received and used agriculture loans through FTF P4I intervention and 53 said they applied for loans and were still waiting for loan approval or disbursement. Challenge: limited penetration of Vodacom, the mobile operator offering M-Pesa; Of the interviewed farmers 6 use Vodacom, 3 use Mcel and the vast majority use Movitel (91%); Farmers use M-Pesa for: transfer to family members or others, buy agricultural inputs, save money, and buy food or other items.

5. Findings on Financial Services and Loans Most farmers invested the loans in the production of sesame, maize, and soy. Sesame, soy, and cow pea are mainly cash crops, while maize is a staple food, and farmers usually sell the surplus. Working with farmers groups is proven to be good practice Results of the survey show that farmers invest the loans in: Purchased agricultural inputs (seeds, chemicals) Paid productive services (ploughing, spraying, harvest) Postharvest activities (threshing, bagging, transport)

6. Findings on Loans - Challenges Some farmers perceived the interest rates as high and the amortization time as short: They proposed that the bank should be open to renegotiate and extend in case of failure due to external reasons, such as weather. 34% of farmers who received loans reported they had low yields and thus low incomes as a result of insufficient and irregular rains. Farmers proposed that assistance should be extended to ploughing equipment, and would like to be assisted with tools and setting small-scale irrigation schemes. Farmer suggest that Bank officials visit farmers’ fields during the crop cycle. Where applicable, farmers should be advised to adopt irrigation solutions.

7. Grains Trading About smallholders (51 percent) report selling their products to middlemen, who aggregate, and then deliver to the big traders. Only 8 percent of farmers reported having sold their products directly to big traders and 13 percent sold to others, which includes others in their village. In general, farmers get better prices when they sell to the bigger traders (at their posts or village headquarter warehouses;

8. Data quality issues: List and details of clients (name, residence, contact); Most clients contacts were off line? Timing for collection of certain indicators (Eg. Yields, price)? Questions farmers hardly answered: yields (before); Methods for yields estimates (eg. farmers estimates vs crop cut)? Sampling: do we need or not to compare beneficiaries vs non beneficiaries?