Who We Are The International Institute of Tropical Agriculture (IITA) is an international agricultural research organization focused on addressing hunger,

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Presentation transcript:

Who We Are The International Institute of Tropical Agriculture (IITA) is an international agricultural research organization focused on addressing hunger, poverty, and degradation of natural resources in the tropics. Our award-winning research provides solutions to nourish Africa.

Business Incubation Platform Bridge between research and dissemination

Business Incubation Platform GoSeed NoduMax Aflasafe AgriServe IYA production Microbiology Lab Established in 2013, IITA BIP translates relevant findings from R4D into commercially viable products to serve as a better mechanism for technology transfer from advanced agricultural research to the private and public sectors, and then on to farmers.

Vision Business Incubation Platform (BIP) Create jobs with the support of new technologies Make IITA’s technology known and disseminate it Generate income to make BIP sustainable Fund IITA’s ground-breaking research to nourish Africa

Business Incubation Platform (BIP) Rest of Africa Funding Investors BIP/IYA Nigeria CEO Outside Africa New Products &Technologies Sales & Marketing Bus. Development Finance Team Man.Team Communication Legal support & Technology transfers Business analytics & due diligence Agriserve Aflasafe NoduMax GoSeeds Tissue culture Youth production projects Outgrower & consultant project Soil fertility & Consultancy

Safe crops, better health, higher income Aflasafe Safe crops, better health, higher income Groundnut and maize colonized by Aspergillus flavus Aflasafe maize in poultry feed reduces broiler mortality by 40% (left) vs. farmers’ feed (right)

Forecast for Year Five (2018/2019) PARAMETERS VALUES Number of implementers 29 Expected number of farmers 34,221 * Expected average hectare/farmer 1.34 ha* Total hectares of land to be treated 45,856 ha * Expected average yield/farmer 3.0 tons* Volume of maize expected to be produced 137,568 Mt * Volume of maize expected to be aggregated for sale (60% of the annual total production) 82,541 Mt * This pilot project will create a niche market for aflatoxin-free maize that will deliver three critical preconditions that will enable further development of the market. Firstly, the efficacy of biocontrol will be proven “beyond the lab” as a commercially viable product. Secondly, broad-based awareness of the health impacts of aflatoxin will be stimulated amongst small-holder farmers, building momentum around the issue. Thirdly, a critical mass of certified maize will be introduced into the market. The combination of these three preconditions will “create the space and momentum” for other critical actors, such as the private sectors to act to ensure the market continues over time. Successfully delivered, the AGPM pilot project will create an initial market for other actors to begin to reinforce with other necessary interventions over time. * Based on a forecast

Model calculation for a sustainably supply chain pricing approach

NoduMax New legume inoculant developed by IITA BIP

GoSeed Empowering seed companies to improve farmers’ access to quality seeds for higher yields and incomes

AgriServe Providing commercial agricultural consulting services, farm management and access to IITA’s market-leading technology

Maize outgrower scheme Cost vs. Returns on a per ha basis

Maize outgrower scheme (cost vs. return) Maize Scenarios TCOP (in 1000’s) Has TCOP ($) Selling price/kg (₦) Yield per ha (kg) Yield (t) Revenue ($) Revenue (₦ in thousands) BIP Management Charge (in 1000’s) Agripreneur Stipend (in 1000’s) Profit ($) Profit ( in 1000’s ₦) Profit margin ROI % OPV only 228 1 85 3000 3 699 255 57 4,320 (12,085) - 4,350 - 17.06 - 1,903 OPV + Aflasafe 11,730 50 32,137 115 150 47,260 17,250 2,932 (4,813) - 1,732 - 0.10 - 15 Hybrid only 5,815 25 15,932 7000 175 40,753 14,875 1,453 9,128 3,286 0.22 Hybrid + Aflasafe 3,579 15 9,805 105 33,082 12,075 894 9,115 3,281 0.27 92 Target crops (other) Yam Soybean Plantain

Cassava outgrower scheme (cost vs. return) Commodity TCOP Has Selling price/Ton (₦) Roots Selling price/ bundle(₦) Stem Yield Scenarios/ha Yield (bundles/ha) Yield (Ton) Roots Yield (bundles) Revenue (₦) Roots (in 1000’s) Revenue (₦) Stem (in 1000’s) BIP Management fee (in 1000’s) Agripreneurs Stipend (₦ in 1000’s) Profit (₦, in 1000’s) Profit margin ROI % Cassava 5,160,000 20 15,000 300 Normal 400 6,000 1,800 1,290 4,320 - 2,970 - 0.50 -58 Expected 25 500 7,500 4,980 0.66 97 Projected 30 600 9,000 6,480 0.72 126

AgriServe – Consultancy for Sustainable Agriculture Vertical integration (backward) of the value chain Land and soil suitability assessment Land capabilities for implementation planning – land clearing and other Design of farm or outgrower scheme – business plan Design and production planning – Variety selection, Mechanization Good agricultural practices and fertilizer recommendations Crop monitoring Establishment & management of outgrower scheme Waste management and power supply (biogas) Crop production Aggregation / storage / preprocessing – intermediate goods Processing Marketing & Marketing After Sales Services

Who are the IITA youth Agripreneurs? Agripreneurs are group of talented youths that are selected through National youth service corps (NYSC) who see agriculture as a business. Visionary Vibrant Energetic Proactive Result driven Agripreneurs can be actively involved in outgrower schemes mentioned before

Youths will create an independent youth agribusiness enterprise Agripreneurs Income Individual Level That agriculture business can provide employment for youths moving our income from $0  $200  $700  $1,000/month in 3 years. To be able to earn $12,000/year. Institutional Level Youths will create an independent youth agribusiness enterprise This model will be replicated in the IITA hubs and in SSA countries

Commercialization of products towards a target group 4 Target groups: (Which one and how to reach them?) The small-scale subsistence farmer with a small hectarage producing food for his/her family. First adopters: The farmer who produces at a larger scale crops for his/her own family consumption and for sale. The distributor who sells products to different market segments. The Aggregator/processor who buys the raw products from the farmers to be sold to processors or markets.

Smallholder farming – targeting smallholders Smallholders play a critical role in our global food system. Numbering more than 450 million men and women, smallholders comprise the vast majority of our planet’s farmers. In fact, they are responsible for producing 80 percent of the food that helps feed families in the developing world. INFORMATION COPIED FROM SMALL HOLDER PROGRAM BAYER Mr. Lino Dias The 35% Not all smallholders are not alike. But that is simply not the case. Smallholder farmers are an amazingly diverse population, requiring nuanced, customized and focused approaches

Sustainable impact - commercialization How to develop a commercialization strategy to create impact but also sources of new funding for IITA research Suggestion: 10 % from the benefit of farmer gains from the IITA developed technology or product should be used to set up a sustainable commercial system which also is present after the project funding has stopped. Include Social/economical reviews/surveys for defining the right target group and how to approach them. BIP should be involved in all projects/products the moment the project goes into a commercialization strategy. This can be direct or indirect via a consultant BIP should take the lead in the commercialization not research. This means BIP also should manage the commercialization budget.

Thank you!