FOOD FOR THE HUNGRY ASSOCIATION CAP DELGADO PROVINCE MOZAMBIQUE VSL Concept for Agricultureand Nutrition Outcomes MAPUTO SEPTEMBER 2011 FOOD FOR THE HUNGRY ASSOCIATION CAP DELGADO PROVINCE MOZAMBIQUE VSL Concept for Agricultureand Nutrition Outcomes MAPUTO SEPTEMBER 2011

OVERAL PROGRAM GOAL (Agriculture, Health and Nutrition, Cmmunity capacity Building) GOAL: Food insecurity reduced in vulnerable populations of 3 districts in Cabo Delgado Province, through increased food production, acess and utilization.

General objective of the Agriculture Program “Protect and enhance livelihood capacities of vulnerable farming households via agricultural production and marketing”

Where we work The program is 3 districts in cabo Delgado Province-Northern Mozambique viz: NANGADE MOCIMBOA DA PRAIA E PALMA,

Agriculture component Two components: 1.Improved agricultural production 2.Promotion of Vilage Savings and Loans

Challenges to commercialization in the project area Background to the area we work: Situated in the Northern most part of Mozambique Poor infrastructure Kms from major commercial town of Nampula Commercialization of small holder produce in Cabo Delgado Province Mozambique, is an area that is todate not yet well developed. The large buyers are mainly based in southern provinces and are usually not prepared to travel long dictances in search of produce that they are able to acess locally. Quantities sold by individual farmers have also been too small to justify transport to and from the North.

VILLAGE SAVINGS AND LOANS (VSL) AND HOW IT MAY IMPACT ON CROP VALUE CHAINS VSL involvement: With the above challenges, FH MYAP program through the Village Savings and Loans component, decided to intiate a system that would agregate produce to attract large buyers to the project area. A number of strong Savings Groups were approached and encouraged to come together, creat a small fund to initiate the buying of produce that they would then sell to large buyers at a small profit. The groups formed marketing nucleus now refered to as “MARKETING FORUM”.

VSL involvement cont: These forum started by putting aside part of their savings to construct temporary stores for the purpose of buying and storing produce on transit. FH then helped contact a number of large buyers who were then ready to come in to buy and transport significant quatities of produce that had been brought together by members of the various farmer associations.

The process adopted in establishing the Forums: Each district is geographically divided into 3 zones for purposes of implimentation of this activity (A,B,C); Each zone initiated the formation of a number of forums. The actual number is dictated by produce available, distances and capacity of the associations; Each forum starts off with the Savings Volunteer (Animadore) as convener who later hands over leadership to one elected Association President once the basic Forum structure is complete; Each Association involved in the marketing process sends in one representative to the Forum:

Illustration of the structure (example) Association Association Association Association Forum Forum

Facilitate the movement of produce out of the zones Help aggregate small quantities of harvests and to enable the FORUM management negotiate effectively with the buyers. The centres through aggregating produce are now able to operate on economies of scale. This is the beginning of a future larger association building and will be encouraged to establish a permanent system. Currently both VSL and non VSL associations are involved. Why forums?

Where does FH come in? FH currently supports the Forums in contacting buyers at peak sales period and providing information on the following: Estimated quantity of produce in each district, Prices currently operating, Storage capacity available/quantities stored, Location of the various stores, Quality of produce. Direct forum association contacts is the final goal

How has this impacted on crop value chains-e.g sesame One of the biggest constraints farmers in Cabo Delgado are facing is acess to market among other logistical challenges. VSL has directly impacted the tail end of the sesame value chain in the project area thus stimulating increase in production and introduction of comparatively large scale marketing.

Typical value chain for one of the key crops

Savings status and sesame sales 2010 September: Correlation between level of savings, quantities sold and value

Some latest commercialization results- Mocimboa Da Praia district Sept 2011

MUITO OBRIGADO KANIMAMBO TAKUTA KIOCHRRU KIOCHÚCURRU