IFDC AIARD Annual Conference 2011 Agro-Dealer Development: Developing and Emerging Markets by John Allgood - IFDC

IFDC Raw Material Supplier Basic Manufacturer Broker/ Importer WholesalerDealerFarmer Agriculture Input Market Value Chain (Fertilizer) Agro-Input Dealers provide the final value chain link with farmers. The volume of products handled by agro-dealers is very high. In 2009, farmers worldwide used 162 million mt of plant nutrients or ~425 million mt of fertilizers.

IFDC Key Functions of Agro-Dealers  Product Supply—Timely, Quality, Package Size  Promotion/Education—Advisory Services on Proper Use, Safety Issues, Post-Harvest  Pricing—Price Determination  Physical Distribution—Transportation, Storage Macro-Environmental Factors—Government Policy, Literacy Rates, etc.—Influence the role of Dealers

IFDC International Fertilizer Price Trends

IFDC Agro-Dealers’ Influence on Fertilizer Prices at the Farm Level Is Low Source: IFDC 2000

IFDC The IFDC Approach to agro-dealer development is within the overall organizational philosophy on agriculture development which encompasses two basic premises:  Improved use of agricultural inputs such as fertilizers, high-quality seed and crop protection products is necessary (+ water) to sustainable improvement in agricultural productivity per unit of land.  Efficiency in resource utilization can be maximized by employing and market-oriented approach to development. GOAL: To foster the development of agro-dealers so that they may effectively service farmers’ immediate and long-term agricultural input needs.  Increased agricultural productivity/improved economic returns to farmers from input use.  Long-term economic gains to farmers.

IFDC Key Factors in Design of Interventions Program Goal/Objective  Dealer Development Is a Major Component  Dealer Development Is Primary  Dealer Development Is Complimentary Situation Analysis  Stage of Development of Agro-Input Markets  Marketing Environment: Macro and Micro  Role of Public/Private Sector  Stakeholder Interest Resource Availability  Funds  Program Duration  Opportunity to Leverage Resources

IFDC Some Examples of Dealer “Shops”

IFDC Uganda Dealer

IFDC Nigeria Dealer

IFDC Afghan Dealer

IFDC Bangladesh Dealer

IFDC Key Focal Areas and Intervention Activities  Technical Knowledge Transfer  Business Acumen Development  Business Linkage Development  Strengthening Support Systems Create the Opportunity for Systemic, Market-Led Development

IFDC Technical Knowledge Transfer Improve Dealer’s Knowledge and Understanding of Agricultural Input Products  Field performance characteristics  Safe use, handling, storage  Proper application = best performance & + economic returns  Problem analysis

IFDC Technical Knowledge Transfer (Continued) Capacity Building Interventions:  Classroom-type training  Collaborative field demonstrations and field days  “One-on-one” technical support Promotion Support to Build Demand  Demonstration  Point-of-purchase materials  Promotional giveaways  Trade shows/agricultural fairs

IFDC IFDC-Agri-Input Dealer Training in Malawi

IFDC

Business Acumen Development  Strategy: Improve dealer’s knowledge and skills for business management Management Marketing – planning Finance and accounting – Recordkeeping and understanding total cost of “doing” business Credit management  Capacity Building Interventions Classroom-type training Direct technical assistance Provide resource materials – handbooks, wall hangings, technical, leaflets

IFDC Business Linkage Development  Strategy: Develop and strengthen business relationships along the value chain Logistics planning Market information Technology introduction Credit opportunities  Capacity Building Interventions Classroom-type training/workshops Study tours/trade missions Agricultural fairs Public-private partnerships Trade/market intelligence bulletins

IFDC

Strengthening Support Systems Strategy: Improve the public and private support systems that impact dealer performance  Systems That Impact Dealer Performance Technology introduction Market information Policy (policy advocacy) Education Credit  Intervention Policy analysis – Constraint identification/recommended reforms Associations Training trainers Credit

IFDC Farmers Training

IFDC Monitoring and Evaluation Ideally, each intervention should include an M&E component to assess:  Progress in Achievement of Performance Targets Training Programs Completed Dealer Handbooks Developed/Disseminated Wall Hangings Prepared Disseminated  Progress In Achievement of Results Number of New Dealers Established Improved Advisory Services for Farmers Geographic Extension of Dealer Networks to Remote Areas  Impact Increased Competitiveness Increased Sales

IFDC Key Lessons Learned  Understand the challenge – “One approach serves all” philosophy doesn’t work  Emphasize stakeholder participation – public sector, NGOs, PPPs  Direct, one-on-one assistance and group participation with hands-on interaction are particularly effective in agro-dealer training  Continuity and direction of support are crucial

IFDC “…agriculture is our wisest pursuit, because it will, in the end, contribute most to real health, good morals and happiness.” Letter from Thomas Jefferson to George Washington

IFDC Thank You