Preliminary Results on Smallholder Irrigation Technologies International Water Management Institute (IWMI)

Background Information Objective: to Identify factors that influenced the adoption of WLTs (particularly motor pumps) by smallholder farmers Case studies: Amhara, Oromia, SNNP and Tigray. Data collected from 800 (200 from each Region) randomly selected farm households.

Why Smallholder Irrigation Technologies?

1.Initiated and financed by smallholders themselves 2.Owned and individually or by small informal groups 3.Can irrigate small plots that can optimally managed by the smallholder 4.Need relatively less capital

5. Small farmers get opportunity to produce dry season cash crops for market

6. Can be used in diversified water sources (rivers, lakes, reservoirs, shallow wells, ponds), Can be Integrated with Watershed Management

7. Offer Opportunity for female farmers to support their family

8. In many African countries the smallholder private irrigation is more important than public irrigation in terms of number of farmers involved and the value of the production. Type – technology No. of farmers Area under irrigation Investment costs USD per ha Main crop Public irrigation schemes 11,0007,185 ha10,000 – 15,000Rice Small reservoirs25,0006,000 ha6,000 – 15,000Rice/vegetables Motorized pumps160,000120,000 ha Vegetables Buckets, watering cans 335,00066,000 ha<25Vegetables Treadle pumps< 100< 20 ha500Vegetables

9. Provide additional income when farmers need it most (some cross-country examples) Burkina Faso, – 94% of vegetable production is sold at local markets, generating revenue of US$350 per 0.1 hectare. Vegetable production increased in years when cereal yields were low (DSA 2005). Ethiopia, – On average, generates revenue of 1586 dollars/ha – High labor employment/ha – Lead to input intensification Ghana, – smallholder irrigation – primarily dry season vegetable cultivation - adds between USD175 to 840 to household income.

10. Untapped potential exists (FAO Estimates) ???

Some facts on the Ground Type of Technology AmharaTigray supplyon Stock%supplyon Stock% Geo-mebrien NA Treadle Pump Drip Motor Pump Rope & Washer Source: Amhara & Tigray Bureaus of Agriculture (2010)

Region Household is aware of motor pump Household has adopt motor pump yesno%yesno% Amhara Oromia SNNP Tigray Are Smallholders Aware about Technologies?

Cost of investment Cost ComponentAverage Average CIF Value of water pump (Birr)4668 Average tax per unit of water pump (Birr)1832 Average purchase price/water pump (CIF+Tax) (Birr)6500 Tax contributes36%  Customs duty 10%  Value Added tax 15%  Sur tax 8%  Withhold tax 3% Average Selling Price (Regional Bureaus of Water Resources)

Cost of irrigation infrastructure, accessories and maintenance (Farmers’ response) Type of infrastructureAverage cost (Birr)Maximum cost (Birr) Shallow well Dug-out Pond Type of technologyAverage cost of AccessoriesMaintenance (previous Year) Maintenance (since Purchased) Petrol Pump Diesel Pump

Challenges Equity Pump-owners: generally are male, better-off farmers (Gender imbalance). High upfront investment costs, absence of financing tools, and limited access to investment and marketing information. Limited access to Credit Resource sustainability Many small dispersed points of water extraction. Risks of conflicts and environmental problems

Efficiency Poorly developed equipment supply chain, low quality pumps, limited choice, high taxes and transaction costs. Lack of information and knowledge on irrigation, seeds, marketing and equipment. Lack of access to infrastructure; output markets are dominated by middlemen. Frequent breakdown of pumps and high maintenance cost Weak input & Spare-part supply Weak maintenance service Weak extension service

18 Business Model: Making Smallholder Irrigation Technologies Accessible/Affordable 18 networking of farmers with potential suppliers and buyers 4 Potential Outcomes:  Affordability of irrigation technologies  Market efficiency and better income to farmers  Employment opportunity  Technology transfer Improve supply of Agricultural Inputs (fertilizer, seed, chemical, access to credit, etc.) 1 Improve Technical support Service (technology supply chain, spare part, maintenance, fuel & lubricants, extension service 2 Improve producers’ access to market 3 Address Problems in Output Market and Post-harvest Management Address Problems in Input Supply Chan

19 Improve the value chain Enhance knowledge flow Ensure technology access for all Rethink energy and AWM Adopt Watershed management Solution pathways to enhance motor pump utilization by smallholders Research, Donor, government & private sector Activity 2a Reduce import barriers and taxes Activity 2b Develop registry of dealers Activity 2c Provide credit to dealers to enlarge their stock Activity 1a Empower farmers with information to make informed decisions on technology choice Activity 1b Ensure farmers’ access to horticulture and marketing information Activity 3b Pilot irrigation service providers concept Activity 4a Stimulate alternative energy sources Activity 5a Assess possible environmental impacts at multiple scales Activity 3a Explore and pilot financial instruments Activity 5b Recognize and address resource conflicts Activity 1c Improve market infrastructure & address middlemen monopoly Activity 4b Consider AWM in electrification plans and policies Investment in this sector can benefit millions of poor men and women through additional income and improved food security and nutrition. Activity 5c Recognize the importance of grassroots participation

Thank you!