Linking Small Holder Farmers to Local and Regional Markets in Staple Foods Presentation of the CTA Organized Briefing on “Improving Investment and Stimulating Agricultural Growth to Achieve Food Security in East Africa” on 12 th – 13 th November 2010 By: Nelson Sumba

2 Who is CGA? National member based, cereal farmers’ organization Incorporated in year 2000 Membership is over 20,000 small-scale farming households CGA, however reaches over 500,000 farmers indirectly, > 95% being small scale Associate membership (48) i.e. seed, agro-chemical, machinery, Financial institutions & insurance firms) CGA intervenes in the entire grain value chain

3 Objectives Establish and strengthen Smallholder Associations (SHAs); Build structures that will facilitate participation of smallholder farmers in the emergence of a warehouse receipt system, commodity exchange and WFP’s P4P; Facilitate linkage to support services for cereals enterprise development; and, Undertake advocacy activity in order improve enabling policy and regulatory environment in the cereals sector.

4 Mobilize Farmers into groups (Smallholder Associations or SHAs) Conduct Capacity building of SHAs based on Needs Assessment findings Conduct post-harvest handling training Facilitate linkage between buyers and sellers, including millers & WFP and input suppliers Dialogue with government ministries, regulatory institutions, bureaus of standards, and other national bodies that impact on cereals trade Major Activities

5 Greater integration of Smallholder farmers into the cereals value chain Reduced post-harvest losses Increased smallholder farmers access to credit facilities through Warehouse Receipt System and Kilimo Biashara Loan Increased smallholder farmers access to timely and accurate market information Improved trade linkage between SHA and traders, processors and food aid agencies e.g. WFP P4P Anticipated Impact

Challenges in Local & Regional Trade Poor infrastructures: Seasonality Poor record management at the farmer level Poor leadership and management by FOs Untimely purchase of farm inputs High costs of production Poor / inadequate drying and storage facilities 6

Challenges Cont’…. High post harvest losses Low value addition / processing at the farm Political instability. Lack of harmonized tax regimes: Lack of harmonized standards Inadequate / untimely market information 7

Opportunities Wider market for the commodities produced. Increased Access to Factors of production i.e raw materials for production Increased regional investments 8

9 Quotes: “Manna no longer falls from Heaven we earn it” – Pulling together helps - ………………………………………………… Asante sana! God bless you!