Sustain Africa provides rebated fertilizer and resilience program...
Sustain Africa’s country programmes in Madagascar, Malawi, Mozambique, Uganda and Zambia have c...
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The Sustain Africa program in Madagascar ran from from December 2022 to the end of 2023. It was launched following one of the worst cyclone seasons (2022) in the island nation’s modern history. The business model was different to other Sustain Africa country programmes in so far as it did not rely on supplier rebates but rather on supply-chain efficiencies that reduced the cost-build up between import and farmer prices.
The programme set an initial target of 5,000 MT of fertilizer but it was soon clear that it was possible to exceed this target substantially. At the end of the programme, 17,274 MT of fertilizer were delivered to 438,136 smallholder farmers through 568 producer groups and 21 cooperatives in the central, southwest and southeast regions of Madagascar, with a price reduction of 52%. The programme was developed and managed by IRM in collaboration with local implementing partners Ambia, which worked with 21 farmer cooperatives, and Celva, which organised 568 village-based farmer producer groups. The programme engaged 7 regional hub distributors and 193 retail agrodealers, who benefitted from discounted fertilizer and seed, transport rebates business and technical training in fertilizer seed and agrochemical, market day interventions, farmer fields days, educational materials, videos, and online training services.
Voices from the Field
Bruno Ratovonandrasana Ralaiarisoa, rice farmer
Bruno Ratovonandrasana Ralaiarisoa, a 55 year-old farmer and village head, cultivates a 4 ha rice farm. Initially, as fertilizer prices spiked, Bruno had to reduce the quantity of fertilizer he used, with a resulting decrease in yield that left no surplus to take to market. The Sustain Africa programme changed this, but just as valuable were the training and field day sessions. “We, not only the direct beneficiaries, but also the whole neighbourhood, have learned about good agricultural practices and fertilizer management through the training sessions and field days. These have helped us maintain our yield production despite the cyclone. The reduced fertilizer price means we have been able to buy certified seeds. Both factors allow us to achieve a constant improvement in our farming activity. As head of my village, I can share what we have learned through the programme with other villages, expanding the reach of the programme further.”
Tma Njara, agrodealership
Retail agrodealers play a critical role in the ‘last mile’ of the fertilizer supply chain, serving as the direct link to farmers. Margins for fertilizer are very low and the profitability of fertilizer sales is therefore very sensitive to price spikes. Many agrodealers, not only in Madagascar, went out of business during the 2021/ 2022 price spike. Maintaining and growing a network of retail agrodealers is therefore critical to ensuring fertilizer use by farmers.
The Tma Njara agrodealership supports around 20,000 rice, vegetable and barley farmers with inputs. The fertilizer price spike initially led to a decrease in sales of around 40% over six months, which was reversed through the programme which ensured NPK and DAP fertilizers remained affordable. In particular, the agrodealer training sessions have enabled the dealership to better advise farmers, while the market days enabled Tma Njara to promote their shops and expand their customer base.
Odette Rasoazanamanana, farmer
Odette Rasoazanamanana grows rice, cassava, maize and beans on her 3ha farm. She is a member of the Manohisoa cooperative that participated in the Sustain Africa programme. Like other farmers in the programme, she had to reduce the quantity of fertilizer she used when prices spiked and she experienced difficulties sourcing supply. The reduced price enabled by the Sustain Africa programme was not the only benefit she saw from the initiative however. “During field days at demo trial sites, I learned techniques on soil fertilization that helped me to improve the way I produce rice, maize, and vegetable crops. We were given a technical leaflet which we can refer to afterwards which is also helpful. My crop yields have doubled. We used to have to buy rice as we couldn’t produce enough to fee the family, but now we are self-sufficient and I have been able to invest the money saved on poultry farming.