REPORT ON LAUCHING OF NATIONAL PLATFORM FOR DIALOGUE AND PROMOTION OF FERTILIZER USE

  1. INTRODUCTION

Seminar for launching of the National Platform for Dialogue and Promotion of Fertilizer Use in Mozambique which was held at Lunamar Hotel in Beira, on 15th July 2014, assembled different stakeholders on fertilizer value chain, which included public sector, private sector, educational and research institutions, development partners and NGOs and consumers/beneficiaries. The event was organized by National Directorate for Agrarian Services in partnership with AFAP, AGRA, IFDC andUSAID/SPEED.

The meeting comprised of members of board composed ofMr. Mahomed Valá, National Director of Agrarian Services; AFAP Vice-President, Professor Richard Mkandawire, and the representative of the Beira Municipal Council.

In his welcome speech the representative of the Beira Municipal Council, thanked for the opportunity to be part of that seminar which would be discussed matters relevant to the development of the agricultural sector in Mozambique, with special attention to smallholder farmers.

In turn, Professor Richard Mkandawire, Vice President of AFAP, in his speech referred to the importance of creating the National Platform for Fertilizer in Mozambique, this being the first of its kind in Eastern and Southern Africa. Stated that Mozambique is rich in water potential, land and human resources to promote growth of agriculture and food security in the Country. However, current agricultural productivity is low. This is due in part to the low adoption of fertilizer use by farmers in the smallholder sector. So here it is urgent the need to create the platform that will provide innovative mechanisms for dialogue to promote access and use of fertilizers at farmer level in the smallholder sector in Mozambique. He also added that AFAP, in the person of its national representative, contributed significantly and proactively encouraging the active participation of the private sector, thereby stimulating the use, access and marketing of fertilizers in Mozambique. Thanked the Government of Mozambique, donors and development partners, particularly USAID/SPEED, AGRA and IFDC, and reaffirmed the commitment of AFAP in the development of the national fertilizer market and the generation of wealth from agriculture.

Mr. Mahomed Valá, National Director of Agrarian Services, in his speech, thanked the presence of all participants having referred that the meeting aims to establish a mechanism for dialogue on policies, strategies, programs and projects through a debate on issues related to fertilizer and its value chain. The National Director stated that the National Plan of Fertilizers now existing, focuses on the following objectives i) reduce the costs of importing fertilizer, ii) increase national production and the dynamics of marketing of fertilizers, and iii) increasing access to fertilizers and reduce the cost the producer. Urged the need for all participants to commit to the deliberations of this platform in favor of increasing agricultural production and productivity in a sustainable way. To finish, Mr. Mahomed Valá,National Director, given by the opening of the Seminar to launch the National Platform for Dialogue and Promotion of Fertilizer Use.

  1. ATTENDANTS

Attendance of the seminar included representatives of public and private sector, research and educational institutions, consumers and beneficiaries, development partners and NGOs. In addition to the board members, there were 107 attendants. The full list including contact details isattached.

  1. OBJECTIVES OF THE SEMINAR

The objectives of the launching seminar of the National Platform for Dialogue and Promotion of Fertilizer Use were to:

a)Present to different actors in the fertilizer value chain the Fertilizer National Plan and the Proposal of the Terms of Reference for the National Platform for Dialogue and Promotion of Fertilizer use.

b)Identify priority challenges and discuss possible actions to take in order to streamline the fertilizer sector in Mozambique in implementing the National Fertilizer Platform.

c)Elect the Coordinating Committee members of the Fertilizer Platform. This must composed of a President, a Vice-president and representatives of the different actors involved in the fertilizer value chain.

d)Share information, interventions, experiences and challenges in the fertilizer value chain.

  1. SEMINAR AGENDA

The seminar duration was of one day (15th August, 2014). It followed the respective agenda (Attached).

4.1.Cost structure of fertilizer in Mozambique

The importation of fertilizer in Mozambique entails high costs which in turn translate into high cost of fertilizer to the smallholder farmer sector. Taking as example to import 1 tonne of NPK fertilizer (12-24-12) at the port of Beira, by Greenbelt fertilizer. The FOB price is fixed on USD535.00 which is added 12% distributed between insurance and sea freight and logistics, which brings to the CIF price (at the port of Beira) of USD599, 20. Once the fertilizer at the port of Beira additional cost have to be entailed of which import duties, clearing agent cost, MCNET and Kudumba cost constitute themselves as the most important, contributing 4.58% on CIF + port charges and transport to the factory gates cost. In addition there is the factory overhead costs. Given the situation the fertilizer cost come to USD800.34 per tonne (USD40.2 per 50 kg bag). Thus, the company suggests that if there was a discount of 5% decrease e.g. on Kudumba, MCNET and customs duty then it could result in substantial reduction in the cost of fertilizer at around USD10.00 per each bag to the smallholder farmer.Attached is copy of the detailed cost structure for fertilizer in Mozambique, Beira corridor.

4.2.Signing of Memorandum of Understanding (MoU)

AFAP, represented by its Vice-President, Professor Richard Mkandawire signed the MoU for technical assistance between AFAP and Ministry of Agriculture. Thereafter, AFAP also signed another MoU for technical assistance with HigherPolytechnic Instituteof Manica, represented by the respective General Director.

4.3.Group working

There were created 6 working groups with each group representing different actors involved in the fertilizer value chain. Apart from identifying priority challenges and propose respective solutions, the groups should also select and propose members for the Coordinating Committee. The working groups were created as presented in Table 1.

Table 1: Working groups

Group / Representing sector / Editor
1 / Public / Delfina Elisa
2 / Private–Fertilizer agro-dealers / Paulo Mkoka
3 / Private - Importers / Porky Christie-Smith
4 / Educational and research institutions / Constantino Cuambe
5 / Consumers/Beneficiaries / Lamo Setimane
6 / Development partners and NGOs / Cristiano Taimo

a)The seminar attendants distributed in 6 groups reaffirmed the need to create the National Platform for Dialogue and Promotion of Fertilizer Use. The platform is envisaged to bring improvement in the field of fertilizers, specifically on access, use, availability, quality, storage, production, fertilizer dissemination and also sharing of information in the fertilizer value chain.

b)Table 2, summarizes the challenges and proposed solutions raised by the working groups.

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Table 2: Challenges and respective actions to take, identified by each group.

Sector / Challenge / Actions
Public / Lack or poor knowledge about fertilizer use. / Promote fertilizer use through the process of technology transfer, with the possibility to integrate extension agents.
Smallholder farmers low access to fertilizers / Create mechanisms to obtain special credits and strengthen voucher system to smallholder farmers.
Insufficiency of regional laboratories to run fertilizers quality test / Create funds through PNISA in order to establish 3 regional laboratories, hire and train technicians to assure analysis of fertilizer quality.
Private –Agro-dealers / Demand creation / Train and potentiate agro-dealers and extension agents;
Train and educate smallholder farmers on correct use of fertilizers;
Improve interaction between agro-dealers and extension agents;
Establish field demonstrations;
Organize field days;
Disseminate use of fertilizers through media, pamphlets and other means;
Create synergies and incentives between public and private sectors;
Assure that agro-dealers participate in the commercialization or linking farmers to the institutions intended to;
Improve inputs chain (fertilizer distribution). / Improve the monitoring within chain actors (e.g. Retailers, agro-dealersand informal);
Improve fertilizer provision conditions (storage and redistribution);
Institutional training to create regional distributors that represent associations and private interests (e.g.Beira corridor, Nacala corridor, Limpopo corridor);
Import fertilizer during the low price period;
Advocacy to assure reduction of fertilizer price to the end users ( e.g.removal of 2.5% of import rate, subsidize inspection rates);
Finance ( subsidized credits). / Create specific financing lines to fertilizers;
Simplify credit acquiring process;
Assure bank grants to allow agro-dealers to acquire fertilizers from suppliers;
Privado – Importers / Import costs
-Duties -2.5%
-Mcnet – 0.85% FOB invoice
-Kudumba $115/20* container
-Clearing agent;
-High shipping line charges on demurrages (Free time period(Free period of time). / If the government can assists in reducing the mentioned costs
NGOs to continue assisting with capacity building of agro dealers and smallholder farmers
Ministry of Agriculture to assists in awareness program for educating the local farmers in usage of fertilizers.
Change of regime process – takes up to 2 months. It is centralized in Maputo / Descentralize to Beira.
Educational and research institutions / Lack of knowledge on fertilizer use in the agrarian sector / Adapt curricula to the challenges of fertilizer platform;
Promote the benefits of using fertilizers using pamphlets, media usage and demonstrations.
Lack of information regarding fertilizer rates adapted to specific crops and agro-ecological zones / Strengthen laboratorial network and technical capacity.
-Regional labs for soil and plat analysis (Maputo, Manica, Nampula);
-Quality analysis labs;
-Local labs (Educations institutions, private sector, experimental/research unities);
Intensify research to provide more reliable fertilizer recommendations for different crops and agro-ecological zones;
Poor knowledge on the potential for raw material to manufacture fertilizers and lime. / Prospection and detailed research for the quality of raw material usage in agriculture.
Consumers/
Beneficiries / Lack of fertilizer access to farmers and poor management skills and capacity / Create mechanisms to increase access and train farmers and other stakeholders in terms of fertilizer management
Lack of soil tests and low promotion of organic fertilizers / Promote use of organic fertilizers.
Promote soil tests to evaluate soil status and its suitability for agriculture;
Weakened technical assistence / Improve interaction between extension services and farmers for technology transfer
Development partners and NGOs / Lack of specific recommendation packages adapted to specific crops and agro-ecological zones / Develop fertilizer recommendations and combinations suitable for specific crops and agro-ecological zone
Adopt an integrated approach as a technology package
Materialize a pilot national program integrating extension services

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a)For enforcement of the fertilizer platform, it was agreed that it will have a representation of political / decision-making character (the General Assembly) and other operational character (the Coordinating Committee). The Coordinating Committee will be composed of:

  • 1 president, 1 Vice-president and representatives of the various stakeholders in the fertilizer value chain.
  • Secretariat – provided by AFAP, however, the private sector represented in the Constituent Meeting of the Platform has publicly pledged to finance the activities of the platform during the first six (6) months of its existence, in ways that should be set by the Coordinating Committee.

b)Therefore, General Assembly through free elections, decided:

  1. Creation of the Coordinating Committee with the following composition:

Carlos Zandamela – President;

Suzie Aline Aly – Vice-president;

Gil Mucave – Representative of the Development partners and NGOs;

Peter Waziweyi – Representative of consumers/beneficiaries;

Nascimento Nhantumbo – Representative of educational and research institutions;

Guillermo Machado – Representative of the private sector - South;

Porky Christie-Smith – Representative of the private sector- Central;

Gerson Daniel – Representative of the private sector - North;

Paulo Mkoka – Representative of the private sector – Agro-dealers;

Serafina Mangana – Representative of the public sector;

  1. The already elected Coordinating Committee must prepare a Proposal of Action Plan for the National Platform for Dialogue and Promotion for Fertilizer Use, based on the proposal raised by working groups.The Coordinating Committee met and decided that:

The Committee will work on proposals submitted by the various groups, which will be the working plan, and will circulate the action plan within one (1) month.

There is availability to hire a person who will work as secretariat to the committee, assisting therefore the president in his office to ensure the easy information flow and coordination of activities. The private sector is willing to pay the hired person in the first 6 months.

Members of the Coordinating Committee will be meeting in Maputo on August 4, 2014, to discuss the action plan of the Fertilizer Platform, which will be submitted to the General assembly for appreciation.

  1. The presidency of the General Assembly of the platform is of the responsibility of the National Directorate of Agrarian Services.
  1. EXPERIENCES ON FERTILIZER VALUE CHAIN IN MOZAMBIQUE

5.1.GREEN BELT

Greenbelt fertilizer (GBF) activities include raw material import followed by blending to satisfy crop and soil requirements. The company has the capacity to blend 1000 tonnes per hour, and is located in the Mozambican central City of Beira. The GBF aims to significantly increase the use of fertilizers by promoting training in terms of type and proper fertilizer use, requiring the use of quality seed, obedience agronomic practices taking into consideration the local agro-ecological conditions. The GBF intends to adopt an approach that consists in the development of small packets of fertilizers(1 kg, 2 kg, 4kg, 5kg e 8 kg). This approach is based on the affordability of small packages to smallholder farmers in rural communities.

Apart from blending, this institution of private sector provides services in soil testing and field service component. For these two components GBF makes the sampling of soils in the farmer’s fields and conducts analysis at zero cost. Further results are discussed with farmers and recommendations are given. Also, there is the organization of field days and demonstration plots component. In future, the GBF plans to expand its activities to production and marketing of agricultural lime.

Although, GBF recognizes that fertilizer import costs are high. This affects consequently fertilizer prices of smallholder farmers, making them expensive. Under this scenario the company propose government intervention to negotiate with KUDUMBA, MCNET to reduce by at least 10% in costs, which will result in reduced costs to farmers and increase fertilizer access to the end consumers.

5.2.AGRA

AGRA works in Mozambique committed to increase agricultural productivity. It focused interventions in the following areas:

  1. Increase fertilizer supply - AGRA investments to AFAP;
  2. Establishment of more than 1,500 demonstrations farms in Mozambique: sensitize and demand creation;
  3. Improvement of quality of available fertilizers;
  4. Development of agricultural input distributors (Agro-dealer development) –more than 500 empowered in Mozambique
  5. Financing fertilizer value chain.
  1. Lessons learned
  • Cost of fertilizer still high, which raises the need to understand the real causes;
  • Demonstrations can play significant roles to increase fertilizer use. However, the adoption is low unless there is financing;
  • Efficiency of fertilizer use can be increased through integration of inorganic and organic fertilizer sources. This include use of legume crops that apart from contributing to increased soil organic matter they also supply enough nitrogen required for the crop through Biological Nitrogen Fixation (BNF). More over use of legume crops contribute to increased cereal yields in the next cropping season.

5.3.IFDC

IFDC provides advocacy to government in matters of fertilizers. IFDC has been much involved in agro-dealers development.Actually the institution is focusing on smallholder farmers creating mechanisms to increase accessibility to markets and agricultural inputs.

The IFDC also conduct fertilizer research from which it was found that to maximize economic production of maize in Central regions of Mozambique, farmers need to intensify use of fertilizers. The results are available for the public.

5.4.AFAP

AFAP in Mozambique works to help increase access to and use of fertilizers at the producer level. In this context, the AFAP works in partnership with importers and mixing fertilizer in Mozambique institutions, public, educational and researchinstitutions.

One approach adopted by AFAP includes increased demand for fertilizer by farmers. This approach is being implemented in partnership with institutions, programs and projects working with organizations and / or groups of farmers to increase the use of fertilizers. In this same vein AFAP projecting establish 600 fertilizer demonstration fields for different crops, especially cereals and legumes.

Moreover AFAP works to increase the capacity of supplying fertilizer and funding within the fertilizer distribution channels, and improving the transparency of the market creating a favourable environment for development of the fertilizer value chain.

  1. Lessons learned
  • Existence of laboratory with capacity to run macronutrients analysis.
  • Two main limiting factors for demand and fertilizer use by farmers in the smallholder sector are lack of knowledge about fertilizers and their benefits, associated with low return on investment in fertilizer.
  • The country has no fertilizer recommendations for major crops in different agro-ecological zones.
  • The majority of projects, programs and NGOs working with small-scale famers do not include activities to increase fertilizer demand. This raises the need to develop programs that promote increased demand and use of fertilizers;
  • There are companies interested in entering the domestic market for mixing and granulating fertilizer. However, there is scarcity of information on the location and market demand, to allow the development of a viable business plan.
  • AFRICA FERTILIZERS

Private sector institution involved in the distribution of fertilizer. Despite the gradual but slow success that has been seen, the company intends to expand its services to reach more and more farmers (consumers / users).

5.6.MOZFERT

MOZFER is engaged in import and mixture of fertilizer in Mozambique, and recognizes that agriculture is not limited to fertilizers but much more than that. Thus, argue the need for inclusion of technology packages that include the use of improved seed and good quality, developing a network extension and a scientifically prepared and trained staff, involving all other stakeholders in the whole process.