Sustainable Agricultural Mechanization Development: What are the requirements to create an enabling Environment. by Prof. Karim

1. Regional workshop to share experiences of sustainable agricultural mechanization hire
services provision in Sub-Saharan African countries: What opportunities for investments?
9th – 12th December, 2019
Venue: Hotel Imperial Royale , Kampala Uganda
M. Karim Houmy, FAO international Consultant
Sustainable agricultural mechanization
development: What are the requirements to
create an enabling environment?

2. Outline
1. Introduction
2. Demand and supply for agricultural mechanization
3. The issue of direct investment
4. What are the requirements for enabling environment ?
5. Conclusion

3. forest-fallow
bush-fallow
Annual
cropping
system
Time
Increasing population
density and market access
Increased demand for
labor
Evolution of agricultural
mechanization
Agriculture intensification

4. Is motorization an obvious choice?
One producer Up to 3 people
One producer
One producer
Up to 6 people
Up to 50 people

5.  Human Nutrition
 A very simple tool
 Limited skill
 Feeding and care of
draught animals
 Advanced tools
 Less demanding
repair network
 Relatively limited skills
 Adapted financing system
 Important investment
 More demanding repair network
 Adapted plots and large areas
 Adapted crop cultivation practices
 Varied skills
 Adequate infrastructure
The agricultural mechanization system is complex: more
requirements

6. End users of
agricultural
equipment
Private sector Institutional
Men,
women,
youths
Individuals
Cooperative
Importers
Dealers and
Repairers
Hire services
Providers
Decision-
makers
Technical
departments
Banks,
NGOs...
Development
Partners
Diversity of stakeholders
Manufacturers
Farmer
organizations

7. Presentation Outline
1. Introduction
2. Demand and supply for agricultural mechanization
3. The issue of direct investment
4. What are the requirements for enabling environment ?
5. Conclusion

8. The dominance of small farmers with the
tenure issue,
Physical environment where the roles of
climate and soil must be taken into
account,
Weak institutional support
The business environment, which
includes social, political, economic,
regulatory, fiscal, cultural, legal and
technological environments that are
unfavorable
Depending on the international
context..
Agricultural mechanization demand

9. Low income
Low saving
Low demand
Low productivity
Vicious circle of
underdevelopment of
the demand for
agricultural
mechanization
Demand for agricultural mechanization

10. Low demand
Weak infrastructure
Less visibility for private investors to get
involved
Weak institutional support
Business environment, which includes
social, political, economic, economic,
regulatory, fiscal, cultural, legal and
technological environments.
Depending on the international context.
Agricultural mechanization supply

11. Low demand
High cost of AM
use
High cost of AM
Low AM supply
Agricultural mechanization supply
Vicious circle of
underdevelopment of
the for agricultural
mechanization supply

12. Direct investment
by the government
Les cercles
vicieux du sous-
développement
de la
mécanisation
agricole
Agricultural mechanization demand and supply
Low income
Low saving
Low
demand
Low
productivity
Low demand
High cost of
AM use
High cost of
AM
Low AM
supply

13. Presentation Outline
1. Introduction
2. Demand and supply for agricultural mechanization
3. The issue of direct investment
4. What are the requirements for enabling environment ?
5. Conclusion

14. Provide timely
services
Public sector
Too many rural
farmers
Small irregular fields
Stumps
Causes equipment
damage
Private sector
Not obliged to accept all
requests
Can better plan services
to selected
But risks criticism for this
approach
Comparison between the public and private sectors

15. Public sector
5 or 6 days week
“Office” hours
Is “overtime”
allowed?
Private sector
Little or no
constraints on
working hours
May even stay
with equipment
overnight
Provide timely
services (cont.)
Comparison between the public and private sectors

16. Downtime for
repairs/maintenance
Public sector
Spares and other inputs
subject to bureaucratic
purchasing procedures
May need to pass through
Ministry in the capital
Temptation to cannibalize other
equipment
Private sector
Relatively quick
purchasing
procedures
Head office probably
on-site or at least
within easy reach
Comparison between the public and private sectors

17. Does
equipment
conform to
farmer needs?
Public sector
Little influence over
choice if “Aid-in-kind”
Temptation for Ministry to
purchase additional
special-purpose items
which will rarely be hired
commercially
Private sector
Unlikely to acquire
equipment which will
rarely be hired out
But also unlikely, e.g. to
make direct seeder
available (for
conservation agriculture)
Comparison between the public and private sectors

18. Presentation Outline
1. Introduction
2. Demand and supply for agricultural mechanization
3. The issue of direct investment
4. What are the requirements for enabling environment ?
5. Conclusion

19. Les cercles
vicieux du sous-
développement
de la
mécanisation
agricole
Demande et offre de mécanisation agricole
Low income
Low saving
Low
demand
Low
productivity
Low demand
High cost of
AM use
High cost of
AM
Low AM
supply

20. Virtuous circles
of AM
development
Improved income
of farmers
High saving
High AM demand
High productivity
Low cost of AM
use
Low cost of AM
High AM supply
• Infrastructure
• Legislation
• Institutional support
• Financing
• Incentives
Objectives of agricultural mechanization development
• Business climate
• Institutional environment

21. GIS as a decision-making tool

22. Presentation Outline
1. Introduction
2. Demand and supply for agricultural mechanization
3. The issue of direct investment
4. What are the requirements for enabling environment ?
5. Conclusion

23. conclusions
 The development of agricultural mechanization has more
requirements that should be taking into account
 A global approach with long-term actions is needed
 Actions should focus not only on specific issues, but also on the
overall environment of agricultural mechanization.
 There is a need to provide a starting system (financing, incentives)