Agroecological Enterprises Inspire Change
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Jen Astone with Charles Mulozi and Simon Bukenya October 2020
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Agroecological Enterprises Inspire Change
- 1. Agroecological Enterprises Inspire Change Jen Astone with Charles Mulozi and Simon Bukenya October 2020
- 2. Overview Action Research Project Initial Findings Entrepreneurs that Inspire Reflections & Invitation
- 3. Joint Project Purpose & Definitions What do entrepreneurs need to create an enabling environment for agroecology? What are the financial and non- financial areas of support? Agroecology Fund & Alliance for Food Sovereignty in Africa
- 4. Why support agroecological enterprises? Essential strategy to improve farmer livelihoods To scale agroecology, principled agroecological enterprises are critical By advocating against unfair subsidies to large industrial farms, our alternative is public support for small scale agroecological farmers To garner political power to transform agriculture across Africa, we need a vibrant principled agroecological entrepreneurial sector & policy environment
- 5. Action Research Project Phase II (2021-22) Identify strategies to support agroecological entrepreneurs Develop a collaborative plan with partners & entrepreneurs Pilot the plan in a specific place / region Phase I (2020-21) Survey Entrepreneurs Interview Service Providers Follow up with Entrepreneurs Commission Field Studies Convene Stakeholders Share Findings
- 6. What challenges do agroecological entrepreneurs face with investors in Africa? Investors Ignore agroecology as a viable business model Focus on productivity and income Invest $200,000 USD at a minimum Are mostly – 80% – domiciled outside of Africa & focus on a limited number of countries Note: there are many other credit providers like local banks, microfinance institutions, self-help associations, local traders, etc. that extend credit to farmers
- 7. Virtuous Agroecological Cycle NGO & Cooperatives Knowledge Exchange Compost Green manure Agroforestry Pulses Farmer on Land Healthier soils More diverse crops Continuous land production Increased conservation areas & poachers transformed Household Enhanced food security by increased yields Excess production sold Sustainable production Cooperative Aggregation Premium prices On-time payments Principled Social Enterprise Value-added processing Transportation Marketing Employment Customers Access healthy foods Know where food is coming from Culturally relevant foods
- 9. Entrepreneur Responses Chain referral sampling Qualitative insights 68 responses (27 in French) 17 countries Majority identify as aggregators, small farms, or processors serving local markets Around 20% were large farmers or exporters
- 10. How would you characterize your business? Aggregator 39% Small farm 36% Processor 33% Other entity 25% Cooperative 17% Large farm 13% Exporter 9% Other enterprise 9%
- 11. Improving food security – 96% Sustainable alternative to conventional or industrial production – 95% Reestablish linkages between producers and consumers - 90% Landscape level changes to farming - 88% Strengthened local food markets & autonomy – 90% Agroecological Practices
- 12. Sources of monetary support Monetary support Personal & group savings. 83% Grants 38% Bank loans 21% Low interest loans 18% Non-monetary support Technical assistance in agriculture 56% Business advisory services 44% Incubator or accelerator training. 32% Sources of non- monetary support
- 13. Revenue Years 17% 24%59% Revenue (reported by 41 of 68) $200,000 and over $50,000 - 199,000 Under $49,000 38% 29% 33% Years in Business 0-5 6-10 11 +
- 14. We asked entrepreneurs: “What is working for you in accessing capital and markets?” Reliable Markets Good Inputs, Quality & Diversity of Production Loans Mutual Aid and Support Good Networks
- 15. We asked entrepreneurs: “What challenges do you have in accessing capital and markets?” Bank loans Processing Market Access & Marketing Environment Implementation
- 17. Businesses Production / Aggregation Processing Inputs Infrastructure Gathering Exports Mixed Other – markets, bakery, restaurant, tourism
- 18. Production &Aggregation Vegetables Grains – millet, sorghum, rice, corn Tubers – yams, cassava, potatoes Legumes – beans, peanuts Eggs Meat Milk L’Agriculteur et Fière - Guinea Produces potatoes, corn and beans for the local market Sath Agro-Business -Togo Produces animal feed and eggs, aggregator and processor
- 19. Processing Flours Oils Biofortified foods Nut butters Fuels – from agricultural waste
- 20. Farm Inputs Seeds Seedlings Animal Feed – poultry, fish Biointrants Biofertilizers – teas, composts, high quality organic types Biopesticides
- 21. Farm Infrastructure Solar driers – food preservation Solar energy for refrigeration, etc. Biodigestors – fertilizer and gas Irrigation – hand pumps etc. Information – via mobile & technology
- 22. Gathering /Other / Exports Agroecological markets Bakery, restaurants Eco-tourism Honey Wild fruits , nuts & medicinals Coffee, Cocoa,Tea Cashew, sesame Vegetables & tropical fruits
- 24. Initial Findings Entrepreneurs 1. Rely on personal & group savings 2. Engage in diverse activities and markets 3. Increase local nutritious food diversity - Covid-19 4. Experience outside providers emphasizing production over business skills and marketing
- 25. Initial Findings Entrepreneurs 5. Know farmers seek high quality bio inputs due to low cost, effectiveness, and adaptation 6. Experience a challenging environment – competition, traders, policies, poor infrastructure, etc. 7. Work at scale through cooperatives and associations to reach thousands
- 26. Bioprotect– BurkinaFaso Bioinnovate–EastAfrica GreenCentersof Innovation –Various countries SheFarms / Ignite –Ghana Holistic Approaches Emergence of new entities combining: training in production engagement of farmers’ unions / cooperatives university research support marketing and distribution engagement of women to pilot and develop agroecological products & businesses
- 27. Invite your Feedback & Participation In your country, what agroecological businesses inspire you? In your country, what support do agroecological businesses need?
- 28. Thankyou!Merci! jen@iciaptos.com charles.olweny@afsafrica.org Please contact us with your experiences and to join a follow-up conversation on the research.