case study: small holder farmer aflasafe technology adoption
DESCRIPTION
Partners. Case Study: Small Holder Farmer AFLASAFE Technology Adoption . Creating Companies | Creating Wealth | Creating Jobs March 2014. Our Challenge. Doreo. In Nigeria… We need to create 80 million jobs between 2010 and 2030. The Impact. The Impact . Doreo. 17. - PowerPoint PPT PresentationTRANSCRIPT
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Case Study: Small Holder Farmer AFLASAFE Technology Adoption Creating Companies | Creating Wealth | Creating Jobs
March 2014
CONFIDENTIAL
Partners
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Doreo
Our Challenge
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In Nigeria… We need to create 80 million jobs between 2010 and 2030
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Doreo
The Impact
The Impact
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The Solution – Small Holder Agriculture
40% of GDPHigh GrowthLabor IntensiveLow Skill
Nigeria's Job Creation Engine
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We believe… 1. Our continent is on a path to greatness, to stay the course we must
create millions of needed jobs now2. The fastest way to create these jobs is to invest in commercial and
highly scalable business that improve the profitability and livelihoods of small scale farmers
3. Such investments will create market forces that will unlock millions of jobs
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Why Aflasafe
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Vaccine
Segregate the Sick
Prevent Bite
Prevent Illness
After Bite
Cure Malaria
Malaria1
2
3
4
5
Malaria – Aflatoxin Analogy
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Vaccine
Segregate the Sick
Prevent Bite
Prevent Illness
After Bite
Cure Malaria
Breed Resistance
Aflasafe
Plant Stress
GAP
Storage
Amoniation Binders
Sorting
40 years and $100’s of millions spent with no useful resistant varieties
25 Years of proven data Ease of use / Broad cast it and forget it Commercialization hurdles in Africa remain
Complicated requiring small holders to execute multiple steps from planting through storage.
Complicated by multiple environmental variables For 50 years struggle to get Small Holders to use
fertilizer correctly
Not practical for human consumption Expensive
A last resort Not a solution for staple crops as it concentrates
aflatoxin in diets of poor
Malaria Aflatoxin 1
2
3
4
5
Malaria – Aflatoxin Analogy
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Vaccine
Segregate the Sick
Prevent Bite
Prevent Illness
After Bite
Cure Malaria
Breed Resistance
Aflasafe
Plant Stress
GAP
Storage
Amoniation Binders
Sorting
40 years and $100’s of millions spent with no useful resistant varieties
25 Years of proven data Ease of use / Broad cast it and forget it Commercialization hurdles in Africa remain
Complicated requiring small holders to execute multiple steps from planting through storage.
Complicated by multiple environmental variables For 50 years struggle to get Small Holders to use
fertilizer correctly
Not practical for human consumption Expensive
A last resort Not a solution for staple crops as it concentrates
aflatoxin in diets of poor
Malaria Aflatoxin 1
2
3
4
5
Malaria – Aflatoxin Analogy
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How to get small holders to adopt new technology?
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Create an integrated private sector solution that solves three hurdles of technology adoption
1. Access to Finance
2. High Cost Per Unit, Due to Low Yields
3. Access to Premium Markets
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Low Economies of Scale
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Small Holder Farmer Members
Small Holder Farmer Members
Small Holder Farmer Members
The Agricultural Franchise Model brings economies of scale to small holder farmers
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Trust
Group 1
Trust
Group 2
Trust
Group n
Services
Services
Services
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To Inspire and Enable Hardworking Small Holder Farmers Reach Their Full Potential
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Purchase Aflasafe
Phase 1 Aflasafe Pilot Commercialization
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1
2
3
4
5
6 7
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Profitably Producing Low Aflatoxin Maize
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Babban Gona FarmYields up to 6.9 tons per Hectare
Non Babban Gona FarmYields below 0.8 tons per Hectare
Double Farmers Incomes Stuck In Poverty
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Doreo
Increasing Incomes over $2,000 per Ha
50% De-risked receiving credit at half the interest rate of conventional micro credit
19% Discount on Inputs due to streamlined supply chains
400% Yield Increase over national average
37% Premium price for producing low aflatoxin products and streamlining supply chain
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2012 2013 2014 2015 2016 2017 2018 2019 2020 150 1,800 4,500
18,000 28,500
42,750
63,000
96,000
144,000
Development PhaseRefine model in Northern Kaduna
Regional ExpansionScale model across Nigeria
Organic Growth Phase Each Trust Group recruits one new Trust Group every 2 years.
Babban Gona: Inspire and enable 1 Million Farmers produce 4 million MT of Aflasafe Maize by 2025
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Metric Tons of Aflasafe Treated Maize
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Strategic Plan to Drive Sustainability Leverage Strong Regulatory Enforcement to Sustain Premium Market for Aflasafe maize
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1Year
2 3 4 5
PACA and Pull MechanismGenerate Supply of Cost Effective Low
Aflatoxin Maize
Enforce Regulatory Policy
Enable Market Forces to Drive Sustainability
Promote Health Awareness to Value
Chain Actors
Policy: Build Regulators Capacity
Policy: Develop
regulatory framework
Policy: Phased in regulatory enforcement mechanism
Market Forces
Health Awareness: Farmer Focus
Health Awareness: Industry Focus Health Awareness: End Consumer
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2
3
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Contact Details
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Lagos3B Baajiki Close
Lekki Phase I
Lagos, Nigeria
London11 Mount Pleasant
London, England
SE27 9PU
Kola Masha Managing Director
+234-(0)-805-5000-350
www.doreopartners.com
Doreo