Pull mechanism and the role of AgResults implementers. Ibadan. May 2015

1. www.iita.orgA member of CGIAR consortium
AgResults Aflasafe Project (2)
Debo Akande
On behalf of AgResults Aflasafe Team
Ibadan May 2015

2. www.iita.orgA member of CGIAR consortium
Outline
 Introduction: the principle of pull mechanism
 Pull Mechanism in AgResults Aflasafe Project
 The role of an Implementer
 The characteristics of an Implementer
 Conclusion

3. www.iita.orgA member of CGIAR consortium
Introduction
Principle of Pull Mechanism
AgResults is a new multilateral initiative addressing the need for
increased investment in global food security and agriculture, in
particular from the private sector achieved through Pull Mechanism.
Increase incentives for private sector investment in agriculture.
Incentive after measurable results not before i.e Aflatoxin reduced
maize through smallholder/contracting farmers.
In areas where private sector investment is virtually absent due to
market uncertainties.
Leaving production, marketing and distribution strategies to the
private sector( Implementers).

4. www.iita.orgA member of CGIAR consortium
Pull mechanism in AgResults Aflasafe Project
Pull mechanism is designed to provide an incentive for
farmers within established networks to apply Aflasafe in the
field and produce as much high-Aflasafe maize as possible and
create sustainable market.
 Per-unit payments for performance : total kilograms of
maize treated with Aflasafe collected and aggregated by a
participant from smallholder farmers.
 Participant will receive a payment equal to $18.75 (3,000
Naira) for every metric tonne of high-Aflasafe tested.
 100% payout for aflasafe prevalence of the quantity of
maize that is above >70%.

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The role of an Implementer
Development of 300 + maize farmers as groups.
Technical and Business Support ( pre-planting- post-harvest)
for the growth of the small-holders farmers
Aggregation and Marketing of aflatoxin reduced maize at
premium prices.

6. www.iita.orgA member of CGIAR consortium
Characteristics of an Implementer
Aggregation
Demonstrate ability to work with or intention to work with at least 300 small holder farmers and have an
established or proposed business model of sourcing maize from smallholder farmers and provide assistance
to their smaller holder members.
Have the ability and capacity to organize and coordinate smallholder farmers through pre-planting,
planting and post-harvest handling of maize that has been treated with AflasafeTM.
Have the capacity to train and monitor farmer groups on the environmental application of AflasafeTM,
post-harvest management and the safe transfer and storage of this maize.
Be capable of providing support to smallholder farmers’ maize productivity through extension and access
to farm inputs. This could include having systems in place to add value to production of maize or link
farmers to a package of yield-enhancing inputs, i.e. fertilizers, storage facility, finance, etc.
Provide business references including from farmers; references should cover technical support and
fairness of market price offerings.
Be capable of facilitating or coordinating the purchase of AflasafeTM on behalf of the farmer groups as
required.
Have the willingness and capacity to label all maize bags produced by farmer groups in keeping with
AgResults requirements.

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Characteristics of an Implementer cntd
Verification
Be able to organize a system of aggregation points and storage to
support AflasafeTM verification procedures and sale to end-
customers.
Demonstrate an ability to meet verification procedures, including
delivery of high- AflasafeTM treated maize to designated collection
points.
Agree to work with AgResults evaluators to develop lessons
learned from the implementation.
Agree to disclose Challenge relevant business practices on a
confidential basis to AgResults evaluators at various stages during
project implementation, including description and documentation of
efforts to support farmers in their application of AflasafeTM.

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Characteristics of an Implementer cntd
Reporting
Have the capacity to provide data as required by the PM. Data will
include, but not limited to, the date and application rates for AflasafeTM
application, area planted, harvest dates and yield, among others.
Demonstrate commitment to maximizing transparency, disclosing
records, and document sharing of the premium payment or other
benefits for high- AflasafeTM treated maize to their participating
smallholders.
Coordinate and cooperate with the PM and the AgResults Secretariat
in the collection of data during the baseline and end of Pilot evaluation
to assess the overall impact of the activity on the maize market,
population health, and smallholder incomes and overall economic
benefits.

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Cntd
Branding and marketing
Have downstream market linkages to
efficiently aggregate and sell treated
AflasafeTM maize at a premium.

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Thank You
Thank u