Presented by IWMI's Thai Thi Minh as part of the Small Scale Irrigation Multi-Stakeholder Dialogues: Bundling innovations for scaling farmer-led irrigation in Ghana (organized by ILSSI)

1. Photo Credit Goes Here
GHANA MARKET SYSTEMS & RESILIENCE ACTIVITY
Small Scale Irrigation Multi-Stakeholder Dialogues:
Bundling innovations for scaling farmer-led irrigation in Ghana
Mensvic Hotel, Accra
Tuesday 8th November 2022
ACDI VOCA: Experience with bundling
innovations and services in ADVANCE I &
II Projects

2. • Traditional Extension systems evolving
• ADVANCE II project overview
• ADVANCE II Outgrower Business Model
• Core actors and features
• Type of bundled services
• Project results
• Other results
• Proposed sustainable model
• Lessons learned
Outline

3. Extension Organizations Traditional Extension Services
The transfer of
knowledge generated
by agricultural
research.
Reaching Smallholder farmers with Services
• Public Extension
Systems
• Private Extension
System
• Profit oriented
• Non-profit
• Formal Room
training
• Field training and
demonstrations
• Advisory

4. Commercialization, Globalization and Climate Change Call
for New Services
• Markets and market
information
• Managing
(commercial)
relationships
• Competitiveness
• Managing Risks
• Financial
• market
• Environmental
• Climate

5. Agricultural
Development and Value
Chain Enhancement II
ADVANCE II
A Feed the Future
Project
• Promote adoption of Good
Agricultural Practices (GAP)
• Make production inputs (Seeds
and Fert.) available to OGs.
• Increase productivity
(yield/area) for OBs and OGs
• Build sustainable market
relationship between buyers
and farmers.
➢ Guarantee market for farmers
➢ Guarantee supply of raw
materials for the processors
• Build sustainable outgrower
business for NF/OBs

6. ACTORS ROLE REMARKS
Community-based
individually-owned farm
business(OB)
Main financier if no buyer is
involved. Owns farm equipment
High level trust relations with
SHFs or Lead farmers.
Smallholder farmers Producers of maize or soybean per
contract arrangement
High level trust relations with
Lead farmer and/or OB
Lead farmers Mobilizes SHFs, distributes inputs. High level trust relations with
OB and SHFs
Field agents (OB) Conducts field supervision and
support services for OB
Normally has ad-hoc business
relations with OB
Buyer/processor Main offtaker and/or financier.
Driver of innovations
Trusted relations with OB,
supported by OB network
Buyer (Field agent)* Input distribution at OB level.
Conducts field supervision and
support services for buyer.
Not a regular actor in the
chain
ADVANCE II OUTGROWER BUSINESS MODEL- CORE ACTORS

7. ADVANCE II OUTGROWER BUSINESS MODEL
Features
• Trust-based relations – mostly without
written contracts
• Tractor ploughing is a core service –
mostly over subscribed
• Bundled services
• Credit based transaction
• Barter trade (credit repayment by SHFs)
• Direct or indirect service delivery

8. ADVANCE II OUTGROWER BUSINESS MODEL
Type of Bundled services
• Seedbed preparation/Tractor plough
• Input credit – mainly seed and
fertilizer
• Crop insurance
• Marketing/aggregation
• Post-harvest threshing
• Farm support/extension/information
• Farm transport
• Warehousing

9. ADVANCE II OUTGROWER BUSINESS MODEL
Type of Innovations Introduced
• Soil ripping
• Hybrid seed
• Hand-held planter, Mechanical
Planter
• Labour saving farm equipment for
women
• Digital finance
• Digital Information on weather/GAP
• Warehousing receipt system*

10. Outgrower Business Model
Community-Based
Outgrower Business
Agro-input
Company
Processor/Buyer Firm
Weather
forecast
ADVANCE
Outgrower business
dev’t & capacity
building
Thru GGC
Fertilizer &
Weedicides
Inputs ( seed &
fertilizer etc)
Training on GAPs,
PHH, etc
Sales
Sales
Credit
Investment
Community
Warehouse
Business
Development
Warehouse receipts
Storage
Grants
ADVANCE
Collaboration
Volunteers/Consultants
Linking to VC
actors
Ag. Information (SMS &
Voice mail)
Radio Stations
Ghana Agricultural
Insurance Program
Grants
Grants
Grants
Crop
insurance
Info on prices, weather
Information on GAPs
Temporal storage
Bank/FI
Tractor services
Threshing, Shelling
& extension
Contracts
Warehouse
Contract

11. LEGEND
FBOs - Farmer
Base
Organizations
FI – Financial
Institutions
GAPs – Good
Agricultural
Practices
OBs - Outgrower
Business
PHH – Post
Harvest Handling
VC – Value Chain
VSLA – Village
Savings and Loans
Association
31 Radio
Stations
Information on
GAPs Training on GAPs,
PHH, etc
36 Banks or FI
disbursed
$ 4,895,023
loans
89 Agro-
input
Companies
Rain forecast
Feed The Future
Agricultural
Development and
Value Chain
Enhancement Project
Feed The Future
Agricultural
Development and
Value Chain
Enhancement Project
Outgrower
business dev’t &
capacity building
Fertilizer &
Weedicides
Business
Development
Collaboration
Volunteers/Consultants
Ag. Information
thru’ SMS & Voice
mail
Ghana
Agricultural
Insurance
Program
Grants
Grants
Crop
insurance
Info on prices, weather
1,122 VSLA
groups saved
$1,716,890
Purchase
Inputs
Linking to VC
Credit
actors
424 OBs & 651
FBOs
provided $ 6,287,869
worth of inputs
158 Processor/Buyer
Firms
143,817 OGs.
1,049,794 MT
produce sold worth
$ 184,577,631
Sales
Contract
Tractor services
Inputs ( seed &
fertilizer etc)
Threshing,
Shelling &
extension
Sales
Contracts
$38,577,902
Investment
$ 8,113,842
PROJECT RESULTS (AS AT April 2021)

12. OTHER RESULTS
• Agribusinesses see opportunity to invest/do
business in northern Ghana
• Increase in amount and quality of information
between market actors
• Increased flow of resources
• Smallholder farmers seen as viable suppliers of
quality produce
• Some crops (soybean) gain industrial status

13. LEGEND
FBOs - Farmer
Base
Organizations
FI – Financial
Institutions
GAPs – Good
Agricultural
Practices
OBs - Outgrower
Business
PHH – Post
Harvest Handling
VC – Value Chain
VSLA – Village
Savings and Loans
Association
31 Radio
Stations
Information on
GAPs Training on GAPs,
PHH, etc
36 Banks or FI
disbursed
$ 4,895,023
loans
89 Agro-
input
Companies
Rain forecast
OUTGROWER
BUSINESS
NETWORKS
OUTGROWER
BUSINESS
NETWORK
Outgrower
business dev’t &
capacity building
Fertilizer &
Weedicides
Business
Development
Collaboration
Volunteers/Consultants
Ag. Information
thru’ SMS & Voice
mail
Ghana
Agricultural
Insurance
Program
Grants
Grants
Crop
insurance
Info on prices, weather
1,122 VSLA
groups saved
$1,716,890
Purchase
Inputs
Linking to VC
Credit
actors
424 OBs & 651
FBOs
provided $ 6,287,869
worth of inputs
158 Processor/Buyer
Firms
143,817 OGs.
1,049,794 MT
produce sold worth
$ 184,577,631
Sales
Contract
Tractor services
Inputs ( seed &
fertilizer etc)
Threshing,
Shelling &
extension
Sales
Contracts
$38,577,902
Investment
$ 8,113,842
SUSTAINABILITY MODEL

14. Lessons learned
• Trust is the bedrock
• Community and social relations improves trust
• Credit is important but repayment default rate can
be high without effective supervision
• Field Supervision costs can increase overheads
but manageable. OBs reluctant to invest and relies
more on trust.
• Introduction of imported hybrid varieties was a
game changer
• Increased productivity
• Spurred local development of hybrids

15. www.feedthefuture.gov