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One Step Program for the
SmallHolders
Fin4ag: Revolutionizing finance for Agri-value
chains, July 14th Nairobi, Kenya.
Mr William K. Ngéno
Who is Yara?
History
1905
World's first production of nitrogen
fertilizer - Calcium Nitrate in Norway
2004
Hydro becomes Yara
1905 1940 1980 2004
THE POVERTY VICIOUS CIRCLE
Figure 1: The vicious circle of poverty - Individual level;
Barke & O´Hare, 1991, page 43.)
Yara – One Step program
Smallholder Farmer
Improve productivity
Farming for business
Industrial Value Chains
Commercial / Nucleus Farm
Productivity Volume / Quality
50%
20%
70%
90%
Yara – Market Development Concept
Farmers
Growers’
base
income
Increased
income
Increased Yield / Improved Quality
Training / Product availability
Capacity
Competence
Coverage
• Key Development focus;
• phase1; improve productivity - food security and improved nutrition
• Increased income.
• Quality; human nutrition & shelf life
• phase 2; farming for business – transformation through value chains
partnerships.
• Balanced Crop Nutrition is about feeding the soil with minimum the
same amount of nutrients that will be removed during harvesting
Yara – Targeting Smallholder Farmers
Farming as a Business- outgrower concept
 Transformation of Smallholders
 Industrial partner ($) invest in
the Concept - committed to buy
the farmers’ produce with an
agreed quality and minimum
price
One lead-farmer per
village; Model farm,
Crop Clinics and
expand to Block farms
Many
villages in
each district
$
D
Yara Partner Distributor
delivers products and
knowledge.
A
A
A
A
Agro-dealers bring
quality input to the
doorsteps of the farms
Each farm is
producing food for
themselves and a
commercial crop
for income.
NGO/Donor
Yara- Creating value to the farmer
Record keeping
 Farmer density per region
 Scale of operation
 Profile; social, economic, Saving schemes
Why?
 Communication
 Financing
 Strategy; Approach on crop choice, nutrition, targets
Mapping for decision making
If the farmer do not understand / realise that he /
she have low productivity
– Agro inputs will be too expensive and the crop
price will always be too low!
Yara – Smallholder focus
Yara – Crop clinics
Crop Clinics organized with Agro Dealers
and Lead Farmers
- focus on practical demonstrations and
discussion with farmers
Cb session 4 one step forward approach for small holders

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Cb session 4 one step forward approach for small holders

  • 1. One Step Program for the SmallHolders Fin4ag: Revolutionizing finance for Agri-value chains, July 14th Nairobi, Kenya. Mr William K. Ngéno
  • 2. Who is Yara? History 1905 World's first production of nitrogen fertilizer - Calcium Nitrate in Norway 2004 Hydro becomes Yara 1905 1940 1980 2004
  • 3. THE POVERTY VICIOUS CIRCLE Figure 1: The vicious circle of poverty - Individual level; Barke & O´Hare, 1991, page 43.)
  • 4. Yara – One Step program Smallholder Farmer Improve productivity Farming for business Industrial Value Chains Commercial / Nucleus Farm Productivity Volume / Quality 50% 20% 70% 90%
  • 5. Yara – Market Development Concept Farmers Growers’ base income Increased income Increased Yield / Improved Quality Training / Product availability Capacity Competence Coverage
  • 6. • Key Development focus; • phase1; improve productivity - food security and improved nutrition • Increased income. • Quality; human nutrition & shelf life • phase 2; farming for business – transformation through value chains partnerships. • Balanced Crop Nutrition is about feeding the soil with minimum the same amount of nutrients that will be removed during harvesting Yara – Targeting Smallholder Farmers
  • 7. Farming as a Business- outgrower concept  Transformation of Smallholders  Industrial partner ($) invest in the Concept - committed to buy the farmers’ produce with an agreed quality and minimum price One lead-farmer per village; Model farm, Crop Clinics and expand to Block farms Many villages in each district $ D Yara Partner Distributor delivers products and knowledge. A A A A Agro-dealers bring quality input to the doorsteps of the farms Each farm is producing food for themselves and a commercial crop for income. NGO/Donor
  • 8. Yara- Creating value to the farmer
  • 10.  Farmer density per region  Scale of operation  Profile; social, economic, Saving schemes Why?  Communication  Financing  Strategy; Approach on crop choice, nutrition, targets Mapping for decision making
  • 11. If the farmer do not understand / realise that he / she have low productivity – Agro inputs will be too expensive and the crop price will always be too low! Yara – Smallholder focus
  • 12. Yara – Crop clinics Crop Clinics organized with Agro Dealers and Lead Farmers - focus on practical demonstrations and discussion with farmers