Maize: A yellow revolution in motion
Djènèba Sanogo is a member of the “Sinignèsigui” cooperative located in Loulouni (in southern Mali). She is also one of the 240 women who received an input credit, facilitated by IFDC’s 2SCALE Project, through an off-take contract with Société Nama et Fils (SONAF), a company that sells dry cereals and serves as a locomotive for the partnership built around yellow maize in Mali. This partnership is based on a network of 20 Agricultural Business Clusters (ABCs), which mainly include 43 input suppliers, the National Bank of Agricultural Development (BNDA), microfinance institutions Soro Yiriwasso and Kafo Jiginew, sesame collectors, and a large network of 27 466producers (including 42 of women ) from whom SONAF collects maize. It then sells the maize on local markets (flour milling companies, poultry farmers, traders in Bamako and Kadi) and to those in the subregion (Senegal and Niger).
Until 2014, SONAF imported 80% of its raw material from Côte d’Ivoire. This is partially because the maize traditionally produced in Sikasso is white in color. White maize is generally grown for family consumption and does not correspond to market demand. One of the objectives of the before mentioned partnership is to integrate 10,000 small yellow maize producers into the SONAF’s supply system so that the company substitutes these imports with yellow maize produced in the Sikasso region. The volume targeted is 30,000 tons by the end of 2017.
Among the many obstacles in winning this challenge (e.g., structuring producer organizations, popularizing technologies and good farming practices, building the SONAF supply network), access to credit was not the least. If access to fertilizers is a major concern for all small producers in Sikasso and West Africa, it was particularly so for Djènèba Sanogo and the other 2,300 producers involved in the partnership. This was true for several reasons explained by Youssouf Traore, facilitator of the partnership for 2SCALE in Mali: “In Sikasso, like almost everywhere in Mali, fewer than 5% of women own land, and land property is generally the first form of collateral required by banks. Moreover, women are less educated and less informed than men, and few are bold enough to cross the threshold of a bank to seek credit.”
To mitigate this inequality, 2SCALE initially conducted an assessment of women’s specific needs, followed by a series of training sessions that included: Integrated Soil Fertility Management (ISFM), seed selection and storage techniques, maize quality standards, maize traceability, types of contracting and business relationships, production cost estimation, and techniques for their reduction, financial education and OHADA procedures.
Parallel with these training sessions, 2SCALE also facilitated the establishment of an access credit facility for inputs backed by an off-take contract with SONAF. This arrangement enabled 4 producer organizations (POs) comprised of 1,200 producers (including 233 women) to benefit from a credit volume worth 127 million francs. The loan was given to the BNDA, Soro Yiriwa, and Nyèsigiso.
“As part of the partnership, I received 5 bags of mineral fertilizers including 3 50-kg bags of NPK and 2 50-kg bags of urea. I used this to fertilize my corn field, which is 1 hectare, and this year my yield increased considerably: I had 2 tons of yellow maize on the same plot, whereas my yield was barely one ton per hectare, sometimes a little more. By doubling my yield, I repaid my in-kind input credit which was 800 kg of yellow maize, and I was even able to help one of my comrades to repay his input credit. The partnership is a great opportunity for women because for once, women from my village are participating in trainings and inter-ABC field visits for sharing experiences. Most importantly, men took the initiative to plow the fields of women who are members of the co-operatives and they did the job in time. This allowed us to repay our credits in the time agreed,” said Djénéba.
On SONAF’s side, Adama Dissa, Managing Director of the company, said that thanks to this innovative institutional arrangement, his company managed to collect more than 27,898 tons of yellow maize in the Sikasso region (the target in 2015 was 20,000 tons). This has helped reduce its imports from Côte d’Ivoire by 80%, where SONAF bought only 800 tons.
In 2016, of the 104 new POs trained on the quality management by 2SCALE, 12 were dominated by women, and they were able to deliver to SONAF yellow maize, the impurity level (moisture, mold, pebbles, plastic etc.) of which was greatly diminished. The company has now established supply contracts with buyers in Niger, Senegal and Mali. It is supported in this dynamic by a credit facilitation negotiated by 2SCALE with the National Bank of Agricultural Development (BNDA). This credit facilitation has increased from 70 to 300 million CFA francs.
“I worked in the past with many projects, but the experience with 2SCALE is really very different. What really changes is the quality of the relationships I could build with the networks of producer organizations that provide me with maize. The organizational model supported by 2SCALE thus allows us to better understand each other and to work both on short and long term issues, while developing a spirit of fairness in transactions. Thanks to this grassroots networking, I am now elected to the highest level of producer organizations in West Africa, and I have the confidence of banks,” said Adama Dissa, CEO of SONAF.
Women are much more reliable partners
Notwithstanding this unprecedented progress, the sustainability of the relationship between the company and its partners remains an important challenge, raising the question of loyalty and respect for contracts, particularly by some producer organizations where leadership is not always transparent. To address this challenge of strengthening business ties, 2SCALE facilitated a Business Development Forum on yellow maize in Sikasso in January 2017. The forum was followed by a series of coaching at the village level and enabled SONAF to understand that there is no comprehensive strategy that is systematically applicable to all POs.
“My ambition is to maintain lasting ties with producers and secure the supply of the company. This implies that I should also provide farmers with services so that we can arise win together. The rural world is complex, and every producer organization has its own specificities and local truths, but in the future we will focus on small organizations where everyone knows everyone and where there is more truth and solidarity. Experience has also shown that women are much more reliable partners. We will work to increase their numbers in yellow corn production,” Dissa promised.