September 15, 2022

Sorghum out-grower scheme: A sustainable solution to COVID-19 disruptions on the value chain

Staple Crops

Nigeria

As with any part of the world, the COVID-19 pandemic depressed the economy of Nigeria. Access to finance for vulnerable smallholder farmers and Micro, Small and Medium-sized Enterprises (MSMEs) became an even bigger challenge. White sorghum farmers in northern Nigeria have been unable to access quality inputs such as fertilizer and improved seeds, due to the high cost and unavailability in markets, circulation of sub-standard inputs, as well as severely reduced household incomes, threatening their productivity.

2SCALE took on this challenge through its partnership with Adefunke Desh Varieties Limited, a large-scale aggregator that offtakes high-quality white sorghum from smallholder farmers in Nigeria and supplies it to large-scale processing companies. Adefunke Desh developed a competitive sorghum out-grower scheme named ARZIKIN NOMA and implemented it in June 2021.

Arzikin-Noma facilitates access to high-quality input credits for smallholder farmers, supports capacity strengthening on Good Agricultural Practices (GAPs), and provides a competitive market for smallholder farmers. The input credit arrangement with Arzikin-Noma aims to increase the supply of quality grains that are free from contamination to meet market demand. In addition, it provides a solution for the lack of traceability of grains, which is the ability to identify where the food products come from and where they end up at any stage of the grain supply chain.

Modernizing data collection and monitoring for efficiency

Since the inception of the out-grower scheme, Adefunke-Desh facilitated the adoption of Global Positioning System (GPS) mapping. This involves data capture and plot mapping as part of the farmer onboarding process in the sorghum out-grower scheme. Farmers' bio-data information, such as their name, age, farm size, the exact location of the farm and the crop planted, is accurately established, and recorded. This data is stored in the Adefunke-Desh supply chain monitoring system dashboard. This technology promotes transparency in the scheme and provides the necessary data to determine soil variability, giving an exact estimate of the field being prepared for farming.

The road to recovery

The farmers that are part of this out-grower scheme are organized in local cooperatives, with leaders who support coordinating the input financing with Arzikin-Noma. Farmers accessing the input loan can repay slowly, through the cooperative, with grains that they harvest. So far, the scheme has created opportunities for 5247 farmers, 30 per cent women and 40 per cent youth, to access affordable and high-quality farm inputs.

Yakubu Abubakar, 36, has been a sorghum farmer for 17 years in Giwa local government, Kaduna state. He has been selling his products to Adefunke Desh for one year and on average, produces 30 bags, weighing three tons, from two and a half acres of land. He explains:

As a young sorghum farmer, I struggled with the lack of good quality seeds, high cost of fertilizers and lack of reliable information on agrochemicals. The COVID-19 pandemic did not make the situation any easier. The national lockdown in 2020 and part of 2021 put a strain on accessing finance to purchase farm inputs, which led to a lack of productivity on my farm. Through the partnership, however, I have been able to access quality input credits and a consistent market to sell the produce I harvest. I have been encouraged to continue producing since Adefunke Desh provided a solution to these challenges.

Tailoring farmer support to address the most pressing needs ensures that interventions tackling value chain disruptions are effective. As a result of the partnership's support provided to the farmers, they have realized increased yields and profits, consequently strengthening trust and loyalty to Adefunke-Desh.

Amina Musa, 28, from Marabarguga Giwa local government in Kaduna state has grown sorghum for 5 years on her two-and-a-half-acre farm. Some of the biggest challenges she has faced as a young, female white sorghum farmer include the lack of quality farm inputs, access to credit facilities and a reliable market. She shares:

The COVID-19 pandemic caused numerous businesses to fail, and mine was not spared. We had difficulties putting food on the table, let alone having enough produce to sell. Since I started selling my produce to Adefunke Desh, about a year ago, my farm productivity has increased. Now, I produce about 25 bags of white sorghum from my farm. With access to input credits, I can rest assured that my production will remain consistent and high-quality.

Solutions to crises in the agricultural sector need to be rooted in sustainability. Harnessing the power of the collective efforts of public and private sectors and farmers is critical for cost efficiency and timely delivery of the necessary support. This contributes significantly to the ultimate cause of developing inclusive value chains and improving the livelihoods of smallholder farmers.

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