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The area under irrigation is very low in Sub-Saharan Africa, only 3.7% compared to 10% in South America,
29% in East Asia and 41% in Southeast Asia.
Translating: Irrigation is very much a problem. In Sub-Saharan Africa, less than 4% of the farms are irrigated.
Compare that with 10% in South America, 29% in East Asia and 41% in Southeast Asia. Insights: The African
farmers are poorer than the Southeast Asians. Water is the great leveler.
Poor market access is a result of many factors such as the lack of a functioning marketing system that
links the many small producers with domestic and international buyers.
Translating: To simplify, a market is people to sell to. In the region, beyond their farms, the farmers can hardly
link to local traders, much less to international buyers. Insights: The problem with the market is that there’s
none. Market is another great leveler.
There already are cooperatives
to produce seeds; as they are,
they have one opportunity and
one problem. The opportunity is
the high demand; the problem is
the low quality of
the seeds produced.
There are two problems here.
One, small producers are miles
apart, which does not encourage
co-operation for economies of
scale. Two, small farmers supply
the market with mixed, not
graded produce.
Several highly dispersed small producers supply nonhomogenous
products to local markets.
Translating: Insight: Consumers know what they want, farmers don’t.
The volume of marketable surplus is very low, and hence the
transaction costs of marketing for individual farmers are high.
Translating: As is, for each farmer, since his produce is low, his
marketing cost is high. Insight: Don’t bring the farmer to the market;
instead, bring the market to the farmer.
Varieties currently grown by farmers are not able to satisfy the
quality attributes required by diverse markets.
Translating: Farmers reap what they sow, when they fail to consider
what the consumers want. Insight validated.
Africa has poor infrastructure – roads are few and not well
maintained, the railroad length is under 2% of the world’s total
and dilapidated, storage and product handling systems are
inefficient, all adding to the cost of doing business on the
continent.
Translating: The roads are few and the worse for wear; the railroad
is short and impaired, not repaired. Storage for farm produce is
poor, the handling leaves much to be desired. All that adds up to bad business. You are in Africa.
Poor dissemination of improved varieties is another challenge. Improved varieties that are adapted to
target environments and both farmer and market needs have been developed but have not been
disseminated.
Translating: Good seeds are hard to find. The varieties that grow well even in bad fields, that fit farmer’s practice, that
the people like to buy – the farmers never heard of them. Insight: What the farmers don’t know hurt them, and us.
To Catch An Insight