Egypt: Smallholder contract farming for high-value and ... - IFAD

The single most important factor in realizing yield improvements in all horticultural produce,
whether organic or conventional crops, is the introduction of drip irrigation, combined with
fertilizer applications. The advantages over the furrow irrigation method that is practised are
• low moisture stress;
• improved fertilizer use efficiency;
• optimum growth, which would eliminate the need for furrows and thereby reduce labour costs;
• reduced pumping costs and reduced water use due to negligible evaporation and low percolation;
• it is better suited to the relatively saline water and soil; and
• if the drip is turned off, the land dries uniformly, thereby improving pre-harvest treatments
for onions and potatoes, as well as other crops.
This upgrading would also result in significant water savings and increased fertilizer use efficiency.
The use of pesticides would likewise decrease because the plants would not suffer from water stress
and would thus become more resistant to pests and diseases.
Another important upgrade would involve a selection among varieties that would particularly
address consumer demands in the modern retailer network. Because of the yellow leaf curl virus,
farmers are basically left with no choice but to produce industrial roma-type tomatoes because of
their resistance to the disease. This type of tomato also holds up well under the poor transport and
handling conditions prevailing in most of Egypt. However, it has a uniform maturity and would
bring the market to its knees during peak harvest, and the variety does not address the demand in
the modern retail sector, which is seeking a broader selection of different types of tomatoes.
Another example is the screening and breeding of new varieties of fine green beans, which could
boost the volume and the value of the export, particularly to Europe. In terms of a successful
upgrade, it is worth mentioning the development of a new fennel variety important for
smallholders (see box 3).
The demand for a broader varietal choice also holds true for cultivars other than tomatoes, beans
and fennel (e.g. baby vegetables, different types of potatoes, etc.). A new trend in many European
countries is to buy vegetables and fruits according to their nutritional value, which is directly
related to the variety cultivated.
A considerable number of smallholders in contract arrangements are growing cantaloupes under
row tunnels to start the crop early, and, among the larger farmers (those possessing two or more
feddan each), drip irrigation is also being used. It is claimed by CARE and CEOSS that the trend in
upgrading production involves growing in tandem with the development of trust between
contracted smallholders and exporters. Production under tunnels eliminates the use of pesticides
in the early stages of production, and drip irrigation reduces water consumption and water stress,
thereby rendering the plants more resistant to pests and diseases.
Box 3 Development of a new variety of fennel
A good example of a successful upgrade is a collaborative effort by smallholders in Upper Egypt, the Egyptian
Spices and Herbs Export Development Association and the Desert Research Centre, with support provided
through the Agricultural Exports and Rural Incomes Project, to develop a new variety of fennel for export. The
old type of fennel contained too much estragole (methyl chavicol), making it impossible to use the product in
pharmaceuticals and as a nutritive substance for humans. The product is therefore unsuitable for export. The
new type of fennel developed has an estragole content not exceeding 4 per cent and an anethole
concentration that varies between 52 and 73 per cent, making the variety suitable for export and for
processing in the pharmaceutical industry. The new variety is now being cultivated by smallholders contracted
by members of the Egyptian Spices and Herbs Export Development Association for processing or for export
in the form of seeds.
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