IMPROVED MARKETING LEADS TO MORE RAPID TECHNOLOGY DIFFUSION

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IMPROVED MARKETING LEADS TO MORE RAPID TECHNOLOGY
DIFFUSION

• Ouendeba B., A. Tahirou and J. Sanders

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Introduction

• Pearl millet and sorghum grown with low input on
  already poor soils involved in different
  production systems
• Research Institutions and Networks have made
  critical contributions to the development of the
  two cereals
• Field visits revealed that adoption of new
  technologies has been limited.

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Strengths

• Strong NGOs and Projects (SG2000, EWA, PDLM and
  WI) working with farmers
• Technologies available in most countries for
  production and processing
• Inventory credit systems (warrantage) being used
  in few countries

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Strengths (cont.)

• Expanding class of small processors often very
  progressive (mostly women)
• High quality processed products
• Rapidly increasing domestic and international
  demand for processed products

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Weaknesses (cont.)

• Threshing generally done on the ground
• Low grain prices at harvest
• Contract concept not well understood
• New product development very limited.

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Project Production, Processing and Marketing
Strategies

• Based on the different findings, INTSORMIL
  economists and food scientists, in collaboration
  with the NARS scientists, developed two concept
  notes to promote production and utilization of
  millet and sorghum
• Production and Marketing Strategies
• Processing and Marketing Strategies

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Production and Marketing Strategies

• Four strategies to increase farmers income
• Use improved technologies (improved varieties,
  inorganic fertilizer, fungicide)
• Take advantage of seasonal price variation
  (warrantage)
• Increase market power of farmers
• Produce premium-quality grain

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Food Processing and Marketing Strategies

• Provide quality grain through contracts
• Increase processing capacity and efficiency of
  the processing units
• Develop business-management and marketing skills

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What do we want to accomplish?

• Increase farmers income through market-oriented
  production
• Use improved cultivars, seed treatment, inorganic
  fertilizers, and water conservation practices
• Establish contracts to produce clean grain
  (limiting factor/rocafremi 1997) to supply
  processors
• 2002-2004 contract in learning phase more
  market and bargain power when strong groups

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What do we want to accomplish? (cont.)

• Evaluate income gains due to new technologies and
  grain prices
• Quality premium is well accepted by processors
• Contract is expanding rapidly in all millet
  growing regions.

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Production of Quality Grain

• 2002 most of the processors purchased grains in
  local markets 15-20 of sand and stones
• Improved grain quality provided to processors
  with the contracts (cleaner)
• Contracted farmers use private threshers
  equipment to provide grain free of sand and
  stones in Senegal

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Contracts combined with Inventory Credit

• Farmers needs are always very high at harvest
  when prices are low
• Enabling farmer to sell 3-4 months after harvest
  warrantageto satisfy early needs and purchase
  inputs
• Warrantage during bad and good years

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Lessons learnt and strategy when dealing with
processors

• Burkina Faso and Mali processors not willing to
  pay higher quality premium group resistance in
  2002 but now 10 fcfa/kg is generally accepted
• Processors processing high quality product are
  willing to pay higher quality premium market
  price 25-50 fcfa/kg of grain

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Lessons learnt (cont.)

• Processors preferred varieties being grown by
  farmers IKMP5 in BF, IBMV8402 in Senegal, HKP
  and Zatib in Niger, Sanioba 03 in Mali
• Number of processors increased in BF and Mali but
  quantities contracted remain low in all four
  countries
• More farmers involved in the contracts in Senegal.

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Summary of contracting process for the crop year
2002/03 in the four countries.
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Summary of contracting process for the crop year
2004/05 in the four countries.
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Information dissemination

• Yellow bulletin more than five hundred hard
  copies distributed in 2004 electronic copies
  were also sent when requested
• The second progress report will be distributed
  early 2005
• Use regional channel to disseminate the findings
  of the project

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Horizontal expansion collaboration in the four
Sahelian countries
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Conclusions

• Proven technologies combined with good marketing
  strategies increased farmers income in all pilot
  countries
• Farmers need to deal and contract with quality
  processors prepared to pay good premium
• Feed mixers in Senegal and Niger started to use
  local sorghum in poultry feed rations help
  identify tannin free cultivars to stimulate the
  use explore contract with farmers.