Soya Bean Sector Brief

• Yapasapartnerswithagro-inputsupplierstodevelopaneffectivesupplysystemtargetingsmallholdersoybeanfarmers.Itsupportsthedevelopmentofcommunityagro-dealershipsforlastmiledeliverymechanismsaswellas

appropriatecreditmanagementsystemsandembeddedtechnicaltraininginproductuseandagronomicpractice;

• Yapasasupportsofftakersandtradersingrainsandlegumesthatoperateaggregationandoutgrowerschemestodevelopandpilotyouthinclusivebusinessmodelswithembeddedentrepreneurshipsupportservicestodeliveragribusinesstrainingandnecessaryinformationtoyoungsoyafarmers;

• Yapasasupportscoordinationofkeystakeholderstoidentify,prioritiseandcommunicatepolicyissuesaffectingthesoybeansector,toadvocateandlobbyforpolicyactionfromtheauthorities.

• Yapasaisamarketsystemsdevelopmentprojectworkingtoexpandenterpriseandemployment

opportunitiesforruralyouththroughengagementinagribusiness.Theinitialprojectsareinsoyabeansandaquaculturevaluechains.ILOandFAOimplementYapasajointlywithfundingfromthegovernmentofSweden.

• Yapasaaimstoinspirecompaniesworkinginthesemarketstocoordinatemoreeffectively,todeveloporrefinebusinessmodelsthatincludeyouthandmakegoodbusinesssense.Italsoaimstoencouragethekeyplayersinthemarkettosharetheirlearningthroughthesepilotstoencouragecopyingandcrowding-infromothercompanies,therebymakingaworkablechangeinthemarketsystems.

• Smallholdersoyafarmerstypicallyproduceapprox.0.8metrictonnesperhectareusingtraditionallowinputmethods.Usingcommercialinputs,improvedseed,andgoodmanagementpracticesundercommercialsupervisiontheyieldcouldpotentiallyincreaseto2-3tonnesperhectareandcouldyielduptoZMW6,000perhectareinagoodproductionyear(assumingapriceofZMW3/Kg)withaverageproductioncostofZMW3,000/ha.

• Themajorityofyoungfarmersinruralareashaveneverseencommercialsoyaproductionandhavelittleunderstandingofthepotential.Individually,farmers

donotproduceenoughsoyatomeetformalmarketrequirementsandneedtobemobilisedintogroupstodoso.Theyhavelittleaccesstoqualityinputswithintheirlocality,tendingtorecycleseedandnotuseotherinputs.Smallholderfarmersalsohavelittleaccesstoqualityproductionadviceandareunawareofcostsandmarginsastheydonotproducecropsasabusinessactivity.Withaccesstokeyproductsandservicesmoreyoungfarmerscanundertakesoybeanfarmingasabusinessactivityandimprovetheirincomeandfoodsecuritysituation.

• Youthenterpriseopportunitydependsonaccesstoinformation,localizationofinputsupplyandforgingrelationshipswithtradingcompanies.Allthisenablesinputcredit,achannelforbulkinputs,andprovidesembeddedtechnicalservicesandaggregatedaccesstoformalmarkets.

• Whenofftakersestablishthemselvesasasourceofkeyinformationandbusinesssupportservicesforyoungfarmers;agro-inputsuppliersdeveloptheirsupplynetworkmakingitaccessibleinruralareas,morefarmerscanbeengagedandimprovetheiryields.

What is Yapasa?

Yapasa Work in Soya

“The project aims to inspire companies working in these markets to coordinate more

effectively, to develop or refine inclusive business models.”

“Yapasa supports coordination of key stakeholders to identify, prioritise and communicate

policy issues affecting the soybean sector.”

How it Works

2 | YAPASA SOYA BEAN SECTOR BRIEF

“Youth enterprise opportunity depends on access to information, localisation of input supply and

on forging relationships with trading companies.”

YAPASA SOYA BEAN SECTOR BRIEF | 3

1. MBALA: Nsenga

2. MUNGWI: Mungwi Central, Chamfubu

3. KASAMA: Munkonge, Kasama Central, Nkolemfumu, Mwamba

4. LUWINGU: Chungu, Chulungoma, Chimfwile

5. SOLWEZI: Mutanda, Lunga, St Francis, Meheba

6. MPONGWE: Kashiba, Ibenga, Mpongwe, East, Machiya

7. KAPIRI MPOSHI: Changondo

8. KABWE

9. MUMBWA: Kaindu, Kapyanga, Shibuyunji

10. CHIBOMBO: Keembe

11. CHONGWE: Nkomeshya

Soya Intervention Areas

Yapasa in ActionTohelpresolvesystemicconstraintsthatlimityoungfarmerparticipationinsoybeansproductionandmarketing,variousinterventionsareimplemented:

1. INPUTS SUPPLY SYSTEM

Thevisionistocreateanaccessible,healthysupplyanddistributionsystemofagriculturalinputsforsoybeanfarmingtargetingsmallholderfarmers.

TheYapasateamusesmarketmappingtoolsandothersourcesofinformationtoidentifypotentialpartners.Afterdetaileddiscussionswithvariousactorsinthemarket,formalpartnershiparrangementswithpartnershappen.

Keypartnersoftheprogramaremarketplayersandtheirstrategicrolesareasfollows:

INPUT SUPPLIERS (SEEd, INOCULUM ANd CROP PROTECTION/FERTILITY INPUTS)

Yapasapartnerswithselectedinputsupplierswillingtoexpandtheirbusinessinseed,inoculumandcropprotection/fertilityinputstargetingsmallholderfarmersinZambia.

Theinputsuppliersaresupportedtodevelopagro-dealershipsthroughlocalentrepreneurswillingtoexpandtheirdistributionnetworkintheiroperationalareas.

Theagro-dealershipsarethentrainedbytheinputsupplierstoselect,developandmobilizeateamofleadfarmersascommissionsalesagentsinthecommunity.Suchleadfarmersare,overtime,expectedtobecomeindependentcommunityagro-dealers(CADs).

Theinputsupplierssupporttheagro-dealershipsandtheirleadfarmers/CADsincapacitydevelopmentofthefarmersparticularlyinimprovedfarmingpracticesanduseofqualityinputs.Theyalsosupportanddevelopsuitabletermsoftradetoenableyoungsmallholderfarmersaccessthesequalityinputsoncreditbasis.

Theleadfarmers,beingpartofthecommunity,areinstrumentalinpromotingqualityinputsandfarmingmethodsandsizingdemand.Theywill,infuture,alsoretailinputsonbothcashandcreditbasisaccordingtotheagreedtradetermswiththeiragro-dealers.

AGRO-dEALERS

Districts/areaswherethereispotentialdemandforqualitysoybeaninputs,especiallyamongyoungfarmers,areidentifiedthroughoutgroweroperators.Suchpotentialdemandmayalsobefromcontractfarmingpromotersandotherlarge-scalesoybeandealerswhoarewillingtomobilizegrowerstoexpandtheirsoybeanbusinesses.

InsuchareasYapasasupportsinputsupplierstobuild

capacityoflocalagro-dealersandformtheirownnetworksofleadfarmers/CADs.Agro-dealersmayserveasoff-takersforfarmers’soyaproduce.Theengagementstrategyincludes:

• Reviewtheagro-dealerqualificationcriteriaandsupporttheinputsupplierstoassesspotentialagro-dealersforselecteddistricts.

• Supporttobecomecomplianttoinputsuppliers’criteriaandsignuppartnershipagreements.

• Supporttoundertaketrainingandskillsdevelopmentofleadfarmers/CADsonbusinessmanagementandtechnicalfarmingpractices.

• Supporttoidentifyandmobilizeleadfarmers/communityagro-dealers.

• Monitorthecommunityagro-dealersperformanceinthefieldandtaketimelyactionontheissuesraised.

FARMER INPUTS VOUCHER MANAGEMENT SYSTEM (FIVMS)

FIVMSsystemdevelopedbyConservationAgricultureScalingUp(CASU),anFAOproject,wasdesignedforfreeinputdistributionandYapasahasaddedacreditmanagementmoduletohelpprovidefinancialtransparencythatwillincreaseconfidenceamonginputsuppliers,outgroweroperatorsandfarmersalike.

Theprojectengageswiththeagro-dealersandinputsupplierstopilotinnovationsandde-risktheirinvestments.

2. YOUTH ENTREPRENEURSHIP

Inorderfortheretobeabeneficialpartnershipwithyoungsmallholderfarmers,Yapasaentersintothepartnershipwithexistingoff-takerstogetherwithinputsuppliersasscaleagents.

Keypartnersare:

INPUT SUPPLIERS

Theseactmoreastechnicalknowledgeproviderswithmonitoringandmentoringrolesatfarmlevel.Theyarealsoexpectedtomaintaintherelationshipwiththecommunityagro-dealers/leadfarmerssoastogetbetterunderstandingofthefarmersandlocallevelfarmingpractices.

OUT GROWER OPERATORS

Thesearethemajoractorsinthisintervention.CADs/lead

farmersaretheirbusinessassociates(branches).Theydirectlysupervisethemthroughtheircorestaffmembers.Outgroweroperatorscanbecomeagro-dealersintheinputsuppliers’networksorworkwithexistingagro-dealersrecognizedbytheinputsuppliers.Yapasahassignedcreditguaranteeswiththeinputsuppliersincaseofdefaultbytheoutgroweroperatorsandthefarmers.Theoutgroweroperatorsagreetopayvariabledepositstotheinputsuppliersinordertogettheinputsoncredit.

Theyareresponsibleformobilizingandcontractingyoungfarmers,channelinginputs,credit,supportservices(suchasmechanisationservices)andtechnical/businesstraining,aggregatingandmarketingtheproduceoftheparticipatingfarmers.

COMMUNITY AGRO-dEALERS/LEAd FARMERS

Thesearelocallevelinputdealersoftheinputsupplychainundercontractwiththeagrodealer/off-takers.Althoughtheyactasinputdistributorsfortheoutgroweroperatorscurrently,thevisionistodevelopthemasautonomousinputdealersinthelocalarea.

3. SOYA SECTOR COORdINATION

FORMATION OF A COORdINATING BOdY

Yapasaidentifiesrelevantstakeholdersacrossthesectorandfacilitatesconversationtoidentifykey(constrainingandencouraging)issueswithintheregulatoryframeworksandenablingenvironment.Forpolicyissuesthataffectthesoyasector,SoyaPolicyActionGroup–SoPAG,providesadvocacyandcommunication.

YOUTH ORGANISATIONS

Yapasaidentifiesandsupportsyouthorganizationsworkinginthefieldofyouthentrepreneurshippromotiontogatherinformationfromyouthsandcommunicateitthroughdifferentfora(e.g.YoungEmergingFarmersInitiative(YEFI).

GOVERNMENT

YapasasupportsrelevantlineministriestoimplementtheactionsproposedbytheSoPAGonthesoyasector.

NATIONAL AGRICULTURAL INFORMATION SERVICE - NAIS

NAIShasplayedaroleinpromotingyouthentrepreneurshipbypublicisingsuccessfulyoungruralentrepreneursthroughnationalandcommunityradio,TVandsocialmedia.

Yapasa is an ILO/ FAO joint UN programme funded by the Government of Sweden that seeks to improve the enterprise capacities of youth in rural areas following the making markets work for the poor (M4P) approach.