Category: agri-bussiness

The hidden cost of the time lag between marketing and consumption of commodities

Posted on by eMKambo

One of the most misunderstood aspects of agricultural value chains in most developing countries is the time lag between marketing and consumption of agricultural commodities. While for farmers, supplying commodities and getting paid immediately is the most important thing, a lot happens between marketing and consumption. The way middlemen are blamed as if they stand Read more about The hidden cost of the time lag between marketing and consumption of commodities[…]

Using the market to cultivate a global mindset among farmers and entrepreneurs

Posted on by eMKambo

One of the most seductive assumptions in African agriculture is that farmers and aspiring agricultural entrepreneurs can succeed through following a specific set of steps. However, as markets become highly networked and competitive, success no longer just depends on what a farmer or an entrepreneur does but on the actions of rivals or competitors. Unless Read more about Using the market to cultivate a global mindset among farmers and entrepreneurs[…]

The power of an end to end view of agricultural value chains

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Very few actors in African agriculture can see the entire value chain and its nodes. As a result, production activities continue to be based on guesswork. In most cases, some traders who have been in the marketing game for a long time have more knowledge about the value chain than farmers.  Many traders often pre-finance Read more about The power of an end to end view of agricultural value chains[…]

Moving decision making closer to points of impact and knowledge

Posted on by eMKambo

In most developing countries, decisions that affect farmers and rural communities are often made by policy makers and development agencies who do not reside in those communities. However, digital technologies are revealing the benefits and possibilities of improving the quality of services by moving decision-making to where impact is felt. For instance, using mobile phones Read more about Moving decision making closer to points of impact and knowledge[…]

How external expertise can undermine local community knowledge

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Many rural communities in developing countries are now more familiar with external experts and consultants who visit them to ask questions about their situation and go away never to be seen again. Using consultants and external experts to gather information or conduct evaluations is not an entirely bad idea. Outsiders can sometimes better see what Read more about How external expertise can undermine local community knowledge[…]

Overcoming the limitations of membership based organizations

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Like other arrangements that make sense on the surface, African agriculture and rural development efforts are characterized by membership-based organizations. These range from farmer unions and diverse sizes of cooperatives to chambers of commerce. While coming together for collective bargaining purposes makes a lot of sense, members should be aware of several blind spots. After Read more about Overcoming the limitations of membership based organizations[…]

How market price is not a major determinant of profit in agribusiness

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A keen interest by African farmers to know the price of commodities on the market is understandable. However, tracking activities in informal agricultural markets by eMKambo over the past few years has proved that price is not a major determinant of profit-making in agribusiness. Profit-making is a result of creatively managing production costs, quality, losses Read more about How market price is not a major determinant of profit in agribusiness[…]

How the market can inform better farmer characterization

Posted on by eMKambo

In a rapidly changing knowledge economy, it no longer makes sense to continue characterizing farmers in developing countries by the size of land on which they produce agricultural commodities. Informal agriculture markets provide various ways through which African farmers can be characterized beyond the smallholder, communal, commercial and other forms which are becoming inadequate. For Read more about How the market can inform better farmer characterization[…]

How developing countries over-rate foreign currency

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Many African developing countries have a deliberate bias towards exports in the hope that this can bring foreign currency that is expected to stimulate economic development. However, it seems foreign currency is a preserve of the elite who have developed a taste for foreign toys like large vehicles, expensive furniture, clothes, wine and other expressions Read more about How developing countries over-rate foreign currency[…]

Using market evidence to protect smallholder farmers from price variability

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That most African smallholder farmers can produce enough commodities for household consumption and surplus for the market is now beyond question. The majority of committed farmers have mastered the art of producing almost any commodity.  What remains outside their control are market dynamics such as prices as well as supply and demand trends. The situation Read more about Using market evidence to protect smallholder farmers from price variability[…]