ZAMBIA DEVELOPMENT

We are delighted to have formed a strategic partnership with Lifecycle Development Assistance - Zambia.

Zambia is one of the most exciting countries we have been to recently. Bordered by many of the more troublesome African nations, the  country seems like a peaceful haven of democracy and massive economic potential.  Of course copper and tobacco have been, and remain, the mainstays of the economy, but the government is making a concerted effort to tackle infrastructure and diversify the agricultural economy especially in the smallholder sector.

Carl Mallinson of LDA-Zambia looks at tobacco fields
 that the company aims to diversify into food crops

We have allied with LDA-Zambia which is a not-for-profit company set up to bring diversification from tobacco to the large and poor Eastern Province. LDA-Zambia also incorporates Trees For Life, a company that specializes on the propogation of various tree species that are sold to farmers or distributed to charitable or community-based organizations.

We'll provide more information as we begin to work with LDA-Zambia but for the start our focus is on soybean processing - looking at the feasibility for getting a 70 ton/day hexane-based extraction factory back into production. The factory will buy soybeans at a  fair trade price from smallholders and turn them into oil for cooking and protein meal for animal feed.

For more information on LDA-Zambia contact Carl Mallinson on carlmallinson@gmail.com

EAST AFRICA - TANZANIA - SMALLHOLDER LIVELIHOOD DEVELOPMENT

Geoff Q-B has been working in East Africa, in Tanzania and Kenya looking at development possibilities funded by USAID. Part of this work has been to prepare a full Agricultural Assessment of Tanzania that covers every sub-sector and provides guidance for where development funds are likely to go.

Geoff also undertook a trip by road from Nairobi across the international border at Namanga and then past Mounts Meera and Kilimanjaro to Arusha which is the centre of agribusiness in the North of Tanzania. Here's an excerpt from his report:

"The outward trip from Nairobi took 6 hours leaving at 12 noon in a rented Toyota Hilux. The road is adequate. Probably 60 percent completed on both sides of the border, where the Chinese contractors have done their work there is a reasonable two-lane road. Not being a roads engineer I hesitate to pass judgement, but I suspect the overall standard of work is not high; in some place the hard shoulder had already subsided and for much of the new road the drainage seemed inadequate. In the places where the work is on-going, we drove on compacted dirt roads which have not been well maintained either in Tanzania or Kenya (indeed there is no discernible difference between the road – which is the main North-South Highway- in either country). A 4X4 is necessary and I would recommend a slightly more comfortable vehicle than a Hilux.

The border crossing point at Namanga took 2 hours to negotiate on the outward journey. This was due to exit paperwork for the car being processed. Visas were very easy and I was not charged either by Tanzania or Kenya for the entry stamps. The return crossing took less than one hour (because the vehicle was from Kenya)."

Once at Arusha, Geoff met up with Dominick Ringo , Director, Research, Community and Organisational Development Associates (RECODA).

Dominick and Geoff visited one of the smallhoders that RECODA is supporting with funds from the Danish Rockwool Foundation. This farmer (see photo) is one of a local group of 35 farmers that have adopted a model farm approach developed by RECODA. The approximate project fund is $450,000 and the total number of beneficiaries in the project is 400 ($1,125 per farm family). After stakeholder consultations including the district authorities, the project provides a ‘shopping list” of different crops and crop mixes for choice by the farmer. The project provides technical advice, parent livestock (goats and chickens) and seedling (mainly banana). No other subsidies are provided, however the project works closely with the beneficiary on implementation and disseminates the lessons learned throughout the community.

Here's what Geoff reported:

"I was very impressed by the approach (which RECODA is in process of evaluating formally and providing written information about). Of course the farm I was taken to see could have been unique, but I did not form this impression, in any event Dominick Ringo said he could provide all the basic data I needed if I wished to check. The farmer (and his wife) was clearly delighted with the project that had helped them develop a one hectare commercial banana plantation. In addition they grew cassava and had chickens and goats."

Clearly some development projects do work and not necessarily with the huge amounts of money that the major donors seem to require. Well done RECODA!

Note: this assignment was undertaken on behalf of International Relief & Development (IRD)

GEORGIAN AGRICULTURE STRUGGLES TO SURVIVE

We are in Georgia looking at agricultural development (see Note below). In the post-Soviet era agriculture in Georgia declined severely with people falling back on their own resources to survive in a much harsher market-oriented environment. With the dissolution of the large collective state-run farms, more than 2.3 million land titles were distributed. Most families have plots about one hectare in size, enough for self-sufficiency, but well below an economic scale for commercial agriculture. The situation has also been complicated by political problems such as the August 2008 war with Russia.

The wine growing industry is a case in point: Georgia produced most of the wine drunk in the Soviet Union. The quality was not all it might have been, but there was a large and regular market. The dispute over the South Ossetian territory changed that. Georgia now struggles to find a market for its wine, and the vineyards have limited financial resources for upkeep and re-planting.

The fact is that Georgia has a wonderful natural endowment for agriculture; the climate is good, rainfall and water supply plentiful in most parts, the soil is black and fertile. Georgians are hard-working, conservative people. But the rural population is ageing (36% of smallholding owners are over 65 years old) and it is hard to keep young people working on an essentially stagnant sector; self-sufficiency is the overall model, with only 18% of agriculture in the cash economy.

The collapse of the Soviet Union (admittedly now 20 years ago) meant that existing large-scale infrastructure was left to rot and a range of 'public goods' such as roads and main irrigation channels were not maintained. In general, but especially in the mountain areas (that comprise most of Georgia), access to services and markets is very limited.

But the real absence is one of finance. Interest rates are very high (over 25%) and agricultural land is not accepted as collateral. The point about a transition from a centralized, communist economy to a free-market, capitalist economy is that there should in fact be available capital! What is capitalism without capital? The answer is as any Georgian small holder will tell you, a desperate struggle to survive with what you have to hand.

This is not to say that we suggest a major transformation of agriculture in Georgia. There may be parts (e.g., along the central corridor, in the lowlands of the coast and in the east) where a commodity approach can be taken. But for the majority living in the fertile, Caucasian uplands, smallholding is a sustainable model. However it desperately needs support and the question we are trying to answer is how should that support might be delivered.

Note: Geoff Quartermaine Bastin is contracted by International Relief & Development (IRD) for this assignment. IRD is a major not-for-profit company and charitable institution based in Washington DC and has operated in Georgia for the last 10 years supporting various aspects of humanitarian relief and economic development activities. Check out http://www.ird.org/

Photo: vineyards in Central/East Georgia