NAFAKA_Annual_Reports__Attactment__10.pdf

STAPLES VALUE CHAIN NAFAKA

ACTIVITY

TASK ORDER NO. AID-623-I-10-00001

ANNUAL PERFORMANCE REPORT: October 1, 2011 – September 30, 2012

OCTOBER 31, 2012

This publication was produced for review by the United States Agency for International Development. It was prepared by ACDI/VOCA in compliance with the terms and conditions of Task Order No. AID-623-1-10-00001.

STAPLES VALUE CHAIN NAFAKA

ACTIVITY

TASK ORDER NO. AID-623-I-10-00001

ANNUAL PERFORMANCE REPORT (2011/2012)

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

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Table of Contents

1. Introduction

1.1 NAFAKA OVERVIEW

1.2 FY2012 HIGHLIGHTS

1.3 NAFAKA PROJECT TEAM AND PARTNERS

1.4 TARGET GROUP AND OPERATIONAL AREAS

1.5 NAFAKA RESULTS FRAMEWORK

2. Implementation Progress

2.1 NAFAKA OVERVIEW

2.2 ENTRY POINT: FACILITATE DEVELOPMENT OF THE KILOMBERO RICE PLANTATIONS OUTGROWER SCHEME

2.3 ENTRY POINT: STRENGTHEN THE UWAWAKUDA WATER USERS COOPERATIVE – DAKAWA

2.4 ENTRY POINT: STRENGTHENING IRRIGATED AND RAIN-FED REGIONS IN KILOMBERO/MVOMERO DISTRICTS

2.5 ENTRY POINT: IMPROVING THE MAIZE VALUE CHAIN IN KONGWA AND KITETO DISTRICTS

2.6 TANZANIA RICE PARTNERSHIP (TARIPA) COORDINATION ACTIVITIES

2.7 INCREASING INCOMES FOR VULNERABLE GROUPS

2.8 SHORT TERM CONSULTANCIES

3. Cross-cutting Issues

3.1 GENDER INTEGRATION

3.2 BEHAVIOR CHANGE COMMUNICATION (BCC)

3.3 ENVIRONMENTAL COMPLIANCE AND NATURAL RESOURCE MANAGEMENT

3.4 MONITORING AND EVALUATION

3.5 PERFORMANCE INDICATORS ANNUAL ACHIEVEMENTS STATUS

4. Stakeholders Participation in Project Activities

5. Management and Staffing

6. Challenges and Constraints

7. Planned Activities for the Next Year Annex: NAFAKA PMP

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List of Acronyms AGRA Alliance for a Green revolution in Africa AIRD Associates for International Resources and Development BRITEN Building Rural Incomes Through Enterprise CDM Clean Development Mechanism CGA Cereal Growers Association CRS Catholic Relief Services ETG Export Trading Group FFD Farmer Field Days FIPS Farm Input Promotions-Africa FtF Feed the Future GAFSP Global Agriculture and Food Security Project GoT Government of Tanzania iAgri Innovative Agricultural Research Initiative IFDC International Fertilizer Development Center IPRS Implementing Partner Reporting System JICA Japanese International Cooperation Agency KATC Kilimanjaro Agriculture Training Center KVTC Kilombero Valley Teak Company MAFC Ministry of Agriculture, Food Security and Cooperatives MBNP Mwanzo Bora Nutrition Project MOU Memorandum of Understanding MVIWATA Mtandao wa Vikundi vya Wakulima Tanzania OSU Ohio State University Consortium PERSUAP Pesticide Evaluation Review and Safe Use Action Plan RUDI Rural and Urban Development Initiative SAGCOT Southern Agricultural Growth Corridor of Tanzania SILC Savings and Internal Lending Communities SRI System for Rice Intensification TAPP Tanzania Agriculture Productivity Project TIB Tanzania Investment Bank TOSCI Tanzania Official Seed Certification Institute UDP Urea Deep Placement technology VBAAs Village Based Agricultural Advisors WFP World Food Program YOSEFO Youth Self-Employment Foundation

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List of Tables Table 1: The ACDI/VOCA NAFAKA Team and Partner Roles Table 2: NAFAKA Project Operational Areas Table 3: NAFAKA Results Framework Table 4: Training Numbers in Kilombero (Outside KPL) Table 5: Farmers Associations and Members in Kilombero Clusters (Outside KPL) Table 6: Training Numbers in Mvomero Table 7: Total Update on SILC Group Formation and Membership (Sept 30th 2012) Table 8: Group Savings and Loan Disbursed per Cluster Table 9: Field Agent Performance per Year Table 10: Loan Disbursement Segregated by Gender Table 11: Number of Beneficiaries Reached by the Project as of 30th September 2012 Table 12: Number of Individuals Received USG Supported Short-Term Agricultural Sector Productivity or Food Security Training (FTF-4.5.2-7) by District by Gender as at 30th September 2012

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1. Introduction

ACDI/VOCA is pleased to present the first Annual Performance Report under the Tanzania Staples Value Chain Project – NAFAKA. This Annual Performance Report describes NAFAKA’s achievements and challenges experienced during the first full fiscal year of this five year initiative. It is submitted in compliance with the terms and conditions of Task Order No. 623-I- TO-10-00001, and describes activities undertaken during the period from October 1, 2011, through September 30, 2012. A performance report submitted October 30th 2011 covered NAFAKA activities from April 8th 2011, when the Task Order was executed, through September 30, 2011. This Annual Performance Report is intended to complement the NAFAKA 2nd Annual Workplan, submitted under separate cover and which describes activities to take place during the period October 1, 2012 thru September 30, 2013.

1.1 NAFAKA Overview

In NAFAKA’s Year One Annual Workplan, we identified key entry points on which to focus activities during the first year of the project. Our key entry points in Year One were:

1. Facilitate the development of the Kilombero Rice Plantation (KPL) outgrower scheme;

2. Develop the Uwawakuda Water Users Cooperative in Dakawa, an association linked to a rehabilitated irrigation scheme;

3. Provide market-based support for the rice sub-sector in Zanzibar;

4. Increase productivity and encourage market linkages in the irrigated and non-irrigated areas of Kilombero and Mvomero (rice-growing) districts; and

5. Increase productivity and encourage market linkages in Kongwa and Kiteto (maize-growing) districts.

These entry points established NAFAKA’s presence in specific project areas, enabling quick wins in the short-term while laying the foundation for more sustainable long-term impacts. In Year One, as instructed by the Mission, we focused primarily on activities in the rice value chain, but also began activities in the maize value chain. The only entry point in which we have yet to begin activities is in Zanzibar. Activities have been postponed while we await USAID guidance on whether to target irrigated or non-irrigated areas on the island.

NAFAKA has project offices in Dar es Salaam (representational and administrative office), Morogoro (technical office), and satellite offices in Ifakara (covering southern project areas) and Kibaigwa (covering northern project areas). At present, NAFAKA has 70 professional and support staff, to include 44 direct ACDI/VOCA employees and 26 subcontractor employees.

1.2 FY2012 Highlights

The NAFAKA project designed its FY2012 activities to promote quick wins in the first year while establishing the groundwork for longer-term activities to promote sustainable change in

NAFAKA Annual Performance Report: April 2011 – September 2012 | 7 the rice and maize value chains. The following is a non-exhaustive summary of NAFAKA’s successes and activities during the first full year of operation:

• We have forged a dynamic public-private partnership with a major investor in the SAGCOT region – Kilombero Plantations Limited (KPL) – resulting in smallholder adoption of innovative production technologies and the formation of 10 farmer associations. Over 1,600 producers involved in project activities at KPL have seen significant increases in yields and improved quality. In addition, NAFAKA has facilitated the involvement of prominent credit service providers YOSEFO and the National Microfinance Bank, facilitating KPL’s initiative to develop a formal outgrower scheme.

This activity is consistent with the NAFAKA mandate to ensure its interventions are private-sector led and owned, and driven by its demands.

• NAFAKA has been at the forefront of establishing the Tanzania Rice Partnership (TARIPA) as a credible focal point for information-sharing, coordination and communication among TARIPA members that include the SAGCOT Centre, YARA Tanzania, Syngenta International, ByTrade, Monsanto East Africa, KPL, RUDI, YOSEFO, AGRA, and others. A particular highlight was assisting input supply companies to formulate a common strategy for developing input dealer networks designed to increase farmer access to essential input products and services.

• In collaboration with the Feed the Future SERA initiative, NAFAKA prepared a major white paper entitled “Policy Options for Increasing Tanzanian Exports of Maize and Rice in East Africa while Improving its Food Security for the Year 2025,” to present policy alternatives to export bans for promoting food security.

Recommendations included the elimination of export bans and import/export permits, revision of the current system for identifying food assistance needs, concentrating operations of the National Food Reserve Agency (NFRA) on emergency food assistance, and greater coordination among East Africa Community (EAC) members to reduce tariffs on rice imports.

• NAFAKA is building the capacity of the Uwawakuda Water Users’ Cooperative of Dakawa. This compliments the Feed the Future Infrastructure Project’s work in rehabilitating the Dakawa irrigation scheme. To increase farmer margins, NAFAKA developed a seven-acre model farm used to train farmers of the 954-member Uwawakuda Water Users Cooperative of Dakawa in improved production technologies and practices. This activity was carried out in close collaboration with the Japanese International Cooperation Agency (JICA) and the Kilimanjaro Agricultural Training Center (KATC). NAFAKA is also building the financial management capacity of Uwawakuda through a grant agreement that is establishing financial and administrative systems and procedures, internal controls, and computerized record-keeping.

• In Kilombero and Mvomero districts, NAFAKA supported rice value chain activities in Kilombero district through formation of 19 farmer village associations comprised of 3,227 farmers, of whom between 33%-50% are women. Training was conducted for these farmers in marketing, leadership, post-harvest handling, storage and warehousing, crop banking, business management and collective marketing skills.

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• We assisted the Kongwa Cereal Growers Association (KCGA) to satisfy a forward contract with the World Food Program’s Partnership for Progress (WFP-P4P) program for 60 MT of maize through technical assistance in production and post-harvest handling. KCGA’s success in meeting the terms of this contract is expected to result in a larger contractual commitment with P4P in the coming year.

• NAFAKA is developing a wide network of village-based agricultural advisers (VBAAs) who facilitate localized demonstrations at the village level using inputs provided by input supply companies. These VBAAs are entrepreneurial agronomists motivated to demonstrate and promote inputs re-packaged in sizes appropriate for smallholders as a way to generate demand in order to ultimately become fee-for-service rural input providers and extensionists. At present, we are working with more than 100 VBAAs, each of whom is projected to reach an average of 250 farmers per year.

• Through 160 demonstration plots, which were facilitated by NAFAKA and sponsored by private sector input suppliers, NAFAKA demonstrated improved seed varieties, fertilizers and good agricultural practices to over 5,000 farmers. NAFAKA also used the demos as platforms for training in integrated soil fertility management, post-harvest and on-farm storage, and application of Urea Deep Placement technology.

• Commitments have been received during this reporting period from six prominent input suppliers in Tanzania (Yara, Syngenta, ByTrade, TANSEED, Minjingu and SEEDCO) to demonstrate their products and provide extension services on more than 400 rice and maize demonstration plots projected for the 2012-2013 agricultural season.

• To increase resiliency in NAFAKA focused villages, we formed 48 savings and internal lending communities (SILCs), using the model developed by NAFAKA subcontractor CRS. These 48 SILC’s are comprised of 913 individuals who are members of vulnerable groups in Kilombero district. The cumulative value of savings has reached more than TSh. 30 million, with the value of loans exceeding TSh. 26 million. Members of SILC groups use their loans for income generating activities, including family gardens to improve nutritional intake, and to finance critical family needs.

• In line with the USAID Forward mandate to strengthen local institutions, NAFAKA is building the capacity of Tanzanian partner organizations RUDI, MVIWATA, and regional partner Farm Input Promotions Africa (FIPS) to administer USAID funds while delivering essential services to farmers and producer associations in project areas.

• Gender integration is an integral cross-cutting initiative of NAFAKA. The NAFAKA Gender Specialist led sensitization sessions in the villages in which we work, in coordination with representatives of our productivity, association development and marketing specialists. This ensures that women are offered equal opportunities to participate in project activities. Just under half of NAFAKA beneficiaries reached during year one were women. NAFAKA also conducted a gender integration workshop involving the range of FtF implementing partners, resulting in individual gender implementation plans for each IP.

• NAFAKA has developed comprehensive behavior change communications (BCC) strategy with key messages currently being tested to promote priority behaviours for

NAFAKA Annual Performance Report: April 2011 – September 2012 | 9 the coming growing season. These include adoption and adaptation of land preparation and space planting methods, increased use of quality and certified seeds and appropriate fertilizers, and conservation agriculture methods. BCC efforts under NAFAKA are spearheaded by our subcontractor Danya International.

• In April 2012 we completed a comprehensive baseline study comprised of interviews with 2,000 households, including 1,200 in Kongwa and Kiteto districts and 800 in Kilombero and Mvomero districts. The NAFAKA Performance Management Plan (PMP) continues as a work in progress, currently comprised of 24 FtF and custom indicators. Instrumentation has been developed with data being collected on an ongoing basis, but it appears that the PMP will require further modification based on input from the Monitoring and Evaluation project managed by The Mitchell Group.

• We submitted a Pesticide Evaluation Review and Safe Use Action Plan (PERSUAP) to USAID in August 2012. As the reporting period drew to a close, NAFAKA was preparing to address the SUAP portion of this document, to include GAP/IPM, addressing pesticide regulations and restrictions, risk awareness and mitigation, and other project management responsibilities. In addition, NAFAKA will pursue activities with the potential for results to go beyond compliance and increase farmer capacity to mitigate the effects of climate change, such as conservation agriculture.

1.3 NAFAKA Project Team and Partners

The successes of Year One could not have been achieved without the efforts of our entire NAFAKA consortium. Each of our subcontractors brings a unique perspective, and their broad experience has helped deliver results across NAFAKA activities. The NAFAKA consortium includes both local and international subcontractors:

Local and regional subcontractors:

i. Farm Input Promotions-Africa (FIPS) – Brings innovative extension methodology for the dissemination of improved technologies, inputs and skills to rural farmers.

ii. Rural and Urban Development Initiative (RUDI) – Provides leadership training and capacity building of producer associations in three districts of Kilombero district.

iii. Mtandao wa Vikundi vya Wakulima Tanzania (MVIWATA) – Provides leadership training and capacity building of producer associations in irrigated and non-irrigated areas of Mvomero district.

International subcontractors:

i. International Fertilizer Development Center (IFDC) – Offers its extensive experience in the development of commercial agro-input systems and agro-dealer networks.

ii. Kimetrica – Conducted NAFAKA baseline study and strengthens NAFAKA M&E efforts.

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iii. Catholic Relief Services (CRS) – Addresses the unique needs of the most vulnerable through facilitating the development of savings and internal loans communities for the purpose of integrating them into the economic mainstream of their communities.

iv. Danya International – brings behavior change communications methodologies to promote adoption of new technologies, facilitate learning, and contribute to overall project outcomes.

v. Crown Agents –Addresses trade and transport related constraints in the value chains.

Currently conducting a mapping assessment of rural warehouses in the maize and rice-growing areas to allow NAFAKA to develop a strategy for warehouse upgrading.

vi. Associates for International Resources and Development (AIRD) – Performs policy analysis to address constraints to regional and domestic trade.

Table 1 illustrates subcontractor roles by project component:

Table 1: The ACDI/VOCA NAFAKA Team and Partner Roles

Component I: Value Chain Analysis and Strategy Development

ACDI/VOCA, Match Maker Associates, with input from all partners

Component II: Improved Competitiveness and Trade ACDI/VOCA, IFDC, RUDI, MVIWATA

Component III: Improved Productivity ACDI/VOCA, IFDC, FIPs-Africa, RUDI, MVIWATA

Component IV: Increased Incomes for Vulnerable Groups

CRS, ACDI/VOCA

Targeted Short Term Technical Assistance Crown Agents, AIRD

Behavior Change Communications/M&E Support Danya, Kimetrica, ACDI/VOCA

1.4 Target Group and Operational Areas

NAFAKA connects smallholder farmers and the groups that represent them to services along the value chain that allows them greater access to markets. These services include extension and advisory services, access to finance, improved production and post-harvest handling technologies, access to inputs, association development, and other services along the value chain

NAFAKA projects that 80,000 smallholder farmers will be reached over the life-of-project who will have improved capacity in applying agricultural technologies, entrepreneurial and business development skills, post-harvest practices, strengthened linkages with service providers and, ultimately, markets.

In Year One, NAFAKA project interventions were implemented in 76 villages in Kilombero, Mvomero, Kongwa and Kiteto districts. Table 2 shows the breakdown of villages by district.

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Table 2: NAFAKA Project Operational Areas

Source: M&E System, 1st October 2012

1.5 NAFAKA Results Framework

The NAFAKA Monitoring and Evaluation approach is results-based, with indicators, data collection and analysis based on the results framework contained in Table 3 below. Note that this table was used for the first year of project implementation, but is currently being refined in consultation with the Feed the Future M&E project.

Table 3: NAFAKA Results Framework IR_1 Improved agriculture productivity

IR_1.1 Adoption of new farming technologies

IR_1.1.1 Improved and expanded extension delivery mechanisms

IR_1.1.2 Increased exposure of farmers to quality inputs, good farming practices, and mechanization

IR_1.2 Reduced waste in maize and rice supply chain

IR_1.2.1 Improved storage capabilities and options

IR_1.2.2 Improved knowledge of farm management

IR_2 Expanding markets and trade

IR_2.1 Diversification and strengthening of rice/maize service market

IR_2.1.1 Strengthened capacity of relevant service providers

IR_2.1.2 Develop and strengthen inter-firm linkages between value chain actors

IR_2.2 Reduced barriers to smallholder participation in markets

IR_2.2.1 Increased exposure of famers/producer groups to market opportunities

IR_2.2.2 Improve the quality and consistency of smallholder output

IR_2.3 Increased utilization of agriculture financial services by value-chain actors

IR_2.3.1 Increased access/availability of financing for value chain actors

IR_2.3.2 Improved management practices of buyer/seller groups within trade sector

Source: M&E System, 1st October 2012

Districts Clusters Villages

Kilombero 1. Ifakara North, 1.Igima,2.Mofu,3.Vigaeni,4.Miwangani,5.Kisegese

2. Mlimba 1.Mlimba A,2.Mlimba B,3.Kalengakelu,4.Mpanga,5.Ngalimila

3. Mang’ula 1.Mwaya, 2. Mgudeni and 3. Kanyenja

4. KPL-exclusive zone 1.Njage,2.Mchombe,3.Lukolongo,4.Mngeta,5.Mkangawalo,6.Ikule,7.Chita,8.Merera, 9.Udagaji,10.Kamwene

Mvomero 5. Dakawa( Uwawakuda) 1.Wami Dakawa irrigation scheme, 2. Wami luhindo, 3.Milama

6. Mvomero 1.Mvomero,2 . Misufini, 3.Hembeti, 4. Dihombo, 5. Mkindo 6. Mgongola

Songati Ward -7. Kigugu, 8. Mbogo, 9. Komtonga, Mtibwa Ward – 10. Lukenge

Kanga Ward-11. Dihinda

Diongoya Ward 12. Digoma

Kongwa 7. Kongwa 1.Pandambili,2.Chamkoroma,3.Lenjulu,4.Kibaigwa,5.Ndulugumi,6.Iduo,7.Vihingo,8.Nd alibo,9.Mtanana,10.Songambele,11.Chang’ombe,12.Hogoro,13.Chamae,14.Nyerere,1 5.Chigwingili,16.Ngomai,17.Njoge,18.Hembahemba,19.Manyata,20.Kinangali.

Kiteto 8. Kiteto 1.Dosidosi,2.Esuguta,3.Njoro,4.Magungu,5.Bwagamoyo,6.Olgire,7.olgira,8.Engusero,9 Matui,10.Nhat,11.Dongo,12.Sunya,13.Emart,14.Asamatwa,15.Mbigiri,16.Ndilal,17.Nchi nila,18.Kibaya

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2. Implementation Progress

2.1 NAFAKA Overview

The NAFAKA Staples Value Chain Activity is funded by USAID under the Tanzania Feed the Future (FtF) Initiative. It integrates agricultural, gender, environment and nutritional development efforts to improve smallholder farmer productivity and profitability within the maize and rice value chains in the regions of Morogoro (Kilombero and Mvomero Districts), Dodoma (Kongwa district), and Manyara (Kiteto District). The goal of the NAFAKA project is to sustainably reduce poverty and food insecurity by increasing incomes for smallholder farmers that include men, women and youth.

NAFAKA sustainably fosters economic growth in order to reduce poverty and hunger by improving the competitiveness and productivity of the smallholder-based rice and maize value chains. Overall, NAFAKA is:

• Improving the competitiveness and productivity of maize and rice value chains;

• Facilitating improved domestic and regional trade;

• Expanding the depth and breadth of benefits from the growth of the maize and rice subsectors, including increased benefits to women and youth; and

• Enhancing rural household nutrition by promoting women-focused value chain development and improved consumption of a quality diet.

In NAFAKA’s Year One Annual Workplan, we identified key entry points on which to focus activities during the first year of the project. Our key entry points in Year One were as follows:

1. Facilitate the development of the Kilombero Rice Plantation (KPL) outgrower scheme;

2. Develop the Uwawakuda Water Users Cooperative in Dakawa, an association linked to a rehabilitated irrigation scheme;

3. Provide market-based support for the rice sub-sector in Zanzibar;

4. Increase productivity and encourage market linkages in the irrigated and non-irrigated areas of Kilombero and Mvomero (rice-growing) districts; and

5. Increase productivity and encourage market linkages in Kongwa and Kiteto (maize-growing) districts.

These entry points established NAFAKA’s presence in our project areas, enabling quick wins in the short-term while laying the foundation for more sustainable, longer-term impacts. In Year One, as instructed by the Mission, we focused primarily on activities in the rice value chain, but also began activities in the maize value chain. The only entry point in which we have yet to begin activities is in Zanzibar. Activities have been postponed while we await USAID guidance on whether to target irrigated or non-irrigated areas on the island.

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2.2 Entry Point: Facilitate Development of the Kilombero Rice Plantations Outgrower Scheme

At the onset of activities, NAFAKA and KPL signed a Memorandum of Understanding outlining the broad parameters of our collaboration that included a joint team of extensionists and association development specialists. Currently the team is comprised of three extension staff and one association development adviser from NAFAKA and three extension staff from KPL.

NAFAKA has added a fourth extensionist and second association development specialist for Year Two of collaboration. This joint KPL-NAFAKA team is viewed by producers as one operating unit providing training and technical assistance services.

Agricultural Productivity:

NAFAKA and KPL staff collaborated on activities promoting improved agricultural practices and business skills, resulting in increased productivity.

NAFAKA disseminated knowledge though demonstration plots in the KPL zone. 59 demonstration plots were established within the 10 villages comprising the KPL zone that are using System of Rice Intensification technology. SRI is a conservation agriculture technology involving selection of improved seed, land preparation, seed spacing, fertilizer application, weed control and harvest technology. A total of 1,576 outgrowers received NAFAKA training during this reporting period: 1,350 farmers received training in SRI technology and an additional 226 received finance and credit training from YOSEFO. KPL trained these 226 outgrowers in SRI technology prior to NAFAKA’s involvement. We are optimistic of achieving our target to increase this number to 2,700 beneficiaries in 2013 and 5,000 by 2014-2015.

The project has also provided training and technical assistance throughout the year to producers in KPL villages in business management, farm credit and marketing, seed germination testing, benefits of nursery versus direct seeding, land leveling, creating bands for better water control management, nursery establishment, stages of paddy production, efficient use of rotary weeders, fertilizer application techniques and benefits of Urea Deep Technology (UDP) against nitrogen loss.

The average yield for the demo plots was 5.1 tons/ha. This is significantly higher than the baseline figure of 1.5 tons per ha from producers using more traditional methods. While the yields under demonstration plots represent ideal conditions of farm management, it is anticipated that the demo plot results will encourage farmers to adopt those practices. Data collected next year from individual farmers’ plots should show marked improvement due to adaptation of the practices and technologies promoted by the project.

In addition to trainings and demo plots, NAFAKA organized Farmer Field Days (FFDs) in Chisano, Udagai, Mngeta and Mkangawalo villages within the KPL zone. Producers from all 10

ENGAGEMENT OF YOUTH

NAFAKA extended SRI technology training efforts to primary and secondary schools to provide exposure to good agricultural practices among future farmers.

Two demonstration plots were established in secondary schools and one in a primary school.

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KPL outgrower villages attended. FFD is an approach for disseminating knowledge and influencing the adoption of farming technologies among smallholder farmers. The FFDs allowed farmers to share knowledge of the new SRI technology and good agricultural practices with fellow farmers, and they encouraged farmers who did not participate in the Year One activities to form new groups in the subsequent seasons. NAFAKA staff, YARA agronomists and local government officials facilitated the FFDs. Key participants of the field days were farmers involved in demonstration plots in which SRI technology, seed varieties and fertilizer application were demonstrated.

Association Development:

NAFAKA facilitated the formation of 10 village associations from 59 producer groups, representing a total of 1,161 farmers within the KPL exclusive zone. This figure represents only the number of active members of the associations. The difference between the number of active association members (1,161) and the total number of farmers receiving training (1,576) reflects reluctance by some farmers (415) to join the associations because of distrust of associations, complex registration procedures, or lack of capacity to pay the registration fees.

All 10 of the associations are now fully legal and have received official registration certificates from the relevant authorities. Training was conducted on leadership, the representational function of an association, services to be offered, and financial management. NAFAKA will continue to support these associations by facilitating capacity building in marketing, governances, farming as a business, gender equity and warehouse/storage administration.

Access to Finance:

In October/November 2011, NAFAKA facilitated loans and entrepreneurship training for 226 farmers in the KPL zone. NAFAKA engaged the Youth Self-Employment Foundation (YOSEFO), a Tanzanian financial services provider, to provide entrepreneurship, business skills, and loan management training to the farmers. YOSEFO then accepted that training in lieu of lending history when considering farmers for loans. As a result of the training, 148 of the 226 participants trained applied for and received SRI working capital loans of TShs. 360,000 each. 43 of the loan recipients (29 percent) were women producers. A total of TSh. 53,280,000 (some cash, some in-kind in the form of seeds and fertilizer) was lent to the 148 outgrowers and, at present, we are advised by YOSEFO that just under TSh. 7 million (approximately 13% of the portfolio) remains outstanding. YOSEFO has experienced collection problems caused by an inadequate number of collection agents in the field. Collection efforts continue, and we expect to verify the final collection rate early in the next reporting period. The KPL associations provided a mutual guarantee of the loans, which were also collateralized by the borrower’s possessions. Each farmer repaid in 100 kg bags of rice to KPL. Fourteen bags are required to pay off the loan (principal and interest) and 33% of the cost of the SRI tools. The SRI smallholder produced on average 20-30 bags per SRI acre. Thus, after paying off the loan, smallholder had an average surplus of 6-16 bags, plus the production of between 1-1.5 acres still devoted to the traditional production system.

78 farmers who received training opted not to receive loans for the following reasons: (a) bad experience from other lending organizations like SACCOS which offer unfavorable lending

NAFAKA Annual Performance Report: April 2011 – September 2012 | 15 conditions; (b) some women refused to accept loans because they indicated their husbands were opposed, largely due to fears of losing their possessions for failure to repay; and (c) some farmers planned to use the loans for non-agricultural purposes, like motorcycles, and the partial in-kind aspect of the loans caused some to lose interest.

For Year Two, NAFAKA expects to scale up these lending activities and encourage other financial institutions to partake in agricultural lending. NAFAKA has engaged in a competitive process to select the organization to provide credit training and lending services to the 1,600 smallholders who have been trained in the SRI technology for the coming year. Both YOSEFO and NMB have been selected, although YOSEFO elected to provide the credit training with its own resources, citing problems in the loan delivery and collection process during the first year of operation. YOSEFO will target the 148 farmers who received loans last year in addition to 400 new farmers, with NMB to serve the remainder.

2.3 Entry Point: Strengthen the Uwawakuda Water Users Cooperative – Dakawa

NAFAKA’s efforts with the Uwawakuda Water Users Cooperative Society are closely coordinated with USAID’s planned reconstruction of the Dakawa irrigation scheme. As such, this comprises a three-pronged collaboration strategy which involves:

1. USAID performing the infrastructure improvements;

2. NAFAKA building the capacity of Uwawakuda to operate as a more efficient and transparent market-driven and business-oriented cooperative; and

3. NAFAKA-JICA jointly sponsored training by the Kilimanjaro Agricultural Training

Center (KATC) in improved water management, water distribution and drainage techniques, and efficient management of the pump station.

A Memorandum of Understanding between Uwawakuda and NAFAKA outlines the parameters for our cooperation as well as the activities designed to build the cooperative’s capacity to function as a viable market-driven and business-oriented entity. The MOU was endorsed by the Cooperative Registrar in Dodoma, Board members and all members of the organization.

Specific interventions during this reporting period include:

Agricultural Productivity

NAFAKA reached out to producers in the Uwawakuda cooperative through training of trainers (ToT), Farmer Field Days (FFD), and through a model farm. NAFAKA engaged KATC to provide productivity training with topics such as: rice transplanting and the use of weeder implements, pre- and post-harvest handling, and marketing practices to reinforce adoption of good farming practices. The training was tailored to address some practical issues and gaps identified in a comprehensive situational study of the scheme carried out by the training institution, KATC. NAFAKA sponsored a total of 28 farmers and board members of Uwawakuda irrigation scheme to attend a standard training on rice farming. Through a project backstopped by KATC and closely monitored by NAFAKA, the 28 farmers in turn trained a total of 143 intermediary farmers.

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In addition to trainings, NAFAKA established a seven hectare model farm and seed production plot at the irrigation scheme. The cooperative allocated 3.4 hectares of this farm to demonstrate technology transfer (fertilizer type, seed production, etc.) and improved practices for productivity of rice, and to provide training for extension agents and farmers. Activities included the construction of raised beds and planting alternative crops for nutritional purposes to determine which crops performed best in wet conditions after paddy harvest. The tested alternative crops included pigeon peas, cow peas, maize, sesame, sun-flower, soya and onions.

NAFAKA technical staff also conducted an FFD at the model farm. Attendees included cooperative members from Dihombo, Hembeti, Mvomero, Milama, Wami Luhindo and Dakawa villages. YARA and Syngenta representatives also attended to demonstrate and market their products to farmers. In addition, trials employing Yaramila cereal fertilizer, urea and Yaramila Nitrabor were also applied to the paddy seed trial production plots at the model farm.

Favorable outcomes on the model farm from use of these fertilizers are expected to generate farmer demand for such fertilizers in the coming seasons.

Association Development:

For Uwawakuda Water User’s Association to operate as a business and market oriented cooperative, NAFAKA is building their institutional capacity by providing technical assistance to establish financial and administrative systems. Through an in-kind grant to the cooperative, NAFAKA is providing consultant services to train a Uwawakuda-hired accountant in their operations, and is installing computerized financial management and administrative systems.

Uwawakuda’s contribution included covering the cost of office space and the salaries of their participating members that include an assistant accountant and a cashier. The consultancy commenced upon receipt of the audit reports from the Association. The remaining in-kind grant from NAFAKA is providing essential office equipment and furnishings, to be installed once the cooperative completes the renovation of its offices. The grant involves a NAFAKA in-kind contribution of TSh. 47,300,000, with a Uwawakuda contribution of TSh. 23,200,000.

Access to Finance:

NAFAKA is developing an MOU with the Tanzania Investment Bank (TIB) as an initial step to provide financing to value chain players in this region. This will be finalized in the next reporting period.

NAFAKA has attempted to assist Uwawakuda members in accessing finance by facilitating the use of warehouse space at TANRICE Mills for inventory credit purposes. TANRICE Mills is a

PRODUCTIVITY SUCCESS

Feedback received from farmers interviewed during training follow-up visits indicates that overall, the average yield per acre has increased significantly from 2 tons per ha to 5 tons per ha (this is average of sample of 50 interviewed farmers).

This average is likely to increase for the next crop season as farmers will have ample time to plan and adopt the imparted technologies.

NAFAKA Annual Performance Report: April 2011 – September 2012 | 17 large and considerably under-utilized rice milling facility. Initial discussions were held with the Quality Group owners of TANRICE Mills to explore possibilities for collaboration to provide warehousing and milling support to Uwawakuda, as well as to supply mechanization equipment.

Further exploration is necessary, and efforts to assist the cooperative to gain access to this facility will continue into the next project year.

Public Relations:

The successes of project interventions in Dakawa have prompted several visits by senior USAID and Embassy officials as well as private sector players. NAFAKA assisted the Embassy and Mission to organize a press tour to the cooperative; the tour included visits to our model farm and to one of the eight Progressive Farmers. This visit brought substantial publicity in print, broadcast and electronic media in Tanzania.

NAFAKA also assisted in the organization of a visit by the Yara board of directors and senior management to the Uwawakuda model farm. The purpose of this was to promote a buyer-seller relationship between Yara and the cooperative. Indeed, Yara had expressed interest in establishing a small outlet for its products at the cooperative. This remains to bear fruit, however.

2.4 Entry Point: Strengthening Irrigated and Rain-Fed Regions in Kilombero and Mvomero Districts

One of the goals of NAFAKA is to build capacity through improving productivity levels of smallholder farmers, increasing their incomes and food security. In addition to working around the irrigation scheme at KPL, NAFAKA is working with rice-growers in irrigated and rain-fed areas within the Kilombero and Mvomero district. Interventions in Year One included association development, improved seed production projects, developing urea-deep placement technology and progressive farmer identification. Specific sub-activities include:

Kilombero

Agricultural Productivity:

NAFAKA reached out to producers in the Kilombero and Mvomero through training of trainers (ToT), Farmer Field Days (FFD), and demonstration plots at associations.

Activities demonstrated on the demo plots include: improved seeds, mechanization via tractor or draft power, nursery establishment, directing seeding lines, construction of bunds, and fertilizer use and pesticide spraying in Mwaya, Mgudeni and Ngalimila. In addition, private sector input suppliers distributed 150kg of improved rice seed and over 500kg of donated fertilized to producer groups for planting in their demonstration plots in these 2 clusters. NAFAKA’s training efforts have resulted in an improved use of technology and good farming practices with the adoption of fertilizer, pesticides, and improved seeds. Conversely, construction of bunds and direct seeding in lines on nursery transplantation were less adopted; this can be attributed to the fact that the production system is rain-fed.

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Various training sessions were conducted during this reporting period. The NAFAKA production team facilitated trainings to producers in a number of technologies and practices, including:

Table 4: Training Numbers in Kilombero (Outside KPL)

Agronomic Trainings

Training Topic # of Farmers

Plant Nutrient and Proper Fertilizer application 75

Weed Control and Integrated Pest Management 145

Direct Sowing and Seed Methods 100

Post Harvest Handling and Management Techniques 377

In collaboration with local government, NAFAKA conducted FFDs at Mwaya and Mgudeni villages in Ifakara North, involving 225 farmers (95 women and 130 men). Key participants included village leaders (chairperson and executive officers), government extension agents and NAFAKA agronomists. Initially, the project expected that a total of 400 farmers would participate, however rain, harvesting and personal occurrences attributed to the lower turnout.

The FFDs emphasized best practices including: correct water management techniques, preference of planting paddy in line for a healthier result that broadcasting, recognition of the potential of improved seed varieties such as TXD 306, TXD 85, TXD 88 to produce higher yields than local varieties Kisegese, Zambia, Mbawambili and India, and the difference between plots treated with fertilizer treated and those untreated.

In line with our strategy to increase the availability of inputs to local producers, NAFAKA has laid the groundwork to introduce the use of Urea Deep Placement technology (UDP) in the Kilombero District. This will be expanded to other regions as the project progresses, and the NAFAKA team for this area was trained on the application on UDP.

In addition to association development, NAFAKA has also focused on seed production in the Kilombero district. Fourteen individual farmers and four informal producer groups have been identified to participate in an improved seed production initiative in six villages in the Kilombero district. Six of the individual farmers selected to participate in the project are women. The seed varieties were approved by the Tanzania Official Seed Certification Institute (TOSCI), a seed oversight agency, to ensure full compliance with the Government of Tanzania (GoT) regulations. Plowing and harrowing of the one acre plots took place late in the reporting period, with planting to take place early in the next quarter. Three of the six villages participating in this project are served by irrigation schemes to be rehabilitated under FtF (Kisegese, Mpanga and Ngalimila).

Association Development:

NAFAKA reached 2,389 farmers (45% women) in the non-KPL areas of the Kilombero District (Mlimba, Mangula and Ifakara North clusters) in Year One, as summarized in the following table.

The farmers organized into 13 associations from 63 farmer groups. Six of these associations were formally registered at the Ministry of Home Affairs in DSM.

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The project provided sensitization training to farmers on how to establish formal producer associations at the village and apex association levels. Farmers were also trained on constitution development and constitution registration procedures including member endorsement, processes of the constitutions, and election of leadership.

Table 5: Farmers Associations and Members in Kilombero Clusters (Outside KPL)

Cluster Village Association No. Farmer Groups Membership 2012 Total

Women Men

Ifakara Cluster Miwangani Farmers Association 4 70 97 167

Mofu Farmers Association 6 117 130 247

Vigaeni Farmers Association 3 54 72 126

Igima Farmers Association 3 66 74 140

Subtotal Ifakara 16 307 373 680

Mangula Cluster Mwaya Farmers Association 4 87 100 187

Mgudeni Farmers Association 4 82 107 189

Kanyenja Farmers Association 3 49 79 128

Subtotal Mang'ula 11 218 286 504

Subtotal Ifakara and Mang'ula 27 525 659 1,184

Percentages (%) of Total 44% 56% 100%

Mlimba Cluster Mpanga Farmers Association 4 46 100 146

Ngalimila Framers Association 9 165 232 397

Mlimba A Farmers Association 5 105 57 162

Mlimba B Farmers Association 3 44 43 87

Kalengakelu Farmers Association 9 119 118 237

KCY Farmers Association 6 67 109 176

Subtotal Mlimba 36 546 659 1, 205

Percentages (%) of total 45% 55% 100%

Women Men Total

Grand Kilombero 63 1,071 1,318 2,389

Percentages (%) 45% 55% 100%

The NAFAKA training design for associations is comprised of five modules facilitated by RUDI and ACDI/VOCA. A total of 1,420 farmers were trained (45% women). The five training modules addressed the following topics:

o Leadership: evaluate and improve board implementation of bylaws, communications, conflict resolution and effective leadership practices.

o Marketing: analyze buyer requirements and market opportunities; supply forecasts to generate marketing plans and negotiate favorable contracts.

NAFAKA Annual Performance Report: April 2011 – September 2012 | 20 o Recordkeeping: improve internal documentation, reporting and self-audit capacity of critical functions involving inputs, members, storage, and cash.

o Operations: develop demand-driven business plans that detail board and member activities to realize opportunities, increase cash flows and reduce risks.

o Other Training: develop specific and ongoing development activities for leaders and members to continue improving governance, marketing and farm productivity.

There have been some dropouts during the year, particularly in Ifakara and Mangula clusters, due to different expectations by farmers as well as governance issues at association level. Some association leaders’ misconduct discouraged the farmers to join associations. This led to resignation of leaders in Mgudeni and Kanyenja and new elections were held. NAFAKA is addressing these issues and learning from this experience as we move into Year Two.

Access to Finance

Through the progressive farmers development grant project 6 candidates from the Kilombero District were selected to receive small production grants of approximately US$2,000. Four of these are women. These farmers have potential for becoming commercial farmers, generally farming larger plots of land and already investing in improved seeds and fertilizers. The identified candidates are required to have leadership potential in order to serve as facilitators for demonstrating good agricultural practices, in turn encouraging other farmers to adopt the same. After harvest, progressive farmers sold their paddy and put $2000 into a bank account.

This program is being used to encourage financial institutions to offer loans to farmers with similar profiles. NAFAKA is currently working with NMB bank to expand this program in FY2013, whereby NMB will provide credit to progressive farmers.

Marketing

• Rice. The project encouraged farmers to add value to paddy in order to sell rice collectively. The general practice is that farmers store their paddy in warehouses individually and mill it when they get a buyer. NAFAKA linked Mangula cluster associations (Mgudeni and Kanyenja) to a rice buyer from Dar Kipepeo Company Ltd.

They signed a contract to sell 10 tons of rice collectively per month using COMPETE mills. However they managed to supply 10 tons of rice for the first month only. There were governance issues within the associations which are being addressed before they can continue with the contract.

• Use of the AKIRIGO-owned rice mills. In Kilombero there are 4 high quality rice mills which were financed by the USAID-East Africa COMPETE project. Each mill has a milling capacity of 2 tons per hour, or 20 tons of rice per day. Collectively the 4 mills can produce 80 tons of rice per day. The mills perform all operations including destoning, milling, and grading. Each mill has formed a company limited by shares, and the farmers’ Apex association AKIRIGO owns shares in all the mills. NAFAKA has signed an MOU with AKIRIGO which will build capacity of the apex association, allowing it to aggregate and bulk rice in order to supply to large buyers like Export

NAFAKA Annual Performance Report: April 2011 – September 2012 | 21 trading Group (ETG), which has shown interest to buy rice from small holder farmers.

Initial discussions have also been made to collaborate with the Tuboreshe Chakula project to upgrade the mills.

Mvomero

Agricultural Productivity

In Mvomero, NAFAKA worked with service provider Mkindo Farmers Training Center (MFTC) to deliver training in farmer field schools and integrated pest management. MFTC’s program is designed to groom lead farmers to conduct farmer field schools in their respective villages.

Eleven lead farmers participated in this training, each of whom will train another 25-30 members of their villages to conduct farmer field schools, each of whom in turn must commit to conducting the schools for 125-150 farmers in their respective villages.

NAFAKA, in collaboration with Yara agronomists, conducted two farmer field days (FFDs) with an attendance of 293 farmers (161 women and 132 men). The Yara agronomists demonstrated the use of Yaramila fertilizer and compared it against other fertilizers commonly used by farmers. The lessons learned are thoses similar to the FFD in Mwaya and Mgudeni villages in Ifakara North as mentioned earlier in this report.

NAFAKA has laid the groundwork to introduce the use of UDP in the Mvomero District. This is in support of our strategy to increase the availability of inputs to local producers. The NAFAKA team for this area was trained on the application on UDP.

Association Development

During the reporting period, 710 farmers (44% women) in 33 informal farmer groups formed 6 farmer associations within the Mvomero District. The associations represent the Milama, Dihombo, Hembeti, Wami Dakawa, Wami Luhindo and Mvomero villages. Sensitization training was provided to farmers on how to establish formal producer associations at the village and apex association levels.