To address the lack of affordable quality supplies in remote farming communities, USAID, through its five-year Graduation with Resilience to Achieve Sustainable Development activity, developed a private agro-dealership model, creating sales hubs for essential supplies at the local level.
Between October 2015 and September 2016, the Care-implemented activity recruited and trained 32 agro-dealers who sold approximately $240,000 worth of supplies, primarily livestock feed, vegetable seed, and simple tools to 45,000 customers.
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Graduation with Resilience to Achieve Sustainable Development, or GRAD,
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is a five-year, USAID-funded project that seeks to graduate at least 50,000 households from the government safety net program.
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Core access to quality agricultural inputs at affordable prices has been a major constraint for smallholder farmers in project areas.
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To buy agricultural inputs like seed and livestock feed, we previously had to travel far, to Hawassa City.
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Sometimes we asked people travelling to the city to buy us the inputs to minimize the cost and avoid the fuss of going there.
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But even with all this expense and effort, we were still not getting good harvests from the inputs.
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There were no local input suppliers before the project. We fed our goats tree branches and grass.
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We kept the goats for a long period before selling as they did not gain weight quickly.
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The current input supply system in the country uses a top-down approach
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and this is heavily concentrated with a supply of fertilizers and improved seed for major share crops,
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and this does very little to assure the diverse input supply for small scale farmers who are located at the bottom of the pyramid.
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To address this gap, GRAD introduced private agro-dealers in each project district.
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The project recruited the agro-dealers from the local community based on their experience and aptitude for business.
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Each new agro-dealer was provided technical training related to the inputs they would sell
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and basic business management skills such as record-keeping, product promotion, and marketing.
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The project also helped them to establish or renovate their shops, assess local demand for inputs, and linked them with suppliers.
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We sell inputs at reasonable price in quantities that farmers can afford.
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For instance, we sell vegetable seed in small quantities for 10-20 birr (or less than one USD).
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Promoting the products they sell is key to the success of the business.
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Agro-dealers use different mechanisms to promote their business.
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We explain the value of the inputs at different training given to the farmers.
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We take samples of inputs and explain to the farmer association how to use the inputs, their benefits, and prices.
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I promote my products during market days and on FM radio.
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I also demonstrate the inputs on model farmer plots so that other farmers can learn through observation.
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Following the opening of agro-dealer shops in all 16 GRAD woredas (districts),
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there have been visible changes in production and productivity of GRAD and non-GRAD households that buy and use the inputs regularly.
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There have been a lot of positive changes since an agro-dealer started selling inputs close by.
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We can now buy quality inputs close to home.
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This helps us to get more production and better income.
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I use savings to buy improved feed for my goats. We are getting better production.
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There were remarkable results after we started buying inputs from the agro-dealer.
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Our goats gain enough weight in just three months.
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GRAD will be phased out in the coming few months.
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However, it seems that sustainability will not be an issue for agro-dealership schemes, like most components of the project.
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Households know well the benefits of using the inputs.
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The high demand will allow me to continue expanding my business.
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In the project, we've had successes, you know, in linking agro-dealers with the local agriculture offices.
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In some instances, these agro-dealers are working with the agriculture office, serving as the major input supplier for improved seeds.
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These linkages, we believe, contribute significantly for the sustainability of the agro-dealers even after the project phases out.
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We have a plan to expand our farm as there are now no problems with input supply.
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Now we are so inspired to invest more.
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[traditional music]
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