Download Private Sector: Building Local Agricultural Capacity through

IFDC
AIARD Annual Conference 2011
Agro-Dealer Development:
Developing and Emerging Markets
by
John Allgood - IFDC
IFDC
Agriculture Input Market
Value Chain (Fertilizer)
Raw Material
Supplier
Basic
Manufacturer
Broker/
Importer
Wholesaler
Dealer
Farmer
Agro-Input Dealers provide the final value chain link
with farmers.
The volume of products handled by agro-dealers is
very high. In 2009, farmers worldwide used 162 million
mt of plant nutrients or ~425 million mt of fertilizers.
IFDC
Key Functions of Agro-Dealers
Product Supply—Timely, Quality, Package
Size
 Promotion/Education—Advisory Services on
Proper Use, Safety Issues, Post-Harvest
 Pricing—Price Determination
 Physical Distribution—Transportation, Storage

Macro-Environmental Factors—Government Policy, Literacy
Rates, etc.—Influence the role of Dealers
IFDC
International Fertilizer Price Trends
Agro-Dealers’ Influence on Fertilizer
Prices at the Farm Level Is Low
Source: IFDC 2000
IFDC
IFDC
The IFDC Approach to agro-dealer development is within
the overall organizational philosophy on agriculture
development which encompasses two basic premises:


Improved use of agricultural inputs such as fertilizers, high-quality
seed and crop protection products is necessary (+ water) to
sustainable improvement in agricultural productivity per unit of land.
Efficiency in resource utilization can be maximized by employing and
market-oriented approach to development.
GOAL: To foster the development of agro-dealers so that they may
effectively service farmers’ immediate and long-term agricultural input
needs.
 Increased agricultural productivity/improved economic returns to
farmers from input use.
 Long-term economic gains to farmers.
Key Factors in Design
of Interventions
Program Goal/Objective



Dealer Development Is a Major Component
Dealer Development Is Primary
Dealer Development Is Complimentary
Situation Analysis




Stage of Development of Agro-Input Markets
Marketing Environment: Macro and Micro
Role of Public/Private Sector
Stakeholder Interest
Resource Availability



Funds
Program Duration
Opportunity to Leverage Resources
IFDC
IFDC
Some Examples of
Dealer “Shops”
IFDC
Uganda Dealer
IFDC
Nigeria Dealer
IFDC
Afghan Dealer
IFDC
Bangladesh
Dealer
IFDC
Key Focal Areas and Intervention Activities




Technical Knowledge
Transfer
Business Acumen
Development
Business Linkage
Development
Strengthening Support
Systems
Create the
Opportunity for
Systemic,
Market-Led
Development
IFDC
Technical Knowledge Transfer
Improve Dealer’s Knowledge and Understanding
of Agricultural Input Products




Field performance characteristics
Safe use, handling, storage
Proper application = best performance & + economic
returns
Problem analysis
IFDC
Technical Knowledge Transfer
(Continued)
Capacity Building Interventions:



Classroom-type training
Collaborative field demonstrations and field days
“One-on-one” technical support
Promotion Support to Build Demand




Demonstration
Point-of-purchase materials
Promotional giveaways
Trade shows/agricultural fairs
IFDC
IFDC-Agri-Input Dealer Training in Malawi
IFDC
IFDC
Business Acumen Development

Strategy: Improve dealer’s knowledge and
skills for business management





Management
Marketing – planning
Finance and accounting – Recordkeeping and
understanding total cost of “doing” business
Credit management
Capacity Building Interventions



Classroom-type training
Direct technical assistance
Provide resource materials – handbooks, wall
hangings, technical, leaflets
IFDC
Business Linkage Development

Strategy: Develop and strengthen business
relationships along the value chain





Logistics planning
Market information
Technology introduction
Credit opportunities
Capacity Building Interventions





Classroom-type training/workshops
Study tours/trade missions
Agricultural fairs
Public-private partnerships
Trade/market intelligence bulletins
IFDC
IFDC
Strengthening Support Systems
Strategy: Improve the public and private support
systems that impact dealer performance

Systems That Impact Dealer Performance






Technology introduction
Market information
Policy (policy advocacy)
Education
Credit
Intervention




Policy analysis – Constraint identification/recommended reforms
Associations
Training trainers
Credit
Farmers Training
IFDC
IFDC
Monitoring and Evaluation
Ideally, each intervention should include an M&E
component to assess:

Progress in Achievement of Performance Targets




Progress In Achievement of Results




Training Programs Completed
Dealer Handbooks Developed/Disseminated
Wall Hangings Prepared Disseminated
Number of New Dealers Established
Improved Advisory Services for Farmers
Geographic Extension of Dealer Networks to Remote Areas
Impact


Increased Competitiveness
Increased Sales
IFDC
Key Lessons Learned
Understand the challenge – “One approach
serves all” philosophy doesn’t work
 Emphasize stakeholder participation – public
sector, NGOs, PPPs
 Direct, one-on-one assistance and group
participation with hands-on interaction are
particularly effective in agro-dealer training
 Continuity and direction of support are crucial

IFDC
“…agriculture is our wisest pursuit,
because it will, in the end,
contribute most to real health, good
morals and happiness.”
Letter from
Thomas Jefferson to George Washington - 1787
IFDC
Thank You