LOCAL VALUE CHAIN FOR SMALL SCALE FARMERS: ROOM FOR CSO INTERVENTION.
A paper presented to the NGO Director’s summer school in Kariba from 3rd to 6th November, 2011
BY
MUHLE M. MASUKU
CHRISTIAN FRIENDS TRUST.
The difficulty of adequately treating such a wide subject in a single paper of a relatively small size was anticipated. Two difficulties stood out, firstly, to ignore the heterogeneity of regions in Zimbabwe
This paper is informed by the livelihoods framework, commonly referred to as the asset pentagon. It identifies five types of capital assets necessary for any entity to survive vulnerability, namely: financial, physical, natural, social and human (Carney, 1998; DFID, 1999). It is therefore necessary to recognise these as basic tenets necessary for small scale farmers to develop confidence and an emancipatory mindset, thus becoming less poor rather than comfortable in poverty.
Case study: Matebeleland Region livestock value chain
Livestock is Matebeleland region’s most important form of security against production failures. Over the years, the political and economic climate forced many farmers into wage labour. In these circumstances impoverished households were compelled to use divestment coping strategies that included the sale of production assets, abandoning traditional customary economic activities and ultimately, migration of the able bodied resulting in many women and child headed families. Production and marketing constraints have militated against reinvestment in the livestock value chain. It is just as futile to produce a commodity of high quality for which there is no profitable market as it is to attempt to market an inferior one where quality commands the most remunerative price.
Misdirected funds
The government is disbursing millions of dollars through the much publicized input scheme comprised of seed and fertiliser packs throughout the country. Non Governmental Organisations have also followed suit. This is contrary to layman’s knowledge, confirmed by research, that in the arid communal areas, cattle constitute the only farm produce whereby significant amounts of cash can be generated (Steinfield, 1988) and that more farmers in natural regions 1V and V than in 1 to 111 (the high rainfall areas) ranked livestock as a more important source for food purchases compared to other sources (Zindi and Stark, 1992). Matebeleland has had a series of recurrent droughts, and in need of drought relief every year. Do we suddenly develop amnesia every time national budgets are conceived? Or does this give credence to the case of deliberate marginalization of other regions.
Government takes too much from local markets
The RDC collects from rural cattle auctions a total of 10.5% levy being 7.5% for the RDC and 3% for central government’s Livestock Production and Development (LPD). The Veterinary Services Department charges $5.00 for livestock inspection per animal/lot and charges $5.00 per single movement permit. In a clear case of double taxation, the same departments charge $1.00 and $2.00 per animal for Meat grading and Meat inspection respectively at the abattoirs. The Zimbabwe Republic Police charge $3.00 per hour per officer (that are no less than four) to escort the RDC sales team to the sale points. The ZRP has a mandate of clearing all cattle at the sales and until recently ZRP were selling the clearance forms.
In an inexplicable development, Zimbabwe Revenue Authority (ZIMRA) targeted districts with the highest cattle populations, charging 15% tax to Beit Bridge
Tragedy of the commons
Another problem is the tragedy of the commons which arises when a resource can be used by everyone for example grazing land and water sources. In the absence of mechanisms to restrict use and selfish behaviour of individuals, the land will be overgrazed and water sources finished (depletion of common pool resources).
Local and central government are not ploughing back levies to the communities to maintain the common pool resources, thus threatening livestock production. There is siltation of water sources, gaping holes left by gold panners, desertification of grazing areas, poor infrastructural development and non existent capacity building initiatives. Some farmers walk up-to 30km to and from the dip tanks and sale points, a daunting task for the physically challenged.
Indiscriminate breeding affecting all species
There are several bulls, he-goats, rams and boars in almost every homestead. These have little respect for mothers, sisters and nieces culminating in severe inbreeding. Records from carcass weights indicate a significant decline across all species. Farmer education about basic breeding and a people centred campaign to cull all breeding males and introduce artificial insemination can greatly improve communal area breeds. Local mothers have very high environmental and disease resistant levels and can pass it on to their progeny.
Unscrupulous buyers do heifer and oxen exchange for direct slaughter evading the punitive RDC levies in the process, but it has since been found that most of the heifers are culled for various reasons by commercial farmers, thus importing congenital diseases such as Brucellosis.
Lack of credit
Lack of credit is widely acknowledged as a constraint on production and potential diversification in the region. There are no banks at community level and collateral is a huge problem for the resource-poor small scale farmer. There is a rural – urban dichotomy in terms of government support that misrepresents the relations between urban growth and rural development, ignoring the mutually beneficial linkages between them.
Collapse of the rule of law
Livestock crimes are at the top of the list in Matebeleland; however stock thieves are arrested today and mysteriously released tomorrow. There are known livestock thieves masquerading as innocent people in the day and turn to be hard core criminals in the night. RDCs are pouncing on stray livestock; sell them as soon as three months has lapsed as a source of revenue. RDCs and ZRP know that communities are completely oblivious of the mandatory advertisements in the urban media; hence the livestock is bought at ridiculously low prices by the officials. The farmer under whose custody the animal has been, is given only 10% for his efforts completely ignoring the costs of herding, dipping and medication incurred by the farmer.
Livestock identification
Lack of livestock identification mechanisms accentuates the above mentioned evils: stock theft and the RDCs’ capitalizing in lost and found livestock. It is also a major drawback at point of entry into abattoirs, where serious ownership wrangles have ensued culminating in fist fights.It can assist in identifying mother and father lines to curb inbreeding.
Service organisations
To support all intervention efforts, it is necessary that support services institutions are strong. The economic meltdown robbed these institutions of well trained and experienced cadres. The Departments of Livestock Production and Development (LPD) and Veterinary Services need strengthening in terms of capacity. Farmer organisations lack capacity and leadership to mobilize farmers, hence need capacity development themselves first.
For example, disturbing statistics revealed that LPD is very thin on the ground with one extension worker in Nkayi District that has 30 wards and that is the trend throughout the region.
Raw material transportation
This sector has proved to be the major cause of carcass bruising which is trimmed at meat inspection. The subsequent weight loss impacts negatively to the final grade and price of the animal. The transporter is paid cash before or upon delivery, only for the farmer to realize extensive bruising that may lead to partial or total condemnation much later. Most transporters are not insured against bruising and accidents that is why farmers’ cattle have perished without recourse.
No rights to contract
Matebeleland small scale farmers have had the full brunt of decades of political malevolence. Besides being a seemingly convenient political battle ground, unknown to many, this sector has also been coerced to finance local and central government. In Matebeleland region, Rural District Councils (local government) are solely in charge of organising cattle auction sales and any other sale is deemed to be private and illegal. This robes the farmer the right to choose a rewarding market. This auction sale is populated by middlemen and speculators who are shrouded in ‘collusive bidding.’
According to Homman, S (2005) “The efficiency of the formal market, varies across and within districts. Depending on the engagement of the RDC, formal markets are not always to the advantage of the local farmer, as reflected in low prices, low frequency, far distance, high bureaucracy, lack of transparency and bidding as an inappropriate tool.”
Justification of RDC cattle sales
The RDC Act Chapter 29:13 gives RDCs the right to collect levies from markets and they have since promulgated bye-laws to bar private sales. The RDCs have romped in the Zimbabwe Republic Police and Veterinary Services Department to ensure zero tolerance of private sales. This system places the producer far away from the consumer, allowing a host of speculation in between. The producer bemoans this piece of legislation, which denigrates him to the level of obscurity in the beef value chain.
Asymmetrical Information
Public cattle auctions are conducted on a willing buyer, willing seller basis but the two parties are significantly different, buyers know exactly what, when and where to buy whereas sellers sell whatever, whenever because of desperation. The sellers can not follow the sale proceedings conducted in English in a rural set-up, further complicated by the auctioneer’s inaudible lingo and indeed, the seller is reduced to a caricature. In such a situation, market prices will reflect not only the characteristics and intrinsic worth of the animal, but also the distribution of information.
This was echoed by Sibanda, R (2005) “subsistent level farmers could sell their cattle to the formal sales organised by auctioneers, but this marketing system has been weakened to the extent that it is inefficient. The system is characterised by broken down infrastructure and lacks useful information to farmers and sale points are as far as 30km. Frequency is far apart at four to five weeks intervals”
Small stock Sub-sector
According to Sibanda, R (2005) “Matebeleland small stock sub-sector is endowed with prolific indigenous goats and sheep breeds but, 50% of these may be lost at an early age due to inadequate animal health care. Further, this sub-sector does not have any formal market systems. Intervention is therefore necessary primarily to address early life survival and marketing of small stock products.” I can confirm that a few public auction sale pens have been established with the help of SNV in Gwanda district under the auspices of the RDC.
The chicken sub-sector
The chicken sub-sector has a potential to grow especially among peri-urban area farmers who due to small land holdings need to intensify production. This sub-sector needs the development of specialised skills and the promotion of access to formal markets.
Production of road runners which have proven to be a delicacy in cities across Zimbabwe can be an intervention point in rural areas given that each household owns a few of them. The major constraint is the small numbers available for the projected demand; however the introduction of artificial brooding facilities, protection against predators and adequate training in health care coupled with locally available feed can significantly improve productivity.
Meat processors
Animals left in good condition by the transporter can be injured at the abattoir and again the farmer has no recourse. Statutory instrument 50 of 1995 (Meat Inspection) does not provide for the identification of the causative agent of the bruising.
At carcass evaluation a 200g loss can lead to a grade reduction from super to choice grade. That is a double blow, in that the grade and weight have been reduced simultaneously. In case of total condemnation, the farmer may just carry his lugubrious face back home without a cent. The CSC had a Condemnation Insurance Fund that catered for partial or total condemnations; a farmer never went home empty handed. At the height of ESAP, in a move that seriously attenuated the producers’ position, on the 4 October 1991 in a communication to stake-holders, the CSC discontinued bruise/condemnation compensation.
Since time immemorial the Cold Storage Company had a farm gate scheme, a symbiosis, that meant CSC could take animals from all corners of Zimbabwe
The CSC provided other services such as Cattle finance scheme which was a way of financing breeding and fattening schemes and that too was swept away at ESAP. Private abattoirs now control livestock markets and it has since become a cut throat business without any livestock improvement programs.
CSO INTERVENTION AT LOCAL LEVEL
- Regional diversity must be mainstreamed in all government planning. Each region must be supported to enhance its asset base in order to survive vulnerability. Government and all of us in development should do this and take advantage of these asset bases.
- Those of us in the legal fraternity need to look at the legalities of livestock marketing that infringe on civil liberties.
- CSOs must combat poverty through capacity development of resource-poor small scale farmers and the focus must be efficient production and the improvement of subsistent level trade. For example efficiency of marketing would increase income and in the long run stimulate local production. Expected impact must be measured more in terms of livelihood enhancement parameters than commercial parameters.
- Resource-rich and peri-urban small scale farmers must be capacitated to commercial orientation and could be assisted to develop and create employment which could benefit the poor.
- The key local level support organisations need to be capacitated. These are LPD, Veterinary Services and AGRITEX that is crop oriented but actively involved in areas that are not represented by LPD. Group extension can be a panacea to the mobility problems currently besieging the service providers.
- Support community based organisations to push local advocacy, name and shame unscrupulous officials. Remember, ‘local people are the world’s leading authority on matters concerning their area’ (Huntington,1980;15)
- Support breeds improvement programs through culling undesirable males and educate farmers on heat seeking methods in a herd as well as teach them how to do artificial insemination.
- Assist in the formation of market access groups and train them in leadership skills to capitalize on economies of scale. Inculcate a saving mentality and thus promote a local credit scheme. Investigate the possible use of cell phones in so far as communication of vital information like current prices to market access groups.
- Assist in the establishment of local farmer’s meat processing factories and the promotion of a local farmer’s brand. Thus capitalizing on the low supply of highly favoured organic meat in urban markets.
- Assist in the development of a communal area livestock identification scheme. Up to date, the exact livestock populations are tantamount to guess work, but the issuance of birth and death certificates would help ameliorate the situation.
- Empowerment of women and youths through capacity building in the livestock value chain.
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