EXPLOITING UNDERUTILIZED OPPORTUNITIES FOR AGRICULTURAL DEVELOPMENT WITH THE e3 ANCHOR FARMS MODEL: HOW WILL IT WORK? WILL IT SUCCEED? - Part 2

By George Z Goliati 

Graphic presentation of the e3 anchor farms model 

Just to emphasize, AfriCan Explorations is the developer of the e3 anchor farms model, which is an agro-trading social impact business model. As a means of production or service provision of its developed models, AfriCan Explorations is designed to establish separate business enterprise. In this case, if the e3 anchor farms model proves viable, AfriCan Explorations will establish a social enterprise to be named Umodzi Farms. 

Umodzi Farms will operate as an integrated agro-commodity aggregator using the e3 anchor farms model. However, the model will be developed in a manner that it attracts other agro-trading business entities to use it so as to upscale its impacts in Africa and of course improve quality of its delivery through competition. Umodzi Farms is envisioned to be a reliable supplier of export quality agro-commodities from sustainable farms and highly motivated and efficient farmers. The mission is to strengthening local farmer organisations capacity with e-coordinated export-oriented ecological (e3) anchor farms and decentralized aggregation to improve marginal farmers productivity sustainably, access to profitable markets and adequate nutritious food. 

Umodzi Farms will be an aggregator who establishes anchor farms where local farmer organisations (LFOs) and support services providers are engaged to foster and support sustainable production and decentralized aggregation for identified quality-oriented markets using a special digital kit/platform and collective marketing structures along with diverse and ecological farming approaches. 

Previously, we designed a simple WhatsApp and GPS applications-based online platform for FOs to virtually aggregate and link with off-takers, where we ventured as agro-marketing agents. The launching did not materialise. We learnt that the FOs had poor marketing strategies where they were not ready to deliver the commodity to the market and unreasonably demanded prices much higher than the market price. They displayed inability to understand buyer requirements of offtakers and high value markets and to consider supply-demand aspects. They also largely expressed fear of fraudulent act as it has been experienced with previous trade agents, which explained how farmers have lost trust in once attempted aggregation activities and market deliveries. 

In fact, the FOs had not even aggregated the commodities. Apart from loss of trust, marginal farmers, our primary target beneficiaries, who need immediate cash and contribute over 80% of expected FO output could not sell through the FO without cash payments on delivery to the storage facility. Basically, lack of alternative incomes force marginal farmers to sell their produces at losses to unscrupulous traders, resulting to failed aggregations as expected. 

With no orientation due to our weak financial muscle, FOs could not manage to use the online platform to provide accurate information regarding their stocks/inventory, location and selling plan. Most of them had poorly functioning handsets and could not manage to use them to share information with the farmers. 

As such, to overcome the above mentioned barriers, the new model will involve the following inputs; (i) joining the farmer organisation management and restructuring/re-strategising its business management and marketing towards high value markets, (ii) establishing an anchor farm(s), (iii) acquiring and/or providing solar-powered LED projector-tablet kit with digital literacy capacity building and online coordination of FOs production and marketing operations, (iv) developing a communal diverse and eco-farming design (eco-village project) and (v) acquiring and/or providing quality controlling tools plus capacity. 

The digital platform and strategic management will allow FO's efficient communication with quality-oriented buyers and supporting services providers, enabling enhanced visibility, access to tailored market information and video-based extension, and efficient monitoring. At least one village member will be made digital literate. The anchor farm(s) will ensure trust, motivation, cooperation in the joint and function as hands-on training and demonstration plots for improved technologies and eco-farming. The FOs will have adequate market information to make appropriate decisions and arrangements for quality-oriented markets and source out recommended high quality inputs and financing from supporting services providers. 

This is expected to produce the following outcomes. Cinematic/video-based extension, demonstration plots, finance and high quality inputs will allow increased production and productivity. Financing, monitoring/coordination and quality controlling tools will minimise production risks and facilitate decentralized aggregation, grading and delivery through existing FO warehouses, to satisfy high value markets and incur premium prices. Diverse and eco-farming will allow sustainable agri-food systems, that is, production of sufficient and nutritious foods for own household consumption without damaging the environment. This will also attract more sustainability-oriented buyers and financiers. 

The sufficient food, financing (cash credit) and end-market premium prices will enable LFOs to protect marginal farmers from selling under pressure below the cost of production to intermediaries, ensuring increased profits in addition to food-nutrition sufficiency and productivity. 

Recognizing the huge digital gap and diverse capacity challenges with local farmer organisations, it was found very necessary to test the model. Even though we are highly optimistic, if it fails, another model will be developed. Whatever the model, our aim is to contribute to the change. We are determined to contribute on making agriculture more profitable and sustainable for the marginalized farmers as well as large and small agribusinesses. We are committed to explore the use of advanced digital technologies and youth engagement in rural community agriculture in order to achieve this goal. 

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