1. STATUS OF THE RICE SUBSECTOR AND NATIONAL RICE DEVELOPMENT STRATEGY FORMULATION PROCESSES AGRI-PROFOCUS MULTI-STAKEHOLDER FORUM 5 th October 2008 Kaunda Kapepula Principal Agricultural Economist Department of Agribusiness & Marketing Ministry of Agriculture and Cooperatives

2. PRESENTATION OUTLINE 1.WHERE ARE WE – SUPPLY AND DEMAND? 2.WHAT DOES THE ZAMBIAN RICE VALUE CHAIN MAP LOOK LIKE? 3.WHAT IS BEING TOWARDS FORMULATING A COMPREHENSIVE NRDS 1.WHERE ARE WE – SUPPLY AND DEMAND? 2.WHAT DOES THE ZAMBIAN RICE VALUE CHAIN MAP LOOK LIKE? 3.WHAT IS BEING TOWARDS FORMULATING A COMPREHENSIVE NRDS

3. VISION AND GOAL VISION GOAL A competitive private sector-led Zambian rice industry that would uplift isolated rural economies through improved profitability of all enterprises along the value chain through utilisation of locally adapted low-cost modern technologies, provision of critical support services and an enabling policy environment More than Double Rice Production from the Current 25, 000 MT to about 60,000 Mt within 5 years

4. National Rice Requirements (MT)

5. Area Planted, Production and Sales

6. % share of food group in total value of consumption of main staples % share of main staples in total value of food consumption Urban Centre MaizeWheatRiceCassava Lusaka39.049.410.70.919.5 Kitwe42.545.310.32.023.2 Mansa45.828.210.016.023.8 Source: Food Security Research Project, Mason N. and others, June 2009

7. Ten Year Average Provincial Contribution to National Production

8. Rice Value Chain Map LOCAL SMALL MILLERS CROSS-BORDER TRADERS (IM) URBAN INFORMAL TRADERS LARGE MILLERS/ WHOLESALERS LARGE MILLERS/ WHOLESALERS Export s /Domestic Retailing Wholesaling /Distribution Processing Assembly Production CROSS-BORDER TRADERS (EX) LARGE GRAIN TRADERS DOMESTIC SMALLHOLDER FARMERS FOREIGN SUPPLIERS PUBLIC URBAN MARKETS FOODSERVICE OUTLETS VILLAGE ASSEMBLERS MEDIUM SCALE MILLERS/ WHOLESALERS MEDIUM SCALE MILLERS/ WHOLESALERS FRA RETAILERS

9. Rice Value Chain Supporters 1.Extension & Research (Seed & Agronomy) – ZARI, SCCI & DoA, & Private Sector 2.Input Suppliers – Private Sector, SNV, Other NGOs/Projects, FISP, ZAMSEED 3.Marketing – Private Sector, NGOs/Projects ZAMACE, FRA 4.Financial Services – ZANACO, ZATAC, WOOD & DAAD, CEEC, ZSIC 5.Policy – MACO (Agricultural Credit Bill)

10. OPPORTUNITIES 1.Growing Demand for Rice in both Domestic and Regional Markets with Historic High Commodity Prices 2.Duo Role of Rice as a Food and Cash Crop for Smallholder Farmers; 3.High Prospects for Participation of MSEs especially Women in Group Managed Enterprises i.e. Seed Production and Processing 4.Leveraging Renewed Commitment and Goodwill by International Development Agencies (e.g. the CARD initiative) To Address Food Insecurity and High Poverty Levels IMPORTANCE OF THE RICE SUB-SECTOR

11. KEY ISSUES & CHALLENGES 1.Fragmented and Uncoordinated Markets 2.Low Entrepreneurial, Business Management and Technical Skills 3.Limited Access to Financial Services 4.Recycled Seed and Poor Quality Grain 5.Poor Knowledge of Good Agricultural Practices (GAPs) 6.Low Level of Mechanization 7.Inadequate Modern Processing Mills/Huskers & Lack of Quality Standards 8.Weak Public-Private Sector Institutions to Drive Innovation

12. STRATEGIC AXES RICE VALUE CHAIN DEVELOPMENT Quality Improvement & Value-Addition Quality Improvement & Value-Addition PPPs 4 Improved Knowledge Management PPPs 4 Improved Knowledge Management Pro-Market Policy Environment Pro-Market Policy Environment Sustainable Management of Natural Resources Sustainable Management of Natural Resources Productivity & Hacterage Scaling-up Productivity & Hacterage Scaling-up Citizenry Economic Empowerment Citizenry Economic Empowerment

13. NERICA MAKING SIMILING FACES IN GUINEA – WEST AFRICA