Agricultural Subsidies & Input voucher Program Regional Dialogue 31 st Aug to 4 th September 2009 Maputo David B Kamchacha PhD

Slow Agriculture Growth

The Malawi Input Voucher Programme YEARINPUTPACKAGETARGETTED FARMERS 2005/ ,000 MT maize fert 20,000 MT tobacco fert 2 x 50 kg bag 1.2 million 0.2 million 2006/ ,000 MT maize fert 20,000 MT tobacco fert 4,000 MT maize seed 2 x 50 kg bag 1 x 2 kg pack 1.5 million 0.2 million 2007/ ,000 MT maize fert 20,000 MT tobacco fert 4,000 MT maize seed 1,000 MT legume seed 400 MT cotton seed 400 MT pesticides 2 x 50 kg bag 1 x 2 kg pack 1.5 million 0.2 million 1.5 million 0.2 million 2008/ ,000 MT maize fert 20,000 MT tobacco fert 4,000 MT maize seed 1,000 MT legume seed 400 MT cotton seed 400 MT pesticides 2 x 50 kg bag 1 x 2 kg pack 1.5 million 0.2 million 1.5 million 0.2 million

Results

Agriculture Growth

Farmer Case studies Beneficiary No of people in HH 2007/08 Production Kg 2008/09 Production Kg Increase In production Kg Raphael Chirwa Grace Nkhata50300 Weston Kawani Elliot Fika80750 Martin Chiputula

Impact of Inputs Support on Livelihoods

Zambia Fertilizer Support Programme (FSP) Fertiliser Support since 2002 Yield increased from 1.1mt to 2.4t/ha (year ) Area cultivated: –Fertilizer user- 795, 000 ha –None users 1, 131, 000 ha (2008/09). National yield average 1.3mt/ha

Percent of Fertilizer Users and Non-Users BY the Source of Fertilizer

Yields mt/ha

Impact of Inputs Support on Livelihood

Mozambique Inputs Trade Fairs

Yield Mt/ha

Continued Surpluses allowed them to enter crop markets and trade with non-beneficiaries Able to rent tractors to cultivate bigger areas

Overall Outcome Vouchers can integrate commercial and non- commercial input distribution systems Timely access to inputs is key Yield Increase per hectare Increased Income A market-smart form of subsidy Increase In trade Increased fertilizer application from 17% in 2005 to 30% of the rural household in 2006

Challenges Accurate targeting of beneficiaries Monitoring Compromise on inputs quality Late decisions leading to late delivery Political interference

Common issues Need for more investment in research and extension Agro dealer network development Promotion of new technologies Investment in grain storage to reduce Post harvest loses Improve targeting (FVI) Monitoring framework that facilitate farmer graduation

- FINALLY Right investments done in the right way under the right circumstances can produce the desired results -Southern Africa is not doomed to remain in food deficit - Policy makers can make a difference - Hunger and dependence on food aid can be reduced Yes we can