Page 15 - AFAP Success Stories 2020

Micro level Data Collection and Analysis: Agrodealers in Ghana, Kenya, Malawi,
Mozambique, Nigeria, Tanzania, Uganda, Zambia

Data were collected from July to October 2020 by inability to pay bills (rent, wages, credit); laid of employees;
interviewing 240 agrodealers across the eight countries. (6) reduced access to trade credit due to uncertainties; (7)
The agrodealers were asked to report on inputs and inflation/interest rate fluctuations; (8) need to stockpile
services that their businesses provide to their farmer due to uncertainties; (9) inability to source products/
customers. Responses show that almost all of them were services for sale to customers; (10) lack of transport to
engaged in crop seeds, fertilizers, and crop protection deliver from supplier; (11) lack of transport to deliver to
products. distribution points; (12) increased cost of transport to
points of sale; (13) have had to close off business entirely;
The patterns are consistent across the eight countries and (14) no negative impact. Based on the frequency of
and the four months over which data were collected those responding yes to the questions, four factors out of
showing that there is coherence to these core functions. the 14 were reported to have the most negative impact
Some agrodealers reported diversifying into extension on business operations and performance: reduced sales;
services, mostly in Kenya, Mozambique, Zambia, Malawi, reduced customer base; reduced access to trade credit
and Uganda. A few agrodealers extended their core due to uncertainties; and increased cost of transport to
businesses into mechanization and farm equipment and points of sale.
implement supply services. These patterns were reported
in mostly in Zambia, Ghana, Uganda, Tanzania, and Kenya. Reduced sales and reduced customer base are highly
prevalent across all the countries during July and August,
There was much variability among countries and months but these reduce over time during the months of
for which data were reported. Only in Tanzania did September and October. Reduced access to trade credit
agrodealers report diversifying their business portfolios due to uncertainties and increased cost of transport to
to livestock products. This suggests that extension, points of sale grow in relative importance over time. This
mechanization, and farm equipment and implement implies that short term policy interventions to mitigate the
supply are more sensitive to shocks resulting from negative effects of COVID-19 need to focus on increasing
COVID-19 than the core services. effective demand for inputs and the share distribution of
farm households with effective demand.
Agrodealers were asked to indicate whether COVID-19
had negative impact on the operations and performance Over time, policy interventions need to improve supply
of their business and access to distribution points using through increasing access to trade credit and reduced the
14 dimensions. The measures were (1) business premise cost of transport to points of sale.
is closed; (2) reduced sales; (3) reduced customer base; (4)

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