Page 15 - AFAP Success Stories 2020
P. 15

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)

                                                                                                           13
   10   11   12   13   14   15   16   17   18   19   20