Vegetable and Groundnut Market and Value Chain Analysis in
Mumbwa Zambia
INTRODUCTION
The main objective of the RAIN project is to reduce stunting in children from inception to 23 months
(first 1,000 days of life) by promoting and providing resources for consumption of adequate and
diverse nutritious foods. While the project focuses primarily on household gardening and
consumption of the resulting produce, another objective of the interventions is to provide beneficiaries
with the knowledge and skills to supplement their dietary and household needs through income
generated from sales of surplus produce. In order to more fully understand how beneficiaries can
more effectively engage in local and regional markets, a value chain study was conducted to 1)
determine the flow of goods from producers to consumers and 2) to understand the methods of value
addition employed as products progress down the value chain, specifically the horticulture and
groundnut value-chains in and Mumbwa.
The RAIN project value chain analysis and marketing strategy will be somewhat unique in that RAIN
does not focus specifically on value addition to increase gross profit. While profit is always a seminal
goal of product promotion in reducing poverty (especially when profits are reinvested in livelihood
security), it is not the singular focus of RAIN. When determining value chains to study, promote and
incorporate into future project marketing strategies, it is important to keep in mind the RAIN project
focus of producing nutritious crops and sensitizing the public on the inter-linkages of
agriculture/nutrition, choices of what to grow/consume/sell, and how an alignment of these practices
can lead to the reduction of stunting in children from inception to 23 months. While other less
nutritious crops may be slightly more lucrative, the RAIN project does not want farmers to abandon
growing nutritious crops to focus on maximizing monetary profit.
Promoting the sale of nutritious foods also benefits the consumer, giving them access to a wider range
of nutritious foods needed for a healthy, balanced diet. As such, the impact resulting from the tradeoff between economic gain and nutritional gain must be kept in mind when reviewing this value chain
analysis and the resulting recommendations concerning the production and marketing of specific
crops/vegetables.
This value chain analysis will be used both as a guide for RAIN to find ways to add value to/sell
nutritious produce, as well as a blueprint for developing markets, business linkages, and public private
partnerships under the follow-on to RAIN.
1
METHODS AND MATERIALS
Value chain analysis data was collected from the four RAIN project intervention wards (Nalubanda,
Sichanzu, Milandu and Choma) as well as Mumbwa Boma. In carrying out this study, RAIN
employed the following methods of rapid, low-cost data collection as follows:
1.) Literature review – The Agriculture and Marketing Advisor collected data on the
horticulture, groundnut and soya value chains from recent scientific literature conducted by
several local and international organizations. As no information currently exists on
agricultural value chains in Mumbwa, the literature review focused on the regional movement
of these crops/vegetables from outside Lusaka (mostly Eastern Province) into the capital. This
information is vital to understanding the value chain/market system into Lusaka, and saved
the project time and money that would have been spent gathering information on the ground.
2.) Individual questionnaires – The Agriculture and Marketing Advisor developed
questionnaires for stakeholders and business services related to agricultural value chains,
including beneficiary producers, input providers, assemblers, transporters, processors,
wholesalers, retailers, consumers and financial institutions. The questionnaires were shared
with Community Development Facilitators (CDF) and RAIN project staff, feedback was
incorporated, and questionnaires were administered to targeted groups.
3.) Key informant interviews – The Agriculture and marketing advisor conducted key
informant interviews with the Senior Agriculture Officer from the Ministry of Agriculture and
Livestock as well as managers for the Conservation Farming Unit and the Zambia National
Farmers Unit. Interviews were also conducted with the owners of Jungle Beat Zambia
(groundnuts) and Sylva Food Solutions (dried vegetables).
The study was conducted over a two month period from January-February of 2014 and the following
questionnaires/interviews were completed:
1.) Input providers1: CDFs and RAIN staff administered individual questionnaires to two input
providers (seed, fertilizer, pesticides, herbicides, fungicides, etc.) from each ward as well as 7
input providers in Mumbwa and an OPV seed supplier in Lusaka. Staff administered
questionnaires to determine what inputs are available, what their costs are, when they are
scarce, and if providers would be willing to transport bulk input sales to communities.
2.) Beneficiary Questionnaires: CDFs administered 20 questionnaires in each ward for a total
of 80 questionnaires. These questionnaires were administered in order to get a clearer picture
of what is being produced, consumed and sold in individual communities as well as in the
ward as a whole. The questionnaire also gauged the level of market activity for the selected
value chains as well as any value addition that was taking place on the producer level.
3.) Assemblers: CDFs and RAIN staff administered 3 questionnaires in Nalubanda, 4
questionnaires in Milandu, one questionnaire in Choma and 7 questionnaires to assemblers in
Mumbwa boma to get an idea of what assemblers are purchasing, where they are purchasing,
where they are taking what they purchase, and what their estimated profit margin will be
1
Input providers include - Mumbwa: Floria Farmers Center, Growers World and General Dealers, Lima Agro,
Agrifocus, Cropserve, Greenpacks, Greenpacks; Choombwa: NWK Agriservices, Chandila, Panner Outlet;
Myooye: Greenpacks; Nangoma: Lismark Agrodealer, Laban and son General Dealer; Shibuyunji: Kapanga
Agro Dealers, Mwemba General Dealers.
2
4.) Transporters: CDFs and RAIN staff administered 19 questionnaires to transporters that
traverse the four wards and Mumbwa boma in order to gather more information about
transport routes, products and prices.
5.) Retailers: CDFs and RAIN staff randomly administered 4 questionnaires to Nalubanda, 2
questionnaires to Choma, 3 questionnaires to Milandu and 14 questionnaires to retailers in
Mumbwa Boma in order to gather information on where produce is purchased and sold, how
much it is sold for, when the high and low supply/demand seasons are, and if value is added
to any produce either before purchase or before sale.
6.) Consumers: CDFs and RAIN staff administered 14 surveys to a randomized sample of
consumers in the markets in and around Mumbwa to gather information on customer
consumption, preference, purchases of value added produce and willingness to pay higher
prices for produce off-season. Markets in the four wards were covered by the beneficiary
survey.
7.) Financial Institutions2: RAIN staff administered three questionnaires to financial institutions
in order to get a sense of what loan/savings schemes are available to beneficiary farmers.
8.) Processors/exporters: The Agriculture and Marketing Advisor interviewed the owners of
Jungle Beat Zambia (groundnuts) and Sylva Food Solutions to discuss forming partnerships
and to understand the general structure/sales of the organizations. A second meeting was held
with Sylva Food Solutions to discuss training, purchase of solar dryers and execution of a
memorandum of understanding to open up a market for beneficiary farmers to sell dried
produce.
9.) Technical extension services: The Agriculture and Marketing advisor interviewed the
Conservation Farming Unit and the Zambia National Farmers Union to get a better
understanding of their missions as well as their technical assistance capacity and possible
information sharing/partnering on training.
CHALLENGES
While administration of the questionnaires yielded a wealth of important information, there were
several challenges that were faced in regards to quality control and timeliness of information
gathering:
2

Information gathering efforts were slowed by the time constraints of staff already committed
to other project activities.

The CDFs’ busy schedules precluded the opportunity to adequately review, practice, pre-test
and revise questionnaires and led to a noticeable level of difficulty with and misunderstanding
of questions by both the CDFs and the respondents.

Information for Sichanzu ward is incomplete as the two CDFs stationed there were
transitioning to new jobs and were unable to administer many of the questionnaires.

Standardized weights/measurements/grades were not established prior to administering the
questionnaires, which led to inaccuracy in cost ratios and pose a very real challenge for
comparing responses between wards, value chain actors, and individual respondents.
Financial institutions include: Agora, CETZAM and NATBANK.
3
HORTICULTURE MARKET AND VALUE CHAIN
It has been widely acknowledged throughout the world that smallholder farmers growing and selling
horticultural produce (fresh produce) are more likely to get out of poverty than cereal growers. In
2010 the mean household per capita income among small and medium scale farmers who sold fresh
produce in Zambia was estimated at US$183 compared to US$103 among non-sellers (based on
analysis of the first, second and third nationally representative CSO/MACO/FSRP3 Supplemental
Surveys). Because horticultural produce is a high value item, and because of the diversity of fruits and
vegetables demanded by consumers, such growth provides major opportunities for RAIN
beneficiaries to diversify their production and increase their incomes. If steps are taken to link
beneficiaries to accessible inputs, extension services and markets required to successfully sell surplus
produce, horticulture sales could not only provide nutritious foods all the way down the value chain,
but could result in a lucrative financial return for the farmers. (Hichaambwa and Tschirley, 2006)
CURRENT HORTICULTURE VALUE CHAIN IN MUMBWA, ZAMBIA
Production
Lusaka Traders
Small Farms
Medium Farms
(Onions)
Assembly
Local Assemblers
Wholesale/
Processing
Retail
Western Province
Assemblers
SOWETO MARKET
Community
Markets
Mumbwa Boma
Market
Lusaka Markets
Western Province
Markets
*Width of arrows denotes level of supply
PRODUCERS
MARKET
The RAIN project is promoting the production of a large variety of nutrient dense vegetables,
including the following:
 Tomatoes
 Rape
 Carrots
 Amaranth
4







African Eggplant
Eggplant
Chinese Cabbage
Green Pepper
Okra
Pumpkin
Chilies
Market Challenges
Due to a lack of accessible water during the dry season, a majority of horticulture producers in
Mumbwa have a difficult time producing RAIN promoted crops/vegetables year round. Over 70% of
beneficiary farmers rely on rainfall to irrigate their crops and those near boreholes are often restricted
in their ability to draw water for vegetable production during the dry seasons. As such, only a select
few who are located near boreholes with high water tables, or those who have access to water in
dambos or small streams, can realistically produce vegetables year round. When water is available
during the rainy season, farmers concentrate primarily on production of major food stuffs and cash
crops, such as maize and cotton, spending less time tending to or properly managing horticultural
crops.
Furthermore, distance from main thoroughfares and the derelict state of rural dirt roads have made
transportation and sales of RAIN promoted crops/vegetables onerous and at times unrealistic. Profit
margins shrink with transportation, marketing costs (and opportunity costs of labor), and many
farmers lack the capital and market information necessary to consistently access markets. These
challenges were reflected in the beneficiary surveys administered to 80 RAIN beneficiaries in January
and February of 2014.
RAIN farmers surveyed responded that they have little surplus and what they do have, they most often
try to sell in their own communities, directly off their own farms, or on the side of the road if they
leave nearby accessible tarmacs. The lack of surplus has been mainly attributed to inadequate inputs,
lack of time to devote to vegetable production, and lack of a viable market for sales. Those who live
closer to the tarmac will also take small amounts (usually a 25-50kg bag or two) into Mumbwa boma
or Soweto Market for sale, and those living in communities closer to Western Province (Shibuyanji)
are often able to sell tomatoes to traders who take the produce back to Western Province to sell.
For these small-scale sellers, inadequate infrastructure also makes it very difficult for them to
transport and sell vegetables to regional markets:





Rural roads are virtually impassable during the rainy season and difficult to traverse during
the rest of the year. Many farmers live far away from main roads so transportation is slow and
scarce.
Transport is erratic, costs are often prohibitive and there is little guarantee produce will arrive
to market undamaged.
Lack of storage (both regular and cold storage) makes it difficult for farmers to transport
vegetables, especially in larger quantities as they have a limited shelf-life and often degrade
within two or three days.
Local and regional markets have bad roads, inadequate drainage and sanitation, wildly
fluctuating supply, which leads to high levels of price volatility for farmers who transport
vegetables to market.
Lack of accessible/realistic market information means farmers often are not sure when the
best time is to take produce to market and often receive less return for their produce than they
anticipated.
5

Lack of a defined system of grades and standards to dictate production, package and quality
control.
Even with the problems farmers are facing with both hard and soft infrastructure, many RAIN project
beneficiaries are, indeed, finding a market for their surplus produce. Out of 80 farmers surveyed 55
(68.8%) were selling at least some of their fresh vegetables. Of those, 48 (87.2% of sellers and 60% of
all respondents) were selling locally and 10 (18.1% of sellers and 12.5% of all respondents) were
selling to Lusaka (Soweto Market). Of those selling to Lusaka one was from Choma ward and the rest
were from Milandu ward. No vegetable producers sold produce to assemblers (briefcase buyers).
The highest selling vegetables (based on the results of the beneficiary marketing questionnaire
administered by Community Development Facilitators) were as follows (based on 80 respondents):
Vegetable
Surplus
Selling
Rape
56.25%
47.5%
Tomato
50%
38.75%
Okra
Beans
46.25%
33.75%
33.75%
13.75%
Sweet Potato
18.75%
8.75%
Impwa
13.75%
7.5%
Area where
majority was
sold
Local
community
Local
community
Average
size sold
Average
price
High
Low Demand
Demand
Bundle
K2
Jul-Oct
Jan-Apr
Heap (4
tomatoes)
K2
Jan-Apr
Lusaka
Local
community
Local
community
Local
community
50 kg
Gallon
K75
K35
Jan
MayAug
Sep-Oct
Jan-Feb
5 kg
K20
Sep-Oct
Nov-Jan
Heap (8-10
fruits)
K2
Sep-Oct
Nov-Apr
Nov-Apr
Mar-Aug
Other notable vegetables that are grown in surplus are cowpea (47.5%), Soya beans (25%) and
pumpkins/pumpkin leaves (25%).
Small/medium scale farmers from areas surrounding Mumbwa provide the boma with most of the
produce sold there. When they harvest they hire transport, head to Mumbwa early in the morning and
sell to retailers from the back of their truck. They have preferred buyers, but do not grow for specific
retailers or have any formal agreements in place for sales.
If the project (through marketing training and assistance with public private partnerships) can help
farmers find a reliable market for their produce, the output of fresh and dried vegetables would most
likely increase. According to the results of the producer (beneficiary) survey, farmers have an average
of 1.3 hectares of land available to them for farming. If a consistent market could be found and
farmers could access the inputs most farmers would have plenty of room to scale up their production.
VALUE ADDITION
Currently there is very little value addition taking place with vegetables in Mumbwa beyond
packaging in small amounts for sale in the market. RAIN project beneficiaries are using the wooden
solar dryers provided to them by the project to dry their vegetables, to save for consumption during
seasons the vegetable does not grow particularly well, but project beneficiaries interested in adding
value by drying their produce are facing issues of access to the dryers. Each farmers group only has
one wooden solar dryer for 15-30 members to use and group members are reporting that the dryers
only have the capacity to serve the usage needs of the Smallholder Model Farmers (SMFs) who are
housing the dryers.
6
Furthermore, at the moment there isn’t a strong local market for dried vegetables as consumers in
Mumbwa and Lusaka have access to a diverse array of fresh produce year round. Most consumers in
Mumbwa reported having seen dried vegetables in the market, but they prefer to purchase fresh
produce. It is important to gather more information from farmers and consumers on what is the best
(most nutritious, lucrative) produce to dry and a public awareness campaign to promote dried
vegetables (e.g. cooking demos, nutrition discussions, perishability comparison), their ability to be
stored for consumption in times of low supply, and their retention of essential micro-nutrients when
dried, could increase demand, but it is unclear to what degree public perceptions could be changed.
While there is little value addition to vegetables as yet, there is potential for value addition through
the following:
Bulking: There is the potential to add value by bulking both fresh and dried vegetables. Farmers
groups could plan the joint production of a certain vegetable, set a harvest date, hire transport and
bring to market or make connections with assemblers in their communities or Mumbwa boma.
Understandably, bulking is easier said than done and farmers will need training and support from
RAIN staff. The RAIN marketing training pilot, which will take place during the rainy season
(October-April 2014-2015), aims to help farmers with organization and management of bulking
activities. Marketing groups will be created, made up of farmers who have access to a year round
water source, helping them find markets for fresh, bulked produce in Mumbwa and Lusaka. A
potential sales partnership with Sylva Food Solutions, a Zambian SME based in Lusaka that aims to
grow demand for and increase sales of traditional Zambian foods and beverages based on an inclusive
local sourcing model, would allow farmers to take advantage of the value added to vegetables by
drying them as well as the ability to bulk sales for higher prices in a more dynamic export market.
Proper management, grading and quality control: Beneficiary farmers can increase the quality,
consistency and timeliness of their vegetable production through proper planning and management.
Quality produce is produce that is somewhat uniform in size, shape, color taste and packaging, is ripe
or near-ripe, and is absent of defects. By sorting and grading their produce they can add value by
ensuring a higher standard of quality and can build trust with potential buyers. Growing a steady
stream of quality produce, while separating lower grade vegetables from high grade vegetables, will
open up access to new markets and fetch higher prices.
Harvesting and selling during periods of high demand: Once again, through proper farm planning
and garden management, farmers with adequate resources can produce vegetables during times of low
supply and high demand.
Arranging transport and selling to local merchants: While the Mumbwa market is very
competitive and difficult to penetrate, farmers may gain market access by developing and fostering
business relationships with individual retailers within the marketplace. The ability to provide high
quality produce that is in demand in a timely manner, and to deliver that produce directly to the
retailer, will build trust with buyers and lead to partnership opportunities.
ASSEMBLERS
There are very few assemblers for vegetables in Mumbwa, and most are small-scale assemblers that
take a few bags of produce to Soweto market in Lusaka. They purchase small amounts of vegetables
from their local communities and take public transportation to Lusaka to sell the bags or sell to largerscale traders that are passing through the main thoroughfares. According to the beneficiary survey
administered as part of the value chain analysis, there are very few assemblers in the four RAIN
intervention wards and most focus on cash crops like cotton and soya beans. Out of 80 beneficiary
respondents only two farmers (2.5%) sold any produce to an assembler or “briefcase buyer” (soya
beans, groundnuts) and none of the farmers surveyed sold vegetables to an assembler.
7
VALUE ADDITION
While RAIN project beneficiaries have had few encounters with vegetable assemblers, assembler
surveys show that there are, in fact, local small-scale vegetable assemblers adding value to produce by
bulking and transporting vegetables to Mumbwa and Lusaka.
Based on the responses from a survey administered to a random sample of 9 assemblers from
Mumbwa boma and the four wards, the following vegetables were recently bulked and transported to
regional markets for sale:
Vegetable
Average Unit
Purchased
Average
Unit Price
(KR)
12.5
80
110
36
43
15
15
Market
Sold
Unit Sold
Average
Unit Price
Value
Addition*
(KR)
27.5
52.5
40
55
57
20
17.5
Amaranthus
50 kg x 6
Soweto
50kg
40
Eggplant
50 kg x 5
Soweto
50kg
122.5
Green Pepper 50kg x 3
Soweto
50kg
150
Impwa
50 kg x 6
Soweto
50kg
91
Okra
50kg x 10
Soweto
50kg
100
Rape
50 kg x 3
Soweto
50 kg
35
Sweet Potato
50kg x 10
Soweto
50kg
32.5
Leaves
*Before deducting transportation costs (average of between K20 and K35 one way) and opportunity
costs of labor.
WHOLESALERS/PROCESSORS
There are no wholesalers/processors working within Mumbwa at this time, but there are several
vegetable wholesalers and processors in Lusaka that represent potential business opportunities for
RAIN beneficiary farmers:
Sylva Food Solutions
As previously mentioned, Sylva Food Solutions (http://businessinnovationfacility.org/page/sylvaindigenous-food-and-beverage-production-zambia) is a retailer and exporter of dried vegetables and a
promoter of consumption of nutritious local vegetables like rape, amaranth and sweet potato leaves.
For a small training fee they will work in a community to train farmers on post-harvest vegetable
processing, including drying, grading, packaging and cooking vegetables. The training costs include
one export quality metal solar dryer and once the training has ended, Sylva signs a memorandum of
understanding (MOU) where the company agrees to buy produce from the farmers as long as it is of
the required quality. This may be the best opportunity for RAIN beneficiaries, as Sylva has no
minimum weight or bag requirements for purchase. As long as project farmers can get their produce
to the Sylva processing facility and it is of acceptable quality, they will be able to sell regardless of
quantity.
Freshmark
Freshmark (www.shopriteholdings.co.za/RetailingServices/Pages/Freshmark.aspxis) fruit and
vegetable procurement and distribution arm of Shoprite, a regional grocery store chain. Company
policy dictates sticking with preferred suppliers, but with the significant fluctuation in produce
entering Lusaka, they often buy from brokers. Historically, Freshmark has been wary of working with
smallholders because experience has shown little success. However, they are currently working with a
very small number of smallholders close to Lusaka, and there is potential for partnerships if a
smallholder group could establish the quality, quantity and timeliness required to gain the trust of a
larger wholesaler like Freshmark. When doing business, Freshmark does not guarantee prices but sets
up a weekly delivery calendar specifying what produce they will buy during every week of the year.
They inspect arriving produce closely for quality (length, weight and color). Currently, Freshmark
8
does not have any working relationship with farmers in/around Mumbwa, but the proximity of
Mumbwa to Lusaka would be an incentive for Freshmark to start business relationships with project
farmers. (Hichaambwa and Tschirley, 2006)
Neelkanth (formerly Freshpikt):
Neelkanth (no website) is the only large-scale processor of horticultural produce in Zambia. They are
gradually scaling up, but currently can process up to 80 metric tons of tomatoes per day and 800
metric tons of beans per year. Most production comes from Neelkanth’s own farm, but the company is
buying more and more from smallholder farmers. Most recently, Neelkanth signed a multi-million
kwacha agreement with the USAID funded Commercial Agribusiness for Sustainable Horticulture
(CASH) project to work with about 5000 farmers in Lusaka and Eastern Province. However, like
Freshmark, Neelkanth demands a high level of quality and have not fully bought into working with
smallholder farmers. For example, with tomatoes, Neelkanth requires 4% solids content in most of
what they buy and smallholder tomatoes/tomatoes bought in Soweto reportedly have about 2% solids,
which is too low for canning. If smallholder farmers groups can improve the quality, quantity and
timeliness of their produce then there are very real possibilities for partnerships with Neelkanth.
(Hichaambwa and Tschirley, 2006)
RETAILERS
Most of the vegetable retailers in Mumbwa are women who run small scale businesses out of stalls
within the boma market. They come to the market early every morning and wait for random
small/medium scale farmers to truck produce from their farms into the market. Farmers sell on a firstcome-first-served basis and retailers are not guaranteed access to the vegetables that they would like
to purchase for the day. Most retailers don’t have formal buying arrangements or partnerships with
farmers and the fluctuating supply can lead to occasional price gouging by farmers.
MARKET
Retailers usually only buy a crate or 50 kg bag/sack of vegetables per day. There is a lack of adequate
storage in the market and produce not sold during the day is often left out in the elements, or becomes
subject to possible thieves. Predictably, there is no cold storage available and leftover produce is often
kept at the stalls under tarps to be sold the next day rather than in secured warehouses or buildings. As
a result of the inadequate storage infrastructure, produce degrades rather quickly leading to scenarios
where retailers sell days-old produce that is no longer fresh in order to avoid taking losses on their
investment.
Vegetable prices remain fairly consistent throughout the year. Rather than raising or lowering the
price for produce, retailers increase or decrease the quantity per unit.
VALUE ADDITION
Retailers add value to their produce by purchasing vegetables in bulk and repackaging in smaller
quantities for sale. Grading and quality control often do not take place, and the consumer ends up with
a mixed bag of higher and lower quality produce. While some retailers report seeing dried vegetables
like rape and sweet potato leaves in the Mumbwa boma market, none of the retailers reported selling
dried vegetables and the study team was unable to find them in the market over the many times they
visited during data collection efforts.
CONSUMERS
Consumers in Mumbwa have access to a wide variety of nutritious vegetables year-round due to close
proximity to a main highway and Lusaka. A majority of respondents report having seen dried
vegetables and having purchased them in the past, but there isn’t a steady supply and consumers
9
prefer fresh vegetables. The following is a list of the most popular vegetables purchased in Mumbwa
(based on a sample size of 14 consumers in three markets in Mumbwa):
Vegetable
# of
respondents
purchasing in
a week
% of
respondents
purchasing
Tomato
14
100
Average
number of
times
purchased per
week
4
Onion
14
100
2.5
Rape
13
92.8
4
Okra
8
57.1
1
Pumpkin
Leaves
Impwa
8
57.1
1
7
50
1.4
Amaranthus
4
28.6
1
Green Beans
2
14.3
1
Watermelon
1
7
1
Average size
per purchase*
Processed?
1.2 packets (4
tomatoes per
packet)
1 packet (3-5
onions)
1.8 bunches
(500g per
bunch)
1.4 packets
(500g per
packet)
1 bunch (500g
per bunch)
1 packet (500g
per packet)
1.25 packets
(500g per
packet)
2 packets
(500g per
packet)
1 small
No
No
No
No
No
No
No
No
No
*Estimates based on discussions with staff and farmers
Respondents claimed to be happy with the quality of produce (even though produce is a mixed bag),
so grading and sorting for quality might not be much of a value addition without public awareness of
the difference in quality.
CONCLUSION
The results of the beneficiary survey are very promising as most of the farmers are growing a diverse
array of vegetables. While they are working on satisfying their family’s nutritional needs at the
moment (the objective of the project), there is room to scale up if farmers can access the inputs and
market necessary for sales. Working with Sylva Food Solutions Limited is one option, but there are
also options to break into other markets locally and regionally. There are several opportunities to add
value to vegetables that are low-cost and can be done directly in the communities (drying, bulking).
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GROUNDNUT VALUE CHAIN
Groundnuts play an integral role in the livelihoods of many Zambians and are produced in varying
quantities by a majority of rural farmers. Groundnuts are second only to maize in terms of production
volume and total hectares cultivated, with approximately 8.8% of total arable used for groundnut
cultivation throughout Zambia. Groundnut production is especially important for smallholder famers
who make up more than 90% of groundnut producers in Zambia. Due to their high protein and soluble
fat content, groundnuts are a nutritious staple of Zambians’ diets and are critical in reducing stunting
in children.
Groundnuts are highly sought after for their ability to be processed into oil, peanut butter, animal feed,
and many other products, and can be transported fairly easily. As is the case for soya beans, current
demand is likely outstripping supply. Also like soya beans, groundnuts are legumes that can add
atmospheric nitrogen to the soil and increase yields of other crops when used in a crop rotation.
However, with all of the advantages of groundnut cultivation, market participation among smallholder
groundnut producers remains low with only about 45% of producers selling groundnuts. Groundnuts
remain a poorly commercialized crop for smallholder famers due to several factors including: the
germination rate and quality of recycled seed used, the labor required to manage groundnut fields and
then shell groundnuts, nutrient deficiencies in the soil (mainly calcium), and diseases and funguses
such as aflatoxins, which are bred through poor drying and storage of groundnuts.
Aflatoxins are highly toxic chemical compounds produced by species of fungus that infect grains and
legumes. Aflatoxin ingestion is associated with liver disease, cancer and immune system suppression;
it prolongs recovery from protein malnutrition and contributes to underweight status. There is also
evidence that aflatoxin exposure inhibits nutrient uptake, although more rigorous studies are needed to
confirm this. Vulnerability to aflatoxin is most acute during the weaning period when infants are
exposed to high levels of aflatoxin as they begin to eat solid foods. On a global scale, it is estimated
that aflatoxin exposure, through its effects on immune function and undernutrition, contributes to
health factors that account for 40 per cent of the total disease burden in developing countries. (AnimSomuah, et al. 2013)
Currently, aflatoxin levels in Zambia exceed the acceptable international requirement levels for
export. This is a serious issue that needs to be taken into account as the RAIN project promotes the
production and consumption of groundnuts. Training on aflatoxin awareness and management should
be included as part of regular agriculture/nutrition trainings, and RAIN farmers should be encouraged
to practice proper management, drying and storage techniques within their homes to reduce the
prevalence of aflatoxins in their groundnut harvests.
11
CURRENT HORTICULTURE VALUE CHAIN IN MUMBWA, ZAMBIA
Production
Small Farms
Medium Farms
Jungle
Beat
Local /LUN
Assemblers
Assembly
Export
Trading
Wholesale/
Processing
Retail
Community
Markets
Mumbwa Boma
Market
Lusaka Markets
Export
Markets
*Width of arrows denotes level of supply
PRODUCERS
Groundnuts are a very important staple food crop for farmers in Mumbwa as a source of protein and
natural fats/oils needed for a balanced diet. Of the 80 beneficiaries surveyed, 78 (94%) responded that
they grew groundnuts. Culturally, groundnuts are a woman’s crop to grow and the rate of beneficiary
consumption, market demand and input costs make them an ideal crop to scale up. Forty-six (57.5%)
of the beneficiaries recently planted recycled seeds either given to them from RAIN or saved in their
seed banks. For those that didn’t use recycled seed, seeds could be fairly easily procured in the local
community, and sold for approximately K35 per 10kg bag. Groundnuts have practically no input costs
apart from seed provision, with 94% of beneficiary farmers not using any kind of chemical input.
Groundnuts are planted at the beginning of the rainy season (November-December) and are harvested
between March and June depending on growth rate. Fifty-five (69%) of the beneficiaries interviewed
wanted marketing assistance with groundnuts, making it the #1 crop for requested marketing
assistance.
MARKET
There is a rapidly growing market for groundnuts (shelled and non-shelled, whole and broken) both in
Mumbwa and in the Lusaka markets. At the moment, 47.5% of beneficiary respondents were selling
groundnuts, mostly in local community markets or directly from their homestead. Most respondents
only sold small quantities due to home consumption and lack of labor to scale up and manage
production. Groundnuts sold in the community sell for approximately K20 per 5 kg and sell for
approximately K70 per 50kg bag in Lusaka.
According to the Final Crop Forecasting Data for the 2012/2013 Farming Season: Mumbwa Picture
released by the Ministry of Agriculture and Livestock, the average expected yield for medium-scale
12
farmers for the 2012-2013 season was 1.11 tons per hectare and .61 tons for smallholder farmers. As a
result of low yields per hectare and importance in the family diet, most farmers in Mumbwa kept their
harvest for food security. Those that sold groundnuts mostly sold to community markets (35 of 80
respondents) and only two respondents took groundnuts to sell in Lusaka. According to feedback from
surveys, medium scale farmers sell to the local market in Mumbwa, to local/Lusaka assemblers and
often bulk to take to Lusaka themselves.
Recently, a Zambian peanut butter producer/seed multiplier based in Mumbwa, Jungle Beat Zambia,
has started purchasing groundnuts from local communities in and around Mumbwa. The company
never pays less than market price for the nuts, will collect nuts from the community if the community
can bulk 5 tons, and will accept broken nuts. Jungle Beat Zambia also recently embarked upon a seed
multiplication initiative using an improved variety imported from South Africa called Natal Common.
This seed is smaller than the indigenous groundnuts grown in Mumbwa and will be grown as an
export product to be used in production for confectionary goods.
VALUE ADDITION
RAIN beneficiary farmers are currently adding value to their groundnuts by drying, shelling and
packaging them for sale.
Other possibilities for value addition include:
1.) Investing in improved seed varieties and inputs: purchasing inputs (including lime) to
increase calcium content to increase yield and open up potential new markets.
2.) Planting early and managing fields to stave off diseases like aflatoxins and Rosette virus.
3.) Sorting and grading groundnuts to fetch a higher price for quality produce.
4.) Bulking groundnuts for sale. Currently farmers are selling small amounts individually. If
they could organize bulk sales they could get the buyer to pick the nuts up in the community
and fetch a higher price for providing more of the product.
5.) Storing groundnuts to wait for demand to rise and prices to increase as a result.
6.) Roasting and flavoring groundnuts to fetch a higher price for processing.
7.) Packaging roasted and flavored groundnuts in smaller sachets to sell to retailers as a
finished product.
ASSEMBLERS
Of the 16 assemblers interviewed, only two (12.5%, both from Nalubanda ward) responded that they
purchase groundnuts from local farmers in their communities, and of the 80 RAIN producers
interviewed only one (1.25%) sold groundnuts to an assembler. Jungle Beat Zambia has also started to
work with local agents to purchase and bulk groundnuts, but they are having difficulties finding the
quantities they need to make the venture profitable. There are other assemblers that travel from
Lusaka to purchase from local farmers, but current levels of output in Mumbwa as well as cost for
travel make the trip prohibitive unless an assembler knows they will return with a full truck.
A larger assembler, Export traders, comes from Lusaka to Mumbwa after the groundnut harvest to
buy groundnuts from farmers at market price (fluctuates depending on time of year and supply). They
only buy direct from Mumbwa boma and do not travel to communities to purchase.
13
Jungle Beat (detailed in the Processors section) are working on establishing an assembler/buyer
program in Mumbwa based on success from their business plan in Easter Province. In the program
Jungle Beat trains farmers/traders in quality control supervision. Trained farmers/traders then travel to
communities to purchase groundnuts at market price (minus transport costs) and are given a K5
commission on each 50 kg bag of groundnuts they purchase. Farmers must use Jungle Beat bags and
transfer groundnuts from their bags to Jungle Beat bags in the presence of the assembler in order to
ensure the quality and quantity of the groundnuts. It may take one to two years for the program to
launch, but is something to keep in mind as an income-generating activity for RAIN and RAIN +
project farmers.
PROCESSORS
The main forms of processing and value addition are shelling, oil extraction and peanut butter
processing. Oil cake left over from oil extraction is high in fat and protein content and is often fed to
livestock.
At the farm level, smallholders sometimes press their own oil, make groundnut powder/flour and
peanut butter, but most of the initial value addition for smallholders is done by hand, shelling the
groundnuts. While a majority of smallholders do shell their groundnuts, this is a tedious, time
consuming task. There are cheap manual groundnut shelling machines on the market, but many of
them are not considered because of the perceived harvest losses incurred through their use. The
machines are getting better though and should be considered for study by the RAIN project.
Most processing is done in factories in Lusaka by large agribusinesses, including Jungle Beat Zambia,
Specialty Food, Freshpikt and Rabs. As of now, only Jungle Beat Zambia has an active presence in
Mumbwa.
Jungle Beat Zambia (no current website, but information can be found at
http://allafrica.com/stories/201312050474.html) is ramping up processing of groundnuts to make
peanut butter, and prefers to purchase from smallholder farmers or from small/medium traders. The
company is looking to link to or start an extension system to provide the technical assistance to boost
yields, improve quality and ensure timeliness of smallholder farmer output, so that they can work
with/buy from more smallholder farmers in the future. However, at the moment they have been unable
to source a reliable supply from smallholders in Mumbwa and as demand is high and supply is low,
they have to look to larger traders for their supply. The desire for Jungle Beat Zambia to work with
smallholders provides a promising opportunity for the smallholders of Mumbwa to produce and
market groundnuts, should groundnuts be one of the promoted products of the RAIN marketing
strategy.
While local demand for groundnuts is high, problems with aflatoxins resulting from improper crop
management and storage have stifled opportunities for expanded growth through export markets.
Aflatoxin levels most often do not play a role in most processors’ choice of who to buy from and what
price to purchase at, but in order to export groundnuts to markets like South Africa, the groundnuts
need to be tested for aflatoxins. Currently, aflatoxin levels in Zambian groundnuts are too high for
consistent export and no companies are exporting consistently. If measures are taken (sensitization on
causes and mitigation, regular testing) to get aflatoxins under control there is potential for an
exponential increase in demand through export markets.
RETAILERS
Groundnut oil and products like peanut butter are mostly sold in local supermarkets and the larger
South African chains like Spar and Shoprite. The supermarket outlets in Zambia have grown
exponentially in the past decade and have had a positive impact on small-scale farmer incomes.
14
Peanut butter in particular is widespread in markets around the country increasing the demand for
groundnuts.
Locally, smaller scale shop owners buy a small percentage of groundnuts directly from farmers and
repackage them for sale in their shops and also sell locally processed peanut butter. In the informal
local markets groundnuts are usually sold raw in different sized cups. Retailers in these open markets
often sell smaller amounts of groundnuts at higher prices to lower income families who can’t afford to
buy in bulk. As groundnuts are usually shelled by the producer before sale in Mumbwa, the only value
addition activities retailers engage in are repackaging and roasting/salting for sale in smaller (250 g)
sachets.
EXPORT MARKET
Currently, there are very few exports of groundnuts due to the prevalence of aflatoxins in the Zambia
supply chain as well as a soft market for the strains of groundnuts produced by Zambia farmers
(Chalimbana, MGV-5, Makulu Red, etc.). There isn’t a strict government enforced quality control
system to test and quarantine infected nuts, so most of the groundnut products (mostly peanut butter)
produced in Zambia do not meet the export quality standards of importing countries. Jungle Beat is
exporting a small amount of tonnage to South Africa after conducting thorough aflatoxin tests and
Export Traders is doing the same. Jungle Beats seed multiplication program, however, will increase
the company’s share of trade in the international market because Natal Common is a nut highly prized
around the world as opposed to local varieties which are enjoyed by Zambians but not in demand on
the international market. If Zambia can get its aflatoxin issues under control there is immense
potential for export to South Africa as labor costs and political/economic turmoil in the country are
forcing commercial groundnut farmers to shift to less labor-intensive crops.
CONSUMERS
Of the 14 consumers interviewed, half reported that they purchased groundnuts in the past 7 days and
the average number of units purchase per week was 3.85. All of the consumers purchased the
groundnuts roasted and in small (250g) sachets. The predominating flavoring preferred by consumers
was salty.
As a majority of RAIN beneficiaries grow groundnuts and there is a seed
multiplier/assembler/processor right in Zambia, groundnuts are a perfect crop to market. Farmers will
have to work on improving their soil (calcium) to reduce the prevalence of empty pods, will have to
take more care in sorting out shriveled and diseased seed, and may want to invest in improved seeds
(a lot of recycled seed is shriveled and cracked and has a low germination rate) like the Natal
Common variety multiplied by Jungle Beat, but value can be added at little to no cost (expect for
labor) through drying, shelling and bulking. Furthermore, farmers who want to sell to Jungle beat for
peanut butter production will not have to worry about broken nuts, which means they can shell them
more quickly and consider investing in mechanized shellers. According to Jungle Beat owner, Pieter
Niewoudt, Jungle Beat is looking to buy 20,000 tons of seed this year. He prefers to work with
smallholder farmers, but he “has had to start working with commercial farmers to buy groundnuts
because smallholders cannot produce enough.” The project has to worry about overproduction and
sales of groundnuts to the detriment of vegetable production and family consumption, but if farmers
can strike a balance, the opportunity looks very promising.
15
BUSINESS SERVICES
INPUT PROVIDERS
Due to Mumbwa’s proximity to Lusaka, the good condition of the highway tarmac, and its
geographical location as a stop on the way to Western Province, it is fairly easy to transport inputs to
the Mumbwa boma (there are at least 12 inputs dealers in Mumbwa, most selling vegetable seed). The
condition of local roads (especially in the rainy season) makes it more difficult to get a reliable supply
of diverse inputs to communities in RAIN intervention wards, but there are at least a couple of
suppliers in each of the project wards.
Seed
Out of 15 input providers interviewed, 12 were registered (including every input provider in Mumbwa
boma) seed providers and all 15 providers sold certified seed. Most seed sold in Mumbwa is hybrid,
with exceptions being Tengeru tomato, nanga rape and sometimes Nantes carrots and Clemson
Spineless Okra.
None of the input providers interviewed deal in recycled seed, which is interesting considering
recycled seed trade is common for groundnuts in Zambia. In the ward centers, however, most
groundnut seed planted is recycled seed purchased from farmers within the community, rather than
hybrid seed purchased from input providers. Jungle Beat Zambia has a farm in Mumbwa and has
embarked upon a seed multiplication program for an improved variety called Natal Common, which
they have imported from South Africa. Natal Common has a softer shell than indigenous groundnuts,
has a smaller nut and is produced primarily for export.
Seed shortages have been reported in Mumbwa (mostly in the more remote ward centers) during the
rainy season due to high seasonal demand, but the proximity to Lusaka means that stores are
replenished fairly quickly in Mumbwa boma. However, the debilitated state of rural roads makes
transportation of inputs to rural dealers quite difficult at points during the rainy season; so input
providers have to estimate the demand in their areas and stock up before the heavy rains come. Lack
of capital needed to buy inputs in larger quantities (only 3 of 8 dealers outside of Lusaka reported
receiving any inputs on credit) coupled with inaccurate estimates of seasonal demand often leads to
shortages and a limited selection of vegetable seeds in the rainy season.
Finally, preliminary research reveals that there are beneficiary farmers in the ward centers who have
begun to buy seeds in bulk (from Lusaka or Mumbwa), repackage into affordable sachets, and sell in
their communities. This trend has the potential to stabilize access to the seeds required to grow a
diverse, nutrient-rich variety of foods during periods where established input providers have
difficulties transporting bulk quantities of seed over muddy roads.
The following is a list of seeds available in Mumbwa boma and surrounding wards (taken from a
survey of 15 input providers from Mumbwa boma and the RAIN project wards):
Seed
Locations
Amaranth
Beans
Choombwa
Choombwa,
Mumbwa
Mumbwa,
Chibombo
Mumbwa,
Chibombo
Mumbwa,
Chibombo
Mumbwa
Cabbage
Carrots
Cowpeas
Eggplant
# of
retailers
selling
1 (6.6%)
3 (20%)
Unit size
Average Unit Price (ZMW)*
25g
1,2,10 kg
20
25,40,230
60,160,275,750
2 (13.3%)
10,50,100,250
g
25,30,100g
1 (6.6%)
2kg
39
1 (6.6%)
10,50,100g
15,23,35
3 (20%)
20,30,50
16
Green Pepper
Groundnuts
Impwa
Kale
Lettuce
Mustard
Okra
Onion
Rape
Soya Beans
Swiss Chard
Tomato
Watermelon
Mumbwa
Mumbwa,
Chibombo,
Shibuyanji,
Mumbwa,
Chibombo,
Shibuyunji,
Choombwa,
Nangoma
Mumbwa
Mumbwa
Mumbwa
Mumbwa,
Shibuyunji,
Nangoma, Myooye
Mumbwa
Mumbwa,
Chibombo,
Choombwa,
Shibuyunji,
Myooye, Nangoma
Mumbwa,
Choombwa,
Shibuyunji
Mumbwa
Mumbwa,
Choombwa,
Shibuyunji,
Nangoma, Myooye
Mumbwa,
Choombwa,
Shibuyunji
1 (6.6%)
3 (20%)
10g
2,5,10 kg
15
35,75,130
6 (40%)
10,25g
12,16
1 (6.6%)
1 (6.6%)
1 (6.6%)
9 (60%)
100g
10g
100g
10,25,50,100,
250,500g, 1kg
25
6.5
25
12,15,35,43.5,30,67.5,100
1 (6.6%)
13 (86.6%)
100g
10,25,50,100,
250,500g,1kg
50
20,13.5,35,25,24.5,45,87
4 (26.6%)
10,25kg
95,235
1 (6.6%)
11 (68.7%)
10g
10,25,50,100g
6.5
22,25.5,50,78
25,100,250g
22.5,185,140
3 (20%)
*Prices slightly skewed for some vegetables based on location and availability of vegetable and size
of seed packet available for purchase.
Seed prices for many of the RAIN promoted crops/vegetables were understandably cheaper in
Mumbwa Boma than in the ward centers (due to transport costs), but not by much. Of the 80
respondents interviewed, the most popular seeds purchased were groundnuts (30 respondents),
Tomato (17), Rape (11), Beans (10), Cowpea (9), Soya (9), Okra (3), Watermelon (3), and Impwa (2).
When analyzing these figures it is important to note that a majority of the respondents were still using
seeds provided by the RAIN project, affecting on the overall response on seed purchases.
While there have been seed shortages, farmers have begun to mitigate the effects of the shortage by
saving their own seed and recycling it the next growing season. The following is a list of seeds saved
by RAIN farmers (percentage based on 80 farmer respondents):
Vegetable/Legume
Amaranthus
Beans
Cowpea
Cucumber
Green Pepper
Groundnuts
Impwa
Lamaanda
Mundaambi
Percentage of
respondents saving
5%
38.75%
52.5%
1.25%
7.5%
77.5%
6.25%
6.25%
5%
17
Okra
Pumpkin
Purple Eggplant
Rape
Soya Bean
Sweet Potato
Tomato
53.75%
33.75%
1.25%
3.75%
32.5%
15%
35%
While the seed saving/recycling rate for several of the RAIN promoted seeds looks very promising, it
is important to gain an understanding of which seeds are saved from hybrid parent plants, and which
are saved from open or self-pollinating varieties. As the vegetable seeds distributed by the RAIN
project were mostly of the hybrid variety, there is a good chance that some of the seeds that are being
saved and recycled were collected from hybrid plants and will have varying characteristics when
replanted, such as lower yields and inconsistent size, shape, texture and taste.
Fertilizer, pesticide, herbicide, fungicide
For the same reasons listed above, fertilizer is readily available in Mumbwa boma and is a bit harder
to get in the ward centers. However, its cost is prohibitive (outside of use on maize and cotton) for a
majority of the RAIN project beneficiaries interviewed for this study. The following is prices of
fertilizer and other chemicals that are available in Mumbwa and surrounding areas:
Seed
Fertilizer
Fungicide
Herbicide
Pesticide
Locations
Choombwa, Nangoma,
Myooye
Mumbwa, Nangoma
Mumbwa, Nangoma,
Myooye
Mumbwa, Chibombo
Unit size
50kg
Average Unit Price
215
100,250,1000ml
1,5lt
15,25,35
50, 280
100ml
15
Tomato production had the highest rate of chemical input usage (26 respondents), Rape second (16)
and Okra third (15). Most crops/vegetables are grown with no chemical inputs whatsoever.
While there are several input providers in Mumbwa boma and in the RAIN intervention wards, there
are still problems with access by a lot of RAIN farmers. Besides supporting RAIN farmers to
purchase seed and bulk, repackage and sell to their communities, there are also opportunities to work
with a Zambian NGO called MUSIKA to help provide access to inputs. MUSIKA works with
agribusinesses to locate and train “agents” in local communities to provide training on use of
improved inputs like hybrid seeds and the proper micro-dosing of fertilizer. MUSIKA also works with
the agent to set up strategic sales and aggregation points where improved inputs are sold and
companies will purchase harvests resulting from the improved inputs. The agent is given a sales quota
and gets to keep a commission for themselves. The problem with working with MUSIKA is that they
recently closed their office in Mumbwa so a partnership would have to be negotiated through the
Kabwe office, which may prove to be very difficult.
TRANSPORTERS
There is a wide range of transportation options, both within Mumbwa boma and in the different
wards. Most transporters charge fees based on the number/weight of bags and distance travelled. Fees
per 50kg sack or crate of tomatoes fluctuates between K5 and K15 per bag/crate, based on distance to
the market. The most commonly bulked and transported vegetables/legumes are groundnuts,
tomatoes, rape, okra, and soybeans.
18
FINANCIAL INSTITUTIONS
Mumbwa has a small selection of microfinance institutions and banks that provide loans to farmers,
including:
Institution
Type
Methodology
Agora
Microfinance
Group loan
CETZAM
Microfinance
NATSAVE
Banking
Group and
Individual
Group Loan
Loan
amount
K300K2000
K2000K5000
K2000
Loan
term
6-12
months
6-12
months
6
months
Interest
rate
3.5% per
month
3.5% per
month
19%
(reducing
balance
Repayment
schedule
Monthly
Mandatory
Savings
7% of loan
Monthly
10% of
loan
10% of
loan
Monthly
Guarantee
Mechanism
Group
security
Title deeds,
properties
Group
security
Of these financial institutions CETZAM and NATSAVE also provide savings account services:
Institution
CETZAM
NATSAVE
Minimum
Savings
K20
K10
Interest on
Deposit
6% per annum
2.5% daily
Maintenance
Fee
K10
K0
CONCLUSION
Due to Mumbwa’s proximity to both input and sales markets in Lusaka there are a lot of shops selling
inputs in the district. However, there are issues of access by farmers that live further away from the
tarmac, and their needs are not being completely fulfilled by ward input providers who do not have
the capital to invest in a steady supply of inputs. Options to participate in the business services of the
value chain include supporting farmers to buy inputs in bulk to repackage for sale or work with
MUSIKA to bring agribusiness to the community. The first choice would probably be more
empowering to farmers and they would not be on the hook to sell a certain amount each month, which
they would have to do under the MUSIKA strategic sales point scheme.
There are also opportunities for financing should farmers get to the point where they would consider
scaling up their vegetable or groundnut production. Hopefully the farmers groups that will be created
as part of the RAIN Marketing Training will get to the point where they can consider financing
scaling-up their group operations. Interest rates and terms are fairly reasonable, but groups should be
trained in calculating loan costs so that they understand what they are getting themselves into by
signing up for a loan. Another option is to start savings and loan groups within farmers groups or
marketing groups.
19
CONCLUSION
For the RAIN project wards, there appears to be several concrete opportunities for farmers to sell
value-added products, both in the horticulture and groundnut markets.
Horticulture
While there is a market for fresh vegetables in both Mumbwa and Lusaka, low levels of production
coupled with inadequate capital to invest in transportation, distance from the market, inadequate
infrastructure and volatile markets have restricted most small-scale producers from participating in
local and regional markets. Instead (or out of necessity) farmers have settled on selling produce in
community markets or directly from the homestead. There is, however, opportunity for bulking fresh
produce for sale, but infrastructural issues, price and supply volatility and the ease at which vegetables
are damaged/become perishable makes this option prohibitive at this time.
If farmers were to decide on bulking produce for sale into Mumbwa there are opportunities to create
business partnerships with the retailers in the market. Currently, retailers wait for random trucks to
bring produce and they buy whatever the truck is selling, most often not getting the product they were
looking to sell that day (or sometimes they don’t get anything at all). If RAIN project farmers could
provide retailers with the products they are looking for and deliver those products to the retailer
directly (rather than the retailer having to run after a truck and bid against other retailers for the
produce), then the partnership might be mutually beneficial and lucrative. A cost/income/profit
analysis would first need to be done to determine the margins and practicality of the venture.
The market for dried vegetables in Mumbwa is fairly non-existent at the moment. Both retailers and
consumers report seeing dried vegetables in the boma market, but the study team could not find any in
the several visits they made to the market, and consumers would rather purchase/consume fresh
vegetables that are readily available year round. That being said, the market in Lusaka and abroad is
expanding at a healthy rate. There are several health food stores in the capital that have started selling
traditional dried vegetables and there are possible opportunities to partner with them. Normally
farmers would have to provide their own hermetically sealed packaging though, which may limit
RAIN farmers’ ability to work with them.
The most promising marketing/value addition opportunity rests with Sylva Food Solutions, a local
food exporter based in Lusaka. After the initial investment for training and export-grade solar dryers,
Sylva will sign a memorandum of understanding with RAIN farmers agreeing to purchase high
quality dried produce. They will even come to the village to pick the produce up, but take a transport
fee out of the sales price. Meetings with Sylva have been positive: the company pays above market
prices for produce, and it looks like the business is expanding fairly rapidly. To put sales of dried
vegetables in perspective, during the rainy season Sylva pays roughly K500 for a 50kg bag of dried
vegetables, while bag of maize sells for K60. If the partnership with Sylva is successful, maybe
farmers will shift more of their land into vegetable cultivation rather than growing large amounts of
maize, which is a heavy feeder and depletes the soil of nutrients rather quickly.
While this is a good marketing opportunity it is important to remember the main objectives of the
RAIN project: the consumption of a variety of nutrient-dense produce. The question of how access to
the dried vegetable market might affect the consumption of vegetables by project farmers should be
taken into consideration. When given an option to eat or sell produce, many might choose to sell the
vegetables rather than eat them. Sales to supplement diet and other family needs are promoted, but the
project will have to monitor sales and consumption of RAIN beneficiaries involved in the partnership
with Sylva to make sure farmers are still consuming enough to aid in the reduction of stunting in
Mumbwa. Finally, the sustainability of the partnership needs to be explored as well as protection for
the farmer against potentially volatile pricing or corporate bullying.
20
Groundnuts
The market for groundnuts is strong both within Mumbwa boma as well as Lusaka. Value addition
can be done on the farm by drying and shelling the groundnuts. Sales to Mumbwa boma would most
likely be in the form of bulk sales of raw groundnuts.
The most promising opportunity for partnership in groundnut production rests with Jungle Beat
Zambia. As their farm is located in Mumbwa, Jungle Beat Zambia could be a source of inputs as well
as a market for outputs. RAIN farmers could work with Jungle Beat to grow Natal Common seed for
export and Jungle Beat would provide the inputs and buy the harvest as long as it was of export
quality.
Alternatively, Jungle Beat is willing to buy indigenous groundnuts as well, as long as all of the
shriveled seeds have been removed. They are willing to provide groundnut seeds on credit (borrow
50kg, pay back 100kg) and will also sell seed in the community. After harvest, if farmers can bulk 5
tons, Jungle Beat will pick the groundnuts up and they also accept broken groundnuts, which will save
farmers time in shelling. Jungle Beat has also offered to provide farmers with electric seed shellers
that would be operated and maintained by Jungle Beat, but would provide shelling services for 10% of
what is shelled. There is a lot of potential in a partnership with Jungle Beat that should be explored.
Business Services
While there are input providers in RAIN project wards, their supplies are inconsistent. Preliminary
research shows that there are some RAIN project farmers who are already purchasing seeds from
Lusaka or Mumbwa, repackaging them and selling them to their communities at a small profit. Input
provision could possibly provide a lucrative income generating activity for select RAIN project
farmers. Further research should be conducted to determine the location and scale of input provisions
with
A partnership with MUSIKA would be another option for providing year-round access to seed, but the
MUSIKA office in Mumbwa recently closed and it would be difficult build a partnership through the
office in Kabwe and there may be ethical/legal issues attached to RAIN project farmers working
with/for large international agribusinesses.
Opportunities
Overall, there are available markets for both horticultural products and groundnuts and RAIN project
farmers can add value to their produce without a lot of additional investment. Their level of
participation in markets will be determined by how much surplus they produce, their planning and
quality control measures, and what kind of arrangements they can negotiate with buyers for transport
of their goods to market.
The RAIN marketing training should help provide farmers (a group of about 60 to start) with skills
and tools necessary to do their own market research, organize group harvests and bulk sales, and
negotiate with buyers. The project will help form four marketing groups of 15-30 farmers in Milandu
and Sichanzu wards and Community Development Facilitators (CDF) will administer hands-on
participatory training. The CDFs will teach marketing groups the basics of agriculture and then lead
them through a growing season to conduct market research, select a product to produce and market,
bulk sales, negotiate with buyers and ultimately make a sale. The pilot training and subsequent rollout should help farmers gain better access to market opportunities and higher prices for providing
products in bulk, which in turn should help farmers sustainably improve their own household food
security in the long-term.
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WORKS CITED
Anim Somuah, Henson S, Humphrey J, and Robinson E. (2013) Strengthening Agri-Food Value
Chains for Nutrition: Mapping Value Chains for Nutrient Dense Foods in Ghana.IDS.
Hichaambwa, Munguzwe and Tschirley, David. (2006) ZAMBIA: HORTICULTURAL RAPID
APPRAISAL: UNDERSTANDING THE DOMESTIC VALUE CHAIN OF FRESH FRUITS AND
VEGETABLES. Food Security Research Project. Retrieved from http://www.aec. msu.
edu/agecon/fs2/zambia/index.htm)
Zambian Ministry of Agriculture and Livestock (2014) Final Crop Forecasting Data for 2012/2013
Farming Season, Mumbwa District Picture. MAL.
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