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AGRIBUSINESS ENTREPRENEUR NETWORK AND DEVELOPMENT PROGRAMME (AGENT)


The AGENT programme is being implemented in Zimbabwe by CARE International with support from a variety of donors. The objective is to develop agricultural input retailers in communal areas. The programme started in November 1995 with 17 agents, and reached 500 by 1999. CARE, along with the community and Government staff, identified potential agents in communal areas according to tightly defined criteria. CARE provides basic 2 - 3 day training to the agents, covering information about the agent programme, business training and basic information on agricultural inputs and their role in agricultural production. Follow-up training and support is also provided, particularly during the first three months. Programme staff, agribusiness suppliers and Agritex (Government extension staff) are involved in providing training input.

CARE acts as supplier of inputs to the agents: it receives their orders monthly, consolidates these and makes bulk orders to the suppliers. In some cases CARE orders direct from manufacturers, in others it works through large wholesalers. In one area CARE is involved in setting up a regional wholesaler. CARE organizes the transport to the agents. Goods are supplied to the Agents on a 30-day credit from CARE, after which time interest is charged at 3% per month. The system is not directly subsidized:CARE charges for transport and levies a 2.5% administration fee. A credit limit of Z$30-50,000 (US$ 3-5,000) is allowed per agent (depending on the region). There is a systematic monitoring and auditing process by CARE: unsatisfactory agents get closer support and monitoring, and may eventually be excluded from the programme. Typical stock sold by agents is fertilizer (Compound D base dressing and Ammonium Nitrate), hybrid seeds (mainly maize), insecticides, animal feeds, animal treatments, cement, fencing and doors and farm implements. The largest sales are of fertilizers.

Analysis

IFAD evaluated the scheme in mid-1997 and found that:

  • The pilot programme had demonstrated that the approach to improve input supply based on market forces was viable.
  • Agent turnover had averaged US$1,000 per month; the first 17 agents had received US$220,000 worth of inputs; 95% of repayments were made on time and no agent had yet defaulted.
  • Agents were reaching 55% of farmers (i.e. an average of 1,100 farmers out of 2,000) in their catchment area. Farmers have to travel an average of 5 km. Farmers make an average of five visits to the agent per year and purchase both seed and fertilizer. Farmer yearly purchases were in the range Z$500-3,000 (US$30-200). On average agents were 16 km apart.
  • The mark-up of agents ranged from 5-30% with an average of 16%; most thought the mark-up would go up next year, but this would depend on competition.
  • Most farmers purchasing inputs suggest that these are additional purchases (rather than a simple transfer of retail outlet use).
  • The demonstrations had shown potential successful links between input supply and extension efforts

The Agent programme is interesting in that although it has a solid commercial base, there is also a social side: agents are selected by their community and there are certain expectations for them to provide additional services, such as advice, to farmers.

Source: NRI unpublished report.

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Natural Resources Institute 2003