Assessment of Agricultural Opportunities for Communities in the Imatong Mountain Watershed, Eastern Equatorial State, South Sudan

Report to the African Wildlife Foundation Submitted by Farm Africa November 2014 Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Contents

1. Executive Summary ...... 3 2. Introduction ...... 5 3. Background ...... 6 4. Methodology ...... 8 5. Key Findings ...... 9 Crops ...... 9 Crop Productivity ...... 9 Postharvest Systems ...... 11 Livestock ...... 11 Non-Timber Forest Products ...... 13 Youth in Agriculture ...... 13 6. Value Chains ...... 14 Source of Products ...... 14 The Maize Value Chain ...... 16 The Sorghum Value Chain ...... 18 Livestock Markets ...... 19 The Chicken value Chain ...... 20 Other Crop and Livestock Opportunities ...... 21 8. Conclusions and Recommendations ...... 22 Crops and Products ...... 22 Technical Assistance ...... 22 Finance and Credit ...... 23 Gender-based Interventions ...... 23 9. Priority Interventions ...... 24 Annex 1: References ...... 24 Annex 2: Key Informants ...... 28 Annex 3: Disaggregated Summary of Survey Data ...... 29 Annex 5: Crop Budgets ...... 37 Annex 6: Questionnaires ...... 40 Annex 7: Literature Review ...... 45

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

1. EXECUTIVE SUMMARY This study examines the opportunities that exist for communities in the Imatong Mountain region of South Sudan to improve their food security and create new income from production and sale of crops and livestock products. It contributes directly to AWF’s five-year program in Eastern Equatoria State “Improving the Integrated Watershed Management of the Imatong Mountains”.

Given the high proportion of South Sudan domestic demand that is currently being met by imports, and the low levels of productivity across the whole country, there is clearly great potential for growth of the agriculture sector. Developing agriculture and livestock potential has been identified in the South Sudan Development Plan (SSDP 2011-2013) as the most feasible way to enable broad-based economic growth and food security in the short to medium term. The Imatong mountains project could provide a practical, localized example of how this can be achieved through integration of good agricultural practices and natural resource management.

The study combined new data and desk research to conduct market demand assessments for the key products identified through household and trader surveys. During the field visits the team also met with local and national public sector officials, urban traders, importers, exporters and other project staff in focus group discussions to obtain the current perspective on agricultural development and natural resource management in the target area.

Maize is by far the most popular food crop, being grown for household consumption by 85% of the farmers interviewed. The area appears to have a maize deficit and most households are net buyers of maize. Farmers and traders reported that year-round imports of maize are needed to meet local demand. Sorghum is grown by 80% of households both for consumption as a food crop and as a raw material for beer production. Cassava is grown by 53%, groundnuts by 45%, sesame by 33% and sweet potato by 10%. About 6% of farmers plant okra, cowpeas and other vegetables.

Farmers have little or no access to formal extension services or technical assistance. This is the major constraint to be addressed by the project through a product and market facilitation approach. Building of local public and private capacity to deliver these services is the essential foundation of agricultural development in the Imatong mountain area since is a cross-cutting need to achieve sustainability of all other interventions. Access to credit for inputs at competitive rates, to selected farmers, would undoubtedly have a transformative impact on production and incomes if it were accompanied by technical support and safeguards to ensure that the credit is used for farming activities.

Lack of any form of organized postharvest systems or technologies means that households are probably losing 10-20% of their harvested crop due to pest and moud infestation during storage. Lack of storage facilities or information on postharvest processing was reported as a major problem by around 30% of farmers. Market-related issues including poor road networks to access rural markets, low prices and lack of market information were also raised as factors that contribute to crop losses and wastage.

More than 70% of households reported that they kept some form of livestock. Poultry, mainly indigenous chickens, are by far the most important contributors to food security, and are reared around the homestead by 67% of households. The chickens are both eaten by the family on a regular basis and sold when cash is needed. Goats and sheep are kept by about 30% of households and 5% own cattle.

Market traders reported unanimously that maize has replaced sorghum as the most popular staple food crop. They also agreed that Ugandan maize dominates the market although

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 trade with Kenya and other East African countries is increasing. There is an opportunity for local growers to supply the maize market but quality and price must be competitive with these established suppliers.

Most traders interviewed said that they buy their commodities from Ugandan transporters and from brokers and middlemen within South Sudan although supplies from Kenya and other regional countries are starting to arrive more frequently. The traders cited unreliable market demand; high transport costs due to poor roads; lack of access to credit facilities; and seasonality of supply, as the main constraints to expansion of their business. Import duties of 5-10% increase the prices of imported commodities but they are generally higher quality and price competitive with locally grown crops.

Food security of Imatong households is based on subsistence production of maize, sorghum, cassava, groundnut, chickens and goats. Interventions should be focused on these crops and products for which there is strong local market demand for surpluses not required for home consumption.

Chickens and sorghum are grown as much for cash sales as for home consumption. They can be linked more closely to increase net income by producing chicken feed mixes based on sorghum and commercializing chicken rearing through more intensive systems.

Production of milk and dairy products is minimal and the local population is highly dependent on imports from Kenya and Uganda. Introduction of dairy goats and improvement of cattle genetics to produce dairy herds should be the priority cash crop intervention. Milk production will also have an immediate positive impact on household nutrition and is a high value product that can be produced successfully on farms of less than one acre. The development of a smallholder dairy industry serving local populations, similar to the Kenyan and Ugandan models, would be transformational.

Comparison of market prices and crop budgets shows that, even at the low levels of productivity reported by farmers, crop production generates a gross margin of 46-200%. Since current yields for maize and other crops grown by Imatong farmers are about a third of those achieved by Ugandan and Kenyan smallholder farmers, there is a clear opportunity to compete with imported crops if good agricultural practices are adopted. Calculations show a similar opportunity for commercialization of indigenous chickens.

More than half the farmers in the Imatong area are women and many men and women farmers are under 40 years. This provides a basis for gender-based interventions such as start-up agribusiness service providers that could lead to commercialization and greater food security at rates higher than normally expected.

Charcoal production is the main forest product threatening the maintenance of the Imatong mountain forest. The economic returns from a range of fast-growing trees that can be used for charcoal production should be established and trial plots planted with lead farmers. Extraction of bamboo from the forest is also accelerating. Farming bamboo as a cash crop should be tested and on-farm trials initiated to determine its commercial viability.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

2. INTRODUCTION This report examines the opportunities that exist for communities in the Imatong Mountain region of South Sudan to improve their food security and create new income from production and sale of crops and livestock products (figure 1). It is based on the hypothesis that a move towards smallholder commercialization will reduce the need for unsustainable collection of forest products and replace it by year-round food production and income generation from sustainable farming activities.

The study was carried out to contribute directly to AWF’s five- year program in Eastern Equatoria State “Improving the Integrated Watershed Management of the Imatong Mountains It draws both on knowledge gained from Farm Africa’s experience and expertise in managing agricultural projects in South Sudan over the past eight years and new field work to gather current data on agricultural systems. It specifically takes into account AWF’s Conservation Enterprise strategy for supporting business ventures that simultaneously improve the livelihoods of rural communities Figure 1: Location of Imatong Mountains. and implement conservation Source: Encyclopedia Britannica Online practices to protect natural ecosystems. It focuses on assessing the food and income potential of crops and livestock that can be produced by smallholder farmer households drawing on water from the lower Kinyeti River system and beyond. As farming intensity increases in this area, it will be essential to select and introduce systems and train farmers on good agricultural practices that conserve water and soil resources, as well as protecting wildlife and expanding forest cover, through a fully participatory approach.

The main findings, conclusions and recommendations of the study are presented in five sections. The Background section provides a summary of the socio-economic conditions that set the context for agricultural interventions in the Imatong region. It draws upon a range of past studies and official reports. The Methodology section describes the methods and approaches used to conduct the study including desk research, field survey design and implementation, data collection and analysis. A Key Findings section summarizes data collected in the field survey relating to the crops, livestock and non-timber products currently being produced, collected, consumed and traded. The Value Chains section describes market systems for the most important crop and animal products, and identifies constraints to food production and market development. Finally, the Conclusions and Recommendations section identifies cost-effective interventions that will benefit smallholder households directly and reduce their dependence on forest and wildlife resources. These provide the basis for interventions by AWF that will improve livelihoods whilst having a positive environmental impact. They will consolidate and create new market linkages; build farmer group capacity; and contribute to institutional learning and policy development. The assessment and recommendations are selected based on conservation, as well as farming outcomes, and are designed to increase food production and income generation whilst simultaneously improving management systems for ecosystem conservation and regeneration. 5

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

3. BACKGROUND Smallholder agricultural is the main economic activity in South Sudan with around 80% of the population depending on agriculture, livestock or forestry for its livelihood. Up to 30% of the rural population has received food aid in recent years (FAO and WFP Reports, 2010) and, according to a report by The Oak Institute (2011), 50 percent of the population lives below the poverty line. This report, focusing on the regulatory framework, lack of economic infrastructure and access to finance, confirmed that economic development has been very uneven and that the country has underperformed in many agricultural production areas. Overall, there is a consensus that productivity is low in comparison to neighboring countries (see Annex 5) and subject to major annual fluctuations since more than 95% of agricultural production is rain-fed. As a result, the country is a net importer of agricultural products from the regional markets, including 40% of its staple cereal crops from neighboring countries, particularly Uganda and Kenya. Total imports are estimated to be in the range of $200-300 million a year (South Sudan Infrastructure Action Plan, 2010). According to the most recent baseline household survey, more than 75% of rural households consume cereals (IITA, 2009) with sorghum, maize, millet and rice being the dominant staple crops. This was confirmed by Farm Africa’s field survey in the Imatong region carried out in 2014 as part of this study (see below).

Given the high proportion of domestic demand that is currently being met by imports, and the low levels of productivity across the whole country, there is clearly great potential for growth of the agriculture sector. Therefore, developing agriculture and livestock potential has been identified in the South Sudan Development Plan (SSDP 2011-2013) as the most feasible way to enable broad-based economic growth and food security in the short to medium term. The Imatong mountains project could provide a practical, localized example of how this can be achieved through integration of good agricultural practices and natural resource management.

Eastern Equatoria has many conflict-related, socioeconomic constraints that affect the country as a whole. For example, the South Sudan Development Plan (SSDP 2011-2013) estimates that only 27 percent of inhabitants of EES have ever attended school and the literacy level stands at 19 percent while access to clean drinking water is estimated to be only 63 percent. There are few SMEs serving the farming communities and social and economic infrastructure is extremely underdeveloped. All-weather roads are rare and there are insufficient healthcare centers and schools to meet basic needs. Overall, EES is an impoverished region with most households subsisting on pastoralism and rain-fed farming with minimal use of inputs. Availability of food and water is a constant concern and creates conflict between various ethnic groups. The region has a long history of instability and emigration, due to the civil war and cattle rustlings, and returning populations are now putting increased pressure on the state’s natural resources (AWF, 2013). Although these factors will inevitably have a negative impact on the rate and scale of agricultural development, Eastern Equatoria has a range of microclimates, including those in the Imatong region, with high potential for competitive agricultural production, that can be utilized to have immediate impact on domestic food production and income generation by smallholders.

Communities in the semi-arid areas of the Imatong Mountain region, have traditionally practiced a pastoral-nomadic lifestyle, where 3-4 months in a year they move their livestock in search of water and pasture. Opportunities exist for AWF to introduce fodder crop production to these pastoralists and to make improvements in the genetic potential of their goat and cattle herds that will increase productivity and reduce pressure on rangeland vegetation. The upper watershed of Kinyeti River has significant opportunities for micro- irrigation and crop production if water conservation and short cycle cropping systems are introduced. Inhabitants around the Imatong mountains range rely heavily on the forests for shelter, cultivation, fuel, hunting, food, fodder, and medicine, with forest timber, firewood, 6

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 charcoal, honey and bush meat providing the main or only sources of income for many households. However, the climate around the Imatong range is temperate and fairly constant throughout the year with day temperatures of up to 35oc, dropping to 15oc at night. The average annual rainfall is reported to range from 1,494 mm in Katire to 2,261 mm in Gilo (Imatong Forest Massif Report, 2009). These conditions are suitable for high volume production of grains and specialist production of high value horticultural crops if market systems are developed to meet growing urban demand.

In summary, the long history of conflict and unregulated, subsistence agriculture and pastoralism is well documented and provides a database of knowledge than can be used to design sustainable agricultural interventions that will benefit rural households and be compatible with the conservation of the Imatong mountains region. Some of the mistakes, constraints and lessons learnt are unsurprising and common to many underdeveloped agricultural communities but are, nevertheless worth recording and taking into account by the AWF project:

 Farmers have little or no access to formal extension services or technical assistance (USAID, 2009 Report on Expanding Agriculture and Food Security in South Sudan).The major constraint to be addressed by the project through a product and market facilitation approach.  Smallholder farmers and SMEs have little or no access to finance. Not an immediate problem since the focus will be on low input cropping systems and informal financial resources and it can probably be addressed over the medium term for successful farmers.  There is strong competition from imported commodities. If Imatong farmers adopt good agricultural practices they will be competitive.  Labor-saving technologies and inputs are not readily available. The project must work with private sector suppliers to address this problem.  Literacy and numeracy rates are extremely low. Training tools must be adapted to deal with this common problem.  Animal genetic quality, particular for dairy cattle and goats, is low and animal health services are almost non-existent. A major area for technical assistance interventions.  The lack of enough water and pasture for livestock causes conflicts between communities. The project can include a conflict resolution component.  The target region has very poor roads, communication systems and other infrastructure. These are major problems for commercialization but may improve by the time the project farmers generate surpluses that cannot be absorbed by local markets.  The regulatory framework around land ownership and use is not always clear or enforced. This is a constraint to investment in new agricultural activities at all levels. However it is not an area where the project can have any decisive influence.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

4. METHODOLOGY To complete this assessment, Farm Africa used a combination of desk research and data collection through informant interviews, household surveys and focus group discussions. After meeting with AWF, the parameters to be included in the analysis were agreed and survey tools developed. Desk research involved a literature review of relevant documents including AWF’s Conservation Enterprise strategy, relevant project design papers, the Wildlife Conservation Society’s work on the Imatong Mountains, Farm Africa project reports on South Sudan and specific commodities, reports from other projects in the area and official statistics from the South Sudan government, where available.

Primary data was collected through a series of discussions with farmers, traders, government officials and development practitioners. A household survey was conducted to highlight farm enterprises that hold some potential to generate household incomes for the affected communities. A questionnaire was designed to collect information about farming and non-farm activities. It was also aimed at collecting information about the challenges the respondents face in crop and livestock production.

Data collection was carried out by a team comprising of four (4) enumerators with agricultural extension experience and fluent in the local language, supervised by two Farm Africa consultants. The enumerators were trained and the questionnaires tested and modified through preliminary interviews with typical farmers. The fieldwork period took five (5) days, beginning September 8, and ending on September 12, 2014. The structured questionnaire was administered to the adult male or female responsible for key farming decisions in the household.

The selection of survey sites was determined by the intensity of agricultural activities around the Imatong and Katire Payams. A random sample of 154 households was taken in eight communities, with individuals interviewed using the customized survey tool (Annex 5). The resulting distribution of the sample of households across the location in the survey areas is presented in Table 1 below. Of the respondents, 53% were male and 47% female.

Table 1: Disaggregation of Respondents by Location and Gender Location Total no. of Male no. (%) Female no. (%) respondents Imilai Boma 43 24 (56) 19 (44) Isuak 4 4 (100) 0 (0) Cecere 8 1 (13) 7 (88) Katire Central 29 16 (55) 13 (45) Lohui 21 15 (71) 6 (29) Hiniso 21 9 (43) 12 (57) Lafi 14 6 (43) 8 (57) Ngeria 14 6 (43) 8 (57) Total 154 81 (53) 73 (47) Source: AWF/ Farm Africa Survey 2014

A trader survey was also conducted in the markets around Torit to obtain specific information on costs and margins at different levels of the value chain. A total of 12 traders were randomly selected and interviewed, using a market trader checklist (Annex 5). Data collected included information on trader characteristics and trading activities and practices.

The study combined the field survey data and desk research to conduct market demand analyses for the key products identified through the household and trader surveys. During the field visits the team also met with local and national public sector officials, urban traders,

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 importers, exporters and other project staff in focus group discussions. Further disaggregation of respondent data is presented in Annex 3.

5. KEY FINDINGS The main objectives of the field survey were to determine:

 The relative importance of crops, livestock and forest products contributing to household food security and income generation for smallholder households in the target area.  Productivity levels and the use/availability of inputs that contribute to crop and livestock yields and overall production levels for the major crops and animal products  Postharvest losses, processing and marketing systems being used.

These factors are cross-cutting in their impact on food security and incomes and are summarized below. Information relating specifically to individual products and value chain parameters is presented in subsequent sections. Crops

Maize is by far the most popular food crop, being grown for household consumption by 85% of the farmers interviewed (figure 2). The area appears to have a maize deficit and most households are net buyers of maize. Farmers and traders reported that year-round imports of maize are needed to meet local demand.

Figure 2: Percentage of households planting various crops

Source: AWF/ Farm Africa Survey 2014 (Refer to Data Analysis Summaries in Annex 3)

Sorghum is grown by 80% of households both for consumption as a food crop and as a raw material for beer production. Cassava is grown by 53%, groundnuts by 45%, sesame by 33% and sweet potato by 10%. About 6% of farmers plant okra, cowpeas another local vegetables (figure 2). Crop Productivity

Most households adopt low/zero input-low output, subsistence farming systems, focusing on food crops that are stored for home consumption. Crops may be sold in an emergency that requires cash, or to avoid wastage when surpluses are produced that cannot be consumed

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 in a reasonable time and prolonged storage would result in wastage. Farmers reported that infestation with pests and diseases is the most serious production problem affecting yields of all crops. Linked to this is the lack of extension or any form of technical assistance that would create demand for agrochemicals to reduce pest damage and fertilizers to increase yields (figure 3).

Figure 3: Crop Management Challenges

Source: AWF/ Farm Africa Survey 2014

Observation of crops during the survey confirmed that smut diseases and leaf streak viruses are widespread on sorghum and maize. The parasitic weed “striga harmonthica” is also a problem for maize production in some areas. Lack of weed control on most farms is also a significant factor in reducing yields.

Figure 4: Sources of Seed Farmers have little or no knowledge of different varieties of seed that are available and, as a result, depend mainly on saved seed with low yield potential (figure 4). Stimulation of demand for higher-yielding and drought tolerant maize seeds could have a major impact on food security in the region and reduce dependence on imported grain. Some farmers reported buying maize seed from local markets but this appears to be commercial grain imported from Uganda.

Source: AWF/ Farm Africa Survey 2014

A related question posed to farmers on the main constraints faced in their farming enterprises produced similar answers. Lack of seed and planting materials was seen as a major challenge, followed by lack of finance and credit to purchase inputs. About 30% of farmers also raised the issue of unpredictable weather conditions that could be related to climate change factors in the region.

Access to credit for inputs at competitive rates, to selected farmers, would undoubtedly have a transformative impact on production and incomes if it were accompanied by technical support and safeguards to ensure that the credit is used for farming activities. Presently, Equity Bank, KCB and Frontier Micro-Finance are offering loans in EES but very view of the 10

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 households in Imatong have collateral to qualify for these commercial loans, so alternative forms of microfinance need to be explored.

Figure 5: Main Farming Challenges

Source: AWF/ Farm Africa Survey 2014 Postharvest Systems

Although it was not possible to quantify postharvest losses, the lack of any form of organized storage systems or technologies means that households are probably losing 10-20% of their harvested crop due to pest and mould infestation during storage. Lack of storage facilities or information on postharvest processing was reported as a major problem by around 30% of farmers. Market-related issues including poor road networks to access rural markets, low prices and lack of market information were also raised as factors that contribute to crop losses and wastage (figure 6).

Figure 6: Postharvest Problems

Source: AWF/ Farm Africa Survey 2014

Households visited during the field survey were either storing grains in gunny bags or in heaps on the floor. Introduction of hermetic storage bags and simple techniques to grade and dry grains before storage would have a major impact. This is particularly important during rainy periods when Imatong and Katire Payams are cut off from the nearest urban market in Torit because the roads are flooded and impassable. The poor road system also limits farmer knowledge on crop prices and demand even in relatively close markets. Any interventions aimed at improving food security or raising incomes from sales of produce should include specific activities and technical support to improve postharvest systems, technologies and market information. Livestock

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Figure 7: Relative Importance of Livestock

Source: AWF/ Farm Africa Survey 2014 (Refer to Annex 3 for detailed analysis)

Chickens and goats are reared in “free range” systems with no additional feed supplementation. Cattle and goat populations appear to be low compared to the large areas of unused land that could be used for grazing. Productivity of livestock is low for the same reasons found with crops. Farmers lack extension and technical support; demand for inputs is low so availability is extremely limited and pest infestation reduces growth rates; households lack capital to increase their herd sizes to economic levels. Livestock farmers cited livestock diseases; minimal access to veterinary services; no access to credit; theft and shortage of pasture as their most important constraints (figure 8).

Milk production from either cattle or goats is minimal and the region is totally dependent on imports of processed milk and milk powder from Uganda and Kenya. This contributes significantly to malnutrition amongst children and young women. Interventions to introduce dairy goats and improve cattle genetics, coupled with planting of forage and feed crops, would be highly popular with smallholders in the region. Milk production for the local market has more potential than any other intervention to generate new income from small areas of land.

Figure 8: Livestock Management Challenges

Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Non-Timber Forest Products

Estimating the contribution of NTFPs to household income was not a priority in the survey design since its purpose was to identify agricultural interventions that could reduce exploitation of forest resources. Nevertheless, respondents were asked questions related to forest products to gain some insight into the amount of income required to reduce dependency on the forest (Annex 5). Their replies indicated that the value of products extracted from the forest is higher than generally reported. Traders also indicated that, in addition to the communities neighboring the forest, the actual value should take into account town dwellers from Torit who also collect products from the forest, especially timber, bamboo, charcoal and honey.

There is an increasing quantity of bamboo poles coming from the Imatong forest used for local construction of huts and furniture, and for selling to traders. The poles are regularly transported to the markets in Torit and Juba and, according to the survey, some households are harvesting 35-100 bamboo poles per month. As an income diversification strategy, there would seem to be an opportunity for sustainable production of bamboo as a commercial product planted outside of the forest.

Although dry wood is used for cooking by most rural households, there is a large and growing urban market for charcoal and it is, by far the most important income-generating product coming from the forest. In terms of intervention strategy; there is an obvious need to introduce fast-maturing trees that can be used for charcoal production. Youth in Agriculture

One of the unexpected results of the survey was the proportion of relatively young people who were working as farmers. Unlike neighbouring countries where the age of farmers has been gradually increasing and is almost 60 in Kenya (USAID/KHCP data), 75% of farmers interviewed in the Imatong survey were under 35 years. The reason and accuracy of this statistic need to be investigated but if it is a true representation of the age profile of Imatong farmers it should have a significant influence on the interventions selected for agricultural development. Young people are more likely to adopt new practices and technologies and can adapt readily to changes and new ideas.

Figure 9: Age Distribution of Farmers Interviewed

Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

6. VALUE CHAINS Previous studies have highlighted South Sudan’s weak internal marketing systems for agricultural products and high dependence on imports of staple crops and processed products. The farmer survey results summarized above confirmed these reports from the perspective of smallholder farmers in the Imatong mountain target zone. To obtain additional information on the current market conditions, produce traders were interviewed in Torit, the closest urban market to Imatong, and Juba, the capital city. The main objectives of the trader survey were to validate reports on the source of the main commodities; map the number and functions of value chain actors; obtain data on costs, payment terms and price accumulation from supplier to retailer; and, most important, to assess market demand for crops that can be grown by Imatong farmers. Official data on volumes and prices are not available in South Sudan so much of the information provided below is based on observations and interviews with traders carried out over a few days. Nevertheless, strong markets were identified for crops and products, confirmed by consensus amongst the traders and retailers that could be targeted for commercialization by farmers in the AWF project region. Source of Products

The unstable political situation, relatively small and fragmented market, and poor infrastructure, even in Juba, have discouraged investment by major regional commodity companies. The urban markets are dominated by relatively small-scale traders by East African standard, handling less than 50 tons of grain and less than 100 goats per month (table 2)

Table 2: Turnover by Traders, per product

Traders Agricultural Produce Average product per trader month Interviewed 1 Maize Grain and Flour 7 786 bags x 50kg 2 Beans 6 165 bags x 50kg 3 Poultry 3 2,333 4 Goats 1 60 Source: AWF/ Farm Africa Survey 2014

Most traders interviewed said that they buy their commodities from Ugandan transporters and also from brokers and middlemen within South Sudan (figure 10). Supplies from Kenya and other regional countries are starting to arrive more frequently. The traders cited unreliable market demand; high transport costs due to poor roads; lack of access to credit facilities; and seasonality of supply, as the main constraints to expansion of their business.

Figure 10: Source of Products purchased by Traders

Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Import duties of 5-10% increase the prices of imported commodities but they are generally higher quality and price competitive with locally grown crops. About 40% of business is through cash purchases and 60% on short-term (1-2 weeks) credit terms. Volatile exchange rates and lack of banking services in some towns slow down the transactions and increase the cost of doing business.

The main customers for bulk agricultural commodities traders are resellers who buy to retail in the local markets. There are no large scale commercial grain processors/ millers or other value addition companies. The retail network is mainly outdoor markets with no facilities for adding value. Packaging of flour is done for 10kg, 25kg and 50kg packs. Any quantity less than 10kg is weighed in the open air markets and sold in any available bags. Consumers are price rather than quality conscious and retail margins are less than 10%. No value addition is carried out by wholesalers or retailers. As in other countries in East Africa, grain is taken by consumers to thousands of small scale flour millers operating throughout the country.

Table 3: Retail Prices of the Main Food Crops in Juba

Product Retail Unit Prices in SSP Maize grain 1kg 2-2.5 Sorghum grain 1kg 3 Groundnut 1kg 3-9 Cowpeas 1kg 16 Sesame 1kg 16 Green beans 1kg 6 Dry beans 1kg 6-7 Uncleaned beans 1kg 3 Cassava 5pcs 5 Source: AWF/ Farm Africa Survey 2014

Several large retail markets supply consumers of all types in Juba, each with different characteristics. Konyokonyo is known for selling horticultural produce imported in to the country from neighbouring countries and is used by hotels, restaurants and higher income consumers.

The market is located on the outskirt of Juba city and is well known for selling poultry and fresh vegetables from Uganda. Traders interviewed reported selling an average of 100 chickens per day. Custom market is a commodity market for cereals, flour, and sugar, cooking oils, cassava, groundnuts, sorghum, millet and other staple food crops.

There are few commercial agricultural processors in South Sudan except for the small scale grain millers based in and around the local markets. Several farmers’ cooperatives have invested in maize milling facilities and these could provide a commercial model for Imatong farmers if production increases.

There are only five micro-finance institutions operating in South Sudan - BRAC, Finance Sudan, Frontier Microfinance Limited, RUFI and Sudan Micro Finance Institution (SUMI). Limited financing options raise the cost of doing business in the country. And without a public credit registry or private credit bureau in Juba, creditors cannot obtain reliable information on debtors. Again without a collateral registry, entrepreneurs have a hard time using their assets as guarantee for loans. The overall result is a slow business growth in a country that has vast business potential and rich agricultural land (Farm Africa/ AGRA/ AECF Report, 2012, pp. 8)

Traders interviewed cited poor quality products, unreliable markets and the cost of transport as the three main constraints in all commodity value chains (figure 11). Financial problems

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 related to lack of credit, no mobile payment systems, and absence of insurance also contribute to market inefficiencies and significantly higher prices than in the other East African countries.

Figure 11: Challenges Faced by Traders in Agricultural Commodities

Source: AWF/ Farm Africa Survey 2014 The Maize Value Chain

Market traders reported unanimously that maize has replaced sorghum as the most popular staple food crop. They also agreed that Ugandan maize dominates the market although trade with Kenya and other EA countries is increasing. There is an opportunity for local growers to supply the maize market but quality and price must be competitive with these established suppliers.

Figure 12: The Maize Value Chain

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

The maize value chain actors and their interactions are shown in figure 12. It is a relatively undeveloped market system with few layers of processors and traders, and no formal animal feed or other types of processor beyond milling into flour. The key players are: o Medium to large scale farmers in Uganda o Smallholder farmers in South Sudan o Large and medium scale millers in Uganda o Small scale hammer (posho) millers in South Sudan o Wholesalers and Transporters o Retailers o Consumers

In Custom market, the largest commodity market in South Sudan, the wholesale market price for maize grain was quoted as $500 per ton (SSP 2,750) during the survey but on-line prices were reported at $400-420. Taking the most conservative price of $400, the price of maize at (August 2014) was at least 24% above the next highest market in the region (table 4). With Juba prices at $119 per ton higher than Kampala, the cross-border trade with Uganda appears to have high gross margins even taking into account the cost of transport.

Table 4: Comparative Wholesale Prices for Maize in the East African Region.

Quantity Price in US$

1 Maize price in Juba 1 metric ton 400 2 Maize price in Kigali 1 metric ton 322 3 Maize price in Nairobi 1 metric ton 284 4 Maize price in Uganda 1 metric ton 221 Source: Regional Agricultural Trade Information Network (RATIN)

Based on prices quoted above, the average wholesale price for maize in August 2014 was at least SSP 2.5 per kilo, and significantly higher in rural areas of South Sudan depending on distance from the main importers. Annual prices rise as high as SSP 3.5 per kilo in periods of scarcity but rarely fall below SSP 2.0 per kilo (figure 12). Even at the low levels of productivity reported by farmers, this represents a gross margin of 46% (table 5). Since current maize yields of Imatong farmers are about a third of those achieved by Ugandan and Kenyan smallholder farmers, there is a clear opportunity to compete with imported maize if good agricultural practices are adopted.

Table 5: Current Gross Margins obtained for Maize by Imatong farmers Revenue (SSP) 1 Output kg per acre 432 (at SSP 2.5/kg) 2 Total Revenue (SSP)/ acre 1080 Variable Costs (SSP) 3 Land Clearing and ploughing 390 4 Seed purchase 0 5 Planting and weeding 150 7 Harvesting (family labour) 0 8 Storage (in homestead) 0 9 Transport cost 200 Total Variable Cost 740 Cost per kg 1.71 Gross Margin SSP/acre 340 Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Figure 13: Trend in Nominal Maize Retail in Juba Konyokonyo Market in 2014

Source: USAID/ Fewsnet Agricultural Information 2014 The Sorghum Value Chain

Sorghum was traditionally the staple food throughout much of South Sudan but is increasingly being replaced by maize, particularly in southern areas including the Imatong mountain region with ready access to the Ugandan and Kenyan markets. The main outlets for sorghum in these areas are as a cash crop for beer production or as a supplementary grain for home consumption. Opportunities exist for using sorghum in animal feed but these have not developed into formal marketing systems and most transactions take place at household and village level (figure 14).

Figure 14: Sorghum Value Chain Map

Household Local village market Consumers/local Consumption beer producers

Smallholder farmers Artisanal Grain Millers

Figure 15: Sorghum Prices in Juba 2013-14

Source: USAID Fewsnet

Sorghum prices ranged from SSP3 to SSP6 per kilo during 2013/14 (figure15) compared to a production cost of SSP 1.95 (table 6). As with maize, the current margins available to farmers are potentially high if efficient market linkages can be established, ranging from 50% to 200%. Sorghum also has great potential for chicken feed and there can be integrated with 18

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 more productive rearing of chickens to add value and generate high levels of income for smallholder farmers in the Imatong target area.

Table 6: Current Gross Margins Obtained for Sorghum by Imatong Farmers Revenue (SSP) 1 Output kg per acre 380 2 Total Revenue (SSP)/ acre 1,140 (at SSP 3.0/kg) Variable Costs (SSP) 3 Land Clearing and ploughing 390 4 Seed purchase 0 5 Planting and weeding 150 6 Harvesting (family labour) 0 7 Storage (in homestead) 0 8 Transport cost 200 9 Total Variable Cost 740 Cost per kg Gross Margin 400

Livestock Markets

Trader surveys in Juba indicated a strong market for chicken and goats but not for cattle (table 7). Indigenous chicken retailed at SSP65-75, while goats retail for SSP200-500 depending on body size. Indigenous cows retail for a price ranging from 1500 to 2000. On average traders sell more than 100 chickens and 30-50 goats in the Custom market every Saturday.

As described in previous sections, cattle are hardly owned by the majority of Imatong farmers, but goats and chicken are reared by the majority of households. The opportunities for increasing goat productivity and income elate to introduction of dairy goats and planting new forage and fodder crops. These are relatively long term investments that will involve changing the behavior of farmers who are used to extensive grazing of goats.

Opportunities for chickens are more immediate. Currently, most households in the Imatong areas raise chicken for subsistence purposes (see above) with no attempt to produce surplus birds for sale on a commercial basis. The permanent absence of locally produced chicken in the new Torit market has generated a market for imported chicken which has been taken up by Uganda traders. Various NGOs have tried to promote local production of indigenous chicken but without any significant success since they were unable to integrate the supply of essential veterinary products with technical assistance and credit to buy chicks. There is an opportunity for AWF to take the lead in developing a new, smallholder-based market system for chicken.

Table 7: Market prices for Chickens, Goats and cattle in Juba, 2014 Retail Price in Key livestock Unit Sales SSP 1 On average each trader sale 100 birds/ day Indigenous Chicken Large size 65-75 Tax on imported poultry $7/ bird Small size 200-300 On average traders sale between 30-50 2 Goat Large size 350-500 goats during market days 3 Indigenous Cow Large size 1,500-2,000 Less than 5 sold on market days Source: AWF/ FARM Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

The Chicken value Chain

Currently the indigenous chicken business in South Sudan is skewed in favour of Ugandan producers and traders by virtue of their economies of scale. Uganda is advanced in terms of poultry production and readily available veterinary extension services. Additionally, it has a well-established chicken feed production industry with a range of feeds available at competitive prices. According to estimates provided by traders, 80% of the chicken consumed in South Sudan comes from Uganda. By contrast, production in Imatong and other areas of South Sudan is unplanned and has no organized market system (figure

Figure 15: Chicken Value Chain Map

The surveys of growers and traders indicated significant price differentials between markets caused by transport costs and fluctuations in availability of both local and imported birds. The retail prices of chicken in the local village markets (Imatong watershed) was 30-40SSP/ bird; in Torit, the price ranges was 40-50SSP; in Custom, Konyokonyo and new Gumbo markets in Juba the prices ranged from SSP 65 to 75 per bird. Current production costs incurred by the farmers surveyed are almost zero since they hatch their own eggs, use no antibiotics and rarely cage their birds. Although the chicken producers depend on natural incubation with good rates of success, the disadvantage of this practice is seasonal fluctuations in flock sizes following weather patterns. With minimal technical assistance and training, seasonal availability of birds could be better synchronized to meet peak season market demand and achieve higher prices.

With more information on poultry health and management it is likely that some farmers will increase their flock sizes and provide the lead in commercialization of the local chicken industry. 20

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Market system analysis in Kenya (KARI, 2013) has shown that indigenous chicken and their hybrids perform well under free range production conditions and have higher acceptability and demand in egg and meat markets than poultry products from intensive systems. Other Crop and Livestock Opportunities

Although maize, sorghum and chickens offer immediate pay-off in terms of household food production and generation of new income, both of which contribute to food security, the study and field surveys also indicated that other food and income generating opportunities exist.

Although cassava was not reported as a major crop in demand in the Imatong region, it represents an important food safety net throughout the Green Belt areas in three Equatoria States as well as part of Lakes and Western Bahr el Ghazal (FAO). Future demand is therefore likely to grow. Cassava has the advantage that it can be harvested over a long period and stored for extended periods after solar drying. Farmer groups can therefore aggregate commercial quantities over a period of months and transport to markets when roads are passable. Market prices reported for cassava products in Custom, Libiya and Konyokonyo markets in Juba (table indicated that this could be a valuable cash crop that suits the current situation insofar as it can be marketed successfully even with the poor road infrastructure whilst also providing food for household consumption when grains are in short supply.

Table 8: Prices of Cassava Products in Juba Markets Respondents Product Unit of Measurement Market price (SSP) Cassava Tubers 4pcs 10 5 cassava retailers Cassava Chips 1kg 1.5 were interviewed in Cassava Flour 1kg 2-3 Custom market Sack of Cassava 100Kg 155-160 Chips Sack of Cassava 100Kg 200-205 Flour Source: AWF/ Farm Africa Survey 2014

The practice in the market place in Juba is that dry cassava chips are milled into fine flour and sold separated or as composite flour (when mixed with maize flour). Similarly, cassava occasionally get mixed with sorghum flour and sold as composite flour in the market.

Traders confirmed a strong demand for all food crops that is likely to increase in future. Gross margins for groundnut, beans and cassava are similar to those illustrated above for maize and sorghum, and have the same potential to be improved with the adoption of good agricultural practices.

Another observation in Juba markets was that fresh horticultural produce is in short supply and is being flown in from Nairobi for sale at extremely high prices. Although logistics would prevent these cops being supplied from the Imatong area at present, there is a strong case for promoting small-scale home gardens to improve household nutrition and prepare farmers for any market opportunities that may arise in future.

The most obvious opportunity for livestock development is in milk production. Almost all milk and milk products are imported at present and the development of a smallholder dairy industry serving local populations, similar to the Kenyan and Ugandan models, would be transformational, contributing immediately to household food security and income. Milk is a high value product in demand that can be produced efficiently by farmers with less than an acre of land. Many households in the AWF project target zone are in this category (see

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 annexes). The dairy initiative should have two components. Since many households already have goats that do not produce milk, they will adapt readily to the introduction and rearing of goat breeds with milk potential. Households with the resources to buy a dairy cow can be assisted to source an animal from Kenya and act as lead farmers in milk production whilst also providing a market for forage and fodder crops for their neighbors.

8. CONCLUSIONS AND RECOMMENDATIONS Suggestions for interventions that could have both immediate and longer term impact on food security and income generation for Imatong households have been made in various places through the previous sections. These are repeated and expanded below to provide more specific recommendations for designing the agricultural component of the AWF’s five- year program in Eastern Equatoria State to improve the integrated watershed management of the Imatong Mountains. Crops and Products

Production of milk and dairy products is minimal and the local population is highly dependent on imports from Kenya and Uganda. Introduction of dairy goats and improvement of cattle genetics to produce dairy herds is an appropriate cash crop intervention. Milk production will also have an immediate positive impact on household nutrition and is a high value product that can be produced successfully on farms of less than one acre. Interventions such as piloting cross-breeding programs of improved goat genetics with local breeds to boost milk production are good options.

Successful dairy development will require production and preservation of forage and fodder crops. Selection and pilot planting of crops for animal feed should take place simultaneously with interventions targeting milk production. A starting point can be to pilot test and introduce forage legumes such as Leucaena species, and if adaptable, it could provide dry season feed. Additionally, promotion of dairy cattle can be enhanced if grass crops like Sudan grass (a local sorghum landrace), Rhodes grass and other grasses that can be used as livestock feeds are pilot-tested.

Extraction of bamboo from the forest is accelerating. Gross margins that can be achieved by farming bamboo should be calculated and on-farm trials initiated to determine commercial viability of bamboo as a cash crop.

Lack of extension and technical assistance is universally reported by farmers as a major constraint to increasing productivity. Building of local public and private capacity

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 to deliver these services is the essential foundation of agricultural development in the Imatong mountain area since is a cross-cutting need to achieve sustainability of all other interventions.

Lack of inputs from seed, to fertilizer, to storage equipment, is a major limiting factor on yields, productivity, food security and farm income generation. Technical assistance, including on-farm, applied research, should aim to create new demand for inputs that will drive greater availability and private sector extension services needed for long term sustainability.

Farming systems currently being used are based on manual labor and minimal technical inputs. Technical assistance should focus on conservative techniques that minimize use of agrochemicals and maximize emphasis on techniques and integrated soil management, supported by low impact, labour-saving technologies.

Postharvest losses are contributing significantly food insecurity. Cost-effective household storage systems utilizing hermetic bags and locally-fabricated silos, coupled with training in postharvest handling and preservation techniques must be included in the development strategy. Finance and Credit

Almost all farmers regard access to credit and finance as essential to increase farm productivity and achieve food security. Since commercial finance and microfinance either requires collateral that most households do not have, or is too expensive for small-scale farming enterprises, loan products based on traditional systems or social investment initiatives, should be tested. Gender-based Interventions

Vegetable production is minimal at present. Young people and women take quickly to high value horticultural crops that often generate significant cash returns within three months. Intensive production on areas of less than 500-1,000 m2 should be piloted to increase the nutritional status of families and generate cash from sales of surpluses.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

9. PRIORITY INTERVENTIONS Improvements to smallholder agriculture around the Imatong Mountain Watershed offer the best opportunity for reducing pressure on forest resources. Suggestions for interventions that could have both immediate and longer term impact on food security and income generation for Imatong households have been made in various places through the previous sections. These are drawn upon below to provide a basic design for the agricultural component of the AWF’s five-year program in Eastern Equatoria State to improve the integrated watershed management of the Imatong Mountains. Interventions should aim to achieve four main objectives related to productivity, income generation, smallholder capacity building and finance (figure 16).

Figure 16: Overview of the Proposed Agriculture Component

Objectives Activities Increase Food Good agricultural practices, access Production to inputs, labor saving technologies

Purpose Generate Income Introduce cash crops such as from Agriculture bamboo, market linkages To increase food security and improve Build Farmer Organize farmer groups, training in livelihoods Capacity farming as a business

Increase Access to VSLA, table banking, record

Finance keeping, micro-finance linkages

Purpose: To increase food security and improve the livelihoods of people living in the Imatong Mountain Watershed, thereby contributing to conservation efforts in the target area. Specific objectives and activities

Objective 1: To increase household food production and availability Smallholder farming systems in the program target area are largely at subsistence level, characterized by low yields, high dependence on manual labour, negligible adoption of productive technologies and unsustainable soil management practices. As a result, the majority of households are food insecure and resort to harvesting forest products and other natural resources in order to survive. To address this basic lack of food, the first priority is to support activities that increase production. Illustrative activities will include:

 Focusing on current food crops (maize, sorghum, cassava and groundnut) since their production can be increased significantly over the first two years without major investments or risks to the farmers or the program.  Training farmers on good agricultural practices, including soil and water conservation techniques, use of improved seed, plant populations and intercropping.  Increasing access to inputs, particularly water-efficient maize varieties, blended fertilisers and agrochemicals with low environmental impact.  Introducing low-cost postharvest systems for household storage such as solar driers and hermetic bags

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Objective 2: To generate household income from agricultural activities The primary reason that people harvest products from the forest is to provide income for food and other essential family needs. Income generation from efficient farming activities has the potential to replace the sale of forest products and is an essential objective for the program. Surpluses of food crops resulting from Objective 1 can contribute immediately to this since maize and other staples can be grown profitably in the area under rain-fed conditions, and are in strong demand on local markets (table 9). Other crops will be planted specifically for local markets. Bamboo and fast-growing tree crops can produce high returns (table 9) and have the advantage of directly replacing forest harvesting. Precision planting on small plots of high value vegetables such as okra, beans, kale and tomato can also be introduced. Specific activities will include:

 Conducting small-scale commercial trials with bamboo and other fast-growing trees.  Training women and youth groups on intensive production of fresh vegetables for income generation and family nutrition.  Facilitating new market systems for surpluses of food crops and cash crops.  Introducing on-farm storage and preservation systems to extend marketing periods.  Demonstrating cost-effective, small-scale technologies such as grain shellers and chaff cutters to increase productivity, improve quality and raise gross margins.

Table 9: Gross Margin Potential of Key Crops Gross Revenue Total Variable Cost Gross Margin 1 Commercial Bamboo 6,000 3,505 2,495 2 Maize 4,500 2,556 1,944 3 Cassava 4,800 3,196 1,604 4 Sorghum 3,240 1,708 1,532 5 Groundnuts 2,160 1,390 770 6 Indigenous Chicken 1,300 619 681 Source: Farm Africa/ AWF Survey and Estimation, 2014

Objective 3: To build the technical and organizational capacity of farming communities, with a focus on women and youth. Households in the program area have received little or no technical assistance to develop new systems for production, aggregation and marketing of agricultural produce that are essential for sustainable food security and income generation. This objective will address the urgent need for technical improvement through participatory training; farmer group training for aggregating crops into marketable quantities; reducing the costs of inputs and farm equipment rental; and creating linkages to other value chain partners. Specific activities will include:

 Farmer group formation and strengthening  Training on group dynamics, governance, farming as a business  Gender mainstreaming and economic empowerment (adding value, vegetable planting, table banking, etc)  Introducing systems for collective storage, processing and marketing.

Objective 4: To improve access to finance Over the long-term, household income stability and conservation of natural resources in the target area depends on commercialization of small-scale farmers, using sustainable farming systems that are productive and competitive. This will require finance and credit, at affordable rates, to support year-round farming activities. This was confirmed by more than 50 percent of farmers interviewed in the Farm Africa survey in 2014, who quoted (in various ways) the lack of access to financial services as a major constraint to improving livelihoods from farming. Specific activities will include:  Supporting groups to establish village based savings and loan schemes

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

 Training women on table banking approaches.  Introducing farmers to microfinance institutions, where appropriate and available.  Strengthening farmer capacity in record-keeping and crop and business planning. Implementation approach

The objectives, target crops and activities summarized above are selected based on household and market demand, and the need to minimize risk and new investment by resource-poor, rural families. The objectives can be achieved through a combined approach of the following:

 Mobilizing communities and facilitating the establishment of organized farmer groups and community based organizations (CBOs).  Provision of technical assistance and training to farmer groups in cooperation with local government extension services. Given the limited government capacity, the project team will also identify outstanding and motivated group members who will be trained to become village-based extension providers. Building permanent village- based capacity will ensure sustainability post-project.  Adoption of a market facilitation approach that brings together farmers, input suppliers and buyers on a regular basis to create sustainable commercial relationships.  Gender mainstreaming to include of women and young people as drivers of change.  Creating micro business at village level to support new farming systems with low-cost business services – cultivating, spraying, harvesting, pruning, grading, storing, transporting and marketing. Other Potential Interventions

The agricultural interventions and approach described above are based on priority conclusions and recommendations from the Farm Africa 2014 study. However, a number of higher value interventions provide opportunities for progressive farmers and could be integrated into the project over time. These include:

 Investing in livestock, particularly goats and chickens  Semi intensive rearing of dairy cows  Planting trees for timber and fruit

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

ANNEX 1: REFERENCES 1. Yutaka, Y., Ngugi, G. & Asebe, E., 2011: Africa Trade Policy Notes: Enhancing the Recent Growth of Cross Border Trade between South Sudan and Uganda. Note # 21, pp. 1-10

2. Ngigi, M., 2008. Assessing the Structure, Conduct and Performance of Commodity Market in South Sudan; Linkages Food Security. Research Work by Margaret Ngigi. pp. 1- 46

3. Ouna, G., 2012. Commercialization of Cassava in South and Sudan; Challenges and Opportunities. Research Work Done on behalf of Farm Africa. pp. 1-9

4. Brown, M. & Sidahamed, A., 2009. Expanding Agriculture and Food Security Activities in South Sudan: Assessment Report for USAID/ Sudan Economic Growth Team. MSI. DFD-1-00-05-00251-00, Task Order # 2 USAID/ Sudan Support Project.

5. Ouna, G., 2012. AGRA/ African Enterprise Challenge Fund South Sudan Window Report. SME Market Research and Agribusiness Mentoring by Farm Africa for AGRA. pp. 1-27

6. Government of South Sudan (GoSS) Ministry of Finance and Economic Planning, 2011. South Sudan Development Plan 2011-2013. Pp 1-411

7. Grossmann, F et al., 2009. Surveys of Wildlife, Vegetation, Human Activity and Land Use in the Imatong Forest Massif, Eastern Equatoria, South Sudan. Wildlife Conservation Society, Ministry of Forestry & Agriculture, Ministry of Wildlife Conservation & Tourism. Technical Report # 3. pp. 7-95

8. Miller, C., 2008. South Sudan Agricultural Market Investment: Innovative Use of a PPP to Build Institutional Capacity Rapidly. FAO Learning Programme- Capacity Building Programme on Policies and Strategies for Agricultural & Rural Development. EASYPol- Online Resource Material for Policy Making. Module 150, pp. 1-6

9. Pheneas, N. et al., 2007. South Sudan Equatorial Region Cassava Baseline Survey Technical Report. International Institute for Tropical Agriculture (IITA), GoSS and CRS

10. The World Bank Report/ International Bank for Reconstruction, 2011. Doing Business in Juba. Comparing Business Regulation in Juba and other Economies.

11. Understanding Land Investment Deals in Africa 2011: South Sudan Country Report. The Oakland Institute. pp. 1-44

12. AWF Project Proposal Document, 2013. Improving the Integrated Watershed Management of the Imatong Mountains

13. South Sudan, an Infrastructure Action Plan, 2011. Development of Agriculture in South Sudan. Current Status of Agriculture, Fisheries and Forestry.

14. FAO and WFP Report for South Sudan, 2013: Crop and Food Security Assessment Mission Report for South Sudan

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

ANNEX 2: KEY INFORMANTS 1. Joram Mwesigye, Deputy Country Representative, Food Security and Emergency Response Coordinator, CARITAS Switzerland, South Sudan Office, Katire Road, Torit, EES, South Sudan, [email protected], +211955489480

2. Stephen Doctor Matatia, Director General for External Trade, Ministry of Trade Industry and Investment, [email protected], +211956448238

3. Mr. Timothy Thwol Onak, Director General Forestry RSS/MAFTARFCRD, yatto90yahoo.com, +211977506647, +211912726685

4. Anna Felix Bango, Director General Animal production and Range Management, Email: [email protected], +211956432957

5. SNV-Juba; Contact Andrew Emilio Advisor, Agriculture Sector, +211927467910, Email: [email protected]

6. Meeting Under-Secretary Ministry of Agriculture and Forest Resources, Mr. Jabina.

7. Under-Secretary for Animal Production and Veterinary Services in Juba Dr. Makuei Malwal

8. Director General Livestock Investment & Marketing, Mr. Noel Lomuda

9. Planning Officer, Animal production and Veterinary Services Department Miss Taban Neimat

10. Mr. Ware Aaron Lomude, Century Seeds Limited, Yei, Western Equatorial State, South Sudan, +2110477100344

11. Mr. Ambrose Lomin Pitia, Lojurya Agro-Farming and Trading Company Limited, +211913465500, Juba, South Sudan

12. Mr. Morris Juma, Agrolife Limited, P .O. Box 586, Juba, +2119955149578, South Sudan

13. Mr. James Nyikole, MD, South Farmers Company Limited, +211955314900, Juba.

14. Dr. Quinto Asaye, Director Veterinary Services, Eastern Equatoria State South Sudan, +211922005477, South Sudan

15. Dr. James Gelasio, Veterinary Officer, EES, +211095604930, Torit, EES, South Sudan

16. Mr. Kogo Manase, Area Manager, EES, Catholic Relief Services, +211955003828

17. Mr. Obale Awelo, Director Agriculture EES, Email: [email protected]

18. Anthony Sanya, Agricultural Officer, SNV, EES, +211955731145, [email protected]

19. Charles Laku, Project Manager African Wildlife Foundation, EES, +211955489551, Email: [email protected]

20. Mr. Opiyo, Research Assistant Tegemeo Institute, +254713575070, Nairobi, Kenya

21. Brian McBrearity, Enterprise Director African Wildlife Foundation, Tel: +254729472495, Nairobi, Kenya. 28

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

ANNEX 3: DISAGGREGATED SUMMARY OF SURVEY DATA Distribution of Respondents by Location Location Male Female Overall Imilai Boma 24 19 43 Isuak 4 0 4 Cecere 1 7 8 Katire Central 16 13 29 Lohui 15 6 21 Hiniso 9 12 21 Lafi 6 8 14 Ngeria 6 8 14 Total 81 73 154 Source: AWF/ Farm Africa Survey 2014

Disaggregation of Respondents by Gender Location N Male (%) Female (%) Imilai Boma 43 56 44 Isuak 4 100 0 Cecere 8 13 88 Katire Central 29 55 45 Lohui 21 71 29 Hiniso 21 43 57 Lafi 14 43 57 Ngeria 14 43 57 Total 154 53 47 Source: AWF/ Farm Africa Survey 2014

Distribution of Respondents by Age-Group

Source: AWF/ Farm Africa Survey 2014

In the majority of locations, household farm size is less than 0.5Ha. 52 percent of the respondents reported that their farm size were less than 0.5Ha. Only 3.2 percent had farms sizes greater than 5Ha most, mostly in the Katire central location.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

What are the farm sizes (%) by location? Location < 0.5Ha Btn 0.5-1Ha Btn 1 - 5Ha >5 Ha Imilai Boma 30.2 30.2 37.2 2.3 Isuak 25.0 75.0 0.0 0.0 Cecere 100.0 0.0 0.0 0.0 Katire 31.0 41.4 17.2 10.3 Central Lohui 95.2 0.0 4.8 0.0 Hiniso 42.9 52.4 0.0 4.8 Lafi 42.9 35.7 21.4 0.0 Ngeria 100.0 0.0 0.0 0.0 Total 51.9 28.6 16.2 3.2 Source: AWF/ Farm Africa Survey 2014

What kinds of crops are grown within the location (%)? Crop Imilai Isuak Cecere Katire Lohui Hiniso Lafi Ngeria Total Central Maize 95.3 100.0 100.0 93.1 95.2 76.2 28.6 78.6 85.1 Beans 41.9 75.0 37.5 48.3 4.8 28.6 14.3 14.3 31.8 Sorghum 74.4 100.0 100.0 65.5 71.4 95.2 85.7 92.9 79.9 Groundnuts 62.8 100.0 - 31.0 23.8 52.4 35.7 57.1 44.8 Sesame 32.6 75.0 62.5 41.4 14.3 33.3 21.4 21.4 32.5 Banana - - 12.5 6.9 9.5 - - - 3.2 Cassava 37.2 25.0 87.5 65.5 85.7 14.3 57.1 64.3 52.6 Cow Peas - 25.0 - 3.4 - 4.8 - - 1.9 Green dodo ------7.1 - 0.6 Okra - 25.0 - - - 9.5 7.1 - 2.6 Sweet 4.7 50.0 12.5 13.8 19.0 4.8 7.1 - 9.7 potatoes Tomato - - - - 4.8 - - - 0.6 Vegetables ------7.1 7.1 1.3 Sukuma wiki - - - - 4.8 - - - 0.6 Wheat - - - 3.4 - - - - 0.6 Yams - - 12.5 - - - - - 0.6 Onion - - - 3.4 - - - - 0.6 Pumpkin - - - - - 4.8 - - 0.6 Source: AWF/ Farm Africa Survey 2014

What is the mean crop income by location (SSP)? Location Maize Beans Sorghum Ground Sesame Other Overall nuts Crops Imilai Boma 32 26 21 27 35 17 201 Isuak 95 150 211 60 - - 353 Cecere 24 1 29 - 6 5 72 Katire Central 199 251 43 34 118 77 668 Lohui 838 190 426 60 98 373 1,922 Hiniso 60 0 58 14 2 - 141 Lafi 90 2 153 91 59 271 511 Ngeria 16 - 28 - 18 - 42 Total 182 85 103 34 53 95 561 Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

When does planting season begin? Location Feb Mar April May June Jul Aug Oct Imilai Boma - 7.1 90.5 - 2.4 - - - Isuak - - 75.0 25.0 - - - - Cecere - - 100.0 - - - - - Katire - - 86.2 10.3 - - 3.4 - Central Lohui - - 81.0 14.3 4.8 - - - Hiniso - - 100.0 - - - - - Lafi 7.7 - 46.2 15.4 - 15.4 15.4 - Ngeria - - 92.9 - - - - 7.1 Total 0.7 2.0 86.2 5.9 1.3 1.3 2.0 0.7 Source: AWF/ Farm Africa Survey 2014

When do you harvest crops? Location Jan Feb Jul Aug Sept Oct Nov Dec Imilai Boma - - - 97.6 2.4 - - - Isuak - - 25.0 50.0 25.0 - - - Cecere - - - 100.0 - - - - Katire 3.4 - - 93.1 3.4 - - - Central Lohui 9.5 - - 28.6 9.5 47.6 4.8 - Hiniso - - 4.8 95.2 - - - - Lafi 7.7 15.4 7.7 46.2 15.4 - - 7.7 Ngeria 7.1 - - 92.9 - - - - Total 3.3 1.3 2.0 80.9 4.6 6.6 0.7 0.7

What are the mains sources of agricultural inputs (seeds)?

Source: AWF/ Farm Africa Survey 2014

Where do you sell your crops? Location Brokers Local market Local retailer Imilai Boma - 63.9 36.1 Isuak - 100.0 - Cecere - 100.0 - Katire Central 4.2 91.7 4.2 Lohui - 95.2 4.8 Hiniso - 94.7 5.3

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Lafi - 100.0 - Ngeria - 100.0 - Total 0.7 87.5 11.8

Which are the main markets for your crop produce?

Source: AWF/ Farm Africa Survey 2014

What is the mode of payment in this market? Cash on delivery Credit Total Broker 0.7 - 0.7 Local market 86.6 1.3 87.9 Local retailer 10.1 1.3 11.4 Total 97.3 2.7 100.0 Percentages and totals are based on responses. Source: AWF/ Farm Africa Survey 2014

Type of livestock kept in the farm Location Goat Cattle Sheep Poultry Imilai Boma 37.7 - 1.4 60.9 Isuak 33.3 - - 66.7 Cecere 11.1 - - 88.9 Katire Central 15.6 6.3 3.1 75.0 Lohui 12.5 8.3 - 79.2 Hiniso 26.9 11.5 11.5 50.0 Lafi 7.7 7.7 7.7 76.9 Ngeria 28.6 7.1 - 64.3 Total 25.4 4.7 3.1 66.8

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Mean number of livestock kept per household

Source: AWF/ Farm Africa Survey 2014

Land Preparation and Inputs Challenges Lack of quality Lack of Unpredictable Location Lack of Credit planting materials financial services weather Imilai Boma 33.9 19.7 22.8 23.6 Isuak 28.6 28.6 21.4 21.4 Cecere 25.0 25.0 25.0 25.0 Katire Central 29.8 28.7 12.8 28.7 Lohui 27.3 27.3 18.2 27.3 Hiniso 25.0 25.0 25.0 25.0 Lafi 31.3 27.1 14.6 27.1 Ngeria 29.8 29.8 23.4 17.0 Overall 29.4 25.4 20.1 25.0 Source: AWF/ Farm Africa Survey 2014

Crop Management Challenges Lack of Lack of Lack of finance Location Pests Wildlife Diseases Theft technical finance for to facilitate CM knowhow irrigation Imilai Boma 24.4 18.2 24.4 2.8 15.9 9.7 4.5 Isuak 21.1 15.8 21.1 - 21.1 21.1 - Cecere 22.2 2.8 16.7 - 16.7 22.2 19.4 Katire 20.7 20.7 17.1 0.7 20.0 20.0 0.7 Central Lohui 22.1 17.9 16.8 1.1 20.0 20.0 2.1 Hiniso 20.4 19.4 20.4 6.8 19.4 11.7 1.9 Lafi 21.0 21.0 11.3 11.3 21.0 12.9 1.6 Ngeria 24.6 7.0 22.8 7.0 24.6 12.3 1.8 Overall 22.2 17.3 19.5 3.6 19.2 15.0 3.2 Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Post Harvest Management Challenges Location Lack of Lack of Poor Difficulty Lack of Lack of Lack of proper/ information prices accessing market financial technical adequate on value due to markets for services to support storage addition market produce facilitate facilities glut payments Imilai 18.1 11.5 18.5 13.7 18.5 9.7 10.1 Boma Isuak 12.0 16.0 12.0 16.0 12.0 16.0 16.0 Cecere 18.6 - 14.0 14.0 18.6 16.3 18.6 Katire 15.8 11.5 13.7 15.8 13.1 14.8 15.3 Central Lohui 18.3 6.7 11.5 20.2 8.7 15.4 19.2 Hiniso 15.4 13.2 15.4 14.7 14.7 11.8 14.7 Lafi 19.0 4.8 15.9 22.2 6.3 17.5 14.3 Ngeria 29.8 6.4 12.8 27.7 12.8 - 10.6 Overall 17.8 9.9 15.1 16.7 14.0 12.4 14.1 Source: AWF/ Farm Africa Survey 2014

Livestock Management Challenges Lack of Lack of credit to Lack of access to Vet and Location enough purchase breeding Diseases Theft animal health services and pasture stock products Imilai Boma 34.1 65.9 92.7 - 53.7 Isuak - 75.0 100.0 50.0 100.0 Cecere - 100.0 100.0 62.5 87.5 Katire Central - 46.2 96.2 3.8 73.1 Lohui - 35.0 100.0 5.0 35.0 Hiniso - 100.0 82.4 52.9 52.9 Lafi - 9.1 100.0 9.1 9.1 Ngeria - 84.6 100.0 - 84.6 Overall 10.0 61.4 95.0 13.6 57.1 Source: AWF/ Farm Africa Survey 2014

Livestock sale outlets Aggregate with other Sell in local Sell to Location farmers and sell Sell at farmgate market by self traders/brokers jointly Imilai Boma 40.5 - 59.5 - Isuak 14.3 14.3 42.9 28.6 Cecere - - 100.0 - Katire 3.3 6.7 80.0 10.0 Central Lohui - - 95.0 5.0 Hiniso - 17.4 65.2 17.4 Lafi 7.7 - 84.6 7.7 Ngeria - - 100.0 - Source: AWF/ Farm Africa Survey 2014

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Livestock sale outlets

Source: AWF/ Farm Africa Survey 2014

Average number of Livestock Sold Location Goat Cattle Sheep Chicken Imilai Boma 11 2 9 Isuak 2 7 Cecere 3 4 Katire Central 2 6 Lohui 10 1 6 Hiniso 7 5 Lafi 1 1 35 Ngeria 4 1 3 Total 8 1 2 9 Source: AWF/ Farm Africa Survey 2014

Income from sale of Livestock (SSP) Location Goat Cattle Sheep Chicken Imilai Boma 2,621 30 368 Isuak 550 143 Cecere 750 123 Katire Central 213 281 Lohui 1,000 1,000 176 Hiniso 1,538 132 Lafi 100 90 1,159 Ngeria 325 1,000 110 Total 1,868 1,000 60 328

There are no households keeping dairy animals among the households interviewed. Only 3.4 percent of the households sampled had received any form of extension service /advice.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Quantity of Forestry Products Used by the Households per month* Location Timber Nuts HoneyCharcoal Bamboo Game Imilai Boma 6 22 4 114 35 1 Isuak 3 2 2 117 18 Cecere 2 15 1 192 34 Katire Central 15 17 15 260 330 3 Lohui 1,564 222 Hiniso 3 1 133 64 4 Lafi 15 14 1,050 172 Ngeria 2 369 68 Total 6 16 6 384 116 3 Source: AWF/ Farm Africa Survey 2014

*Note: Timber is represented in physical quantities, nuts are in kg, honey in liters, charcoal in kg, bamboo in physical quantities, game in physical quantities

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

ANNEX 5: CROP BUDGETS 1. IDEAL GROSS MARGIN CALCULATION FOR MAIZE Description Amount 1 Output of Maize in Kg per acre under optimal condition 1,800 kg 2 Total Revenue (SSP/ Acre) 4,500 ssp Cost of Production Cost in SSP 4 Land Clearing and Ploughing 390 5 Seed Purchase (10 kg/ acre) 90 6 D.A.P 18:46:0 Fertilizer Purchase (100 kg) 328 7 CAN 27% N Fertilizer Purchase (50 kg) 123 8 1 Planting and 2 Weeding Operations 225 9 Harvesting (Family labour) 150 10 Storage (Hermetic Bags) Cost 450 11 Transport (40 bags X 90kg) Cost to Torit Market 500 Total Variable Cost 2,556 Cost per kg 1.42 Gross Margin Per Acre 1,944 Source: Farm Africa/ AWF Survey and Estimations, 2014 o Maize output under optimal condition is usually estimated at 3,600 kg/ acre. Given the challenges facing smallholder maize production in South Sudan, we have projected total production per acre at 1,800 kg (50% of the optimal production level). On average, maize sells for 2.5 ssp per kg in Torit. o Given the fact that the roads are in bad shape in the Imatong Mountain Watershade area, one would require to hire a vehicle to transport grains to Torit 56 km away. The time taken to travel from Imatong to Torit is approximate 3 hours. Transport cost is estimated at 800 ssp. Assumption: Pre-planting fertilizer application rate is 100kg DAP (18:46:0) per acre, Top dressing fertilizer application rate is 50kg CAN 27%N per acre. Agro-pesticides have not been costed.

2. IDEAL GROSS MARGIN FOR SORGHUM Description Amount 1 Output of Sorghum in Kg per acre under optimal condition 1,080 kg 2 Total Revenue (SSP/ Acre) 3,240 ssp Cost of Production Cost in SSP 4 Land Clearing and Ploughing 390 5 Seed Purchase (3 kg/ acre) 20 6 D.A.P 18:46:0 Fertilizer Purchase (50 kg) 164 7 CAN 27% N Fertilizer Purchase (50 kg) 123 8 1 Planting and 2 Weeding Operations 225 9 Harvesting (Family labour) 150 10 Storage (Hermetic Bags) Cost 136 11 Transport ( 12 bags X 90kg) Cost to Torit Market 500 Total Variable Cost 1,708 Cost per kg 1.581 Gross Margin 1,532 Source: Farm Africa/ AWF Survey and Estimations, 2014 o With use inputs (high quality seeds and fertilizers) the total output of sorghum from 1 acre of land is estimated at 1,080 kg (12 x 90 kg bags). The average price of sorghum is 3 ssp meaning that smallholder farmers in EES can make over 3,000 ssp in total revenue from sell of sorghum. Assumption: Pre-planting fertilizer used 50kg DAP 18:46:0 and 50 kg CAN 27%N. Agro-pesticides have not been costed.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

3. IDEAL GROSS MARGIN FOR CASSAVA Description Amount 1 Output of dry cassava in Kg per acre under optimal condition 3,200 kg 2 Total Revenue (SSP/ Acre) 4,800 ssp Cost of Production Cost of Production in SSP 4 Land Clearing and Ploughing 390 5 Seed Purchase own seeds 6 D.A.P 18:46:0 Fertilizer Purchase ( 100 kg) 328 7 CAN 27% N Fertilizer Purchase (50 kg) 123 8 1 Planting and 2 Weeding Operations 225 9 Harvesting (Family labour) 150 11 Storage (Hermetic Bags) Cost 980 12 Transport (89 bags X 90kg) Cost to Torit Market 1,000 Total Variable Cost 3,196 Cost per kg 0.999 Gross Margin 1,604 Source: Farm Africa/ AWF Survey and Estimations, 2014 o 1 kg of dry cassava sells for 1.5 ssp. Given the production challenges including lack of high quality planting materials, we have projected total production of 3,200 kg of cassava per acre. Under optimal conditions, cassava yield average 9,600 kg/ acre. Agro-pesticides have not been costed.

4. IDEAL GROSS MARGIN FOR GROUNDNUTS Description Amount 1 Output of Groundnuts in Kg per acre under optimal condition 360 kg 2 Total Revenue (SSP/ Acre) 2,160 ssp Cost of Production Cost in SSP 4 Land Clearing and Ploughing 390 5 Seed Purchase own seeds 6 D.A.P 18:46:0 Fertilizer Purchase (80 kg/ acre) 257 7 CAN 27% N Fertilizer Purchase (50 kg) 123 8 1 Planting and 2 Weeding Operations 225 9 Harvesting (Family labour) 150 10 Storage (Hermetic Bags) Cost 45 11 Transport (4 bags X 90 kg) Cost to Torit Market 200 Total Variable Cost 1,390 Cost per kg 3.86 Gross Margin 770 Source: Farm Africa/ AWF Survey and Estimation, 2014 o We assume the farmer is using own seeds. We also assume the farmer is using 80kg of DAP 18:46:0 as pre-planting fertilizer. There s one planting and 2 weeding operations. The farmer makes use of hermetic storage bags.

5. IDEAL GROSS MARGIN FOR BAMBOO Description Amount (units) 1 Output of Bamboo per acre under optimal condition 400 poles 2 Total Revenue @15 ssp/ pole 6,000 ssp Cost of Production 4 Land Preparation 390 4 Seedlings 1,350 3 Nursery Management 75 5 Planting (family labour) 150 6 Weeding, De-suckering, Pruning 150 8 Harvesting (after 2-3 years) 390 12 Transport cost to Torit Market 1,000 Total Variable Cost 3,505 Cost per pole 8.76 Gross Margin 2,495 Source: Farm Africa/ AWF Survey and Estimations, 2014 38

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

o The above figures are based on survey results and estimations. The cost of seedling is a onetime cost and is estimated to at 1,350 ssp. Bamboo harvesting takes place after 2-3 years. The assumption is that a bamboo culm of 2 years is ready for harvesting. Bamboo grows faster than other woody plants. The assumption is thus a bamboo culm of 2 years is ready for harvesting. The mean rate of harvesting is estimated at 11 culms per clump per year. For a farm with 400 clumps, the expected harvest per year is therefore 4,400 culms per annum.

6. IDEAL GROSS MARGIN FOR INDIGENOUS CHICKEN UNDER SEMI-INTENSIVE SYSTEM FOR 7 MONTHS (20 BIRDS) Description Amount 1 Gross Revenue for 20 birds Per Bird @65/ bird 1,300 ssp Cost of Production 4 Supplementary Feed Costs for 7 months 265 5 Veterinary Drugs (vaccines) 54 6 Labour (family labour) 0 7 Purchase 20 Chicks @15 300 8 Transport to Market (sold in local market) 0 9 Housing cost (use of local materials) 0 Total Variable Cost 619 Cost per bird 30.95 Gross Margin 681 Source: Farm Africa/ AWF Survey and Estimation, 2014 o The selling price of one bird is 65 ssp. Estimation of supplementary feed for 20 birds is estimated to cost 265 ssp. Family labour on indigenous chicken is not costed because it is assumed that the input into chicken production in terms of labour is minimal. Housing construction is also not costed because materials for construction are readily available locally. We also assume that the farmer purchase chicks at 15 ssp and they all grow to maturity.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

ANNEX 6: QUESTIONNAIRES

CROP, LIVESTOCK, FORESTRY SURVEY TOOLS SECTION A Name of Location Date of Interview SECTION B Name of farmer Gender Male ( ) Female ( ) Age ( ) 18-35 years ( ) 36-45 years ( ) 46-60 years ( ) Over 60 years SECTION C

What is the ownership arrangement of the land ( ) Self-owned on which you farm? ( ) Borrowed ( ) leased ( ) Others (Specify)…………………………………

What is the size of your farm? ( ) less than 0.5 ha ( ) 0.5ha -1ha ( ) between 1.0 ha to 5 ha ( ) More than 5 ha

What kind of crop do you grow? ( ) Maize ( ) Beans ( ) Sorghum ( ) Groundnuts ( ) Sesame ( ) Others (Specify)…………………………………

When does the planting season begin?

When do you harvest your crop?

What is your current income from sell of your crops? Monthly (Kg) Annually Average price How much of each crop do you sell per month/ (Kg) (SSP) annually? Maize Beans Sorghum Groundnuts Sesame Others

What are your other sources of HH income?

Input Source Cost per What are the main inputs that you use in your season farm? Seeds Fertilizer Pesticides 40

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Others

Buyers % Sold to Price/Kg Payment Where have you been selling your crops and/ each mode or livestock? Mode of payment Local retailers ( ) Cash on delivery Local market ( ) Delivered and paid within 1 week Brokers ( ) Delivered and paid within 2 weeks Wholesalers ( ) Payment vary with buyer

What type of livestock do you keep in your ( ) Goats farm? ( ) Cattle ( ) Sheep ( ) Indigenous Chicken

What is your flock size? Goat Cattle Sheep I. Poultry

Do you give your livestock any form of ( ) Yes supplementation/ or treatment when sick? ( ) No

If yes, please explain source the products?

What challenges do you encounter in crop Land Preparation and Inputs production/ livestock production? ( ) Lack of quality seeds/ planting materials/ feeds ( ) Lack of financing services to facilitate farming ( ) Unpredictable weather pattern/ drought ( ) Lack of credit to acquire farm inputs ( ) Others (Specify)……………………………………………….

Crop Management

( ) Destruction by crop pests ( ) Destruction by wildlife ( ) Crop diseases ( ) Theft ( ) Lack of technical knowhow ( ) Lack of finance to facilitate crop management ( ) Lack of finance to facilitate irrigation ( ) Others (Specify)…………………………………………….

Crop Post Harvest Management/ livestock marketing

( ) Lack of proper/ adequate storage facilities ( ) Lack of information on value addition ( ) Poor prices due to market glut ( ) Difficulty accessing markets ( ) Lack of market for produce ( ) Lack of financial system to facilitate payment ( ) Lack of technical support in postharvest management ( ) Others (Specify)……………………………………………….

Livestock Management

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

( ) Lack of enough pasture ( ) Lack of credit to purchase good breeding stocks ( ) Livestock diseases ( ) Livestock rustling ( ) Lack of access to livestock health products

How do you usually sale your produce after ( ) Aggregate with other farmers and sell jointly harvesting/ or livestock when they reach ( ) sell at the farm gate marketable weight? ( ) Sell in the local market by myself ( ) Sell to traders/ brokers

How many livestock do you sell in year? Goat………..……..Price……………… Cattle……………..Price……………... Sheep…….. ……..Price……………… Chicken…..………Price……………..

Do you rear dairy cattle and/ or Dairy goats? If yes, what breed? Where do you sell your milk?

Any other organizations supporting the ( ) NGOs marketing of your produce? ( ) Government of South Sudan ( ) Private firms ( ) Non

What type of training have you received from Please explain your answer? the government extension officers?

What kind and quantity of products do you get ( ) Timber from the forest in a month? ( ) Nuts ( ) Honey ( ) Charcoal ( ) Bamboo ( ) Gum Arabic ( ) Game

Where do you sale the forestry products? Please explain your answer?

TRADER/BROKER SURVEY TOOL SECTION A Nam of Trader/ Broker Contact Address and Location Tel: SECTION B

What kind of product do you deal in? ( ) Maize ( ) Beans ( ) Sorghum ( ) Groundnut ( ) Sesame ( ) Goats ( ) Cattle ( ) Sheep ( ) Honey ( ) Bamboo ( ) Charcoal 42

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

( ) Rattan ( ) Resin ( ) Timber ( ) Gum Arabic ( ) Poultry ( ) Others (Specify)…………………………...

Where do you buy your products? ( ) Directly from farmers ( ) From brokers/ middlemen ( ) Transporters ( ) Farmers Cooperatives ( ) Local market ( ) Others (Specify)…………………………...

What quantities do you in a month?

How do you buy your produce? ( ) Cash ( ) Credit 1 week ( ) Credit 1-2 weeks ( ) Credit more than 2 weeks ( ) Others (Specify)…………………………...

Where do you sell the product? ( ) Torit ( ) Ikotos ( ) Budi ( ) Kapoeta ( ) Magwi ( ) Lafon ( ) Juba ( ) Others (Specify)…………………………...

To whom do you sell your products to? ( ) Processors ( ) Resellers ( ) Others (Specify)…………………………...

Do you do anything to the product once you ( ) Yes buy? ( ) No

If yes; what do you do? ( ) Process it ( ) Repackage ( ) Others (Specify)…………………………...

What are your main challenges in buying this ( ) Production varies (affected by weather) produce? ( ) Farmers are not reliable ( ) Poor quality produce ( ) Unreliable market ( ) Transport challenges ( ) After harvest wastage (storage) ( ) Lack of credit ( ) Weak payment system ( ) Lack of insurance against loss ( ) Others (Specify)………………………………

Do you offer any services to the people you ( ) Yes

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014 buy from? ( ) No

If yes; what services do you offer Explain……………………………………………………..

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

ANNEX 7: LITERATURE REVIEW 1. Introductory Remarks South Sudan

Agricultural development remains the mainstay for economic development in South Sudan capable of reducing poverty and improving food security situation in the country. Nearly percent of the population in South Sudan depends on agriculture, livestock or forestry for their livelihood, yet the sub-sectors provides less than 30 percent of the Gross Domestic Products. Incidence of poverty in rural area doubles that of the urban areas while large tracks of fertile land remain un-ploughed. A significant proportion of South Sudanese, as high as 33 percent, in lean season depends on food aid (FAO and WFP Reports, 2010). Currently South Sudan relies to a great extent on food imports from Uganda, Kenya a well as northern Sudan. Yet, the country has a rich arable land as well as forest resources. The forests have diverse tree species that include indigenous Acacia, Mahogany and Teak which constitute major sources of timber, Gum Arabic, charcoal and firewood. The mandate of South Sudan’s Ministry of Agriculture and Forestry is to Transform agriculture from traditional subsistence farming to achieve food security through scientific, market oriented, competitive and profitable agriculture without compromising the sustainability of natural resources for future generation.

95% of agricultural production in South Sudan is rain-fed and weather variability determines crop performance. South Sudan experiences uni-modal and bimodal rainfall regimes; the bimodal areas cover much of the Greater Equatoria (Western, Central and Eastern Equatoria). The result is a range of growing seasons from 280-300 days in the southern part to 130-150 days in the northern parts. Therefore, developing South Sudan Agriculture and livestock potential has been identified in the South Sudan Development Plan (SSDP 2011- 2013) as the most feasible way to enable broad-based economic growth and food security in the short to medium term. But weak regulatory framework and lack of economic infrastructure impedes development and diversification of agricultural production and productivity in South Sudan (The Oak Institute Report, 2011). Lack of access to finance by the smallholder farmers and the small scale players in the SME-Agricultural enterprises stagnate entrepreneurial growth in the new republic. Progress towards economic development has been very uneven and the country underperforms in many agricultural producing areas.

The recent civil war in the country has damaged infrastructure in major towns including transport and communication systems crucial for agricultural development. The legal system is still underdeveloped and this depresses foreign investment in key sectors such as agriculture, commerce and industry. The importation of agricultural commodities, especially from Uganda, through the porous and unmanned borders points is also depressing the development of the agricultural sector in the country. According to a report by The Oak Institute (2011), 50 percent of the population in South Sudan lives below poverty line. The same report states that land ownership in this country is held under customary land tenure system.

Although land is abundantly available in South Sudan, many difficulties are experienced in acquiring ownership rights, both by the citizen and foreigners. The land Act 2009 and Investment Promotion Act 2009 make clear provisions to enable investors acquire land while the local communities owning the land remain protected. Yet land ownership is still shrouded in mystery and political interference, with politics taking precedence over the law on land issues. According to South Sudan Development Plan (2011-2013), key top priority areas for economic development for the country include Increased Agricultural Production, Increased livestock production, Expanded and Improved Road Transport Infrastructure, and Expanded and Improved Water and Sanitation Infrastructure.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

2. Literature Review on the Business Environment in South Sudan

South Sudan offers limited supply of goods and services meaning that the country offers unexploited opportunities for investors especially in agriculture and agribusiness sub- sectors. The business enabling environment is shrouded with uncertainty as the law governing the business is not clear. This has made most investors to shy away from the country. The private sector is expected to be the leading light that supply the much needed goods and services that are currently lacking in the country. However, infrastructural challenges are immense given the fact that the country has only few roads that are tarmacked. Information about investment and commerce is missing meaning that you will have to physically move from office to office in search of information (World Bank Report/ Doing business in Juba, 2011). The high level and multiplicity of taxes and poor tax administration is also a big problem in the country. This is particularly true in the border towns, and this has made tax administration very challenging as the way they are administered have a dis-incentive effect on business activity (South Sudan Business Registry, 2011).

3. Rural Financing Services

There are only 5 micro-finance institutions operating in South Sudan. They include; BRAC, Finance Sudan, Frontier Microfinance Limited, RUFI and Sudan Micro Finance Institution (SUMI). Limited financing options raise the cost of doing business in the country. And without a public credit registry or private credit bureau in Juba, creditors cannot obtain reliable information on debtors. Again without a collateral registry, entrepreneurs have a hard time using their assets as guarantee for loans. The overall result is a slow business growth in a country that has vast business potential and rich agricultural land (Farm Africa/ AGRA/ AECF Report, 2012, pp. 8).

4. Introduction on Eastern Equatorial State (EES)

According to South Sudan Development Plan (SSDP 2011-2013), only 27 percent of inhabitants of EES have ever attended school and the literacy level stands at 19 percent while access to improved drinking water is estimated to be 63 percent (pp.19). EES is an impoverished region with livelihoods centred around: Pastoralism and subsistence farming, with a small focus on fishing. There are limited opportunities for diverse income generating activities and social and economic infrastructure is extremely underdeveloped with few serviceable roads, healthcare centres and schools. Most people practices nomadic pastoral livelihood system. Availability of food and water is a concern and has an impact on the interaction between various ethnic groups. The region has a long history of conflict and instability, from the civil war, LRA insurgency, and cattle rustlings. With increased security people are returning back home after more than 20 years of conflict, but traditional rights to access natural resources and land are being contested. Returning populations are putting increased pressure on the state’s natural resources and if this goes unmitigated and planned, these resources will not be sustained (AWF, 2013 Report pp.4).

5. Literature Review on Crop Production in Equatoria State

According to IITA Cassava Baseline Report (2013) for Eastern Equatoria State, “the average household size is 7.0, 30 percent of crop production is intercrop and most widely grown crop is cassava (20.8%), ground nut (14.4%), sweet potato (13.8%), sorghum (9.1%), sesame (7.7%), rice (6.2%), finger millet (4.9%), cow peas (2.6%) and bean (1.9%). Farmer ranked cassava (31.6%) as the most important crop followed by sorghum (24%), groundnut (14.2%), maize (9.3%) and bull rush millet (5.8%)”. According to the same report, farm size ranges from below 0.1 hectare to 5 hectares. The five crop intercropped with cassava in 46

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

Eastern Equatoria State (EES) are Maize (40.5%0, Beans (27%), groundnut (18.3%), sorghum (8.4%) and sesame (2.7%). Major constraints to crop productions in EES are attack by pests (29.2%), drought (22.9%) and perennial weeds (14.6%) (pp.4-9). According to Food and Agriculture Organisation (FAO) report, cassava represents an important food safety net throughout the Green Belt areas in three Equatoria States as well as part of Lakes and Western Bahr el Ghazal. Further, USAID (2009) report lists cassava as the most important contributor to household food economy providing at least half of carbohydrate ration in South Sudan (pp. iv).

6. Literature Review Agricultural Markets and Investments in South Sudan

According to FAO’s EASYPol-online resource material for policy making (2008), agriculture accounts for approximately 80 percent of employment in the Republic of South Sudan; and that agricultural input and output product market are still underdeveloped, yet no meaningful investment can be made in scaling up agricultural production without first strengthening the markets and the market systems. “The present systems of fresh supplies to retail market in urban areas still dominated by a lot of imports from Uganda. This state of affair can be reined in on by improving assembly market centres in key agricultural producing areas of the country (pp 1-2)”. The same report states that three types of food market exist, namely;- Rural primary market located in villages and small towns (often held on periodic basis), rural assembly market located in agricultural surplus areas and urban retail market serving consumers in main towns and cities. Additionally, all markets in South Sudan are currently managed by lower tier in the local government systems, the payam (ward), who collect market fee and also provide public health oversight to market operations in addition to issuing licenses to businesses.

An efficient food marketing system is a crucial component in enhancing food security. The functioning of food markets has significant influence on all dimensions of food security, which include food availability, accessibility, and utilization. The causal linkages between marketing and food security are complex. A number of the linkages operate through the influence of the marketing system on production incentives. Production beyond a farm household’s consumption needs is heavily dependent on market access. The extra costs and risks of investing heavily in labor, capital, and productivity-enhancing technologies are justifiable only if output markets are ensured. Hence, one consequence of poor market access is that farm households have little incentives to fully exploit their land and labor potentials and are, therefore, constrained to subsistence farming of a few basic staples. This, in turn, limits a country’s or region’s capacity to ensure that all of its people have sufficient physical and economic access to food (Structure, Conduct and Performance of Commodity Market in South Sudan, pp. 2).

Though prices of agricultural commodities in South Sudan are left to the forces of demand and supply (the country embraces free-market economic system), inefficiencies along key agricultural value chains has continued to negatively impact on the economic development of the country. And insecurity still remains a key factor that impedes economic growth and stabilization. The country is still faced with food insecurity with many of the people subsisting on the periphery of the economy, yet there is the soils especially in the Green Belt Region are very fertile and not being utilized for agricultural production.

The high demand for agricultural commodities in South Sudan together with lack of local production capacity has led to a sharp increase in cross-border trade from Uganda to South Sudan. According to the Ugandan Bureau of Statistics, bilateral exports from Uganda to Sudan have experienced skyrocketing growth since 2005. The leading exports, both formal and informal, from Uganda to South Sudan include food and other consumer non-durables; namely; - maize flour, maize grain, wheat flour, cassava chips, cassava flour, rice and sugar.

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

According to Africa Trade Policy Notes (2011), there are significant gaps in food prices between Juba and Ugandan cities. The price levels of some agricultural products (maize, cassava and beans) both at the retail level as well as wholesale level in Juba as well as three transport hub cities in Uganda—Arua (Northwestern Uganda), Odramachaku (Western Uganda), Mbarara (Western Uganda), and Gulu (Northern Uganda) are significantly different. Maize in Juba is about three times more expensive than in Ugandan cities for both at the retail and wholesale levels, while beans in Juba is about twice more expensive than in Uganda for both levels (pp. 2) The GoSS Ministry of Commerce, Industry and Investment was created in September 2011. The policy statement in the draft 2011 South Sudan Development Plan outlines the government’s vision for the country in the first three years of independence, suggesting that the ministry will be geared towards facilitating the business activities of the private sector. The Ministry is leading the development and implementation of actions to address key constraints to rapid private sector development. A one-stop investment shop is being established, key laws that have already been drafted will be enacted and implementation systems established with time.

7. Literature Review on The Imatong Mountains Region

Looking at the Imatong Mountain region, African Wildlife Foundation (AWF, Improving the Integrated Watershed Management of the Imatong Mountains, 2013) did find out that the landscape is remote and impoverished with primary livelihood centered on livestock rearing and subsistence farming, there are limited opportunities for other income generating activities. Due to the dry climate of the region, the communities have traditionally practiced pastoral-nomadic life style, where 3-4 months in a year they move their livestock in search of water and pasture. The upper watershed of Kinyeti River and the Imatong Mountain has significant opportunities for water and land-use management, improved livelihoods, and conservation interventions. The important ecological goods and services, especially water provisioning, provided by the Imatong Mountains and associated watersheds are crucial to the future sustainable development of the region as well as for conflict mitigation (pp. 3-4).

The AWF (2013) report pinpoints that the Imatong Mountains water tower, and the associated Kinyeti River watershed, comprises a fragile and critical water system with a relatively small discharge during the dry season. The forests of these mountains ensure the continued discharge of these rivers. The watershed stretches 188 kilometers from its headwaters in the Imatong Mountains in the south, to the river’s mouth in the Kud wetlands between Bandingilo National Park and mongalla Game Reserve in the north, covering an area of 3,825km2.

The return of displaced South Sudanese, and increasing public and private sector investment in the region, the abstraction of water from Kinyeti River has increased and the resulting water scarcity has started to spur conflicts among different water users. It is anticipated that with increased impacts of climate change, water scarcity will increase leading to increased human/ human and human/ wildlife conflicts over water.

The Imatong Mountain range is composed of Imatong Central Forest Reserve (ICFR) which covers an area of 123,000 hectares. In terms of livelihood a greater percentage of the inhabitants residing around the Imatong Mountains rely heavily on the forests for shelter, cultivation, fuel, hunting, food, fodder, and medicine and income source through harnessing the forest for timber, firewood, charcoal, honey, bush meat and land for crop production. The South Sudan Forest Act (1989) ban people from accessing the above named products in the reserve, yet forest encroachment is rife and continues unabated. People are prohibited from entering the reserve but nobody is following this law (AWF, 2013).

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

According to Surveys of Wildlife, Vegetation, Human Activity and Land Use in the Imatong Forest Massif Report (2009), the climate around the Imatong is temperate and fairly constant throughout the season with fairly warm day time of up to 35 degrees centigrade to 15 degrees centigrade at night. The Average total rainfall around massif is 2261mm for Gilo and 1494 mm for Katire regions respectively (pp. 22).

7.1 Impact of Agricultural Activities

The AWF (2013) report also states that, during land preparation, fire is commonly used as tool for land clearance, shifting cultivation and harvesting wild honey. The fires are usually unmanaged and are a great threat to forest sustainability. Land cleared by fire is used for agricultural production; however, poor soil and water management quickly lead to reduced water retention in the soil, diminished soil fertility and increased soil erosion. Farmers then move on as they continue to clear more land using fire. The practice of shifting cultivation damages forest cover and severely reduces the integrity of the forest vegetation.

Deforestation, forest degradation, and lack of management of natural resources and land use in and around Imatong forest are thus severely and significantly interfering with hydrological cycle and hence reduction in water availability in streams and rivers. If this state of affair is not checked and reversed in time, then the consequences would be great especially for the communities that regular use the river water for livelihood purposes; this may eventually lead to conflict over water. Further, increased population coupled with an influx of returnees of the Internally Displaced People (IDP) and those from civil war location is increasingly putting the Imatong Forest under great threat and pressure (AWF, 2013 Report).

7.2 Which Ministries currently manage the Imatong Central Forest Reserves (ICFR)?

The Ministries of Agriculture, Forestry, Tourism, Animal Resources, Fisheries, Cooperatives and Rural Development currently manage the ICFR. According to a 2013 report by AWF, these Ministries have only six forest rangers! How can a forest reserve covering 123,000 hectares be protected by only six men? There is a proposal to change the upper parts of the ICRF from forest reserve (with state oversight) to a national park (with national/ federal oversight). This would transfer the management responsibility from state Ministry of Agriculture, Forest, Tourism, Animal Resources, Fisheries, Cooperatives and Rural Development to the Ministry of Interior and Wildlife Conservation (MIWC).

7.3 Summary of Key Issues and Threats to the Imatong Mountains and Kinyeti Watershed:

 Incompatible cultivation methods at high altitude causing deforestation and soil erosion  Unregulated abstraction of river water alters habitats, reduces water delivery to lower lying areas and causes increasing civil conflict  Lack of awareness and information regarding water regulation and natural resource management to policy makers as well as local communities  Inadequate policy and legislation to protect the forests and their watersheds  Inadequate institutional capacity to manage water and watersheds, and control usage  Lack of coordination between ministries, and between national and state governance  Inadequate land use planning, and management and enforcement of natural and water resource use. The area will increasingly feel the effect of climate change; any planning that is done must be done in light to those changes.  (Source: AWF, 2013 Report)

7.4 Key Agricultural Constraints negatively impact smallholder communities in South Sudan

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

 Low/ no use of improved technologies  Lack of inputs including seeds/ planting materials, fertilizers, mineral blocks, tools  Poor infrastructure that hampers access to markets  Low literacy and numeracy rates among the smallholder farmers  Lack of financial services/ Inaccessibility of finance by the smallholder communities  Weak agricultural and livestock research and extension services  Poor quality animals and lack of animal health services  Lack of enough water and pasture for livestock that causes conflicts between communities  Pests and diseases of both crops and livestock  Labour shortage ad lack of irrigation  (USAID, 2009 Report on Expanding Agriculture and Food Security in South Sudan)

Sources:

1. Yutaka, Y., Ngugi, G. & Asebe, E., 2011: Africa Trade Policy Notes: Enhancing the Recent Growth of Cross Border Trade between South Sudan and Uganda. Note # 21, pp. 1-10

2. Ngigi, M., 2008. Assessing the Structure, Conduct and Performance of Commodity Market in South Sudan; Linkages Food Security. Research Work by Margaret Ngigi. pp. 1- 46

3. Ouna, G., 2012. Commercialization of Cassava in South and Sudan; Challenges and Opportunities. Research Work Done on behalf of Farm Africa. pp. 1-9

5. Ouna, G., 2012. AGRA/ African Enterprise Challenge Fund South Sudan Window Report. SME Market Research and Agribusiness Mentoring by Farm Africa for AGRA. pp. 1-27

6. Government of South Sudan (GoSS) Ministry of Finance and Economic Planning, 2011. South Sudan Development Plan 2011-2013. Pp 1-411

9. Pheneas, N. et al., 2007. South Sudan Equatorial Region Cassava Baseline Survey Technical Report. International Institute for Tropical Agriculture (IITA), GoSS and CRS

10. The World Bank Report/ International Bank for Reconstruction, 2011. Doing Business in Juba. Comparing Business Regulation in Juba and other Economies.

11. Understanding Land Investment Deals in Africa 2011: South Sudan Country Report. The Oakland Institute. pp. 1-44 50

Assessment of Agricultural Opportunities in Imatong Mountain Watershed November 2014

12. AWF Project Proposal Document, 2013. Improving the Integrated Watershed Management of the Imatong Mountains

13. South Sudan, an Infrastructure Action Plan, 2011. Development of Agriculture in South Sudan. Current Status of Agriculture, Fisheries and Forestry.

14. FAO and WFP Report for South Sudan, 2013: Crop and Food Security Assessment Mission Report for South Sudan