Course: Msc in Sustainable Agriculture and Food Security (SAFS)

Course: MSc in Sustainable agriculture and Food Security (SAFS)

Thesis title:

Impact of agro dealers networks on small scale farmer’s food security in Mozambique

RESEARCH PROPOSAL FOR MSc DIPLOMA Student ID: 10146474 Student name: Afonso Pedro Chibalo

March, 2014 REVIEW PAPER

Table of Contents Abstract...... 3 1. Introduction...... 4 2. Methodology...... 5 2.1 Methodology...... 5 2.2 Data collection...... 5 3. Mozambique agriculture overview...... 6 3.1 Population growth in Mozambique...... 6 Table 1: population growth in Mozambique...... 6 3.2 Agriculture activities and the country economic growth...... 6 3.3 Contribution to the poverty alleviation...... 7 3.4 Category of farmers...... 7 4 Agriculture and Food and Nutrition security...... 8 4.1 Conditions for agriculture development in Mozambique...... 9 5 Political foundations to turn over the actual situation...... 10 6. Results and discussion...... 12 6.1 Results...... 12 A. The country seed industry is not capable to produce enough seed for the market size comprised 17.5 million smallholders’ farmers...... 12 B. The country agro-inputs market distribution channels is disorganised and town based, and with high price inputs practiced...... 12 C. The smallholders’ farmer faces limited inputs access due week purchase capacity...... 12 6.2.1 Result 1 and discussion1...... 12 Table 2: Seed companies providing certified seed to farmers in Mozambique...... 13 6.2.2 Result 2 and discussion 2...... 14 6.2.3 Result 3 and discussion 3...... 16 7 Conclusion...... 17 8. Bibliography...... 18

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014 REVIEW PAPER

Abstract

Mozambique is basically agricultural economic based, comprising 17.5 million smallholders farmers cultivating 98% of the all arable land, and contribute 24% to the country GDB in 2011. The smallholders are subsistence oriented and face problems all along the agricultural value chain. The country seed industry is with limited capacity to ensure quality seed; thereby farmers’ access improved inputs is limited. The seed distribution channel also faces problems on self organization and under infrastructures.

The country inputs use is less than 10% and food insecurity status is high 34% and malnutrition 44%. The use of grain seed from the local market is high, more than 80% farmers steadily use grain seed, and the situation becomes worse with the effect of the climate change which frequently battles the country, reason why people cyclically fights against food insecure.

In this review paper the situation of the country agriculture is the main issue to be understood as it comprise the majority people. We look at the farmers’ situation in view point of the country policy, farmer’s production orientation and inputs support, as well as the country seed industry overview. With special regards to inputs distribution channels, the review paper pays attention to that.

1. Introduction Mozambique is located in the eastern coast Southern Africa (10° 30'-26°52'S and 40° 50'- 30° - 31' E); it covers 800,000 km2 of land (Calane 1996) and has potential for rapid economic and social growth in rich natural resources including arable land, minerals, gas, hydro energy, tourism and marine life(Reform & Action 2011). With estimated 36 million hectares of arable land of which 10 percent is actually used for crop production, nonetheless, the wide diversity of soil and climatic condition for agricultural practices being suitable, most of the small farmers produce for their subsistence and are strictly dependent on rainfall with no irrigation system(Nino 2007).

Crops productivity is amongst the lowest in the world due to lack on accessing improved seeds and fertilisers. The country’s 23 million people, in which 55% lives below the government-designated poverty line. Agricultural production is key for householder welfare in Mozambique, with incomes accounting for 73% of the rural household in 2002 (Mather 2009), although it is frequently affected by lack or inadequate access to improved inputs, access to improved technologies, and appropriate farming systems (Benson 2012).

The civil war ended, drastically worsened the little economy herded from colonial and make deep the situation of the people living in the rural areas (UNDAF, 2012). In 2011 Mozambique, has achieved an impressive average of 7.2% growth during the last decade, due to the multi-sector interventions including mining companies through high foreign direct investment inflows for extractive industries, together with strong agricultural growth and infrastructure investment will drive growth to 7.5% and 7.9% in 2012 and 2013 (African Economic Outlook, 2012).

This review paper will come up with data to explain the contribution of established and trained agro dealers’ network in the rural communities, shall also deliver some recommendations to improve the actual efforts carried on by Government and partners to turn upside down the situation of low productivity which is affecting food security amongst people. Data of agro inputs distributed through network, and farmers production, will be reported to show the really impact in the rural market of Mozambique.

2. Methodology

2.1 Methodology The research is exploratory because it scope out the magnitude of the country agriculture a theoretical level, by researching secondary data from the report and others data engine to explain the phenomena (Richardson et al. 2007). And it is explanatory because seeks to explain the significance of the data collected and best provide understanding of the situation .

2.2 Data collection The data collection is through reading and finding out information regarding to the country seed industry and distribution channels to farmers. Information about agro dealers’ networks in the rural communities is key important information to interpret and understand the agriculture of the majority smallholders in Mozambique (Quisumbing & Mcclafferty 2002).

3. Mozambique agriculture overview

3.1 Population growth in Mozambique According to S. Index et al. (2012) has reported that the country is 23.5 million people, with growth rate of 2.8%, with the majority living in the rural areas. More than 55% of the country’s people lives below the government-designated poverty line (Reform & Action 2011).

Table 1: population growth in Mozambique Population mn 23.4 HDI 0.322 GDP p.c. $ 942 Pop Growth1 % p.a. 2.8 HDI-rank of 187 184 Gini Index 45.6 Life expectancy years 49 UN Education Index 0.222 Poverty3 % 81.6

Urban population % 38.4 Gender inequality2 0.602 Aid per capita $ 87.9 Sources: The World Bank, World Development Indicators 2011 UNDP, Human Development Report 2011.

With high population growth estimated in 2.8%, approximately 300.000 people entered into the labour market every year (African Economic Outlook 2012). The proportion of the population with access to school hiked from 30.8% in 2003 to 37.3% in 2009.

3.2 Agriculture activities and the country economic growth

Mozambique has immensurable agricultural potential for food production with estimated 36 million hectares of arable land only 10% is presently in productive use. And 97% of land being used by smallholder farmers, and cultivate in average 0.9 to 1.4 hectares each. Agricultural production is Key householder welfare, with incomes accounting for 73% of the rural household in 2002 (Mather 2009), although it is frequently affected by lack or inadequate access to improved inputs, access to improved technologies and appropriate farming system (Benson 2012).

In the country, the use of fertilisers is high in Tete province amongst smallholder producers of tobacco. The situation is defined by MLT (Mozambique leaf tobacco) Company; which ensure trainings and fertilizers for all farmers involved in the tobacco production. And The lower levels of fertilisers use is found in some areas of the central provinces with higher agricultural potential (Mather 2009). The country average input use is calculated approximately 10% (Crisis & Bank 2012), nonetheless the country use level, the agriculture sector is a pillar for the national economy; in 2009 have contributed 24% to the country GDP and employ 90% of the country´s female labour force in 2011 (Anon 2012).

Figure 1.Agriculture sector Growth rate contribution to GDP. Source: INE, CAADP.

3.3 Contribution to the poverty alleviation Government assumed since independence 1975, that agriculture whilst source of population livelihood, employing most active labour mainly woman, estimated in more than 80% people, will continue supporting the sector, as matter of fact Government declared through the constitution of the republic of Mozambique agriculture sector as base of the country development. By then with approximately 23.4 million inhabitants in 2010, the annual growing rate estimated in 2.8 percent, and the majority depending on agriculture activities which is dominated by the family sector smallholders, cultivating in average area of 1.2 ha/family (TIA, 2008).

The smallholders farmers, comprising 17.5 million peasants; they have a strong impact on rural incomes and contributes to poverty reduction by providing about 95% of agricultural GDP. The few commercial farmers supply the remaining 5%. The national tobacco crop is produced on approximately 0.1% of the total arable land of the country and in 2009 contributed 2% of GDP to the Mozambican economy. In 2009, Mozambique Leaf tobacco, supported around 120,000 tobacco producers located in Tete, Zambezia in the central zone and Niassa province in northern Mozambique (Direct 2010).

3.4 Category of farmers The family farming sector cultivate over 90% of agricultural land and is characterized by a subsistence orientation, with limited use of inputs, and a low percentage of marketable supplies. The family farm averages less than 2 hectares and is characterized by the use of manual labour with hand tools, and rarely animal traction is used in limited areas of the country according to the habit of people lifestyle (Agriculture 2010).

A higher percentage of women are active in agriculture, reaching approximately 96% of the economically active female, as opposed to 67% of the male population. Family farmers are the major producers of basic food crops and a large proportion of cash/export crops such as 50% of cotton and nearly 100% cashew nut are coming from peasants, nonetheless they use rudimentary tools for agriculture(Program 2011).

4 Agriculture and Food and Nutrition security Report from the World Food Program, estimating in 44% population suffering from chronic malnutrition due to lack of food nutrition and 34% are “food insecure and face perpetual hunger.” These conditions are deeper due to an extreme prevalence of diseases which affect the active population such as HIV/AIDs, in 11.5 percent. Adult literacy is contributing for miss understanding the messages conducted by Government and humanitarian agencies to

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014 REVIEW PAPER improve the population livelihood, though efforts is being done to turn upside down the situation, but still vastly below world averages, with around 60% of men and 45% of women assessed in recent years as functionally literate (Reform & Action 2011).

Agriculture food production is determinant and drives food and nutritional security of the population especial in poor countries. The rural population of Mozambique, the majority of them crop production is the main source of both incomes and food, producing the staple food. As domestic agricultural production is extremely variable and it is being affected rainfall regime, which is always uncertainly on time and period. With low access to market of basic foodstuffs, limited access to investment and as the availability of satisfying food needs through imports is restricted, though the increase and stabilization of crop production is essential for achieving food security status. Nonetheless it is important to stress that while agriculture contributes to improved food and nutritional security, more coordination among the various sectors of the society and others stakeholders is definitely important and essential, especially for the areas of nutrition and social protection (Agriculture 2010).

Mozambique in thermo of acute food insecurity, frequently occur in parts of southern and central Mozambique which is always affected by starvation and floods. The affected poor households face limited access to food through market purchases. In the southern zone the rainfall season is repeatedly adversely characterized by dry spells and a late start of effective rains, the long dry spell and extremely high temperatures negatively affect crop development and diverse crops. In the central zone of the country rains frequently starts in early December and most crops, especially maize, are being planted on time. Due to the location of the country, Mozambique is always affected by floods which affect several times the people production and collapse the food security resilience (Messages et al. 2013).

4.1 Conditions for agriculture development in Mozambique The diversity of climate condition together with diversity of soil types in the country are suitable for a large variety of crops, the most agriculture practiced in Mozambique is subsistence and non-irrigated (Calane 1996). Mozambique displays an altitude gradient from the coastal line to the mountainous areas of the west, with three major climatic zones: tropical humid, tropical dry and tropical high altitude. Rainfall ranges between 400 and 2,000 mm per year, being generally highest in the north. Although vary from region to region and year to year, precipitation is usually adequate for growing food crops, except in the southern

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014 REVIEW PAPER inland and parts of Tete and Manica provinces, but the rainfall distribution is the major challenges faced by farmers (Nino 2007).

Mozambique to rise up its agriculture sector with many natural advantages, action plans must be addressed. Amongst others opportunities, its 2500 km of coastline; four ports on the Indian Ocean that extend into regional corridors of commercialization; and natural trade synergies with both its economically powerful neighbour, South Africa, as well as other neighbours that require access to ports, render Mozambique a super potential. All this natural conditions could underpin the country development, if policy changes and favour to agriculture development. Other immediate prospects stem from Mozambique its extensive reserves of arable land, non-protected land, and an environment for credit and investment to support the agriculture sector (Agriculture 2010).

Evidence of next-generation promise is found in far better-than-average economic growth rates, including around 7% growth in agriculture between 2003 and 2009, a rate that is 9 thin the world. The country has experienced recently significant improvements in certain product value chains, including cashews, bananas, and poultry. Even against a current backdrop of low-productivity farms and labour intensive production, Mozambique is in better situation and condition to become much more competitive in its own large opportunity for domestic food markets to strengthen its place in regional markets. And not only become food-secure, but also to underpin and help strengthen food security in the others countries in the region. Mozambique has greater potential to extend and to intensify productivity, growing an internal network of agricultural service-providers. Also by wisely exploit the raised opportunities in biofuel production through the use of agricultural waste, and engage smallholder into emergence farmers module oriented to agribusiness and support them for a more food-secure, prosperous country (Crisis & Bank 2012).

Agriculture sector is in a position to launch and maintain enterprises with much accelerated prospects for the success of the householders. Mozambique has vast potential requires a high-level commitment to greater accountability, stronger agriculture practices. The country agriculture still rudimentary (forestry burning) and far to meet the need for food security (Messages et al. 2013).

Despite of Mozambique being crossed by giant rivers, which many times cause floods, the use of water for agricultural production through irrigation still meagre and people don’t have skills for better water use management. And due to lack on agro-inputs access, the yields

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014 REVIEW PAPER continue to be far to satisfy the food need. As results, waste of water, famine and people more food insecure during all time, is the major challenges faced by farmers (Sustainable & We 2012).

5 Political foundations to turn over the actual situation The Mozambican Government designed and has been implementing a series of policies, strategies and programmes with the purpose of reducing extreme poverty amongst rural people; achieving food security and promoting sustainable socio‐economic development. The main policies, strategies and programmes related to agriculture are reviewed constantly (Agriculture 2010).

The agriculture intensification and diversifying farming and livestock production, the framework is built from the guidelines contained key documents: the Agricultural Policy and Implementation Strategy; the Poverty Reduction Action Plan; the 5‐Year Government Programme 2010‐72014; the Green Revolution Strategy and the Food Production Action Plan; the Rural Development Strategy and the Food and Nutritional Security Strategy (Agriculture 2010).

The Poverty reduction action Plan was Mozambique first strategy oriented to farmers. It focused on institutional reform aimed at providing any appropriate environment for private and public investment, in human capital and productive infrastructure, as a way of facilitating economic growth. The implementation strategy is organized into 6 areas: macro‐economic financial management, education, health, agriculture and rural development, basic infrastructures and good governance (Agriculture 2010).

PARPA II 2006‐2009 defined the country´s medium term strategy for promoting growth and reducing poverty, through activities grouped into three pillars: Governance, Human Capital and Economic Development. With regard to rural development, the Government´s main goal was to increase income‐generating opportunities, especially for the family sector where the problems is waste and with the most problems faced by farmers (Chung 2012).

The goal continues to be the structural transformation of subsistence agriculture into competitive and sustainable agriculture, making an increasing contribution to GDP through implementing the Green Revolution, which highlights agricultural research, water resource management and animal traction.

The PARP is the Government medium term planning instrument for socio‐economic management intended to materialize the 5‐Year Programme. It is also a pathway for establishing partnerships with national and external actors, who are directly involved in the formulation, implementation and evaluation of strategy (Agriculture 2010).

The Council of Ministers in 2007, approved the green Revolution strategy, considered as document to underpin both a national policy instrument and simultaneously a strategic mechanism to speeding up the goals of the previous 5‐Year Programme, which aimed to increase production and productivity of basic food stuffs. And introduce cash crops market oriented to ensure food security and surpluses for market. The objective of the program is to make sure that Green Revolution in Mozambique is therefore to stimulate growth amongst small farmers’ production and productivity, increasing the supply of food (Mather 2009).

According to Agriculture (2010) report that Food Production Action Plan 2008‐2011 (PAPA) comprises the main instrument to take action under the Green Revolution Strategy. The Rural Development Strategy approved in 2007 aims to improve the quality of life and develop the rural areas.

Given that the resources of the majority of the rural population are closely linked to agriculture and related sectors, the goals are perfectly aligned. The Food and Nutritional Security Strategy II 2008‐2015 (ESAN) evolved from ESAN I to incorporate the Right to Adequate Food. The general objective of ESAN II is to guarantee that all citizens have physical and economic access at all times to sufficient food for an active and healthy life, it is based on the following food security pillars: production and availability of food in sufficient quantities for consumption; physical and economic accesses to food; the use and utilization of food; adjustments to ensure that the food is socially, environmentally and culturally acceptable; and the stability of food consumption (Agriculture 2010).

6. Results and discussion

6.1 Results

A. The country seed industry is not capable to produce enough seed for the market size comprised 17.5 million smallholders’ farmers.

B. The country agro-inputs market distribution channels is disorganised and town based, and with high price inputs practiced.

C. The smallholders’ farmer faces limited inputs access due week purchase capacity.

6.2.1 Result 1 and discussion1

The Mozambican seed industry is not capable to produce enough seed for the market size comprised 17.5 million smallholders’ farmers. The consumption of modern inputs in Africa, particularly fertilizers is very low comparing with others countries. In 2008, FAO projected that the situation will not change in the short run as Africa is expected to consume less than 3% of world fertilizer by the end of 2012. To understand the current low levels of modern input use in African has to consider the developments and factors that drive the demand (Anon 2011).

The seed industry in the country is comprises since 2005, by two main seed companies, SEMOC and PANNAR with aiming to produce and market certified seed through created channels (seed distributors and agro dealers). However, more seed sales have emerged in the market with the help of NGO’s, but with the majority importing seed from South Africa, Zimbabwe, Malawi and Zambia. The main companies supplying certified seed in Mozambique are SEMOC, PANNAR, TECAP and HYDROTECH (Table 2). These companies are recognised in the country and produce diversified certified seeds varieties but their average production level a year does not cover domestic seed demand. This derive on fact that the country

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014 REVIEW PAPER infrastructures still not developed and unfavourable land policies, poor climatic conditions, and field pests and disease (Minde et al. 2011).

Table 2: Seed companies providing certified seed to farmers in Mozambique Seed Company Operations SEMOC (Sementes Initiated in 1978 and 51% is owned by the Seed-company of de Moçambique Lda) Zimbabwe, 30% by the Mozambican government, 9.5% by Svalöf/Weibull AB and another 9.5% by International AB PANNAR Involved in seed production although it was initially a seed importer when it initiated its activities in Mozambique. The company receives technical and financial backing from PANNAR Greytown in South African. HYGROTECH Operations in Mozambique began in 2000 and it deals mainly with Mozambique commercialization of vegetable seeds A Mozambican firm which is a part of Mayford, a South African seed TECAP company. Like HYGROTECH, it mostly supplies vegetable seed.

The table 2 shows the seeds companies established in Mozambique as private sector to deal with agricultural inputs, but the results indicate for Seed Company’s incapacity on producing enough seeds and with also problems of low demand creation, farmers do not afford to seeds due high price per unit. Despite country improvement in seed production levels by the seeds companies, still need for imports to cover seed deficit. Seed marketing is always dependent on relief programs and Government. Most of the produced seeds and commercialized (80%) by companies is absorbed by emergency programs (Kachule & Chilongo 2007). Although about US$6 million are allocated by farmers for seed purchase, US$5 million are spent on informal market. This is an indication of the large gap in the seed marketing sector and an opportunity for private sector development (Kachule & Chilongo 2007).

According to the International Monetary Fund 2011 report that Mozambique agricultural growth will hardly depend deeply on incentives for small scale farming through the expansion of technical assistance services and the availability of inputs, which will have any impact on food production (Reduction & Paper 2011).

6.2.2 Result 2 and discussion 2

The country seed distribution channels is disorganised and town based, and with high price inputs practiced. The demand and supply of agricultural inputs are influenced largely by changing and often interrelated factors: population and economic growth; agricultural production; prices; and Government policy. They are the main drivers of both agricultural input demand and supply. In addition, changes in technology are crucial in the supply of agricultural inputs (Cropfood et al. 2010).

Mozambique, despite the liberalization of agricultural market reforms after independence poverty and food insecurity are still prevalent, due largely low agricultural productivity. In the country, agriculture still characterized by low levels of use of agro-inputs, approximately 5 percent of the producers amongst 3.7 million farms making use of it (Minde et al. 2011). The farmers inputs purchase power is limited (Cropfood et al. 2010). As in many developing countries, the vast majority of Mozambique’s largely rural population is linked to the agricultural sector. Rural agricultural households also face very high levels of poverty. Rapid agricultural growth, therefore has the potential to have a meaningful impact on poverty (Pauw et al. 2012).

The farmers in Mozambique face serious problems in accessing the market. The high transaction costs are due to poor infrastructures. The construction and rehabilitation of roads and other infrastructures in areas of greatest farming and livestock potential should be given priority. In addition to the basic infrastructures, markets must have storage facilities with minimum services conditions, and an effective information system on the prices of inputs and products must be established (USAID, 2012). These services will contribute significantly to reducing transaction costs and allow small farmers to participate in the market share (Minde et al. 2011).

According to agricultural Marketing Strategy 2006‐2009, the Government began a process of market liberalisation, with introduction of measures to encourage developing domestic market as way to access the neighbour countries market. Despite efforts to integrate into the sub‐regional market, with no Government support, farmers continue experiencing various problems, in particular with regard to farmers´ capacity to respond to market demand (Agriculture 2010).

With the exception of the cash crops supported by agriculture companies, the majority remaining food products are marketed by small trading agents, in many cases without know how of agribusiness, exploring small farmers from their production which always are not earning enough to correspond to the input applied for (Agriculture 2010).

The deficient post‐harvest handling of the products, the lack of adequate infrastructures for storage, the inadequate implementation of quality safety principles, the lack of access to credit for marketing, the low availability of information about markets and prices, the lack of extension services for marketing and the absence of strong peasant associations inhibit the establishment of closer and more equitable relations between farmers and markets (Minde et al. 2011).

In the northern region, which has the highest agricultural production, road access limits the activities of the marketing agents, particularly during the rainy season. There is no specialized transport sub‐sector for agricultural trade. There is no railway system linking the north and south of the country. Improvement of roads and the transport and communications network, together with improvements to irrigation, marketing and processing infrastructures – especially in the most productive areas ‐ comprise another important challenge for increasing agricultural production (Pauw et al. 2012).

The Mozambique Cereals Institute (ICM) owns warehouses scattered throughout the country are not well operating for the goodness of farmers, but rented to the private companies. The majority of storage capacity is located in the cities and towns, and few are closer to the production area, the problems of pest and physical deterioration, makes farmers more vulnerable to the postharvest losses productive centres (Agriculture 2010). Another major constraint for the poor farmers is related to agro-industry, there is no agro-processing for agriculture products. Little location with agro-processing industry has boosted agriculture production and lowers the level of poverty amongst small farmers. The scheme of involving small farmers, with technical assistance from the concessional company, example tobacco and cotton, coupled with credit in kind, is resulting in gains amongst small farmers (Anon 2012).

6.2.3 Result 3 and discussion 3

The smallholders’ farmer faces limited inputs access due week purchase capacity. Agro- inputs have been too costly and farmers in Mozambique have been too poor, with little or no access to credit, hence in order to resolve the impasse subsidising the costs of inputs is important to hereby create an expected higher yields, higher incomes, more food, less hunger and poverty (Reduction et al. 2010).

Due to high price of inputs, small farmers steadily use grain market as main source of seed for production. The market is entirely constituted by informal seed sales several times reported as unfair and with low. Smallholders’ farmers rely on their own farmers saved seeds from the previous campaign and there is a significant presence of villagers’ seed markets in Mozambique. In fact the village seed market is the true seed foundation of the Mozambican seed market. Farmers may sell or bartering the seed to obtain other seeds varieties they might need to purchase (Minde et al. 2011).

The use of fertilisers is limited to farmers purchase power, with consumption levels for 2008 having been 22,751 tones (Africa & Hammond 2011). Liberalization of markets and privatization as policy under the structural adjustment development program are understudied to underpin the change in the formal agricultural input markets in Southern Africa (Zerbe 2001).

The formal input markets are made up for both public and private institutions. The formal input markets in Mozambique comprise seed and fertilizer companies, Non-Governmental Organizations (NGOs) and general relief activities. These play important role on securing to small farmers the certified seed and agrochemicals. The National Seed Service is a Government Institution related to promote and protect seed quality in order to increase national seed productivity. The two major companies making up the private sector are SEMOC and PANNAR but other smaller retailers are present (Minde et al. 2011).

The subsidy programme comes as result of the state of seed insecurity, to contribute to improve the food security at household level and surplus maize production at national level, after country having been a net importer of maize for over a decade (Kachule & Chilongo 2007). The distribution of seeds to farmers through relief programs is done to rise up and stimulate agriculture productivity, amongst smallholder usually depending farmer saved seed from their previous harvest. Few others farmers with the purchasing power purchase seed and fertilizer from agro dealers’ shops. Small farmers from Mozambique have experience

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014 REVIEW PAPER severe stress caused by the problems of seeds insecurity ranging from wars to natural disasters. The Mozambican seed sector was first affected by the war of independence and the subsequent civil war and by then the natural disaster (Minde et al. 2011).

In Mozambique more than 70% of small farmers due to the seed price and lack of availability of improved seeds at the rural area level, farmers steadily have been using grain seed, with consequence of low productivity which affect yields and is not as tolerant to pests and diseases, all though, the local informal seed markets were able to meet the annual seed requirements for the 1997/98 season (Minde et al. 2011).

7 Conclusion

1. The findings shows poor seed industry in the country despite agricultural sector being the development engine, employing approximately 80% of the country active population, contributing for the absorption of the labour (Pauw & Thurlow 2011). And agriculture sector represents 24% of the country GDP in 2011 (USAID, 2012).

2. Data from the review reveal that the country agro-inputs marketing system is informal and not organized, and towns based and faces poor infrastructure. Allied to this is the high price of inputs at the market place, which makes the majority smallholders farmers not to afford, unless if involved in the production of cash crops such as tobacco, cashews, cotton and sugar (Crisis & Bank 2012).

3. The review findings conclude that there are significant constraints to agricultural development with less than 10% of farmers using improved seeds and fertilizers (Minde et al. 2011 and USAID, 2013). The farmers facing limitation on accessing inputs cannot produce enough for food consumption and to generate incomes, therefore high rates of food insecurity and malnutrition.

8. Bibliography

Afonso Pedro Chibalo, MSc studant REVIEW PAPER RAC/UK 2012/2014