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(PICS) SUPPLY CHAIN STUDY International Programs in Agriculture Purdue University

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PURDUE IMPROVED COWPEA STORAGE (PICS) SUPPLY CHAIN STUDY by Jeanne Coulibaly, Stephen D’Alessandro, Theodore Nouhoheflin, Casimir Aitchedji, Maiyaki Damisa, Dieudonné Baributsa and J. Lowenberg-DeBoer Working Paper #12-4 November 2012 International Programs in Agriculture Purdue University It is the policy of Purdue University that all persons have equal opportunity and access to its educational programs, services, activities, and facilities without regard to race, religion, color, sex, age, national origin or ancestry, marital status, parental status, sexual orientation, disability or status as a veteran. Purdue University is an Affirmative Action institution. PURDUE IMPROVED COWPEA STORAGE (PICS) SUPPLY CHAIN STUDY by Jeanne Coulibaly, Theodore Nouhoheflin, Casimir Aitchedji, Maiyaki Damisa, Stephen D’Alessandro, Dieudonné Baributsa and J. Lowenberg-DeBoer Department of Agricultural Economics and International Programs in Agriculture, Purdue University West Lafayette, IN 47907-2056 [email protected], [email protected], [email protected], [email protected], [email protected], [email protected], [email protected] Working Paper #12-4 November 2012 Abstract The Purdue Improved Cowpea Storage (PICS) project was launched in 2007 with a grant from the Bill and Melinda Gates Foundation. The project was designed to help farmers access low- cost and chemical-free cowpea storage technology designed to store their cowpeas at harvest affordably, with minimal loss, in order to take advantage of seasonal price variability. One of the specific objectives was to develop supply chains for triple-layer plastic bags to make the technology available to farmers and provide opportunities to local businesses. To achieve the supply chain objective, the project has been pioneering investments in the development of factory-to-farm distribution systems across West and Central Africa. While notable progress has been made, project interventions have evolved over time, and experiences across the PICS countries have been uneven. This study provides an overview of the supply chain experience by country and some of the key lessons learned including: 1) PICS bags are well adapted to the storage needs of smallholder farmers, but not as well accepted by large scale grain traders; 2) the PICS incremental rollout strategy over five years allowed for learning in the early years to be incorporated in subsequent countries; 3) risk sharing strategies are needed for manufacturers and distributors of PICS bags; 4) agro-dealers are some of the best PICS vendors, but cell phone vendors and other entrepreneurs can be effective PICS retailers; 5) public sector institutions like national extension services are not well suited to sales of PICS bags, but individual public sector employees can be good vendors as a supplementary activity; 6) credit is not a key constraint for most PICS vendors, but low profitability and risk are; 7) first year reference price programs have substantial negative effects on market development in subsequent years; 8) crop forecasts are key to timely availability of PICS bags; 9) trademarking the PICS logo was a useful step, but it is not a substitute for patent protection; and 10) PICS project business consultants played a key role in market development which should be gradually shifted to the private sector. Key words: supply chain, agricultural inputs, grain storage, hermetic, Africa, risk sharing, credit JEL codes: O13, Q12 Copyright © by Jeanne Coulibaly, Stephen D’Alessandro, Theodore Nouhoheflin, Casimir Aitchedji, Maiyaki Damisa, Dieudonné Baributsa and J. Lowenberg-DeBoer. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. Table of Contents PREFACE ............................................................................................................................................................................. 7 ACKNOWLEDGEMENTS .............................................................................................................................................. 7 LIST OF ACRONYMS ...................................................................................................................................................... 8 INTRODUCTION ............................................................................................................................................................ 12 Background ..................................................................................................................................................... 12 Goals and Objectives ...................................................................................................................................... 13 Hypotheses ...................................................................................................................................................... 13 Methodology ................................................................................................................................................... 14 Outline of the report ........................................................................................................................................ 16 BENIN ................................................................................................................................................................................. 17 Presentation of PICS supply chain case study ................................................................................................ 17 Current situation ............................................................................................................................................. 17 Supply chain actors ......................................................................................................................................... 18 Current major issues at each level of the chain .............................................................................................. 23 Evolution of the supply chain and major milestones ....................................................................................... 26 Challenges faced in developing the supply chain ........................................................................................... 32 Strategies developed to encourage private actors’ investments ...................................................................... 35 Challenges and opportunities to supply chain sustainability .......................................................................... 35 Key lessons learned from country experience ................................................................................................. 37 Annex .......................................................................................................................................................... 40 BURKINA FASO ............................................................................................................................................................. 42 Presentation of the PICS supply chain case study .......................................................................................... 42 Current situation ............................................................................................................................................. 42 Evolution of the supply chain and major milestones ....................................................................................... 52 Challenges faced by in developing the supply chain ....................................................................................... 54 2 Strategies developed to encourage the private sector investment ................................................................... 55 Challenges and opportunities to supply chain sustainability .......................................................................... 56 Key Lessons Learned ...................................................................................................................................... 58 Annex .......................................................................................................................................................... 60 CAMEROON .................................................................................................................................................................... 62 Presentation of PICS supply chain case study ................................................................................................ 62 Current situation ............................................................................................................................................. 62 Supply chain actors ......................................................................................................................................... 65 Current major issues at each level of the train ............................................................................................... 73 Strategies developed to encourage private actors’ investments ...................................................................... 74 Solutions to expand the supply chain via increased private sector investments ............................................. 74 Key lessons learned from country experience ................................................................................................. 75 Annex .........................................................................................................................................................
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