Inovagro II 2017 Annual Report Consolidated 11-4

InovAgro Phase II Annual Report 2017 Submitted to the Swiss Agency for Development and Cooperation (SDC) Swiss Cooperation Office Mozambique 02 November 2017 Submitted by DAI Europe In association with COWI Lda i Contents Annual Report 2017 ............................................................................................. i Executive Summary ................................................................................................. vi 1. Introduction ....................................................................................................... 1 1.1 Investment Climate in Northern Mozambique ............................................ 4 1.2 Business Reaction to Context .................................................................... 7 1.3 Conclusion .................................................................................................. 8 2. Value Chain Analysis ........................................................................................ 9 2.1 Project Outreach ........................................................................................ 9 2.2 Pigeon Peas ............................................................................................... 9 2.3 Maize ........................................................................................................ 13 2.4 Soya beans .............................................................................................. 17 2.5 Groundnuts ............................................................................................... 20 2.6 Sesame .................................................................................................... 22 2.7 Conclusion ................................................................................................ 24 3. Seed Sector ..................................................................................................... 26 3.1 Review of selected seed company strategies: ......................................... 26 3.2 Partnership Activities and Results during Reporting Period ..................... 28 3.3 Conclusion ................................................................................................ 35 4. Enabling Environment .................................................................................... 37 4.1 Partnership with the National Seed Authority ........................................... 37 4.2 Partnership with APROSE ........................................................................ 39 4.3 APROSE Partnership Activities with InovAgro ......................................... 39 4.4 Discussion on APROSE ........................................................................... 44 4.5 Conclusion ................................................................................................ 46 5. Output Marketing ............................................................................................ 47 5.1 Establishment of Produce Buying Centres ............................................... 47 5.2 Volume of Purchased Produce ................................................................. 50 5.3 Enabling Environment for Output Marketing Activities ............................. 55 5.4 Conclusion ................................................................................................ 57 6. Access to Finance .......................................................................................... 58 6.1 Linking smallholder farmers to Formal Financial Markets ........................ 58 ii 6.2 Implementation progress on the Agricultural Fund through VSLAs ......... 61 6.3 Conclusion ................................................................................................ 72 7. Farmers Economic Security .......................................................................... 73 7.1 Main Activities and Achievements ............................................................ 74 7.2 Expansion of Delimitation Services .......................................................... 77 7.3 Training of Community Leaders / Value Chain Actors ............................. 79 7.4 Conclusion ................................................................................................ 79 8. Project Governance ........................................................................................ 81 8.1 Closure of InovAgro Phase II activities ..................................................... 81 8.2 Preparation for InovAgro Phase III ........................................................... 84 8.3 Conclusion ................................................................................................ 86 9. Conclusion ...................................................................................................... 87 List of Tables and Figures Figure 1: Vision for InovAgro II ............................................................................................................... 1 Figure 2: Value chains supported by the InovAgro Project .................................................................... 2 Figure 3: Project Location and Partners Map ......................................................................................... 3 Figure 4: The Late Mayor of Nampula .................................................................................................... 4 Figure 5: Exchange Rates: Meticais / USD(Source: Bank of Mozambique) ............................................ 6 Figure 6: Pigeon Pea Produce Buying Price (Last three seasons) ......................................................... 10 Figure 7: Volume of pigeon pea seed sold in project locations ............................................................ 11 Figure 8: Healthy pigeon pea crop stand in Chiure .............................................................................. 12 Figure 9: Project supported smallholder maize growers in Gurué ....................................................... 13 Figure 10: Comparative review of seed sales in project locations ....................................................... 14 Figure 11: Comparative Review of Maize Yield .................................................................................... 15 Figure 12: Maize crop affected by the Fall Army Worm ...................................................................... 16 Figure 13: Maize prices in Mozambique .............................................................................................. 16 Figure 14: Soy bean production and consumption trends in Mozambique (source: USAID Speed, 2016) .................................................................................................................................................... 17 Figure 15: Average soya bean output buying prices in InovAgro project locations ............................. 18 Figure 16: No. of Farmers growing groundnuts in project locations .................................................... 20 Figure 17: Groundnut plot in Erati managed by a female farmer ........................................................ 20 Figure18: Groundnut Value Chain Map (Source: InovAgro Sector Reports) ........................................ 21 Figure19: Sesame Value Chain Map 2017 (Source: InovAgro Sector Reports) ..................................... 23 Figure 20: Sesame Yield in Project Locations ....................................................................................... 23 Figure 21: Historical Review of Seed Companies Activities .................................................................. 29 Figure 22: Lead Farmer Hilda Carlos demonstrating result from demonstration plot in Ribaue ......... 29 Figure 23: Syngenta Demonstration Plot Log Book .............................................................................. 30 Figure 24: Volume of seed sold in project locations ............................................................................ 32 Figure 25: Source of Funds supporting APROSE Activities ................................................................... 41 Figure 26: Ms. Sumaili engaged in business at her new buying post opened in Alua, Erati. ................ 50 iii Figure 27: Participants in the Post-Harvest Training in Erati ................................................................ 52 Figure 28: Metal silos produced and marketed by COOSEN during the post-harvest trainings .......... 53 Figure 29: Participant demonstrating use of the silo during the training ............................................ 53 Figure 30: TECAP Extension Officer demonstrating use of the product to participants ...................... 54 Figure 31: Participants at the Output Marketing Workshop in Nampula ............................................ 56 Figure 32: Opportunity Bank Financial Literacy Education in Molombo .............................................. 58 Figure 33: Opportunity Bank Loan Officer engaging with smallholder farmers in Molombo jointly with Phoenix Seeds ...................................................................................................................................... 59 Figure 34: Smallholder farmers from Molombo at the BOM branch in Gurué for account opening ... 60 Figure 35: Klein Karoo Agronomist engaging with the savings groups members in Mocuba during a Seed Fair. .............................................................................................................................................. 63 Figure 36: District Management Committee members attending

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