Boosting farmer’s profits through better links to markets Poor farmers in Tanzania are using modern information and communication technologies like mobile phones and even the Internet to get access to market information, and to learn how to build better and more collaborative market chains from producer to consumer. Market “spies”, known locally as shu shu shus, investigate prices and other aspects of local markets, then use their mobile phones to report the information back to their villages. Soon they might be using SMS to access Internet-based databases of locally-relevant market information.
“I make sure I go to the traders to find out prices, to negotiate and investigate the prices”, says Mchome. “It is important to avoid cheating and make sure the information you are getting is really good.” “This work is not easy,” he says. “Many traders do not want the farmers to know the actual prices they are selling at.” Using his phone, he can quickly call and send text messages to other members of his farmers’ association. Vital information is shared, such as prices and quantities needed. He also collects other highly relevant information, particularly about when, where and to whom farmers’ products can be sold. His efforts will help fellow farmers increase market access, minimize inefficiencies and maximize profits. Market spies like Stanley play a crucial role in the First Mile Project, an initiative linked to the Agricultural Marketing Systems Development Programme (AMSDP). AMSDP is a seven-year, US$42.3 million programme, funded in part by a US$16.3 million grant from IFAD. The First Mile Project, funded by the Swiss Government, was launched in 2005 and is now in its second phase. The First Mile Project is about how small farmers, traders, processors and others from poor rural areas learn to build market chains linking producers to consumers. People in isolated rural communities use mobile phones, e-mail and even the Internet to share their local experiences and good practices, learning from one another. While communication technology is important, real success depends on building trust and collaboration along the market chain. Ultimately farmers and others involved develop relevant local knowledge and experience and share it – even with people in distant communities – to come up with new ideas. In mid-2005 the First Mile Project Phase 1 started working with small farmers in parts of Tanzania to improve their access to markets and market information. The project set out to:
A little less than ten months later, in March 2006, project participants met to discuss and assess the impact of their work on market chain development. After just one agricultural season, they agreed there had been considerable impact on their access to markets and on their production and incomes. For an initial investment of US$200,000, the project’s activities contributed to a gross increase in income of participants of more than US$1.8 million. Innovative solutions First Mile project showed that poor rural people can come up with innovative solutions if they are given the support they need to be able to try out new ideas and exchange learning, relevant local knowledge and experience. And, by being able to make new deals, farmers achieved some very promising results in terms of increased production and income within a short time. For example, five farmers’ associations in Songea and Namtumbo districts managed to sell 70 tonnes of maize at US$ 143 per ton in early 2006 by using mobile phones, price updates broadcast by radio and the market intelligence gathered by shushushus, or market spies. This was more than double the price obtained by other farmers’ groups in the same period who didn’t have access to near real-time market intelligence. Experiences such as these were shared at the village level on local billboards and at face-to-face meetings. They were also shared between districts, through Linking Local Learners, a methodology that combines face-to-face learning, in which local groups learn together through experience and discussion, with use of an Internet-based learning platform. The sharing of learning and experiences has often inspired others to pick up on innovative ideas and practices. The shared experiences of participants are being archived in an on-line knowledge pool of locally derived information. The information is all the more relevant because it has been compiled by the farmers themselves. Built-in sustainability The First Mile Project has a built-in sustainability strategy. Phase 2 will support the emergence of commercially viable rural service providers that can use modern ICTs to provide marketing services to small farmers. The focus will be on how to achieve sustainable and reliable services along market chains in rural areas of Tanzania. Over two years, the project will experiment with:
Building on the experience of the First Mile Project, IFAD is now working with FAO to support a Rural Knowledge Network project for East Africa. IFAD has provided a grant of US$1.5 million to FAO over three years to implement the project. The Rural Knowledge Network project will work with farmers and their organizations to build a region-wide knowledge management process that responds to farmers’ demands and generates and delivers information to meet their particular requirements in a useful form. Source: IFAD |
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Stanley Mchome takes a last sip of tea before getting on with work. Outside the coffee shop, the sun is scorching. His white hat is indispensable but his most crucial accessory is the mobile phone attached around his neck with a piece of string. Today, Mchome is in Babati, Northern Tanzania. He roams the alleys in the market, chatting with traders, wholesalers and transporters to find out the latest market news. As a ‘shu shu shu’, a market spy, he investigates selling prices of tomatoes, potatoes, maize, rice and all the various crops and commodities grown locally. 
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