Rural Urban Development Initiatives (RUDI)
“Expansion of Warehouse Receipt Programs for Rice and Maize in Ifakara, Iringa and Handeni (Tanga) districts of Tanzania”
RUDI has identified the suboptimal performance of the rice & maize marketing system as one of the key areas for intervention. The factors contributing to the under-performance of the marketing system in fact exclude smallholder producers’ from participating gainfully in the rice value chain. These factors can be grouped into three main categories: i) marketing constraints – poor access to market information, weak farmer organizations and selling at harvest pressure occasioned by lack of adapted credit facilities to meet farmers’ immediate capital needs as well as limited access to storage facilities, and limited access to reliable market outlets; ii) low rice productivity because of low technical (husbandry) know-how, poor access to rice production inputs because of lack of credit facilities and poor network of agro-dealers, and inappropriate input usage (e.g. of fertilizers and agrochemicals); iii) policy related issues especially export bans and other government interventions that distort markets, inappropriate grades and standards, export licensing requirements, high excess tax, and lack of forums where policy-related matters impacting smallholder farmers’ access to markets can be raised, debated, discussed and agreed upon for implementation.
The critical lacking capacity is how to organize collective systems for competitively accessing the services (market information, warehouses, credit, and reliable market outlets) required for rice enterprise development both from the input and output markets. To address this anomaly, RUDI, with an EA Trade Hub grant, will help smallholder producers acquire the skills needed to participate effectively in rice/maize value chains in order to increase their incomes, improve access to finance, reduce post-harvest loses, reduce transaction costs through collective marketing, and improve rice trading environment. The EA Trade Hub grant is to be used in the fight against poverty and in improving food security by stimulating smallholder rice productivity through an inclusive and functioning rice marketing system.
Grant Timeline: December 1st, 2009 – March 31st, 2012
Total Amount: $446,822