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Auction and Voucher Programs

Ministry of Agriculture and Animal Resources (MINAGRI)--Rwanda Agricultural Intensification Program – 2008/09 Season. Auction and Voucher Programs. Agricultural Intensification Program – 2008/09 Season. Fertilizer Auction Objectives.

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Auction and Voucher Programs

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  1. Ministry of Agriculture and Animal Resources (MINAGRI)--RwandaAgricultural Intensification Program – 2008/09 Season Auction and Voucher Programs

  2. Agricultural Intensification Program – 2008/09 Season Fertilizer Auction Objectives • Transfer fertilizer business to the private sector to sell to commercial farmers and those farmers receiving vouchers • Use mechanism to reduce impact of unprecedented high international market prices

  3. Agricultural Intensification Program – 2008/09 Season Voucher Program Objectives • Planned to target over 50,000 resource limited maize and wheat farmers by providing product purchase support (PSP) • Introduce use of fertilizers and improved variety seed and other modern agricultural practices to these farmers thereby helping to increase agricultural production • Encourage establishment of private sector distribution network to take on this function in future

  4. Rwanda Agricultural Intensification Program – 2008/09 Season Subsidy through Voucher Program – Flow Diagram Ministry of Agriculture (MINAGRI) World Bank FAO Financial Assistance Technical Assistance IFDC Advisory Services Commodity Subsidy Funds Special Cell Program Management Subsidy Vouchers RADA/Provincial Governments Districts Used Vouchers Fertilizer Auctions Program Promotion Voucher Redemption Dealer/Retailer Co-ops Network Regional NGOs Bank (s) Program Extension Fertilizer + Seed Voucher + Cash Program Monitoring & Evaluation Voucher Distribution Farmer

  5. 2,065 mt urea 3,450 mt DAP: 34,500 ha maize + wheat 1,600 mt 17-17-17: 16,000 ha irish potatoes Results of Auctions

  6. Results of Voucher Distribution • Access to fertilizers for a large number of farmers (~ 65,000) • Relationship between all the stakeholders of the accessibility chain: • Farmers; retailers; distributors; MFIs; services providers; public sector;… • First contact with the bank sector for many farmers • Information and exposure to improved technologies

  7. Impact of Market-Friendly Support Mechanisms on Crop Production • In 2008/09, maize and wheat yields increased more than 50% • Due to bumper maize harvest, post-harvest storage became a problem • Some farmers achieved 5-6t/ha maize yields

  8. Conclusion: The Way Forward • Resource-poor farmers will need medium-term support to get out of the poverty trap. • Farmers should pay for a portion of input costs. • Support should be targeted with an exit strategy.

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