03-08-2012, 12:14 PM
Farm equipment supply chains
Brazil Pak & Kenya.pdf (Size: 2.19 MB / Downloads: 62)
Introduction and background
The lessons derived from this analysis of three
machinery input supply chain case studies are
mostly relevant for developing countries, especially
in parts of Africa, where mechanization has still to
fully take off. Despite decades of development
efforts in SSA, the lack of a well functioning
machinery input supply chain for small- and
medium-sized farms has resulted in an acute farm
power shortage. This is having a detrimental
impact on agricultural production and rural
livelihoods. Agriculture is the mainstay of many
African economies and in a recent joint meeting on
the future prospects for agricultural mechanization
on the continent (FAO and UNIDO, 2008), it
was recognized that current rates of progress are
inadequate to keep pace with population growth
(FAO and UNIDO, 2007b).
REPORT STRUCTURE
This report is structured in the following way:
this Chapter provides the background to the
comparative study and indicates the objective to
be achieved. Chapter 2 reviews issues surrounding
machinery supply chains with information on agroindustrial
SCM, alternative approaches to reduce
the need for farmers to overinvest in machinery and
a comparative summary of supply chain constraints
from the three in-country studies. It also discusses
the need for a machinery testing service and offers
suggestions for its organization. Chapter 3 brings
together the salient points for each stakeholder
group in the form of guidelines principally directed
at policy-makers in SSA. Chapter 4 presents brief
summaries of the three contributory case studies
(in Kenya, Pakistan and Brazil). In each of the
three country studies farm machinery supply issues
and the levels of and needs for improvements of
business management skills for supply chain actors
are discussed.
Financing farm machinery
One aspect of medium and smallholder farmers
that is constantly mentioned by manufacturers
and retailers is their limited ability to invest in
agricultural equipment. The helpful provision of
credit at moderate interest rates has been highlighted
(in the case of Brazil) but the advantages of sharing
machinery ownership would also repay further
investigation, especially in the case of SSA.
Lander (2000) suggests a number of alternatives
to maintain the efficiency of machinery use.
Whereas sole ownership of a machine improves
timeliness, equipment matching and maintenance
assurance, there are also no costs for management
or travelling, which may be incurred in the sharing
possibilities discussed below. On the other hand the
following options may offer lower cost solutions in
given circumstances.
SUMMARY OF CONSTRAINTS
Stakeholder constraints
Table 1 summarizes the principal constraints
encountered for each class of stakeholder in the
three case study regions. The analysis is especially
relevant to the Kenya and Pakistan cases as it would
appear that Brazil has passed through these difficult
stages several decades ago. Many of the currently
successful NT equipment manufacturers in Brazil
started out as family businesses offering repair and
maintenance services to agricultural machinery
users. As they gained experience, and with the
advent of NT as a viable option for Brazilian
farmers, they were able to adapt and exploit the
new market with innovative designs suited to
prevailing conditions and demand. However,
with the reduction in public sector support for
equipment purchase by small-scale farmers and
the parallel move by small-scale farmers to change
from draught animal to small tractor power, some
machinery businesses are going out of production.