Project profile — Smallholder Farmers Prosperity Initiative

• Canada (3.00%)
• Ethiopia (97.00%)

• Water And Sanitation: Water resources conservation (including data collection) (14015) (10.00%)
• Agricultural inputs:
Agricultural inputs (31150) (20.00%)
Food crop production (31161) (20.00%)
Agricultural extension (31166) (10.00%)
Agricultural education/training (31181) (15.00%)
Agricultural research (31182) (5.00%)
Agricultural financial services (31193) (7.00%)
Agricultural co-operatives (31194) (10.00%)
• Unallocated/ Unspecified: Promotion of development awareness (99820) (3.00%)

• Environmental sustainability (cross-cutting) (significant objective)

This project seeks to increase the incomes of 1,000 marginal smallholder farmers by an average of $200 a year. It promotes the diversification of crop production to include high-value vegetables as a second crop. It uses effective and affordable micro-irrigation technology such as simple treadle pumps and drip irrigation kits, coupled with skilled use of fertilizers and proven seed stocks. The project aims to put in place a sustainable commercial supply of affordable micro-irrigation equipment, to train farmers in the new methodology, and to provide them with access to microloans to initiate the diversification of their agricultural production. It also aims to strengthen existing marketing cooperatives and to establish new marketing cooperatives and collection centres. The project is located in the Bacho district, south-west of Addis Ababa. Lessons learned from a larger adjacent project are used in the planning of this new project.

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Results as of the end of the project include: 659 smallholder farmers purchased micro-irrigation equipment and were able to increase the value of their production by 35% and their average gross revenues by 39%, compared to farmers who did not purchase the equipment. The following elements were critical components to achieve this: i) An affordable well-digging service has been established. Eight well-digging crews have been trained, with two crews having successfully started a business providing this service. 222 wells are in operation so far and the new well-digging technique introduced significantly reduces the cost of accessing water. ii) Two manufacturers of rope and washer pumps are in operation, as well as a suction-only treadle pump manufacturer. Village mechanics are earning additional income installing the pumps. Warehousing has been established for the parts required to manufacture the pumps. This reduces volatility in the cost of parts for the manufacturers, which in turn helps to stabilize the price of the pumps. iii) Microcredit services have been established and 369 customers have received loans. 258 customers (including 23 women) used their loan to purchase micro-irrigation equipment. The remainder of the customers used their loan to purchase other equipment or supplies. iv) 22 marketing groups have been created. This included establishing bylaws and financial management processes, as well as training in crop storage, leadership, business planning, initiating a savings culture, improving crop quality and volume, and the collection and dissemination of market information. v) Two collection centers have been constructed to support the consolidation of crops in order to capture higher prices from the markets. Direct links have been initiated between hotels and retailers as markets and pepper, garlic, cabbage, potato, and onion producers. vi) Advisory and community education services were provided to farmers who purchased micro-irrigation equipment. Farmer Training Centers were used to demonstrate how to optimize production using irrigation technology. vii) Low-cost practices for reducing post-harvest losses were introduced The production of high-value onion seeds has been established as a new income opportunity. Support was provided to seed dealers to help them deliver higher-quality seeds. viii) Innovative methods were used to convey information to over 8,500 people over the course of the project, including demonstrations at market days, mobile displays, community marketing agents, and training.

• Proactive disclosure