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Economic Growth Success Stories


Smallholder Export Organic Honey Production and Sale Increases – A case of Mwinilunga Small Holder Producers.
A honey farmer demostrating how she harvests beess honey
Small scale honey farmer

In early FY 2003, the USAID supported Zambia Agribusiness Technical Assistance Center (ZATAC) began providing assistance to a “Smallholder Export Organic Honey Project” in Mwinilunga district in Zambia’s poorest province, the North Western Province. ZATAC’s approach of providing marketing, technical and financial linkages between producers and agribusinesses paid off very quickly in the sub-sector. Approximately 3,000 honey farmers were trained through ZATAC support in proper procedures in honey production, honey harvesting, and handling of certified organic honey for export. In less than a year, the certified organic honey being exported from North Western Province leaped from 50 tons to 180 tons, a 260% jump. This exponential rise in volume has now successfully placed Zambian organic honey on the world organic honey map. Over this period to come, it is estimated that households engaged in organic honey production increased their annual income by 40 to 100%. In addition to increased income, the rise of the honey market is slowly giving way to another positive development: strong focus by the rural communities on forest conservation. This is a success story that is rapidly bringing supplemental income and hope to many in Mwinilunga. ZATAC support at all levels (farm, cooperative and commercial company) has enabled not only processors and exporters of honey in North-Western Province, but also resource-poor households to take part in this economic activity to sustainably boost income as well as to diversify their income base.

Kazungula Milk Collection Center: A model for replication!

After the successful establishment of the Kazungula Milk Collection Center in FY 2002, the USAID supported ZATAC Ltd, working together with other partners in a development alliance, has facilitated the replication of the Kazungula milk collection center model to nine (9) other strategic locations to create milk markets for smallholder producers thereby raising the number of USAID supported rural dairy centers in Zambia to 10. The success of milk collection centers has caught the Zambian Government’s as well other donors’ eyes, who are now talking about helping more smallholder cattle growers to take up this major income generating opportunity for smallhoder dairy farmers. Other notable events that arose on account of the increased number of milk stations include:
Increased participation of businesses involved in the dairy sector at the Golden Valley Agriculture Research Trust (GART) organized Annual Dairy Day from less than 10 to 28.

Addition of Trade Show to the Annual Dairy Day in which 3000 smallholders participated. Increased investment by dairy sector suppliers into their businesses. One business invested US$25,000 to build a stock of milk cans and buckets to respond to smallholder needs. Emergence of steady stream of suppliers of dairy sector inputs such as those who supply the chemical alcohol which is used for testing milk quality. Increased numbers of smallholder farmers buying improved breeds of cattle that provide higher milk yields than traditional ones. One stallholder farmer at the Annual Dairy Day, remarked, “We are happy to attend this dairy day and meet with all the other players involved in the dairy business. We are grateful to ZATAC for promoting milk stations in Zambia. Now we know, if we look after our animals properly, we will get plenty of money from milk sales at the milk stations. We will continue coming to this milk day to meet with fellow smallholders selling to milk stations to share ideas with them on how to improve our businesses.”Top of Page

LINKING PRODUCERS TO MARKETS

A maize farmer showing the success of crop

A maize farmer

In isolated North-Western Province of Zambia, smallholders in the Miombo forests in the headwaters of the Zambezi River have traditionally followed the honey-guide bird to find seasonal sweets, but not much income. Thanks to the USAID-supported Zambia Agribusiness Technical Assistance Center (ZATAC) project, 3000 smallholders have now been trained in beekeeping, boosting household incomes by more than 60 percent. They now produce, harvest, and properly handle certified organic honey for export to the European Union, and soon to the Middle East and the USA. Within less than a year of assistance, certified organic honey exports leaped by over 200% from 50 to 180 tons the first season. By September 2004, organic honey exports hit the 350 tons mark, making Zambia one of the largest organic honey exporters in Africa. Top of Page

USAID's Support Makes a Difference to Small and Medium Enterprises (SMES)

USAID/Zambia is supporting Small and Medium Enterprises (SMEs) through the Zambia Chamber of Small and Medium Business Associations (ZCSMBA). The chamber is promoting the development of SMEs; providing business entrepreneurship skills through training; facilitating market linkages; and access to micro finance. ZCSMBA mobilizes membership of small-scale entrepreneurs at district level through District Business Associations (DBAs), which are affiliated to the Chamber. Currently the Chamber has established DBAs in 55 of the 73 districts of Zambia. Mumbwa DBA: Formed in 1999, the Mumbwa district business association has grown its membership to a record 194 within a period of three years. As a result of business entrepreneurship training received from ZCSMBA, the DBA drew up an action plan, which benefited its members by promoting linkages and networking among the various stakeholders in the district.

The DBA was able to realize enough funds to start an in-house loan scheme, which benefited 20 entrepreneurs. With the confidence of running its own loan scheme and assistance from ZCSMBA, the DBA was able to secure micro financing from FINCA Zambia, an established lending organization for small-scale entrepreneurs. FINCA disbursed more than $ 17,000 to 272 beneficiaries. With the help of the association, FINCA is recovering the loans without any problems. Using this example, the association is planning to attract more lending institutions in the district. Joy Mwambazi is the proprietor of Carol Exclusive Fashions; a member of the Lusaka District Business Association (DBA) supported by the USAID funded ZCSMBA. Through technical assistance provided by the chamber, Joy has managed to grow her business from a one-woman show to over 60 workers engaged in fashion design. Her business has grown to a turnover of $450,000 per annum. Through market linkages facilitated by the business association, Joy is able to display her products at international trade fairs including the Florida Africado and South African SAITEX. She says, "The training and other business related technical assistance that I get from ZCSMBA enables me to focus on workable and profitable business strategy." Top of Page


Conservation Farming Helps Withstand Hunger Amidst Drought

Despite the drought situation, USAID/Zambia is promoting improved farming technologies such as conservation farming to raise crop yields amidst drought. Conservation farming technologies involve early land preparation; timely and early fertilizer application; early planting; crop residue cover and crop rotation. Cecelia Banda, a beneficiary of CLUSA's program for improved farming technologies, planted maize and soya on 0.5 hectares under conservation farming. She also had 0.25 hectares where she planted maize under conventional method tillage and harvested 350 Kg of maize (1.4 ton/ha). On the other hand, Grace managed to harvest 1200 kg (4.8 ton/ha) from the conservation farming, while most of the farmers around her area harvested an average of about 1.0 ton/ha of maize from traditional farming techniques. Asked to comment on the difference in crop yields, Cecilia Banda attributed her success to the non-negotiable principles in conservation farming. She says, "We have seen for ourselves that conservation farming provides much higher crop yields than traditional farming techniques. This year I will be able to feed my family despite the drought situation thanks to conservation farming." Top of Page

 

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