Preliminary Results on Smallholder Irrigation Technologies

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Preliminary Results on Smallholder Irrigation
Technologies International Water Management
Institute (IWMI)
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Background Information

• Objective to Identify factors that influenced
  the adoption of WLTs (particularly motor pumps)
  by smallholder farmers
• Case studies Amhara, Oromia, SNNP and Tigray.
• Data collected from 800 (200 from each Region)
  randomly selected farm households.

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• Why Smallholder Irrigation Technologies?

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• Initiated and financed by smallholders themselves
• Owned and individually or by small informal
  groups
• Can irrigate small plots that can optimally
  managed by the smallholder
• Need relatively less capital

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5. Small farmers get opportunity to produce dry
season cash crops for market
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6. Can be used in diversified water sources
(rivers, lakes, reservoirs, shallow wells,
ponds), Can be Integrated with Watershed
Management
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• 7. Offer Opportunity for female farmers to
  support their family

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• 8. In many African countries the smallholder
  private irrigation is more important than public
  irrigation in terms of number of farmers involved
  and the value of the production.

Type technology No. of farmers Area under irrigation Investment costs USD per ha Main crop
Public irrigation schemes 11,000 7,185 ha 10,000 15,000 Rice
Small reservoirs 25,000 6,000 ha 6,000 15,000 Rice/vegetables
Motorized pumps 160,000 120,000 ha 500-1000 Vegetables
Buckets, watering cans 335,000 66,000 ha lt25 Vegetables
Treadle pumps lt 100 lt 20 ha 500 Vegetables
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• 9. Provide additional income when farmers need it
  most (some cross-country examples)
• Burkina Faso,
• 94 of vegetable production is sold at local
  markets, generating revenue of US350 per 0.1
  hectare. Vegetable production increased in years
  when cereal yields were low (DSA 2005).
• Ethiopia,
• On average, generates revenue of 1586 dollars/ha
• High labor employment/ha
• Lead to input intensification
• Ghana,
• smallholder irrigation primarily dry season
  vegetable cultivation - adds between USD175 to
  840 to household income.

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10. Untapped potential exists (FAO Estimates) ???
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Some facts on the Ground
Type of Technology Amhara Amhara Amhara Tigray Tigray Tigray
Type of Technology supply on Stock supply on Stock
Geo-mebrien 55163 39500 72 NA NA NA
Treadle Pump 27829 22837 82 67278 47094 70
Drip 27186 15571 57 67508 61818 92
Motor Pump 21191 13568 64 13902 4227 30
Rope Washer 1927 1640 85 105 0 0
Source Amhara Tigray Bureaus of Agriculture
(2010)
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• Are Smallholders Aware about Technologies?

Region  Household is aware of motor pump  Household is aware of motor pump  Household is aware of motor pump Household has adopt motor pump Household has adopt motor pump Household has adopt motor pump
yes no yes no
Amhara 155 45 77.5 61 139 30.5
Oromia 175 25 87.75 59 141 29.5
SNNP 163 37 81.5 55 145 27.5
Tigray 168 32 84 54 146 27
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Cost of investment
Cost Component Average
Average CIF Value of water pump (Birr) 4668
Average tax per unit of water pump (Birr) 1832
Average purchase price/water pump (CIFTax) (Birr) 6500
Tax contributes 36
Customs duty 10
Value Added tax 15
Sur tax 8
Withhold tax 3
Average Selling Price (Regional Bureaus of Water Resources) 8093.37
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Cost of irrigation infrastructure, accessories
and maintenance (Farmers response)
Type of infrastructure Average cost (Birr) Maximum cost (Birr)
Shallow well 4021.519 15000
Dug-out 957.9753 9450
Pond 1949.625 5000
Type of technology Average cost of Average cost of Average cost of
Type of technology Accessories Maintenance (previous Year) Maintenance (since Purchased)
Petrol Pump 1872 953 1420
Diesel Pump 1971 1792 2527
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Challenges

• Equity
• Pump-owners generally are male, better-off
  farmers (Gender imbalance).
• High upfront investment costs, absence of
  financing tools, and limited access to investment
  and marketing information.
• Limited access to Credit
• Resource sustainability
• Many small dispersed points of water extraction.
• Risks of conflicts and environmental problems

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• Efficiency
• Poorly developed equipment supply chain, low
  quality pumps, limited choice, high taxes and
  transaction costs.
• Lack of information and knowledge on irrigation,
  seeds, marketing and equipment.
• Lack of access to infrastructure output markets
  are dominated by middlemen.
• Frequent breakdown of pumps and high maintenance
  cost
• Weak input Spare-part supply
• Weak maintenance service
• Weak extension service

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Business Model Making Smallholder Irrigation
Technologies Accessible/Affordable
Address Problems in Input Supply Chan

• Potential Outcomes
• Affordability of irrigation technologies
• Market efficiency and better income to farmers
• Employment opportunity
• Technology transfer

Address Problems in Output Market and
Post-harvest Management
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Research, Donor, government private sector
Solution pathways to enhance motor pump
utilization by smallholders
Improve the value chain
Rethink energy and AWM
Adopt Watershed management
Enhance knowledge flow
Ensure technology access for all
Activity 1a Empower farmers with information to
make informed decisions on technology choice
Activity 3a Explore and pilot financial
instruments
Activity 2a Reduce import barriers and taxes
Activity 4a Stimulate alternative energy sources
Activity 5a Assess possible environmental impacts
at multiple scales
Activity 2b Develop registry of dealers
Activity 3b Pilot irrigation service providers
concept
Activity 4b Consider AWM in electrification plans
and policies
Activity 5b Recognize and address resource
conflicts
Activity 1b Ensure farmers access to
horticulture and marketing information
Activity 2c Provide credit to dealers to enlarge
their stock
Activity 5c Recognize the importance of
grassroots participation
Activity 1c Improve market infrastructure
address middlemen monopoly
Investment in this sector can benefit millions of
poor men and women through additional income and
improved food security and nutrition.
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• Thank you!