Stories
Peanut producers from the Naihava Association, a founding member of IKURU from the district of Mogovolas, Nampula Province, standing at their farm.
Photograph courtesy of Martin Mason.
THE RIGHT ORGANIZATION FINDING THE RIGHT MARKET
Small Farmers In Northern Mozambique Export Products To Europe
Most of Mozambique’s peanuts are grown in the north of the country. Traditionally these peanuts were sold by producers to middlemen for resale in the capital city of Maputo, 1.200 miles to the south. Although the Maputo market has generally been good, it tends to be volatile, and when the market is down, farmers don’t have an alternative.
In 2006, IKURU, began exporting peanuts to Fair Trade and Organic markets in the UK making this the first time smallholders in Northern Mozambique have exported their products directly to Europe.
During its first year of operation in 2003, IKURU marketed 367 Mtons of various agriculture products. In 2004 the amount traded increased to 563 Mtons and in 2005, 610 Mtons. As of December 2006, IKURU had purchased 1,600 Mtons of farmer members’ produce.
IKURU is the recipient of a Global Development Alliance grant from USAID and receives technical assistance from the Cooperative League of USA and other Alliance partners in multiple areas: establishing and capitalizing the producer-owned trading company; designing and installing needed management and record-keeping systems; obtaining Fair Trade certification; gaining experience in local, regional and export trading; training board directors; and strengthening the existing links between IKURU and its farmer members.
Using a product chain approach: IKURU
The situation
Nampula is a fertile area of Mozambique where farmers grow maize, cashew, peanuts, beans, soy and more traditional crops, but have limited access to markets. The country is still recovering from the civil war that destroyed much of the infrastructure, and halted economic development. Until recently few farmers were organised, and had few entrepreneurial skills, and perceived cooperatives as slow and ineffective. They were therefore dependent on local traders who determined the prices for their produce.
The strategy
In 1995 CLUSA, an American NGO, started to organise farmers into producer organisations cooperating in so-called forums, with the aim of improving motivation, providing business training and organising collective trading. In 2003, IKURU was founded as a farmer-owned trading company, financed through shares issued to Oxfam Novib (45%), GAPI, a local NGO (45%) and the forums (10%). Since then more forums have joined and have become shareholders in the company. IKURU provides strategic product marketing and has found national and international buyers, and in 2006 received Fair Trade certification for its cashews, peanuts and sesame. IKURU also provides transport, storage and primary processing facilities. The company is now making a profit and has extended its services to include the provision of seeds and fertiliser.
The results
In 2006 IKURU was serving 10,527 farmers in 283 associations in 21 forums. With greater efficiency and value added, sales have increased, as have the farmers’ incomes. Perhaps most important, the farmers now have access to market information and to capital, and have more influence in the production chain. They control their own trading company and are no longer dependent on private traders.
