SMEs as accelerators of smallholder farmers’ activity
Agrifood SMEs face countless challenges and yet they are essential to boost the activity of smallholder farmers.
In the context of the SSNUP programme, ADA is launching a series of studies which sheds light on the key role SMEs play in contributing to the development of smallholder farmers. The first series targets three agri-SMEs based in Senegal operating in the rice, millet and groundnut value chains.
A fragmented supply base, climate vulnerability and price volatility are just some of the obstacles faced by SMEs in crop value chains. How to overcome them is a question that is on the mind of every small and medium-sized entrepreneur. SSNUP technical assistance projects enabled the three Senegalese SMEs to untie the knots in the somewhat entangled agricultural value chain, prepare the right strategies and contribute to improve the productivity and resilience of smallholder farmers.
In practice, SMEs offer farmers a package of services that ensures a stable supply base for SMEs while also enabling the growth of the farmers’ activities through long-term relationships. This strategy was implemented by La Sénégalaise des Filières Alimentaires (SFA) - a paddy rice processor in Senegal – in a project supported by Fondation Grameen Crédit Agricole. SFA combined access to credit to facilitate the purchase of inputs, such as certified seeds and fertilisers, with technical training to boost smallholder farmers’ productivity and access to markets.
In the coming weeks, SSNUP will present two other studies on SMEs in Senegal: Afrikamart and Kumba.