Outgrowers scheme is a contractual arrangement for a fixed term between a farmer and a firm, agreed verbally or in writing before production begins, which provides resources to the farmer and/or specifies one or more conditions of production.
Outgrowers schemes across Africa have not been without challenges. These issues range from; appropriate agricultural inputs supplies, farmers selection, access to finance to minimum guaranteed pricing that impeded the growth of such schemes in the past.
This scheme, though presented as a channel through which small holder farmers can engage with commercial entities and aggregators, however in some situation, have farmers and buyers reneging on the terms and conditions of the contracts
Our approach to outgrower scheme ensures all partners work together for a common good by working to provide;
• Farmer collectives-a community of farmers who are interested in participating in an outgrower scheme and know the benefit for participating
• Capacity training- farmers are trained in good agronomic practices (GAP) suitable for their crops,
• Access to finance– we are able to leverage our network of micro-finance and other financial institutions to provide access to credit for the farmers
• Input support-quality, affordable and timely inputs of fertilizer, seeds, Crop Protection products and tractors are accessible to participating farmers.
• Market linkage-providing small holder farmers with access to reliable market that also increases income for them
• Viability– this is a win-win for the farmer and the commercial buyer because they are all able to make profit
• Management– this ensures a smooth running of the program from pre-planting to harvest and storage and then to market
At Ikore, we are available to help with your sustainable sourcing strategy.