1. PROJECT TITLE: ENHANCING UPTAKE AND
SOCIO-ECONOMIC BENEFITS OF SHALLOW
GROUNDWATER IRRIGATION IN THE WHITE
VOLTA BASIN
WORKPACKAGE 2 -
IMPROVING PROFITABILITY
AND MARKET ACCESS
BY
SAA DITTOH, FOOD AND NUTRITION
SECURITY UNIT, UDS, TAMALE
15 TH JUNE 2012

2. INTRODUCTION (1/3)
Recent research in the White Volta
Basin and particularly in the
Atankwidi Catchment clearly
support expanded use of GW for
irrigation by smallholder farmers.
The expanded use is however only
useful if smallholder farmers can
get out of poverty through it.

3. INTRODUCTION (2/3)
For smallholders farmers to get out of
poverty two interlinked outcomes must
result from their production:
Production must be profitable and the
profit should be substantial (farmers
should attain reasonable cash security).
The produce should have a sustainable
market.
That means if the efficiency of GW use is
improved and farmers expand production
but make financial losses and/or cannot
sell their produce, we will be back to
square one.

4. OBJECTIVES OF WORKPACKAGE (WP) 2
to improve the understanding of
the economics of current and
potential crop enterprises, (and
thus recommend ways to improve
profitability) and
to explore interventions that help
address the marketing challenges
faced by shallow groundwater
irrigation practitioners (to ensure
sustainable profitability)

5. AREAS OF EMPHASIS OF WP 2 (1/2)
Research-into-use activities are to be
undertaken (i.e. action research) – Involves
practical issues on the ground
Will concentrate on practical solutions to socio-
economic and institutional barriers to improving
GW irrigated production by smallholder farmers.
Areas of concentration will include:
 Costs of production – Input availability and prices
including finance
 Participation (not involvement) of women
 Land use arrangements and tenure
 Production and price risks, including gluts and low prices
 Taking advantage of emerging markets
 Several others (to be pointed out today and later)

6. AREAS OF EMPHASIS OF WP 2 (2/2)
 WP 2 will address the following questions:
 Which irrigated production systems will result in
higher profitability, noting very well that irrigated
production is basically a commercial (business)
activity?
 What social, cultural, economic and institutional
factors hinder the achievement of higher profits in
GW irrigated production?
 Will identify and analyse market demand, market
size and competitiveness of various existing and
potential irrigated products.
 Will assess the marketing systems’ abilities to offer
sufficient incentives for shallow groundwater
irrigators.

7. PROFITABILITY AND POTENTIAL
With regards profitability and the potential for
improvement, WP 2 will undertake;
 Rigorous analysis of the economics of crops/crop mixes
as currently practiced by smallholder irrigators to identify
profitable irrigated farming systems,
 Analyses of the profitability of potential irrigated
systems, including various diversification options (to
determine new remunerative opportunities for farmers). In
particular the following will be considered: potential new
crops (e.g., indigenous leafy vegetables) and potential
other enterprises (e.g., crop-livestock and fisheries
integration – “Multifunctional use of irrigated water”)
 Crop and other enterprises scheduling for higher
profitability (e.g. Roy‟s “Three crops per year” – 300%
cropping intensity)

8. MARKET ACCESS
With respect to market access the WP 2
will:
Conduct a market assessment to determine:
 the types of crops currently available in the
market and consumer preferences for them,
seasonality of availability,
types of traders, (wholesaling, retailing etc.)
supply and marketing chains for inputs and
outputs currently produced by farmers.

9. EMERGING MARKETS AND IRRIGATED
PRODUCT VALUE CHAINS (1/2)
The increase in hotels, restaurants, fast food joints
etc in the fast growing urban centres are important
emerging markets that can be taken advantage of.
Critical analyses and continuous review of product
value chains will create markets for irrigated
produce.
All these will however stress on quality, constant
supply of required quantity and timely supply –
Those are the challenges for smallholder irrigators
that this research will develop models (strategies)
to address.

10. EMERGING MARKETS AND IRRIGATED
PRODUCT VALUE CHAINS (2/2)
FAO (2006) says “small scale private irrigation
(in Sub-Saharan Africa) is not organized
efficiently to supply markets and sustain growth”.
Also “there is little value-added processing” and
“spatial and value chain „friction‟” needs to be
overcome (which refers to high transportation
and marketing costs).
WP 2 will undertake critical value-chain analyses
for existing and potential irrigated commodities
to recommend some value-addition at various
sectors of the chains.

11. SIMPLE EXAMPLE OF IMPROVEMENTS OF
IRRIGATED PRODUCT VALUE CHAIN
• Availability and timely delivery
Inputs • Low prices
• Better quality
Raw
product • Able to deliver enough quantity
• Better packaging
Value
added • Timely delivery

12. THE VALUE CHAIN SYSTEM – RELEVANT
ACTORS ALONG VALUE CHAINS
Input Trans- Distribution, Con-
Production
provision formation sales sumption
Input Primary Logistic Final Con-
providers producers centres, Traders sumers
Industry
Groups, Associations, Organisations
BDS providers, NGOs, Development Partners
Technical Agencies, Research, Extension
Local Government, Providers of Utilities / Infrastructure
National Government (Line Ministries) & Public Administration

13. THE MESO LEVEL
 Smallholder farmers have to be supported in various
ways to be effective in value chains hence the
importance of the meso and macro level activities in
value chains.
 Need for effective FBOs for input (including credit)
procurement, product marketing, access to research
information and extension etc. (with or without NGOs
and GOs).
 Strong FBOs ensure effective bargaining power.
 Capacity building of farmers and farmer organizations
by NGOs, GOs and training institutions in various
skills including financial and organizational
management is important to instill business and
management culture.

14. THE MACRO LEVEL
 World Bank (2007) says “efficient markets require good
governance and public policy –
infrastructure, institutions, and services that provide
market information, establish grades and
standards, manage risks and enforce contracts” thus the
macro level is very important.
 There is need for strong lobbies for social and economic
infrastructure to enhance
production, productivity, marketing and profitability.
 Meso and macro level requirements will be incorporated
in the models to be developed to enhance the uptake
and socio-economic benefits of shallow GW irrigation in
the White Volta Basin

15. Thank you for your
attention and God
bless you!