Expanded Agribusiness and Trade Promotion (E-ATP) Business Model NAFASO: Le Modèle Économique de Contract Farming

The project focuses on three value chains (rice, millet/sorghum, poultry) along transportation corridors connecting production zones to consumption markets in West Africa. One of the actions of the rice value chain is the development and promotion of business models. A business model is an innovative and successful economic model that serves as an example or inspiration to other operators in the same sector. The document presents the "contract farming" model of the Neema Agricole du Burkina Faso (NAFASO) seed company. The NAFASO economic model is characterized by: 1. The establishment of a network of seed multipliers (outgrowers) and the company's own production. 2. The development of a seed distribution chain. 3. The professionalism of the company and the efficiency of its services. The NAFASO company is a seed company created in 2008 with its headquarters in Bobo Dioulasso. Its global objective is to promote the production, commercialization, and dissemination of improved seed varieties (certified) in Burkina Faso and the sub-region. Its specific objectives include: 1. Producing, packaging, and marketing agricultural seeds. 2. Providing agricultural services: technical advice, training on technical itineraries, and supervision of producers (control visits and follow-up of the respect of technical itineraries). 3. Representing and distributing agricultural products and inputs. NAFASO is organized into: 1. A general management. 2. A technical direction that manages 23 seed producers and two cooperatives located on irrigated plains for seed production. 3. A commercial and marketing direction that handles 14 distributors organized in a distribution network for the sale of seeds in their coverage area. 4. An accounting department. 5. A secretariat. The main activities of NAFASO are: 1. Producing certified seeds of improved varieties of cereals and legumes. 2. Marketing and disseminating cereal seeds and forest seeds at an affordable cost for widespread use in agriculture. 3. Strengthening the capacities of 23 producers through the transfer of technologies. 4. Sensitizing producers on the importance of improved seed varieties in improving yields. 5. Producing base seeds of improved cereal varieties under the supervision of INERA. NAFASO collaborates with the Institute of Environment and Agricultural Research (INERA), the National Seed Service, technical services (agriculture, livestock, and environment of the concerned zones), producers and producer organizations, and development projects and financial institutions (AGRA, AfricaRice, FAO, BIB). The main improved seed varieties produced by NAFASO are: 1. Rice: FKR (14, 19), NERICA (60N, 62N) 2. Maize: SR 21, Espoir, Masongo, FBC6, Barka, Wari, KPJ, KPB, and hybrids 3. Cowpea: KVX (61-1, 396-4-5-2D) 4. Soybean, sesame, sorghum NAFASO also distributes fertilizers (NPK, urea, Burkina phosphate) and composts on a contractual basis with seed multipliers. The evolution of seed production over the past four years is as follows: Table N°1: Evolution of seed production from 2008 to 2011 (in tonnes) | Variety | 2008 | 2009 | 2010 | 2011 (in progress) | Total 2008-2011 | | --- | --- | --- | --- | --- | --- | | Maize OPV | 198 | 223 | 650 | 700 | 1771 | | Maize hybrid | 0 | 16 | 56 | 30 | 102 | | Sub-total maize | 198 | 239 | 706 | 730 | 1873 | | Certified rice R1 | 25 | 61.5 | 200 | 500 | 786.5 | | Base rice seeds (INERA collaboration) | 0 | 2.3 | 60 | 15 | 77.3 | | Cowpea | 3 | 11.2 | 40 | 30 | 84.2 | | Sorghum | 3 | 0.8 | 6 | 60 | 69.8 | | Soybean | 0 | 5.5 | 15 | 10 | 30.5 | | Sesame | 5 | 0 | 3 | 25 | 33 | | Total | 432 |