Feed the Future Mozambique Agricultural Innovations Activity (FTF Inova) Pigeon Pea Strategy Summary

The initiative aims to increase yields and productivity to meet growing global demand for raw, whole pigeon pea. A lesser focus is on linking buyers/processors to higher-value niche markets for processed pigeon pea in Europe and the Middle East. Mozambique is the world's fifth largest producer and third largest exporter of pigeon pea, primarily competing with Tanzania and Malawi due to high demand in India. Indian demand is for raw, whole pigeon pea, with almost no premium for processed/split product. Yields are estimated at 40% of potential due to limited adoption of inputs, with only 10% of smallholder farmers using improved seed and virtually none using fertilizer or crop protection products. To meet rising demand, India has entered into an agreement with Mozambique to promote the expansion and export of pigeon pea through technical and financial assistance, and establishment of purchase guarantees. However, the Indian Parliament has imposed limits on global imports of pigeon pea to protect domestic interests, casting uncertainty on whether the agreement will be honored. Despite this, FTF Inova assumes that global pigeon pea demand will continue to grow in the medium to long term, including demand in India given domestic production and consumption trends. The initiative will work to address two main constraints: shifting prevailing buying practices that do not allow farmers to predict demand for the next year, and increasing marketing of products and services to smallholder farmers in the pigeon pea agro-inputs industry. To achieve these objectives, FTF Inova will focus on increasing competition among mid-level traders to stimulate stronger relationships with smallholder farmers and increases in productivity. The initiative will also work with input supply market actors to improve the flow of information related to market conditions and to improved agri-inputs. This will require smallholder farmers to recognize a clear opportunity for increased income by investing in the use of inputs and upgrading post-harvest practices. Traders/buyers will need to collaborate with input suppliers to inform smallholder farmers of the availability and benefits of inputs, and to incentivize investment by offering purchase arrangements that are more favorable to smallholder farmers. The initiative will test the incentives of other market participants, such as Olam, to see if increasing competition for pigeon pea can motivate buyers/traders to invest in win-win relationships with farmers. By addressing these constraints and entry points, FTF Inova aims to improve the livelihoods of smallholder farmers and increase the competitiveness of the pigeon pea value chain in Mozambique.