Zimbabwe Agricultural Income and Employment Development (Zim-AIED) Quarterly Report #2, 2012

Zim-AIED is providing technical assistance to improve food security and increase household incomes of small-scale farmers throughout Zimbabwe, covering all agro-ecological regions (Regions 1-V). It is generating new income streams from employment created in the wider agricultural sector and contributing to improved food security of all beneficiary households. Beneficiaries are earning new income from both surplus production of food crops grown for home consumption and from production and marketing of higher-value cash crops under contract. Zim-AIED is commercializing small-scale growers on communal and non-contested land by linking producers to local, national, regional, and international buyers, providing access to credit, raising efficiencies in production systems for an improved combination of cash and food crops, and training farmers to adopt good business practices. The program is building demand for a range of Zimbabwean crops and products by training growers on productivity, quality, continuity, and cost-competitiveness. It is also providing specialized technical support for the production of food crops to increase food availability on a sustainable basis in areas and communities most vulnerable to food insecurity. Significant results for the quarterly period (January-March 2012) include activities directed at increasing the number of companies purchasing products from smallholders, increasing the availability and disbursement of working capital to rural-based agritraders serving farmers on communal land, increasing production of maize and other food crops, raising smallholder earnings from cash crops, and actively supporting agribusiness investors in rural areas. A total of 19,379 rural households received various types of technical assistance this quarter to raise productivity, access new markets, obtain credit, and increase incomes and employment. The total sales recorded from program beneficiaries were valued at $2.39 million for this quarter, bringing the total for the half-year to $5.34 million. The program established reliable market linkages with buyers, including many rural traders borrowing through AgriTrade that will purchase produce worth more than $17 million from program beneficiaries during the upcoming harvest season. Twenty-four percent of Zim-AIED beneficiaries are producing crops under contract this year to specific buyers of maize, soya bean, sugar bean, groundnut, paprika, banana, and other crops. Zim-AIED's revolving credit facility (AgriTrade) grew during the reporting period with an additional 93 loans being disbursed worth $166,120. To date, AgriTrade has lent to 769 borrowers and 524 of these were active borrowers at the end of March. Cattle (51%), maize (23%), inputs (11%), and potato (6%) were the main products purchased. Direct credit to farmers increased through commercial loans, buyer advances, and recoverable grants. Direct commercialization support was provided to eight irrigation schemes this quarter, offering technical assistance to 2,343 plot holders on water management, market planning, and new crop production under contract to specific buyers. The total of grants approved and under implementation is $1.84 million, with 92 percent going directly to support smallholder production and marketing. The program implemented a gender mainstreaming policy whereby men, women, young people, and disadvantaged groups were specifically considered in the planning of all program interventions. As a result, 56 percent of all beneficiaries receiving program assistance were women. After 18 months of implementation, Zim-AIED is on course to meet its main objectives and targets. An assessment of progress towards meeting the 2012 targets set for Zim-AIED's 12 Feed the Future indicators concluded that most should be met and some will be exceeded. The primary objective of the Zim-AIED program is to improve food security for 180,000 Zimbabwean rural families by increasing household incomes from agriculture and increasing food production among vulnerable but commercially viable farmers. This goal will be reached through the achievement of three intermediate results: increased agricultural production, increased household incomes, and improved food security. The program is achieving these results through a range of activities, including technical assistance, market linkages, access to credit, and training for farmers. Zim-AIED is working closely with small-, medium-, and large-scale buyers to raise demand and increase competition for smallholder-grown crops and products. The program is also providing specialized technical support for the production of food crops to increase food availability on a sustainable basis in areas and communities most vulnerable to food insecurity. The program's revolving credit facility (AgriTrade) has lent to 769 borrowers and 524 of these were active borrowers at the end of March, with cattle (51%), maize (23%), inputs (11%), and potato (6%) being the main products purchased. The program's gender mainstreaming policy has resulted in 56 percent of all beneficiaries receiving program assistance being women. The program is also providing direct commercialization support to eight irrigation schemes, offering technical assistance to 2,343 plot holders on water management, market planning, and new crop production under contract to specific buyers. The program's total