Lecofruit in Madagascar

Quality for the local market as well

Overview

Particularly in Asia, but also in Sub-Sahara Africa and Latin America, the developing countries and emerging economies have not only scored significantly higher economic growth rates. Consumer patterns are also changing in these economically dynamic countries as income among the urban population grows. Instead of staple food (corn, rice, maize, potatoes, millet, etc.), higher-priced food (fish, meat, fruit, vegetables, coffee, dairy products, etc.) is increasingly on the menu. Chain stores are spreading in these countries to satisfy urban demand, and at the same time, they are seeking local suppliers of agricultural produce who can maintain a constant level of quantity and quality.

Background

Over Around 30 percent of Madagascar’s national economy relies on the agriculture sector, which depends largely on small farmers. However, they hardly benefit from the profits of the exportation to international markets. Nonetheless, the farmers’ productivity remains low, mostly due to the scarce water supplies in the region and the inefficient irrigation systems in place. This makes the farmers solely dependent on the unpredictable rainy season.

Objectives

Creating new urban-rural business cycles in the agricultural sector for the benefit of the entire region.

Activities

Already since 1989, Lecofruit has been cooperating with what are now approximately 11,000 smallholders with an average of roughly 1ha of fields in the Madagascan Highlands who grow beans and peas for exporting for Lecofruit on a contract farming basis. Lecofruit has the reputation of applying stricter quality criteria, i.e. of also rejecting products that do not fulfil these criteria, while also paying higher producer prices for good quality. Supported by GIZ, Lecofruit is currently in the process of expanding and diversifying production and making it more efficient and less dependent on weather conditions through the introduction of drip irrigation systems. Lecofruit has more than 300 agricultural consultants who inform the smallholders about new production methods and train them in their application and also provide new production inputs. Lecofruit is now also supplying vegetables to national supermarkets. Here, it is now transferring standards and quality management systems originally conceived for export to production for the local markets as well.

Effects

With the development of local and regional value chains, the greatest impacts can be achieved not only regarding poverty reduction but also in terms of food security and food safety. After all, for example, 80% of the food consumed in Africa is grown by smallholders, mainly women. At the same time, the urban middle classes benefit from an improved range of fresh fruit and vegetables.

Conclusions

Further Information

Factsheet: More income for small farmers in Madagascar
GIZ, 2014 [pdf, 0.17 mb, 2 pp]

GIZ country overview
www.giz.de/de/weltweit/322.html

Lecofruit website
www.lecofruit.mg

Published: 04/06/2014

Contact

Christoph Feldkötter
Country Director
GIZ-Office Madagascar

giz-madagaskar(at)giz.de 

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Categories: Local economic development Green Urban Economy SME promotion
Regions: Africa Madagascar

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