Preliminary Results on Smallholder Irrigation Technologies International Water Management Institute (IWMI)

Preliminary Results on Smallholder Irrigation Technologies

International Water Management Institute (IWMI)

Background Information • Objective: to Identify factors that influenced the adoption of

WLTs (particularly motor pumps) by smallholder farmers

• Case studies: Amhara, Oromia, SNNP and Tigray.

• Data collected from 800 (200 from each Region) randomly selected farm households.

Why Smallholder Irrigation Technologies?

1. Initiated and financed by smallholders themselves

2. Owned and individually or by small informal groups

3. Can irrigate small plots that can optimally managed by the smallholder

4. Need relatively less capital

5. Small farmers get opportunity to produce dry season cash crops for market

6. Can be used in diversified water sources (rivers, lakes, reservoirs, shallow wells, ponds), Can be Integrated with Watershed Management

7. Offer Opportunity for female farmers to support their family

8. In many African countries the smallholder private irrigation is more important than public irrigation in terms of number of farmers involved and the value of the production.

Type – technology No. of farmers

Area under irrigation

Investment costs USD per ha

Main crop

Public irrigation schemes

11,000 7,185 ha 10,000 – 15,000 Rice

Small reservoirs 25,000 6,000 ha 6,000 – 15,000 Rice/vegetables

Motorized pumps 160,000 120,000 ha 500-1000 Vegetables

Buckets, watering cans

335,000 66,000 ha <25 Vegetables

Treadle pumps < 100 < 20 ha 500 Vegetables

9. Provide additional income when farmers need it most (some cross-country examples)•Burkina Faso,

– 94% of vegetable production is sold at local markets, generating revenue of US$350 per 0.1 hectare. Vegetable production increased in years when cereal yields were low (DSA 2005).

•Ethiopia, – On average, generates revenue of 1586 dollars/ha – High labor employment/ha– Lead to input intensification

•Ghana, – smallholder irrigation – primarily dry season vegetable cultivation - adds

between USD175 to 840 to household income.

10. Untapped potential exists (FAO Estimates) ???

Some facts on the Ground

Type of Technology

Amhara Tigray

supply on Stock % supply on Stock %

Geo-mebrien 55163 39500 72 NA NA NA

Treadle Pump 27829 22837 82 67278 47094 70

Drip 27186 15571 57 67508 61818 92

Motor Pump 21191 13568 64 13902 4227 30

Rope & Washer 1927 1640 85 105 0 0

Source: Amhara & Tigray Bureaus of Agriculture (2010)

Motor Pump

0500

100015002000250030003500400045005000

2004 2005 2006 2007 2008 2009 2010 2011

MP Supply

MP Distributed

Treadle Pump

0

2000

4000

6000

8000

10000

12000

14000

16000

2004 2005 2006 2007 2008 2009 2010 2011

TP Supply

TP Distributed

Drip Systems

0

2000

4000

6000

8000

10000

12000

14000

2004 2005 2006 2007 2008 2009 2010 2011

Drip Supply

Drip Distributed

Trend of Performance

0

0.2

0.4

0.6

0.8

1

1.2

2004 2005 2006 2007 2008 2009 2010 2011

Trend MP

Trend TP

Trend drip

Region Household is aware of motor pump

Household has adopt motor pump

yes no % yes no %

Amhara 155 45 77.5 61 139 30.5

Oromia 175 25 87.75 59 141 29.5

SNNP 163 37 81.5 55 145 27.5

Tigray 168 32 84 54 146 27

Are Smallholders Aware about Technologies?

Cost of investment

Cost Component Average

Average CIF Value of water pump (Birr) 4668

Average tax per unit of water pump (Birr) 1832

Average purchase price/water pump (CIF+Tax) (Birr) 6500

Tax contributes 36%

Customs duty 10%

Value Added tax 15%

Sur tax 8%

Withhold tax 3%

Average Selling Price (Regional Bureaus of Water Resources) 8093.37

Cost of irrigation infrastructure, accessories and maintenance (Farmers’ response)

Type of infrastructure Average cost (Birr) Maximum cost (Birr)

Shallow well 4021.519 15000

Dug-out 957.9753 9450

Pond 1949.625 5000

Type of technology Average cost of

Accessories Maintenance (previous Year)

Maintenance (since Purchased)

Petrol Pump 1872 953 1420

Diesel Pump 1971 1792 2527

Challenges Equity•Pump-owners: generally are male, better-off farmers (Gender imbalance).

•High upfront investment costs, absence of financing tools, and limited access to investment and marketing information.

•Limited access to Credit

Resource sustainability•Many small dispersed points of water extraction.

•Risks of conflicts and environmental problems

Efficiency•Poorly developed equipment supply chain, low quality pumps, limited choice, high taxes and transaction costs.

•Lack of information and knowledge on irrigation, seeds, marketing and equipment.• •Lack of access to infrastructure; output markets are dominated by middlemen.

•Frequent breakdown of pumps and high maintenance cost

•Weak input & Spare-part supply

•Weak maintenance service

•Weak extension service

18

Business Model: Making Smallholder Irrigation Technologies Accessible/Affordable

18

Potential Outcomes:Affordability of irrigation technologiesMarket efficiency and better income to farmersEmployment opportunityTechnology transfer

Improve supply of Agricultural

Inputs (fertilizer, seed, chemical,

access to credit, etc.)

1

Improve Technical support Service

(technology supply chain, spare part,

maintenance, fuel &

lubricants, extension

service

2

Improve producers’ access to market

3

Address Problems in Output Market and Post-harvest

Management

Address Problems in Input Supply Chan

19

Improve the value chain

Enhance knowledge flow

Ensure technology access for all

Rethink energy and AWM

Adopt Watershed management

Solution pathways to enhance motor pump utilization by smallholders

54321

Research, Donor, government & private sector

Research, Donor, government & private sector

Activity 2aReduce import barriers and taxes

Activity 2bDevelop registry of dealers

Activity 2cProvide credit to dealers to enlarge their stock

Activity 1aEmpower farmers with information to make informed decisions on technology choice

Activity 1bEnsure farmers’ access to horticulture and marketing information

Activity 3bPilot irrigation service providers concept

Activity 4aStimulate alternative energy sources

Activity 5aAssess possible environmental impacts at multiple scales

Activity 3aExplore and pilot financial instruments

Activity 5bRecognize and address resource conflicts

Activity 1cImprove market infrastructure & address middlemen monopoly

Activity 4bConsider AWM in electrification plans and policies

Investment in this sector can benefit millions of poor men and women through additional income and improved food security and nutrition.

Activity 5cRecognize the importance of grassroots participation

Thank you!