Value Chain Analysis Final Report

Without being linked into markets small holder producers are condemned to produce only for
subsistence — better markets can lift them out of poverty. But making this leap requires more
knowledge, and many public and private sector actors along the value chain can help supply this crucial
ingredient. The public sector through training and extension will sensitize farmers with information
about the market e.g. quality requirements and standards, market price information, etc while the
private actors will provide a direct market for sorghum as well as other support functions such as
credit financing.

There are sorghum processing establishments within the study areas of Southern Somalia.

Processor/Company Description

Blue Flag, in Blue Flag is a registered company, with very large underground and above ground
Mogadishu modern facilities with a capacity of storing and processing 22 tons/year of
sorghum grains. The processing facilities consist of grain elevators, seed sorter,
grinders and packaging machine. In addition, the company has a land of about
1000 ha in the Lower Shebelle region and intends to produce its own grain in
addition to procuring from the local market. The company also intends to sell the
by-products to the livestock sector. One of the limitations is the shortage and high
cost of grain in the market due to the recent droughts e.g. 2017. As a result, Blue
Flag is planning to supplement its sorghum grain purchase from outside the
country.

Filsan, Inc. in Filsan is a registered private company in Somalia dealing with various agricultural
Mogadishu related activities. It’s a commercial entity that works closely with the Somali
Agriculture Technical Group to make available technologies that have been
identified by SATG and others. Filsan Inc is actively engaged in basic and commercial
seed production of various crop species including sorghum, legumes (cowpeas and
mung beans) and sesame. The company started with the production of quality seed
of various crop species and selling them to various stakeholders including farmers.
The seed was initially produced and cleaned using traditional methods. In the early
2017 the company purchased a seed cleaner from Fowler-Westrup based in India to
produce better quality seed. The machine has the capacity to clean 500kg/hour.
Filsan, through a credit scheme (in form of tractor hours, seed, fertilizer and
pesticide) is working with six commercial farmers to produce seed of various crop
species. In addition to seed, the company is developing new and innovative business
interventions in tissue culture technology, input supply, mechanization and
establishment of soil analysis laboratory.

Table 11: Sorghum Processors

Market Map
During planting, sorghum seeds could be obtained from several sources. Farmers may use grain seeds
from their previous harvest. Seeds could also be gotten from the local agro dealers while some millers
and development/humanitarian organizations do distribute grain planting seed.

Once harvested, dried, threshed and winnowed the grain may be used for household consumption or
sold to buyers who could be millers themselves or middlemen who supply millers.

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Fig 8: Sorghum Market map

Consumption Domestic markets (restaurants, hospitals, schools, etc. Cross border markets

Value addition, Large-scale traders/Millers
Marketing & Middlemen/Brokers
trading of Farmer Aggregation points
sorghum Sorghum farmers/producers

Production level

Inputs Farm Input suppliers (NGOs, millers, Agro dealers, etc.)

Sorghum Value chain market Map

Price Analysis
At the time of the study, cereal prices were significantly higher in areas with limited local production
and in conflict-affected areas where illicit taxation is prevalent. In Beled-Haawo Gedo region, sorghum
was Somali Shilling (SOS) 13,000/kg in September, which is 225 percent higher than neighbouring
Baidoa, where sorghum was only SOS 4,000/kg.

Prices fluctuate heavily also between cultivating and harvesting time. The price of sorghum fluctuates
heavily in line with the planting and harvesting seasons. Sorghum is typically planted between April-
June and October-December, during which times the price of sorghum increases. When the sorghum
crops are harvested between August-September and January-March, the prices drop. Prices vary by
as much as USD 0.11/kg, which is 69% of the average annual price of USD 0.16. The cause is simply a
matter of supply – during cultivation periods there is little sorghum available and so the prices are
high. Once the harvests are completed, the market is flooded, and the prices drop. As supply fluctuates
from glut to dearth, so too do the prices. Grain silos at community and commercial levels could help
to distribute the supply of sorghum throughout the year and reduce price volatility.

In Bay the price of sorghum fluctuates from $0.5/kg to less than $0.1/kg depending on the supply
particularly relief food. In the Lower Shebelle region, labour-to-cereals terms of trade (ToT) increased
from June to September 2018, driven by below-average cereal prices and higher agricultural labour
wages during Gu main and off-season production and associated marketing, processing, and
transportation activities. As a result, household purchasing power was above average. In Baidoa (Bay
region), the daily labour wage could buy 25 kg of red sorghum in September 2018, nearly double from
13 kg in 2017. In Afgooye (Lower Shabelle region), the daily labour wage could buy 29 kg of white
maize in September 2018, up from 18 kg the previous year. These amounts are enough to feed an
average family of seven for 10 days.

Value Chain Efficiency
For cereals, investments in improved flood control, irrigation and water catchment infrastructure and
improved farm management practices are needed to raise yields threefold or even fourfold, double

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the land under irrigation, and expand the land under rain fed cultivation by even more. The public
sector should aggressively promote better postharvest and dry storage facilities and techniques that
would provide a reserve to sell when prices are favourable, ensure better grain quality, and reduce
exposure to dangerous aflatoxins and the size of postharvest losses (estimated to be in the 20–30
percent range).

Poor farmer organization denies farmers the advantages that come with economies of scale. Out of
the farmers interviewed during data collection, only 3 (table 13) of the respondents reported to be
members to an association representing a mere 3.6% while a whopping 96.4% are not; the major
reason being that the associations don’t exist, where as 15.3 % (table14) of the participants said they
have no knowledge of the existence of such associations if at all they exist. From this data, the
magnitude of farmer fragmentation in the three regions of study is significantly huge.

Table 12: membership to farmer associations Cumulative
Frequency Percent Valid Percent Percent
96.4
Valid no 82 96.4 96.4 100.0
Yes 3 3.6 3.6
Total 85 100 100

Table 13: Reasons for the Poor farmer organization according to interviewees

Frequency Percent Valid Percent Cumulative

Percent

They don’t exist 72 84.7 84.7 84.7

Valid No knowledge of them 13 15.3 15.3 100.0

Total 85 100.0 100.0

Only 3 of the participants are members to associations while a whopping 96.4% are not; the major reason being that the associations don’t

exist although 15.3 % of the participants said they have no knowledge of their existence.

The level of processing of crop produce is limited with post-harvest losses estimated at 30-50% of the
production resulting from poor post-harvest handling, pest and disease infestation, inadequate and
poor storage facilities (FEWSNET, 2004). Several other factors constraining the sub-sector include lack
of organization of Value Chain actors at various levels of the chain.

Quick win opportunities
The mobilization and organization of farmers into formidable groups or associations for easier
acquisition of farm inputs, training, bulking and collective marketing.

To improve sorghum crop yields through basic and improved cultivation techniques, there is need to
provide basic skills training in sorghum cultivation techniques through extension services provision.
The continued lack of skilled and experienced labour leaves many producers frustrated at a lack of
skilled labour. SomRep or other development partners should engage agriculture experts to identify
specific best-practice techniques that can be transferred to potential farm labourers and farmers

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through training programmes. The training should cover key skills in land preparation, planting, and
harvesting. In addition to traditional skills training, there may be new or improved techniques in the
sorghum sector that could help increase levels of production.

Again, SomRep should engage an agriculture expert to identify exactly which techniques could
leverage benefits in sorghum cultivation. One area that should be covered by extension services is
seed selection. Extension services could introduce producers to a wider range of seed varieties better
suited to their location. Long-stem sorghum varieties are better suited to fodder production and are
more resilient to irregular rainfall patterns than shorter-stem varieties that produce higher grain
yields. Somalia’s large livestock sector certainly has the capacity to absorb increased fodder
production. Extension services could therefore help to diversify the range of sorghum varieties that
are grown and connect farmers to different types of consumer. This could also help to alleviate over-
supply during harvest seasons as producers would have access to a broader range of potential buyers
who use sorghum for consumption or fodder.

Although traditional storage facilities exist, metal storage silos could improve both the quantity and
quality of stored grain and ensure an even supply of grain throughout the year. Metal silos could be
provided at a community level to ensure that small scale subsistence farmers can access the benefits
of improved storage. The advantage of metal silos is that they are better able to maintain controlled
conditions for optimum storage, which in turn helps to maintain seed moisture, viability, germination
ability and field emergence. Tests have shown that sorghum seeds stored under controlled conditions
maintain all the features of newly harvested seeds. Metal silos have been shown to: ‘improve food
security, empower smallholder farmers, enhance income opportunities, increase employment and
safeguard agro-ecosystems (Tefera, T. et al. (2011).

Encouraging farmers to adopt metal silos would lead to further positive market outcomes in other
sectors. For example, demand for metal silos would create employment and work in the metal working
sector. Metal working skills training would be required to teach metal workers the designs and
specifications of suitable metal silos. Metal workers are currently operating in Baidoa town (Bay
Region), which means that training workshops could be established relatively swiftly. So, farmers
could reap the benefits of metal silos within a matter of weeks of project implementation.

Post-harvest processing: Limited post-production processing is conducted. The survey found that
100% of producers and 100% of traders sell unprocessed sorghum seeds. Field observations found
that some retailers sell sorghum grains with the husk removed, and some sell sorghum flour, but this
is not common. The lack of post-production processing is mainly a function of the fact that there are
few options for further processing. Most consumers simply grind the unprocessed grain to partially
remove the husks to make a porridge-like meal on a needs basis.

There is considerable room to improve the marketing and advertising of sorghum, particularly as it
could help to alleviate distribution and supply challenges. Virtually no advertising or marketing is
carried out in the sorghum value chain. As seen during the value chain study, none of the producers
or traders advertises or markets sorghum produce. When asked why, all responded that no one in
their sector advertises. The findings are characteristic of Somalia’s nascent services sector. The lack of
advertising and marketing is mainly due to a lack of precedence: no one has done it in the past, and
no one is doing it now. The kind of marketing and advertising that would be useful in the sorghum
sector ranges from simple labeling of produce to promoting specific seed varieties. More importantly,

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sorghum advertising could help traders and buyers to find pockets of surplus produce during deficit
seasons or in deficit locations, thereby reducing glut and dearth cycles. Developing this past of the
value chain should be linked closely with packaging facilities to create market competitive produce for
domestic and international trade.

4. Onions

Geographical areas
Onion production is mainly undertaken in the Lower Shabelle region along the riverine of river Jubba
and River Shabelle as well as in Gedo mainly along the riverine of the Dawa River. The land should be
flat and have access to irrigation water.
The soil should be light and well-draining. It must be free of aggressive weeds like couch grass and
should also be in full sun. The soil should be tested to determine soil fertility
Soil pH; Onions need a pH of 6 to 6.8 but the crop may grow on acidic soils. Vegetative growth best
occurs at 18-250C. At temperatures less than 150C, bulbs do not form. Seedlings are tolerant to high
rainfall, which towards crop maturity may result in increased incidences of thick necks. Adequate soil
moisture is required throughout the growing season for optimum yields. Bulb onions require soils rich
in organic matter. Sandy loams are most suitable.
It is recommended to maintain good levels of phosphorous and potassium in the soil. Phosphorous is
important for root growth while potassium is important for bulbing.

Production
The major constraints include unstable weather, water scarcity, pests damaging crops, and poor
transportation, and other constraints such as inability to access and use high quality inputs such as
seed and fertilizers, lack of capital to buy inputs, inadequate investment in irrigation which makes
farmers very vulnerable to drought, and there is less knowledge and skill on onion production of all
small holder poor farmers.

Irrigated farming systems for vegetables such as onions, tomato and other food crops and fruits face
many constraints. They include (a) much diminished and inconsistent surface water availability in
southern Somalia, as a result of the dilapidated state of its pre-war irrigation and flood control
infrastructure and minimal rehabilitation efforts because of persistent insecurity; (b) lack of water use
planning and regulation, which has led to inefficient water use, increased salinization, and water
logging; (c) poor soil fertility management, as inputs such as manure, fertilizer, and pesticides are
either used in a suboptimal way or not used at all, because of lack of adequate funds and inputs
availability in remote areas; (d) low-quality seeds and the availability of only very limited varieties on
the market; (e) limited and unreliable mechanized equipment (most farmers use hand-held tools to
till the land, because of the high cost of machinery); (f) badly deteriorated roads, which increase the
time and costs of transporting crops to markets, undermining incentives to expand vegetable crops;
and (g) inappropriate farming techniques, as a result of the absence of extension and research services
and lack of post-harvest handling facilities (cold chain etc).

Women are already heavily involved in the sorting and grading of onions post-harvest, so the
transition to adjacent post-harvest processes would be a logical and socially permissible move.

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Market
The market destination for onions is Beled Haawo, Ethiopia, Mandera in Kenya and Mogadishu. Onions
are exported to Ethiopia at peak seasons (May – October for Juba River and August – October for
Dawa River). However, onions were also reported to be imported from Sudan through Ethiopia during
off season periods.

In Gedo region, producers grow onions, as the main cash crop, though tobacco is also grown. In
addition to incomes for producers, huge labour requirement during seed selection, setting of the
nurseries, transplanting into the main field, weeding, fertilizer application, pest and disease
management, harvesting and marketing provides good labour opportunities for IDPs and the urban
poor.

Market Map
From the farm, produce is sold at farm gate or directly within the rural market to rural traders or to
middlemen or transported directly to urban markets such as Mogadishu, Merca, Baidowa, Luuq,
Dolow, or Beled Haawo. During data collection, 56.5% (Table 15 below) of the respondents reported
that their crop produce ends up in the domestic market where as total of 12.9% of the respondents
have their products accessing regional markets in Kenya, Ethiopia, and Yemen the remaining 30.6%
have their produce reach both markets. Other than these main markets, some produce is transported
to Mandera and Dolo Ado(Bay).

Figure 9: Onion Market routes

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Table 14: Destination market for crops & crop products from the interviewees

Frequency Percent Valid Percent Cumulative

Percent

Regional 11 12.9 12.9 12.9

Valid Regional& local 26 30.6 30.6 43.5

Local 48 56.5 56.5 100.0

Total 85 100.0 100.0

Markets reached by local Onion prodcuers

12.9
56.5 30.6

Regional Markets Regional & Local Markets Local Markets

Figure 10: Markets served by the Onion farmers interviewed

A high number of respondents (table 16) do not collaborate with others in marketing their products
representing 72.9% of the farmers interviewed while those who do take a lower proportion of 27.1%.
This is attributed to lack of information and knowledge among farmers about the opportunities that
come with farmers collaboration.

Table 16: Farmer membership to Crop Marketing Associations

Frequency Percent Valid Percent Cumulative

Percent

no 62 72.9 72.9 72.9

Valid yes 23 27.1 27.1 100.0

Total 85 100.0 100.0

Price Analysis

In terms of pricing, the margins for the traders increase as the commodities move along the value
chain. The producer seller gets the least price, followed by small scale traders and then retailers, larger
scale traders and wholesalers, and finally the exporters. For example, there was USD 1.5 – 2.0 margins
between the prices received by small scale traders and wholesalers.

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Hired labour in onion farms could be compensated with food/meal while monthly casual labour costs
USD 150 per month. During harvesting of onions, labour is paid at USD 0.5 per 60 kg bag which is later
sold at USD 20 per bag.

Value Chain Efficiency
Several problems limit the onion value chain efficiency particularly at production, post-harvest and
marketing of the onion crop. The most important constraints in a priority order are lack of proper
seeds and other inputs, lack of training and expansion services on production, poor post-harvest
handling and storage, poor security that limits movement of produce and lack of support services such
as credit, irrigation infrastructure, transport infrastructure, grading, packaging and cold storage
facilities. Support in these five areas would promote onion farming and return it to a level onion
farming could regain its lucrative potential in income generation.

The Onion subsector would benefit greatly from public investments in rehabilitating and improving
transport links between main ports, farms, and urban markets (just like other sectors) and from
private investments in cold-storage facilities. Introduction of tissue culture technology, which can
provide uniform seedlings free from insects and diseases.

Rural farmers also have got a challenge in accessing agricultural and market information as well as
lack of access to basic agricultural knowledge and information.

Farmers in lower Shebelle Riverine zone pinpointed factors affecting onion production in their zone
which included land tenure and ownership related issues as well as poor access to irrigation
infrastructure. It was reported that after the collapse of the central government in the early 1990s
there was confusion and unclear land tenure systems in Lower Shebelle leading to constant land
related conflicts, land grabbing and wanton displacement. Other factors mentioned include very poor
crop harvests, limited on-farm employment opportunities resulting to labour constraints and trade
constraints. The main uncontrollable challenge mentioned is climate change which nowadays can
clearly be seen and felt in Afgooye through the drying out of Shebelle River and unpredictable rainfall
patterns.

Quick win opportunities
The near-term challenge is to enable the revival of Onion production levels in Gedo (along river Dawa)
and Lower Shabelle regions at any given time, address seasonality of crop production within the study
regions, based on the production potential and help develop a marketing plan.
There is enormous potential for increases in Onion production and productivity just from
rehabilitating and upgrading pre-war flood control and irrigation public infrastructure. Rehabilitation
of this infrastructure could allow up to a doubling of cultivated areas within the riverine system of the
Dawa (in Gedo) Shabelle and Juba rivers, opening significant additional onion crop areas for
smallholders while still allowing for recession agriculture to continue. A feasibility study conducted in
2014 shows a potential irrigation area of more than 12,000 hectares just around Afgooye alone
(SWALIM-FAO 2014).

The medium- and long-term challenge is to attract investment in establishing cold storage
infrastructure, supporting farmers to raise yields to their full potential, and promoting higher value
addition through sorting, grading, packaging and storage.

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The lack of storage facilities impacts on supplier reliability, price variance and wastage through decay
and pest contamination. Addressing the lack of cold storage facilities (e.g. by tapping on solar powered
systems) could help unlock further benefits in the value chain by reducing wastage and evening out
price fluctuations. Storage facilities would empower producer communities to release surplus produce
into the market during the off-season, thereby ensuring local market demand can be met by local
produce and providing steadier income revenue for producers. It would also facilitate the
redistribution of onions within Somalia, Kenya and Ethiopia and provide a degree of short-term
insurance against crop failure or poor harvests.
Skills training in machinery maintenance would be well suited to youths and business administration
would be well suited to women through well-organized farmer associations. Women are already
heavily involved in the sorting and grading of onions post-harvest. Indeed, since little/no cold storage
currently exists, there is no precedent for socio-cultural discrimination in this activity. There are three
ways in which cold-storage facilities could be provided:

- Community-level shared asset: the high cost of cold storage facilities would exclude many
small producers from reaping the benefits. Building shared cold-storage facilities at a
community level would distribute the cost and help smaller producers access the facilities.
Such facilities would be administered through producer groups or producer associations.

- Large-scale producer renting: larger scale producers may already possess cold storage
facilities and should be encouraged to rent surplus space to smaller producers in the
neighbouring areas.

- Third party cold storage provider: SomRep or other development initiatives could support
young entrepreneurs of both genders to set up dedicated cold-storage facilities within easy
reach of producer communities. The advantage of this approach is that;
a. It removes the financial strain from producers to purchase and maintain their own
facilities,
b. It creates opportunities for creating new jobs, and
c. It requires specialist training in building, maintaining, and managing cold storage
facilities.

Should the cost of cold-storage facilities prove to be prohibitive, SomRep or any other development
partner or government should fund field tests to determine which types of locally developed storage
facility could reduce wastage. Tests should be carried out e.g. using different types of single and
multiplatform brick-bamboo constructions. By adjusting dimensions, shape, ventilation and
construction materials, farmers could reduce loss by 8-15% compared to a lack of storage facilities’
scenario (Yadav, S.S. and Yadav, V.V. 2011). This approach would be particularly necessary in areas
where supply of electricity is poor or unreliable. As with commercial cold storage facilities, alternative
storage options could create the same employment opportunities for youths and women.

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RECOMMENDATIONS

Continuing insecurity makes access to farms and markets risky, costly, and unprofitable. It also makes
interventions by aid agencies extremely challenging.

However, in the midst of challenges associated with insecurity and facilities/services, the private
sector (including agribusiness) has continued to thrive in Somalia defying all odds. However, this has
worked for the larger agribusiness people because of their skills and connections leaving the poor
farmers who have limited capacity to exploit the informal-system if it is to work for them. The
following recommendations are made to promote the inclusion of disadvantaged poor farmers in such
an environment with a greater role coming from non-state actors including the private sector as
government is working to develop the legal instruments, improve infrastructure and security, to
create an enabling environment for business in general which will take years

Generally, to engage poor producers in markets successfully, investments in upgrading production,
storage, value addition & agroprocessing, marketing are critical. Small-scale producers, particularly
the marginalized poorer producers, and their intermediary business partners (such as farmers’
associations or cooperatives), need investment in business skills that will increase their chance of
benefiting. These types of investments typically are needed to meet the requirements of the market
(quality, consistency, production standards), or to enable the poor to reduce risks and enhance
rewards (increasing productivity, sustainable farming skills, or business capacity).

In the short-term, while targeting the input segment of the value chain, some key interventions
include increased awareness on access and skills of using improved farm inputs, building on informal
existing groups, pursuing opportunities for collective access to input and output markets while
applying the “economies of scale principle”, facilitating access to water pumps and increasing requisite
skills for their repair and maintenance, supply of spare parts, subsidies for inputs and piloting the use
of new appropriate technologies such as solar power water pumps and cold rooms. Particularly, for
the districts that are served by Juba, Shebelle or Dawa rivers there is need to facilitate and support
tractor services provision, canals development and support with farm inputs accessibility. Farmers
should also be equipped with improved agronomical practices and management skills through skills
training, development of demonstration and learning centres e.g. using the Farmer Field Schools (FFS)
model and the provision of extension services.

Improving the commercialization of farming enterprises in the districts of study through the provision
of entrepreneurship and farm management training and skills to farmers should be part of the sort-
term approaches for the improvement of marketing and trade. Pursuing collective marketing through
the existing cooperatives and small producer groups and mobilising farmers into similar farmer
cooperatives will offer better opportunities for price negotiations in the short to medium term.

Organizing farmers will increase farmers’ bargaining power and market accessibility. Value chains
work best when actors cooperate to produce higher-quality products and generate more income for
all participants along the chain, as opposed to the simplest kinds of value chains characterised by
segmentation and an individualistic mentality.

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Another key area of intervention in the medium term is developing systems for gathering and
disseminating market information to primary producers and other actors along the value chain.
Encouraging the sprouting of village cottage industries is likely to create more demand and generate
job opportunities and better prices for the crop and crop products.

In the medium-term to the long-term, infrastructure improvement in transportation and storage will
surely ease movement and increase access to the market centres. Additionally, discussion with
neighbouring governments at a bilateral level will help in reducing cross border tariffs and taxation
and improving cross border infrastructure.

Making more and better coordinated investments in agriculture from the government, private sector,
civil society and the vibrant enterprising Somali diaspora is one of the most effective ways to reduce
hunger and poverty in the long-term while expanding economic opportunities and creating jobs for
the youth.

For crop production, the whole production management, marketing, domestic and/or export market
system requires support as a way of promoting the livelihoods of farmers, handlers and traders in the
crops value chain.

i. For institutional formation, facilitating collective marketing establishment of farmer
associations and co-operatives to improve the marketing structures and systems,
negotiate for better prices with middlemen, transporters and security providers will be
critical.
Irrespective of limited legal/policy framework in Somalia, Cooperatives are based on
values of self-help, self-responsibility, democracy, equality, equity and solidarity. While
cooperatives are also businesses, the main objectives for people to set up or join a
cooperative is to improve their economic and social conditions through joint action for
the good of all members rather than through individual concerns only.
The conditions necessary for the creation of a farmer-based organization include:
 Existing problems and constraints cannot be solved individually. A group of
motivated persons who share common problems is needed.
 There is no alternative to cooperative self-help - e.g. help cannot easily be
provided from family, a social institution, or the state.
 The advantages of membership (access to goods, inputs, loans, services, markets,
etc.) outweigh the duties of membership (e.g. contribution of resources such as
money, time, land, equipment etc.).
 At least one person amongst the group has leadership ability and takes the
initiative to represent the group. It is essential for successful work that s/he be
reliable and have charisma.
 There are no legal or political restrictions on groups being able to elect their own
leaders; market their own goods; earn profits and to make their own decisions
about distributing surplus produce, etc.

Government policies act only to create the general framework conditions needed so that
cooperative autonomy, self-financing and self-reliance is strengthened and not
undermined. This means ensuring that legally, groups are allowed to elect their own
leaders; to market their own goods; to earn profits and to make their own decisions about

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distributing surplus and to carry out numerous other business activities in the members’
interests

ii. Support for peace-making efforts through farmers’ association leadership at the
community, regional and national levels for the establishment of a national government
will be helpful as well:
 With a government, a national agricultural and marketing policy can be
established.
 The security of the whole country will be improved, thus enabling the farmers to
work their farms unhindered. The cost of production and marketing will be
reduced.

iii. Improvement of product quality, packaging and distribution
 Use of improved, tested seeds and environmentally acceptable pesticides.
 Support from the international community for support of locally produced
packaging and conservation materials.
 A revival of local markets and demands to accelerate production and marketing.
 The expansion of the crop markets in major urban towns.
 Opening of new markets abroad.

iv. Provision of chilled storage facilities in the main markets, particularly at Bakaara market
in Mogadishu.

Recommendation on the most practical and feasible crop VC development approach;
In the short-term (1 to 3 years), efforts should be focused towards the establishment of stronger
farmer institutions and their management, farmer training and extension services provision,
facilitating linkages to off-take markets and the establishment of relevant infrastructure such as
appropriate storage and value addition. In their organizations/associations it will be easy to extend
training in good agricultural practices, post-harvest handling, storage and warehouse management in
order to increase the quality of their production and limit losses by keeping their crop harvests free of
contamination and pests. For example, farmers need to learn how to grade their grain. These new
skills are aimed at increasing the quality of their produce. Farmers can be supported to produce
sorghum that meets international quality standards in enough quantities to sell it to WFP, which will
use the locally grown grain in its food assistance programmes for the most vulnerable and food-
insecure Somalis.

It is also critical that models for easier farmer credit access are also developed; for example,
establishing Village Savings and Loaning Associations (VSLAs) while leveraging on the stronger farmer
organizations. In summary therefore, well organized farmer-based organizations, Sustainable natural
resource management, increased crop production, postharvest storage technologies and private
sector-led modernization of the sector is needed to make Somali agriculture outputs competitive.

Another early intervention is addressing the challenge of post-harvest losses particularly through
promoting farmer’s accessibility to storage facilities appropriate for each crop value chain.

Opportunities exist considering that water for irrigation, especially along the rivers is underutilized,
and vast land for irrigation agriculture exists and market for raw or processed crops is available.

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Based on these findings and consultation with the different stakeholders, it is our recommendation
that investments in crop production should be targeted at both poorer producers to improve their
productivity and food security, and to larger scale producers to improve productivity and income-
earning opportunities (employment creation for IDPs and urban poor, as agricultural labour, and for
income and business opportunities in produce markets and support functions).

In the medium term to long-term (4 to 7 years), recovery of agricultural production especially of the
selected critical crops depends on better security; stronger public and community institutions; and at
least a start toward rehabilitating dilapidated flood control, irrigation, and transport infrastructure as
well as empowering the Somali crop farmers to tap onto their markets. With minimal assistance
including agricultural inputs, tools, technical skills in storage e.g. for Sesame, Sorghum and Onions,
grading (onions and lemon) and marketing, they can make a great difference. It will ultimately
strengthen livelihoods and increasing resiliency.

In the long-term, the sector’s growth potential can be realized only by developing and implementing
a comprehensive sector development strategy, supported by institutions and interventions that
harness the dynamism of its private sector in both primary production and domestic and foreign trade
of inputs and processed products.

The strategy should aim at achieving the following key objectives:

i. Transform private sector–led production systems in all subsectors into modern, commercial,
and competitive ones that add value through agro-processing.

ii. Strengthen household resilience and reduce malnutrition, including by adopting modern
postharvest storage technologies and drought risk mitigation measures.

iii. Increase crop production, through rehabilitation of irrigation infrastructure, roads, expansion
of infrastructure and technologies for water storage and harvesting, and re-capacitating
research and extension to promote the widespread adoption of climate-smart agriculture
practices.

iv. Protect and improve the natural environment, considering the vulnerability of all agricultural
subsectors to climate change.

v. Development of the relevant policies and legislation by government that will create a
favorable environment for small holder farmers to participate in mainstream markets.

vi. Deliberate drive by civil society to engage/sensitize the private sector on how to use pro-
poor strategies that will enable them to support farmers to enter markets, earn better
returns from their produce.

The private sector can play a critical role in promoting trade and easier accessibility to high quality
farm input, investment in value addition, agro-processing & cold storage and the provision of
support services such as credit and irrigation infrastructure.

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