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WHY INPUTS AND MARKET DISCOUNT MODELS COULD SPUR UPTAKE OF SOIL TESTING SERVICES BY SMALL-HOLDER FARMERS IN NORTHERN UGANDA

A well fertilized soil gives good yields

BY RICHARD DRASIMAKU

Saturday, January 18, 2025

Despite the growing importance of soil testing to enhance small-holder farmers’ (SHF) agricultural productivity, the rigidity of northern Uganda farmers on traditional farming practices, limited awareness, the relatively high cost of carrying out soil testing and low penetration by private soil testing actors in remote areas have limited the accessibility of soil testing.

The costs associated with soil analysis, approximately US $11.5 for a routine test (which includes pH, organic matter, nitrogen, available phosphorus, potassium, calcium, magnesium, and soil texture), pose a significant barrier for many farmers.

Additionally, the business models of existing laboratories, despite previous studies identifying their capabilities and locations, present challenges that further discourage farmers from utilizing these services.

This is coupled with a widespread belief that Uganda’s soils are naturally fertile and a general lack of awareness about the benefits of fertilizers has led to low soil testing rates and minimal fertilizer use.

This situation persists despite the clear benefits of both organic and inorganic fertilizers. The implementation of the Uganda National Fertilizer Policy (MAAIF, 2016) aims to change this scenario by increasing awareness about the benefits of fertilizers in enhancing crop production and productivity.

This policy counters the misconception that fertilizers damage soils and promotes the value of fertilizers potentially leading to a rise in soil and plant testing among farmers and other stakeholders.

There also are various models that have been introduced to improve the quality of soil testing services which was the subject of interest in this study.

Palladium contracted the Knowledge-Wells Agricultural Consult Ltd under the Climate Smart Jobs (CSJ) programme to carry out a comprehensive study.

The study, however, recommends an inputs and market discounting model if the private sector players are to upscale the demand level among farmers to cushion against low farm production.

The study was conducted in the CSJ project districts of Northern Uganda, including the refugee settlements in the West Nile region.

These are the sub-regions of Acholi, Lango, and West Nile, as well as the Kiryandongo, Rhino Camp, and Adjumani settlements.

Additionally, the consultant carried out interviews in the Elgon sub-region, covering the districts of Mbale, Bulambuli, Kween, and Kapchorwa.

This was done to gain a deeper understanding of the existing soil testing services and models in that area and to draw insights into the broader soil testing landscape.

The Uganda CSJ project is aimed at improving soil health by fostering collaboration between Private Sector Actors (PSAs) and Smallholder Farmers (SHFs).

Specifically, the project is aimed at identifying appropriate smallholder farmers facing soil testing models with potential for replication and scale in Northern Uganda (NU).

The project further focuses on introducing innovative soil fertility and soil moisture management strategies to enhance crop productivity.

Current data shows that reliance on improved seeds alone can only boost yields by 20%, underlining the need to consider soils as key simulators for boosting yields beyond 20%.

This calls for enhancing soil health to support crop production and productivity of the improved varieties through soil fertility management and fertilization for the degraded soils.

Enhancing soil fertility through fertilization requires a proper understanding of the soil nutrient status through soil testing by these smallholder farmers.

However, this practice is still limited and embraced by the SHF in developing countries due to a lack of effective approaches for promoting soil testing services among SHFs.

Therefore, the Uganda CSJ project intends to address these obstacles faced by SHFs, including limited private sector investment in soil fertility services, lack of knowledge about good agricultural practices, limited access to irrigation tools, land accessibility, and control issues (especially for women and refugees), and insufficient incentives for investing in soil fertility.

Furthermore, the CSJ research underscored the need for more effective approaches in promoting soil testing services among SHFs in northern Uganda, given their limited understanding of soil nutrient management.

Some of the models are said to be in use in Northern Uganda, Uganda, Kenya, and other regions.

This is according to the report published by the researchers in June 2024, which combined a mixed-methods approach involving quantitative and qualitative (interactive, participatory, and consultative techniques) in conducting the market assessment.

Participatory techniques such as Key informant interviews, focus group discussions, document review, and photography were used during data collection in addition to the household farmer questionnaires.

A total of 302 individual farmers and 29 key informants were interviewed across different districts, and 18 focus group discussions were conducted.

The assessment revealed that accessibility and convenience, technical expertise and speed of results turnaround time were crucial in influencing smallholder farmers’ decisions to invest in soil testing    services.

Across various regions, respondents prioritize accessibility and convenience differently e.g., Acholi: 85.2%, Lango: 77.1%, Kiryandongo: 69.2%, Refugee Settlements: 66.7% and West Nile: 66.7%.

These percentages highlight the importance of making soil testing services readily available and easy to use for farmers.

Technical expertise and support are critical factors driving smallholder farmers’ investment in soil testing services.

Across all sub-regions, 51.8% of farmers identified these factors as vital. The importance of technical expertise and support varied by region.

From the visualisation for example, Lango farmers attached greater importance to availability of technical expertise at 80.0%, followed by the respondents in Acholi at 59.3%, and the Refugee Settlements at 55.6%.

Speed and turnaround time was reported as an important factor for 35.1% of farmers across all regions when deciding to invest in soil testing services.

Here are the regional-specific statistics;

These figures highlight the varying importance of quick results in different regions, thus influencing farmers’ willingness to invest in soil testing services.

Also very significant was accuracy and reliability of the test results. The assessment revealed that accuracy and reliability are key drivers for investing in soil testing services for smallholder farmers, with the following regional statistics.

These figures demonstrate the varying importance placed on accuracy and reliability by farmers in different regions.

Among the studied models include Jabba’s First Model that uses recruited field agents to collect soil samples from farmers.

This is where a 300-agent network is used to collect soil samples that are sent to the local/ regional labs for wet-chemistry tests (qualitative and quantitative tests).

Jabba’s second model offers bundled agricultural services, including soil testing, seeds, and pesticides sourced from input suppliers.

Farmers pay 50% upfront based on a computed cost of production. For example, they’ve computed maize production costs per acre to a tune of UGX.1.5 million.

They then meet a 50% upfront cost in actual bundled input costs and the remaining 50% due after harvest is recovered from the farmer upon the sale of output from his/her farm.

This approach ensures farmers have the necessary resources upfront and can settle payments once they earn income from their crops.

ISDA model, also implemented in Kenya, uses an AI Virtual Agronomist on WhatsApp for accessible soil testing and makes recommendations to farmers on the WhatsApp platform.

It offers cost-effective solutions, including free basic tests and affordable detailed tests, with payments via mobile money.

The Kyazzanga Farmers’ Cooperative Model involves farmers working collectively with a cooperative agronomist for affordable soil testing. Farmers can opt for onsite testing or send samples to a lab, while meeting the transport costs.

Using Makerere University soil testing kits, quantitative tests cost 50,000 UGX per sample, with the agronomist earning a commission of 5,000-10,000 UGX.

The Akorion Model involves a business approach that combines soil testing with agricultural advisory services on a digital platform to enhance farmer decision-making.

In this model, Akorion coordinates between its field agents and farmers, connecting the Ezy Agric advisory unit with the soil testing laboratories particularly the Kawanda soil lab and the Makerere University Lab.

The Grain Pulse Soil Testing Model involved two regional agronomists who facilitated soil tests for farmers using a mobile soiling van.

These agronomists played a crucial role in collecting soil samples, conducting tests, and delivering results. They offer two primary testing methods namely: Scanner with Dry Chemistry and Mobile Lab – Wet Chemistry

Accilla Enterprises Model: The model involved collaboration between multiple stakeholders. These are SNV (Netherlands Development Organization) which Finances 80% of the soil testing costs and Acilla Enterprises Ltd an agro-dealer in Soroti district is tasked with extending soil testing services to farmers and subcontracting soil testing to private sector soil testing experts.

Crop Nuts Model: Crop Nuts in Kenya provides soil testing services to clients, including those in Uganda. They aid this through processing free soil testing permits that allow shipping of the collected samples to their lab in Kenya.

Clients pay $50 for a comprehensive soil test with recommendations for one crop, $10 for each additional crop, and $25 for macronutrient testing alone.

The soil testing turnaround takes 5-7 days for wet chemistry and 3 days for dry chemistry, with recommendations shared electronically via emails.

Each of these models represents a unique approach to addressing challenges and opportunities in soil testing.

By leveraging successful elements from these models and adapting them to local contexts in Northern Uganda, CSJ can co-design a sustainable private sector soil testing business model customized for Northern Uganda.

Based on the identified market system constraints, we propose a soil testing bundled services model that builds in inputs and marketing discounts on soil services uptake.

The bundled services model can be implemented through two distinct and recommended pathways one of which integrates inputs and extension services to enhance soil testing services uptake.

Smallholder farmers would pay for soil testing through their local agro-dealer or cooperative, which markets this service as an agent of a private or public lab.

The agro dealer or cooperative leadership earns a commission from the lab for every farmer who requests the service.

In turn, they offer inputs at a discount to the farmer upon receiving the test results, they support output aggregation and market access.

This model is most effective when the price of fertilizer is negotiated at the supplier level, ensuring that the combined cost of soil testing and fertilizer remains affordable for farmers.

This model incorporates the entire cost of production, including soil testing, for specific key value chains that are commercially viable in the Northern region.

The bundled costs include soil testing, fertilizer, chemicals, extension services, improved seeds, and insurance.

The model also identifies and secures agreements with reputable buyers/off-takers for the farmers’ outputs at the end of the season. The buyer/off-taker is willing to provide a premium on the price of outputs from the farmer, surpassing the prevailing market price as specified in the agreement among the parties.

 

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