Project: Business Model Assessment of Mt Meru’s Smallholder Out-grower Scheme
Client: AATIF / Mt Meru
Date: January 2021 – April 2021
The Problem
African Milling Limited (AML) faced challenges in reliably sourcing high-quality white maize from its 22,500 smallholder farmer (SHF) suppliers while ensuring the adoption of Sustainable Agricultural Practices (SAP). Additionally, AML sought to increase maize supply to optimize the utilization of its 504 Mt/day milling capacity.
The Solution
Agova was contracted to develop a sustainable maize sourcing strategy for AML. To inform the strategy, Agova conducted a comprehensive study using a mixed-methods approach:
- Reviewed literature on Zambia’s maize value chain and SHF sourcing models.
- Collected and validated primary data through 186 SHF household interviews, 26 focus groups with 413 SHFs, and 35 stakeholder interviews, including AML staff and extension officers.
- The resulting strategy included Key Goals, Recommended Activities, an Implementation Plan, a Communication Plan, a Risk Management Plan, a Financial Model, and a Detailed Budget.
Results
AML has adopted the strategy to expand its SHF supplier base and promote the adoption of sustainable farming practices. The strategy is poised to strengthen AML’s sourcing reliability and enhance SHF productivity, aligning with its goals for optimized milling capacity and sustainable operations.
