Project: Smallholder Sourcing Strategy for African Milling Limited
Client: Africa Agriculture and Trade Investment Fund (AATIF) – AML
Date: 2021
The Problem
In 2021, Agova was contracted to develop a sustainable sourcing strategy for Zambian maize milling company, African Milling Limited. The objective of the AML Maize Sourcing Strategy was to develop a robust system that would allow for the reliable procurement of high-quality white maize from its smallholder farmer (SHF) supplier base of approximately 22,500, and to optimise the utilization of AML’s newly installed milling plant capacity of 504 MT per day.
The Solution
Agova conducted a comprehensive study to improve AML’s maize sourcing strategy by interviewing 186 smallholder farmer households, holding 26 focus groups with 413 farmers, and conducting 35 key stakeholder interviews. The study combined quantitative and qualitative analysis with secondary market research to provide insights into the maize market in Zambia.
Results
Agova developed a comprehensive report and revised strategy for AML, including an implementation plan, communication plan, risk management plan, financial model, and detailed budget aimed at boosting smallholder farmer yields through sustainable practices. The strategy, which projected returns on a EUR 350,000 cost-share investment with impact investor AATIF, has been adopted by
