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SUCCESSFUL IMPLEMENTATION OF LARGE-SCALE DRIP IRRIGATION PROJECTS AN EXPLORATORY STUDY OF THE SOCIO-ECONOMIC IMPACT AMONG SMALLHOLDERS CIPA 2012 INTERNATIONAL CONFERENCE Prof. Aviad E. Raz, PhD, Ben-Gurion University of the Negev, Israel Naty Barak, Chief Sustainability Officer, Netafim AGENDA ABOUT NETAFIM, DRIP TECHNOLOGY & WATER GOOD PRACTICES SUMMARY NETAFIM AT A GLANCE Founded in 1965 at Kibbutz Hatzerim – introduced breakthrough drip irrigation concept Born out of a need to make Israel’s desert bloom Ag2Ag business model Global leader in drip and micro-irrigation solutions Permira funds acquired majority stake (Sept. 2011) Kibbutz Hatzerim THEN 3 NOW GLOBAL PRESENCE 13 manufacturing plants 27 subsidiaries DRIP IRRIGATION ADVANTAGES Irrigating the Plant, Not the Soil Optimizes moisture and aeration conditions Ensures precise quantities of water and nutrients directly to root zone Reduces release of gases to atmosphere caused by imprecise fertilizer usage Increases yields and enhances productivity per unit of soil and water FLOOD & FURROW IRRIGATION DISADVANTAGES Water source depletion and contamination, excessive use of chemicals Greenhouse gases emitted to the environment boosting a warming trend GLOBAL WATER USAGE 70% of world’s available water goes to agriculture 17% of all cultivated areas are irrigated 79% of irrigated areas use flooding Mechanized Sprinklers (2%) Drip Irrigation Domestic Agriculture 15% 4% 10% Industrial 20% 70% Flooding 79% Saving 15% in water for agricultural use will more than double available water for domestic use Source: ICID – CIID 7 AGENDA ABOUT NETAFIM, DRIP TECHNOLOGY & WATER GOOD PRACTICES SUMMARY GOOD PRACTICE: INDIA’S APMIP Name: Andhra Pradesh Micro-Irrigation Project Project area: 434,352 ha Project cost: $249 million No. of participants: 187,000 farmers (March 2008) with plots of 1 hectare and above Crops: Fruits, vegetables, spices, field crops Governmental support: Subsidies of 50%-70% of drip irrigation equipment value Banking support: loans APMIP IMPACT WATER SAVINGS 76 to 100% savings (3.55%) 51 to 75% savings (20.14%) No savings (4.45%) 0 to 25% savings (21.07%) 26 to 50% savings (50.79%) YIELD INCREASE 76 to 100% increase (4.32%) 51 to 75% increase (20.21%) 26 to 50% increase (41.78%) No yield increase (6.13%) 0 to 25% increase (27.56%) APMIP: DRIPPING WITH SOCIAL CHANGE • APMIP field study data provided by Prof. Aviad Raz, Ben-Gurion University of the Negev, Israel • Background slides provided by Dr. V. Praveen Rao (India), Manager Agro Knowledge, Netafim India Andhra Pradesh government spent large sums to build water infrastructure and bring water to the farm gate TRADITIONAL FLOODING (SURFACE IRRIGATION) At the farm level, water use via flooding is inefficient. The way the farm uses water can significantly impact on achieved results APMIP: GOVERNMENT VISION Increased productivity from available land, water, fertilizer and labor – productive agriculture Higher energy efficiency in agriculture sector Reduced cost of production Enhanced farm profitability Greater environmental stewardship Preserved social fabric of rural communities APMIP PROJECT DETAILS Project cost $257 million Project area 247,000 ha Area taken up in Phase 1 194,000 ha NABARD assistance $128.5 million Farmer’s share $128.5 million Andhra Pradesh government (GoAP) subsidy 60% (for drip) & 50% (for sprinkler) of system cost with a ceiling of Rs. 50,000 per farmer Number of mandals 879 in 22 districts Stakeholders Farmers, Collectors/PDs; DWMAs Horticulture, Agriculture, Sericulture & Sugar Departments; Bankers; Micro-Irrigation Companies; Monitoring & Evaluation Agencies, APMIP Cells SECTORS & CROPS SECTORS & CROPS HORTICULTURE Fruits, vegetables, flowers, plantation crops, spices, medicinal & aromatic crops AGRICULTURE Cotton, corn, peanuts, soybean, pulses, sunflower, fodders… SERICULTURE Mulberry SUGAR Sugarcane APMIP UNIQUENESS There are various constraints when it comes to introducing drip irrigation in developing countries: Financial investment is required for installation, training, and maintenance Efficient administrative framework inter-connecting the government, banks, farmers, and micro-irrigation companies is required APMIP UNIQUENESS (cont’d.) Combining capitalistic incentives for private companies with collective regulations, the APMIP created a system of competition among private micro-irrigation (MI) companies in a government-regulated environment to ensure smallholder benefits. 1. 2. 3. 4. 5. 6. Uniform subsidy pattern to farmers Agronomic and after-sales service 5-year warranty for materials supplied by MI companies Training and capacity building of farmers and stakeholders Penalties for violation of responsibilities and quality control Independent monitoring and evaluation of installed MI systems and agri-extension services by external agency GROUP INTERVIEW WITH APMIP SMALLHOLDERS 2007 APMIP FIELD STUDY Interview subjects – – 27 smallholders in three APMIP districts with at least one year of experience working with Netafim drip systems APMIP officials, area managers and dealers Key performance indicators (KPIs) – – – farmer satisfaction crop improvement plot size expansion 2007 APMIP FIELD STUDY FINDINGS Satisfaction level regarding training was generally high (although fertigation training was perceived as less successful due to problems of market applicability) Drip led to significant yield improvements in all crops, with sugarcane productivity showing the greatest change Traditional vs. Drip Irrigation Yield by Crop Crop Yield with traditional Yield with drip irrigation method (tons) irrigation (tons) % change Sweet Orange 22 25 +14 Rice 8 10 +25 Vegetables 7 8 +14 Sugarcane 75 125 +67 2007 APMIP FIELD STUDY FINDINGS (cont’d.) The move to drip enabled farmers to expand plot size by an average of ~2.5 times Traditional vs. Drip Irrigation Plot Size by District District Original plot with traditional irrigation (acres) Current plot with drip irrigation (acres) Average coefficient of change Nalgonda Medak 0-20 20-60 3 2-4 3-10 2.5 Rangareddy 1-3 2-6 1.7 All smallholders who increased plot size, installed drip systems in the new area. Such expansion also represented for many a gradual shift from subsistence to commercial agriculture. APMIP – YIELD IMPROVEMENT BY CROP Sample size = 6,000 farmers 120 Yield (Tons/ha) 140 100 80 60 40 20 0 Surface Data provided by Dr. V. Praveen Rao Drip DRIP IRRIGATION AND SOCIAL CHANGE Drip’s unique advantages – water savings, increased crop yield, and individualized technological control – have led to tremendous social change, especially in developing countries and peripheries EXAMPLES FROM NETAFIM’S OVER 45 YEARS OF EXPERIENCE INCLUDE: Jordan Valley: Drip led to 10 times increase in crop yields and water savings of 50% for farmers. As a result, they were able to buy the land they were leasing, dramatically increasing their quality of life. Netafim’s Family Drip System™: FDSTM changed the life of hundreds of smallholders in Niger and Zimbabwe, enabling single women to gain economic independence through farming. APMIP mega-project: Drip led to plot expansion and a shift from subsistence to commercial agriculture for thousands of smallholders in India. THESE PROJECTS ARE NOT JUST ABOUT DRIP IRRIGATION, BUT ALSO THE TRANSFER AND CAPACITY BUILDING OF SUSTAINABLE AGRICULTURE TECHNOLOGY FOR A BETTER LIFE GOOD PRACTICE: YELLOW RIVER, CHINA Zhongwei City, Ningxia Province, China System deliverable: Turnkey irrigation system Project size: 2,000 hectares of desert land No. of participants: Over 6,000 farmers Plot size: Small parcels (~2.5 ha) Crops: Chinese dates and watermelons Land maximization: Watermelons were grown between date tree rows, enabling income until maturity of dates YELLOW RIVER PROJECT IMPACT Reduced amount of water pumped from river, providing cities downstream with water Improved quality of life for farmers by increasing their agriculture-based income and slowed down migration to cities, a phenomenon accompanied by poverty, increased social unrest and higher crime rate Reduced amount of water used for agriculture, leaving more water for domestic and other uses Improved use of marginal land for agriculture Halted desertification, a serious challenge for China Partners: Farmers, multi-level government offices (i.e. village, county, province, central) GOOD PRACTICE: KITUI, KENYA Area: Kamale and Wingoo water catchment zones in the Nzambani District in the semi-arid Eastern Province Participants: 200 poor small-scale vegetable growers (mostly women and elderly people who could not continue practicing bucket irrigation) Solution: Family Drip System™ (FDS™) Partners: FAO (main donor), Amiran Kenya, Kenya’s Ministry of Agriculture, Agrosphere (NGO) KITUI IMPACT 140% increase in harvested yield 200% increase in income 80% increase in vegetable-growing capacity and know-how (via pre-post training impact test tool) 65% increase in basic farm management know-how (via pre-post training impact test tool) 60% water savings due to shift from bucket to drip irrigation AGENDA ABOUT NETAFIM, DRIP TECHNOLOGY & WATER GOOD PRACTICES SUMMARY SUMMARY Investments in agriculture are critical for food security and poverty reduction Private investments can benefit poor farmers in rural farming areas Public investments are essential in attracting private-sector investment UN agencies can play a central role in building partnerships and attracting investments Partnerships bear fruit (e.g. governments, NGOs, private sector, farmers) Tangible Results Shift from subsistence to commercial agriculture Capacity building through training and know-how transfer Creation of knowledgeable agricultural society EVERY DROP COUNTS Picture: Alexandra Boulat THANK YOU 33