Exploitation or Incompetence? The Truth Behind Small-Scale Farmers and Millers' Struggles

The life of a small-scale farmer is full of many challenges. I am left speechless when a lot of money is sent to help small-scale farmers, yet the results are very minimal. What could be the reason for this? Where do we get accurate data to closely monitor what is happening?

During my training of extension officers in rural areas on how to utilize the MazaoHub farm ERP system for effective management of farmers and end-to-end farm operations while adhering to best agricultural practices, I was taken aback and greatly concerned to observe that millers bear the responsibility of supporting farmers. Despite the inflow of funds, including grants of different kinds, it's perplexing to see millers at the forefront of providing services to the farmers. This raises several questions: where is the money going, and how is it feasible for millers to undertake this role?

Did you know that these millers are not only the main lenders to smallholder farmers but also the primary market for their produce? Why have they been left with all the burden?

During my experience in rural areas, I have personally witnessed small-scale farmers relying on millers for loans to purchase inputs. After harvesting, they store their crops in the miller's warehouse and sell it back to the miller at a lower price to repay the loan. Unfortunately, the miller is often the only support system for these farmers. They provide loans, storage facilities, and even seek out markets for the farmers. However, there are times when the miller purchases the crops at a low price and then sells them to a broker at an even lower price, who then sells them to someone else for a higher profit. Under these circumstances, it's doubtful that the lives of small-scale farmers would improve.

Moreover, I've also observed small-scale farmers reaching out to millers after harvesting to request that the miller pay for transportation of their crops to the warehouse. It begs the question of where the funds designated to support small-scale farmers are being utilized. Why have millers been left with such a significant burden?

We created MazaoHub farm ERP with a dual purpose: to empower farmers to manage their own farming process until harvest and enable millers to manage the farmers they lend to, store their crops, and access direct markets through our partner millers and warehouses. This solution also helps to create financial records of each farmer's sales, providing them with a broad scope of borrowing opportunities and direct access to customers without going through brokers. Ultimately, our goal is to empower farmers and alleviate the burden on millers by providing a more sustainable and equitable system for all stakeholders involved.

During the implementation of the MazaoHub system for these millers, we encountered a significant challenge. We found that farmers who were loaned money would sometimes move their harvest to a different miller than the one who had lent them the money. This problem arises because millers often compete with each other. As a result, farmers may run away from the first miller and go to another without informing either miller because of the competition.

To address this issue, MazaoHub developed a system to track the farmers and keep tabs on their movements, including where they have gone, how much they owe other millers, and their identity when they move to another miller. This was a complex task that took a considerable amount of time to develop, and we are still working on making further improvements to the system.

The MazaoHub Farm ERP system is a comprehensive agriculture management tool that caters to all the stakeholders involved in agriculture. It recognizes that agricultural reforms cannot be brought about by merely working with farmers alone. It's essential to address the challenges encountered by all the stakeholders in the agricultural value chain to impact the lives of the smallest farmers positively. This is why MazaoHub is an integrated system that seeks to streamline and optimize the various processes involved in agriculture, from production to marketing. Have you ever pondered the rationale behind the integration of the MazaoHub system?

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