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ISSN 1810-0775

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Hire ser vices by farmers for farmers

Diversification booklet number 19

Hire ser vices by farmers for farmers Brian Sims, Alexandra Röttger and Saidi Mkomwa

Rural Infrastructure and Agro-Industries Division Food and Agriculture Organization of the United Nations Rome 2011

The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO.

ISBN 978-92-5-107072-7 All rights reserved. FAO encourages reproduction and dissemination of material in this information product. Non-commercial uses will be authorized free of charge, upon request. Reproduction for resale or other commercial purposes, including educational purposes, may incur fees. Applications for permission to reproduce or disseminate FAO copyright materials, and all queries concerning rights and licences, should be addressed by e-mail to [email protected] or to the Chief, Publishing Policy and Support Branch, Office of Knowledge Exchange, Research and Extension, FAO, Viale delle Terme di Caracalla, 00153 Rome, Italy.

© FAO 2012

■ Hire services as a smallholder enterprise: common hire services

■ Opportunities for improved livelihoods ■ Market potential ■ Purpose of the booklet

■ Benefits of hiring as a livelihood activity

■ Hire services at the household level ■ Repair and maintenance as an enterprise ■ Technical linkages and improved knowledge ■ Benefits to farming ■ Smallholder empowerment: services ■ Gender issues ■ Business location: embedded in the farming community ■ Financial rewards

■ Feasibility of the activity

■ Market research ■ Appraisal of input supply chain: spare parts ■ Appraisal of other support services ■ Credit ■ Costs and profits ■ Evaluation of the business opportunity

■ The livelihood activity

■ Common hire services ■ Production services ■ Harvest and post-harvest services ■ Marketing services

v vii 1 2 4 6 8 11 11 14 18 21 23 23 25 26 29 31 33 33 34 35 40 43 43 43 50 56

Table of contents

■ Preface ■ Acknowledgements ■ Introduction

■ Sustainable strategies for the livelihood activity ■ Market appraisal ■ Marketing strategies ■ Organization ■ Multiple service products ■ Sustainable business enterprise

■ Support services

■ Access to support services ■ Supporting the input supply chain and linkages ■ Technology ■ Training ■ Financial services ■ Veterinary services ■ Institutional role

■ Challenges

■ Which hire service? ■ Equipment acquisition ■ Access to credit ■ Repair and maintenance ■ Infrastructure ■ Sustainability of the enterprise

■ Selected further reading ■ Sources of further information and support

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Table of contents

Preface

Each booklet focuses on a farm or non-farm enterprise that can be integrated into small farms to increase incomes and enhance livelihoods. The enterprises profiled in the FAO Diversification booklets are suitable for smallholder farmers in terms of resource requirements, additional costs, exposure to risk and complexity. The products or services generated by the e


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