1. Linking Mini, Small and Medium Forest Enterprises to Market and Service:
Case of Tree AID's Market Information System in Tominian Northern Region
of Mali
Elvis Paul Nfor Tangem
Value Chains Development Manager
TREE AID
Ouagadougou, Burkina Faso
Email: elvis.tangem@treeaid.org.uk
Tony Hill & Yacouba Ouedraogo
Information technology and communication development have proven to be a ‘break through’ for
facilitating markets and market linkages even for the most neglected and underutilized products like
the case of non timber forest products. The Non Timber Forest Products Sector is one of the
principal source of natural resources for livelihood and income generation for more than 40 million
people in Africa especially during lean periods. Despite this importance, the sector is neglected by
State and private sector actors. In an attempt to redress the situation, Tree Aid West Africa with
Sahel Eco Mali set up a Market Information System to link producers to buyers and consumers
through the use of mobile phones, community FMs stations and state radio. After two years, the
results have been very positive. Over five producers have had steady markets, improved quality
and increased quantity, better prices and profits and improved livelihood.
Main words : NTFPs ,income,markets, Enterprises, Markets, information , profits, livelihood.
1. INTRODUCTION AND OBJECTVES
This paper, describe an activity undertaken within the framwork of the activities of TREE AID
UK in collaboration with SAHEL ECO Mali In the Northern Mali, within the framwork of the
project ‘ Village Tree Enterprise project in Tominian region.The aim of the project is to support
sustainable forest resource management, develop sustainable forest enterprise sector for
improved livelihood and conservation and shift min set in business approaches. The project
used the Market analysis and Development approach to build and support Mini, Small, and
Medium forest Entrepreneurs involved in the collection, production, transformation and
marketing of Non Wood forest Products face a number of challenges in undertaking their
activities. The challenges is generally linked to insufficiencies and in must cases lack of
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2. verifiable market information linking production basins which are generally far off rural areas
(supply zone) to urban centres where the market demand exists and amongst the Actors
themselves. FAO Forest connect 2010. The NTFPs market is generally characterised by an
unstructured market chain with gaps in price between production basins and urban markets.
The market information is lacking both for the producers who seek markets for their produce
and for traders interested in acquiring bulk quantities of supplies. This situation leads to many
constraints like lack of equity in the NTFPs market, discrimination, small scale and informal
sales, dominant intermediaries, lack of market outlets, volatile prices, and lack of information
that can link supply to demand. These constraints contribute to the so-called poverty trap and
have resulted in the generally unfair prices offered to villagers, especially the very rural
producers. Furthermore, the situation also leads to the minimisation of the contribution of the
sector to the National economy and thus neglects from the State agencies, Business
development and financial services, a major hindrance to the development of the entire sector.
Other challenges facing exploitation of NTFPs in Mali include lack of an appropriate mechanism
linking demand of markets to supply of production basins; producers are generally ignorant of
market prices of the products, causing enormous income loss. Beyond this is a legal framework
that is not conducive to the Actors. These constraints contribute to the so-called poverty trap
and have resulted in the generally unfair prices offered to producers. From 2005, TREE AID
have been intervening to improve these business through the value chain development
approach. Through FAO’s1 market Analysis and Development process, the business and
capacity of the Actors were strengthened. The Market Analysis and development process
involve, analysing local potentials, markets, Actors, business and socio cultural environment,
leading to the production of a business plan or enterprise development plans. Through this
participatory process, Actors identify potential resources in their communities, the markets,
Actors involve in promoting the produce, and other Actors involve in the exploitation of the
produce and also provided with trainings on sustainability and gender. After the various capacity
building on business development, one challenge was identified, the poor market network and
information flow that can enable effective marketing and feedback between Producers and
markets.
To resolve the persistent challenges of marketing, TREE AID, Sahel Eco designed and
facilitated the implementation of a community radio based Market Information System (MIS) with
local actors, the aim of the Market information system is to in linking Producers to Markets and
building a ‘win-win’ relationship between the Actors in the NTFPs2 value chains in general.
allowing a permanent contact between producers and wholesalers and reducing excessive price
variations. As a result of this initiative, the market is opening up and Producers are now more
equal business partners in the NTFP value chain. Through the initiative, NTFP traders were
able to capture new production zones, save enormously on time and transport costs and also
partner directly with producers in a transparent way
1
Food and Agriculture Organisation of the united Nations
2
Non Timber Forest Products
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3. 2. METHODS, TOOLS AND APPROACHES
2.1 TREEAID’s intervention
To establish a baseline, using the Market Analysis and Development approach of the FAO,
TREE AID and Sahel Eco conducted an assessment of household financial needs and gaps
existing to establish the financial need of the selected household. The profile of the inhabitants
in the communities were also undertaken to determine the level of Poverty and the contribution
that NTFPs can play in the household incomes. After this stage, initial mapping of the entire
NTFPs value chains commercially viable and its various actors intervening from the producers/
Collectors to the Buyers, Transporters, wholesalers and exporters, government officials and
potential finance institutions and BDS3 that support the chain. The next stage was to look at the
markets, socio cultural and technological environment around the selected NTFPs. After all
these analysis, the Actors where selected and advice to form groups according to their
intervention areas, i.e. the produce in which they exploit and the level of exploitation in the value
chain, Collector/Producer, Transformation, Commercialisation, Exporter and so on.
Analyses of the above data collected showed that 70% of those involved in the Production and
marketing of the NTFPs were in the rural areas were Women , they undertake the collection /
picking of the products after which they undertake semi Transformations and marketing in the
village markets. These Women undertake all the production and transformation process by
hand , individually and sell at any price. Market agents from urban areas and Village bulk
Buyers determine the selling price. The quality is general poor and the Women lack the capacity
to improve on their products. Money obtained from the sell of these products are very important
for the family subsistence and general expenditure sometimes constituting between 30 to 90 %
of household income
2.2 Action by TREE AID and Sahel Eco
TREE AID and Co, introduce the MIS 4 in order to link Production to Market through affordable
and simple means. To do this, activitiess were undertaken aimed first at improving the
production system and to facilitate an equitable market access through mobile phone, internet
commercial FMs and community radio based market information system. Activities were
undertaken with key actors of the chain in order to introduce the aspect of equity into the chain
and enable producers to have better market access and benefit sharing mechanism. After the
establishment of the MIS, another challenge cropped up, i.e. the quantity and quality of the
produce and respond to feedback from the markets. In order to improve quality and increase
quantity to respond to the increasing demand due to the effectiveness of the radio, technical
trainings and business development skills and group dynamics were undertaken in
transforming to about 800 Beneficiaries, constituting 48 Groups in 16 communities, involved in
over 6 products (honey, Shea nuts and butter, parkia biglobosa, baobab tree products, tamarind
medicinal plants, etc…)
2.3 Methodology and approach used for the Market Information System .
3
Business Development Services
4
Market Information System
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4. Results from analysis of the Market Analysis and development process clearly showed that
verifiable market information to enable Actors (Producers and those involved in transformation
and Market agents and Bulk buyers) undertake appropriate business decisions and plan was
almost completely lacking especially in the rural areas ( Production zones) . thus the idea to set
up and implement a Market information System. To the develop the system, TREE and Sahel
Eco, chose a participatory approach. Wide concertation through focus groups discussion forums
and workshops was undertaken with the objective of having a consensus and same level of
understanding on the system. This exercise was undertaken with all Actors involved in the
market chain including the media and urban Traders and transporter. At the end of the exercise,
a simple system was widely agreed upon.
2.3.1 : Northern Mali NTFPs Market Information System.
To develop the system, a series of conThe MIS will consist of modern Information and
Communication Technology (Internet and mobile phones) traditional communication
approaches (FM radio and News papers) and indigenous system (ear to mouth) and
Enumerators or Data Collectors. After designing the functioning structure of the MIS, model
was presented to various stakeholders of the NTFP value chain: traders, producers, local
NGOs, partners and state agents. The model was then validated in a workshop, the focal points
were selected and the information transmission mechanisms clarified. The data collection tools
were also validated by the focal points. Community radios members gathered together in order
to harmonise their broadcast format for the MIS. An Adviser from Sahel Eco was put in charge
for the day to day follow up of the collection of NTFPs and the connection to the MIS. On the job
training was carried out with all the members of the associations, Journalist from three FMs
stations and a weekly news paper and additional management tools were developed.
MIS TREE AID & Sahel Eco model
Producteur
(zone Demande
Production) (Marché PFNL)
Point Focal (supply)
Point focale Central
SAHEL ECO
Médias
(Presse audio et écri
Radio / FM
D1 : Diagrammatic presentation of the MIS model
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5. 2.3.2 Functioning of the MIS
The market information system (MIS) is based on prompt interaction and information flow at
various levels. As the diagram portrays. Eight Trained Enumerators get information from groups
members at designated points in the production communities on pre established tables, using
their mobile phones; these information is send to a Focal person through SMS services. The
Focal person input the data collected into pre established collection tables, verify the
information, analyses and send to four FM radio stations and a weekly news paper from
broadcasting. The data is broad cased in the local Djoulla / Bambara and French languages at
prime time, The FMs stations diffuse the information three times a week. For the demand side,
those in need of the products have three possibilities, contact the local radio station, get to the
Focal point, or get to the Producer direct. Information diffused includes the Product, quality,
state, quantity, price offered, the Producers, their names, communities and contacts. On the
other end, focal points for demand covering the various market areas collect information on the
demand of wholesalers (quantity, quality, prices and contact number). This information is also
collated and sent to the FMs radios. Other important informations relating to the project activities
and markets are also diffused.
3. RESULTS AND DISCUSSION
Describe results (what happened/changed) and impact of interventions and lessons
learned. Reserve interpretations, speculations and conclusions for the next section.
3.1 The outcome
TREE AID and Sahel Eco have strengthened the capacity of the members of the 48 enterprise
associations by developing management tools (stock keeping, monitoring forms for sales
campaigns, revolving fund management, and book-keeping) that they are now using to follow
the NTFP campaign from the production, the evaluation of quantities, and the withdrawal of
funds from their bank account for the wholesale. Producers are able to contact wholesalers
whenever they have gathered sufficient quantities of products without passing through an
intermediary and they are now also aware of the NTFP market trends. The sensitisation of
producers in 16 villages (+1500 people) enabled them to understand the importance of grouped
sales and people are more ready to harvest new products demanded by the market. With the
MIS, the groups are more solid as selling prices of products have witnesses upward trends.
3.2 Impact of the MIS
The system have general positive results on establishing market linkages amongst the various
Actors and giving them more choice on selling and availability of produce. The Producers who
hitherto had very little choice as to whom to sell their produce and end up selling at very low
prices now have the power to choose where, when and who to sell their produce to.
Producers are able for the first time to carry out wholesales of NTFP at equitable prices (far
exceeding traditional retail prices) by posting their production on the MIS radio system.
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6. 1. On the entreprises :
The information diffuse by MIS
 The Rural Village tree Entrepreneurs have increased their business turn over and made
new clientele.. A litre of honey hitherto solda t 500 F CFA has increased to between
1750 FCFA – 2000 FCA also a kg of shea butter has moved from 350 FCFA to 1000
FCFA market prices.
 The Whole sellers and Bulk Buyers says, they are now getting better quality products
and in time.
 The Producers easily get feedback on the quality and quantity of their produce and can
react to the taste of the Buyers and Consummers.
 Many of the Producers who will end at the level of collection and selling of the produces
are now involve in value addtion activities.
Produits unité quantity PU Montant
Shea nuts kg 6 422 250 1 605 500
Shea butter kg 1 060 1 000 1 060 000
Néré Grains (
Parkia
kg 550 550 302 500
biglobossa
seeds)
Honey Litre 940 1 750 1 645 000
TOTAL business turn over 4 613 000
Table i : sells in some products three months into the MIS
Produits unité quantity PU Montant
1500000
Shea nuts kg 3000 50
175000
Shea butter kg 500 350
Néré Grains ( 87500
Parkia
kg 350 250
biglobossa
seeds)
150000
Honey Litre 300 500
1912500
Total business turn over for the period.
Table II: sells in similar product before the implementation of the MIS
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7. 4.CONCLUSIONS AND RECOMMENDATIONS
Its been a year since the Market Information System was launched, results and impact from the
pilot evaluation showed a very positive results and an activity that was programmed for a
maximum of six months is now going to more than a year and have attacted the attention of
many other development Actors and the state of Mali. Current , the WWW Foundation and
European union, Sahel Eco and TREE AID are developing a new project for the way forward of
the MIS named ‘ VOICES’ to be launched in the month of November 2011. This is going to be a
more sophisticated and technologically advanced form of Market information system. The
current system is a bit labour intensive and requires relatively high level of literacy, not very
available in these rural areas. Furthermore, the system requires sending of sms code, a bit too
sophisiticated for the local Producers.
The Primary Beneficiaries, affirms that the introduction of MIS in their area is a life changing
experience,
Despite the success registered in the implementation of the MIS in TOminian, alot need to be
done at the level of preparatory cost, implementing such an activity necessitate alot of
resources that will hardly be self sustaining without external intervention. Also the apparent lack
of interest in the whole exercise by the state agents and local administrative authorities put
doubts as to the sustainability of the system.
The lessons learned
Viable, prompt market and technical information is one of the key to successful improvement in
livelihood and food security in Africa . Information offers more than just good profits and yields
and better products, it offers the ability to make choices to the Actors, choices on who to sell to
and not to sell, choices on when to sell and where. Another important lesson market information
is an effective entry point for empowerment for marginalized and vulnerable groups in a value
chain and for neglected and underutilised Products. Another lesson is that working with various
actors at different levels of the value chain rather than isolated actors creates opportunities for
each actor and develops the entire NTFP value chain. Further lessons, the need to get
Beneficiaries involved when developing a tool that will involve them, the Actors, today ‘own’ the
MIS in Tominian and are ready to contribute an amount for the process to go on. Also the need
to complete and compliment tools and approaches.
8. Références
 Rapport mid parcours des activités de SIM Tominian pilote ; Amadou Tangara, Sahel
Eco antenne Tominian. ( 2010)
 Rapport , Impactes de systemes d’information de marche mise en eouvre par ONG
TREE AID et Sahel Eco : Amadou T et Elvis Paul. ( 2011)
 FAO Market information Systems.http://www.fao.org/docrep/W3241E/w3241e0a.htm
 Marketing information systems for non-timber forest products Community
Forestry Field Manual n.6 CTA

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8.  Système d’information sur les marchés des produits forestiers non ligneux au Sud
Cameroun : Fidele Mekongo, Raoul Ngueko : June 2008
 Atelier d’harmonisation et de lancement du système d’information sur les marchés
des PFNL au Sud Cameroun : rapport final Septembre 2008
 Rapport d’évaluation de la première phase du système d’information des marchés des
PFNL
 Système d’information sur les marchés des produits forestiers non ligneux : Rapport des
ateliers de lancement de la deuxième phase : Raoul Ngueko SNV Cameroon ; Février
2009
 Mobilisation et renforcement des capacités des petites et moyennes entreprises
impliquées dans les filières des produits forestiers non ligneux en Afrique Centrale
 Appropriate technology, volume 38, No.3 (2011)
 Ajaga N. (2004) why poor people remain poor ( Descholar press)
 Non-Wood Forest Products for rural income and sustainable forestry FAO (2005)
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