Maize supply chain Good storage facilities for maize are lacking in Madagascar. Therefore, maize can only be stored for a limited period of time, resulting in large prices fluctuations, poor quality and considerable storage losses. This project aims to set up a storage and drying facility in order to improve the supply and quality of maize, as essential ingredient for animal feed, human consumption and other agro-industries.Applicant Agrobulk Ltd (Mauritius) is active in the unloading and storage of bulk products mainly for food processing companies. It is part of the Food and Allied Group in Mauritius, which is currently the main importer of maize in Mauritius. Over there, all maize is currently imported from Latin America. The strategy for this company is to be able to import maize from Madagascar in the future. The local company is LFL Madagascar, a producer of animal feed. This is a sister company of applicant Agrobulk Ltd. LFL Madagascars animal feed, mainly consists of maize from Madagascar. This project will enable LFL Madagascar to obtain a more stable source of maize.In three different maize producing areas (Analamanga, Boeny, Vakinankrata) small silos will be set up. Farmers will be able to store their maize against a fee. In this way, they will be able to sell the maize during times when market prices are higher. Via MFIs farmers will be able to get an advance payment, based on the value of the maize stored in the silo.The joint venture partners will also support farmers to improve the maize yields by providing technical assistance. On a nucleus farm, project partners will start introducing mechanisation of maize production. Smallholders will be trained to use mechanised equipment, and in a later stage, equipment will be rented to smallholders as well.This project can lead to improved maize production. Madagascar may eventually become a maize exporting country. Many farmers will benefit from this project as well.Corporate Social Responsibility (CSR)The forty employees directly working for the silos will benefit salaries that are much higher than average, and above minimum living standard. All employees will receive training on technical issues, but also on social issues, e.g. security, health and HIV/AIDS prevention, although HIV/AIDS is not really an issue in Madagascar (infection rates are comparable with Europes infection rates).All employees will receive official labour contracts (40 hours weekly); overtime will be voluntarily, no longer than 12 hours and will be paid extra. All employees will receive social security package (Retirement and health care). For the mechanised maize farming, chemicals and manure will only be applied at a minimum and under strict safety rules. The project partners will encourage gender employment (30% of the staff is expected to be female).The storage and drying facilities will obtain an international standard on quality and food safety.Impact•	Employment and working conditionsAll forty employees will get official labour contracts, offering wages above living wage. Additional provisions will be provided for, e.g. healthcare, pension and unemployment insurance. All employees will receive training.•	Innovation / Transfer of knowledgeSilos as such are not new for Madagascar, although these are not very common either. LFL Madagascars competitor for example, Agrivet, has three silos at the premises of their feed mill. They do however mainly purchase the maize from collectors and have hardly any direct contracts with farmers. The business model whereby the farmer can rent storage for their maize is entirely new for Madagascar. Farmers currently store their maize in big bags or bulk in warehouses, without humidity and pest control. Fumigation of maize in silos is almost none existing in Madagascar. This project will also lead to better traceability of maize. The partners want to be able to have the operation internationally certified (food and feed quality standards, not specified yet). The storage system can also lead to a new credit system, whereby farmers may get credit from Micro Finance Institutions (MFIs) based on the volume of maize stored in the silos. A similar credit system already exists in Madagascar for rice (which is stored differently).The other part of the project, the mechanisation of maize farming, is not entirely new either. The cooperation partner, Fuelstock, has already started to grow maize on 50 ha. By investing in more hardware (e.g. combine harvester) this mechanisation will be expanded. Furthermore, this project will involve thirty farmers to be trained to implement mechanised farming. It is expected that eventually the partners will be able to rent out farm equipment to farmers.•	Chain effectsDuring the pilot phase about 15,000 smallholders will be able to deliver the maize to the storage facility. It is estimated that (only) 1,500 of these farmers will choose to pay for the storage and sell their maize at a later stage in the season when maize prices are higher. It is expected that these farmers will be able to get loans based on the maize stored. These farmers will obtain a certificate, stating the volume and minimum price of the maize stored. This will lead in the end to better prices for farmers. This extra income can be spent on better inputs for farming, resulting in even higher yields and income for these farmers.The project will do business more directly with smallholders, making the pricing more transparent. Collectors will not completely be let out of this model. These (former traders) will be offered to play a role in the logistics of the project. The joint venture will contract these parties as transporters then.The project will furthermore train farmers to improve agronomic skills. 600 key smallholders will be trained in farmer field schools. It is expected that these 600 farmers will in their turn, teach fellow farmers.Furthermore, a group of relatively big farmers (30) will also be trained on using mechanised equipment for farming. Eventually a rental system for mechanised equipment will be set up.The farmers paying for storage can be considered as customers. These farmers will be able to obtain better prices for their maize.The major customer for the maize will be LFL Madagascars feed mill company. LFL Madagascar will be able to purchase more stable, better priced, higher quality maize. In this way the feed mill of LFL Madagascar will be able to produce higher quality better priced certified animal feed.In the future (in the spin off period), when more maize is produced, the project partners will be able to export to other islands in the region as well.•	Impact on the sectorProject partners will cooperate closely with the Agricultural College Tombontsoa in Antsirabe. At this school one of the feed mills will be installed, enabling Tombontsoas students to get practical experience with maize storage. Tombontsoa will also play a role in training farmers on better agricultural practices.•	EnvironmentAn Environmental Impact Assessment (EIA) will be part of the programme.•	Position of women30% of its staff will be female, mostly in higher positions. Most smallholder farmers will be women as well.•	Impact on food safetyIncreased production of maize and less storage losses will inevitably lead to improved food security. To set up three storage and drying facilities to process maize both for the internal market as well as the export market, in the future.