Preparing Farmers to be Reliable Suppliers

1
Preparing Farmers to be Reliable Suppliers

• Lessons from Kenya

2
Sources of Information

• Five Studies 2002-07

3
Farm-agribusiness linkages case studies - Tom
Wambua

• Context
• Linkages established in several sectors
  horticulture, rice, dairy, tea
• Linkages have to an extent created mutual
  business success
• Different degrees of success among sectors and
  participants

4
Farm-agribusiness linkages case studies - Tom
Wambua

• Development Objective
• Stable income generation by strengthening
  farmer-agribusiness linkages

5
FFS networks-agribusiness linkages KACE

• Context
• High-potential region comprising small farmers
  who produce at subsistence levels
• Benefits of the improved technical know-how will
  not materialize if farmers cannot access reliable
  markets
• Farmers risk exclusion from dynamic urban markets
  increasingly dominated by supermarkets

6
FFS networks-agribusiness linkages KACE

• Development Objective
• Reinforce agribusiness linkages between farmers
  in FFSs and agribusinesses

7
Enterprise development in coffee-based farming
systems CABI

• Context -
• Prices and returns have fallen
• Productivity and quality continue to decline
• Household income likewise has declined

8
Enterprise development in coffee-based farming
systems CABI

• Development Objective -
• High quality coffee and complementary high-value
  commodities

9
EurepGAP compliance costs R. Nyagah and G.
Watene

• Context
• Small and medium enterprises must meet major
  retailer requirements
• Cost of compliance has reduced the margins of
  producers
• Some have been left out of the compliance net

10
EurepGAP compliance costs R. Nyagah and G.
Watene

• Development Objective
• Cost reduction in order to enhance smallholder
  participation in marketing channels for certified
  products

11
Intervention Strategies and Actions
12
Improving Productivity and Product Quality
13
Intervention Strategies and Actions

• Viable seed supply systems
• Ensure inputs are packaged in sizes that are
  affordable to farmers
• Bulk buying to give members low-cost, quality
  seed
• Enterprise combinations that have synergistic
  benefits

14
Intervention Strategies and Actions

• Training on GAP regulations, control points,
  compliance criteria
• Training in sorting and grading
• Improve value addition through packaging and
  branding
• Develop systems for enhancing traceability

15
Improving Marketing and Business Management Skills
16
Intervention Strategies and Actions

• Capacity building should build skills for
• understanding prevailing market conditions
• using marketing information
• farming as a business
• making decisions based on informed choice
• simple financial management

17
Intervention Strategies and Actions

• Capacity building should build skills for
• determining how well doing in farming enterprise
• evaluating alternative contractual arrangements
  and negotiating contracts
• leadership and group management
• lobbying and advocacy

18
Intervention Strategies and Actions

• Link into market information systems operated by
  service providers such as KACE
• Crop inventory database to match what markets
  offer
• Investments by FFS networks into ICTs computers,
  Internet, mobile phones
• Business development services

19
Linking Farmers and Agribusiness Companies
20
Intervention Strategies and Actions

• Skills for shipping the right quantity and right
  quality at the right time
• Joint activities for economies of scale - group
  marketing, bulking of produce
• FFS capacity for planning, feasibility studies,
  contract farming
• Meetings between FFS and the input suppliers and
  buyers

21
Intervention Strategies and Actions

• Systems for farmer group certification
• Improve quality of transport arrangements to
  avoid degradation
• Marketing channels that eliminate unnecessary
  links in chains
• Strengthening of local analytical and
  certification institutions

22
Other Observations
23

• Need evolution in strategies and skills as make
  transition from chance marketing to participation
  in organized market channels
• Particularly for perishable products - farmers
  and firms must synchronize production,
  transportation and processing
• Need for innovative cost-sharing mechanisms to
  meet required investments

24
Thank you!