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: 22 April 2016; Hits: 7602

Narok to get first frozen French fries plant

A KSh1.02b frozen potato chips factory will be set up in Narok, after the county government signed a deal with Upland Crops.

The deal was struck at the Narok Investors’ Conference held on December 3-4, and aims at bridging the local and international demand for potato chips.

Upland Crops is a subsidiary of the United Millers Group, which has been in business in Kenya since 1977.

Consumption of potato chips in East Africa has been on an increase due to the rapid urbanisation.

Demand

The proliferation of fast-food restaurants and a change in eating habits among both high- and low-income groups in urban areas has increased the demand for potato chips, also known as French fries, by 10-17 per cent annually.

However, commercial processing of potatoes into chips has been slow in growth, forcing most restaurants and hotels to either make their own chips or import from Egypt, Belgium, The Netherlands and South Africa.

For manufacturers, chips production holds the potential to profits of up to US$200 (KSh20,000) for every 100kg produced.

This is part of the earnings that Upland Crops is eyeing, even as it creates 100 new jobs in the county.

Currently, 175,000 acres of land in Narok is available and suitable for potato cultivation with the average annual production being approximately 110,000MT.

The forum

A total of Sh54.7b in investments, spanning across Agriculture (Sh28.35b), Education, Healthcare, Infrastructure, Energy and Tourism, was confirmed during the December 3-4 summit. The new projects are estimated to bring a total of 3825 new jobs.

A further Sh132b investment, attached to 4750 new jobs, is in negotiation.

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: 22 April 2016; Hits: 6225

Reprieve for barley farmers as exporter steps in

The barley market is bound to grow after the Narok County government and SAMM Ventures signed a deal for the establishment of a KSh24b exports firm of the cereal in the region.

The deal formed the majority of the KSh28.3b investments signed during the first Narok investors’ conference held on December 3-4.

Narok has been one of the main barley cultivation hubs in the country, supplying the East African Maltings Ltd (EAML).

EAML, however, cut its buying capacity to 47,000 tonnes in 2015 from 67,000 tonnes in 2014.

EAML is the main supplier of barley to East Africa Breweries Ltd, but it has been struggling to get rid of purchased barley even as the market moves to other cheaper options for brewing like sorghum.
“We had a target of 55,000 tonnes last year but in the February/March season, we received 67,000 tonnes, which we still have in our stores,” EAML General Manager Laurence Maina said.
But the deal between Narok Governor Samuel Tunai, and SAMM promises better tidings for the region’s farmers, who will now have a bigger market for their produce.

The SAMM operation in Narok will further create jobs for more than 500 people.

The conference

A total of KSh54.7b in investments, spanning across Agriculture, Education, Healthcare, Infrastructure, Energy and Tourism, was confirmed during the conference. The new projects are estimated to create a total of 3,825 new jobs.

A further KSh132b investment, with the promise of 4750 new jobs, is in negotiation.

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: 22 April 2016; Hits: 6739

Tomato paste plant worth Sh1.02b in the offing

A ray of hope may soon crack for Narok farmers if a KSh1.02b deal is signed for the construction of a tomato paste plant in the county.

The news comes against a backdrop of low production of tomatoes, which is partly blamed for framer's difficulty in accessing markets. The county government is in talks with potential investors for the project, with an agreement expected soon.

The total amount of land suitable for tomato cultivation in Narok County is approximately 500,000 acres, with a potential of more than 60,000MT, yet the current annual production is approximately 3,000MT, only.

In December, Governor Samuel Tunai secured more than Sh54b deals during an investors’ conference held in his area.

Of the total amount, Sh28.4b went to agricultural projects, with a further Sh2.5b, of which the tomato paste plant deal is a part of, still in discussion.

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