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    tomato farming kenya

    By George Munene

    For three months, tomato prices have risen exponentially in the country. From a low of Sh700 for a 30-kilogram crate at the closing months of last year, a similar crate at the farmgate now fetches a premium price of Sh2000.

    At Nairobi’s Muthurwa market the wholesale price of a medium-sized wooden crate is between Sh7000 and 8000. The price of a 40-kilogram wooden crate of Ethiopian tomatoes is Sh3500 while that of a 30-kilogram bread crate of Kenyan tomatoes fetches between Sh3200 and 4000, Sh75-85 per kilogram.

    At the heart of this price, inflation is that with uncharacteristic poor rains for the past one and half months there has been corresponding low yields from tomato farmers in the country. This owes to Kenyan farming remaining predominantly rainfed, explains Joshua Mamwaka, a wholesale trader at Muthurwa’sWakulima Market.

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    Horticultural farming, with its low barrier of entry and exit has also encouraged speculative farming which leads to mass rushing into and out of agriculture creating artificial bubbles.

    Tomato prices have also followed a similar pattern; farmgate prices hit a record Sh 80-100 per kilogram in February of last year. This was largely caused by the December short rains which persisted into January and February. “This drove speculative farmers looking to cash in on the momentarily inflated prices into growing tomatoes. Kenyan traders also crossed the border into Tanzania at Kimana, Loitokitok bringing back trailer loads of tomatoes. This flooded the market causing prices to plummet to as low as Sh25 a kilogram, Sh 300 for a 30-kilogram bread crate. This saw many of these farmers abandon tomato farming, a lacuna that has left the few farmers who persisted to supply an underserved market.

    In what has been a volatile market, even the principles of economics have been overturned: “There was a time in February when the farmgate price of tomatoes exceeded their market price, driven by a mix of low local production and imports from neighbouring countries.

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    Tomatoes are by volume the most consumed vegetable by Kenyans, yet, perhaps more than almost all widely eaten vegetables, they are the most perishable. Even as truckloads of tomatoes begin to trickle in from Ethiopia and Uganda mama mbogas and tomato resellers are having to sell tomatoes at no profit or a loss just to retain their customers,” Mamwaka elucidate. 

    While it might be a fool's errand forecasting future trends in the erratic tomato market, it might not be all too surprising to see a mass ‘gold rush’ into tomato growing in the coming weeks and a subsequently flooded market around July. 

     

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    Investing in Agribusiness Primary Production 2019

    By George Munene

    Family Bank has partnered with USAID’s Kenya Investment Mechanism, committing to disburse loans worth Sh500 million to agribusinesses in 17 counties over the next one year.

    The initiative dubbed ‘Pay for Results’, will provide financing across the dairy, horticulture, livestock and energy agricultural value chains. The counties targeted are Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir.

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    “The agri-business sector faces challenges accessing affordable credit and technical support. Through this partnership, we will provide affordable credit and capacity building to our SME customers to nurture sustainable agri-businesses,” said Family Bank Chief Executive Officer Rebecca Mbithi.

    “Such private partnerships are important, especially in the wake of the COVID-19 constraints on the Kenyan agricultural market in order to ensure timely and continued operation of the food supply chain,” she added.

    At the projects Roger Bird, USAID’s Kenya Investment Mechanism Chief said, “We are glad to have Family Bank join us to address the low lending to agriculture. We are constantly looking for partnerships with organizations that are eager to finance agribusiness. Through this partnership with Family Bank, we will create new financing products that better fit the cash collection cycle of agribusinesses in the selected counties.”

    Related News: Financial services company offers new loan access for exporting farmers

    Family Bank has also entered into a fodder financing agreement with Performeter Agribusiness and Ndumberi Dairy Farmers Co-operative Society that is set to double dairy farmers milk production to 30,000 liters per day.

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    Kagoka Foods

    By George Munene

    Kagoka Foods, an Agritech startup and social enterprise is partnering with small-scale farmers to promote the growing of tuber, root and banana crops in Kenya by giving them a market for yams, arrow roots, pumpkins, sweet potato and bananas.

    The company has a focus on promoting the growing, processing, value addition, packaging and marketing of indigenous, high-value traditional and other food crops. These include pumpkins, arrow roots, cassava, yams, sweet potatoes and bananas.

    For farmers to qualify as Kagoka Foods Limited growers they will need to be registered and have the quality of their farm produce confirmed. 

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    Harvesting from farmers is done through a controlled process that avoids losses. The produce is then weighed and farmers are receipted. Delivery vans pick up produce which are efficiently delivered to warehouses for processing and packing before orders are prepared readied for dispatch. Through their easy-to-use marketplace app website (kagoka foods), and app (androidappsap kagoka-foods), vendors and consumers are able to easily place their orders. The produce is then delivered to the client’s doorstep free of charge. 

    These cheap and organized logistics help bridge the gaps between small scale farmers and the wide urban market platform delivering to clients through efficient and timely processes.

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    The company is based on Kagoka Avenue Golf View Court, Kenyatta Road Estate off Thika Road, Nairobi. It also links small-scale farmers, women and youth farmers providing a channel for them to sell their produce to local vendors, hypermarkets and the export market while creating job opportunities. This ensures fair, transparent and market competitive prices for their pool of farmers which raises their incomes. 

    Small scale farmers interested in partnership can email; This email address is being protected from spambots. You need JavaScript enabled to view it. or SMS on 0780407558 for additional details.

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