Smart farms

: 23 November 2016; Hits: 8495

Farmers access loans with stored grains

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Officers inspect fertiliser in an Eldoret Depot.Storing grains in warehouses can help farmers access farm input and other expenses credit facilities. PHOTO BY BUSINESS DAILY.

Farmers storing maize and other grains in warehouses can access farm inputs and emergency credit facilities of more than 70 per cent against their cereal value from agro-dealers and banks.

Besides, the farmers would enjoy better prices of more than 40 per cent because of the delayed sale of the grains until prices are high.

It costs between Sh10 and Sh20 to store various grains in Eastern Africa Grain Council (EAGC) certified warehouses.

Maize producing farmers sell the grains between Sh1,800 and Sh2,100 especially during planting seasons to raise capital for the inputs. Others do the same to meet other demands like school fees.

But delayed selling of maize can earn up to Sh3,000 or more given that after harvesting, losses result in a drop of the quality maize available for sale to millers and for local market consumption.

EAGC Executive Director Gerald Masila said farmers, who have organized themselves into groups, deliver grains to the organisation’s accredited 53 warehouses through 139 village aggregation centres (VACs) across East Africa.

Each of them is issued with a G-vouchers confirming the quality and quantity delivered. The vouchers can be used to access credit from appointed agro-dealers as well as partner financial institutions.

“Banks come in once the quality of the grains has been verified, received and stored in warehouses. The banks use RATIN, an EAGC’s market information system, to determine the prevailing value of the produce. Farmers are given credit of between 70 per cent and 80 per cent of the grain value,” Masila said.

The grains are sold when the prices are optimum. The loan and storage costs are deducted and the farmer is given the balance.

Grains are sold through an online platform, G-Soko. NAFICS Grain Trading Limited, a grains selling company working with the warehouses in Kenya, Uganda and Tanzania recently sold about 200 bags of maize at Sh3,000 after five months.

The company had bought the maize at Sh2,100 and stored the consignment in the EACG certified warehouses.

Masila was speaking during the FoodTrade East and Southern Africa conference in a Nairobi hotel, where UKaid agribusiness grantees converged to learn more from one another.

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: 22 November 2016; Hits: 8859

G-Soko and warehouses save farmers over 30 per cent grain loss

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Trucks line up to deliver maize to the National Cereals and Produce Board. Online grain selling platform saves farmers over 30 per cent losses. PHOTO BY BUSINESS DAILY.

Farmers aggregating and selling grains via online platform, G-Soko, are saving more than 30 per cent of their harvests due to access to quality storage facilities besides profitable markets.

G-Soko, which is an online system serving farmers in Kenya, Uganda, Tanzania, among other great lakes region countries, links the agro-producers to ready bulky-buying markets.

Eastern Africa Grain Council (EAGC) officer Sam Rutto said farmers lose more than 30 per cent of the harvest to poor storage and handling procedures ahead of selling.

A part from losses to pests like rats, weevils and moths, poorly dried grains are invaded by aflatoxins, which render them useless.

Farmers dry the produce to at least 13.5 per cent moisture content. They deliver the grains to the 139 village aggregation centres (VACs) in Kenya, Uganda and Tanzania.

“Across the region, farmers have benefitted from improved storage solutions, which have enabled them to sell their produce at prices between 15 per cent and 30 per cent above the current market prices,” EAGC Executive Director Gerald Masila said.

The weight, quality and other details of the consignment are captured and profiled against the farmer’s electronic database. They have, however, to do it in groups, through the VACs.

The grains are moved to the 53 regional EAGC certified warehouses for storage until the farmer decides to sell.

For every 90kg bag, the farmer incurs a cost of between Sh10 and Sh20, depending on the type of grain, Masila said.

“Fumigation and storage in inspected warehouses keeps off destruction agents like pests and weather agent like rains. The produce remains safe until the price is high,” the director said.

Other companies like Grain Trading Ltd can also buy the grains from the farmers while at the warehouse.

Millers of maize, for instance, can buy the produce in bulky, from the stores at better prices than those offered at the ‘roadside’.

Instead of other farmers selling their maize at throw away prices to meet next season input cost, they can secure soft loans of up to 70 per cent through the G-vouchers, which will be deducted later.

“EAGC scouts out on the best prices for farmers. It is not about the price offered by the buyer, but the profit a farmer makes through the sale. EAGC helps reduce the cost of production for the farmer to make profits,” Masila said.

Although the National Cereals and Produce Board offers slightly higher prices to farmers, the long delivery queues eat into the profits of farmers, who have to pay for the extra man hours and the number of days the truck waits to offload the cargo. The cereals may also not be in good state at selling time.

The G-Soko system also alerts farmers on the grains on demand through East and Southern Africa.

More than 50,360 metric tonnes have been traded with the help of the online platform.

G-Soko is one of the grantees of the Food Trade East and Southern Africa projects funded by the UKaid and implemented by the DAI.

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: 18 November 2016; Hits: 8634

Online advertiser, OLX, opens retails for farmers

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Trans-Nzoia Governor Patrick Khaemba hands over fertiliser to farmers in Cherangany. OLX has partnered with Mavuno Technology and other companies to sell agro-inputs to farmers. PHOTO COURTESY: THE STANDARD.

Farmers, who have been facing challenges in buying goods through the online advertising platform OLX, can purchase input and products the company’s physical shops.

This is the third step the company is taking to capture into the sector a few months after launching an agribusiness online advertising section and a potato SMS for non-internet farmers.

OLX Kenya manager Peter Ndiangui said farmers can buy seeds, fertilisers, agrochemicals from its two outlets in Nyandarua and Nakuru, and promised to that more centres for agriculture hot-stops are in the pipeline.

Previously, suppliers of farm produces and other goods posted photographs of their ware online for interested to see before proceeding with buying plans.

But the company is now working with other agro-dealers like Mavuno to take the goods closer to the farmers.

Other companies in the partnership are Osho Chemicals, Soil Cares, among others.

The centres will give farmers a quick access to the input after placing an order, Ndiangui said.

On a welcoming note, OLX has partnered with Mavuno to offer 15 per cent discount.

Among the commonest products on sale on this site include cattle, chickens, tomatoes and other fresh produce.

The firm entered the Kenyan market as an online advertising agent for connecting buyers and sellers of machines, household items, office stationery, vehicles, clothes, among others.

Sellers post a product, the price as well as their contact for interested buyers.

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