Smart farms

: 11 April 2018; Hits: 12614

Kenyan flower and vegetable farmers to learn new ways to make money in farming at trade trip in Netherlands

farmers1 Frmers learning on various farming practices during a past agricultural show. Kenyan farmers especially from horticulture sector are set to benefit from a trade mission in Netherlands come June this year. Photo: courtecy.

Changemaker International and Capacity Africa have organized a trade mission for Kenyan agribusiness stakeholders to Netherlands to study innovative food production systems and agricultural export models.

The three-day mission, slated between June 11-15^ththis year, with a strong emphasis on horticulture but incorporating general agribusiness seeks to expose Kenya to the world’s best developed and sustainable economy driven by innovative agribusiness production, said spokesperson John Karegwa, in a statement.

Other partners include Greentech Trade Expo, biggest horticultural trade show in the world (www.greentech.nl) and the Netherlands Export Combination (NEC).

“The key objective of the mission is to strengthen local production systems, access to international markets, stimulate local food production and expand investment opportunities in agribusiness”, Mr. Karegwa added.

Experts and visionaries from the international horticultural industry, research institutes and governmental institutions will share their insights and experience with the Kenyan delegates.

Specific direct benefits are opportunities for financing, subsidies on machinery and equipment; sales contracts from Netherlands as well as technical assistance.

Trade volumes between the two countries stood at Sh60bn in 2016 with Netherlands being the third largest trading partner for Kenya. Key Kenyan exports to Netherlands include horticulture with Kenya importing machinery, chemicals and services.

Netherlands is the second largest exporter and importer of agribusiness products and has positioned itself as a world leader in cutting edge agricultural innovations.

Why the Netherlands?
Netherlands is a tiny country of 42 km2 but is the second largest exporter of agricultural produce after the US. It is the hub of advanced horticultural development for more than 50 years and provides the best lessons for developing agriculture economies like Kenya’s.

While Kenya counts on agriculture for contribution to household and national incomes, with 80 per cent of the population depending on it for survival while contributing 65 per cent of all foreign earnings, the sector remains heavily underdeveloped with harvest wastage, poor marketing, low uptake of technology and weather changes conspiring to rob farmers’ earnings across the value chain.

The trade and investment mission therefore hopes to attract buyers and investors to Kenya even as it showcases the milestones in the sector. Participants will benefit from information sharing, market access and potential financial support.

Participants will also visit GreenTech Expo in Amsterdam, one of the leading horticulture and agribusiness exhibitions in the world with over 5,000 exhibitors, buyers, suppliers and investors in the sector.

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Other key events planned during the visit include business workshop on industry best practices and opportunities available, matchmaking of Kenyan potential investors, buyers and suppliers, visiting horticultural farms and factories outside Amsterdam and business to business networking forums among other activities. The idea is to allow participants learn from the rest of the world how to maximize innovations and produce cost effectively.

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: 10 April 2018; Hits: 13082

Sacco offering soft loan to farmer groups

farmers benchmarking

Frmers during a past agricultural event. Small-scale farmers can now access loans with an interest rate of 1.2 per cent to help them boost their production.

Solution Sacco Limited, a savings and credit sacco is offering up to Sh20,000 loan to groups of smallholder farmers who lack financial might to start up or advance in agribusiness and repay the loan at 20 per cent interest rate enabling the farmers to boost their production to cope up with the rising demand of crop produce.

Lack of finance has been attributed as the main cause limiting small-scale farmers to venture in agribusiness, according to a report released by the Alliance for a Green Revolution in Africa (AGRA) in September 2016.

The report further indicated that the gap for entrepreneurs in need of funding is between $1.25 million (Sh125 million) dollars and $1.50 million (Sh150 million) dollars to take their agribusiness to the next level of growth. This is the gap Solution Sacco Limited among other financial institutions is seeking to bridge with farmers within its reach.

“We as a sacco recognise that the lack of finance has seen many farmers opting for agribusinesses stagnate making it difficult for the country to realise its true agribusiness potential,” said Samuel Kainga, agronomist at Solution Sacco Limited.

The sacco was convinced about the farmers’ need for financial support after a successful pilot programme which involved about eight farmer groups within Tharaka Nithi County which ended last year February.

“We tested the workability of this financing system last year on sorghum farmers who in total had about 14 acres and it was 80 per cent successful giving us the confidence to roll it out in other counties and regions,” said Kainga.

To access the loan, a farmer need to be in a group of about 5-10 farmers as most smallholder farmers just own small pieces of land. The sacco’s officials visit the farmers’ premises where they calculate the budget for farm inputs, labour and transport.

Once everything is done, a loan agreement between the sacco and the farmers is signed where the farmers are required to contributed 20 percent of the total production cost while the sacco provide the remaining 80 per cent.

“We carry the bigger percentage of the whole production cost because we believe in the support to the farmers. However, in any case the farmers would want to take more than 20 per cent, we still allow that under our loan agreements,” said Kainga.

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The first month upon the disbarment of the loan is the grace period then the following month farmers are supposed to start repaying the loan at Sh240 per acre per month though the repayment can be less or more the amount depending on the total loan offered.

In addition to financial support, the sacco also offer services such as insurance in case of crop failure, extension services and market services.

We do not leave our farmers until we ensure they sell their produce, said Kainga, this is by linking them with the buyers who after buying pay through our sacco accounts then we release the money to the farmers.

The sacco is currently in need of as many farmers as possible targeting Meru, Tharaka Nithi, Isiolo, Kitui and Narok counties for the start as it aims to expand countrywide.

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: 09 April 2018; Hits: 13570

Macadamia value rises by 19 per cent leading to high demand

The demand for macadamia nuts is at an all-time high as earnings from the produce increased by 19 per cent in 2017 as compared to 2016.

According to the Nuts and Oil Crops Directorate report of 2017, the value of the crop rose from Sh4.3bn in 2015 to Sh5.1bn in 2017 due to expansion of the global market and subsequent increase in prices of a kilo from Sh70 in January last year to between Sh160 and Sh180 currently.

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The report reveals that the area under cultivation of the crop increased from 15,512 hectares in 2016 to 16,153 hectares in 2017 thereby leading to improved production of 41.614 tonnes compared 39,821 tonnes realized in 2016.

macadamia nuts

In this, Meru, Kirinyaga and Murang’a counties recorded the highest increase of more than 100 hectares.

According to the report, farmers are embracing the crop in Busia, Uasin Gishu, Trans Nzoia, Baringo, Busia, Bungoma and some parts of Nakuru which are up to now considered Kenya’s bread basket with producing over 61 per cent of maize, the country’s staple food crop.

The directorate notes that increase in prices is also attributed to increase in licensed nut makers from 18 to 24 over a period of one year under review.

The crop is majorly used as food and is rich in vitamin A, B and iron, manganese and anti-oxidants which are essential in protecting the human body.

Macadamia nuts are also used in the cosmetic industry as an ingredient in face scrub.

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