Food, Nutritional Security and Sustainable Livelihoods of Smallholders Program

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1 Food, Nutritional Security and Sustainable Livelihoods of Smallholders Program Photo to come A project beneficiary from Emali/ Mulala ward in Makueni County, milking her improved Toggenburg dairy goat that was supplied by the FOSEMS II project. 10 Africa Harvest Annual Report 2015

2 How Food Security and Ecosystem Management for Sustainable Livelihoods in Arid and Semi-arid Lands of Kenya (FOSEMS) fast-tracked intensification and commercialization of the poultry value chain Poultry represents 30% of the agricultural contribution to Gross Domestic Product (GDP) of most African countries (FAO, 2007). For smallholder farmers, the sector is important for income-generation, food security and economic growth. Poultry population in Kenya was estimated at nearly 37.3 million in 2009; of this, 84% were indigenous breeds, 8.3% layers and 5.7% broilers. All other birds made up the remaining 1.7%. The annual poultry meat production is estimated to be 8,600 metric tons (MT), valued at KES 3.5 billion (USD 33.8 million) while the annual egg production is 1.2 billion, valued at KES 9.7 billion (USD 93.8 million) (MOLD, 2009). There is a growing demand for poultry meat and eggs from improved, indigenous birds as well as from biosecure smallholder flocks. Kenyan consumers recognize them for high quality and value. For inclusive development of the youth in the arid and semi-arid lands (ASALs) of Kenya, and other African countries, the poultry industry presents a unique opportunity on account of the myriad benefits it offers. The barriers-to-entry are low. One needs a relatively small amount of start-up capital and it is often the only enterprise operating at the household level during prolonged dry periods. Poultry production has traditionally been the preserve of women in most Kenyan communities; and this presents a unique avenue to reach women and youth alike. Poultry - especially chickens - are often used as rural banks which a household can tap into in times of need. Smallholder farmers can sell eggs or mature birds, which significantly strengthens the household cashflow position. The consumption of eggs at the household level, especially by young and growing children, also helps address malnutrition. Interventions FOSEMS Phase II focused on leveraging mechanization, breed diversification, training and commercialization to enhance productivity. The interventions were designed to reduce drudgery in maximization of the poultry enterprise development. Food, Nutritional Security and Sustainable Livelihoods of Smallholders Program 11

3 The project focused on the highest ranked constraints: high cost of quality feed and access to quality, improved, indigenous day-old chicks. Based on other successful models implemented by Africa Harvest, the formation of sustainable business hubs was identified as a key driver. More specifically, the aggregator model successfully used in the transformation of the sorghum sub-sector was introduced as a means to enhancing resilience and sustainability. The aggregator model demystifies access to large, institutional markets through collective action, quality assurance and service delivery. A one-year youth mentorship component was also integrated into the project. Youth groups were linked to existing successful women groups as part of the mentoring strategy. Instead of day-old chicks, the women farmers nurtured the birds and passed them on to the youth groups after 21 days. This was to minimize the challenge of high mortality among the one-day old chicks as well as reduce labour and the cost of feeding. A total of 3,700 chicks were distributed across the hubs. The project facilitated three automatic incubators with a hatching capacity of 176 every 21 days, with a power backup installed at each hub. One of the hubs has a solar power; depending on performance, the solar power will be rolled out to other hubs. Given that the cost of commercial feeds constitutes 70% of the total production costs that a poultry farmer incurs, the project explored alternative approaches in the sourcing of feed. The cost of raising one bird from one-day old to four months, when they are sold, is KES or USD 2.45; if 70% of the costs are in feed purchase, then shifting the financial benefits to smallholder farmers would require focus on this area. The birds are sold at KES (USD 3.5) for a single bird weighing between 1.8kg to 2.0kg (live weight). This implies that the most viable option by which farmers could reduce their production costs, improve incomes and profitability of the enterprise was by recalibrating the cost of feeds. The project therefore helped the three hubs purchase 10 petrol-powered mechanical feed grinders with a grinding efficiency of 500kg of feed per hour. At the time, 75% of the hubs membership consisted of women and youth. Some 44 trainers drawn from the business hubs were trained and equipped with training manuals. The training was conducted in partnership with the Livestock Department of Makueni County; it focused on quality and affordable feed formulation and production using locally-grown cereals such as sorghum, green grams and cowpeas. While efforts to reduce the cost of feed were being implemented, a study to inform commercialization, competitiveness and access to markets by the chicken farmers was conducted, targeting two main commercial buyers serving Makueni County. The two companies, Nguku Limited and Bene Hatcheries and Vet Limited serve different markets of live birds including Makueni County, local hotels, Nairobi estates, as well as niche markets in Tanzania. The marketing constraints cited by the buyers included: poor farmer organization, poor quality of products due to sub-optimal management and feeding, and limited knowledge of market requirements. For example, Bene Hatcheries, based in Makueni, were contracted to supply the improved Kenya Agricultural Research and Livestock Organization (KARLO) Kienyeji (local) chicks, provide extension services and purchase mature birds, weighing 1.5kg after four months, at a farm gate price of KES depending on the season. Bene s 12 Africa Harvest Annual Report 2016

4 minimum capacity per month is 2,400 birds while Nguku s minimum capacity is 1,000 birds per week. In response to the market opportunities, the project engaged directly with 960 poultry value chain players with an additional demand of an average of 20 birds each, every three months. This translates to 76,800 new chicks added every year, valued at KES7,680,000 (USD 76,800). The incremental income as a result of poultry sale is valued at KES 46,080,000 (USD 4,608,000) annually. Assuming 50% of the chickens are sold every year, the gross sales from this enterprise would be KES 23,040,000 (USD 230,000) annually. FOSEMS helped women and youth access devolved funds thereby unlocking enterprise potential The Kenya government's decentralization or devolution policy led to a proliferation of funding opportunities through the national as well as the regional, or county governments that were launched in National and regional governments allocated funds targeting women and youth initiatives. However, access to the funds was difficult, especially in the rural areas; this was due to lack of knowledge that the funds exist or lack of knowledge on modalities of applying for the funds. Some of the funding opportunities included the Youth Fund, Women Fund and Uwezo Fund. They are managed through the youth and women departments at the county level. In the regions where FOSEMS II operated, other opportunities included the County Women Representative Kitty commonly known as Tetheka, loosely translated (in Kamba) as assistance. FOSEMS II partnered with the Makueni County and training was organized to increase awareness about the existence and how to access these funds. The training helped to build the capacity of participants with regard to what was available for the youth and women, eligibility criteria, the scope of funding (amount, area of focus, repayment period, as well as the interest rates applicable). Training covered the Uwezo Fund, Youth Fund, Women Fund and access to Government Procurement Opportunities (AGPO), Constituency Youth Enterprise Scheme (C-Yes), Inua (uplift) loan and Take 254 loan (local film production) programs. In addition, 46 trainers of trainers (ToTs) were trained in entrepreneurship, marketing, costing, pricing, record keeping, enterprise selection, business growth and expansion. The trainees were awarded certificates on successful completion of the course. Based on the Africa Harvest intervention, 17 business groups have since got in touch with the relevant county offices and micro-finance institutions and applied for a total of KES 2 million. Some of the funds will go towards expanding individual and group poultry enterprises while others will go towards income-generating activities. FOSEMS II also incorporated a social component to the business groups; this increases commitment and interest to stay in a group. Social components are expressed in the form of merry-go-rounds, table banking and other income-generating activities that keep the groups meeting regularly and where group members are able to generate additional short-term income, thus sustaining the members in the group. FOSEMS II encouraged all business groups to start table banking and had them trained to enhance their effectiveness. In the Mulala area, Africa Harvest partnered with the Child Fund of Kenya (CFK) and members from the participating business groups were trained. Food, Nutritional Security and Sustainable Livelihoods of Smallholders Program 13

5 FOSEMS II promotes goat breeding through buck stations During the year under review, the FOSEMS project focused on leveraging on the lessons learnt while addressing the gaps identified in Phase I. The project adopted the promotion and intensification of goat breeding through three approaches. First, the project undertook training and capacity building of beneficiaries in order to strengthen their ability with regard to production and management. They were also linked to competitive markets for their product. The project forged strong partnerships with the veterinary officers at the sub-county level for comprehensive curriculum development, training, formation of associations and strengthening technical backstopping. A memorandum of understanding was signed. A Training of Trainers (ToT) was undertaken and 46 trainers graduated, equipped with copies of the curriculum to help train others. Secondly, the project facilitated breed diversification. Two goat breeds were introduced: the Toggenburg (popular for milk) and Galla, a multi-purpose breed (reared for its milk and meat). A total of 46 goats (31 Galla and 15 Toggenburg) were availed to 21 business groups. Thirdly, the project acquired land for, built and equipped two buck stations each with two pure Toggenburg bucks. This approach was designed to address the risk of inbreeding, improving local breeds, building assets among households, as well as generating household income. There is a great opportunity in scaling up the goat enterprise, considering that Makueni County has developed a breeding program where the FOSEMS business groups are linked. The availability of funds for youth and women at low or zero interest rates will motivate business groups to expand their enterprises. It s also worth noting that the success of the goat enterprise was supported by other indirect factors such as accessibility of clean water through sand and earth dams, constructed or rehabilitated within the project sites. Enhancing adaptation to climate change in arid communities How Margaret Musilu built resilience on her farm Farming has always been a part of my life, even when my home, Kikumini a small village in Makueni County experienced perennial droughts and crop failure. During difficult times, my family and community relied on selling sand. However, agriculture is our family livelihood. After I completed secondary school education, I followed my parents in cultivating and harvesting crops such as maize. When I got married, I realized that I had to farm to earn a living. Over the years, things have changed. Planting, cultivating and harvesting seasons have changed. Rains have reduced both in frequency and amount. Maize and some traditional beans varieties that used to be grown in the area no longer yield much, if at all. In 2010, I had just joined the Nditiwa Self-Help Group, when the chief informed us of a project by Africa Harvest that would teach us modern agricultural practices. At first I had no clue as to what they meant, but as they explained what climate change was, it hit home. They taught us the value of sorghum as a climate-resilient crop. They said it was better adapted to the challenges of climate change in our local conditions. I later saw 14 Africa Harvest Annual Report 2016

6 that sorghum grew better, requiring half the amount of water maize does. Although the project had different components, I was drawn to the chicken enterprise. At that time, I only had two chicks that roamed in my backyard. Africa Harvest taught us how to care, vaccinate and breed chicken, both for meat and egg production. We learnt how to use locally available crops such as millet, sorghum and mull beans to make chicken feed. This made the cost of feed less expensive and more accessible. Africa Harvest also linked us to new markets, which made it very attractive to practice chicken farming. I received my first six chicks in 2011 after 21 days of group collective breeding. That s where my journey began. Today, as a 40-year old mother of three, I can proudly say I am a self-sufficient farmer who has achieved a sustainable source of livelihood in one of Kenya s top climate change hotspots. In December 2016, I sold 200 chickens to our local meat market at a price ranging from KES (USD 4.5 5). I currently have 50 mature chickens and 60 chicks, but plans are underway to increase them as I continue to grow sorghum, mull beans and oranges. The profits from my chicken enterprise went a long way in helping pay school fees for my three children. Our group also received a grinder to produce feed. We currently supply feed to most farmers in the local area. The project also changed the scenario where only women, children and the elderly were left to farm while the rest left the village, seeking better opportunities in the cities. The youth are involved in egg production and marketing, as well as providing incubation services. I no longer have to ask my husband for money to purchase meat, and am also able to support him in making ends meet. I have learnt to maintain the right balance of farming and animal husbandry, and have no doubt about the power that women have in shaping and developing our communities. Margaret Musilu is among 300,000 beneficiaries under the FOSEMS project funded by the Italian Development Cooperation through a grant by The International Fund for Agricultural Development (IFAD). Mrs. Margaret Musilu, a project beneficiary, shows her brood of improved KALRO indigenous chicks (left) and her flock of improved birds (right). Food, Nutritional Security and Sustainable Livelihoods of Smallholders Program 15