THE KENYA NATIONAL TRADE FAIR/ EXHIBITION REPORT HOTEL CATHAY, NAKURU 11 th to 12 th November 2008 By Agritrade Company Limited 1
ACKNOWLEDGEMENT Agritrade Company limited is thankful first and foremost to the Food and Agriculture Organization of the United Nations through the Rural Knowledge Network (RKN) project for East Africa for providing the resources to host the Kenya national trade fair. Special thanks go to Ms. Karin Nichterlein, the Lead Technical Officer, based at the FAO office in Rome for her support before and during the event. She tirelessly offered not only technical support but non-technical assistance that was crucial for the success of the event. The FAO country representative together with his personnel was always at hand to provide the advice and actual disbursement of funds. We cannot forget IFAD for availing the funds for the FAO implemented project. Clive Lightfoot and Ueli Scheuermeier of Rural African Ventures Investment (RAVI) were the brains behind this right from conceptualization through design and up to actual running of the event. We are grateful to the guidance and business counseling that you provided to help us not only think through the whole process but also the transaction security materials that were valuable to the trade fair. The LLL platform provided a kind of daily contact for all who were involved including Paul Nyende, the Regional Coordinator of the project. Indeed the entire transaction security network was closely knit by the LLL platform. A big thank goes you to Anne Dennig, for the Newsletters, snaps and recordings. We want to remember the Ministry of Agriculture, Drumnet, SHoMaP (IFAD funded project), GTZ PSDA, AGMARK, BIDCO, Equity Bank, the press and all the exhibitors whom we may not be able to thank individually. Kindly accept Agritrade s warm gratitude for your contributions in whatever form that went along way to ensure the success of the event. It will be unfair not to mention the Hotel Cathay for the conference facilities provided during the event. Off course we are not forgetting the MACs, IBMs and producers without whom the event wouldn t have been there. You made us proud and a big salute goes to you for the preparations and actual displays. Agritrade and its regional managers are indebted to you immensely. 2
ACRONYMS FAO ------------- Food and Agriculture Organization of the United Nations IB ---------------- Information Board IBM ------------- Information Board Manager IFAD ------------ International Fund for Agricultural Development LLL ------------- Linking Local Learners MAC-------------Market Access Company MIS ------------- Management Information System NMC ------------ National Access Company RAVI ----------- Rural African Ventures Investment RKN ------------ Rural Knowledge Network project RM ---------------Regional Manager TA----------------Trade Agent TS --------------- Transaction Security 3
Table of Contents ACKNOWLEDGEMENT... 2 ACRONYMS... 3 EXECUTIVE SUMMARY... 5 1.0 INTRODUCTION... 6 2.0 THE OPENING SESSION... 6 3.0 MACs/ IBMs: EXPERIENCES AND GOOD PRACTICES... 7 3.1 Allaken Market Access Company (MAC)... 7 3.2 Chwele Agrovet Market Access Company (MAC)... 8 3.3 Bungoma Market Access Company (MAC)... 9 3.4 Bungoma FFS Umbrella... 11 3.5 Epappra Tallam TA / IBM... 13 3.6 BUNGOMA MUNICIPAL INFORMATION BOARD... 15 3.7 Kakamega Market Access Company ( MAC)... 16 3.8 Busia Market Access Company ( MAC)... 17 3.9 Ketangla Market Access Company (MAC)... 18 3.10 Yanse Market Access Company (MAC)... 20 3.11 Keekonyokie Market Access Company (MAC)... 20 3.12 Penguin Market Access Company (MAC)... 20 3.13 Kathonzweni MAC... 21 4.0 MAIN EMERGING ISSUES TO DISCUSS... 22 4.1 Groupings and Discussion Topics... 22 4.2 Group Work Instructions... 22 4.3 Groups Feedback... 22 5.0 SHARING INFORMATION CHALLENGES... 24 6.0 THE KENYA LLL LEARNING MATRIX... 25 ANNEXES:... 26 Annex 1: List of Participants... 26 Annex 2: Programme... 29 4
EXECUTIVE SUMMARY The national trade fair and agribusiness exhibition whose theme was Partnerships for Market Access was organized by Agritrade Company Limited, the agribusiness national market company for rural agricultural producers. It was held at Hotel Cathay, Nakuru from 11 th to 12 th November 2008. The trade fair and exhibition was sponsored by the Food and Agriculture Organization (FAO) of the United Nations and supported by a number of organizations including the Ministry of Agriculture, GTZ Private Sector Development for Agriculture (GTZ PSDA), Smallholder Horticulture Marketing Project (SHoMaP IFAD), Tradecraft UK and Rural African Ventures Investment (RAVI) UK). The event which was well attended achieved its purpose of exploring and showcasing AgriTrade Company Limited s Transaction Security Market Services to the service providers (Pride Afirca/Drumnet, AGMARK, Traidcraft, etc), large scale agricultural commodity buyers, agro-processors, supermarkets, financial institutions, producer associations (including FFS Network), farmers and pastoralists. The entire value (market) chain players/stakeholders in the both the input and output market value chains were able to interact, share experiences and build bridges. Apart from the open forum, there was the closed session for the business symposium. Keynote address articulated the benefits of partnerships and emphasized the need to strengthen synergies now and for the future. The symposium had sessions for the Agritrade transaction security network to discuss with large scale agricultural commodity buyers, financiers and processors on business opportunities. The practical sessions were useful in deepening the skills of understanding problems of clients and getting or identifying business opportunities for mutual benefit. Other useful insights during the symposium centred on how to working to satisfy big orders; finding and using information; identifying markets and clients; building and managing transaction security network and good business practices. The sessions were ably facilitated by RAVI and Tradecraft. This report has four major sections. The first sections is introductory consisting of the executive summary, introduction/ overview and the about the opening session. The next session is dedicated to the agribusiness MACs/ IBMs experiences and good practices to expound on the status of those who exhibited during the event. The next part dwells on the main emerging issues and sharing of information challenges. Lastly the LLL learning matrix is illustrated that provides an understanding of issues the participants would want to continue learning and discussing on the LLL platform. 5
1.0 INTRODUCTION The Kenya national trade fair/exhibition was held at Hotel Cathay in Nakuru on Tuesday 11 th and Wednesday 12 th 2008. The theme of the event was partnerships for market access. It was divided into two parts starting with exhibition that was attended by over 120 participants and a business convention whose attendance was over 40 participants. This national exhibition-cum-agribusiness symposium was meant to promote partnerships for market access in Kenya now and beyond. Indeed it was Public Private Partnership (PPP) being put to practice. The event brought together the major actors on values chains including inputs suppliers, producers, food processors, wholesalers, supporters, etc. Also in attendance were leaders of farmer organizations and government officials. The national trade fair highlighted the business-to-business learning that has been going on during the year. It was not only used to show-case but also promote the businesses of Agritrade Company to its partners including big clients, government agencies and farmer producers/ associations. 2.0 THE OPENING SESSION All the participants were welcomed to the event during the opening session. It was also used to explain what is meant by transaction security (TS) in our context that was ably done by power point presentation by Clive Lightfoot of Rural African Ventures Investments (RAVI). The Ministry of Agriculture\s Provincial Director of Agriculture (PDA) for Rift Valley province welcomed members to the region. He observed that this collaboration requires close partnerships between public and private sectors. He thanked the organizers for bringing together the business partners and asked participants to take some time to visit Nakuru town and its environs. Introductory remarks were made by Esther Muiruri of Equity bank and Jonathan Campainge of Pride Africa. Equity bank was happy to be associated with TS business approach and committed itself to supporting the initiative. Pride Africa through the Drumnet project was also happy to be associated with the network. Jonathan observed in that the sunflower business model trial was in 5 districts in Western province and 1 district in Eastern province but this will be expanded to other districts/ provinces. Mr. Dileswar Pradhan gave the official opening remarks on behalf of the Managing Director of BIDCO, a large multinational oil processing company. He was happy to be associated with this like-minded business conglomerate. Their interest has not only been sunflower processing but its development through contracting, training, transportation, market assurance and other related activities. He committed himself to strengthening this relationship. He thanked all the organizers of the timely exhibition and business convention. He reiterated the Company s support to this initiative that brings together players from various levels of the value chain. It s hoped that the business forum will bring the participating countries closer to enhance transaction security in market access while up scaling good practices and mitigating poor practice. 6
3.0 MACs/ IBMs: EXPERIENCES AND GOOD PRACTICES 3.1 Allaken Market Access Company (MAC) It is a small commercial enterprise that offers client services to; a) Get better access to local, national and international market. b) Access locally relevant market information and intelligence c) Access suitable financial services for loans & d) Collaborate with all key players along the market chain for efficient marketing. Vision :To be the leading company in the provision of fair-trade and price discovery to key players in the marketing chain. Mission: To improve on how to make deals in an effective, reliable in a transparent way and build trust with and among all players along the chain. Locations: Nyeri, Nyandarua and Laikipia Districts Activities: Mumuka Hort. Producers S/H Group Everest Enterprise (Trader) Everest Enterprise (Processor) Export Income Streams: IT Department Information Board Impact Stories Formation of alliances with snow peas and French beans producers to negotiate your deals Professionalizing horticultural production and marketing through formation of producers association (MOPA) Challenges Lack of trust between buyers and the big buyers. Complexity in the export business Many farmers have no internet accessibility. Allaken Marketing IB Income is raised from the IB. Challenges Very little income, cannot council licence. Only Local Commodity Price No Internet Access 7
3.2 Chwele Agrovet Market Access Company (MAC) Objectives To be able to provide quality and adequate services to our farmers at profitable but at affordable prices by our farmers by the year 2010-Dream Present activities: 1) Sell of:-insecticides, pesticides (control, curative and combined) Fungicides, forliafeeds, seeds (cereals, Pearls, horticultural), pasture seeds, Acaricides (Deltermetherins, Cyporametrins & Organophosphatics, Arnitrazes), curative drugs for livestock; Dewarers; Vitamins; for wounds healing-tryponocidals other drugs, vaccines. Equipment / accessories-eg knapsack sprayers, poultry feeders and drinkers. 2) Poultry Vaccination-3 days in a week OBJECTIVE: Wealth creation at family level in this community starts with local chicken. 3) Technical advice on livestock keeping for the profit/horticulture. (includes information sourcing) Deals This year:- a) Naiap Profit 75,000 b) Drumnet Profit 10,000 c) Lake Basin Development Authority Profit 24,000 Others in waiting Improved Dairy cows - Improved cockrel acquisition Personnel Coordinator, Cashier and Stock Manager Challenges Meeting the demand of farmers at the time of need Fluctuating prices of farm inputs Perishability of products and forcing sales at low prices many middle men with faulty measures. Infiltrating of fake/products from neighbouring markets Mushrooming agrovet High internet rates from loaming institution and collateral required Low income earners Opportunities Existence of NGOs assisting farmers each acre fund Atmost sure rain seasons One Agmark trained personel and trainee Availability of collaborators MOA, MOLD, farmers and others Financial/analysis Expenditure/Income, cashbook - Monthly statements/balances - Average daily profits Stocks analysis: weekly, monthly item hence turnover rate My dream: To make a big impact not only amount of inputs but a powerful source of modern information. 8
3.3 Bungoma Market Access Company (MAC) The following five directors started Bungoma MAC in the year 2008 in May: 1. Managing Director - Chrisantus W. Masibo, P.O Box 96-50200, Bungoma. Tel: 0711-296699; chrismasibo@yahoo.com 2. Administrative Secretary- Prisica Kiliswa, P.O Box 804-50200, Bungoma. Tel: 0728664115; priscakiliswa@yahoo.com 3. Director Finance: Michael Mbaya, P.O. Box 1268-50200 Bungoma. Tel: 0726161931 4. Director: Peter Waboya, P.O. Box 1268-50200 Bungoma. Tel: 0726759578 / 0734882266; peterwaboya@yahoo.com 5. Director: Protus Nyongesa Mukusi, P.O. Box 1268-50200 Bunomga. Tel: 0729646940 / 0735255947; protusmukusi@yahoo.com Information Board Managers 1. Chwele Market: Tunai Nabalaya Sikuku, Tel: 0725510767/0735318437 2. Mayanja Market: Enock Simiyu, Tel:0725097499/0738665251 3. Bukembe Market: Jimmy Wekesa, Tel: 0710111318 4. Mabanga ATC: Fred Namasoke, O734298112 5. Sunflower Director: Benbaka and Simaki Farmers field scheme Sunflower Collection Centres The collection centres are 1. Kibachii Market for Benckako and simaki groups 2. Kimaels Market for Vumilie group MAC Vision To be the leading and credible linkages to a market chain players in the region Mission To provide a dependable, effective, efficient, trustworthy and competitive mechanism for transactions that avoid cheating thereby promoting equitable profits in the market chain The Company Objectives To be financially sustainable through deal making To utilize the locally available resources To enter into commercial business for profit To seek for funds from financial institutions To gather and share market intelligence to all partices Services offered/income streams for the MAC Brokering deals for local buyers and producers grow Exploring new markets, ways of value addition and new market opportunities Have information boards placed on markets for advertisements by products, buyers and all interested members of the public at a commission Offering daily SMS information on the market prices mainly Kenyan Markets 9
Gathering and sharing market information from all interested parties Convening market chain players for new business development i.e. linking producers, buyers (traders) and financial institutions to a meeting Source for new produces and markets Organizing collection storage and pick up of produce in transactions and at secure deals Directors are service providers for stakeholders have trained them to facilitate the communities on food production e.g. Western Kenya Community Driven Development/Flood Mitigation Projects (WCCDD/FUP) MAC collaborators Name Of Collaborators Services Offered/Linkages 1. Bungoma Umbrella FFS Network Mobilize farmers to bulk farm produce for sale Produce market for farm inputs 2. Ministry of Agriculture They offer training on Agribusiness 3. Drumnet Client relationship (after contract farming 4. Ministry of Special Programm Offer training and client relationship in training 5. Agr-Trade Company Is an Apex private company where the MAC is affiliated to. It also offers mentoring services to the MAC 6. RAVI (Rural African Venture Investment) Trains and gives revolving Rooms to the MACs 7. Farm Inputs Suppliers For the Agro Vet Supply 8. Wholesalers, processors, traders and small There is client relationship producers 9. R.K.N (Rural Knowledge Network) For mentoring i.e. Training of the Directors Success story of the MAC: Establishment of the information boards have entered into contract farming with BIDCO Company through Drumness Farm inputs available in the agrovet shop Offering of professional services like agri-business and community development programmes Award of an agribusiness, trophy from the Kenya Maize Development Programme Challenges: 1. Capital is a limiting factor to the MAC a. We want to expand the agrovet shop b. We cant enter into competitive business with established brokers and other market players 2. Delay in supply of farm inputs and bureaucracy by Drumnet has led to reluctance of sunflower farmers. 10
Bungoma MAC structure: BOARD OF DIRECTORS DIRECTOR FINANCE MANAGING DIRECTOR DIRECTOR ADMINISTRATION COLLABORATORS INFORMATION BOARD MANAGERS FIELD SCHOOL FROUPS AND OTHER FARMERS FARMER RECRUITERS 3.4 Bungoma FFS Umbrella Bungoma Umbrella FFS, Network Farmers field school in Bungoma District started in 1997 by 4 FFS groups. What is a field school? It is a group of adults from 18 years onwards that have a common interest on food production. Membership to between 25-30 years Their class has no walls Classes are conducted under a tree shade It comprises of all gender, literate and illiterate participants They meet ones a week and learn a half day from 8.00am-12.00 noon Steps used to form FFS. It involves ground working (group mobilization) Organize for first meeting and select the learning site. Train people on leadership skills and select the group leaders. Make group constitution for to govern them Sets a learning or working day. Select a study or commercial day. Funding Sources: Through the ministry of agriculture (MOA).FFS groups were funded by food and agriculture organization (FAO) To train FFS facilitators. To train farmers and Backstop the programme. 11
To train the network officials Network formation: Bungoma umbrella FFS network was formed in the year 2000 by 48 FFS groups with a population of 1,500 members. Today the membership has increased to 203 groups with a population of over 5,000 farmers. It was registered to social and culture in the same year as a community based program as stated above. Collaborators and linkages No. Name organization or Type of linkages/collaboration institution 1 Ministry of Agriculture Train farmers on food production/value added marketing 2 Food and Agriculture Organizations -train both extension and farmer facilitators -train farmers on enterprise selection, leadership/finance management. -give funds to groups to run the programme. 3 ICIPE Carry out research on striga/fodder production (pushpull) 4 DRUMNET -Train farmers on quality/quantity production of sunflowers -it gives loans to farmers in form of farm inputs -links farmers to conduct farming 5 KARI Carry out research on soil, plants and initiate farmers to grow new crops. 6 FISHERIES Train fish farmers on quality or quantity production of fish/commercial marketing. 7 KACE-Kenya Agri-Comodity exchange Train farmers on enterprise selection, market information/link them to market. 8 NAIAP Trains farmers on cereal banking Gives farm inputs to farmers for suitability 9 Ministry of special programme. WKCDD/FM Train community on change of attitude Train community on resource mobilization Train community on leadership skills Train community proposal writing. 10 Njaa Marufuku Kenya Gives funds or training to groups. (Government) 11 WOCCO World Council of credit unit Train farmers on enterprise selection And on farming as a business FAAB 12 Seed/chemical companies Train famers on the use of their products Sells the products to farmers at affordable prices. 13 National Cereals Produce Board Train farmers on post harvest handling It offers market to farmer cereal products 12
3.5 Epappra Tallam TA / IBM Market Comodity Unit Market Bid For Offers Advert Chep Com Bid Off Lesson Maize 2KG 45 40 Incalf 2 400 Heifer Beans 2KG 90 100 Bull 1 Cabbage 1BAG 400 350 Dairy Meal(Locally made) 12MG 600 900 Advert -of veterans services -transport liaison Management Structure The structure comprise of 25 officials amongst them is one District FFS coordinator from the Ministry of Agriculture (MOA), 7 executive officials and 17 locations representatives The structure is as follows:- District FFS Coordinator Patron Executive Officials Locational Representative Farmers Facilitators Collaborators FFS Groups Bungoma MAC FARMERS Network activities It runs an office that has a computer served with a Safaricom modem for easy networking It manages a bank account on behalf of other farmers/groups. 13
It gives revolving loans to FFS groups for generating income It is empowered to carry out PM/G It links farmers to collaborators It arranges for exchange visits, seminars, field days and graduations to farmers Challenges No. Challenges Recommendations 1. Defaulting groups put more interest on study them on commercial production The Network recommends to sensitize farmers on the importance of commercial 2. Its host to run unprepared group with funds, for some of the members have 3. The network experiences heavy workload by extension facilitators from the Government and NGOs etc 4. For the increased number of FFS groups to 203. Its hard to monitor/evaluate the program production than on study plot Do proper groundworking and problem identification of the members by village visiting The network recommends more farmers to be trained for they are always within the villages and are not transferred The network welcomes collaborators and well wishers to advice give support Lesson learned Regular backstopping helps in the repayment of the loan PM/E makes members own the group thus, leads to sustainability Members learn best through exchange visit/tours Members are empowered through field days for they are given a chance to facilitate other farmers Technology transfer is faster in groups than to individuals Success Story Increasing number of FFS groups from 4 to 203 groups The office has a computer, a safaricom modem, two engine bicycles and a Suzuki car for easy communication It is empowered to carry out duties as an independent stakeholder Have organized and opened up/formed Bungoma MAC Coverage The network geographically covers 8 divisions of the major district as follows: Kandunyi Division ii) Nalondo iii) Webuye iv) Chwele v) Bumula vi) Malakisi vii) Ndivisi viii) Sirisia The Network still has hope to cover the remaining two divisions in case of chance and capacity. 14
Network objectives The objectives of the CBO are as follows:- i) To bring all FFS groups together for easy networking ii) Improve on food security of the beneficiaries iii) To train farmers on new technologies iv) To source for market information through (KACE) Kenya Agriculture Commodity Exchange and also link farmers to market To source for funds to improve farming activities through: Registration Shares Monthly subscription Proposal writing Donors Well-wishers etc. Categories The groups are classified into three categories as follows: Staff ran FFS groups that were funded by FAO and facilitated the extension officer from Ministry of Agriculture Farmer ran FFS group funded by FAO and facilitated by a graduate/trained farmer facilitator Farmer ran non funded (self sponsored and trained by a trained farmer facilitator0 Enterprises Learned Maize and beans production Local poultry production Horticulture production (tomatoes, kales, onions) etc Tissue culture bananas/value addition Improved sweet potato production/value addition Ground nuts production/value addition Sunflower production 3.6 BUNGOMA MUNICIPAL INFORMATION BOARD Market commodity Maize Beans Green Grams Cassava Chip Passion fruit Unit Kshs. 2kg 2kg 2kg 2kg 1 kg Bungoma Kshs. 55 140 160 50 80 Chwele Kshs. 55 120 150 60 Bids and Offers commodity bid Day old chicks offer 100 each 15
3.7 Kakamega Market Access Company ( MAC) The MAC started in 2007 and was registered on the same year as a legal entity. It has a membership of three who are as follows: Stanley Nyongesa Managing Director, John Kalayi Company Secretary, Rose Akhonya - Financial Controller. Vision Kakamega MAC envisions being a leader through: a) Exploration of a new crops/livestock, markets, value addition, b) Overseeing the collection, bulking and storage of traders and distribution of inputs, c) Brokering deals on crops/livestock sales, inputs sales and links to source of financial and technical support, d) Informing clients on market intelligences and facilitating peer exchange and learning. Mission Kakamega MAC s mission is to alleviate poverty in the community through: Convening key players/collaborators and negotiating business deals with clients. Using ICT empower, inform the value chain actors. Initiating the values of TRUST, HONESTY, FAIRNESS AND TRANSPARENCY Motto Collaboration through Trust and Honesty we Achieve Exploration of new crops e.g. sunflower, moringa oleifera, Rofelle Hibiscus, Orange Flashed sunset potatoes Value addition on farm produce Identification of Markets for the produce e.g. Chillies Nace Foods Eldoret, Sunflowr, Bidco Nakuru, Moringa & Roselle Local Markets The distribution of sunflower seeds and fertilizers Shares good ideas, lessons through the LLL platform Negotiating deals with key players and getting a commission on sales Collection of Market information intelligence. Case study Information Sourcing Seed bulking Food production Collection of seeds and leaves from forest Value addition on leaves and seeds Marketing of the Moringa Products Income Streams 1) Registration and subscriptions, 2) Share contributions, 3) Tea selling, 4) Sweet Potato Products, 5) Moringa Oleifera Constraints Limitation of capital, and Inadequate Business Skills 16
3.8 Busia Market Access Company ( MAC) Vision Statement A society that is economically empowered Mission Statement Initiate and implement enterprises to improve economical status, involve community members and collaborate with other stakeholders along market value chain. Special Objectives o To help farmers to control marketing/enterprises selection o To help assist in achieving MACs vision/objectives o To implement projects that are of high turnover to add value to products Activities o Introduces groups for production o Train groups on value chain o Organize Production o Linking farmers to contractual marketing /enterprise selection o Ensuring quality control o Value addition in packaging and grading o Negotiate pricing for farmers produce o Sign contracts/ MOUs on behalf of farmers o Organize deliver of produce o Organize collection points o Link farmers to vital information and intelligence/use of Billboards etc. Progress report on sunflower: No. of participating groups = 12 No. of Acreage planted = 100 No. of Farmers Participated = 300 Returns achieved = 10 tons of produce. Price = 21.50 per kg. Commission = 1% of total produce. Oil content = above 78%. Short Rains Seasons Excellent, Moisture High, Acreage Planted = 120 Acres Progress report on Amaranthus Acreage Planted = 150 Acres, No. of participatory farmers = 300 Progress report on Dairy Milk Source- Nambale/Teso, Distance 39 Km, Customers Hotels, Hospitals, Customers. Price Buying @Kshs. 36 per/litre / Selling @ Kshs.50 per/litre. Quantity 50 litres per day. Terms: Casual, Customer/Customer, Proprietors. Legal Issues: Licence County Council Tools to be used: Polythene papers, Storage, Human Resource, Capital, Cans/Pans, Charcoal, Bicycle, Liability Insurance, Savings 17
Costing (Duration 1 month) Expenses Amount Income Capital Sold 36/= Purchase of charcoal Salary Rent Bicycle Permit Total 1,800 850 3000 2000 500 225 7875 50 litres x 50/= 2,800 700 x 30 2100 x 100 21,000 21,000 Gross Margins Income tvc = 6 KM 21,000 7875 = 13,125 Gaps/challenges Benefits are realized after production cycle Inadequate information sharing on LLL due to long distance and lack of Lap Top facility Lack of transport facility to effective backstopping Lack of capital to jump start the existing enterprises Future plans: Expansion of Dairy Milk enterprises (Value Addition) Sourcing for funds to Purchase a Lap Top and a Motor Bicycle for easy communication and Information sharing. 3.9 Ketangla Market Access Company (MAC) This is a new Mac in Embu District started two months ago. Vision To be the market access company of choice in Embu and Eastern Province at large and to build a unique mechanism for business transaction. Mission To point youth and farmers to wealth creation, strategies through assisting them to grow commercially viable crops and linking them to big market and investment in information boards. Coverage Ketagla covers Embu and Mbeere District Income streams Agrovet, Veterinary Services, Contracts: i) NAAIAP Ministry of Agriculture input supply ii) Drumnet input supply 18
Activities/Achievements Promotion and sensitization of sunflower farming contracts with BIDCO promotion of grain amarantha production and market linkage Making clay bricks Impact story Creating business opportunities for women through growing grain Amarantha Challenges Not fully trained for business models for MACs Lack of enough tools for trade e.g. Internet accessibility Many farmers are not computer compliant Self help groups - Embu district youth development initiative Thematic areas:- Advocacy and Leadership Peer education Project Management Environment Conservation Entrepreneurship - Establishment of Information Boards KETAGLA grain amarantha market KETEGLA MAC Self help group Embu Embu Food Industries Embu Food Industry Supermarket Market chain MARKET CHAIN Input Suppliers Producers Traders Processors Wholesaler/Retailer 19
3.10 Yanse Market Access Company (MAC) Yanse MAC is mostly involved in marketing, packaging and selling of high quality tea both retail and wholesale. Apart from tea business the MAC is also involved in the following activities: Giving information on market prices, Sourcing and supplying of dairy cows and day old chicks; Milk bulking and Displaying advertisements on the information board. 3.11 Keekonyokie Market Access Company (MAC) The income streams include: Livestock and meat marketing Storage water tanks trading 3.12 Penguin Market Access Company (MAC) The MAC is located in Wote town, Makueni District, Eastern Province. It started in November 2006 initially to address Information gap in Makueni district but incorporated market linkages and market information in May 2007. It has three employees. Activities involved in are: Market linkages; Market price collection and dissemination; Collection of bids and offers; Provision of Agro vet services, Farm inputs and advisory services; Computer training to group officials locals; Internet, Computer and Photocopy services. Achievements so far: Daily collection of prices from 5 markets in makueni and dissemination; Dissemination of daily market prices to Kathonzweni Producer marketing groups; Won a tender to supply 50 farmers with seed and fertilizer valued at Ksh 350,000; Linked a trader to the market with commission of Ksh 5,500 Tools of Trade Three Mobile Phones for Price transmission Information Boards ( 1 stationed at the office and the other at the Town council Market) Books of accounts for Invoicing, daily trading, Group data base, Receipts, and delivery notes A motorbike for Agro vet and farm input marketing Have identified 2 Information Board Managers (IBMs), 1 at Emali & 1 at Wote markets Current ActivitiesSupply of Farm inputs to 50 farmers (10 kgs seed and 50kg NPK and 50 kg CAN) through GOK. 25 farmers have already collected the inputs. Paid a down payment of Ksh 200,000 (Ksh 100,000 from Equity bank). Intend to recruit 50 groups by next harvesting season (February 2008) groups to cover. Publish a newsletter in English (The penguin) and swahili (Pingu) touching on weather, advisory and price trends in a month 20
3.13 Kathonzweni MAC Kathonzweni East Grain Traders Background Information Was started in 1999 as a Network Found in Kathozweni Division, Makueni District, Eastern Province Members are farmers from Kathonzweni Location Registration fee Kshs.120 for each member Monthly contribution Kshs.40 Problems that led to its formation High poverty level in the community Poor produce price Lack of market Reason for forming the group (network) Members experience low crop yield therefore there was need to improve production levels For collective marketing of farm produce whenever good harvest are realized Generates group income through sale of seeds Ensure appropriate seeds to our members in the farming community Bargain for better prices as a group 21
4.0 MAIN EMERGING ISSUES TO DISCUSS 4.1 Groupings and Discussion Topics Four groups were formed as follows to discuss transaction security business related issues that were emerging: Group 1: EQUITY BANK- Solomon as facilitator How to arrange fast links between financial institutions and farmers representatives Group 2: BIDCO James as facilitator How to organize information between BIDCO and farmers Group 3: WOOLMAT Kibue as facilitator How is AgriTrade going to connect with producers (for Woolmat) Group 4: NJORO CARNERS Abraham as facilitator How to even out supply of raw materials to factory 4.2 Group Work Instructions Explore various opinions of what the AgriTrade Network can propose as a solution to the client s headaches: RM keeps notes for future processing. Present on a flipchart: What did you learn about best ways to understand the client? What did you learn about best ways to find a solution? Make a proposal. 4.3 Groups Feedback FINDING SOLUTIONS - Group 1 The salient points to consider were: Recap and confirm a common understanding of problems Focus on what you can do to help Draw up a contract to describe what is going on. Proposal should describe the benefit to the client Does it pay? Will the client pay for your service Only propose things that you can do. Don t over promise Prioritise the areas in which you can offer solutions. Understand the relationship between problems Don t overcomplicate things Be creative. BEST WAYS TO FIND A SOLUTION AND MAKE A PROPOSAL 1. Clear understanding of client needs. 2. Brainstorming on possible solutions 3. Clients problem is complex and various solutions are required 22
4. Narrow down to solutions. BEST WAY TO UNDERSTAN THE CLIENTS. Establish a rapport with the clients. Understand the needs of clients through listening to the client. Start by asking the client the general questions, narrowing down to real issue later (leading questions) FINDING A SOLUTION - Group 3: 1. Brainstorming 2. Teamwork 3. Refer to case study and past experiences. UNDERSTANDING WOOLMATT 1. Carefully listen to the clients needs, challenges, and constraints- don t assume 2. Avoid predetermined own competition of buyers and sellers 3. Tactfully and friendly draw your client out of his shell. 4. Keep in touch with your client. consistent, continuous 2-way communication between the client and Agri- Trade, Using a variety of channels. Consultative forum between all stake holders involved. Through documentation of resolutions being presented by various representatives to policy makers of organizations. A) FINDING A SOLUTION - Group 2: 1) Face to face dialogue with the client 2) The client has specific needs B) UNDERSTANDING 1) Identifying and understanding client s challenges/ problems. 2) Analizing clients past experience and comparing with current situations. 3) Give the client alternative solutions to choose from including the costs, benefit analisis for each solution. UNDERSTANDING THE CLIENTS NEEDS Group 4 Ask open questions Listen Concentrate on understanding the situation dont worry about the solution Confirm understanding by paraphrasing Start at a basic level and then get into detail Don t rush it takes time to understand the situation. 23
5.0 SHARING INFORMATION CHALLENGES Price by grade/species Perishable crops. Efficient storage Using the same units Same costs-telephones o Time o fees o Email. Information on logistics Collect the same prices-wholesale Collect current prices Be specific Be aware of market brokers. 24
6.0 THE KENYA LLL LEARNING MATRIX How do information board managers make money How to decide on deals and who is competitio n How can we organise for learning and sharing? How to go about promoting your business? How to organise gathering, sharing and using market intelligence How to improve farmers quality of produce? How to manage cash flows and credit control? Isaya Masinde x x x x Johnson Ngohi x x x x How to manage my business? How to develop a selling business proposal? How to organise bulking and holding stock by farmers? Susan Nduku x x x x x Mary Wachira x x x x Alice Wamae x x x x Prisca x x x x Davis x x x x Ephantus x x x x James Kanyi x x x x Stanley Nyongesa x x x Muchele x x x x Symon Ngatia x x x x Peter Waboya x x x x Pauline Nyamai x x x x Michael Kibui x x x x David Ojwang x x x x Solomon x x x x Isaac Nemuta x x x x TOTALS 6 10 5 11 4 4 11 6 12 4 25
ANNEXES: Annex 1: List of Participants Name Organization Contact Address Telephone Email 1. Paul N. Kariuki Keekonyokie MAC Box 7729 00200 NRB. 0724393950 paulomeng@yahoo.com 2. Mary Wacaira Allaken MAC BOX 613 Othaya 072007189 marywak@yahoo.com 3. Susan Nduku YANSE Box 373 Busia 0720235877 ndukususan@yahoo.com 4. Godrick S. Khisa FAO FFS 917 Kakamega 0722813719 khisagodrick@yahoo.com 5. Davis Murangiri KETAGKA 709 embu 0720874004 dpostiverd@yahoo.com 6. Tony Kamuri Pride Africa 39320-00623 NRB 0204440666 tony@drumnet.org 7. David Mouti Woolmat Box 3622 NKR 8. Isaac Nemuta Keekonyokie MAC Box 1-00206 Kiserian 0724536721 isaacnemuta@yahoo.com 9. Edward Wambugu Traidcraft Box 960 NRB edwardw@traidcraft.co.ke 10. Pauline R. Nyama Kathenzwaeni Market Box 31 Kathozweni 0727 100385 11. Abraham Okolla Agritrade 0721573874 akolla@yahoo.com 12. Ephantus Njagi Ketangla MAC 736 Embu 0714799063 ephantusnjagi@yahoo.com 13. Damaris Bonareri BIDCO 729 NKR 0724989529 elianto@bidco-oil.com 14. James Kanyi Agritrade 4321 NRB 0720922103 jwkanyi@yahoo.com 15. David Ojwag Peguin 208 Wote 0726165585 Dojwag2005@yahoo.com 16. Dr. Akwimbi A.W. Equity 12568 NKR 0722234357 Dequitybank.co.ke 17. Joshua Mosoti Equity 12568 NKR 0727393406 J.mosoti@yahoo.com 18. Chandni Patel Pride Africa 39320 NRB 0734474346 chadni@drumnet.org 19. Aristair Leadbetter Traidcraft alister@network.org 20. Ueli Scheuermeies RAVI Ueli24@yahoo.com 26
21. Opio John Peter Agrinet(U)Ltd 0773766138 Opiojp702000@yahoo.co.ke 22. Clive Lightfoot RAVI 23. Rob Domelly Traidcraft robertd@traidcraft.org 24. Rosemary Mbogo Tradecraft 0722856361 25. Simon Mburu Githu BIDCO 7029 NKR 0725527716 26. Symon Ngatia Kangau Allaken 653 0711987834 27. Kevin O. Nyangun BIDCO 729 Nakuru 0735542685 28. Solomon Robon Trade Agent 88 Kapsabet 0724213816 29. Clarice A. Kionge Drumnet 157-40123 Kisumu 0721550746 clarice@drumnet.org 30. Stanley Nyongesa Kakamega MAC Box 1490 07237143883 Stanley.nyongesa@yahoo.com 31. Peter W. Waboya Bungoma FFS Network Box 1368 Bungoma 0726759578 peterwaboya@yahoo.com 32. Prisca Kiliswa Bungoma MAC Box 804 Bungoma 0728664115 prisakiliswa@yahoo.com 33. Alice N. Wamae Ketagla Embu MAC Box 522 60100 Embu 0722347970 nyamburawamae@yahoo.com 34. Dawson Njagi Drumnet Box 39320 NRB 0722492368 dassnjagi@yahoo.com 35. Annastacia W. Kiio GOK/MOA 30028 00100 NRB 0722366927 anastaciakiio@yahoo.com 36. Ann Dennig RAVI dennig@btinternte.com 37. Johnson Ngodi Busia MAC Box 28 Busia 0725740427 johnsonouma@yahoo.com 38. M.P. Muchele Bungoma/IBM 1796 Bungoma 0734702086 39. Isaiah K. Masinde Chwele Agrovet/MAC Box 297 Chwele 0733200457 chweleagrovet@yahoo.com 40. Solomon Mulindi Agritrade Box 50 Mumias 0727968495 Smulindi@yahoo.com 41. Dedan M.C. Cormade IFAD/FAO Rome-Italy dedan@foodedceaaos.com 42. Chandrakant Paruh BIDCO 7029 NKU 0733880576 chandrakantparuh@bidco-oil.com 44. Dileswar Prakan BIDCO Bidco Elianto Nakuru 0734777388 Dileswar.prakan@bidco-oil.com 45. Robert Njoya Kinuthia Pride Africa 020440666 Robert@drumnet.org 27
46. Jonathan Campanjue Pride Africa Box 39320 0722510878 47. Felix Maganjila TZ-Regional Manager Box 681 Dar +255713666445 maganjila@mp.co.tz 48. Haji Dachi TZ Regional Manager Box 13598 Dar +255731212466 hidachi@yahoo.com 49. Rosemary Staki TZ Regional Manager Box 2356 Iringa-TZ +255713123641 rostaki@yahoo.co.uk 50. Paul Mwai Kalimoni Green ltd Box 44798 00100 Nairobi +254 20 884802 Mwai.paul@gmail.com 28
Annex 2: Programme NATIONAL TRADE FAIR / EXHIBITION Partnerships for Market Access November 11 th 12 th 2008. Nakuru, Kenya Day One: 11 th November 2008 Time Activity Resource persons 07:00 07:15 Registration am Session 1. Set up of Exhibition Exhibitors 07:15-9:30 Display materials: Posters, banners, etc Exhibition teams am Session 2. Welcome Churchill & Clive 9:30-10:00 Introduction Churchill am Transaction Security Clive Exhibition Procedures Ueli Session 3. Exhibition Churchill & Ueli 10.00 13:00 Tea pm Good practices Paxes Use cards in different colours Barriers/ Bottlenecks Paxes 13:00 14:00 Lunch Break Session 4. Opening Session Churchill 14:00 14:30 Opening Speeches o FAO o Equity Bank o Pride Africa o Bidco Dr. A. Abate Esther Muiruri Jonathan Campaigne Dileswar Pradhan Vote of Thanks RAVI session 4 Group Work Ueli & Clive Understanding headaches/ Challenges 14.30-18.15 (a) Understanding headaches/ challenges Ueli Discussion topics Groupings Group discussions 29
Tea Break (b) Good practices identification & top tips/ best ideas Group discussions End of sessions/ day CLOSE BUSINESS Alistair 18:30 Enjoy your Evening Day Two: 12 th November 2008f 08.00 08:30 am Highlights of Day one Clive Session 5. Presentations Michael 08:30-10:30 am Top tips/ good ideas Alistair Solutions to Problems Ueli Proposal writing Tea Session 6. Plenary/ Open Dialogue Michael 10:30 1.30 Mind Map Training Needs Alistair Information Network Game Learning Exchange Plan Prizes & Closing Clive 1:30 14:30 Lunch Break End Departure 30