US fast food giant KFC is inching closer towards a deal to buy potatoes from local farmers in what is expected to be a major win-win situation for both parties.
For local farmers, the unprecedented deal is expected to boost incomes and alleviate perennial gluts that have seen their produce rot in stores and farms due to a lack of ready market.
And for KFC, it will be both a boon for its business due to the availability of affordable supplies as well as a market relations coup on the back of the public outrage it faced after it emerged that it sources potatoes from Egypt on account that local varieties are of “poor quality.”
KFC recently announced plans to source potatoes from local farmers, adding it is already sourcing poultry, vegetables, flour, and ice cream from within the country.
The fried chicken franchise entered the Kenyan market in 2011 and has 35 outlets across East Africa.
In April, Cooperatives Cabinet Secretary Simon Chelugei said local farmers had started planting the Memphis potato variety preferred by KFC following approvals from the Ministry of Agriculture and the Kenya Plant Health Inspectorate Service (KEPHIS).
“After the talks with KFC last year on where they source their potatoes, they gave us the specific seed quality they want and we were able to import it, farmers have started planting and we expect that in the near future, all potatoes used in KFC and all the food chains in the country will be sourced locally. This will mean more money to farmers, it means saving the country’s dollars and also promotion of our industrialisation of our SMEs,” the CS said at a function in Nakuru.
And on Friday, a consortium involving key players in the potato value chain led by the Co-operative Bank of Kenya and other partners, namely the County Government of Nyeri, Yara East Africa, Bayer East Africa, and Agrico PSA witnessed the harvesting of potatoes at the first Demonstration Farm in Kieni Sub-County in Nyeri. The buyer of the produce Simplifine Ltd (a food processor contracted by KFC to provide processed potatoes) witnessed the demonstration and committed to buying directly from the farmers without going through any middleman.
Co-op Bank entered into a consortium with other key players in the agricultural value chain to launch The Potato Consortium where every partner brings on board their domain expertise to support farmers’ venture into profitable and sustainable potato production.
The programme seeks to produce high-yielding potato varieties that are in demand by the fast food retailers such as KFC.
Under the deal, agronomy support is given to farmers through extension services embedded within the county government set-up through the use of ward agricultural officers and cooperative officers.
The farmers have access to affordable financing from Co-op Bank which is aligned to the potato crop cycle and pegged on financing farmer activity throughout the production, harvest and post-harvest management.
In recent days, there has been a push to ensure local farmers have access to appropriate input packages that will ensure both high yields and good-quality potatoes.
One of them is the Potato Consortium, which is backed by the Co-operative Bank of Kenya.
The consortium, consisting of like-minded companies within the potato value chain, aims to address current barriers that potato farmers face, by enabling access to affordable and quality inputs, credit, and sustainable markets.
It is already piloting the programme in Nyandarua, Nakuru, Elgeyo Marakwet and Nyeri counties.
Other partners include Agrico, Bayer East Africa, Simplifine Ltd, and Yara East Africa.
During its recent launch, Co-operative Bank Head of Agriculture Business Esther Kariuki said the initiative targets to reach over 30,000 farmers by 2026.
“Key gaps will be addressed, including agronomy, commercial and digital knowledge, access to finance, and market.
Each of the partners within the consortium has developed solutions that will help farmers increase potato yields.
Yara, a fertiliser manufacturer, will provide crop nutrition and soil testing solutions, while Agrico will provide seed varieties that are high yielding and appropriate for various uses.
