How to cut off middlemen using technology

Potato being packed at Sirikwa area, Kuresoi North Sub County ready for market on October 2016. PHOTO: KIPSANG JOSEPH/STANDARD

In February this year, OLX launched an agriculture category with the aim of facilitating agricultural trade in an efficient way given the sector's importance to the country's GDP.

One major finding about the local potato market was that the supply and demand were highly fragmented. Standing in between was a large brokerage network where brokers from the farms collaborate with those based in urban centres to facilitate aggregation and distribution of agricultural produce.

During regular interactions, farmers cited poor pricing as a deterrent to hard work. Generally, brokers are perceived to be pulling wool over the farmers' eyes by buying the potatoes at a low price.

However, the bad pricing is just one of the many symptoms of a chronic problem in the sector.

It is not lost on stakeholders that the key problem faced by growers is low yields, which in turn increases the production cost per unit thus reducing profitability.

Potato ranks second to maize, which is Kenya's staple. The assumption is that potato may at some point in future topple maize as the country's key staple because it is a favourite of the youth who are the majority.

The statistics are compelling. For every five households, at least three consume potatoes daily. In Marikiti, which is the largest potato market in Kenya, 100 trucks of potatoes, each with a capacity of 80 sacks, are offloaded on a daily basis. Going by the value of Sh2,500 per bag, the daily turnover attributed to the staple at Marikiti is Sh20 million.

In Idaho State in the US, one acre of land yields 400 bags of potatoes and the cost of one bag is about $7 (Sh700), which is four times cheaper than the cost of a bag of similar weight in Nairobi.

In Nyandarua, the average yield per acre is about 30 bags, which is 10 times less the yield in Idaho. The low productivity has resulted in inflation of food and potato prices.

Generally, the lesson here is that our farmers have been barking up the wrong tree. They are yet to realise that there is more value in increasing yield and not relying on brokers for subsistence.

Studies have shown that it is possible for farmers in Nyandarua and other productive parts of the country to increase their yields from the average 30 bags per acre to at least 100 bags if they employ technology and use the right farming methods.

Potato yields have been declining over time because farmers don't have access to good quality inputs and information on best practices.

For example, it is nearly impossible for growers to access certified potato seeds, leading an unhealthy cycle of recycling seeds year after year.

The fact that farmers are conditioned to applying DAP fertiliser over the years has not helped, but aggravated the situation by increasing soil acidity levels.

Farmers don't know about this because soil-testing services are not readily available. OLX recently conducted a soil mapping exercise in Nyandarua and we found that the average PH is about three times normal levels.

Even if the farmers in Nyandarua, considered one of Kenya's breadbaskets use the best fertilisers, the soils would be incapable of absorbing the nutrients. Not much has been done to educate the growers on the need to reduce acidity by liming the soil.

To cut the mustard in increasing productivity, farmers need to easily access good quality farm inputs and services; from soil testing, manure, fertilisers, chemicals as well financial services, but this isn't happening.

It is a problem that has been here with us for ages and can easily be solved through use of technology. Farmers can be trained on the best methods to employ not only to increase their yields, but also how to access good quality input providers.

Technology can also be used to disseminate best farming practices. A couple of organisations, including OLX, which is trying to eliminate exploitative brokers by being a direct link to consumers, have been attempting to do this by sending farming tips to farmers via SMS.

However, if farmers still don't have access to inputs, the tips are a far cry from solving the productivity issues that farmers are currently facing.