Experts: Value addition key in boosting smallscale farming

NAIROBI, KENYA: Perennial erratic of fertiliser in Kenya continues to hurt the quest for a food-secure nation, an expert has said.

Shem Odhiambo, the Country Manager for Export Trading Group (ETG), a multinational seeking to unlock Africa's agricultural potential, says it is also still costly for many smallscale farmers, especially in many parts of North rift, to access the crucial farming ingredient. 

Mr Odhiambo said North Rift, and Kenya as a whole, has huge potential in agriculture due to the favorable weather and huge chunk of arable land, but accessing inputs and poor state of infrastructure continue to hurt the sector.

"Many of the farmers are also not organised in groups. This means they are vulnerable to many risks such as exploitation by middlemen. Crucially, they can neither access credit easily nor benefit from economies of scale," said Mr Odhiambo.

Having realised the inputs challenges facing farmers, Mr Odhiambo says ETG has endeavored to ensure timely supply of fertilisers in not just Kenya but across Africa.

"Our key focus is on smallscale farmers. We are glad that there has been an increased consumption of the input in the past few years," he said.

He said the recently introduced fertiliser subsidy plan has also opened up the market space in the country. "Farmers now see fertilisers as a benefit and not as a cost. This explains why fertiliser consumption has increased from 350,000 to 550,000 metric tonnes."

But once the inputs supply problem is solved, Mr Odhiambo foresees the ever-present challenge of marketing of the harvests resurfacing. "As we think of increasing production, we must also come up with a better and accessible place where farmers will sell their produce," he said.

It is on the back of this that ETG, with operations in over 37 countries, has come up with a plan where it participates in the entire value chain.

"We offer affordable inputs to farmers at prices that only makes us cover for our overheads. Our core aim is to empower thousands of smallscale farmers," said Mahesh Patel, Chairman, ETG.

Going forward, Mr Mahesh told said contract farming strategy, which has proved successful in Tanzania and Malawi, should also be employed in other African countries.

Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers. Sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver at a future date. More commonly, however, contracts outline conditions for the production of farm products and for their delivery to the buyer’s premises.  The farmer undertakes to supply agreed quantities of a crop or livestock product, based on the quality standards and delivery requirements of the purchaser. In return, the buyer, usually a company, agrees to buy the product, often at a price that is established in advance. The company often also agrees to support the farmer through, e.g., supplying inputs, assisting with land preparation, providing production advice and transporting produce to its premises.