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. 

The term "outgrower scheme" is sometimes used synonymously with contract farming, most commonly in Eastern and Southern Africa. Contract farming can be used for many agricultural products, although in developing countries it is less common for staple crops such as rice and maize.

"Access to markets is smallholder farmers' biggest challenge. If they can organise themselves into groups so that we can get the critical volume of produce, then the marketing challenge would be easily dealt with,"said Mr Odhiambo.

It was indeed a problem facing farmers in Tanzania and Uganda, but not anymore as non-governmental organisations help them form groups. "This is the model we are gradually adopting in Kenya with the help of NGOs to ensure farmers access basic agronomy practices. As a matter of fact, extension services today is at our cost," said Mr Odhiambo.

On the controversial maize prices, which farmers in North Rift have bitterly contested, Mr Odhiambo blames farmers' anger on the rising cost of production. "These costs are not necessarily related to inputs but also market inefficiencies such as poor roads. We need to employ better technology in maize production," he said. For those thinking of ditching maize cultivation, Mr Odhiambo says rice, beans, peas, greengrams, soya beans, simsim, pigeon peas and sorghum are rhe best credible alternatives.

"There is always ready market for these crops, especially the orphan ones such as sprghum and millet. They are also profitable," he said, adding: "Soya is not given the seriousness it deserves in Kenya. Yet it can be a profitable business. We are currently importing from Uganda because of its multiple uses." 

He challenged farmers in Western Kenya, particularly Trans-Nzoia, North Rift, parts of South Rift, Migori and Homabay to consider cultivating the crop.

"They can draw some useful lessons from their neighbours in Uganda's Tororo. They are very well organised in groups, prompting the set-up of a huge, multi-million soya processing plant," said Mr Odhiambo.