How foreign investor tapped gold with hay baling

In 2014, Eric De Jong, a student from Netherlands completed his three-month internship at the Netherlands Development Organisation (SNV) in Eldoret, Uasin Gishu County.

Instead of going back home to a life of luxury and comfort, something nudged him to stay on and study the dairy industry in Eldoret.

During his internship, he had interacted closely with a number of dairy farmers in Eldoret, parts of Central Kenya, Meru and Nakuru and he picked a lot from the episode.

• Vihiga farmers minting money from African leafy vegetables
• Ditching maize for bananas
• How to handle chicken before slaughter
• Role of water in animal health and productivity

“From my interactions with breeders, I saw a business opportunity and how I could make impact in the dairy sector in Kenya. I had interacted with a number of dairy farmers and got to know their investment needs. I saw a gap in the market and dived in,” says De Jong, married to a Kenyan from the area.

That is what prompted him to start - Agri Assist Ltd in Eldoret — that specialises in importation of farm machinery and production of high quality silage for small holders.

Capital-intensive investment

Through the support of family and loans, De Jong was able to import a consignment of farm machinery from The Netherlands worth millions of shillings.  

“Importing such heavy machines from Europe is a process. There is huge paperwork involved and the levies were heavy, but I was determined to set up the project,” he says.

Having seen the challenge farmers faced with packaging silage, he also explored that area.

“To solve that issue, I imported specialised silage covers. They sold well, and I realised a big vacuum in the market for quality inputs for dairy farmers,” he says.

Most of the machines they sell target dairy farmers, for making animal feeds. They include a mower, rake, bailer, forage harvest, planters and mixers.

Big and small machines

Other than the small and medium machines, the company has also invested in a Sh15 million forage harvester machine that operates at a go with two tippers collecting harvested fodder and two tractors to compact the fodder.

“Our forage machines have a capacity of harvesting 50 acres of crop a day and bail the fodder,” he says.

The automated forage harvester can compact and bail the fodder in airtight rolls immediately on harvest to ensure high standards of quality.

Components of the harvester include blades that cut the stems, a section that gathers the stems into the machine, feed rolls, cutter drum that chop the biomass into small pieces and a corn processor.

Underground pit silage

The company has chosen to focus on above ground pit silage storage as opposed to commonly used underground pit.

“We do not do the underground pit silage but instead focus on the above-ground pit. After harvesting maize it should not be exposed to air for more than 10 hours before it is covered. This will ensure there are no bacteria in it,” he says adding that fermentation takes four or three weeks depending on the size of the pit.

According to De Jong, the right variety of crop must be chosen for quality feeds.

“We use Pannar 691 (a maize variety), which is harvested after six months. A good fodder should have high starch for high milk production and should be easily digested by the dairy cow,” he says.

 Set the ball rolling

On top of the machines, De Jong also bought 10 acres for growing maize for silage making and hired a firm in Eldoret to harvest the same.

Additionally, to meet the dairy needs for silage, the company leases 300 acres of land for the cultivation of maize that produces over 4,800 tonnes of silage within 14 months.

At the beginning of the venture, he bought 300 plastic containers for packaging to guarantee quality feeds for dairy farmers.

Network of clients

So far, Agri Assist Ltd has established a network of clients across the country who make orders for the bailed silage.

Dairy farmers also buy loose silage sold at the company premise in Eldoret.

The venture, he reveals, generates about Sh5 million annually.

“We offer quality silage to farmers at affordable rates. Loose silage goes for Sh9 per kg while that silage in bails goes for Sh12 per kg. Each bail weighs between 370kgs and 400 kgs.

“From the sales, a profit of one shilling is achieved from each kilo since the prices are friendly to support local farmers,” he says.

De Jong, an animal nutritionist says though he is not making super profits as many may assume, his pride is to see the attitude change in locals as they embrace quality animal feeds and modern technologies.

But still, there is work to do, he admits.

No shortcuts please

And it has not been a walk in the park. Some farmers he says, are yet to accept that maintaining a cow is not a cheap venture and there are no shortcuts.

“Some traditional farmers believe that maize is meant for human consumption, and it has taken time for them to accept that maize can be used to prepare quality silage,” he says.  

The biggest challenge he faced was the many business procedures and levies, to establish the business.

Best practices

“After getting a business permit, there are additional costs to get some certifications. I am not an exception by being a foreigner because even local entrepreneurs face the same,” he says.

Other than selling quality hay to his clients, he is also on a mission to educate them on the importance of embracing best practices in dairy production.

“I noticed that most farmers practice poor animal husbandry. I found farmers claiming to be making silage but when I looked at it, it was contaminated with manure. Such practices are costly because they lead to animal losses,” says De Jong.