Kenya Agrodealer Strengthening Program

Overview:

The three-year Kenya Agro-dealer Strengthening Program (KASP) project, made possible by a grant from the Alliance for Green Revolution in Africa (AGRA), strengthened Kenyan agro-dealers by providing training in business management and productive farming methods and increased access to agro-dealers in remote areas, ultimately raising rural incomes and growing household productivity.

CNFA worked to improve the input supply and output marketing distribution channels available to smallholder farmers in rural Kenya by expanding a commercially viable network of rural retail enterprises. KASP built on the foundation of existing agro-dealers in Kenya and expanded the network to cover 85 districts located in targeted agricultural areas across the country. Expansion of this network benefited smallholder farmers by greatly reducing the distance traveled to obtain needed equipment and farm inputs.

Program Approach:

• Strengthened the business and technical skills of agro-dealers to better serve the needs of smallholder farmers;
• Improved rural access to finance to jumpstart agro-dealer enterprises in areas where none existed;
• Increased smallholder farmer access to larger markets to distribute their products by working with agro-dealers to develop and deliver basic output marketing training;
• Increased farmer awareness of market opportunities, helping to link them to existing market channels;
• Advanced agricultural policy advocacy by creating a mechanism for sustaining a public-private policy dialogue.
• Agro-dealer Surveys:CNFA carried out agro-dealer surveys in all 85 districts of KASP operation and developed a comprehensive database of 5,156 agro-dealers, representing 52% of the estimated 10,000 agro-dealers in Kenya at the time. The team also developed GIS-based maps showing agro-dealer density and distribution. AGMARK boasts the most comprehensive database of agro-dealers in Kenya and is now used by leading stakeholders in the agricultural inputs industry;
• Business Management and Technical Training:CNFA certified 1,976 agro-dealers through a six-module business management training program that included sessions on managing working capital, managing stocks, costing and pricing, selling and marketing, record keeping, and managing business relationships. CNFA/AGMARK also worked with input suppliers to develop and deliver technical training to agro-dealers in product knowledge, handling and safe use of pesticides, herbicides and fertilizers, and use of improved seed, using demonstration plots and farmer field days to increase awareness and demand for improved inputs. AGMARK-led training is now recognized by leading stakeholders in the inputs industry, including the Ministry of Agriculture, who has required individuals to be trained by AGMARK in order to participate in certain government subsidy programs;

• National Accelerated Agricultural Input Access Program:NAAIAP is a government-sponsored program targeting resource-poor farmers to facilitate access to improved farm inputs with the aim of improving agricultural production of staple foods and promoting the use of quality farm inputs for increased productivity. Since its inception in 2008, KASP was involved in the program by preparing agro-dealers with business and technical skills and financial support to enable the agro-dealers to provide farmers with the correct information and inputs. The subsidy program worked with more than 60 districts (over 95,000 farmers) in the country. Those who benefited from the program received seeds and fertilizers valued at $7.8 million;
• Credit and Financial Services:Credit guarantees are an important instrument in enabling small rural-based and start-up agro-dealers to access the credit necessary to stock their stores. CNFA/AGMARK deliberately chose to partner with wholesalers and microfinance institutions because the more established financial institutions do not target them. A matching investment facility targeted two areas: agro-dealer start-up and grain bulking and aggregation;
• Technical Training:CNFA/AGMARK facilitated agro-dealer training on technical knowledge of inputs by input supply companies, in addition to project training on seeds, agrochemicals, veterinary and fertilizer companies, product knowledge, and safe use, to help teach farmers at the point of sale. Other stakeholders, including the Ministry of Agriculture (MOA), Agrochemical Association of Kenya (AAK), Pest Control and Produce Board (PCPB), Kenya Health Inspectorate Services (KEPHIS), Kenya Bureau of Standards (KBS), National Environmental Management Authority (NEMA), Kenya National Agro-dealers Association, and various financial institutions, were also involved in the trainings to ensure that the various components of agricultural input handling are exhausted. These interactions provided vital linkages for continued business and education relationships;
• Output Marketing:CNFA strengthened the linkage between input and output distribution channels, and used the rural retailer as a link back to cash markets for their farmer customers. KASP provided agro-dealers with small matching grants to improve storage, install small processing facilities, and invest in transportation, packaging, and handling equipment for farmer outputs;
• Demand Creation:Through demand creation activities, farmers were exposed to different methods of growing crops, the use of hybrid seeds, the use of veterinary products, and the proper handling of fertilizer and other farm products. The seed and fertilizer companies were able to penetrate the market after establishing demonstration plots and holding field days to show farmers, first-hand, the quality that could be produced with improved seed and fertilizer. Over 142,000 smallholder farmers attended KASP-sponsored farm input exhibitions and were exposed to a broad range of productivity-enhancing farm inputs and services;
• Output Marketing:In all of its agro-dealer programs, CNFA strengthens linkages between input and output distribution channels and uses rural retailers as a link back to cash markets for their farmer customers. The agro-dealer serves as a point of market information, trades in outputs as well as inputs, and often engages in primary processing, storage, or handling. To strengthen these initiatives, KASP provided agro-dealers with small matching grants to improve their storage facilities, add small-scale processing capacity, and invest in transportation, packaging, and handling equipment for farmer outputs;
• Association Development:KASP created a sustainable forum for advocacy on behalf of small businesses and agro-dealers throughout target districts and nationwide. CNFA has previously helped launch agro-dealer associations in Kenya and Tanzania and built their capabilities through trainings on organizational management, member services, networking and advocacy, and capacity building. CNFA/AGMARK activities led to the formation of 25 agro-dealer associations, including one national-level association, KENADA.

Overview:

The Improving the Productivity and Incomes of Smallholder Farmers in Western Kenya initiative aimed to expand the agricultural input distribution system across four key districts of Bungoma, Bondo, Siaya, and Vihiga. This pilot project focused on the development of rural agricultural input stockists, accessible to smallholder farmers and local communities. Through its locally registered Kenyan affiliate AGMARK, CNFA addressed the constraints in the input distribution system to stimulate the flow of productivity enhancing inputs and provide increased production, food security, and incomes to smallholders.

Program Approach:

• Built the capacity for stockists via training in both agricultural inputs, product knowledge and safe use, and business management. CNFA leveraged both “embedded” services provided by companies on products and independent trainers for teaching business management skills;
• Drafted six new training modules comprised of Working Capital Management, Stock Management, Selling and Marketing, Costing and Pricing, Record Keeping, and Managing Relations and Networks (Supply Companies, Banks, and GOA Agencies) information;
• Used a Financial Innovation Fund to provide partial guarantees to reduce initial risk for companies and wholesalers interested in selling to project-supported stockists.

Overview:

The four-year (2010-2015), $4 million Economic Prosperity Initiative (EPI), funded by USAID, improved enterprise and competitiveness at the industry and country level in Georgia. Working under contract with Deloitte, CNFA implemented activities with a specific emphasis on mandarins, hazelnuts and greenhouse and open-field vegetables. EPI provided technical assistance to enterprises, facilitating trade by creating market linkages between producers and buyers and assisting in strengthening agricultural policy.

EPI selected hazelnuts, mandarin oranges and several greenhouse vegetables as the focus value chains of its programming. These value chains were targeted for technical assistance, training, study tours and grants. CNFA focused specifically on improving the competitiveness of targeted agricultural sectors, working at all points along targeted value chains with agriculture traders, distributors and buyers, creating access to market information and joining financial institutions and export buyers.

EPI built upon CNFA’s existing network of 60 Farm Service Centers (FSCs) and Machinery Service Centers in Georgia, which served as delivery points for extension, outreach and advocacy. EPI used CNFA’s work with Georgian processors (GlobalGAP, ISO and HACCP) to improve operations and quality standards, enabling them to better respond to international market demand.

Approach:

1. Strengthened Value Chain Competitiveness: EPI improved the competitiveness of mandarin, hazelnut and greenhouse and open-field vegetable value chains.
2. Improved Access to Inputs and Extension Services: The initiative leveraged existing farm and machinery service centers to serve as delivery points for extension, outreach and advocacy.
3. Built the Capacity of Processors: EPI improved operations and quality standards (GlobalGAP, ISO and HACCP), responding to international market demand.
4. Increased Farmer Access to Training: To provide “on-the-field” farmer training, EPI created Knowledge Plots (KP) and Knowledge Centers (KC).

Overview:

As part of the Rural Livelihoods Diversified Activity – Soil Fertility (RLDA-SF) consortium, CNFA implemented the one-year, $300,000 USAID-funded Chinyanja Triangle Soil Fertility Project, which promoted the development of private-sector networks of agrodealers to commercialize agricultural inputs distribution in Southern Africa. Through the organization’s Malawi affiliate, Rural Market Development Trust (RUMARK), CNFA designed and implemented this program to expand the agricultural input distribution system, increase the flow of inputs to smallholder farmers and increase production and incomes in the Malawi and Mozambique region of Chinyanja Triangle.

Approach:

The Chinyanja Triangle Soil Fertility Project worked to build the business capacity of agrodealers, link agrodealers with supplies, demonstrate new technologies to targeted beneficiaries and conduct training in product use. It also trained a cadre of professional trainers and provided overall support across the following areas:

1. Provided Information and Knowledge Management: CNFA held training sessions on product knowledge and handling, equipping agrodealers with knowledge and skills on how to handle inputs, such as seeds, fertilizers and agro-chemicals. The project increased agrodealers’ awareness of the Government of Mozambique’s policies on the use and marketing of agro-chemicals and their relevance to business practices and informed agrodealers on the issues and challenges associated with developing linkages with supply companies. RLDA-SF also improved agrodealers’ knowledge of area-specific fertilizers.
2. Introduced Training Curriculum: CNFA integrated specific “Demand Creation on Fertilizer Use and Efficiency” (FUE) courses into the program, enabling agrodealers to more effectively promote their products. Demand creation activities, such as demonstration plots, also provided agrodealers with marketing tools to promote their stocks to farmers.
3. Developed Market Facilitation and Input Supply System: CNFA led business management training courses to build and improve management practices for retail agricultural enterprises. This enabled local agrodealers to play a more pivotal role in creating a more efficient distribution system for channeling agricultural inputs to Mozambique’s smallholder farmers. Over the course of the project, CNFA equipped commercial trainers with skills that would enable them to be effective trainers of agrodealers. Thirteen trainers are now able to offer business management training to new agrodealer clientele.
4. Expanded Geographic Reach: CNFA/RUMARK collaborated with input supply companies to expand their reach within the geographic area of Mozambique inside the Chinyana Triangle. As part of this effort, three supply companies participated in CNFA-led meetings regarding the mobilization of supply company credit for trained agrodealers or agrodealer associations.

Overview:

New Opportunities in Agriculture (NOA), a five-year, $2 million program funded by USAID under the RAISE PLUS IQC, boosted agricultural production by capitalizing on the strengths of traditional crops, introducing new high-value crops into market, involving women, youth and minorities in the production process and advancing and expanding value chains to draw in infrastructure investment and strengthen export capacity. From 2011 to 2015, NOA put tools in the hands of Kosovar farmers, supporting them in all aspects of production, marketing and entrepreneurial growth by providing vital training and opening market linkages to encourage and facilitate trade.  Working under contract with Tetra Tech, CNFA provided short-term technical expertise in value chain development through its USAID-funded JOhn Ogonowski and Doug Bereuter Farmer-to-Farmer Program and extensive network of agribusiness consultants.

Approach:

From 2011 to 2015, NOA promoted value addition in targeted sectors, introduced new crops, including asparagus and saffron, and developed various crop-based producer groups to provide stronger linkages between producers and buyers throughout the region. It also expanded access to credit training and technical assistance for loan borrowers and officers and provided mentoring, training, workshops and technical assistance for private-sector agribusinesses, building the capacity of Kosovo’s private sector agribusinesses.

1. Increased Affordable and Accessible Credit: NOA enables producers and other value chain actors to access capital or credit through a variety of mechanisms, such as loans and grants. A total of 142 small or medium enterprises received access to credit and grants issues for value chain operators and helped procure a variety of new agricultural equipment, allowing firms to increase productivity and reach new markets.
2. Linked Farmers to Markets: NOA exposed Kosovar farmers and processors to new markets by organizing study tours and promotional events, as well as facilitating relationships between producers and buyers. These activities exposed producers to new technologies for crop production, new varieties to enhance yields and quality and new, higher-priced crops. In addition, these activities increased awareness amongst potential buyers of new opportunities arising from raw materials produced domestically. The program saw over $3.3 million in sales as a direct result of linkages created between farmers, processors and traders and a total of 310 delivery contracts were issued for targeted crops.
3. Diversified and Increased Agricultural Products: NOA also expanded production by training farmers on the use of new technologies and value0adding processing, including a new processing line for bagged lettuce — the first of its kind in Kosovo. A total of 25 new technologies and management practices were introduced through the program and 1,200 farmers and processors adopted these new technologies and management practices. CNFA designed a toolbox of interventions to encourage table grape farmers to use growing techniques specific to table grapes, which included instruction on best cultural practices, improved canopy management and integrated the modified “T” trellising. This allowed for an extended growing season across all targeted crops, enabling farmers to produce earlier and earn higher prices.
4. Improved Food Quality and Safety: NOA worked to improve food quality and safety to ensure Kosovar producers and processors abided by existing food safety regulations issued by government authorities. By working with firms to become certified and meet international standards, NOA built consumer confidence in local products in areas including water sanitation, the establishment of a Listeria exclusion and testing program, pre-harvest inspection procedures, hygiene-enhancing supplies and equipment and the development of a recall plan. Food quality and safety measures implemented through NOA helped to improve product formulations, enrich human resources and further the development of Kosovo’s food industry.

Overview:

CNFA implemented the two-year (2012-2014), $2 million Commercial Farm Service Program (CFSP), a program funded by USAID’s Innovation Fund for Ethiopian Agriculture (IFEA), adapting its proven Farm Service Center (FSC) solution to the Ethiopian context for the first time. By establishing FSCs as “one-stop-shops” in their communities, entrepreneurs provided a complete range of inputs, services, information and output marketing linkages to Ethiopian smallholders. This solution continued to support farmers in making the transition from subsistence to commercial production as part of the Feed the Future Ethiopia Farm Service Center Project, which CNFA implemented in Ethiopia from 2015 to 2017.

Approach:

Through mentoring and training, the program provided locally owned businesses with uniform branding, technical and business management training, expert agronomic and veterinary consultations and assistance with inventory management, marketing, agriculture extension and outreach. In support of a wholesale buying cooperative approach, the CFSP team worked with the FSC owners and operators to legally establish and register a joint venture named EGAA Agricultural Input Supply PLC.

1. Established FSCs: Established six locally-owned retail farm service supply and service locations or FSCs with inventories, training, services and output market linkages.
2. Created APEX Organization: CFSP created a wholesale buying cooperative, owned by and dedicated to serving the inventory needs of the FSCs and linking them to national suppliers.
3. Supported Marketing and Business Development: Delivered trainings on uniform branding, business skills, technical and advisory capacity, quality standards and environmental and worker safety procedures across the network.
4. Improved Farmer Capacity: Promoted FSC-led farmer outreach activities, including training seminars, demonstration plots and field days to showcase the impacts of improved inputs and improve farmer production skills.

Overview:

The Partnership for Economic Growth (PEG) was a two-and-a-half-year, $10 million project funded by USAID (2011-2013), which supported the Somali people’s goal to improve economic growth and livelihoods in Somaliland and Puntland. Under the leadership of Development Alternatives Incorporated (DAI), the project collaborated with the Ministry of Livestock, Ministry of Commerce and private sector groups to improve the environment for investment and export marketing and generate agricultural-based employment.

The livestock sector in Somaliland faced significant challenges including increased competition from neighboring nations, trade barriers due to disease control, lack of access to veterinary inputs and inefficient veterinary services. However, a strengthened livestock sector is vital, as 65% of the economy was comprised of livestock-related commerce. In partnership with private and public sectors, CNFA contributed its experience targeting all livestock value chains, assisting the sector in the following areas:

• Capacity building of local veterinary services
• Community Animal Health Workers (CAHW) training
• Improved animal feed and education for fodder farmers
• Commercial livestock feed supply systems and feedlot enterprises strengthening and improvement
• Dairy processing facilities’ development
• Analysis of livestock end-market
• Rural finance services

Approach:

1. Improved Capacity of Livestock Organizations and Enterprises: Under the Livestock Component, the largest of the PEG Project, CNFA advised local non-profit organizations and enterprises that were recipients of capacity-building and matching grants. These grants were utilized for the creation and implementation of demonstration farms, technical training in improved livestock care, dairy and fodder production techniques, livestock fattening programs and capacity building of local stakeholders.
2. Expanded Livestock Sub-Sectors through Matching Grants to Local Enterprises: The Livestock Component collaborated with four small and medium livestock enterprises under matching grants. The goal of the matching grants was to expand various subsectors of the Somali livestock industry, including commercial livestock feed supply systems and dairy production through local organizations. Some of the PEG matching grant recipients and illustrative activities included the following:
   • Al Husseini Farm and An’Aam Farm, two Somali feedlot enterprises, received PEG grants and technical training in improved fodder production techniques. An’Aam Farm was created by an association of multiple investors, who collectively contributed more than $1 million in funds to create the farm. Al Husseini Farm operated on a much small scale, but both were fully functional feedlots providing animal fattening services to local farmers.
   • Horumar Farm, a model dairy farm established with PEG support, specialized in camel milk and fodder production. The farm received a small matching grant to provide fodder production, dairy production and dairy processing training to increase the quality of milk in the surrounding area. Inspired by the success of Horumar Farm, one Somali woman purchased several camels purely to be able to take advantage of the growing market.
   • With PEG capacity-building assistance, Togheer Women’s Livestock Traders Association initiated a small ruminant buying scheme, which purchased ruminants in rural areas and transported the animals to urban areas, primarily Buroa, or exported them regionally to an area with increased demand and higher prices. Making only a three-dollar profit per head, the association applied for a PEG grant to begin a small-scale feedlot. The fattening station increased the weight o sheep and goats, resulting in a price increase of up to 20% per animal at the end market.
3. Expanded Regional Access to Micro-Finance and Start-Up Capital: Kaaba Microfinance Institution (K-MKFI) was able to open an office in the town of Gabiley through PEG funds, serving micro-enterprises and the informal markets in Western Somaliland. K-MKFI used an Islamic-compliant lending methodology which enabled a previously untapped market in rural areas to access finance. The majority of K-MKFI’s microfinance clients were small-scale livestock producers and traders.
4. Conducted a Market Analysis of the Somali Livestock Value Chain: PEG contracted AIMSm a local consultancy firm, to complete an end-market analysis of the livestock value chain in Somaliland and the larger region (Egypt, Oman, Saudi Arabia, United Arab Emirates and Yemen). This analysis and the subsequent PEG knowledge transfer activity highlighted both opportunities and constraints facing the livestock value chain in the region.
5. The Livestock Investment Chapter of the 2013 Somaliland Investment Guide: The findings of PEG’s Livestock End Market Study were synthesized in the 2013 Somaliland Investment Guide. The guide highlighted investment opportunities through a printed edition and website feature and provided a platform to expand access to investment capital and targets potential diaspora investors.

Overview:

The five-year, $7.4 million John Ogonowski and Doug Bereuter Farmer-to-Farmer Program in Eastern Europe, Caucasus and Central Asia, funded through USAID, focused on select agricultural value chains, identifying needs at every level from production to marketing.

From 2008 to 2013, CNFA sent more than 340 volunteers focusing on fruits and vegetables, dairy and livestock value chains to Belarus, Georgia, Kosovo, Moldova, Tajikistan, Ukraine and Uzbekistan.

Approach:

CNFA relied on the expertise of U.S. volunteers from diverse backgrounds to respond to the needs of host country farmers and organizations. Volunteers were deeply experienced in their fields and represented all ages and industries as farmers, bankers, professors, civil servants and active and retired business people.

The assignments, ranging from two-to-four-week long projects, varied in scope, from training associated service providers and agribusinesses in financial management to marketing, cooperative development, agricultural production, post-harvest and processing technologies, international quality standards and rural finance.

Overview:

The five-year, $7.4 million John Ogonowski and Doug Bereuter Farmer-to-Farmer program in East Africa, funded through USAID, focused on select agricultural value chains, identifying needs at every level from production to marketing.

From 2008 to 2013, CNFA sent over 320 volunteers to Kenya, Tanzania and Uganda, and a limited number of volunteers to Rwanda. The hard work put forth by volunteers and field staff made the program a success.

Approach:

CNFA relied heavily on the expertise of U.S. volunteers from diverse backgrounds to respond to the needs of host country farmers and organizations. Our volunteers possessed deep expertise in their fields and represented all ages and industries, including farmers, bankers, professors, civil servants and active and retired business people.

The assignments, ranging from two to four-week-long projects and varied in scope, trained associated service providers and agribusinesses in topics from financial management to marketing, cooperative development, agricultural production, post-harvest and processing technologies, international quality standards and rural finance.