production and marketing of certified horticultural fresh produce among the small holder growers in Kenya
Sustainable market link for the certified farm produce from the small holder growers in Kenya
The business involves receiving certified farm produce from the small holder growers at the HCDA packhouse in Nairobi of which I am a member. The produce will be sorted, processed, packaged and then delivered to the freight agents to be airlifted to the market. About 20-30 casuals will be hired permanently and 3 permanent staff will be employed with three distinct duties: One agronomist to work closely with the farmers at the farm level, a quality control supervisor at the packhouse level and one office assistant to aid in freight logistics, packaging materials procurements, office documentations and liaisons. The business minimally requires KSHS 1 200 000 as the running capital and KSHS 200 000 one off costs investments bringing a total of KSHS 1 400 000 as the initial capital investment. The projected minimum average monthly profits for the first year are KSHS 200 000 which by extension implies an annual profit projection of KSHS 2 400 000. The business anticipates an anuual growth rate of at least 25% both in the turn overs and number of employees. Besides those who will directly be employed by this venture, there will be numerous beneficiaries ranging from small holder growers, suppliers, freight agents, packaging companies, farm inputs suppliers, importers and the government.
Facts
2002
| Two years ago: | |
| Last year: | |
| This year (forecast): | 274,285 |
| Year 2 (forecast): | 342,857 |
| Year 3 (forecast): | 428,571 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 34,285 |
| Year 2 (forecast): | 42,857 |
| Year 3 (forecast): | 53,571 |
| Two years ago: | |
| Last year: | |
| This year (forecast): | 20 |
| Year 2 (forecast): | 30 |
| Year 3 (forecast): | 45 |
How do you expect this to be financed?
| Own Contribution in cash | 4,286 |
| Loans (debt) | |
| Shares in your company that you offer to investors (equity) | |
| Other sources | |
| Total finance needed (US$) | 4,286 |
The Business
The pruducts in this venture are horticultural fresh produce and the major export products that will be supplied all year round are french beans, sno peas, sugar snaps and passion fruits.
We will also supply mangos and avocados when they are in season.
The packaging type to be effected will be determined by the clients' specifications e.g loose packs, punnets, perforated bags and of course the weight specifications.
First, the main competitors are not Kenyan exporters but rather exporters from Moroco, Egypt and Guatemara. One of the key challenges that I wish to overcome is to supply strictly certified farm produce as per the traceability requirements stipulated by the EU market. This is attainable by not only training and enhancing capacity for the small holder growers, but also guaranteeing them a sustainable demand for their farm produce at relatively consistent prices all year round.
Secondly, I wish to improve on the packaging of the produce, an area in which from my previous market visits reveals that Kenyans are highly underperforming. This may include but not limited to importing packaging materials from my clients by sea. Thirdly, I want to penetrate the market through competitive pricing which will result from the loyalty I anticipate from my farmer groups following my undivided support to them which will include acquisition of farm produce, accesibility to loans as per their supply potentialities and development of workable business relations contracts.
Needless to point out is that I must visit the potential clients so that we develop realistic work terms and trade agreements as well as cultivate a lasting business relationship. As marketing tools, I will develop high quality brochures, name cards, CD's and the WEB by and by. Most important is to keep the customer happy be delivery of quality produce in the demanded quantities within the specified time frames at competitive prices.
The uniqueness of my services will be the excellent freight logistics which will enhance beating the delicate time deadlines demanded by the perishability nature of our products. On the same note, my customer service language will be unparalled.
The products will at all times retain uniqueness in uncompromised quality and unprecedented packaging in Kenya including the labelling of the boxes, punnets and bags. In future, I will consider pulping, freezing, canning and drying the fruits for exports.
The Entrepreneur & Management
First, I am a University graduate from JKUAT - Jomo Kenyatta University of Agriculture and Technology - in Physics and Mathematics. In my last year of study, I attendend a business course with KMAP - Kenya Management Assistance Programme - to enhance my skills in entrepreneurship. I have been focused in the horticultural industry ever since and after my appointment with the ADHEK group, I underwent various trainings with ICIPE, PACT Kenya and SET Resources in diverse disciplines like EUREPGAP, TRACEABILITY, BUSINESS MARKET DEVELOPMENT and STRATEGIC PLANNING. Moreover, I intensively interacted with many development partners like DFID though BSMDP, the CDE, ADEPTA and PROINVEST in an attempt to get aids to facilitate in the production and marketing of certified farm produce among small holder growers. Besides, I have visited the Middle East and EU markets intensively in an attempt to source sustainable market contacts for the small holder growers through the ADHEK project including being an active participant of the GULF FOOD 2005 In Dubai and the ANUGA TRADE FAIR in Paris - France. I have interacted with the vast horticultural Dutch markets and also Brussels, Belgium. Finally, I have exported personally and tasted the good fruits of the trade and thus the confidence in the venture.
Development
The development of this company within the first year will offer direct job opportunities to 3 permanent staff and at least 20 permanaent casual labourers.
The company will engange several farmers in farmer groups into production of certified farm produce. As such, the company will train, educate, motivate, vigourate and inspire farmers to rise from perceiving farming as a subsistence activity but rather look at it from an entrepreneural perspective. This has long term effects of poverty reduction amongs small scale farmers, boost in literacy levels, health and general living standards.
The export of certified farm produce will create an impresive global image of the Kenyan horticulturalists as well as provide the global market with safe food supply chain.
The establishment of this company will not only earn the country foreign exchange that counts largelly for the expansion of the local economy but will also boost the packaging materials, farm inputs suppliers, freight agents and the airline industry.
Finallly other industries will at the long run benefit like the microfinance industry which we will encouarage the small scale farmers to work closely with as well as the banking sector.