ORGANIC VEGETABLES AND FRUITS FOR LOCAL MARKET BUSINESS GROUP
Exploring Opportunities for Sustainable Organic Vegetables and Fruits Business Partnerships
Exploring Opportunities for Sustainable Organic Vegetables and Fruits Business Partnerships
Organic agriculture has the potential to generate significant incomes for households, thus potentially uplifting smallholder-farming households from poverty cycles and food/nutrition insecurity. Access to markets, increasing profits and health considerations (farmers/their families) are among the key factors identified as driving smallholder organic production. However, not all farmers are effectively linked to markets. Farmers view the lack of/limited marketing opportunities as one of the crucial gaps in sustainable farming.
This led to the birth of Participatory market chain approach (PMCA). The objective of PMCA process is to involve all stakeholders within the agriculture value chain in the marketing process. Currently the farmers involved in this process are from Murang’a County as a pilot initiative which can later be adopted to other regions in Kenya.
The Organic Vegetables and Fruits Business Group will have Knowledge exchange sessions between Farmers, Traders and Experts in various fields. To take part in the sessions take a look at the time table below:
TOPIC | Sub Topic | Main Target Group | DATE | |
1. | Organic Production Knowledge | Soil Fertility and Inputs | Fruits For Export (Farmers) | 03/05/2021 |
Pest disease Control option and Inputs | Fruits For Export (Farmers) | 05/05/2021 | ||
2. | Post-harvest processing and value addition | Drying processes | Herbs and Spices (Farmers) | 10/05/2021 |
Blending and packaging | Herbs and Spices (Farmers) | 12/05/2021 | ||
3. | Organic Awareness / sensitization and Messaging(Communication) | Best practices in Organic Awareness Dissemination | Local Veg and Fruits (Farmers and Traders) | 14/05/2021 |
4. | Trend and market analysis for herbs and spices | Herbs and Spices (Farmers) | 17/05/2021 | |
5. | Logistics planning, transport, and order fulfillment | Key considerations in developing a logistics system | Local Veg and Fruits (Farmers) | 21/05/2021 |
6. | Pricing and premiums | 1. Farm price setting process
2. Premiums Calculating premiums based on market profiles |
Local Veg and Fruits (Farmers) | 26/05/2021 |
7. | Business / enterprise management | Business Canvas
Book Keeping |
Local Veg and Fruits (Farmers) | 31/05/2021 |
8. | Packaging and branding | Basic sorting and grading processes for Fresh Produce
Steps to developing a Brand |
Local Veg and Fruits (Farmers and Traders) | 04/06/2021 |
9. | Certification Training | Standards
Quality Management |
Fruits For Export (Exporters / Processors and Farmers) | 07/06/2021 |
ICS
Fraud |
Fruits For Export (Exporters / Processors and Farmers) | 09/06/2021 | ||
10. | Sales and Competition in the Global Market | Market drivers and what to look out for in market sourcing | Fruits For Export (Exporters / Processors) | 11/06/2021 |
The Organic Vegetable and Fruits Business Group (OVFBG) has met three times i.e.
From the meeting several key gaps were identified by farmers and the processors involved, to bridge some of the gaps activities have been undertaken which include;
PARTICIPATORY MARKET CHAIN APPROACH
DEVELOPING PARTNERSHIPS FOR NEW BUSINESS OPPORTUNITIES
ORGANIC VEGETABLES AND FRUITS BUSINESS GROUP (OVFBG)
COMPENDIUM OF MINUTES OF ALL MEETINGS HELD
Min 01-OVFBG 0312/2020 Introduction
The break out session had more than 10 attendees including the facilitator, a number joined the meeting later as discussion had progressed. After preliminary introductions, the facilitator led the group through a value chain mapping process, where all the participants got to know exactly where on the value chain they / their organisations existed. ( See Figure 1)
Producers |
Retailers |
(Processors) |
Retailers |
Consumers |
Value Chain Actors |
Private Service Providers |
Public Supporting Actors |
Group «Organic Vegetables and Fruits Group 1» |
Figure 1 Value Chain Mapping |
Min 02-OVFBG 0312/2020 Introductory Speech
The Ministry representative (Trade and Marketing Department) mentioned the work by the government towards promoting marketing of farmer produce in premium shops in Nairobi. He also mentioned the presence of an Organic Desk in the Agri-Nutrition Department which has been tasked with promoting organic food due to its nutritive and food safety importance. The Ministry as well supports bulking and aggregation of produce to create opportunities for large scale trade.
The Session facilitator invited members to mention their enterprises and observation in terms of market opportunity.
Min 11-OVFBG 0312/2020 Discussion Points;
Min 12-OVFBG 0312/2020 Summary
From the discussions the following were agreed upon as the most important business opportunities;
Min 13-OVFBG 0312/2020 Outlook
Stakeholders Present
Name | Organisation | Contact | |
1. | Yash Wadhwa | The Cornershop | 0716 905 486 |
2. | Samuel Maina | Murang’a Organic Growers Cooperative | 0724 912 924 |
3. | Grace Wangui | Agrifood Organics Shop | |
4. | Joseph Ngure Makara | Kangari Organic | |
5. | Cresence Kirigi Mbatia | Murang’a Organic Growers Cooperative | |
6. | Joseph Kabogo | Baraka Organic Kangari | |
7. | Irene Kadzere | PMCA | +41 76 335 68 06 |
8. | Deepu Mahajan | Being You Ltd | 0722 350 803 |
9. | Clement Rurinja | PMCA | 0718 062 479 |
10. | Duncan Ndirangu | Organic Agriculture Centre of Kenya | 0735 219 246 |
11. | Christine Chege | Agrifood Organics Shop | 0721 475 770 |
12. | Lawrence Gitonga | PMCA | 0723 669 212 |
13. | Mary Njeri | Green Wells Organics | 0713 778 900 |
14. | Priti | Being You Ltd | |
15. | Andreas | Africrops Ltd | +49 175 418 98 38 |
16. | Kelvin Ogalo | Organic Fruitas and Vegetal Stores | |
17. | David Omato | Organic Fruitas and Vegetal Stores | 0702 044 517 |
18. | Martin Njoroge | PMCA | 0725 295 437 |
19. | Kamande | Samawakama Organic Growers Cooperative | 0720 211 777 |
Min 01-OVFBG 1501/2021 Preliminaries
Meeting started at 15:00 pm East African Time (EAT) Mr. Martin (facilitator) requested all members present to introduce themselves.
Min 02-OVFBG 1501/2021 Adoption of the Agenda
Min 03-OVFBG 1501/2021 Stakeholders Updates
Since organic vegetables and fruits; group was formed on 3/12/2020 there has been several engagements between the organic farmers (Sabasaba (Samawakama) and Kangari (Kangari organic farmers and Murang’a organic co-operative) and traders, retailers and processors of the organic products.
Mr. Martin introduced the objectives of the formation of the group and role played by Participatory Market Chain Approach (PMCA) towards the success of the organic products market.
There was engagement among the stakeholders in identifying the opportunities from the December summit which will lead successful business opportunities and expansion of the existing ones.
One on one engagement among the farmers and stakeholders along the organic vegetables and fruits will go a long way in bridging the marketing gap. Three thematic groups were formed to foresee the market development which are;
Update from organic business summit discussion
Way forward from the Business Summit Discussions
Min 04-OVFBG 1501/2021 Way Forward
All member present saw the need to have a physical meeting to discuss;
How to cope with The physical meeting was planned for Friday 22nd at Organic Fruitas and Vegatal Stores Next Gen Mall, Mombasa road, hosted by Kelvin Ogalo.
Min 05-OVFBG 1501/2021Adjournment
Meeting ended 16:20 pm E.A.T.
Stakeholders Present
Name | Organisation | Contact | |
20. | Kelvin Job Ogaro | Organic Stores Ltd | |
21. | Mercy Kemunto | Organic Stores Ltd | |
22. | Angela Atieno | Organic Stores Ltd | |
23. | Alice Kimani | Organic Stores Ltd | |
24. | David Omato | Organic Stores Ltd | |
25. | Alfred Mwangi | Organic Stores Ltd | |
26. | Priti Shah | Being You Ltd | |
27. | Deepu Mahajan | Being You Ltd | |
28. | Lukas Njenga | Deed Institute | |
29. | Helen Njenga | Deed Institute | |
30. | Sylvia Kuria | Sylvia’s Basket | |
31. | Grace Wangui | Agrifood Organics | |
32. | Mary Karani | Hermes Investments | |
33. | Johnson Nyaga Muturi | OACK | |
34. | Martin Njoroge | PMCA/ KOAN | |
35. | Emma Njoki | PMCA | |
36. | Clement Rurinja | PMCA | |
37. | Lawrence Gitonga M | PMCA | |
38. | Janet Chege | Organic Farmer | |
39. | Zipporah Wairimu | Organic Farmer | |
40. | Lucy Muigai | Organic Farmer | |
41. | Beatrice Nyambura | Organic Farmer | |
42. | Harrison Kihara | Organic Farmer | |
43. | Samuel Maina Ndirangu | Organic Farmer | |
44. | Joseph H. Mbogo | Organic Farmer | |
45. | Jackline Njeri | KOAN |
Min 01-OVFBG 2201/2021 Preliminaries
Meeting started at 10.30 East African Time (EAT) Mr. Martin (facilitator) requested all members present to introduce themselves.
Min 02-OVFBG 2201/2021 Adoption of the Agenda
Min 03-OVFBG 2201/2021 Introductions and backgrounds
Mr. Martin introduced the objectives of the formation of the group and role played by Participatory Market Chain Approach (PMCA) towards the success of the organic products market.
This he reiterated was highly dependent on engagement among the stakeholders in identifying business opportunities in the organic veg and fruit sector which will lead successful trading and expansion of the existing lines of business.
Knowing each other’s business was mentioned as a first step. Traders and retailers normally compete for the same market, traders and retailers as well normally have frequent misunderstanding with farmers as their main produce suppliers. These are problems experienced in both conventional and organic agriculture.
Farmers from Murang’a were represented by, Janet Chege, Zipporah Wairimu, Lucy Muigai. Beatrice Nyambura, Harrison Kihara, Samuel Maina Ndirangu and Joseph H. Mbogo. Most of them ventured into organic farming for personal health protection and also to benefit from the business opportunities found in selling chemical free food.
Min 04-OVFBG 2201/2021
From the introductions all the actors were mapped to visualize the value chain and the number of players at each level.
SUPPORTING ACTORS/ PRIVATE |
PROCESSORS |
PRODUCERS/ FARMERS |
TRADERS |
RETAILERS |
CONSUMERS |
Figure 2 Map of Actors |
Min 05-OVFBG 2201/2021
The main value chain actors identified from the mapping exercise were then asked to list the most important factors necessary for her business to be successful.
Organic Stores
Agrifood
Sylvia’s Basket
Being You Ltd
Murang’a Organic Farmers Cooperative
Min 06-OVFBG 2201/2021 Opportunities and Strategies in organic business
After discussions on individual business success factors, a more general approach was broached. What are the industry realities and how can opportunities for all value chain actors be extracted from these realities?
How could the realities in the market lead to business opportunities?
One of the ideas championed was coming up with a Consortium of organic retailers. Where all interested retailers could combine resources to build effective demand for organic produce in the local market. This would ensure
The consortium could work together to figure out how to address their main challenges in the organic sector such as how to
It was suggested that targeting a specific sector would allow for better outcomes since all energy could be focused there. The health sector was highlighted as having the biggest potential for market growth. If they can gain audience with government and other decision makers it could form part of the low hanging fruit.
A strategy for targeting the health sector by the consortium needs to be devised, to be included in the strategy could be
Min 07-OVFBG 2201/2021 Way Forward and Action Points
A strategy for targeting the health sector by the consortium needs to be devised, to be included in the strategy could be
Action Points
Min 08-OVFBG 2201/2021 Next Meeting
Date: Tuesday February 9th 2021
Venue: Kangari Organic Farmers’ market
Time: 10.00am
Other details – It takes roughly 1 hour 20 minutes to get to Kangari from Nairobi Thika Road.
Meeting ended 14:20 pm E.A.T.
Min 01-OVFBG 0902/2021 Preliminaries
Meeting started at 10.00 East African Time (EAT) with a farm visit to see how the farmers manage their farms.
Min 02-OVFBG 0902/2021 Adoption of the Agenda
Min 03-OVFBG 0902/2021 Kangari Organic Farmers Market visit
Being a field visit, the visitors were takes through the Kangari organic farmers market to observe how the farmers marketed their produce to local the local community. The market had over 30 farmers with more than 20 different vegetable and fruit items. The Kangari organic farmers market is held every Tuesday and Thursday with the farmers having well branded dust coats to distinguish them from other traders. The farmers pay the County market fees just like other traders and are able to market their produce. Although the market is a good outlet to get clients they are still willing to engage buyers to increase their sales revenue.
From this perspective the retailers and traders from PMCA were able to interact with the farmers and not just their leaders and create
Min 04-OVFBG 0902/2021 Kangari Organic Farmers Market visit
Murang’a organic Farmers cooperative has a cold room build to house their produce and keep it fresh when fulfilling orders from buyers outside the county. The cold room also serves a packing and grading point to make sure orders are processed waiting for collection by the buyers.
The parties present were taken through the operation of the cold room and how the farmers process orders.
The cold room is a charcoal a ambient cooling structure which utilizes thermal regulation through evapotranspiration as the main cooling mechanism. Water is trickled all around the walls of the structure and through evaporation the interior of the structure is cooled. The process takes a few hours before it reaches maximum cooling efficiency, therefore they start trickling the water several hours before the order is processed to make sure the room is at optimum temperature before produce starts to be received.
Order fulfillment process;
Other discussions
Min 05-OVFBG 0902/2021 Organic Agriculture Centre of Kenya
The participant made their way to the Organic Agriculture Centre of Kenya, where they had their lunch and agreed on the next steps.
Next steps
Min 06-OVFBG 0902/2021 Next Meeting
Date: Friday 26th February 2021
Venue: Manyatta Sabasaba – Wakas Organic Demo Farm
Time: 10.00am
Other details – It takes roughly 1 hour to get to Sabasaba from Nairobi Thika Road.
Meeting ended 15:20 pm E.A.T.
Agendas
1.organic messaging body
2.logistics
Min 01-OVFBG 2602/2021 Prayers
Min 02-OVFBG 2602/2021 Preliminary.
Min 03-OVFBG 2602/2021: expectations.
After the introductions, everyone was requested to state their expectations outcome form the meeting.
The following were the responses.
Min 04-OVFBG 2602/2021 Current logistical chain of operations
Each group was asked to explain how they handle the market chain. It emerged that they all have a similar chain i.e., a call is received for order, price negotiations is set, the amount of order is stipulated, harvesting and aggregation is done, the produce is delivered/transported to the buyer and then the payment is later done, mostly payment is through m-pesa and sometimes a group cheque is issued whereby its cashed and each farmer is paid according to their delivered amount.
Some buyers however are purchasing direct from the farmers through their coordinated groups, especially the samawakama groups whereby the umbrella group sometimes negotiates the terms of engagement.
Gatanga and kangari farmers sells their produce through the co-operative and they have a coordinator who receives orders from the buyers, consolidates and have the aggregated done and plans on delivery structure to the buyers.
Kangari organic market was also highlighted as a successful one and happening every Tuesday. It has a variety of organic items and there is increasing consumers and demand rate.
Min 05-OVFBG 2602/2021. Organic messaging body.
Everyone was requested to define what is organic. From their definition, key words were identified to form a good message which is suitable for market. However, everyone was tasked to consolidate a good message to be analyzed in the next meeting. The following are the key words to be adopted and not limited to:
Min 06-OVFBG 2602/2021. Logistics
Logistics mostly on aggregation and transport from the farm level to the market place is a challenge. This is because of the volumes required in the market being low yet the transport cost is high. To solve this issue, the following were the possible solutions discussed by the present stakeholders.
Min 07-OVFBG 2602/2021 Action plan
The following are the things that needs to be done.
Min 08-OVFBG 2602/2021 Adjournment
The next meeting will be held on 12th March, 2021 @sylvia basket, Ndeiya.
The meeting ended with a word of prayer from Clement.
Agendas.
Min 01-OVFBG 1203/2021 Prayers
The opening prayers were led by Caroline of Sylvia basket.
Min 02-OVFBG 1203/2021 Preliminary.
Sylvia welcomed everyone to the farm and gave a brief overview of the farm map and their operations.
Min 03-OVFBG 1203/2021 : expectations.
After the introductions, everyone was requested to state their expectations outcome form the meeting.
The following were the responses.
Min 04-OVFBG 1203/2021 action point and price setting
The present members agreed on solving the underlying issues on delivery and payment of the orders,
They also agreed on setting the prices so as to avoid mistrust in the operation. Though there was some problems in prices setting and communication which was discussed and solved through the small group.
The prices were also set on the through the consensus by various representatives of various commodities. However they are subject to further discussions and confirmation between the two parties.
They also said that the orders needs to be communicated early enough to help farmers consolidate their produce in time for delivery.
There was an agreement to also have a standard measurement of produce in kgs. This is to make sure that all the parties are satisfied with the produce and prices offered.
There was a trial run on the market which showed some gaps on the produce quantity, quality and prices which helped in planning the future market and price setting. There will be further trials for other markets to come up with a successful set-up of the future markets.
Image 1 Price List Set on March 2021
Min 05-OVFBG 1203/2021 Adjournment
The next meeting will be held on 15th April, 2021 @Kirwara, Gatanga during the launching of Gatanga organic market, .
The meeting ended with a word of prayer from Clement.
The Process is Facilitated by the following team;
The following Groups are represented
Welcome Stranger! Want to be included in the next Organic Vegetables and Fruits Business Group meeting? Well just …
The National Co-ordinator
Kenya Organic Agriculture Network
P.O.Box 2893-00100,
Nairobi, Kenya
Location
CPA Centre Block A,
Room B12,
Along Thika Road
Our support number is available from Monday to Friday
Business Hours:
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Weekends: Closed
0728 772 805
0731 772 805
info@koan.co.ke
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