By: Eng. Mwamzali Shiribwa Ministry of Agriculture           AGRO-PROCESSING, AN ENGINE TO FUEL AGRICULTURAL DEVELOPMENT AND IMPROVE INCOMES IN THE COUNTIES             By: Eng. Mwamzali Shiribwa Ministry of Agriculture

INTRODUCTION Kenya’s agricultural sector is dominate with primary production with little on-farm and off farm processing The low level of processing translates into low incomes and less job opportunities Other model countries have higher levels of processing, e.g for fruits and vegetables the levels of processing are: Thailand 30%, Philipines78%, and Malaysia 83%.

Justification for agro-processing and value addition: To improve rural incomes by adding value to raw materials Save on transport costs by converting high volume materials to low volume high value products Create opportunities to use by-products as source of raw materials for other farm operations such as animal feed, manure and fuel Provide opportunity to reduce farm losses by conversion of perishable produce to longer shelf life produce Creation of jobs leading to poverty reduction and rural urban migration

MARKET SIZE & MARKET ACCESS Once regional integration is completed, EAC will have the 2nd largest single market in Africa of around 120 million consumers. Growing / expanding market – steady growth and growth prospects remain strong Market Access: COMESA – through Kenya, Uganda, Rwanda & Burundi, through Tanzania, to the SADC market of 215M for export products Southern Sudan is emerging as a new market in the region Through AGOA for access to the US Market for a variety of products.

Crops with Agro-processing potential Root and tuber crops Cassava for human food, animal feed and pharmaceutical industries and value-added products such as chips and crisps, flour, cassava pellets, beverage and even cassava starch. Government is formulating a policy that will require inclusion of cassava as a component of bakery and confectionery products. Orange-fleshed sweet potatoes Small-scale processors are already producing chips and flour for the confectionary industry.

Cereals Maize for human and livestock feed and sources of starch for industrial use. Sorghum for animal feed and raw material for distillery and beer brewing. Currently the sorghum production is low and farmers encouraged to increase production

Vegetable oils: Edible oil processing sunflower, simsim, and groundnuts (oil and peanut butter) Palm oil being promoted in Western Kenya. Could be a gain to small-scale farmers and industrial producers The Government is investing Ksh 22 million in Oil Palm development

Rice value addition

Avocado Oil Kenya is better placed to produce high quality avocado products noting that those grown in hot, humid climates have saturated fat and a lot of wax for oil production. Export markets for oil is mainly to the UK, Belgium, France, Holland, Russia and Germany and Asia.

Cotton: There are signs of increased Cotton production Measures to revive the cotton based institutions in order to increase rural incomes and reduce poverty are now in place. Cotton Development Authority established

Sugar processing Refined sugar, an essential raw material in food processing, beverage manufacture, soft drinks, and pharmaceutical products is at present wholly imported and its manufacture offers great opportunity. Huge potential in production of other products such as cogeneration of power from bagasse [the pulp left after the juice has been extracted from sugar cane]

Biodiesel What is biodiesel? Biodiesel is a clean burning diesel fuel replacement made from natural, renewable sources, such as new and used vegetable oils and animal fats. It will run in any diesel engine with no modifications- in fact diesel engines run better and last longer with biodiesel.

How to make biodiesel Feedstocks to use to make biodiesel in a biodiesel refinery? Used cooking oil Soybean oil Palm oil Jatropha oil Rapeseed oil Sunflower oil Corn oil Cottonseed oil Animal fat

Challenges facing agro-processing Lack of training facilities (i.e agri-business development centre models for actual processing demonstrations) Inadequate appropriate processing technology Inadequate infrastructure; water and electricity Lack of business/entrepreneurial skills. Inadequate marketing skills and market information. High cost of certification by KEBS.

Poor packaging of processed products Poor cash flow due to low volumes Lack of technical know-how and opportunities in processing (including product options, packaging and technology) Unreliable supply of raw materials

Agro-process for a better tomorrow