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Farm Concern International Winning markets for farming communities Smallholder commercialization Based on ‘Commercial Village Approach’ Mumbi Kimathi Mrs.

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Presentation on theme: "Farm Concern International Winning markets for farming communities Smallholder commercialization Based on ‘Commercial Village Approach’ Mumbi Kimathi Mrs."— Presentation transcript:

1 Farm Concern International Winning markets for farming communities Smallholder commercialization Based on ‘Commercial Village Approach’ Mumbi Kimathi Mrs. Market & Chains Analyst

2 Two Roads In farming Life PRODUCE IDENTIFY MARKET FIND MARKETS PLAN TO PRODUCE “road less traveled” “road for most” PRODUCE HARVEST Burst Boom

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4 Trigger commercialization Identify markets Conduct value chain analysis Identify routes for market entry Develop value chain partnerships Prioritize products from farmers’ basket – avoid wide range or too narrow range Conduct Cost Benefit Analysis along the Farm-to-Market chain Assess target farmers Agro-ecological zone analysis BDS Mapping

5 Cash economy Zone Characteristics Village statusDescriptionValue Chain Status Zone 4  Commercial BDS systems established  Relatively high investment levels  Medium / large –scale farmers  Low poverty index  High private sector investments  Cash economy  Active regional and global value chains  Well established business partnerships  Cash economy Developed / Commercialized Zone 3  Semi-commercial production systems  Active local value chains  Weak national / regional value chains  Relatively seasonal value chain  Semi-commercial BDS system  Relatively developed marketing infrastructure  Seasonal cash economy Intermediate Zone 2  Interest by players  Inconsistent value chains  Under-developed Marketing infrastructure  Mix of food and cash economy  Semi commercial production systems Developing Zone 1  Minimally identifiable value chains and BDS systems  Largely food economy  Minimal economic activities  Large parcels of land characterized by low productivity Remotely developed Zone 0  Totally underdeveloped value chains  Food economy  No identified economic activities  No BDS systems  No highlighted interest by buyers Totally undeveloped

6 Commercial Village Approach Commercialize typical African Village Clusters of producers groups within a village setting Comm. Vill.: 500 Households Currently: 60,000 HH ( Avg. 6 members/HH) Village co-ordination unit Multileveled leadership structure –Executive committees –Commercialization S-B –Marketing S-B –Financial S-B –Social S-B

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9 African Traditional Vegetables cont… Case study Consumption for ATV in Nairobi has increased from 31 Tonnes in 2003 with an estimated farm gate value of US$ 6,000 to A current 600 Tonnes in 2006 with an estimated farm gate value of US$ 142,860 Farm gate prices increased by 30% and the current supply of 500 Tonnes is estimated to account for 60% of the demand level. The ATV distribution network includes supermarkets, kiosks, informal markets and street markets.

10 Bridging gap btw poverty & creditworthiness Trigger commercialization Market Access Financial Services (MacFis), a pro-poor credit line Graduation from MacFis after 2 years, market support offered for 4 years Commercial Village Financial Services –Commercialization triggered through input credit for poor communities –Mandatory savings from sales –Repayment for loan recovered from payments Farm Concern Intl’ among 5 global winners of Pro-Poor Innovative Challenge[ PPIC] CGAP


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