Tag: KFC news

Potato farmers hit a key milestone on 30^th June for potato farmers in Kenya as key players in the potato value chain “The Potato Consortium” concluded a major step towards realizing ‘farm-to-plate’ value chain model.

The consortium led by Co-operative Bank in collaboration with the County Government of Nyeri and other consortium partners Yara E.A, Bayer E.A and Agrico PSA witnessed the harvesting of the potatoes in the first Demonstration Farm in Kieni Sub-county in Nyeri, whereby project assumptions, projections on yield per unit area as per the prescribed nutrition, crop protection and crop husbandry were put to test.

The Demo fully succeeded in achieving desired standards. The approved buyer of the produce Simplifine Limited (a food processor contracted by KFC to provide processed potatoes) also attended the demonstration and committed to buying directly from the farmers without going through any middlemen.

Co-op Bank entered into a consortium with other key players in the agricultural value chain to launch The Potato Consortium where every partner brings in board their domain expertise to support farmers venture into profitable and sustainable potato farming.

The Consortium has put together this package;

1. High-yielding potato varieties that are in demand by key food processors and retailers including KFC
2. Quality inputs availed at the right time and affordable prices
3. Agronomic support through extension services embedded within the County Government set-up i.e. use of Ward Agricultural Officers and Co-operative officers
4. Market-driven production, where farmers plant potato varieties that processors require, thereby undertaking contract farming with predictable off-take prices
5. Predictable yields based on prescribed package of crop nutrition and crop protection regime, supported by established demonstration farms managed by the consortium partners serving as centers of excellence.
6. Capacity-building for farmer’s co-operatives by Co-op Bank through Co-op Consultancy Services, to enable co-operatives become vibrant, well governed, efficient and profitable for better returns to the farmers.
7. Affordable financing from Co-op Bank which is aligned to the potato crop cycle and structured to fund the needs of farmers throughout the production, harvest and post-harvest management.
8. Digitization of the farming, production and marketing processes to offer reliable traceability to the consumer and enable all players plan ahead.

With the Nyeri demo having proven viability of concept, the consortium will now proceed to rollout by way of recruiting farmers for full scale production. Similar demo farms are underway in other counties identified for initial pilot namely Nyandarua, Elgeyo Marakwet and Nakuru.

It may be recalled how shocked Kenyans became when reports began filtering in the media last year January 2022 that the multinational food giant KFC has run out of ‘fries’ for customers following non-delivery of potatoes from their overseas suppliers.

That potatoes for consumption by Kenyans had to be imported was a major surprise amidst the perennial woe and cry by potato farmers especially in the potato-glut zone of Nyandarua for lack of market.

KFC was equally shocked by the sharp public rebuke, and together with other stakeholders have been working quietly behind the scenes to put in place mechanisms for a farmer-anchored sustainable supply chain for potatoes.

The project formed the ‘Potato Consortium’ that’s made of experts in the critical industry. This is to ensure that the value chain right from quality of seed to the farmer, financing and eventually to the food plate is consistent with the highest quality standards.

On Tuesday, March 7th, 2023, Co-op Bank met with key stakeholders to launch the Smallholder Potato Development Program.

The journey towards full local production for Kenya’s favorite meal, the potato fries, has begun!

Stakeholders present at the MOU signing

• The Governor, Nyandarua County HE Kiarie Badilisha
• Co-operative Bank Head of Agriculture Business Esther Kariuki
• Agrico’s Corien Herweijer
• Bayer East Africa’s Eunice Waithaka
• Simplifine Ltd’s Steven Carlyon
• Yara East Africa’s Carol Mumo

Objective: Transforming lives of potato farmers in Kenya

The consortium of likeminded companies that play within the potato value chain, is addressing current barriers that potato farmers face, by enabling access to affordable and quality inputs, credit and sustainable markets.

The partners within the consortium have developed modular solutions that will help farmers increase potato yields though the use of appropriate input packages;

• Yara crop nutrition and soil testing solutions
• Agrico PSA- provision seed varieties that are high yielding and appropriate for various uses
• Bayer crop protection solutions.
• The Co-operative Bank of Kenya will provide capacity building support to County Governments and Co-operative Societies to enable them form and run strong, efficient and well-governed potato Co-operatives. The bank will also provide affordable financing options for the farmers to ensure timely access to quality inputs, water, mechanization and post-harvest solutions.
• Simplifine Ltd on the other end shall provide market access for the financed farmers by buying their produce.

The backbone of this will be capacity building on good agronomical practices, financial literacy, contractual literacy, et al, with agronomy support provided to assist farmers farm correctly.

The end of result of this is higher yields experienced by farmers, creating sustainable incomes for the farmers.

Role of potato in Kenya’s Agricultural sector

Potato plays a key role and is among the top 5 important crops in Kenya, with approx. 450,000 acres of potato planted per year. The average productivity from studies conducted is 3 tons /acre, making it a loss making venture for farmers; industries within the potato value chain have growth limitations.

However, with the joint efforts of the partners in the consortium, the productivity can improve to average 14 tons per acre. With this contributing to food security and through consistent supply of potatoes, industries can grow.

Also Read: https://www.ghafla.co.ke/sponsored/my-campus-hustle-how-greed-for-smokies-made-my-business-fail/

Counties approached are:

Four (4) counties in the first half of 2023

• Nyandarua
• Nakuru
• Elgeyo Marakwet
• Nyeri

Target Estimate of Farmers:

It is our desire that by 2026, this partnership will benefit 30,000 potato farmers in Kenya, improving yields by 50% and reducing post-harvest losses by at least 50%, to spur prosperity for farming communities.

Key gaps will be addressed including agronomy, commercial and digital knowledge, access to finance and market.

Update on Co-op Bank’s strategic involvement in Agri-Business/Agri Co-operatives sector

Co-operative Bank is the leading Food & Agriculture financing bank in Kenya and working closely with like-minded partners and Agriculture value chain players is committed to significantly support the Agriculture and food systems transformation in Kenya.