Creating Shared Value in Kenyan Tea Through Farmer Field Schools
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Creating Shared Value in Kenyan Tea Through Farmer Field Schools
- 1. From Porter to Practice – Creating Shared Value at Work
- 2. Origin of the concept: evolving approaches • Only business can create prosperity • Healthy businesses need a healthy community
- 3. Enhancing productivity in Kenyan tea Yield improvements brought by Farmer Field Schools up to 36%; key value driver for the business case
- 4. Building clusters and framework conditions: Kenya tea • • • • Upscaling and embedding of new extension structure for 3,900 buying centres servicing 117,000 smallholders directly 40% of training oriented to improved tea performance but also to diversification Embedding in new cluster: 15 out of 24 topics addressed by Ministry of Agriculture, Livestock, Equity Bank and others Effect: increased income, improved nutrition and livelihoods Composition FFS trainings Tea related training Sustainable agriculture Organisation & Finance Diversification 28% 39% 18% 15%
- 5. UGANDA SMALLHOLDER COFFEE YIELDS COULD BE DOUBLED THROUGH IMPROVED AGRONOMIC PRACTICES Yields could double * Kg green coffee per hectare Through improved agronomic practices Incremental costs USD/farmer, Av 10 year Tree rejuvenation (stumping/pruning) Fertilization $54 • Gradual replanting $15 • Integrated pest management (IPM), e.g., to control Twig Borer $0 • Optimized intercropping $0 • 1,000 • • 1,500 Current Potential Total cash costs $74 • Overall farm management (labor)** $46 656 474 Robusta Arabica * According to stakeholder interviews and ongoing projects (e.g., HRNS) ** Typically family labor, so not a cash cost Source: UCDA; IITA; AMITSA; literature review; interviews with farmers, Ministry of Agriculture, and coffee projects; TNS analysis $5
- 6. Challenge to find $70 mln to pay for upfront training Possible funding : temporary increase of coffee tax (3.5%);
- 7. The business case in cocoa: mobilizing services & providing access to finance & inputs Source: KPMG Farmers: upside mainly from GAP and input usage Traders: pay-back period less than 4 years
- 8. The awakening potential of Africa? • Africa’s 7 fastest growing economies (Ethiopia, Mozambique, Tanzania, Ghana, Congo, Zambia, Nigeria) are among the Top10 fastest growing economies in the World • Africa has 60% of world’s unused arable land; of 83.2 million ha earmarked for agricultural investments 56.2 million are in Africa • 9 out of 10 poorest countries in the World are in Africa (Congo, Zimbabwe, Burundi, Liberia, Eritrea, Central African Republic, Niger, Malawi, Madagascar
- 9. Introduction into today’s program Part 1 Hamish Taylor, Symrise: Partnering our way to sustainable vanilla Rahul Gopinath, Armajaro, Access to agro-inputs and innovative finance in cocoa Part 2 Arne Cartridge, WEF / Grow Africa, An African-owned, country-led and market based partnership platform Justin Sherrard, Rabobank International, ‘Great idea, but is it bankable? How to finance shared value creation in food & agri supply chains’
- 10. Teasers • How far can we stretch the private sector business model towards delivering public goods? • How do we know whether these projects are not CSR but are truly embedded into the Profit &Loss account? • Is our SVC model the right value proposition to Africa when compared with the business propositions of investors from China, India and Brazil?