The value chains should aim at creating an environment to
allow production of adequate harvest to meet market needs. The value chain
should deliver on protecting and growing the margins for the players. Security of
the supply, support growth of the value chain and create safety and
sustainability of the engagement.
Cooperation between various players if worked well will
bring in added benefits like enhancing reputation of the brand value chain,
improve productivity, improve access to capital and access new markets for the
produce.
The Kenyan farmer is fragmented and made of small holder
farmers and hence the task of bringing farmers together is one challenge for
any value chain. Any value chain should be as an enabler to access to
innovation, capital and having a trusted advisor.
The Kenyan farmer has had a history of value hyped
agriculture with no proper structures and control. Farmers have lost resources
to con business persons. A recent one was one importing high yielding dairy
cows from South Africa and milk being a trading commodity in high demand many
farmers paid for dairy cows that were never delivered.
Historically, farmers in many other areas have unpaid dues for
their produce supplied to processors. From Pyrethrum, Sugarcane, Tea, Coffee
among others. This has distorted markets and hence structuring agriculture into
value chains has not been successful or has been met with skepticism.
Government interventions in bailing out failing processors
of agricultural produce by injecting monies into them is welcome. But the
common issue among all the processors is that they owe their suppliers, the
farmers, substantial sums of funds of unpaid supplies. Production systems are
aged and hence inefficient thus ending up with a high priced final product.
The market for food produce has been flooded since the
country has an open door policy to trading with other countries whose markets
we also need to access.
Notably the imported produce is retailing at competitive
prices and hence that has opened another insight into our production cost. It’s
clear that as a country we are not optimally using our resources in land,
capital and agronomy.
Borrowing form our earlier quoted cases and making an
assumption that the entire of the land areas in the three countries is arable
our efficiency in land use in agricultural production is below the two
countries. India has an area of 3.287 Million Sq Km and a population of 1.4
Billion people translating to almost 0.5 acres per person. Israel has a land
area of 20,970 Sq Km and a population of 10 Million translating to 0.5 acres
per person. Kenya has an area of 581,309 Sq Km and an estimated population of
45 Million translating to 3.2 Acres per person. India and Israel have made huge
strides in Agriculture both in mechanization and production compared to what
Kenya achieves. They are food secure and exporting to the world whereas Kenya
is not.
Above 70% of the Kenyan population live in rural areas and
as said earlier are engaged in one way or another in agricultural activities.
Marketing of food produce is informal for the common food stuff and the high
value food produce requiring value addition before going to the market.
The situation is not bad though. The farmer despite the
heavy investment in time, resources and energy the gain is not felt. The middle
men in supply chain have been links to the market which have responded to the
customer needs.
An example is the raw milk market, most farmers will prefer
to sell their milk to middle men who will supply it to the retailers as opposed
to going through an organized farmer association as a marketer. Value addition and
packaging will greatly increase the milk price but the infrastructure is
lacking.
How do we revive Agriculture?
The Kenyan farmer is still willing to make agriculture
successful however there is need to address several factors affecting the
farmer.
The services adapted to the agriculture production cycle are
in need of serious reforms. The supply of quality seeds and related inputs is
still a challenge to the farmer. The government subsidizes the cost of
fertilizer to the farmers but the supply chain of the same is not functional. Many
are the reported media cases of Government fertilizer in the wrong hands.
There is considerable investment in building dams to collect
water that can be used for commercial agriculture in crop and livestock
production. The next frontier is to have climate smart agriculture that is not
weather reliant so as to create consistency.
Ensuring that the devolved agriculture functions are felt on
the ground. Extension officers to help build the farmers capacity through
training and availing related services.
As an incentive to the farmers, the cost of inputs should be
subsidize as well to reduce the production cost.
Legal reforms and legislation needs to be in place to
address any legal challenge the farmers or business desirous of engaging in any
agriculture value addition business.
Agricultural credit should be looked at. An idea of a farmer’s
bank and seeking partnerships will help. The objective being to avail well
thought and structured agriculture credit. The current irrigation schemes the
Government has engaged in are welcome to produce more food but the small holder
farmer should also be facilitated to participate in food production for the
country.
Another incentive is in commercialization of agricultural
process to boost economic benefits. This will be in aiding the encouraging of
value addition to secure more gains to the farmers. The process should be
product and people empowerment centered.
Kenya belongs to a community of nations. We thus have to
keep watch of the happenings in the food and agriculture sector. Price
volatility on agriculture related products will affect us. There are shifting
market power and margins. The world and indeed Kenya population has a growing
food need that has to be met.
Agriculture cuts across boarders in matters trade,
environment and development. Food demand and supply is a trade opportunity
between countries, through this trade there will be diplomacy and social
development and relations between nations.
Other important agenda’s affected by agriculture is the
nation’s population basic need in food and health eating. Agriculture is also a
contributor to the energy and environmental sector.
As one of the speakers said, the policies affecting
agriculture is an unfinished business, seizing the moment and making the
promise of functional agriculture happen is the tough task ahead. We need leave
the podiums and boardrooms and get to work.
Kahugu Muiruri
September 17, 2016
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