Session 3.2 KSC case study - World Agroforestry Centre

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Kenya seed
company limited
Head office kitale:
Subsidiaries:
Simlawseeds co. ltd- Nairobi
Kibo seed company ltd- Tanzania
Mt Elgon seed company- Uganda
Vision
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TO BE THE CERTIFIED SEED SUPPLIER
OF CHOICE IN EAST AFRICA AND
BEYOND
MISSION
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TO AVAIL TOP QUALITY CERTIFIED SEED
PRODUCTS TO THE FARMER
Back ground
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Kenya Seed Company is a state Corporation that produces and
markets top quality seeds for the country farming community with an
overall objective of adding value to the farming business and
contributing to food sufficiency in Kenya and beyond.
The Company was incorporated in Kenya in July 1956 to promote the
use of improved strains of pasture seed, developed by the National
Agricultural Research Station at Kitale.
Two years later, the company started an enterprise to produce
commercial sunflower for the European bird feed market to sustain its
financial needs that had by then expanded.
In 1963 the company introduced hybrid seed maize production
following the release of the first hybrids by the government Research
centre in Kitale. Seed wheat was added to the seed program in 1971
to provide certified seed to farmers who previously depended on low
quality farm saved seeds.
Acquisitions
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Later in 1979 the company acquired Simpson and White law, a
company trading in horticultural seeds, and introduced the
brand name Simlaw Seeds, which has since distinguished itself
as a leading brand in the market.
In 2002 Simlaw Seeds was registered as a limited liability
company and a subsidiary of Kenya Seed Company Ltd.
Its core business is selling and marketing of high quality
horticultural seeds in Kenya and eastern Africa.
In the same year Kenya seed incorporated Kibo and Mt Elgon
seed Companies in Tanzania and Uganda respectively as an
expansion strategy into the Eastern Africa market.
objectives
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To produce top quality certified seeds
To supply and promote quality certified seeds to meet effective market demand
and needs
To generate and disseminate appropriate technological packages for farmers
To enhance internal seed quality standards
To increase profits through operation and production efficiency and market
expansion
To adopt quality management systems and programs in all sectors of the
company
To adopt mechanisms for spreading risk and improving company income
To Improve career opportunities through staff training and development
To achieve the above objective the company has had to invest a large capital
outlay to cater for research and development of technologies, infrastructure,
production and marketing.
Departments
Administration
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in charge of daily issues and liaising with other departments for
daily activities including financing.
Production
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Charged with the responsibility of ensuring adequate seed
supplies by growing annual requirements for the areas covered
Research
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In charge of introducing new varieties for different regions and
maintaining the germplasm
Marketing
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Liaises with other departments to satisfy the customer. Ensures
adequate circulation of seeds and trains farmers on various
requirements for successful crop growth and addressing
upcoming challenges
Research
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The Kenya Seed Company has its own
research programmes centered at Elgon
Downs Farm.
The Research Department is responsible for
variety development and supply of basic
seed. It also conducts seed agronomy;
herbicide screening and fertilizer types and
rates trials and
make recommendations to farmers to enable
them maximize yields.
PRODUCTION:
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Production department is responsible for
the growing of certified seeds. Local farmers
carry out seed production on contractual
terms.
To ensure the qualities of the seeds, the
seed growers are supported by a team of
qualified and experienced technical staff who
offer advice throughout all the stages of seed
production
PRODUCTION CHANNELS
RESEARCH
FURTHER RESEARCH
GERMPLASM STORAGE
NATIONAL PERFORMANCE
TRIALS
CERTIFICATION
(KEPHIS)
COMPANY TRIALS
SEED BULKING
COMMERCIALISATION
MARKETING
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The Company ensures that the farmers are
continuously informed about new technologies and encourage
them to adopt them in order to enhance their productivity.
The Company has also established an efficient seed
distribution network of agents and stockists in the market place
to ensure ease of accessibility of quality seeds at all times.
The network of channels of distribution is serviced by a well
trained team of professionals with good product knowledge and
marketing skills to handle customers issues such as need for
product information and handling of customers complaints/
issues.
The company engages the farmers in trainings through
activities such as field days, open days, demonstrations fields,
Ask shows and media programs (print, radio, television,
newsletters and word of mouth)- brochures, fliers etc
Sponsorship of community events eg road races, bicycle races
etc
Marketing channels
COMPANY
STORES
AGENTS
STOCKISTS
SUBSIDIARY
FARMER
FARMER
SUB-AGENTS
AGENT
STOCKIST
ORGANISATIONS
ORGANISATIONS
SUB AGENT
FARMER
STOCKIST
FARMER
FARMER
FARMER
HUMAN RESOURCES:
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The management of the Company has built a
significant capacity of its human resource
through training and development
programmes both within and at other
reputable training establishments.
As a result experienced and dedicated staff
man key result areas to deliver quality
services and to meet the company’s set
objectives.
Crop varieties
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Cereals:
Wheat and Maize, for low attitude, medium altitude
and high altitude. Packages for maize are in 1 kg, 2
kg, 5 kg, 10 kg and exceptional 25 & 50 kg pack for
large scale commercial farmers.
Oats, Columbus Grass, Boma Rhodes, Elmba
Rhodes, Sudan Grass, Colored Guinea
Sunflower, beans, peas, cowpeas, green grams,
sorghum, millet
Lucerne, desmodium, kikuyu grass, Bermuda grass
Most of these products are packed in 500 g and 1 kg
HORTICULTURE
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Broccoli, Cabbage, capsicum, Celery,
Cauliflower, collards/ kale,
carrots, coriander, eggplants, leeks, lettuce,
okra, onion, parsley,
pumpkin, spinach, tomato, turnip, water
melon and many others.
Vegetables include both open pollinated and
hybrids and are packed from 10 grams, 25
grams, 50 grams, 100 grams, 250 grams,
500grams and 1 kg pack to serve different
farm sizes.
Other services
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Crop production schedules
Crop nutrition and crop protection
supplementary products provision
Gross margin estimation and planning
Market analysis and advice
Advice on post harvest practices and
storage.
CHALLENGES
Transport and distribution / storage
 Many rural areas have poor access roads and pose a big challenge in
availing top quality seeds to the farmers. In addition to poor road state
in some areas, storage is also a major problem due to presence of
storage pests and diseases, lack of storage facilities and lack of
knowledge on the farmers to handle seeds. Training is continuous to
train handlers on requirements of proper seed health and enforced by
KEPHIS
Pests and diseases
 Many pests can be passed from one area to another either though
seed or other crop material such as residues and from field to field.
During seed production, strict measures are needed to ensure control
of pests and diseases. Collaboration with other stake holders in the
agro-chemical industry and seed treatment.
Fraudsters.
 There are many cases of illegal sellers have been found selling
uncertified seeds using packages printed in packages resembling
those made by the company. KEPHIS follows up on all issues and
uses legal measures to ensure adherence to set rules and
regulations
Illiteracy and poverty
 Many farmers are poor and are often unable to buy adequate seed
quantities for their planting needs. This therefore makes their
productivity to remain low. Illiteracy makes many farmers not to
follow instructions correctly thus compromising the results achieved.
Continuous training in collaboration with the ministry of agriculture,
schools and churches.
Unstable weather
 The unpredictability of tropical weather often causes major problems
to seed quality either due to extreme humidity which interferes with
natural processes of growth or seed maturation. Timing of planting
seasons and researching on more drought tolerant crop species for
marginal areas.
Declining soil fertility
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Due to continuous farming, many soils have declined
in their ability to support profitability and give
adequate yields in the crops produced. The
application of inorganic fertilizers has worsened soil
conditions making crop production unpredictable.
This calls for urgent action to combat declining soil
conditions. Advice on crop rotation, use of cover
crops and application of organic manure.
Way forward
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Training of farmers is key to technology adoption for
them to understand and evaluate the benefits
derived versus remaining in their current situation.
Collaboration with other organizations in the industry
to use synergies that will reduce duplication and
make farmers combine all the requirements affecting
their production activities
Increasing farmers awareness on the benefits of
multi-purpose trees and shrubs to be augmented into
their farming and soil conservation measures.
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