Farm Concern International
Winning markets for farming communities
Smallholder commercialization
Based on
‘Commercial Village Approach’
Mumbi Kimathi Mrs.
Market & Chains Analyst
Two Roads In farming Life
PLAN TO PRODUCE
FIND MARKETS
PRODUCE
HARVEST
“road less traveled”
Boom
“road for most”
Burst
PRODUCE
IDENTIFY MARKET
Cassava Flour Trading Challenges in Kampala
50%
Poor quality
44%
Price flactuations
40%
Low dem and
30%
22%
none
20%
11%
11%
11%
11%
11%
10%
scarcity
High buying price
High taxes
0%
40
35
30
Local m illers
36
Distant Millers
27
25
20
Brokers
18 18
15
10
5
0
9
Farm gate
Ow n produce
Trigger commercialization
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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
Zone Characteristics
Village status
Description
Value 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
Cash economy
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
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Executive committees
Commercialization S-B
Marketing S-B
Financial S-B
Social S-B
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.
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