Ampath PDF-Voice Over Revised

8/8/2019 Ampath PDF-Voice Over Revised

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VALUE INITIATIVE PROGRAM(VIP)

AMPATH-FPI, Export Promotion Council, Fintrac

part of the SEEP Network Value Initiative

HorticultureUrban Value Chain Development


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Problem: High poverty levels; economicmarginalization of the poor and HIV affectedin the Rift Valley and Western region of

Kenya Goal: increased income for MEs within

HIV/AIDS affected communities

Purpose: increased productivity and accessto passion fruits markets for the poor andHIV/AIDS affected populations.

The Value Chain Initiative Program


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AMPATH-FPI Approach

Holistic Approach: Health + Economic

Strengthening

Target entire community Create a path out of poverty

Strengthen community safety

nets to reverse spread and destruction of

HIV.


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Consortium:

AMPATH FPI (Over 70,000 AMPATH patients)

Export Promotion Council (Over 4,000 clients served)

Fintrac (Over 80,000 farmers assisted)

SEEP Network

The Value Chain Initiative Program


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VIP TARGET OUTREACH

ME owners 7,000

Employees 2,500

Sensitized communitymembers

1,600

TOTAL 11,100


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Population7.6 million

Average Farm

Household6.8

Poverty Rate48%-65%

HIV/AID Prevalence

Rate5.7 %

VIP target Coverage:At least 12 Districts(see map)

Main EconomicActivitiesAgriculture, breadbasket for Kenya

Main Social-Economic Features of the Target Region


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1.

2. Improved knowledge and understanding ofmarket demand &competitive quality of product amongst the MEs

3. Increased MEs productivity

4. Improved market access for MEs

5. Increased income opportunities for MEs

6. Increased labor options as the industry grows, as theenvironment becomes more conducive for successful MEs

Expected Outputs


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Passion fruit is a vine with a life cycle of 2 to 3years

Starts fruiting at 6th month

42kgs life cycle average production

WHY PASSION FRUIT FOR MEs?


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End Market Opportunities for MEs

Global Demand Fruit juice import trade 2001-2006 increased

by 73% to nearly US 11 billion.

This trend applies to all fruit juices includingpassion fruit juice

Regional Demand

In East Africa, market for fresh and processedfruit products e.g. passion fruit is growing at10% p.a.

Premiums paid for high quality

Why passion Fruits?


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Local Demand

The domestic demand is increasing for

both fresh product and juices Current supply is unable to meet the

demand

As a result the prices to farmers are

increasing Yr 2007 Kenya Consumption was 70,148tons while in Yr 2006 it was 60,371 tons-a 16% increase in local demand

End Market Opportunities for MEs

Why passion Fruits?


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Kenyan National Passion production


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Competitiveness of Passion Fruit

Ideal for the small-scale growers and micro-processors the VIP is targeting.

Managed manually reducing the advantagesof economies of scale of large farmers

Low perishability, sweeter taste andincreased juice % a few days after harvest.

Higher market value for higher quality fruit.


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Individual RetailerRetail Shops/HotelsLocal Supermarket

Distributors (EU)Major Supermarkets

(EU)

Large Exporters

(e.g. EAGA, KHE.....)

Reg. Brokers

(Uganda)

Local Brokers

Local Processors

(Del Monte, Pick N Peel)

Small Scale ProcessorsMed-Scale Processors

(kevian, Fips, etc)

Farmers Groups

Small-Scale Farmers Medium - Large Scale Farmers

Inputs Retailers

Chemical Sprayers

KARI Private Nurseries

Inputs Suppliers

Extension

(MOA/HCDA)

DOMESTIC MARKET REGIONAL MARKETINTERNATIONAL MARKET

Retail

Importing

ExportingWholesaling

Processing

Local Trading

Production

Input Supply /Services

Passion Fruit Value Chain- CURRENT

LEGEND

Major Product Flow

Processed Product Flow


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Support Products andServices (Fee-for-service)

Poor have difficult time accessing convenientcapitalNo solid commercial agricultural extensionsupportBDS providers are typically MFIs that limit

business training support to a few days trainingInadequate packaging and handling

Lower financial barrier: Lower start up cost,Increase access to credit, Group savingsWork with medium to large processors to

provide agricultural extension supportFacilitate meetings between support

product/service providers and MEsFacilitate training on handling/transport offruits

Business Performance(MEs and others in the

value chain)

Requires business management knowledge ofwhich many of the poor are lacking

Facilitate training by BDS providers onbusiness management practises

o w K no wl ed ge a ndk il l s i n G rou p

M a n a g e m e n t

,Poor Quality Supply

&Biz Mgtskills

,Low Volume Low Quality and Exclusion of Poor and HIV Affected

:GOAL STATEMENT Increased income for micro- ( ) / enterprises MEs within HIV AIDS affected communitieswho are or become active participants in the horticultural value chain

a ck o f o rg an iz at io n,m o ng F ar m er sr ad er s a nde x p o r t e r s

n c o n s i s t e n t/r u it j ui c e/o l u me s a le s

r od uc ti on I ss ue s a rk et A cc es s

o w K no wl edg e an dk il ls i n C ro p H us ba nd lyn d B us i ne ssM a n a g e m e n t

i mi t ed a cc e sso p ro du ct i onI n p u t s

U n d e r -e v e l o p e du pp ly o f s us ta in ab le

u si ne ss s ol ut io ns a nde r vi c e m ar ke t s

o or Q u al it yf In put s

n a d e q u a t er a in i ng a nd

x t e ns i on S e rv i ce s

o or M ar ke t,i nk ag e p oo r

e rt i ca l a ndo r iz o nt a l l i n ka g es

a c k o f n f or ma ti on a n dn ow le dg e o fM a r k e t s

e a k A s s oc i a ti o ns

CONTRAINTS ANALYSIS

U n d e r -e v e l o p e du pp ly o f s us ta in ab le

u si ne ss a nd s er vi cem a r k e t s

Socio- , ,economic factors Limited Household Resources Policy Issues

n ad eq ua te c as h f lo wo p ur ch as e i np ut s

n a de q u at e c a pa c i tyb u i l d i n g

:PURPOSE STATEMENT /To enable excluded poor and HIV AIDS affected populations to increase their productivity and, .access to high value export regional and local markets

e al th I ss ue s

o o r q ua li ty/ o wv o l u m e

o ww ar en es s o r

v a i l a b i l i t yp p r o p r i a t ec r e d i t


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GOAL STATEME

PURPOSE STAT


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Support Products andServices (Fee-for-service)

Poor have difficult time accessing convenientcapitalNo solid commercial agricultural extensionsupportBDS providers are typically MFIs that limit

business training support to a few days trainingInadequate packaging and handling

Lower financial barrier: Lower start up cost,Increase access to credit, Group savingsWork with medium to large processors to

provide agricultural extension supportFacilitate meetings between support

product/service providers and MEsFacilitate training on handling/transport offruits

Business Performance(MEs and others in the

value chain)

Requires business management knowledge ofwhich many of the poor are lacking

Facilitate training by BDS providers onbusiness management practises

n cr ea se d K no w le dg e a ndk i l l s i n G ro u p

M a n a g e m e n t

,Improved Quality Supply&Biz Mgt skills

,Reliable Volume High Quality and inclusion of Poor and HIV Affected

:GOAL STATEMENT Increased income for micro- ( ) / enterprises MEs within HIV AIDS affected communitieswho are or become active participants in the horticultural value chain

r g a n i z a t i o n,m on g F ar m er sr ad er s a nde x p o r t e r s

o n s i s t e n t/r u it j ui ce/o l um e s a le s

n c re a se d P r od u ct i on a rk et A cc es s

d eq ua te K no wl ed ge a ndk il ls i n C ro p H us ban dl yn d B us in es sM a n a g e m e n t

o n v e n i e n tc c e s s o p ro du ct i onI n p u t s

e v e l o p e du pp ly o f s us ta in ab le

u si ne ss s ol ut io ns a nde rv i ce m ar ke ts

m p ro v e d Q u al i tyf I np ut s

c ce ss t or a in i ng a nd

x t en s i on S e rv i ce s

u s ta i na b le M a r ke t,i nk ag e s tr on g

e rt ic al a ndo r iz o nt a l l i nk a g es

A v a i l a b l en fo rm at io n a n dn ow le dg e o fM a r k e t s

t r en g t he n e d A s so c ia t i on s

SOLUTIONS ANALYSIS

e v e l o p e du pp ly o f s us ta in ab le

u si ne ss a nd s er vi cem a r k e t s

Socio- , ,economic factors Limited Household Resources Policy Issues

Convenient access toAffordable inputs

Credits

d e q ua t e c a pa c i tyb u i l d i n g

:PURPOSE STATEMENT /To enable excluded poor and HIV AIDS affected populations to increase their productivity and, .access to high value export regional and local markets

m pr ov ed H ea lt h

i gh q ua li ty/i n c r e a s edv o l u m e

I n c r e a s e dw a re n es s o n

v ai la bi li ty o fp p r o p r i a t ec r e d i t


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GOAL STATEM

PURPOSE STATE


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VIP INTERVENTIONS


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HOLISTIC APPROACH-PROVIDING PARALLEL SERVICES

AMPATH/FPI will provide HIV/AIDS care and education alongside valuechain development initiatives

Objective: To assist the Farmers and other Potential Entrepreneurs toEnter the passion Fruit Value Chain

TARGET

COMMUNITY

AMPATH


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INTERVENTION AREAS

INTERVENTION AREA SPECIFIC INTERVENTIONS.1 Fruit Output and

Quality.1 1 Technical Assistance provider.1 2 Tailored Financial Services.1 3 Inputs and Equipment package

. /2 Micro processingValue Add Products

.2 1 Quality control system

. .2 2 Tailored Financial service Products

.2 3 Technical and Business trainingprovider.2 4 Infrastructure Service

. :3 Market Linkage Farmer- Trader

.3 1 Market Information market

. /3 2 Business Skills Management Training

. :-4 Market LinkagesTrader to Formal Markets

.4 1 Promotion and Marketing services


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CAUSAL MODELS


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EXAMPLES OF BUSINESS

MODELS TO BE TESTEDBY VIP


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STRATEGY

INTERVENTION # 1.1 TECHNICAL ASSISTANCE PROVIDERLead firms access technical skills and embed them or lead firms purchase master farmer / agro-vet expertise and deliver to theirtargeted groups on embedded terms

VALUE CHAIN CHANGE

Increased production and market access for MEsWide geographic outreach, increased ME activity


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STRATEGY

INTERVENTION 1.2: TAILORED FINANCIAL SERVICE PRODUCTSTraders borrow from financial institutions; provide inputs to farmers on credit

VALUE CHAIN CHANGE

Increased production and Market access for MEsImproved business relationships


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STRATEGY

INTERVENTION 1.3: INPUTS AND EQUIPMENT PACKAGETraders pay consultant/agro-vet to quality control nurseries where they sources seedlings traders provide to farmers; traders provide the farmerswith inputs especially seedlings on credit

VALUE CHAIN CHANGE

Improved quality and outputsIncreased market access for MEs

M & IA: FRUIT OUTPUT AND QUALITY PILOTS


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Causal Chain Indicators

Increased farmer sales % increase in monthly sales volume/value per farmer # of farmers registering increased monthly sales

Increased farmers output of quality fruit % increase in monthly volume of quality fruits output# of farmers producing quality fruit

Improved farming techniques; improvedaccess and use of quality inputs

# of farmers applying improved farming techniques; # offarmers accessing and using quality inputs

Business Model work Profitability/sustainability of the Business model# of traders accessing and using appropriate business services(TA/Finance/Inputs & Equipment

Test business models TA provider Financial service products Inputs and equipment package

Business models tested

M & IA: FRUIT OUTPUT AND QUALITY - PILOTS

M & IA: FRUIT OUTPUT AND QUALITY ( MARKET UPTAKE)


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Causal Chain Indicators

Increased ME participation and increasedmarket output

% increase in # of MEs participating in value chain% increase in market output

Increased farmer sales % increase in monthly sales volume/value per farmer # of farmers registering increased monthly sales

Increased farmers output of quality fruit % increase in monthly volume of quality fruits output# of farmers producing quality fruit

Improved farming techniques; improvedaccess and use of quality inputs

# of farmers applying improved farming techniques; # offarmers accessing and using quality inputs

Uptake of business models TA provider Financial service products Inputs and equipment package

# of traders providing enhanced services to farmers# of traders accessing appropriate business services# of farmers demanding and accessing services

M & IA: FRUIT OUTPUT AND QUALITY ( MARKET UPTAKE)

VIP STRATEGIES TO REACH THE VERY POOR AND VULNERABLE: EXAMPLE


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INTERVENTION AREA 2

(Micro-processing /Valueadd products)

ENTRY STRATEGY FOR VERY POOR AND VULNERABLE

BUSINESS MODELS

2.1 Quality control system2.2 Tailored Financial ServiceProducts

2.3 Technical and BusinessTraining provider

Very vulnerable

Trainings: juice processing technology, hygiene/quality, KBS services(certification), biz mgmt, municipal biz permit, BDS provisions (credit &savings), public health certification, value add (home economics department)

Output: one glass ready to drink is KES 40 (200ml) or KES 200/liter; aim forrevenue of KES4, 000/day. Approximately KES2, 000/day.

Savings requirement

Move to VulnerableExperienced, rent a room or purchase cool-box

Increase production capacity and manage and train other juice providersOutput: Increase in income

Savings requirement


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Individual RetailerRetail Shops/HotelsLocal Supermarket

Distributors (EU)Major Supermarkets

(EU)

Large Exporters

(e.g. EAGA, KHE.....)

Reg. Brokers

(Uganda)

Local Brokers

Local Processors

(Del Monte, Pick N Peel)

Micro Scale Processors / DistributorsMed-Scale Processors

Farmers Groups

Small-Scale Producers Medium - Large Scale Producers

Inputs Retailers

Chemical Sprayers

Private Nurseries

Inputs Suppliers

DOMESTIC MARKET REGIONAL MARKETINTERNATIONAL MARKET

Retail

Importing

Exporting

Wholesaling

Processing

Local Trading

Production

Input Supply /Services

PASSION FRUIT VALUE CHAIN - FUTURE

LEGEND

Major Product Flow

Processed Product Flow

Business Service Flow

Ag Ext Svc Provider(lead farmers, traders)

Reliable supply =Growth in Sales

nical Service Providers

Quality Certification , Monitoring , Development (KARI, Moi Univ, KEPHIS)

Partner Financial Institutions

FP

FP

FP

Trade Association (networking, info

Street Outlets, HHs

STRATEGY FOR MARKET UPTAKE FUTURE MARKET SYSTEM


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= -micro enterprise activity

M

arketU

p-Take

FutureDi

agram

STRATEGY FOR MARKET UPTAKE: FUTURE MARKET SYSTEM


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For More Information About VIP

Ampath-Kenya Please Contact:

Naiomi LundmanAssociate Field Manager, FPI/ AMPATH

Tel: +254-0723-246-19

Email: [email protected]


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THANK YOU

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