amerms workshop 7: microcredit and crop agriculture to address food insecurity (ppt by michael...

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Case of Tissue Culture Banana Project In Kenya By Michael M. Njuguna Director Finance & Business Development Africa Harvest " Microcredit and Crop Agriculture: New Technologies and Other Innovations to Address Food Insecurity among the Poor "

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FULL TITLE: Microcredit and Crop Agriculture: New Technologies and Other Innovations to Address Food Insecurity among the Poor ROOM: Tsavo B PANEL: Chair: Mr. Shadreck Mapfumo, Vice President, MicroEnsure, South Africa Panelist: Mr. John Kihia, Country Director – Kenya, KickStart International, Kenya Panelist: Mr. Michael Njuguna, Director Finance & Business Development, Africa Harvest Biotech Foundation International (AHBFI), Kenya

TRANSCRIPT

Page 1: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Case of Tissue Culture Banana Project In Kenya

By

Michael M. NjugunaDirector Finance & Business Development

Africa Harvest

" Microcredit and Crop Agriculture: New Technologies and Other Innovations to

Address Food Insecurity among the Poor "

Page 2: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Importance of the Banana in Kenya

400,000•Grown by smallholder farmers in Kenya.

8.14%• Banana contribution to the calories needs of rural households

76%•Percentage of banana sold by producers.

24%•Percentage of banana retain for family consumption

60 gm• Per capita consumption per day (rest of the population)

300 gm• Per capita consumption per day (banana grower families)

0.21 Ha.• The average size of banana holdings is

Rich source of carbohydrates (22%), fibre (7%) minerals (calcium, phosphorus and iron) and vitamins (A, B and C). Source of income

Particulars

Page 3: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

• Pest and Disease- panama, sigatoka, virus, weevils and nematodes.

• Inadequate extension services

• Lack of Awareness of new technologies

• Limited access to new technologies

• Limited Access to Credit

• Limited Access to Inputs

• Post harvest losses

• Limited Access to the Market

Constraints

Page 4: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Superiority of TC Banana

• The availability of large quantities of clean and superior planting material

• Substantial reduction in losses from pests and diseases

• Shorter harvest cycle leading to additional productivity per unit of time accrued owing to early fruiting

• Bigger bunches

• Better coordination of marketing owing to more uniform banana fingers

Page 5: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

The Value Chain Approach

Extension & Technical Support - Africa Harvest, KARI, Ministry of Agriculture, ISAAA, BTA Source of Technology-ATL GTL JKUAT, & Mimea Int’lSource of Credit -Equity Bank, K-REPMarketing-Africa Harvest & TechnoserveInput Supply-

Funding support: Rockefeller Foundation; IDRC; DuPont & AGRA

Page 6: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Addressing the Constraints: Awareness Creation

� Sensitization using agri

extension, print & electronic

media

� Group formation &

management

� Training on technology

� Farmer to farmer exchange

programs

Page 7: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Addressing the Constraints: Enhancing Seedling Access

•Seedling affordability: Subsidy programme, credit through Equity bank & K-REPAvailability: Distribution nurseries owned by farmer groups or entrepreneurs

Page 8: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Higher Yields Through Proper Agronomy

32 Tons•The average yield of TC banana. Per Ha

14 Tons•The average yield of non-TC banana plantations

Page 9: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Post Harvest Handling & Value addition

� Post harvest handling

skills

� De-handing

� Cleaning

� Grading

� Packaging & branding

Page 10: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Economic Impact at Household Level

2,224470Net Income to the Farmer (US$)

2,7562,105Gross Income (US$)

183183Price per Tonne (US$)

15.0311.48Yield per Acre (tonnes)

5321,635Total Cost (US$)

532532Annual Operational Cost (US$)

–1,103Establishment Cost (US$)

Subsequent Year upto 5th

Year

First YearParticulars

Page 11: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

• The formation of cohesive farmer groups has empowered farmers toaddress other community concerns such as health, infrastructure,water etc.

• Empowered farmers are development ready and are accessing creditand other development activities.

• The farmer groups have also been effective in addressing anti social behaviour within the community e.g. security.

• The empowered community are monitoring social projects and efficient use of community development fund.

Impact at the Community Level

Page 12: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

• Increase in banana production at the farm level has increased household food security.

• Home consumption of the fruit has resulted in reduced malnutrition

• Additional income leading to dietary diversity and investment in other projects e.g. dairy animals.

• Higher income from TC is being used for payment of secondary school fees and general wellbeing of the family.

Social Impact

Page 13: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

• Membership of men to women in TC banana project groups is approximately in the ratio of 1:1

• Economic empowerment of women because generally banana is woman’s crop.

• Disposable income in the hands of women is being used in women priority areas such children’s nutrition

• Families have been able to construct good houses from the sale of bananas benefiting housewives.

• Families have acquired assets from sale of bananas e.g. mobile phones, bicycles and other durable items.

Gender Dimensions of Impact

Page 14: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

• TC banana was catalytic in the in recovery of banana industry from 46,426 Ha during 1996 to 79,808 Ha during 2004 (representing 77%).

• Increase in banana areas of the magnitude of 35,574 hectares within 10 years turn out to an additional net income of ($81,000,000) accruing to 300,000 banana growers.

• Additional Contribution of TC;– Providing employment and business opportunities

rural communities– lower banana prices for banana consumers– Improved food security and nutritional levels . – Cash income security due to continuous income flow

throughout the year, even under low input regimes.

Economic Impact at National Level

Page 15: AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by Michael Njuguna)

Conclusion

• Smallholder farm households can successfully adopt new technological innovation

• Simple technologies have the potential to for huge impact

• Whole value chain Intervention is effective

• Subsidy programme should be considered for the highly vulnerable households