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RESPONSIBLE AFRICA SOURCINGKILIMO BIASHARA

BRIEF

Strengthening the capacity of out-growers for improved livelihood and sector competitiveness

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Sourcing from Africa and integration of African small holder farmers in global agro-business value chains is expected to hold both great commercial and developmental potential. However, currently only 2% of Coop’s products are sourced from Africa and various challenges relating to quality, volume, stability and demand incited Coop and its Kenyan supplier Sunripe to look for core business innovation.

In 2011 Coop (formerly FDB), Sunripe and CARE Danmark formed a strategic partnership to explore and pilot ways of strengthening the competitiveness of selected vegetable value chains from Kenya and at the same time increasing the positive social and environ-mental impact for communities and out growers involved.

The strategic partnership includes various communication and marketing initiatives in Denmark aiming at raising awareness amongst consumers about small holder agriculture in Africa and trade with Africa as well as concrete field interventions in Kenya aiming at strengthening the vegetable value chains of sugar snaps, green beans and baby corn.

The Kilimo Biashara project is implemented by a consortium composed of Coop, CARE (Danmark and Kenya) and the Kenyan vegetable producer and exporter Sunripe ltd. The consortium is motivated by a belief in that by contributing with different knowledge and resources its members can bring out innovation to Kenyan vegetable value chains contributing to both business and developmental objectives.

˝ The pilot phase of the value chain project has a duration of 3 years from 2012 – 2014.

˝ Funding: the project is funded by Coop, CARE Danmark as well as Danida Business Partnership Programme.

In 2011, Coop, the largest retailer in Denmark, launched its Trade with Africa Initiative, www.handelmedafrika.dk. The agricultural sector in Africa, and in particular the export of high- value horticultural crops to Europe and elsewhere, represents an important opportunity for economic development, new markets and business opportunities.

The export horticultural sector in Kenya general is extremely competitive on price and productivity and over the years concerns have been raised as regards social and environmental impacts of its practices - such as workers’ conditions and in particular wage levels, use of pesticides and impact on women.

˝ Background

˝ In 2012 Coop’s annual turnover of Savannah products was 40 M. DKK. The target for 2015 is 100 M DKK.

˝ Analysis suggests that between 20-50% of production is rejected at the point of sale due to poor quality.

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In the pilot phase, the project will work with 300-400 out grow-ers, men and women, organized in a limited number of producer groups. The project applies a flexible learning approach in which new approaches and solutions to challenges are co-created by the consortium partners and immediately tested in the value chains. Documentation ensures that learning can be replicated amongst consortium partners and the wider industry.

Efforts are structured around five components which aim to address central bottlenecks and challenges identified through a multi-stakeholder identification process:

1. Small holders’ organisation 2. Quality and quantity of production 3. Access to inputs and capital for small holders4. Handling of rejects and stability issues 5. Learning and recommendations

The project is working with 7 farmer groups from Kinangop and Karantina regions.

The objective of the project is to contribute to more sustainable economic development and poverty reduction in Kenya through more responsible trade.

˝ Approach

˝ One year after project start up all out growers are organ-ized and trained in group saving and loans methods and have accumulated the equivalent of 20.000 USD which is being used to invest in agriculture, small business initiatives as well as education of children, health care etc.

Increasing social and environmental sustainability of agro-business operations is increasingly recognized as a competitive advantage. The Kilimo Biashara project seeks in concrete ways to test out new modes of operations that positively impact business and small holders, communities and the environment.

Innovations tested include; ˝ Simple data management systems at small holder group level. ˝ Adopted terms and contracts. ˝ Pick up locations. ˝ Grading skills. ˝ Conservation agriculture techniques. ˝ Saving and loan groups to access capital. ˝ Training in alternative use of rejected crops.

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KILIMO BIASHARA VALUE CHAIN PROJECT

LEARNINGReports, Research,

studies etc.

COMMUNICATIONExternal, internal,

public meetings etc.

ADVOCACY In Kenya, Denmark,

sector, EU etc

MANAGEMENTAdjust value chain and governance

ACTION Kilimo Biashara

Value Chain Project

OTHER MAXIMISING OPPORTUNTIES

FRIENDSHIP VILLAGE

RECYCLING POINT

STORY TELLERS

LEARNING CONFERENCE

˝ Contacts for further information:

CARE Danmark: Nanna Bang, nbang@care.dkCoop: Brian Sundstrup, Brian.sundstrup@coop.dkSunripe: Hasit Shah, tiku@sunripe.co.ke