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


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Microcredit and Crop Agriculture: New Technologies and Other Innovations to Address Food Insecurity among the Poor
ROOM: Tsavo B
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

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

  1. 1. " Microcredit and Crop Agriculture: New Technologies and Other Innovations to Address Food Insecurity among the Poor " Case of Tissue Culture Banana Project In Kenya By Michael M. Njuguna Director Finance & Business Development Africa Harvest
  2. 2. Importance of the Banana in Kenya Particulars Rich source of carbohydrates (22%), fibre (7%) minerals (calcium, phosphorus and iron) and vitamins (A, B and C). Source of income •Grown by smallholder farmers in Kenya. 400,000 • The average size of banana holdings is 0.21 Ha. • Per capita consumption per day (banana grower families) 300 gm • Per capita consumption per day (rest of the population) 60 gm •Percentage of banana retain for family consumption 24% •Percentage of banana sold by producers. 76% • Banana contribution to the calories needs of rural 8.14% households
  3. 3. Constraints • 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
  4. 4. 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
  5. 5. The Value Chain Approach Extension & Technical Support - Africa Harvest, KARI, Ministry of Agriculture, ISAAA, BTA Source of Technology-ATL GTL JKUAT, & Mimea Int’l Source of Credit -Equity Bank, K-REP Marketing-Africa Harvest & Technoserve Input Supply- Funding support: Rockefeller Foundation; IDRC; DuPont & AGRA
  6. 6. Addressing the Constraints: Awareness Creation Sensitization using agri extension, print & electronic media Group formation & management Training on technology Farmer to farmer exchange programs
  7. 7. Addressing the Constraints: Enhancing Seedling Access • Seedling affordability: Subsidy programme, credit through Equity bank & K-REP Availability: Distribution nurseries owned by farmer groups or entrepreneurs
  8. 8. Higher Yields Through Proper Agronomy •The average yield of TC 32 Tons banana. Per Ha •The average yield of 14 Tons non-TC banana plantations
  9. 9. Post Harvest Handling & Value addition Post harvest handling skills De-handing Cleaning Grading Packaging & branding
  10. 10. Economic Impact at Household Level Particulars First Year Subsequent Year upto 5th Year Establishment Cost (US$) 1,103 – Annual Operational Cost (US$) 532 532 Total Cost (US$) 1,635 532 Yield per Acre (tonnes) 11.48 15.03 Price per Tonne (US$) 183 183 Gross Income (US$) 2,105 2,756 Net Income to the Farmer (US$) 470 2,224
  11. 11. Impact at the Community Level • The formation of cohesive farmer groups has empowered farmers to address other community concerns such as health, infrastructure, water etc. • Empowered farmers are development ready and are accessing credit and 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.
  12. 12. Social Impact • 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.
  13. 13. Gender Dimensions of Impact • 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.
  14. 14. Economic Impact at National Level • 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.
  15. 15. 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