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Small-Holder Inclusive Livestock Value Chain Finance: A Case of Taita Taveta Country in Kenya – Coast Province
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Small-Holder Inclusive Livestock Value Chain Finance: A Case of Taita Taveta Country in Kenya – Coast Province


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Nairobi, 15th July, 2014. Presentation by Octavian Mghanga Rewona (Taita Agriculture & Livestock Enterprises) on Day 1 of the Fin4Ag conference.

Nairobi, 15th July, 2014. Presentation by Octavian Mghanga Rewona (Taita Agriculture & Livestock Enterprises) on Day 1 of the Fin4Ag conference.

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  • 2. THE PROJECT SITE : TAITA - TAVETA COUNTY  It is one of the 5 counties in the Coast region and is situated to the South West.  It comprises of four Sub-Counties : Taita, Taveta, ,Voi and Mwatate  The county covers an area is 17,084 Km sq.  The population is 284,657 people.  KAPAP is implementing and financing Meat goat value chain in the 20 locations. in the county.  Supports 4,000 households
  • 3. THE PROJECT - KAPAP  Kenya Agricultural Productivity and Agribusiness Project (KAPAP) is a Government of Kenya initiative supported by the World Bank.  The Project Development Objective (PDO) is to increase agricultural productivity and incomes of smallholder farmers from agricultural and agribusiness activities in the project area.  The project activities will contribute to this objective by transforming and improving the performance of the agricultural technology systems, empowering men and women stakeholders and promoting the development of agribusiness in the project area. PROBLEM STATEMENT  Low levels of organizational skills.  Low numbers of goats kept per household (averaging 5)  Low numbers of goats sold per household per year (averaging 3)  Low market weights for age i.e. goats weighing 15 kgs at the age of 2 years.  Low market prices averaging between Kshs 850 and 1,200 per head.  Few improved Galla crosses.  High Mortality rates due to CCPP and worm infestations.  Inadequate access to credit facilities.
  • 4.  The project is using “The Contractual Service Delivery Process” to finance the livestock (Meat Goat) Value Chain.  This process is designed to promote agribusiness where beneficiaries are expected to realize/earn agribusiness returns from the value chain services offered by service providers they themselves contract  The payments for these contracted services are drawn from ‘Service Provision Grants’ issued to the beneficiaries by the project against competitive proposals.  Payment for contracted services is pegged to achievement of predetermined outcome indicator benchmarks that are negotiated between the beneficiaries (owners) and the service provider (consortium) during the planning stages. IMPLEMENTATION METHODOLOGY
  • 5. THE CONTRACTED SERVICE PROVIDER – TAITA AGRICULTURE & LIVESTOCK ENTERPRISES CONSORTIUM. Achievements  Organized the goat keepers into zones, CIG`s and into a marketing cooperative.  Assisted CIG`s develop annual operational and strategic plans.  Introduced the concept of weighing goats before selling to brokers.(channel 1)  Linked the farmers to local markets (Butcheries) through their CIG`s.  Linked the farmers to KMC and other regional meat processors through their CIGs. Challenges  Lack of tailor made financing schemes for goat keepers to enable them re-stock and trade with other value chain actors.  Lack of enough stock to meet the market demands.  Inadequate access to credit to enable goalkeepers access inputs such as breeding bucks, Vaccines, de-wormers etc
  • 6. CONCLUSION & RECOMMENDATIONS  A new partnership funding stream be established.  From this fund, funds to flow to farmer managed agribusiness fund.  The AG fund be managed by an intermediary consortia.  Farmers be given a share purchase loan through which they boost their loan portfolio in their meat goat Sacco to be formed.  From the Sacco, farmers will borrow as need arises to buy does and bucks for restocking, to meet the cost of vaccinations against CCPP and de-worming.  The Sacco will also offer trading loans to the marketing cooperative to buy the members goats.  The processors and the butcher-men are free to join the Sacco and also borrow to ensure the whole value chain financing. THANK YOU
  • 7. MEAT GOAT VALUE CHAIN VISION – RETAIN/CREATE WEALTH OF 15 MILLION PER YEAR Benchmark No. 1: 10% Payments upon signing of the Contract S.NO Planned Interventions Expected Outputs 1 Organizing the meat goat CIG members into formal group institutions 16 Meat Goat Groups registered with the ministry of social services 2 Inventory taking of all the CIG members and establishment of meat goat collection centres 16 goat collection centres established 3 Initiating Market, market linkages and formalizing business deals Local and regional market outlets for meat goats established and goat keepers linked to these markets Benchmark No. 2 : 20% Payments upon 20% of farmers having acquired Improved breeding buck 4 Community Based selection & culling of breeding bucks conducted The exercise is completed in the 64 zones in the county 5 Purchase breeding bucks and establish a buck camp A Doe/Buck ratio is ensured and a community based buck rotation plan drawn Benchmark No. 3. 30% payments when 40% of the farmers have sold goats each @ Ksh 2,500/=creating an additional income of 6 m 6 Training farmers on agribusiness and provision of marketing tools Weighing scales and sling for weighing goats introduced and demonstrated among the oat keepers 7 Facilitating the goat keepers sell meat on wholesale instead of live goats Goat keepers are taking their goats to the slaughterhouse through their group and selling meat to butcher shops. Benchmark No. 4. 40% payment upon successfully assisting at least 80% of the farmers to market and register additional income of at least 9 m 8 Facilitate establishment of a meat depot cum retail butchery Three meat depots established 9 Linking more goat keepers to the meat market locally and regionally More goat keepers linked to markets. Back
  • 8. Name of CIG Bucks Does Kids Weaners Young bucks Hoggets Male Females Males Females 1 Kitobo 2 Kimorigo 3 Kimala 4 Nakruto 5 Challa 6 Njukini 7 Mwakitau 8 Bura 9 Mwachabo 10 Mwatate 11 Kasigau 12 Maungu 13 Sagalla 14 Voi 15 Ngolia 16 Kishushe Total MONTHLY REPORT – COUNTY LEVEL Back
  • 9. Name of Zone Bucks Does Kids Weaners Young bucks Hoggets Male Female Male Female Zone 1 Zone 2 Zone 3 Zone 4 Total MONTHLY REPORT – CIG LEVEL Back
  • 10. Bucks Does Kids Weaners Young bucks Hoggets Stock Brought Forward ( From baseline – totals of sheet 1. INCEASES “A” Transfers From Births Purchases Donations Total “A” DECREASE S “B” Deaths Sales Donations Dowry Own Slaughter Transfers To Total “B” Balances Stock Brought Down MONTHLY REPORT – ZONAL LEVEL Back
  • 11. No Activity JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC 1 FEEDING Grazing Management x x x x x x x x x x x x Forage Conservation x x x x Drought Supplementary Feed x x x x x 2 HEALTH Vaccination x x Drenching x x Dipping x x x x x x x x x x x x Drug Purchase x 3 BREEDING Mating x x x x x x x x x x x x Culling & Selection x x 4 LABOUR Daily x x x x x x x x x x x x Seasonal x x x x Occasional x x 5 MARKETING & SELLING x x x ANNUAL OPERATIONAL PLAN Back