Project Incubator Award 2010 Ampath-FPI Valley Orchards
Building Economic Security: The Family Preservation Initiative
Institutional Background ACADEMIC MODEL PROVIDING ACCESS TO HEALTH CARE (AMPATH) – A partnership between Moi University, Moi Teaching and Referral Hospital, Ministry of Health and a consortium of U.S. medical schools led by the Indiana University. – Fosters a comprehensive approach to HIV/AIDS control, transitioning into chronic disease and primary care – Addresses food and income security needs – More than 140,000 Clients receiving care
Cont’d… The Family Preservation Initiative, (FPI) is the IGA program of AMPATH. – Provides avenues for food and income insecure HIV infected and affected households to achieve sustainable economic security, by increasing their skills, knowledge, productivity and improving quality of life. – Main interventions fall within capacity building services and enterprise development.
Main Social-Economic Features of AMPATH Target RegionPopulation7.6 millionVIP target Coverage: Atleast 12 Districts (seemap)Poverty Rate48%-65%HIV/AID PrevalenceRate5.7 %Average FarmHousehold6.8Main EconomicActivitiesAgriculture, breadbasket for Kenya
Goal 1:Promote and enable economic security for all at-risk AMPATH nutritional program clients FPI Interventions Rural – Urban Focus Value Initiative Program (VIP) Rural & Urban Purchase for Progress (P4P) Rural Imani Workshops Urban Watalamu Repair & Urban Maintenance Agriculture Extension Services Rural Business Development Services Rural & Urban
Value Initiative Program Description• Problem to address: High poverty levels amongst HIV affected in the Rift Valley and Western region of Kenya• Goal: increased income for MEs within HIV/AIDS affected communities• Purpose: increased productivity and access to passion fruits markets for the poor and HIV/AIDS affected populations
Goal 2: Provide sustainable funding support to the FPI ProgramFPI Enterprises Product / ServiceImani Workshops Quality Handicrafts & TrainingCool Stream Restaurant Hospitality & CateringValley Orchards Fruit Pulp – frozen/freshWatalamu Repair & Renovations, small construction,Maintenance facility repair & maintenanceGreen World Nursery Quality Passion Fruit Seedlings
FPI Goal 2: Program Sustainability Big Picture FPI ENTERPRISES AMPATH CARE Enterprise Development And Management LOCAL AND INTERNATIONAL MARKETS
FPI Goal 2: Program Sustainability Valley Orchards Objectives: • supplies high quality passion fruit pulp to large processors and juice distributors • provides local market for passion fruit farmers • enables farmer stability and improved livelihood
FPI Goal 2: Program Sustainability Valley Orchards Operations: • Test operations in late 2009, first 10 ton order delivery of high quality frozen pulp in mid 2010 • Processing capacity of 1.8 tons pulp per day and 3 tons of fresh fruit per day. • Solid relationship with local fruit farmers
FPI Goal 2: Program Sustainability Valley Orchards Who will benefit? • Local farmers and surrounding community by providing a stable market, direct and indirect employment respectively. • By extension AMPATH which currently provides basic health care to the most vulnerable within the Western Region of Kenya
FPI Goal 2: Program Sustainability Valley Orchards Award utilization: • Market facilitation – enable VO to aggressively pursue market without deepening its debt. • Purchase of lab test equipment (enable real time testing of product throughout process) and in-house quality control improvement. • Install solar panels to save on power costs incurred during pasteurization.
Acknowledgements • Small Enterprise Education and Promotion Network (The SEEP Network) • Indiana University School of Medicine • Moi University School of Medicine • Moi Teaching and Referral Hospital • This program was supported in part by a grant to the USAID-AMPATH Partnership from theMoi Teaching and United States Agency for InternationalReferral Hospital Development as part of the President’s Emergency Plan for AIDS Relief (PEPFAR).
FPI Goal 2: Program Sustainability Valley Orchards Market: • KHDP: – 2,800MT passion fruit demand in Kenya and Uganda – Local and international market for juice expanding – Passion fruits fetch a good market in Britain and the European Union, while the Middle East is also emerging as an option • Technoserve: – 59,000MT passion fruit target production by 2013 – target farmer growth of 2.7k to 9.5k farmers in rift valley 2010-2013
FPI Goal 2: Program Sustainability Valley Orchards Partners: • Partner with Moi University, Chemical and Microbial departments for quality control measures and lab tests. • Partner with AMPATH to provide a sustainable solution for the provision of health care services to the most vulnerable and poor of the community.
FPI Goal 2: Program Sustainability Valley Orchards Financial Projections Year 1 Year 2 Year 1 Year 2 Kshs Kshs USD USD Pulp Production (Lts) 135,000 180,000 135,000 180,000 Revenue 40,500,000 54,000,000 506,250 675,000 Cost of sales 35,685,672 44,266,585 446,071 553,332 Gross profit 4,814,328 9,733,415 60,179 121,668 Operating costs 4,736,587 5,715,600 59,207 71,445 Net Income 77,741 4,017,815 972 50,223
FPI Goal 2: Program Sustainability Valley Orchards Capital invested and investment/debt support required: • Friends of AMPATH have put forward $549,000 in capital investment • Additional investment of $80,000 will place Valley Orchards in a competitive position
Market Based SolutionsINTERVENTION AREA SPECIFIC INTERVENTIONS/BUSINESS MODELS1. Fruit Output and 1.1 Technical Assistance providerQuality 1.2 Tailored Financial Services 1.3 Inputs and Equipment package2. Micro processing / 2.1 Quality control systemValue Add Products 2.2 Tailored Financial service Products. 2.3 Technical and Business training provider 2.4 Infrastructure Service3. Market Linkage: Farmer 3.1 Market Information market- Trader 3.2 Business Skills / Management Training4. Market Linkages:- 4.1 Promotion and Marketing servicesTrader to Formal Markets