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Powering Agro Supply chains
across East Africa
Othis’s Story
He belongs to
A co-op
Overall industry challenges
       Visibility to total market
       Limited view of the full Product market,         Accountability
       the players and where and how they               improve transparency and
       participate in the Product supply chain          accountability along the
                                                        entire Product supply chain


                                                                                Research &
                                                                                feedback
                                                                                An efficient, effective means
                                                                                to conduct research on the
                                                                                state of the Product supply
                                                                                chain and to assess the
                                                                                impact of its initiatives




Communication                                                            Data capture & Mgt
A more effective,                                                        Collecting information
efficient means to                                                       prudently at source &
disseminate                                                              disseminating in a timely
information to key                                                       fashion
stakeholders
                            Visibility to farmer profiles
                            Difficulty in tracking production volumes, individual
                            Product farmers & complete traceability of Product
Farmer
   challenges



                              Funding
             fraud
                     Reliable market info
   traceability
                     Long payment cycles

Visibility           Differentiated pricing
Challenges in Agro value chains
                           •   Traceability
                           •   Pricing
               Markets     •   Availability
                           •   Market inequality




                           • Prompt pay
                           • Costs to processor
              Processors
                             associated with cost of
                             money
                           • Quality
                           • Quantity
Challenges in Agro value chains

                  • Bulking is the norm to benefit from
Co-op’s or self     economies of scale
help groups or    • Challenges
  companies
                     • Record keeping & Staff capabilities
                     • Management skills
                  • Inefficiencies are high


                   • They are not sure what the farmers
                     needs
Input suppliers
                   • Lack info to understand when and in
                     what quantities
                   • This translates to the level of financial
                     facilitation is required
Role of automation in agro
value chains in East Africa
The wheel
The Players

          Buying clerk      The Hub            HQ


Farmers



                  Produce             SMS



                             Money + Inputs + SMS
Visibility across entire
supply chain

Accountability and fraud
management
                              The BIG
Mobile payment
capabilities
                              opportunities

Real-time control of
purchasing and pricing

Insight into individual
farmer profiles

Extension services tracking
and management
Role of automation in agro
value chains in East Africa
5.7%
Of Kenyans are involved and impacted
By the Kenya dairy value chain



3.5%
Of Kenya’s GDP is derived from dairy value
chains



Kshs 48,000
What it means to households per year on
average



22%           Increase in farmer yield
9%
increase in crop yield




$100
 Farmer yield per month increase




fraud
 Eliminated in 98% of the cases
Is there hope?
Automation is the key to unlocking growth
for East Africa’s agro value chains
How the solution works: Our solution delivers complete
visibility, accountability, and control over your supply chain



           14.3




Farmer delivers goods for     Buying center receipts            Warehouse/processor                  Total visibility to
 electronic weighing, with   and delivery data tracked          deliveries and inventory           complete supply chain,
  data captured via PDA          and aggregated                       data updated                   from farmer to HQ

      Agrimanagr PDA               Agrimanagr Hub                     Agrimanagr Hub                    Agrimanagr HQ




                             Real-time updates on production volume, quality, pricing data – all
                                  visible by farmer, batch, collection point, and warehouse



                                 Real-time control of purchase volume and pricing decisions
                             throughout supply chain + mobile payment capabilities to farmers



                                                                                                                        16
Agrimanagr™ tools: Intuitive, easy-to-use tools at every point
in the supply chain enhance productivity and real-time insight




        Agrimanagr PDA                    Agrimanagr Hub                       Agrimanagr HQ

• Produce purchase with            • Collection confirmation        • Supply chain analysis of
  electronic scale, capturing        with follow-up weighing,         production, quality, and more,
  weight, quality, batch, price      grading, and aggregation         with real-time location
• Transaction confirmation         • Inventory tracking of total    • Volume and pricing
  via real-time update to HQ         collection based on product,     decisions pushed through
  and printed receipt for farmer     source, and batch                supply chain in real-time
• Farmer profile for individual    • Production analysis of         • Ecosystem visibility, with
  producers, including location,     farmers and aggregate            visibility to farmers and
  farm size, production data         performance                      performance
• Input and production             • Mobile payments including      • Extension services and
  history captured for               partial payments enabled         input management
  individual farmers                 from processor, co-op, or at     capabilities, with tracking to
                                     collection                       level of individual farmer
                                                                                                       17
How it comes together?
How it works>>
Video of how the solution comes together




http://bit.ly/TSELdZ




                                           20
Business impact: Transform the way you connect with farmers
and manage your supply chain, from farm gate to processor

         360⁰ view of individual farmers – who they are and what they grow



                 Transparency + accountability in every transaction



         Extension services + input loans, with view of farmer balance sheet



               Mobile payments direct at farm-gate or from processor



                      Traceability throughout the supply chain



               Real-time visibility and control of overall supply chain

                                                                               21
Social + ecosystem impact: Empower all stakeholders with
transparency, knowledge, inputs, and more

         360⁰ view of individual farmers – who and needs are visible
                 Farmer identity, performance, they are and what they grow



            Elimination of fraud, accountability in every transaction
                 Transparency + with significant boost to farmer income



         Extension services + input expertise, and inputfarmer to farmer
             Knowledge, technical loans, with view of loans balance sheet



            Mobile pre-payments and installment payment enabled, and
              Mobile payments direct at farm-gate or from processor
               financial history brings farmer into banking system


                Potential to access new markets and price premiums
                     Traceability throughout the supply chain
                                   with traceability


          Visibility and better links for stakeholders across the ecosystem,
                Real-time visibility and control of overall supply chain
            creating opportunity to introduce other value-added services

                                                                               22
Multi-commodity & region & language
                            Dairy

                            Tea

                            Horticulture

                            Cotton

                            Cashew Nuts
Buying centers
The ecosystem
                        Processors




                  Smallholder
                  Farmers                                      Co-operatives




                                                                  Factories &
                Extension                                         cooling plants
                Officers


                                                          NGOS’s and
                        Large                             development
                        farms                             partners

                                                   Marketers

                                      Research
                                     foundations
Getting a co-op up and going



Kshs 1,600
 For every buying clerk
                                                       Training

                                           Solution
                                                                  Hand holding
                                           mapping
                                                        2 days
                          Initial survey                           2 days to 1
                                              2 days
                                                                      week
                              1 day


                                                                  No of days
Case study 1
Gatamayu Co-op


                 • Manual
  Started with   • Error prone
                                                              2,000 liters
 manual paper    • Difficult to reconcile                     500 farmers
 based system
                 • Farmer apathy and movement to other co-
                   op’s

                 • Got all their paper based systems to
 Automation        computer based systems
  phase 1                                                      8,000 liters
                 • Ensured all staff were trained to handle
                                                              2100 farmers
                   new phase of automation
                 • Paying time went down from 2 months to 1
                   month


                 • Produce purchase for farmers
 Automation      • Extension service for farmer
  phase 2                                                      16,000 liters
                 • On the spot reconciliation regardless of   5,200 farmers
                   size of the field force
                 • Payment times went down to days
                   from a month                                          27
Case study 2
Coffee case study


 • http://bit.ly/TJ6T5O
Our clients: We deliver solutions to leading agribusinesses,
NGOs, government bodies, banks, and more




                                                               30
Co-operatives

                  Donor agencies

                  Development partners

Interested?
30 day free POC
Contact Us




Herbert Thuo
Chief Marketing Officer
+254 720 405080

hthuo@virtualcity.co.ke


                 AMS   Fedha Team_Sales Tool_EDS - SY edits

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BDS Conference - Automation of Agri-value chains

  • 1. Powering Agro Supply chains across East Africa
  • 4. Overall industry challenges Visibility to total market Limited view of the full Product market, Accountability the players and where and how they improve transparency and participate in the Product supply chain accountability along the entire Product supply chain Research & feedback An efficient, effective means to conduct research on the state of the Product supply chain and to assess the impact of its initiatives Communication Data capture & Mgt A more effective, Collecting information efficient means to prudently at source & disseminate disseminating in a timely information to key fashion stakeholders Visibility to farmer profiles Difficulty in tracking production volumes, individual Product farmers & complete traceability of Product
  • 5. Farmer challenges Funding fraud Reliable market info traceability Long payment cycles Visibility Differentiated pricing
  • 6. Challenges in Agro value chains • Traceability • Pricing Markets • Availability • Market inequality • Prompt pay • Costs to processor Processors associated with cost of money • Quality • Quantity
  • 7. Challenges in Agro value chains • Bulking is the norm to benefit from Co-op’s or self economies of scale help groups or • Challenges companies • Record keeping & Staff capabilities • Management skills • Inefficiencies are high • They are not sure what the farmers needs Input suppliers • Lack info to understand when and in what quantities • This translates to the level of financial facilitation is required
  • 8. Role of automation in agro value chains in East Africa
  • 10. The Players Buying clerk The Hub HQ Farmers Produce SMS Money + Inputs + SMS
  • 11. Visibility across entire supply chain Accountability and fraud management The BIG Mobile payment capabilities opportunities Real-time control of purchasing and pricing Insight into individual farmer profiles Extension services tracking and management
  • 12. Role of automation in agro value chains in East Africa
  • 13. 5.7% Of Kenyans are involved and impacted By the Kenya dairy value chain 3.5% Of Kenya’s GDP is derived from dairy value chains Kshs 48,000 What it means to households per year on average 22% Increase in farmer yield
  • 14. 9% increase in crop yield $100 Farmer yield per month increase fraud Eliminated in 98% of the cases
  • 15. Is there hope? Automation is the key to unlocking growth for East Africa’s agro value chains
  • 16. How the solution works: Our solution delivers complete visibility, accountability, and control over your supply chain 14.3 Farmer delivers goods for Buying center receipts Warehouse/processor Total visibility to electronic weighing, with and delivery data tracked deliveries and inventory complete supply chain, data captured via PDA and aggregated data updated from farmer to HQ Agrimanagr PDA Agrimanagr Hub Agrimanagr Hub Agrimanagr HQ Real-time updates on production volume, quality, pricing data – all visible by farmer, batch, collection point, and warehouse Real-time control of purchase volume and pricing decisions throughout supply chain + mobile payment capabilities to farmers 16
  • 17. Agrimanagr™ tools: Intuitive, easy-to-use tools at every point in the supply chain enhance productivity and real-time insight Agrimanagr PDA Agrimanagr Hub Agrimanagr HQ • Produce purchase with • Collection confirmation • Supply chain analysis of electronic scale, capturing with follow-up weighing, production, quality, and more, weight, quality, batch, price grading, and aggregation with real-time location • Transaction confirmation • Inventory tracking of total • Volume and pricing via real-time update to HQ collection based on product, decisions pushed through and printed receipt for farmer source, and batch supply chain in real-time • Farmer profile for individual • Production analysis of • Ecosystem visibility, with producers, including location, farmers and aggregate visibility to farmers and farm size, production data performance performance • Input and production • Mobile payments including • Extension services and history captured for partial payments enabled input management individual farmers from processor, co-op, or at capabilities, with tracking to collection level of individual farmer 17
  • 18.
  • 19. How it comes together? How it works>>
  • 20. Video of how the solution comes together http://bit.ly/TSELdZ 20
  • 21. Business impact: Transform the way you connect with farmers and manage your supply chain, from farm gate to processor 360⁰ view of individual farmers – who they are and what they grow Transparency + accountability in every transaction Extension services + input loans, with view of farmer balance sheet Mobile payments direct at farm-gate or from processor Traceability throughout the supply chain Real-time visibility and control of overall supply chain 21
  • 22. Social + ecosystem impact: Empower all stakeholders with transparency, knowledge, inputs, and more 360⁰ view of individual farmers – who and needs are visible Farmer identity, performance, they are and what they grow Elimination of fraud, accountability in every transaction Transparency + with significant boost to farmer income Extension services + input expertise, and inputfarmer to farmer Knowledge, technical loans, with view of loans balance sheet Mobile pre-payments and installment payment enabled, and Mobile payments direct at farm-gate or from processor financial history brings farmer into banking system Potential to access new markets and price premiums Traceability throughout the supply chain with traceability Visibility and better links for stakeholders across the ecosystem, Real-time visibility and control of overall supply chain creating opportunity to introduce other value-added services 22
  • 23. Multi-commodity & region & language Dairy Tea Horticulture Cotton Cashew Nuts
  • 24. Buying centers The ecosystem Processors Smallholder Farmers Co-operatives Factories & Extension cooling plants Officers NGOS’s and Large development farms partners Marketers Research foundations
  • 25. Getting a co-op up and going Kshs 1,600 For every buying clerk Training Solution Hand holding mapping 2 days Initial survey 2 days to 1 2 days week 1 day No of days
  • 27. Gatamayu Co-op • Manual Started with • Error prone 2,000 liters manual paper • Difficult to reconcile 500 farmers based system • Farmer apathy and movement to other co- op’s • Got all their paper based systems to Automation computer based systems phase 1 8,000 liters • Ensured all staff were trained to handle 2100 farmers new phase of automation • Paying time went down from 2 months to 1 month • Produce purchase for farmers Automation • Extension service for farmer phase 2 16,000 liters • On the spot reconciliation regardless of 5,200 farmers size of the field force • Payment times went down to days from a month 27
  • 29. Coffee case study • http://bit.ly/TJ6T5O
  • 30. Our clients: We deliver solutions to leading agribusinesses, NGOs, government bodies, banks, and more 30
  • 31. Co-operatives Donor agencies Development partners Interested? 30 day free POC
  • 32. Contact Us Herbert Thuo Chief Marketing Officer +254 720 405080 hthuo@virtualcity.co.ke AMS Fedha Team_Sales Tool_EDS - SY edits