Farm Concern International Winning markets for farming communities Smallholder commercialization Based on ‘Commercial Village Approach’ Mumbi Kimathi Mrs. Market & Chains Analyst

Two Roads In farming Life PRODUCE IDENTIFY MARKET FIND MARKETS PLAN TO PRODUCE “road less traveled” “road for most” PRODUCE HARVEST Burst Boom

Trigger commercialization Identify markets Conduct value chain analysis Identify routes for market entry Develop value chain partnerships Prioritize products from farmers’ basket – avoid wide range or too narrow range Conduct Cost Benefit Analysis along the Farm-to-Market chain Assess target farmers Agro-ecological zone analysis BDS Mapping

Cash economy Zone Characteristics Village statusDescriptionValue Chain Status Zone 4  Commercial BDS systems established  Relatively high investment levels  Medium / large –scale farmers  Low poverty index  High private sector investments  Cash economy  Active regional and global value chains  Well established business partnerships  Cash economy Developed / Commercialized Zone 3  Semi-commercial production systems  Active local value chains  Weak national / regional value chains  Relatively seasonal value chain  Semi-commercial BDS system  Relatively developed marketing infrastructure  Seasonal cash economy Intermediate Zone 2  Interest by players  Inconsistent value chains  Under-developed Marketing infrastructure  Mix of food and cash economy  Semi commercial production systems Developing Zone 1  Minimally identifiable value chains and BDS systems  Largely food economy  Minimal economic activities  Large parcels of land characterized by low productivity Remotely developed Zone 0  Totally underdeveloped value chains  Food economy  No identified economic activities  No BDS systems  No highlighted interest by buyers Totally undeveloped

Commercial Village Approach Commercialize typical African Village Clusters of producers groups within a village setting Comm. Vill.: 500 Households Currently: 60,000 HH ( Avg. 6 members/HH) Village co-ordination unit Multileveled leadership structure –Executive committees –Commercialization S-B –Marketing S-B –Financial S-B –Social S-B

African Traditional Vegetables cont… Case study Consumption for ATV in Nairobi has increased from 31 Tonnes in 2003 with an estimated farm gate value of US$ 6,000 to A current 600 Tonnes in 2006 with an estimated farm gate value of US$ 142,860 Farm gate prices increased by 30% and the current supply of 500 Tonnes is estimated to account for 60% of the demand level. The ATV distribution network includes supermarkets, kiosks, informal markets and street markets.

Bridging gap btw poverty & creditworthiness Trigger commercialization Market Access Financial Services (MacFis), a pro-poor credit line Graduation from MacFis after 2 years, market support offered for 4 years Commercial Village Financial Services –Commercialization triggered through input credit for poor communities –Mandatory savings from sales –Repayment for loan recovered from payments Farm Concern Intl’ among 5 global winners of Pro-Poor Innovative Challenge[ PPIC] CGAP