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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. FIND MARKETS. PLAN TO PRODUCE. PRODUCE HARVEST. Boom.
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Farm Concern InternationalWinning markets for farming communitiesSmallholder commercializationBased on ‘Commercial Village Approach’Mumbi Kimathi Mrs.Market & Chains Analyst
Two Roads In farming Life FIND MARKETS PLAN TO PRODUCE PRODUCE HARVEST Boom “road less traveled” Burst “road for most” PRODUCE IDENTIFY MARKET
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
Zone Characteristics Cash economy
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 Vegetablescont… 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