KARI-McGill Food Security Research Project Innovating for resilient farming systems

Jane Mung’oma, OnesmusNjathi and the KARIMcGill Research Team KARI-McGill Food Security Research Project Innovating for resilient farming systems Participatory knowledge building for market access : A case of smallholder rural farmers in Kenya Research to Feed Africa CIFSRF Symposium Naivasha, Kenya 23-27 June 2014 Photos: IDRC/PANOS, Sven Torfinn

Introduction • Contribution to agro enterprise development in the “Innovating for resilient farming systems”Project • An interdisciplinary approach to pro-poor market accesswith: • Kenya Agricultural Research Institute (KARI) scientists • Farmers groups • Cascade Development Organization • Local administrations and the Ministry of Agriculture and Livestock Development

Issues • Markets matter for the poor, yet not fully harnessed for poverty alleviation and food security • Interdisciplinary teams having disjointed approaches to pro-poor market development; yet novel technologies! • Project participants (farmers) not taking ownership of produce marketing • Perpetual complaint from farmers “no markets” • Perpetual complaint from markets “never enough product” • Perpetual mistrust between producers and buyers • Capacity becoming central to the national and local development of countries(OECD)

Conceptual framework for Market System Development IMPROVEMENTS IN LIVELIHOOD/WELLBEING for significant numbers of MARGINALISED SMALL-SCALE RURAL PRODUCERS The 3 Global Indicators (#enterprises, incomes, employment) • TRANSFORMATIONS IN THE MARKET SYSTEM • at three levels: • Business Environment • Value Chain Actors / Relationships • Provision of Inputs & Services Outcomes MARKET SYSTEM ACTORS(elsewhere)inspired to adoptand adapt lessonsand businessmodels emergingfrom the project EMPOWERED PRODUCERSexploring more and better business opportunities for themselves & their communities MARKET SYSTEM ACTORS(in project area)working together to change criticalissues and relationships in the market system Outputs Goal (Vision)

Implementation Methodology • Pro-poor market system development (MD) & linkages • Not marketing • VCD, LED • Inclusive financial access; strengthening informal financial systems (savings and ROSCAs) • Capacity building • Practitioners: Understand and apply systemic and participatory MD approaches • Market actors [farmers]: Develop optimal participation in the market • 6-Step Market Development Protocol • Identifying and packaging opportunities

The Market Development Protocol

Activities • Capacity building (Research Teams and Farmers, MOGs) • Training • Mentoring of Research Teams • Subsector selection/Evaluating enterprises for the market(based on criteria) • Food security • Competitive advantage in the market • Gender & Youth consideration • Value addition • Resilience • Other criteria that would make the market engage: • Gross margins • Income smoothing • Output market linkages through Market Opportunity groups (MOGs)

MOGs: An Informed Market Interface 18 MOGs established with 3 representatives per FRDA: • Carry out market appraisal (quantities, prices) • Quantify existing and future demand of the products in the market • Identify market requirements (variety, quality, quantity, best institutional arrangements to engage with farmers) • Identify potential bulk buyers (location, terms, transaction costs)

Household annual agro-based income Matrix IllatuFRDA√√√ High but unexploited potential√√ Peak harvest & sales√ Reducing harvest & Sales0 no harvest, no sales

Results What and how to track and measure: • Reporting on achievements (relative to 3 universal impact indicators) • Number of target enterprises benefited • Net additional income generated • Net additional jobs created Indicator source: www.enterprise-development.org/page/measuring-and-reporting-results

Enterprises selected

Increased Incomes Green Gram Market data June 2014; Ksh/kg (1CAD=80.001)

Implications Emerging Opportunities • Partnership and capacity development • Investment in interdisciplinary and farmer MD capacity building • As part of sustainable development and improving effectiveness • Strengthening the MOGs • Weights and measures in the market place • Many farmers are disadvantaged by the use of tins • Policy guidance from counties • Buyer-seller contracts • Farmers disadvantaged by selling individually (county policy) • Structures to facilitate joint storage and marketing (county policy) • Access to appropriate finance, beyond existing instruments • The global market reality (KARI researchers) • India landed price realities

Acknowledgements This research was made possible through the Canadian International Food Security Research Fund (#106510). The Canadian International Food Security Research Fund (CIFSRF) is a program of Canada’s International Development Research Centre (IDRC) undertaken with the financial support of the Government of Canada provided through Foreign Affairs, Trade and Development Canada (DFATD). karimcgill-foodsecurity.org Photos: IDRC/PANOS, Sven Torfinn

KARI-McGill Food Security Research Project Innovating for resilient farming systems