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LWF Aloe Bio-enterprise Development v7

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					        Development of New and/or Scale-up of Existing. Aloe-based Business in Laikipia



                        Laikipia Wildlife Foundation

        Development of New and/or Scale-up of Existing
               Aloe-based Business in Laikipia




Submitted to: The Laikipia Wildlife Forum (LWF)

Submitted by:
Susan Wren,
Technical Organic & Natural Products Advisor.
Bio-enterprise Consultant
Product and Market Development
Email: organic@africaonline.co.ke

Date: April 2008




Susan Wren. April 08                                                                      1
         Development of New and/or Scale-up of Existing. Aloe-based Business in Laikipia


CONTENTS
Executive Summary
1. Work Plan
1.1 Goals/objectives
1.2 Outputs
1.3 Methodology

2. Desk Review Summary
2.1 Background to Aloe Enterprise Development in Laikipia
          2.1.1 Laikipia District
          2.1.2 The Laikipia Wildlife Forum
          2.1.3 Laikipia Aloe Bio-Enterprise Project (LAB):
          2.1.4 CITES and the Kenyan Government
          2.1.5 Kenya Aloe Working Group (KAWG):
          2.1.6 SNV Sustainable Utilization of Aloe Resources in the Drylands Study
          2.1.7 Summary of the main actors
          2.1.8 Summary of the Supply Chain Actors and Functions
2.2 International Aloe Commercialisation
          2.2.1 Description
          2.2.2 Chemistry:
          2.2.3 Historical context
          2.2.4 Health benefits/claims:
          2.2.5 Commercial cultivation
          2.2.6 Commercial processing and manufacturing
2.3 International Market Characteristics
          2.3.1 Natural products market trend
          2.3.2 Retailed aloe products
          2.3.3 Main commercial extracts
          2.3.4 Retail Product Forms
          2.3.5 Global distribution of commercial aloe
          2.3.6 Quality standards and regulation
          2.3 Commercialisation of Aloe species in Africa
          2.3.1 Background
          2.3.2 Eastern Africa
          2.3.3 South Africa
2.4 Commercialisation of Aloe sps in Kenya
          2.4.1 Description of the main species and distribution
          2.4.2 Exploitation crisis
          2.4.3 Regulation and Licensing
          2.4.4 Organisations of the Aloe Producers and Processors
          2.4.5 Aloe Supply Chain
          2.4.6 Schematic of the Aloe Supply Chain in Kenya:

3. Laikipia Aloe Enterprise Review and Impact Assessment
3.1 Existing Aloe-based business in Laikipia
3.2 Ecological/conservation impact assessment
          3.2.1 Background:
          3.2.2 Laikipia Environment:
          3.2.3 Laikipia vegetation:
          3.2.4 Land use:
          3.2.5 Aloe species, distribution and status in Laikipia
3.3 Socio-economic impact
          3.3.1 Traditional uses of Aloe species in the Laikipia area
          3.3.2 Traditional NTFP enterprise
          3.3.3 Status of the aloe collectors/harvesters:
          3.3.4 Management issues
3.4 Challenges, Threats, Strengths and Opportunities of Aloe Enterprise in Laikipia
          3.4.1 Challenges
          3.4.2 Threats:
          3.4.3 Strengths
          3.5.4 Opportunities



Susan Wren. April 08                                                                       2
         Development of New and/or Scale-up of Existing. Aloe-based Business in Laikipia


4. Market Demand and Business Opportunities
          4.1 Kenyan Market
          4.1.1 Status
          4.1.2 Existing products and prices
          4.1.3 Case Study. BIOP
          4.5.6 Learning points:
4.2 African Market
4.3 International Export
4.4 Summary of Market Characteristics
4.5 Legal hurdles
4.6 Quality Endorsement

5. Aloe Material Supply
5.1 Sustainable Wild Harvesting Protocols
5.2 Domestication Protocols and Standardised Techniques
5.3 Research and Development

6. Value addition
6.1 Physical value addition
          6.1.1 Critical points for value addition of aloe products
          6.1.2 Processing Protocols and Standardised Techniques
          6.1.3 Established Quality Standards and Labelling (GMP)
6.2 Certification - Non-physical value addition
          6.2.1 Organic
          6.2.2 Fair trade:
          6.2.3 Wild Harvest Standards.
          6.2.4 Developing the Internal Control Systems for Producer Group Certification
6.3 Product Design
          6.3.1 Taking aloe raw materials to a commercial retail product
          6.3.2 Formulation and processing quality protocols:
          6.3.3 Product Branding
          6.3.4 Packaging
          6.3.5 Service Providers

7. Business Development
         7.1 Basic criteria for commercial bio-enterprise development
         7.1.1 Competitive advantage:
         7.1.2 Economies of scale
         7.1.3 Sustaining the market position
         7.1.4 Producer group capacity
7.2 Infrastructure and Equipment
         7.2.1 Depot centres
         7.2.2 Construction of the Bio-enterprise Central Processing Centre
         7.2.3 Harvesting and Processing Equipment
7.3 Production and running costs
         7.3.1 Product materials
         7.3.2 Processing
         7.3.3 Packaging and promotional materials.
         7.3.4 Trade finance
7.4. Value Chain Development
         7.4.1 Management and organisation
         7.4.2 Product flow
         7.4.3 Developing producer group capacity
         7.4.4 Technical training of the trainers, extension and central processing staff
         7.4.5 Business capacity building
         7.4.6 Supply chain development
7.5. Marketing
         7.5.1 Core product attributes
         7.5.2 Pricing policy
         7.5.3 ‘Marketing the Story’
         7.5.4 Marketing pitches for possible product for the national and regional market:
         7.5.5 Promotional tools:



Susan Wren. April 08                                                                          3
          Development of New and/or Scale-up of Existing. Aloe-based Business in Laikipia


         7.5.6 Example of potential commercial partners:
         7.5.7 Market research
         7.5.8 Relevant international trade fairs.

8. Developing environmentally supportive bio-enterprise
8.1 Potential ecological impacts of developing bio-enterprises in Laikipia
8.2 Sustainable production/wild harvest
8.4 Summary of the rational based on environmental and economic consideration

9. Business operating structures and management capacity
9.1 Structure of the business and financial management entity
         9.1.1 Commercial bio-enterprise trade association
         9.1.2 Stakeholder owned bio-enterprise company
         9.1.3 NGO with service providing facility
         9.1.4 Trust with separate commercial trading and charitable status
         9.1.5 Legal framework
         9.1.6 Role of the Laikipia Wildlife Forum
9.2 Producer group structures and business operating capacity
         9.2.1 Justification for Producer groups:
         9.2.2 Producer group selection
         9.2.3 Basic requirements for producer group development
9.3 Commercial partners
         9.3.1 Existing Commercial Enterprises
         9.3.2 New Commercial partners
         9.3.3 Kenyan based companies
         9.3.4 Externally based companies
         9.3.5 Commercial relationship with co-operatives/producers associations
9.4 Development partners
         9.4.1 NGOs operating in Laikipia
         9.4.2 Co-operation and linkages with other national or regional initiatives
         9.4.3 International trade support schemes
9.5 Research partners
9.6 Corporate sponsorship
9.7 Investors / Joint Venture Partners
         9.7.1 Business plan and feasibility study
         9.7.2 Technical assistance services
         9.7.3 Commercial services.
         9.7.4 Marketing and sales
         9.7.5 Trade Finance and Micro-credit

10. Basic Business Analysis
10.1 Product profiles for national and regional markets
10.2 Three scale-up approaches

11. Conclusions
11.1 Opportunities
11.2 Lessons Learnt
        11.2.1 Poor returns and little incentive
        11.2.2 Insufficient scale and poor product quality
        11.2.3 Inadequate market knowledge and orientation
        11.2.4 Certification and licensing
        11.2.5 Business management strategy and ownership
11.3 Focal areas to address
        11.3.1 Education and awareness
        11.3.2 Environmental degradation – Destructive harvesting / not meeting conservation goals
        11.3.3 Suppy chain development – Low organisational and management capacity
        11.3.4 Lack of business capacity – Low economies of scale and profitability of existing aloe trade
        11.3.5 Certification - Lack of traceability and quality systems/endorsement
        11.3.6 Policy, Legal and Institutional Framework
        11.3.7 Land tenure
        11.3.8 Marketing




Susan Wren. April 08                                                                                         4
         Development of New and/or Scale-up of Existing. Aloe-based Business in Laikipia


12. Recommendations for Aloe Enterprise Development
12.1 Practical scale up priorities
         12.1.1 Sensitization and group selection
         12.1.2 Developing stakeholder responsibility
         12.1.3 Organisational Capacity.
         12.1.4 Extension and training - TOT
         12.1.5 Expanding domestication/plantations
         12.1.6 Develop sustainable guidelines and protocols
         12.1.7 Phased development of the operational framework
         12.1.8 Processing
         12.1.9 Non physical value addition – Certification
         12.1.10 Product development
         12.1.11 Market development
         12.1.12 Trading structure
         12.1.13 Commercial partnerships
         12.1.14 Legislation and standards
12.2 Regulating the industry
         12.2.1 Harnessing national statutory requirements
         12.2.2 Developing sustainable harvest levels and protocols for the aloe species
         12.2.3 Quality protocols and marketing standard
12.3 Increasing empowerment of stakeholders
         12.3.1 Laikipia communities
         12.3.2 Maximising benefits to women at each stage of the value chains
         12,3,3 Accessing finance
         12.3.4 Market development
         12.4 LWF potential role in the scaling up/development of new aloe based businesses

Annex Section
Annex 1. The International Aloe Science Council
Annex 2. Aloe products retailed in Kenya
Annex 3. Formulation of Aloe-based Products Suitable for Rural Processing
Annex 4. Commercial Harvesting & Processing Technique
Annex 5. Aloe Vera, the Health Branded Aloe
Annex 6. Commercial Proposal from AloeTrade America
Annex 7. Baringo Aloe Development Programme
Annex 8. Commercial Aloe Species and varieties
Annex 9. Appraisal of Aloe Domestication in Laikipia,
Case Studies Conducted by Kenya Aloe Working Group Secretariat.
Annex 10. The HACCP Seven Principles
Annex 11. Sustainable Wild Harvesting Protocols
Annex 12. Status Report of Aloe Commercialisation in the Coastal Region

ACKNOWLEDGEMENTS AND DISCLAIMER
This assignment was completed with the specialist input of Anne Powys, Ethnobotanist, landowner and
resident in Laikipia; and the detective work of Maxwell Lumbasi, Bio-prospecting, ICIPE and Alex Kubi of
Wild Living East Africa. For background information a number of extracts have been made from the Coast
Aloe Business Report conducted ABD-DANIDA and the SNV “Sustainable Utilization of Aloe Resources
in the Drylands” study. The excellent quality of these reports makes them sound reference materials for
the industry within Kenya and at the international level.

I would also like to thank and acknowledge the assistance of Darryn Payne, Earthblends, UK, in providing
guidance in aloe product formulation and the LWF team who have provided key information about the
aloe development activities in Laikipia. It is also important to acknowledge the cooperation from staff in
government ministries.

This assignment was undertaken for LWF by Susie Wren it is stressed that the opinions expressed in the
report are purely those of the consultants based on observations and findings during the study period. It
goes without saying that the consultants take full responsibility for any errors or omissions that maybe
found in the report.




Susan Wren. April 08                                                                                    5
           Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


ACRONYMS AND ABBREVIATIONS

ALDB           Africa Land Development Board
AMU            Aloe Management Unit
ASAL           Arid and Semi-Arid Lands
AWF            African Wildlife Foundation
CBD            Convention on Biological Diversity
CBO’s          Community Based Organization
CITES          Convention on Trade in Endangered Fauna and Flora
DRSRS          Department of Resource Surveys and Remote Sensing
EIA            Environmental Impact Assessment
EMCA           Environmental Management and Coordination Act
EU-BCP         European Union - Biodiversity Conservation Programme
FLO            Fair-trade Labelling Organizations International
FAO           Food and Agriculture Organization
GPS            Geographical Positioning System
ICIPE          International Centre for Insect Physiology and Ecology
ICS            Internal Control System
IFOAM         International Federation of Organic Agriculture members
ITDG           Intermediate Technology Development Group
KAWG           Kenya Aloe Working group
KEFRI          Kenya Forest Research Institute
KEPHIS         Kenya Plants Health Inspectorate Services
KAPG           Kieni Aloe Plantation Group
KBS            Kenya Bureau of Standards
KFD            Kenya Forest Department
KWS            Kenya Wildlife Service
KWS            Kenya Wildlife Service
LDC           Least Development Countries
LWF            Laikipia Wildlife Forum
MDG            Millennium Development Goals
MOA            Ministry of Agriculture
GDP           Gross Domestic Product
NGO           Non Governmental Organisation
NTFP          Non timber forest products
NAREDA         Natural Resources and Development Agency
NALEP          National Agriculture and Livestock extension Programme
NEMA           National Environmental Management Authority
NGO’s          Non-Governmental Organizations
NMK            National Museums of Kenya
PRSP           Poverty Reduction Strategy Paper
PFM           Participatory Forest Management
SME           Small and medium scale enterprise ( micro-enterprises)
SNV            Netherlands Development Agency
UNESCO        United Nations Education, Scientific and Cultural Organization
USAID          United States Agency for International Development
WHO           World Health Organization




Susan Wren March 08. LWF, Kenya                                                             7
               Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


1. Summary
1.1 Study Focus
This study focuses on the potential methods of developing and scaling commercial uses of identified
indigenous aloes and recommends ways to mitigate any negative effects (covering wild harvesting and
plantation aspects).

1.2 Development background
About three quarters of Kenya’s geographical areas is classified as arid and semi-arid (ASAL) which
supports about 28% of human population and about 50% of livestock population. The ASALs are
characterized with fragile ecosystems, high poverty levels, poor water resource distribution intense
conflict over access to and control of natural resources, under developed markets for a wide range of
natural resources products and poor distribution infrastructure. Climate change and variability in face of
eroded resilience and tradition coping mechanism continue to pose a serious threat to communities who
are already under economic siege. However, these areas are endowed with wide range of rare, endemic
plant and animal species, which require innovative conservation approaches including the use of
economic instruments and active stakeholder participation. Various interventions have been initiated to
link sustainable natural resource utilization, poverty alleviation, wealth creation and biodiversity
conservation. The Economic Recovery strategy for wealth and employment creation 2003 – 2007
(ERSWEC) for Kenya, state that also non-timber forest products play a major role for local villages
specially women, these include Aloe bitter gum and ethnobotanicals. Major aloe gum producing districts
have been Baringo, Samburu, Laikipia, Taita-Taveta and West Pokot. Out of the 450 species of
indigenous aloe in southern and eastern Africa and Madagascar, 22 Aloe species are listed in CITES
Appendix I with the remainder of the genus listed in CITES Appendix II. In Kenya, about 59 types have
been identified, Aloe turkanensis, Aloe secundiflora and Aloe scabrifolia are the main commercial species
in Kenya, harvested for Aloe gum. Aloe is also used in rangelands rehabilitation, commonly as a living
fence, and as livestock fodder in dry seasons. (Extracts from the SNV “Sustainable Utilization of Aloe Resources in the
Drylands” study).

1.3 Commercialisation background
CITES, managed by KWS, required that all export and importation of aloe products, or derivative is
licensed. In support of this the Kenya government has brought about an Act to protect and guide wildlife
conservation and management, the Wildlife Conservation and Management Act (Section 67 Cap376),
under which is a licensing system, now a statutory requirement for all aloe commercialisation activities. To
provide a baseline to facilitate the licensing process, SNV, in 2005, undertook a resource inventory,
mapping and quantification of commercial Aloes in 6 specific zones of Kenya through ground
reconnaissance, GPS and remote sensing mapping and conventional plant inventory were undertaken.
Aloe gels and bitters are mainly used in pharmaceutical industries; aloe gel is the most trade component
of the aloe plant in the global value. Most of the Aloes are exploited from the wild, its only Aloe
barbedensis, not indigenous to Kenya, which is under cultivation.

Wild harvesting poses many threats, ranging from unsustainable exploitation, to environmental
instabilities, which lead to lose of species. There are little efforts towards establishing resources
availability, which need to be scale up, to enable planning for sustainable exploitation. There are
commercial Aloe activities in Baringo, Laikipia, Samburu, Taita, Kwale, West Pokot, Marsabit, Moyale and
Wajir. These are some of the poorest districts in the region.

The growth in the export market for natural products and extracts from Africa has been limited more by
lack of supply and problems in market access than lack of demand. Main factors limiting supply are:
    • Investment finance limitations and lack of credit
    • Poor product quality and lack of expertise in serving a market - no or little access to training and
         extension support
    • Insufficient economies of scale (i.e. the high per unit cost of dealing in small quantities).
    • Cost of and access to suitable packaging materials and quality analysis
    • Lack of market compliance (standards and regulations).
    • High processing, transport and freight costs.

Susan Wren March 08. LWF, Kenya                                                                                      8
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


1.4 Policy lead conservation tools

Domestication: In light of the CITES the development of community propagation and cultivation
schemes for the Aloe species is now encouraged and supported by some development agencies as a
strategy to diverse commercial pressure from wild populations to sustainable plantations. Cultivation and
propagation guidelines for Aloe species are being developed by KWS.

Sustainable Wild harvest: There is intention that a certification schemes for sustainably wild harvest of
cultivated plants is developed, supported and promoted as an incentive for CITES compliance.
Sustainable wild harvest can also be certified organic under the EU ISO65 standards, and by the FSC
NTFP component. Sustainable wild harvesting protocols and monitoring (also pref certification
endorsement) must be established before accepted under any aloe commercialisation initiative.
However, compared to most regions there has been little evidence of indiscriminate harvesting in Laikipia,
although aloes are challenges by other issues such as grazing pressure and land use change.

1.5 Commercialisation challenges currently hindering aloe enterprise
Historically and to this day the exploitation of aloe is crude and the returns to the harvesters are low,
being based almost solely on the trading of aloe sap or the extracted aloe gum, for which there is poor
returns to the harvesters at the bottoms of the chain provides very little incentive for rural communities to
manage the indigenous aloe. The traders also have little incentive to handle and process the gum to
preserve its quality.

There is very little domestication of aloe practiced within Kenya. There is also little incentive for this
practice if commercialisation is based on the sap alone, at best achieve return of just under 6,000ksh/acre
after 3 to 4 years. Poor access to sufficient technical assistance/knowledge to successfully develop and
manage the aloe plantations, and to process attractive aloe products is a fundamental problem area.

There is not enough supply to develop a natural product range that can supply wider markets than those
directly within the villages. Due to the poor extraction methods, the aloe formulations have less than 1%
aloe content, thus having no impact on conservation of the species, encouraging the up-take of aloe as a
land management tool and in providing income generation options from any aloe species. Fundamental to
aloe scale-up initiative is the improvement in the skills and investment capacity of the processing and
value addition of aloe extracts to increase market opportunities and returns.

1.6 Summarising the learning points
• Current commercialisation of the indigenous aloe sps in Kenya is entirely based on the sap, crudely
    processed into gum, and in some case as liquid sap used in product formulations. This results in;
    (i)       a very low value market value as a non-standardised (aloin content) aloe gum, and
    (ii)      a processed bodycare product containing minuet quantities of aloe extract (as sap does not
              naturally combine well with other ingredients), poorly formulated, packaged and promoted
    Therefore, these current commercial activities do not provide a very attractive incentive to drive
    forward ‘conservation through sustainable utilisation’ and ‘development through trade’ of the
    indigenous aloes of Kenya.
• There has been no investment into the processing of aloe, above the crude extraction of aloe gum. It
    is therefore evident that feasibility studies and business plans have not been carried out of the start of
    all of the existing aloe commercialisation initiatives/projects and programmes.
• Lack of clear marketing and business management strategy within most aloe enterprise initiatives
    also indicates the lack of this first vital stage in developing any business
• Several examples have illustrated that the development of stakeholder own companies have been
    badly designed and causing, in the case of the EU funded Baringo project ownership problem,
    suspicion among interested parties and withdrawal of key partners has collapsed the project.
• The resource maps developed in Baringo for the EU aloe commercialisation initiative and by SNV
    have provided the baseline information for a feasibility study and business plan as well as the
    foundation for sustainability protocols. This activity will need to be replicated in all areas where
    indigenous aloe species are to be harvested.


Susan Wren March 08. LWF, Kenya                                                                                 9
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


•   Wild harvesting of aloe species has been mostly destructive. The licensing requirements now in place
    provide only a policing framework and a licensing facility
•   The domestication of aloe has been carried out on a very small scale and the gross margin per
    hectare has not provided a sufficient enough incentive for others to choose aloe cultivation as a
    preferred option over traditional crops.
•   All groups complain of poor access to markets and market information. It therefore indicated the lack
    of planning (feasibility and business) before the enterprises were developed, and lack of
    understanding of the market leading to poor product development and thus, lack of markets.
•   There is no quality certification scheme in Kenya for aloe products, such as the IASC (international
    Aloe Science Council), despite the initial interest (during the development of the licensing scheme)
    shown by KEFI and the members of the Aloe Working Group to develop the Kenyan Aloe Science
    Council.
•   Most of the aloe producer groups have no or little management capacity and business skills, leading
    to poor business development and lack of market opportunities (ability to successfully serve a market
    with consistent product quality and supply).
•   Aloe plays an important role in soil erosion control, stabilising the soil making it possible for
    establishment of other vegetation and thus contributing to restoring degraded lands.

1.7 Aloe commercialisation in Laikipia
Presently in Laikipia there are no large-scale commercial actors/players, although village level to medium
scale industrial enterprises is developing slowly in some parts. LAB, Laikipia Aloe Bio-enterprise Project,
has given rise to the start of aloe commercialisation in Laikipia. Maria Dodds, a land owner and farmer in
the Laikipia district, has developed a substantial nursery of the indigenous species found within Kenya.
She sells the planting material to the producer groups. The formation and development of commercial
aloe enterprises with rural communities in the Laikipia was also initiated and assisted by the LWF under
the LAB project: Rumuruti Aloe Group, Withare Aloe Vera Group, Koija Aloe Project, Kieni Aloe Plantation
Group (KAPG) and Tigithi Pilot Aloe Group that are processing and retailing aloe based bodycare and
health care products on a small scale to local markets. These projects have made some impact in
stimulating increased awareness of the usefulness and potential for commercialisation of aloe, although,
due to poor extraction methodology the quantity of aloe extract used in these products is insignificant and
resulting in little incentive to manage the Aloe species. Although LWF is successfully encouraging the up-
take of aloe panting for rangeland rehabilitation.

1.8 Harnessing aloe scale-up opportunities in Laikipia
Clear steps are required to develop aloe businesses in Laikipia to significantly supplement Laikipia men
and women’s income and including ways of mitigating negative ecological impacts of increasing aloe
based businesses. On the basis of analysis of this new sub sector, including a broad review of the
available capacities in public institutions and private sector players, the modalities of this programme
should be discussed in a stakeholders workshop, and the task of developing the aloes industry in Laikipia
should be agreed, time-framed and an action plan established. These areas can then be addresses
through development and stakeholder commitment, and public and private partnerships.

The proposed interventions and product development strategies will be necessary in order that
commercial aloe production and processing becomes a viable and attractive incentive for commercially
participation and sustainable management of the species. The following are indication of the primary
areas:

Producer groups and partnerships: Establishment and structuring of strong commercial outgrowers/
small holder producer groups is fundamental for the scaling up of aloe commercialisation in Laikipia. As
this commercial development requires the collective input of the private sector, development agencies,
research institutes and government, these partnerships must be formed on clear grounds at the on-set of
the commercialisation initiative, and bounded by MOUs/MOAs. The need for a pilot phase is clear, when
analysis previous experiences (Baringo, BIOP etc), to develop the relationships and ownerships,
harnessing professional financial and legal advice, participatory involvement of all parties in designing
and building the enterprise, etc.


Susan Wren March 08. LWF, Kenya                                                                         10
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia



The learning points extracted with the analysis of the other aloe groups in Kenya indicate the strong need
for formal training and on-going extension support to bring about good organisational management and
enable adequate recording systems to provide transparency and traceability for buyers, and compliance
to certification standards and financial lending organisations.

Domestication of the aloe resource: The poor returns from aloe cultivation can be improved though;
   (i)    introduction of strong planting material from commercial nurseries
   (ii)   training in the improved techniques of production
   (iii)  increase in the value of the raw harvested material through improvement in the harvesting,
          handling and processing; i.e in the supply chain structure and processing facilities (correct
          equipment, depot centres, central processing centre, with quality and certification protocols)

Scaling up aloe plantations to increase the volume of the resource will enable market sustainability (as
well as conservation of the species), and will lead to increasing market penetration at the
national/regional/international level. Training will be necessary on improved production practice, and
learning visits to other commercial small-scale producers plantation in Kenya, Uganda and Tanzania.
Planting materials should be supplied from licensed nurseries in Laikipia, such as the one already existing
operated by Maria Dodds.

Demonstration plots exist in some areas. Developing these and others (more strategically placed) to
include aloe as a land-use tools together with cropping/grassland management can promote another
incentive for communities to sustainably utilise the indigenous aloe sps.

Sustainable wild harvesting. As policy – licensing is the only mechanism established at this point to
manage and control wild harvesting of aloe sps, it is therefore necessary that this is supported by the
developing the following steps:
   (i)      Sustainability protocols,
   (ii)     Preferably endorsed through external certification (providing cash incentives through better
            market advantage and higher price returns)
   (iii)    Training and extension provided by interested commercial partners, NGOs and associations
            on the methodology of sustainable wild harvest,
   (iv)     Organizational development of producer groups
   (v)      Operational manual should be designed in the local languages, as well as in English, and
            graphical material highlighting ‘good’ and ‘bad’ practice for collection, processing and other
            factors along the supply chain.

Certification – non physical value-addition. Obtaining organic certification for products for the
international marketplace is a viable and sensibly option. It does require good organization and costs, and
the transition period of 2-3 years may present a hurdle, although achieving organic certification of
indigenous resource can take less than one year. Pre-certification support is required to organise organic
compliance measures and sustainable wild harvest protocols.

The Internal Control System (ICS) is a tool, now a statutory requirement, for organic certification of
producer groups. The design of the ICS is very similar to that of a functional supply chain. The pyramid
structure methodology of mobilizing information regarding the product from the ground to the
marketplace, to provide sound traceability and transparency, is common to both. Training and guidance
will be necessary in ICS development and management for the producer groups /CBOs/co-operatives.

Processing: Species determination and testing for active ingredients in the selected commercial varieties
should be conducted at the early course. Training and specialist input to bring about capacity
development in semi-processed, full processing, packaging and presentation to finished retail ready aloe
products stage, is necessary to maximise returns to the communities. This can be focused initially at the
local and national markets. Semi-processed aloe product can then be developed for international markets
to the market, once statutory standards and the buyer specifications can be consistently and successfully
met. Setting up of a local processing and packing centre in the locality will require grant aid or loan

Susan Wren March 08. LWF, Kenya                                                                          11
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


facilities. Processing for international market should include training and extension support in all
parameters concerning traceability and quality control. Third party verification of the aloe content and
quality, to endorse the health claim of the products, should be developed with a labelling scheme. This
can also be conducted through the standard organic certification (ISO65) processes, which can be
developed through the assistance of KOAN (Kenya organic Agriculture Network).

Micro-credit: A revolving fund/interest will provide free loan and enable buying capital for the
communities to buy the season’s raw materials and also the necessary processing inputs at a reasonable
price. Mico-credit finance could be grant aided and professionally managed by a micro-credit
bank/institution. Micro-banking systems can be facilitated through the development of a shareholder
company where dividends from profits can be sent direct to the shareholders micro-bank accounts.
Micro-banking facility can also operate independently, providing there is sufficient evidence to show that
there is enough financial investment capacity within the communities in these rural areas.

Branding and Marketing: For the national market, a promotional campaign may be necessary to
develop awareness of the value and health properties of indigenous aloes. In order to enable the
communities to make the necessary capacity building, to maintain practical and institutional history, to
govern and maintain the sustainable wild harvesting protocols and certification, and to gain bargaining
power, it will be necessary to create Aloes (Collectors and Processors) community based organisations
The empowerment of these business focused groups in these areas above must take place together with
assistance in gaining market information and linkages. The development of supportive linkages with
commercial partners can be guided and assisted through the use of the MOA (Memorandum of
Agreement). For additional governance, management capacity and security, such partnerships can be set
up as a tripartite agreement; i.e between the producer groups/CBO/Co-operatives, the development
partner and the commercial partner.

To further increase competitive advantage, branding is important, i.e an interesting and provocative
profile of the production, beneficiaries and incomes generation story should be developed as a central
theme to the promotion and marketing approach, and attractively presented in the publicity and marketing
materials. This could include aspects of community trade/fairtrade (fairtrade certification), sustainable
harvest, (and organic certification) the positive characteristics of production and processing
methodologies that enable the involvement of women and the less advantaged members of rural
communities, etc. Also include complete product specifications, information on quality assurance.
Developing website marketing capacity will provide a global facility for promoting the’ feel good factor’ of
the nature of this business approach.

Trading structure/s: Once the feasibility and business planning stage has been completed, a forum to
present the findings and to agree a way forward should be held with all the stakeholders
concerned/interested in the commercialisation of the indigenous aloe sps in Laikipia. From this point
forward, the various potential trading structures have a secure position to take form. These potential
trading structures could include the following:
    (i)      Commercial operator and outgrower schemes
    (ii)     Small individual aloe enterprises/companies serving local and nationals markets
    (iii)    Small holder owned trading company (purchasing from the producers/harvesters and
             semi/fully processing aloe products)
    (iv)     Trust structure with multiple investors and shareholders, vertically integrated from purchase
             of the raw stabilised extract to the finished retailed product.

Role of LWF : There are a number a ways that LWF can support and assist this process, some of which
are indicated in 12.4. As the sustainable management through commercialization of indigenous species
has now been confirmed as a legitimate part of the LWF remit, it role in such initiatives can now be
considered more deeply. The response from the stakeholders forum will provide an indication of what is
required from the various existing private, public and development partners in Laikipia, and also provide a
platform for LWF to assert its position in overseeing and providing services to these developments.



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            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


1. Work Plan

1.1 Goals/objectives

The objective of the study is to evaluate the existing uses (commercial and non commercial) of
indigenous aloes in Laikipia, identify existing or new uses with the most viable commercial potential and
identify ways of scaling up these uses.

1.2 Outputs
The output of this consultancy will be:
(i) A comprehensive report on the information gathered as per the TORs including an estimation of the he
economic returns of developing and/or scaling up the production of selected products. Aspects include:
(ii) Aloe products having good commercial potential,
Evaluation of the existing and new uses of the indigenous aloe species according to viable commercial
potential
(iii) Guidelines for scaling up those aloe species with the best commercial and conservation supportive
potential.
(iv) Broad market analysis conducted, identifying supply and demand trends at the global, regional and
national levels
(v) Detailed analysis of aloe bio-enterprise, exploring the capacity of Laikipia’s men and women to
develop the local markets and to break into other specific markets, taking into consideration the
environmental impacts of developing or scaling up aloe based business in Laikipia.
Recommendations will be provided on the best economic and sustainable use of aloe species selected
and on the steps necessary to develop viable aloe based enterprises in Laikipia.

1.3 Methodology
The consultant will be expected to base information on interviews and secondary information. He/she will
work closely with the Laikipia Wildlife Forum staff (especially the Community Liaison Officers) and with
the Kenya Aloe Working Group.

A. Collect and compile background information
• Review existing information on indigenous aloes, on their attributes, on the legal framework, on their
    conservation and commercialisation.
• Investigate existing commercial and non commercial uses of aloes in Laikipia through field visits and
    interviews with existing stakeholders and support projects.

B. Analyse of global/regional (East Africa)/national markets
This will include information on:
• The range of products used and supplied from aloes (indigenous to Laikipia) at the global/national
    market levels
• Packaging/conditioning
• Supply structure - main suppliers in Kenya, East Africa, Global and their characteristics (large scale,
    small scale), location
• Demand trends per product
• Demand structure – main buyers in Kenya, East Africa, Global and their characteristics (large scale,
    small scale), location
• Capacity of the market to absorb aloe products from Laikipia
• Price trends

C. Local level aloe market and potential for development and/or scaling up of activities
Information will be provided on:
• Existing aloe products supply structure and capacity, access to market, know how etc
• Existing demand for aloe products, structure
• Level of interest in developing aloe based business.


Susan Wren March 08. LWF, Kenya                                                                         13
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


•   Identify market segments in which Laikipia men and women could potentially break into and identify
    which existing commercial aloe uses could be scaled up effectively
•   Analyse the economic potential, for community groups, of products with the most commercial
    potential– investment required, and potential returns of the development and/or the scaling up of aloe
    business.
•   Identify constraints to breaking into markets proposed and/or to scaling up profitable aloe uses

D. Recommendations
• Suggest ways to alleviate the constraints identified in C. in a realistic timeframe
• As a result of the information gathered in B. provide information and recommendations on the
    potential for scaling up existing commercial uses and/or developing new commercial uses of
    indigenous aloes.
• Identify and propose steps to develop new and/or scale up existing Laikipia based aloe businesses
    for products with the best commercial potential, including the detailed consideration of out growers
    schemes
• Identify potential investors/partners to support the development or scaling up of a local business
• Investigate eco-certifications and fair-trade potential

E. Potential ecological and conservation impacts of developing or scaling up Laikipia aloe based
business.
Investigate positive and negative impacts of developing and/or scaling commercial uses of identified
indigenous aloes from a conservation/ecological point of view (consider wild harvesting, plantations).
Recommend ways to mitigate the negative impacts.

F. Guidelines
Provide guidelines on commercialisation of aloe products to sustainably supplement Laikipia men and
women’s income, taking into consideration the conservation objectives of the Laikipia Wildlife Forum




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             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


2. Desk Review Summary
Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia

2.1 Background to Aloe Enterprise Development in Laikipia

2.1.1 Laikipia District
The Rift Valley district of Laikipia contains seven administrative divisions and covers an area of 9,693
square kms. It borders the Samburu district, Isiolo, Meru, Nyandarua, Nakuru, Koibatek and Baringo.
Laikipia, ranging from 1000m to 2600m asl, remains largely as uncultivated land, prized by the tourist
industry for its natural resources and wildlife. 20% of the land cover is a high and medium potential land
mainly for agriculture and the rest mainly non-agricultural land. Livestock production is the most important
activity, with about half of the land area under ranching activities (large scale, group ranches) and
pastoralist. Population in the district is currently around 450,000.

2.1.2 The Laikipia Wildlife Forum (LWF) is a membership based organisation with the mission to
conserve the integrity of the Laikipia ecosystem by creatively managing its natural resources to improve
the livelihood of its people. The LWF is also representative of its resident stakeholders and seeks to
achieve a balance between the interests of these residents and the long term future of the district’s
natural resources. The Laikipia ecosystem is highly diverse and rich in biodiversity. LWF has been in
biodiversity conservation in Laikipia for the last 12 years. The main objective of the organisation is to
promote conservation of wildlife outside protected areas

LWF’s partners in biodiversity conservation within Laikipia include:
  • Kenya Wildlife Service (KWS)
  • Laikipia Wildlife Forum (LWF)
  • African Wildlife Foundation (AWF)
  • International Centre for Insect Physiology and Ecology (ICIPE)
  • Kenya Forestry Research Institute (KEFRI)
  • Laikipia Community representation
  • Private sector partners
  • Co-opted Enterprise development and Financing specialists

The LWF has evaluated several different viable commercial bio-enterprise options available to the
communities of Laikipia to supplement income generating activities. Laikipia Wildlife Forum is interested
in the viable options available to both supplement women and men’s income. It this context LWF was the
lead agency in instigating and managing the Laikipia Aloe Bio-Enterprise Project, described below.

2.1.3 Laikipia Aloe Bio-Enterprise Project (LAB):
This initiative was focused on the Conservation through Cultivation and Domestication of East African
Medicinal Plants. Its aim was to create awareness amongst 6,000 rural households in semi-arid Laikipia
on propagation, production and sustainable utilization of naturally occurring aloe species for the benefit of
sustaining the endangered species from extinction and use it as a buffer crop for the wildlife prone
settlement areas thus arresting the existing conflicts. The main activities were to promote aloe enterprise
as a conservation lead livelihoods option for the communities living in wildlife dispersal areas (former
migratory routes and corridors), through sustainable utilisation of the indigenous and endemic medicinal
plants species and improved and sustainable production techniques. The project was based within the
semi-arid parts of Laikipia district mainly pastoral areas in Mukogodo and Rumuruti. It also promoted aloe
as a buffer crop in the newly settled areas, particularly those that neighbour wildlife rich regions and
wildlife tolerant establishment like ranches. These include: Koija, Lamuria, Sirima, Salama, Ol Moran etc.

This project was suspended due to the government clamp down on aloe exploitation. Instead, it took an
active role in the Kenya Aloe Working Group, explained below in 2.1.5.




Susan Wren March 08. LWF, Kenya                                                                           15
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


2.1.4 CITES and the Kenyan Government
Please refer to sections 2.4.2 and 2.4.3

2.1.5 Kenya Aloe Working Group (KAWG):
Aloes stakeholders in Kenya formed a working group which became the ‘Kenya Aloe Working Group’,
launched in 2004 to guide in the formalisation of aloe production as well as facilitating sustainable
harvesting and processing for commercialisation, and spearhead the process of regularising the aloes
sub-sector. The Kenya Wildlife Service was assigned the regulatory responsibility, in addition to its
mandate to monitor species listed in under CITES. Trading in endangered species, including Aloes from
the wild, is restricted unless certification is granted by KWS and NMK. The basic requirements include an
inventory, status and mapping of the resource before an assessment can be made by the authority and
certification issued, if deemed suitable, on the basis of total volume of harvest over a given year. An
overview of the Wildlife Conservation and Management Act, below, provides an indication of the current
statutory requirements for the commercialisation of aloe species in Kenya. The Kenya Aloe Working
Group continues to co-ordinate activities related to the Aloe sub-sector in Kenya, with the Secretariat
hosted and supported by LWF. The Secretariat works with grassroots community groups in aloe related
businesses in an attempt to uplifting the poor and marginalized rural communities through aloe based
enterprise.

2.1.6 SNV Sustainable Utilization of Aloe Resources in the Drylands Study
One of the initial actions to guide proper exploitation was to establish the resource type, availability and
quantities of indigenous aloe in Kenya. To this affect, SNV supported scientists from KEFRI, KWS, NMK
and DRSRS to undertake Aloe resource quantification and mapping in Samburu, Laikipia, Marsabit,
Moyale, Wajir, Isiolo and West Pokot to establish available commercial Aloes.

The SNV “Sustainable Utilization of Aloe Resources in the Drylands” study is an excellent piece of work,
and provides an important background to this study. Reference is made to the study in relevant parts of
this report. This study has resulted in a substantial profile of aloe utilisation and exploitation in 6 regions
of Kenya, focusing on the distribution and density of the indigenous species. Global Positioning System
(GPS) was employed to register a position of every cluster sampled of aloe. Approximately 129 million
plants of Aloe species were counted within the surveyed area. Of these plants, 83% were A. secundiflora,
16.9% A. scabrifolia and the rest 0.1%. West Pokot recorded the highest quantities of A. secundiflora
followed by Laikipia and Isiolo district while Samburu and Isiolo recorded high quantities of A. scabrifolia.
The other species were in small quantities in the districts of their endemism. However, A. megalocantha
and A.rivae were of low quantities and of limited distribution. From the surveyed areas of Kacheliba,
Alale, and Kasey, the highest concentration and uniformly wide distribution of A. secundiflora was found.
This variety constitutes the main source of Aloe gum in the country. Information obtained by the SNV
consultants, during a series of interviews with the local community and dealers in the above divisions,
indicates that about 100 tones per year of gum aloe are being exported from these divisions alone.

2.1.7 Summary of the main actors

Individual small scale farmers with individual land parcels
Individual small scale farmer’s management their land parcels communally. Producer groups in Turkana,
Baringo Arabuka, Samburu as well as Laikipia have been organised into groups and associations by
NGOs like Practical Action, institutions such as ICIPE and the Laikipia Wildlife Forum. This has mainly
been developed in response to conservation strategy to preserve indigenous species from degradation -
eventual extinction, and in more general terms to provide alternative sustainable NTFP enterpriser to
traditional less sustainable livelihoods.

Group ranch pastoral communities managing their biodiversity resources separately

LWF- A member’s organization pursuing the establishment the bio-enterprise for the benefit of its
members and for its positive effects on the environment and in sustaining the integrity of the local
ecosystem. Lead agency.



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            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


KEFRI- A research institution committed to development of non- wood forest products for the benefits of
rural communities and general economical development.

ICIPE- Bio Prospecting department who are committed to indulging in products development research
that would enable rural communities add value to available resources by converting them to nature based
products that can be marketed for their own benefit and income.

KWS- A regulatory arm of the government that deals with wildlife (animals and plants) in ensuring
conservation, regulated utilization and trading as well as developing appropriate policy framework.

AWF- AWF’s Conservation Service Center (CSC) enterprise teams would assist with marketing and
private sector deal structuring locally and internationally.

Kenya aloe working group (2004) Formed to address the barriers in trade with partners and markets
that require accredited certification by an aloe regulating body. It was proposed at that time that a
‘Kenyan Aloe Science Association’ (KASA) is developed to oversee the conservation, regulation and
quality control of aloe products within Kenya. However, this association has so far not been formally
instigated.
Private sector partners- mainly through including those in marketing and trading of aloe raw materials
and finished products.

Large Scale Ranches: Private development with plenty of naturally growing aloe plants as well as
planted ones. These would link up with the project in adding synergy to the community production system
though will not be catered for by the project or its finances.

Research studies/organizations: Being conducted by Mpala Research Centre and California Davis
University. Will help quantify impact of usage of aloe plants for range restoration and prevention of
erosion as well as growth characteristics though not financed by this project.

2.1.8 Summary of the Supply Chain Actors and Functions

Actor                             Function

Agro-Pastoralist/ Collector           o   Collect ‘wild’ aloes
                                      o   Dry and store
                                      o   Deliver either to supplier or buyer
Small scale plantation farmers        o   Manage far
                                      o   Supervise transplantation of wild and cultivated plants
                                      o   Dry and store plants
                                      o   Harvest fresh plants for sale
Local middleman                       o   Grades and weigh dried plant products
                                      o   Pay cash on delivery
                                      o   Transport to supplier ( fresh and dried)
Supplier                              o   Collect fresh and dried products form farmers & collectors
                                      o   Pay cash on delivery
                                      o   Further dry, sort and grade products
                                      o   Store and/or deliver to exporters
Local farmers/pastoralists            o   Collect gels and aloin
Women/community groups                o   Produce simple soaps and other products
                                      o   Market locally
Exporter                              o   Further process dried leaves
                                      o   Phyto-sanitary, packaging and other documentation
                                      o   Sell to specific market



Susan Wren March 08. LWF, Kenya                                                                        17
                  Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


2.2 International Aloe Commercialisation

2.2.1 Description
Aloe is not a cactus plant as widely believed, but rather a member of the lily family. There are about 360
species of aloe plants known and recorded. They thrive in hot arid areas and are widely scattered from
the Mediterranean Sea, Middle East, Africa, China, Japan, Mexico and the southern U.S.A. Only a few of
these species are scientifically recorded for their medicinal properties; Aloe Vera (aloe barbadensis) is the
primary species selected for commercial production across the world, for its potency and strong growth
history. Others include: aloe arborescens, aloe plicatilis, aloe vahombe, aloe saponaria, aloe africana,
aloe ferox and aloe perryi. The aloe is a perennial plant with turgid green leaves joined at the stem in a
rosette pattern.

In the international market, the pharmaceutical use of gum aloin is for the manufacture of laxatives and
other medicines. The gel can be used as an input into in the production of soaps and multiple cosmetics.
It can also be processed into a healthy drink that is very beneficial for sufferers of diabetes, high blood
pressure, irritable bowel syndrome and the symptoms associated with HIV/AIDS.

Research undertaken by the United States Food and Drug Administration (USFDA) in 1994 of aloe
barbadensis resulted in the registration of the active ingredient thought be an immune system builder.
Large scale commercial production of the juice requires an initial high capital input and knowledge of
manufacturing production technology including traceability - but it can be produced at a ‘low tech’ level
suitable for rural based bio-enterprise.

The gel can also be dried and powdered to a required mesh size to produce crystals that can be traded
on the international market or sold to manufacturers in the sub-region. The gel contains 99% water and
1% polysaccharide (the active ingredient). The drying and powdering of the leaves is a method of
concentrating the active ingredient and reducing freight costs for the transportation of the resource that
can be reconstituted by the buyers or importers at their required strength.

2.2.2 Chemistry:
Slicing the leaf reveals the outer walls of the epidermis 3 covered with thick cuticles. Beneath the
epidermis 3 is the mesophyll which is differentiated into chlorenchyma cells and thinner walled cells
known as parenchyma. The parenchyma cells harbor a transparent mucilaginous jelly 1. The vascular
bundles 2 with inner bundle sheath cells contain the yellow sap having laxative properties and are
sandwiched between the two major cells. The crystals of calcium oxalate, produced as a metabolic by-
product in plant cells, are found mostly at the central portion of the leaf. Aloe contains two major liquid
sources, a yellow latex (exudates) and the clear gel (mucilage). It is composed mainly of aloin, aloe-
emodin and phenols. A number of phenolics, including anthraguinones and their glycosides, are known to
be pharmaceutically active1. The mucilaginous jelly from the parenchyma cells of the plant is referred to
as aloe gel. There are generally no anthraguinones to decompose and cause discoloration of the gel
unless the gel is contaminated by an improper processing technique. Aloe vera gel is about 98.5% by
weight water. More than 60% of the total solid is made up of polysaccharides of carbohydrate origin.
Organic acids and inorganic compounds (calcium oxalate etc), account for the remainder of the solid.

The U.S. Pharmacopoeia describes the yellow sap portion of aloes, used in medicinal preparations, but
not the mucilage. The fresh unpreserved gel is about 98.5-99.2 percent water. The total solid that remains
after the water has been removed ranges from 0.8 to 1.5 percent. The major constituents of the solid
comprise mucilage, sugars, fibre, proteins, ash, fats, aloin and resin. Depending on how the leaves are
processed, mucilage and sugars are the major components of the dehydrated gel. The sugars found are
galactose, glucose, man- nose, rhamnose, xylose and uronic acids. When the parenchyma (the
mucilaginous material in the leaves) of the leaves is removed, this so called "gel-filet" is grinned and the
fibres are removed. An opalescent liquid remains that is commonly called "Aloe Gel" and after
preservation this is the liquid that is used in skin preparations and health drinks. Aloe Vera Gel consists
for 99.3% of water. The remaining 0.7% is the solids that consist for a large part of polysaccharides of the

1
    Bruce, Excelsa 5_: 57 - 68 (1975); Suga et al., Cosmetic and Toiletries, 98: 105 - 108 (1983).


Susan Wren March 08. LWF, Kenya                                                                              18
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


glucose and mannose type. Together with the enzymes and amino-acids in the gel they give the gel the
special properties as a skin care product. The gel stimulates cell growth and as such enhances the
restoration of damaged skin. It moisturizes the skin because it has a water holding capacity. This moist on
the skin also has a cooling effect. As a drink it protects the mucous membrane of the stomach especially
when irritated or damaged.

Presently, Kenya is the main source of aloe extracts traded internationally from the East African region.
Its products: sap, bitters and crystalline jelly. There are few species similar to the commercial aloe
barbadensis (aloe vera) used globally for mass production. The most suitable commercial species for
bodycare and cosmetic industry are those with similar characteristics; a maximum of inner leaf gel.
Certain species such as aloe secundaflora contains very little gel, even at the height of the rainy season,
but are commercially interesting for the harvesting gum aloin. Out of the identified species, aloe
gramanicola has the most similar characteristics to the commercially important aloe barbadensis Miller,
used globally for mass production due to its high inner leaf gel content.

2.2.3 Historical context:
Whole leaves, exudates and fresh gels of aloe plants have been used for a variety of human afflictions.
Evidence of "their use as a medicinal remedy can be traced to the Egyptians of 400 BC. Aloe extracts
were used to embalm the dead as well as to protect the embalmers from the • death- causing agent.
Other early civilizations used aloe extracts for skin care, relieving insect stings and bites, treating
scratches, wound healing, hair loss, as a purgative and for ulcerated skin. It was the traditional medicine
of many cultures as an anthelmintic, cathartic, stomachic, and was used inter alia for leprosy, burns and
allergic conditions. The species particularly famed for its long and established historical use of for its
"curative" or "healing qualities" is aloe vera, and the subject of numerous books and articles meeting
scientific standards. Organizations such as the Aloe Vera Council and recognized medical institutions
through publications and case-histories of physicians, veterinarians and other scientists have given
credence to the "aloe phenomenon". Aloe vera has been featured extensively in the area of dermatology,
especially for treating radiation caused skin conditions. Public interest in Aloe has grown quickly, and now
there is a considerable amount of research into the various components of Aloe to find out more about
their properties and to characterize these components so that more specific research can provide clues to
the "magic" that is attributed to Aloe Vera. Research undertaken by the United States Food and Drug
Administration (USFDA) in 1994 resulted in the registration of the active ingredient found in the aloe vera
plant, thought be an immune system builder.

The commercial development of aloe as a health product started in the mid 1800, the harvesting of the
Aloe Vera, in those days only for the export of the raw material for laxatives. At the end of the fifties, new,
synthetic laxatives replaced the Aloes worldwide. The mass retailing of Aloe Vera Gel began 50's, has
gained respect as a commodity used as a base for nutritional drinks, as a moisturizer, and a healing
agent in cosmetics and OTC drugs.

2.2.4 Health benefits/claims: For centuries, the gel of the aloe vera plant has been used as a soothing
topical remedy for minor burns and wounds. It continues to be popular for treating sunburns and other
first-degree burns because it appears to speed healing. In addition, aloe vera gel is used to treat minor
surface irritations, to reduce psoriasis symptoms, to lessen the painful effects of shingles, and to shrink
warts, and a reputation as a beauty aid. Various research studies are underway to explore the potential of
aloe vera components to boost immunity and combat the HIV virus, and to treat certain types of cancer
(particularly leukemia). It may even have a role to play in managing diabetes.

Aloe Gel can be used both internally and externally. It is obtained from the plants pulp containing
approximately 200 biologically active substances which can be broken down into the following groups:

    •   Vitamins - Antioxidants, D and B12
    •   Minerals - Trace
    •   Enzymes - Several different types
    •   Sugars - Immune system and detoxification

Susan Wren March 08. LWF, Kenya                                                                              19
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


    •   Anthraquinones - Gastrointestinal absorption, pain relief, anti bacterial, anti viral.
    •   Lignin - Helps other constituents penetrate skin.
    •   Saponins - Soapy substance, cleansing, anti bacterial / microbial.
    •   Salicylic Acids - Asprin like, anti inflammatory.
    •   Fatty Acids - Anti inflammatory

2.2.5 Commercial cultivation
Large scale production of aloe is predominantly of aloe barbedensis (aloe vera), on large professionally
managed farms. The most productive plantations are found in southern Texas, Arizona, Florida, and
Mexico. The plants are monitored and sampled at regular intervals throughout the year and checked for
any signs of stress. Specially designed irrigation systems and the latest cultivation techniques are
employed to ensure that the Aloe plants are kept in peak condition.

Aloe Vera can be cultivated on any soil for 'dry land management', sandy loamy soil is the best suited for
it. Aloe Vera is generally propagated by root suckers by carefully digging out without damaging the parent
plant and planting it in the main field. It can also be propagated through rhizome cuttings, By digging out
the rhizomes after the harvest of the crop and making them into 5-6 cm length cuttings with a minimum of
2-3 nodes on them. Then they are rooted in specially prepared sand beds or containers. The plant is
ready for transplanting after the appearance of the first sprouts. The process of cultivating Aloe Vera
involves the following:

    •   The ground is to be carefully prepared to keep free from weeds and the soil is ideally kept ideally
        slightly acidic. The soil should be supplied supplement in the form of ammonium nitrate every
        year.
    •   The plants are set spaced out by 31 inches in rows and between the rows. At that rate, about
        5,000 plants are set per acre. An 8 - 12 inch aloe pop would take about 18 - 24 months to fully
        mature.
    •   An Aloe plant is considered "mature" at approximately three years of age. The mature leaves are
        harvested (every 68 weeks), and one plant yields about 3 leaves each harvest.
    •   Aloe leaves are harvested one leaf at a time and are generally chosen from the outermost edge
        of the plant, then removed by creating an incision at the bottom of the leaf, nearest to the stalk.
    •   The leaves are immediately packed and transported to an on-site processing plant to be prepared
        for stabilization.
    •   A single plant produces the equivalent of one 180-capsule bottle of our whole-leaf aloe vera each
        harvest season. One acre will yield from 30,000 to 75,000 pounds of fresh aloe per year.

The smaller scale cultivation of commercial aloe is mainly found in India and Africa. Here the cultivation
and harvesting practices are similar to that of large scale units, although low-tech in character. However,
most of these smaller scale enterprises are geared at dried gel extract. This is less bio-active (inactive
enzymes), but used widely in retail marketed aloe products.

    •   The leaves are 1 to 2 feet long and are cut without causing damage to the plant, so that it lasts for
        several years.
    •   The crop can be harvested 4 times a year. At the rate of 3 leaves cut from each plant, about 12
        leaves are the harvest per plant per year. On an average, the yield per acre annually is about
        60,000 kg.
    •   The leaves cut off close to the plant are placed immediately, with the cut end downwards, in a V-
        shaped wooden trough of about 4 feet long and 12 to 18 inches deep.
    •   The wooden trough is set on a sharp incline so that the juice, which trickles from the leaves very
        rapidly, flows down its sides, and finally escapes by a hole at its lower end into a vessel placed
        beneath.
    •   It takes about a quarter of an hour to cut leaves enough to fill a trough. The troughs are so
        distributed as to be easily accessible to the cutters.



Susan Wren March 08. LWF, Kenya                                                                           20
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


    •   When the vessels receiving the juice become filled, the latter is removed to a cask or reserved for
        evaporation. This may be done at once, or it may be delayed for weeks or even months. The leaf
        residue is composted and returned to field to feed the crop.
    •   The evaporation is generally conducted in a copper vessel; at the bottom of this is a large ladle,
        into which the impurities sink, and are from time to time removed as the boiling goes on.
    •   As soon as the inspissation has reached the proper point, which is determined solely by the
        experienced eye of the workman, the thickened juice is poured into large into boxes, and allowed
        to harden.

2.2.6 Commercial processing and manufacturing

Latex (aloin) the latex is extracted as a liquid, then dried into a yellow powder. Because it's such a potent
laxative, the latex is not usually used alone but combined with gentler herbs, such as cascara sagrada.
Germany's Commission E approves of using small amounts of aloe vera latex to relieve constipation, but
only for short-term use. The original commercial use of the Aloe plant was in the production of a latex
substance called Aloin, a yellow sap used for many years as a laxative ingredient. This product became
synonymous with the name "Aloe" and recorded in the trade, technical and government literature during
the early 20th century. This terminology created much confusion later when Aloe's other main ingredient,
Aloe Gel, a clear colourless semi-solid gel, was stabilized and marketed. The sap is also used in good
sunscreen and provides the skin with an olive tan colour.

Aloe Gel: The major challenge in processing aloe is collecting and storing its juices without chemically
altering the product. When you cut an aloe leaf, it secretes enzymes that heal the severed tissues, thus
lengthening its usable time. However, after a few hours, these same enzymes also begin the
decomposition process. The best solution for ensuring the maximum biological potency of aloe is to
process, stabilize, and preserve the leaf within 3 to 6 hours of its removal from the plant. A good gel is
created by hand removing the inner fillet of whole Aloe Vera leaves, and then subsequently sending into a
cold pressed production facility. It is a naturally ground product and may contain small pieces of pulp
within the gel. Suitable for food, cosmetic and beverage use.

Specifications                             Microbial
                                                                               Preservatives
    •   Colour- Pale / Translucent             •   Aerobic Plate Count - <10
                                                                                   •   Sodium Benzoate -
    •   Odour- Mild / Characteristic               CFU/G
                                                                                       0.10%
    •   Pesticide residues - should test       •   Mould - <10 CFU/G
                                                                                   •   Potassium Sorbate -
        Negative                               •   Yeast Mould - <10 CFU/G
                                                                                       0.10%
    •   pH - 3.9                               •   Pathogens - Absent
                                                                                   •   Citric Acid - 0.12%


When the whole leaves of the aloe plant are ground up to make a liquid, the juice is 99.52% water and
excess fiber and only 0.48% other ingredients. That means the juice must be filtered and concentrated in
order to maximize the active ingredients. When processed correctly (with the aloin and aloe emodin
removed), the resulting juice has no toxicity and has the same pH as healthy skin.

The gelatinous structure of the gel can form a good protection for the wall of the stomach against
stomach acid especially when irritated or damaged. These molecules can hold water molecules together
and that is one of the reasons that Aloe Vera is such a good moisturizer. Also these molecules are very
nutritious, for instance, for microorganisms. Together with the water holding properties of the
polysaccharides this forms an ideal environment for bacterial contamination. This is the reason that from
the moment the intact leaf has been cut open, the Gel can spoil within a few hours at room temperature. It
is a challenge to preserving the Aloe Vera Gel without losing its properties. Natural preservatives such as
ascorbic acid (vitamin C) and sodium benzoate are necessary if the products are to be retailed, in order to
obtain a reasonable shelf life (12-18 months at least). Sodium benzoate (naturally occurring in nature, i.e
cranberries naturally produce well over the industrial product regulatory limits of this particular chemical



Susan Wren March 08. LWF, Kenya                                                                              21
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


compound) is effective in very low quantities, and is therefore seen as the best and safest method for
preserving aloe juice.

Gel Potency: As well as polysaccharides, aloe contains vitamins B1, B2, B6, C, niacinamide, choline and
18 amino acids, in addition to many other nutritional substances. See Annex 5 for further information. The
activity of the enzymes is used as a measure of the effectiveness of the Gel. Although, this is not an
entirely accurate way of measuring as there are more components than enzymes that account for the
activity of the Gel as a skin care product and health drink. Its potency depends on maximizing both the
number of nutrients and their ability to be biological available to the cells of our bodies


2.3 International Market Characteristics

2.3.1 Natural products market trend
A conservative estimate puts the monetary value of current Global trade in medicinal plants at over US$
60 billion. With the increasing interest in ‘natural’ products across the world and the resultant upsurge in
the demand for medicinal plants, this trade is expected to grow up to US$ 5 trillion by the year 2050.
Aloe gel is said to have a market worth US$20 billion, most of it controlled by the US. Aloe Vera is among
the few medicinal plants that has major market share across the globe, used in the nutraceutical,
cosmeceutical, skin & personal care, health, pharmaceutical, veterinary, functional food and beverage
industries and the agricultural sector.

2.3.2 Retailed aloe products
In the international market, the bulk of aloe material is used for pharmaceutical manufacturing of gum
aloin is for the manufacture of laxatives and other medicines. The gel is used as an input into in the
production of soaps and multiple bodycare and cosmetic products. It is processed as a healthy drink and
marketed for its benefits to sufferers of diabetes, high blood pressure, irritable bowel syndrome and the
symptoms associated with HIV/AIDS.
• Most aloe products retailed in the international market contain "aloe vera extract" (aloe barbedensis).
• Most of these retail products contain low percentage of extract or "reconstituted” aloe vera, this is
     generally much less potent than pure (more than 98%) aloe vera.
• For sunburn preparations, it is necessary that the product contains at least 20% aloe vera.
• Aloe vera latex is available in capsule form, usually in combination with other (and more gentle)
     laxatives.
• The juice product should contain a minimum of 98% aloe vera and does not have any aloin or aloe-
     emoin compounds, the key substances in aloe latex.
• "IASC-certified" seal; it is allowed only on products that contain certified raw ingredients that have
     been processed according to standards set by the International Aloe Science Council, a voluntary
     certification organization.
• Creams and ointments should contain at least 20% aloe

2.3.3 Main commercial extracts
The leaf of the aloe plant consists of three different parts, yellow bitter sap, green peel and white aloe gel.
The bitter sap lies underneath the green peel. The sap drains spontaneously when the leaf is cut. The
inner fleshy portion of the leaf consists of a mucous material, known as aloe gel, which has no bitter taste.
The green skin is also rich in nutrients and fibre.

Gel: It is a thin, clear, jellylike substance that can be squeezed or scraped from the inner part of the
fleshy leaf. This part of the aloe plant is widely marketed for its healing properties, as health supplement
drink, ‘aloe juice’ and as ingredient in skin care products...
• Mucilage penetrant, hypo- Matrix allergenic, moisturizer
• Gel Fillets ulceroprotective, cell stimulative moisturizer, wound healing
• Interstitial natural preservative. Fibers hemostat
• Residual Matrix cell growth stimulant


Susan Wren March 08. LWF, Kenya                                                                             22
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Latex (aloin): Know as sap, aloin, aloe gum, bitters and latex, is taken from specialized cells along the
inner leaf skin (called the pericyclic tubules). It is used in various products that are used both externally
and internally, and has anti bacterial, antiviral and laxative qualities.

•   Sediment laxative, antifungal, antibiological, pesticidal and sunscreen
•   Supernatant mucosal protective action, sunscreen

Outer Rind: The whole sun dried aloe leaves are crushed for aloe tea, or ground into a powder which is
pressed to form fibre tablets.

Other products are made with both the green outer skin and inner gel to enhance the nutrient values of
the product. These products will generally have the word ‘Whole Leaf’ in their name

See Annex 5 for further information.




2.3.4 Retail Product Forms
    • spray
    • lotion
    • liquid
    • gel
    • cream
    • capsule
    • health supplements
    • pesticides
    • insect repellents (outer rind)
    • paper pulp fibre (outer rind)

2.3.5 Global distribution of commercial aloe
The Aloe plant is grown in warm tropical areas and large scale to small holder based commercial
production exists in the United States (Rio Grande Valley of South Texas, Florida and Southern
California), Mexico, the Pacific Rim countries, India, South America, Central America, the Caribbean,
Australia and Africa.

2.3.6 Quality standards and regulation
Aloe Vera Gel, like most natural juices, both fruit and vegetable, is an unstable product when extracted
and is subject to discoloration and spoilage from contamination by microorganisms. The great success of
Aloe as a commodity for use in nutritional foods and cosmetics is due to the proper stabilizing procedures
that enable processors to store and ship the Aloe Gel without fear of spoilage throughout the market
places of the world. Research conducted around the world leaves little doubt that certain biochemical
properties of Aloe will be proven facts. Such attributes as moisturizing and penetrating properties are


Susan Wren March 08. LWF, Kenya                                                                                 23
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


known, but the attributes such as its healing abilities and analgesic action to bacterial activity has not
been clearly defined and documented through properly controlled scientific research and testing. Today,
the Aloe industry has established high ethical standards for businesses and their Aloe products. Through
the International Aloe Science Council, the industry has solidified its dedication to providing the world with
the highest quality Aloe. The wide acceptance of Aloe by society in so many consumer products suggests
that the IASC is moving in the proper direction. The image of Aloe has heightened as a result of this
endorsement, and IASC’s commitment to assist the further growth, research and marketing of quality of
Aloe products.


2.3 Commercialisation of Aloe species in Africa

2.3.1 Background
Aloe species grows wild in large portions of the African continent. There are nearly 420 species of Aloe
within Africa, the continent has, over the years, become the most important sources of biologically active
compounds. Over 130 compounds belonging to different classes including anthrones, chromones,
pyrones, coumarins, alkaloids, glycoproteins, naphthalenes and flavonoids have so far been reported
from the genus. Although many of the reports on Aloe are dominated by Aloe vera and Aloe ferox, there
have also been a number of fruitful phytochemical studies on many other members of the genus.
Given the exponentially growing international demand for several of the aloe species indigenous to Africa,
the commercialisation of Aloe species presents the most readily available and established commercial
opportunity among the various medicinal plants. In addition to the natural abundance of indigenous aloe,
the natural conditions essential for cultivation/domestication of aloe and other high potential medicinal
plants exists in much of the continent. Yet the full potential has not been reaped, due to a lack of the
requisite expertise in the specific techniques of cultivation and processing. Although, the technology is
now accessible to individual and corporate entrepreneurs to make the most of aloe through mainstream
cultivation, most of the aloe extract shipped from the African continent is from wild harvested sources.
Gel production is dominated by companies based in the USA, implying a high research and development
component for any new market entrants. Aloe gum ‘Bitters’ production is far less well organised and few,
if any, manufacturing companies are involved in production and processing, only trading.

2.3.2 Eastern Africa
Tanzania, Uganda and Ethiopia are developing commercial supply of aloe, mostly as gum aloin, but some
of which is processed into finished products and sold on the domestic market. In northern Tanzani there
is a 60 hectares aloe plantation, representing over one million ‘mother’ plants of between two and four
years in age. Juice is processed on site and is sold through a local distribution networks.
There are new development initiatives to sustainably exploit indigenous aloe, know to the author, in
Ethiopia (Borana), Uganda, Tanzania, Rwanda and Kenya.

2.3.3 South Africa
Currently South Africa is the leading producer of Aloe gum from Africa, followed by Kenya. Aloe ferox is
the main source of Aloe gum in South Africa; about 1,000 metric tonnes are exported annually. Exports
are destined for Europe, Asia and North America, with the main importing countries being USA, Japan
and Germany. South Africa mainly exports primary products to manufacturers and re-imports these
finished products for retail. However, South Africa is also the largest supplier of aloe products to the
African market, primarily South Africa but also transported to most other countries on the continent. Aloe
extracts are manufactured as drugs, cosmetics and a health drink, primarily by Golden Products SA
(Golden Life Aloe Vera). Many other aloe species are used in traditional medicines and these include
Aloe lateritia, Aloe rabaiensis and aloe secindifolia.

Trade in Aloe bitter gum is controlled by CITES appendix II, which recommends among others,
sustainable harvesting from the wild through certification mechanisms. A CITES export permit is required
for aloe commercialisation, although there are currently no restrictions on volumes exported. South Africa
has also statutory government guidelines for aloe products in place, as well as quality controls and
certification systems linked to international aloe product standards.


Susan Wren March 08. LWF, Kenya                                                                            24
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Primary production appears to be profitable for landowners and traders, but less so for communities
involved in tapping. Very little value adding is recorded in South Africa. Primary production has low capital
requirements, except for land (33 % of gross sale price is usually paid to landowners upon whose farms
the wild aloes grow). Post harvest treatments includes slicing the leaves and the exuded juice collected
and subsequently heated up in cauldrons then allowed to cool into lumps. This primary production
requires artisanal skills developed by certain local communities in South Africa. Primary production has
medium potential for job creation as currently community based harvesting is undertaken. Some small
communities (4-600 people) depend entirely upon aloe tapping activities in the Eastern Cape Province.

The Aloe Ferox Trust (email: info@aloeferoxafrica.com) provides information on the commercialisation of
aloe ferox in South Africa. Although the extract from the AFT report, below, eludes to the secondary
processing of aloe gel, this is level of manufacturing is currently only practiced by one small semi-
industrial facility in South Africa owned by Golden Products SA. Secondary production requires medium
to high capital investment, specialised equipment and skilled labour.

 Aloe ferox is an indigenous plant that grows abundantly in the Albertinia in the Mossel Bay area.
 The traditional method of wild harvesting has remained the same for more than 200 years. The
 plant, harvested every year or second year, is carried out by community harvesters. Six or seven of
 the lower leaves are cut from each plant; care is made not to injure the growth point in the crown of
 the plant. The leaves are then placed in a basin-like hollow made in the ground and lined with a
 plastic sheet. Two to three hundred leaves are stacked in a circle, cut surfaces facing inwards and
 overlapping, so that the sap can drain into the hollow. After some hours the sap of several leaves
 drain and can be collected. The bitter sap is poured into a metal drum and then heated over an open
 fire, continuously stirred until the volume is reduced by approximately half. The warm sap is then
 decanted into a tin and allowed to cool and solidify. This solid hard block is processed to produce
 bitter crystals and bitter powder. The leaves, from which the bitter sap has been tapped, are
 transported to the factory where they are washed, sliced and minced to form the aloe jelly. Most
 parts of the aloe leaf is used, only the spiny thorns are discarded.




                 Aloe Ferox                                 Aloe Ferox Ltd. bodycare products




Susan Wren March 08. LWF, Kenya                                                                           25
               Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


2.4 Commercialisation of Aloe sps in Kenya

2.4.1 Description of the main species and distribution
There are approximately 360 taxa species between Africa and the Arabian states. Kenya has the greatest
Aloe diversity in the region. There are so far recorded 57 species in Kenya. There are also several new
species waiting to be described. The status of Aloes in Kenya is relatively well known compared with
Tanzania and Uganda. In the 1997 IUCN Red List of Threatened Plants there is a record of 22 species of
Aloe listed as rare or threatened in the country. The 2002 IUCN Red List includes one species, Aloe
ballyi, a rare tree Aloe that, in Kenya, is confined to dense bush near Mwatate in the Taita Hills. The local
farmers are cultivating right up to the main road, which is where the last stands of Aloe ballyi occur (Len
Newton pers. Comm.) The remaining species of Aloes have not yet been evaluated using the post 1994
IUCN Red List category.

Three of indigenous aloe namely Aloe secundiflora, Aloe turkanensis and Aloe scabrifolia are currently
exploited for Aloe gum. SNV, through the Sustainable Utilisation of Commercial Aloe Resources in the
Drylands study scoping and mapping exercise of the 6 identified locations, found 18 species, including
five species; aloe secundiflora (highest density), aloe turkanensis, aloe scabrifolia, aloe megalocantha
and aloe rivae which have a history of commercial utilisation. The region with the highest density of aloe
secundiflora was found to be Pokot (est 89 million plants) while a combined total of 40 million aloe
secundiflora and aloe scabrifolia plants was estimated in the rest of Laikipia Samburu, Isiolo, Wajir,
Moyale and Marsabit. It is estimated by KEFRI that about 1,000 metric tones of aloe gel is currently
produced annually, mainly from these parts of the country. The study identified the main threats to this
aloe population as being; land use conversion mainly in Laikipia and unsustainable method of harvesting
especially in Samburu district. It appeared that unsustainable harvesting increased in season that follow
drought or crop failure.

2.4.2 Exploitation crisis
Trade in Kenyan aloe begun in the early 50’s at the coastal region, spreading to Taita, Samburu, Baringo,
Laikipia, Turkana and West Pokot districts. The trade for the aloe latex (‘bitters’) has not brought
sufficiently interesting financial incentives to the local communities to turn this aloe trade into a larger
natural product business sub-sector through domestication/commercial cultivation. In 1986, there was a
presidential decree banning exploitation of indigenous aloe. The decree only drove the trade
underground, and hindered any further investment into this sub-sector which is necessary to enable the
scaling up of commercial aloe operations and ability to respond to the growing global demand for aloe
products. Following the danger of over exploitation, the Convention of International Trade in Endangered
Species (CITES) imposed restriction on Kenyan aloe. The listing of Kenyan aloe species under CITES
Convention Schedule II is intended to protect potential endangered species.

CITES records of 2003 showed Kenya as the leading exporter of aloe gum in Eastern Kenya, however
there no official records to indicate quantities being exported. It is expected that the majority of supply has
been illegally exported from Kenya through Uganda and Sudan, or through the main port of Mombassa
disguised as vegetable gum and gum Arabic. What records that do exist indicate the gum aloe has been
shipped to the global pharmaceutical and cosmetic industry, approx 30,000 kgs in 1995 mainly to Italy,
Singapore and Thailand and over 80,000 tonnes were exported to Pakistan, Singapore and Thailand in
1996. KEFRI (2001) research findings showed about 470 tons of Aloe gum as being exported, disguised
as products of vegetable gum between 1994 and 2000. KEFRI’s records indicate that the majority of
supply is sourced from West Pokot. As a result it is impossible to estimate exactly how much has been,
and is, commercially harvested/propagated in Kenya, mostly.

KEFRI, since 1997, had taken a lead in aloe research in Kenya and is currently studying both exotic and
                2
indigenous aloes . Importantly, KEFRI have drafted a code of practice for the domestication and
commercialisation of selected indigenous aloes, and have also developed propagation protocols.


2
  Through domestication of these species, KEFRI envisages that by the year 2020 Kenya drylands will have adopted aloes as a
cash crop to serve as an alternative source of income and wealth.


Susan Wren March 08. LWF, Kenya                                                                                               26
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


2.4.3 Regulation and Licensing
CITES office in Kenya is managed by KWS. CITES permit and phytosanitary certificates are required for
all exportation and importation) of aloe products, or derivative. CITES requirements include proof of
exploitation from sustainable source. In addition to this, the Kenya government has brought about an Act
to protect and guide wildlife conservation and management; this includes aloe, as described in Sect
67/376 below:

The Wildlife Conservation and Management Act (Section 67 Cap376)
The main points of the regulation are centred on the domestication (‘artificial propagation’) and
exportation of indigenous aloe plant materials/extracts. Those of note include the following:
A. KWS require all persons conducting commercial propagation/domestication of aloe species to apply for
inclusion under the Register of Artificial Propagation of Aloe Species. All applicants accepted for
registration are then required to pay a fee of Ksh500.
         (i) Applications must be based on the following: artificial propagation should be based on
         sustainable utilisation of the species and shall not be detrimental to its conservation in the wild/or
         of its ecosystem
         (ii) Conservation of aloe species and their natural habitat and micro-habitat is enhanced.

The application requires information on land ownership, species being propagated, when the operation
was established, land size involved, source and quantities of parental stock, evidence of the source.

B. All persons intending to export/re-export aloe material or extracts must apply for an export certificate. If
accepted the export certification is issues after a payment of Ksh10, 000.

The application requires information on the applicant’s business, species to be exported, details of the
materials/extracts (type, quantities), source of parental stock, evidence of the source.

The legislation mandates the National Museums of Kenya, the Kenya Plant Health Inspection Service,
Kenya Forest Research Institute and the Commission of Customs to monitor the activities of registered
aloe operators and ensure that they comply with the conditions set out in the certificate of registration.

Mapping - SNV Sustainable Utilisation of Commercial Aloe Resources in the Drylands Study:
To provide a baseline to facilitate this process, SNV, in 2005, commissioned specialists from KEFRI,
KWS, NMK and DRSRS to undertake resource inventory, mapping and quantification of commercial
Aloes in 6 specific zones. To quantify the aloe population in these defined areas, ground reconnaissance,
GIS and remote sensing mapping and conventional plant inventory were undertaken. Given the growth
characteristic and habitat distribution, a modified sampling method was used. Areas with critical Aloe
mass were selected to give an estimate of possible minimum harvestable quantities from a given area.

Extract: Approximately over 129 million plants of Aloe species were counted in the entire survey area. Of
these plants, 83% were A. secundiflora, 16.9% A. scabrifolia and the rest 0.1%. West Pokot recorded the
highest quantities of A. secundiflora followed by Laikipia and Isiolo district while Samburu and Isiolo
recorded high quantities of A. scabrifolia. A. megalocantha and A.rivae were of low quantities and of
limited distribution. From the survey, areas of Kacheliba, Alale, and Kasey had higher concentration and
uniformly wide distribution of A. secundiflora, and information from local community and dealers estimated
export supply as being about 100 tones per year.

Very little evidence of commercial aloes domestication was observed. The only domestication was found
to be performed by three communities assisted by the LAB project, some individuals, and a few schools
and churches.

2.4.4 Organisations of the Aloe Producers and Processors
There are growing attempts to organise aloe producers and processors into trade associations. These
initiatives have been/are supported and encouraged by development agencies, NGOs and government
departments. One successful example of a growing aloe trade association is the Coastal Aloe Working
Group, below:

Susan Wren March 08. LWF, Kenya                                                                              27
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Example: Coastal Aloe Working Group (CAWG). The Coastal Aloe Business Report (DANIDA-ABD)
There are a number of Aloe producers and micro-processors in the coastal region of Kenya Coast. Micro-
processors sell gel, sap and soap within the immediate vicinity via churches and mosques, people at
market centers, kiosks, shops and teachers in neighbouring schools. Over recent years the Coastal Aloe
Working Group (CAWG) network has been set up and operated as a representative body. There are a
number of organised aloe groups and associations, who are also members of CAWG, such as Dida
Forest Area Adjacent Forest Association (DIFAAFA) at Kalifi who produce aloe gel. In Mariakani,
Samburu and Taru, micro-processors working in partnership with Sombeza/Coast Rural Support Program
to produce and market locally aloe soap products. Kwale’s Lima CBO sell aloe soap in a shop adjacent to
their processing site. There are a number of small-enterprises groups such as; Kwale Herbal Producers
(KHP), Taita Herbal Producers (THP), Simba Hills Ecosystem Center Herbal (SECH) and G-Cline Herbal
Works, that have incubated independent business that process aloe as well as other natural products.
The small enterprises under these entities are G-Best of Kwale Herbal Producers, RIJOY Herbal Products
of Taita Herbal Producers, SECH Organic/SECH Herbal Products of Simba Hills Ecosystem Center
Herbal, and Rise Up and Walk of G-Cline Herbal Works.

2.4.5 Aloe Supply Chain
The main source of aloe extract (aloin/sap/gum) is from the more remote parts of Kenya, mostly semi-arid
regions identified in earlier text of this report. The aloe sap is collected, mainly from the higher yielding
aloes, and transported, mainly by foot or donkey, to markets in the local towns often taking 2-4 days
between harvesting and sale. The harvesters receive around Ksh30 for 5 litres of sap from informal
                                            3
traders, usually in local market centres . There is no standardised quality control, however payment is
based on the level of aloe sap viscosity, as adulteration of the aloe sap with water is commonplace. Some
of the Aloes are poisonous, such as aloe ruspoliana, and as there is no distinction between the aloe
extract purchased by the middleman some of this species can find its way into the market. Once
purchased, the traders store the aloe sap in 2,000 litres drums where it is then boiled commonly for 6-8
hours (sometimes longer if the sap contains high amounts of water. On average 4 litres of sap results in
1kg of aloe gum. The aloe now is a hard gum once cooled, and is stored in water resistant bags, bulked
and sold to aloe traders and manufacturers within Kenya. It is then sold in Nairobi to export traders or
small and medium scale manufacturers (such as Lubanchem Ltd.) for Ksh 85-100/kg. The product is then
either further processed as an ingredient in finished retail products (very small quantities) or exported
(bulk). The international market buyers offer between US$2,300 – 2,700/tonne for aloe gum, depending
on the quality.

There is a small domestic level wild harvesting of aloe that is processed as finished products for the local
market. This traditionally has mainly been the sap (aloin) for human and vetinerary health care. To
stimulate village level manufacturing of bodycare aloe products, the LAB project has given rise to 4
producer groups with low current output of bodycare products (soaps, body lotions and creams, shampoo
and hair conditioners). Aloe gum is the main extract sold within and from Kenya

Commercial opportunities for indigenous aloe appear to be increasing as there is a sustained demand
from international as well as African markets. Local market development has been limited by the lack of
secondary processing facilities and most retailed aloe products are imported into this country. Where
there is potential for commercial partnership and development support, realistic opportunity exists for
secondary processing of aloe at the community level, which could increase profit margins substantially.
The supply of aloe plant materials, through the processing stages to the end market for the aloe extract,
being mainly gum aloe (aloin) can be expressed in the schematic form below. The diagram below is an
approximation of the current value chain and, as it does not give a weighing to the actors and activities in
terms of frequency/volume, it gives only a limited view of the current trading picture.




3
 It is interesting to see in the African Business Development’s (DANIDA) Coastal Aloe Business Report, the
proceedings of a workshop ABD held in May 07 for aloe micro and small enterprise, which indicate that the pricing of
aloe sap in the coastal region ranges between Ksh80 to 120/litre.

Susan Wren March 08. LWF, Kenya                                                                                   28
           Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Schematic of the Aloe Supply Chain in Kenya:




                                  REGIONAL & INTERNATIONAL MARKETS
                                  (EAST AFRICA, MIDDLE EAST, FAR EAST
                                         CHINA, INDIA, EUROPE)




                                               EXPORT                  LARGE SCALE
                        ILLEGAL              COMPANIES                     ALOE
                        BORDER                 TO SUB-                  EXTRACTION
                        TRADERS               REGIONAL                  COMPANIES
                                              MARKETS                  WITHIN KENYA


        LOCAL               ILLEGITIMATE
                                ALOE            SOAP AND
        MARKET               EXTRACTION        COSMETICS               NATIONAL
                             OPERATIONS      MANUFACTURERS
                                                IN KENYA
                                                                        MARKET
      SMALL SCALE
      MANUFACTURE
     COMMUNITY AND
     WOMEN GROUPS,
     PROCESSING AS
                                           INFORMAL TRADERS
        BODYCARE &                 PRIVATE SECTOR CONTRACTED AGENTS
     HEALTH PRODUCTS
      (GEL, POWDER &
        ALOIN GUM)


                                              LARGE SCALE WILD
      SMALL SCALE
      PLANTATIONS
                                                 HARVESTING
        AND WILD
      HARVESTING


                                  RURAL COMMUNITIES/PASTORALISTS




Susan Wren March 08. LWF, Kenya                                                             29
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


3. Laikipia Aloe Enterprise Review and Impact Assessment
(based on stakeholder meetings) covering the following aspects:

3.1 Existing Aloe-based business in Laikipia
Presently in Laikipia there are no large scale commercial actors/players, although village level to medium
scale industrial enterprises is developing slowly in some parts, as well as a level of traditional rural use by
pastoralists for animal health

LAB, Laikipia Aloe Bio-enterprise Project, has given rise to the start of aloe commercialisation in Laikipia.
The tangible results seen today include the following:

Commercial propagation of mother plant stock. Maria Dodds.
Maria Dodds, a land owner and farmer in the Laikipia district, has a deep knowledge of aloes and has
developed a substantial nursery of the indigenous species found within Kenya. LAB developed a worming
relationship with Maria to develop a stock of healthy correct planting material from her mother-stock. LAB
provided some small financial assistance to the extension of the nurseries to enable Maria to sell the
planting material to the producer groups at 10 shillings/plant. This price is seen as affordable for small
scale rural enterprises, based on one acre plantations as comprising 10,000 plants.

The formation and development of commercial aloe enterprises with rural communities in the Laikipia was
also initiated and assisted by the LWF under the LAB project. There are three main groups in existence,
as follows:

Rumuruti Aloe Group (further information in 2.4.6)
   • Soap making enterprise with Aloe secundiflora sap and lateritia var.graminicola gel/sap
   • Group started in 2005, training sponsored by the LWF
   • Started with 35 members now only 25 active members
   • Aloe sap harvested from the group plantation-seedlings provided by Maria Dodds
   • No wild harvest of Aloe sap
   • Products being produced are soap, body lotion, cream. All products sold for 50/= an item

Withare Aloe Vera Group
   • 35 active members both men and women.
   • Initiative started two years ago inspired by the Rumuruti Aloe group.
   • The group meets every second week on Tuesday.
   • Members are growing 300 Aloe secundiflora plants with seedlings supplied by Maria Dodds of
       Kifuko Ranch Rumuruti.
   • Until plants are mature they are harvesting sap from the wild population.
   • The products currently being made are: soap, shampoo and body lotion.

Koija Aloe Project
Aloe secundiflora is fairly common in the Koija area. There is a project ongoing looking mainly at using
the plants for soil rehabilitation. A small patch of Aloes is being grown to test growth rate of the plants etc.
    • The community are interested in making value added products with Aloe
    • The benefits of Aloe plants to help with soil erosion are being recognised
    • The medicinal value of the sap is known to the community (mainly for stomach ailments)

There is also the Kieni Aloe Plantation Group (KAPG) and Tigithi Pilot Aloe Group.
There are several other aloe producer groups in Kenya that are processing and retailing aloe based
bodycare and health care products on a small scale (usually to local markets)

However, due to extraction and formulation issues, the quantity of aloe extract used in these products is
tiny and therefore has little tangible impact on plant utilization. These projects have made some impact in
stimulating increased awareness of the usefulness and potential for commercialization of aloe.


Susan Wren March 08. LWF, Kenya                                                                              30
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


3.2 Ecological/conservation impact assessment

3.2.1 Background:
Kenya has the greatest Aloe diversity amongst East African countries and is one of the largest exporters
of aloe products to China. As a result of indiscriminate harvesting without any regard to conservation, the
IUCN, CITES parties and international NGOs are fully support of developments to stimulate community
propagation and cultivation, in order to take the pressure off wild populations. Few specific measures are
known to be in place in Africa to protect aloes species or their habitats. It only happens within national
parks or certain gazetted areas. In a lot of cases the environmental hazard emerged because whole
plants were dug up and unsuccessfully replanted in plantations.

The Federal Agency for Nature Conservation in Germany is central in the present efforts to develop a
standard for wild harvested species. They have a specific interest in aloes and are interested in
undertaking conservation initiatives in Africa relating to aloes preservation (contact: Dr Uwe Schippmann).

3.2.2 Laikipia Environment:
Laikipia is an area of approximately 10,000 sq kms. The district is diverse with elevations from 3,000 ft to
7,000 ft. The topography is varied. Much of Laikipia is comprised of basement rock in the form of a variety
of granites and gneiss. The overlay in parts of the district is phonolite and other forms of vesicular lava,
which came as a result of Mt Kenya’s eruption to the East. The Laikipia plateau was formed in one of
many shifts from The Great Rift Valley to the West of Laikipia. In between the granite hills and phonolite
scarps lay flats of clay like soils (black cotton), friable lateritic soils and hard capped areas of granitic
sandy soils. All of these areas make up important and diverse habitat for a variety of Aloe species in the
district. Aloes have preferred soil types and altitude levels, which determine their balanced distribution in
Laikipia and beyond.

3.2.3 Laikipia vegetation:
Surveys done by Taiti (1992) delineate eleven native plant communities in Laikipia; this presents a
complex pattern which largely reflects elevation, rainfall and drainage patterns. For the sake of keeping it
simple Laikipia’s vegetation can be separated into four main vegetation types. Areas of highest elevation
are classified as upland dry forest; this is of an evergreen forest type dominated by Juniperus procera,
olea europea ssp cuspidatus. Lower altitudes present vegetation types such as Acacia/Commiphora bush
land, which is dominated by Acacia mellifera, Acacia tortilis, Commiphora habessinica. Acacia
drepanolobium grassland makes up almost 28% of the vegetation in Laikipia. Riverine vegetation is vital
to Laikipia’s vegetation types. The dominant flora along the Uaso Nyiru and Uaso Narok rivers are Acacia
xanthophloea, Vangueria madagascariensis. The Nanyuki River – Syzigium cordatum, Albizia gummifera.

3.2.4 Land use:
The changes in land use in the last twenty years have altered at an alarming rate. In the higher rainfall
areas cultivation is on the increase including encroachment into protected areas such as forest reserves.
In the arid areas of Laikipia the increase in livestock is a threat to loss of habitat and plant species. In
some arid areas of Laikipia pastoralists have become sedentary, settling permanently whilst still keeping
the traditional lifestyle of moving livestock.

Most of the large-scale ranchers have turned towards tourism and conservation in the last ten years. This
trend has seen an enormous change in wildlife movement with particular reference to the larger mammals
like elephant. Elephant have become more resident across Laikipia where there were no elephant in the
past. There are currently 3,000 elephant traversing Laikipia and 5,000 elephant in the Laikipia/Samburu
ecosystem. This has made an enormous impact on the vegetation. Areas of thick bush have been
opened up; certain species of trees and shrubs have become extinct whilst several others are threatened.
If the current level of pressure continues in the more arid areas of Laikipia by the elephant population, the
flora of Laikipia will be adversely affected. This dynamic will mean that the smaller species of herbs and
succulent plants will be threatened as they become exposed. Most of the pastoralists coming and going
in the Laikipia District are armed with automatic weapons, this means that the larger mammals like
elephant still struggle with their journey North and staying there for long due to the constant threat from
guns. This forces them to stay for longer periods in Laikipia where they feel safe.

Susan Wren March 08. LWF, Kenya                                                                           31
              Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


3.2.5 Aloe species, distribution and status in Laikipia
Compared to most regions there has been little evidence of indiscriminate harvesting in Laikipia. Aloes in
Laikipia are threatened by a number of other different reasons, as cited in 3.2.4.

Species in Laikipia                  Location              Status                Uses
Aloe archeri                         West/North            Uncommon              Not recorded
Aloe dumatorum                       Ol doinyo Nyiru       Rare                  Not recorded
Aloe francombei                      Ol Ari Nyiru          Endemic               Not recorded
Aloe lateritia var.graminicola       Widespread            Locally common        Burns
Aloe myriacantha                     Grassland             Uncommon              Not recorded
Aloe nyeriensis                      Widespread            Uncommon              Burns,
                                                                                 stomach
Aloe powysiorum                      Lekurukki hill        Rare                  Not recorded
Aloe ruspoliana                      Low altitude          Uncommon              Poisoning
                                                                                 hyaena’s
Aloe secundiflora                    Widespread            Locally common        Stomach/burns
Al`oe scabrifolia                    North/West            Uncommon              Not recorded
Aloe vituensis                       Kimanjo               Uncommon              Not recorded

Aloe in rangeland rehabilitation: Aloes are xerophytes well adapted to bare degraded areas that are
common in drylands. Their root system and physiology is well adapted, imbibe minimum precipitation and
withstand severe drought conditions. His adaptation enables Aloes to grow well in dryland areas. LWF is
encouraging the up-take of aloe panting for rangeland rehabilitation. Aloe provides forage for bees.
Honey production is a thriving industry in drylands. Its production depends on flowers and water where
Aloe flowers play a major role.


3.3 Socio-economic impact

3.3.1 Traditional uses of Aloe species in the Laikipia area
Since ancient times, the indigenous aloes of Laikipia, and in other districts in Kenya, have been used for;
(i) human medicine (the sap for laxative, worms, the gel stomach ulcers and other stomach and colon
dysfunctions, wound salve and for skin ulcers, eruptions etc, even malaria, (ii) the sap and gel as a
veterinary treatment for skin conditions mainly of cattle and goats, and (iii) the gel for skin softening as a
crude but effective beauty treatment (iv) traditional ingredient in the brewing of alcohol, (v) poisoning of
rats and other vermin rodents, (vi) live fencing and (vii) control of soil erosion by encouraging growth of
grass in the range lands.

3.3.2 Traditional NTFP enterprise
Dependency of the resident and pastoralist communities within Laikipia on its natural resources is higher
than many parts of the country. Over exploitation has increased as population pressure has increased.
Dependence on NWFP is also a poverty indicator; rural people rely on NWFP because they have no
other option. As remuneration is commonly low the communities remain poor and food insecure.
Therefore, if NWFP are to play a role in poverty reduction it will have to be through increased and/or more
efficient commercial production and trade. In response to this conclusion, the Government, through
National Poverty Eradication Plan (NPEP), has laid down strategies to reduce poverty in ASALs by 50%
by 2015, and encourage gender mainstreaming in all aspects of livelihoods improvements and domestic
welfare. The strategy seeks to support integrated natural resource management; promote best practices
in natural resource conservation; and to educate communities in sustainable use of natural resources.

3.3.3 Status of the aloe collectors/harvesters:
Those community members that constitute the aloe wild harvesters/collectors are amongst the poorest
areas of Kenya; Baringo, Laikipia, Samburu, Taita, Kwale, West Pokot, Marsabit, Moyale and Wajir.
Despite being primary agents in the supply chain they receive little reward. The majority of supply is
harvested crudely either by independent community members or by labour hired from pastoral nomadic
communities who receive a very low reward of between Ksh35 (Tukana) and Ksh60 (Baringo) for 5 litres


Susan Wren March 08. LWF, Kenya                                                                             32
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


of sap for their efforts. As there are no statutory sustainable wild harvesting protocols in place there has
been little regard to the survival of the plant.

3.3.4 Management issues

Source of aloe material: The concept of Aloes utilization and sustainable management arose from the
need to exploit existing natural resources that have potential to sustain as well as boost economic status
of local people for future livelihood. Aloes have been exploited in the ASAL for many years, particularly
during drought years. However, there is little understanding within the government and policy makers of
the true opportunities that exist in terms of NTFP exploitation and its potential impact on conservation of
the natural resources. Sustainable utilization of the indigenous aloe species requires a wide and full
assessment of the current status (as undertaken in specific areas by SNV) and sound governance (using
licensing and certification systems). The up-take of NTFP enterprise opportunities by rural communities
will increase if they are adequately sensitised and trained in sustainable domestication, business
management and marketing, and linked to commercial buyers.

As identified by the Laikipia Aloe Bio-Enterprise Project; currently most of the areas are experiencing
drastic change in land use mainly from open grazing pasture fields to cultivated agriculture. This is mainly
due to recent subdivisions into small holder units and settlement. The process has caused uprooting or
destruction of thousands of aloe stems in the area to pave way to numerous combinations of peasantry
activities. This has put the trend in biodiversity status on the decline.

Management of the indigenous aloe in terms of meeting sustainability and conservation goals will require
the interest and assistance of the extension/field staff of the relevant government offices. These
personnel, as well as those of the key CBOs and NGOs, based within these regions will require training
and guidance in all aspects and protocols relating to sustainable wild harvesting and domestication.
The successful implementation and impact of the Kenyan government licensing system for aloe utilisation
and commercial exploitation will rest on this factor.

Low returns: The current exploitation is crude (the sap is boil for 3 hours and the crystal gum is then
sold) and the returns to the harvesters are low, as cited in 3.3.3, being based almost solely on the trading
of aloe sap or the extracted aloe gum (crudely achieved through boiling off the water from the sap). There
is very little domestication of aloe practiced within Kenya, including Laikipia, and therefore in the current
situation there is no opportunity to increase the commercial plant performance of the indigenous aloe
species that are currently traded.




   Aloe gum processing
   Coastal region Kenya




Poor competitive advantage of Domestication: The SNV report illustrates well the current level of
return from commercial aloe domestication. The results of the 2005 case study on aloe secundiflora
regarding production and market forces indicate:




Susan Wren March 08. LWF, Kenya                                                                            33
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Plantation of aloe secundiflora is propagated at spacing of 1x1m will require 4,900 plants/acre and take 3
to 4 years to mature from nursery to harvesting. Sap yield on average is 50 ml per mature plant resulting
in (4900 x 50/ 1000) 245 litres of sap per acre.
4 litres of sap, when boiled, produces 1 kg of crude aloe gum; this results in 82 kg/acre of crude aloe
gum, which is sold to dealers at KSh 70/kg. The income/acre is less therefore less than Ksh6000/acre
which is only achieved after 3-4 yrs of tending the plantation.
The cost-benefit analysis may be different depending on the Aloe species; for example aloe turkanensis
has a faster maturity and higher Aloin content compared to aloe secundiflora.

There are, so far, few commercial nurseries engaged in the production of aloe seedlings due mainly to
the lack of / cost of licensed planting material. It takes about 10 months for the seedlings to be ready for
planting out.




                                   Aloe farm in Kwale

Lack of knowledge and expertise: Poor access to sufficient technical assistance/knowledge to
successfully develop and manage the aloe plantations and to process attractive aloe products is a
fundamental problem area.

The example used in the case of Laikipia aloe study, is based on the experiences of Rumuruti Women
Aloe Group, Tigithi Aloe Group, Kieni Aloe Planting group and Withare Aloe Group. These groups
produce various aloe products at a small scale and sell their products locally (occasionally to Maria
Dodds and Mr. Grant of El Karama ranch in Nanyuki). The products include soap, herbal tea, face and
body creams and lotions. The groups face the challenge of having very limited knowledge of value
addition techniques for small scale aloe manufacturing. The other challenge is that the community groups’
products have not been standardized, or licensed by the Kenya Bureau of Standards (KBS). This
presents not only the problem with quality assurance but also marketing, particularly to customers beyond
their local areas of residence. The groups have received training in value addition, so far, through LWF
support. However this seems to be insufficient. This is particularly the case in addressing agronomic
issues, for instance over 50% of all aloe seedlings from nurseries planted dried up on planting.




  Poor post harvest care                                           (Independent operator in Laikipia)




Susan Wren March 08. LWF, Kenya                                                                          34
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


3.3.3 Case Studies of Aloe-based business development in Kenya

Case Study 1. Practical Action Aloe Project, Turkana
Commercial projects have been developed with the Turkana people over recent years, which have been
focused on the commercialisation of the aloin extract from the indigenous aloe species (aloe turkanensis),
as an export item for niche markets as well as an income generation initiative in the production of
medicinal soaps and other human health products for local markets.

Practical Action is an international development agency working with poor communities to help them
choose and use technology to improve their lives today and for generations. Practical Action has been
working with the people of Turkana to address the chronic food insecurity (50% of Turkana’s depend on
relief food) through sustainable enterprise development. Turkana is well endowed with commercial aloe,
aloe turkanensis and aloe secundiflora, which have been found to have compounds similar to those in
aloe vera, and have comparable leaf sizes making them good candidates for commercial exploitation.
These varieties are already harvested extensively from the wild for their medicinal properties for the local,
national and export market. Practical Action has assisted the Turkana aloe group (with over 200
members) to process aloe into soaps, shampoo and lotions. These aloe products are sold locally within
the Turkana district, however Practical Action (through funding from CORDAID) plans to increase the
scale and improve the techniques of aloe processing to enable the products to reach national and
regional (such as Southern Sudan and Uganda) markets.

There are two processing centres: Kalemngorok and Namoruputh. Currently, there are 320 members in
Kalemngorok, 572 in Namoruputh and 480 members in Komera. Aloe trade is now becoming more
profitable than livestock. Each community group has planted 10 acre with domesticated indigenous aloe
species, and there are now 21 such farms in Turkana district.

Case Study 2. Baringo Aloe enterprise development
Baringo District although endowed with vast range of biodiversity is one of the poorest districts in Kenya
with over 38% of the population living under the poverty line. Livestock production is the only source of
livelihood for the community. The community recognizes Aloe as an important plant species with
medicinal properties and a pillar for honey production. The community has also used Aloe for soil erosion
control. KEFRI conducted successful research work in the area aimed at enhancing the conservation and
management of Aloe species. To promote sustainable harvesting, KEFRI and partners are implementing
an aloe bioenterprise in Baringo, the Koriema Aloe Processing project, which was launched by KEFRI on
18/11/2004, funded by European Union, Biodiversity Conservation Programme, by KShs 13 million.
KEFRI has taken an active role in this project as part of their attempts to promote aloe cultivation for
improved livelihood wealth generation and enhance biodiversity conservation. As part of the same
initiative, the processing factory has been built, farmers trained and plantations established. The main
actors in the project are KEFRI, Landmawe Investor and the residents of Baringo District. KEFRI was to
head research while Luban Chemicals was to handle the manufacturing aspect. Further European money
over a four years fund has been pledged to enable a conservation programme to protect aloe species,
through capacity building of Kenya's National Environment Management Agency, and training of local
communities in the implementation of environmental action plans.

The KWS has already developed draft guidelines on issuance of CITES permit for domestication and has
recommended that groups show resource inventory and sustainable resources utilisation and community
benefits. KEFRI has challenged Kenya's authorities to fast-track establishment of a legal framework to
formalise the industry. Several export contracts between Baringo and buyers in Britain and China have
already been lost because regulation and legal guidelines have not been completed.

In the Baringo and Koibatek areas, farmers are already strategizing on how to benefit from the new
project. For example, Jane Chepkonga's 20 acre farm at Ngoswet in Mogotio, is currently covered by
acacia, leleshua and other hardy shrubs of insignificant value. She is converting her 20 acre farm to aloe
cropping (secunduflora species) following advice of the Equator Nature Conservation Project, and will
also develop beekeeping as the flowers of the fleshy aloes attract bees.


Susan Wren March 08. LWF, Kenya                                                                           35
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia



The processing plant, which has been licensed under the Kenya Wildlife Services, is expected to produce
crude aloe gum at first, for sale to the pharmaceutical and cosmetic industries. Value added products will
follow, exploiting the properties of a range of aloe-type species found in arid and semi-arid parts of the
country. These will compete with products from South Africa, which currently account for 60% of the aloe
products sold on world markets. KEFRI is supporting the project through research on aloe species,
artificial propagation and the development of guidelines on sustainable exploitation.

However, currently the factory lies dormant due to a dispute over its control. Suspicion among interested
parties has stalled the project. Local leaders and a private investor, brought on board by the Government
to help solicit market for its products, are haggling over the control of the firm. The firm's establishment
was meant to legalise the export of aloe extract to pharmaceutical companies. The Kenya Wildlife Service
(KWS) and the Kenya Forest Research Institute (KEFRI) are key partners in the project. The two
organisations were expected to provide the regulatory responsibility and carry out research. The Baringo
community is currently "managing" the factory and plans to install a management team once the factory is
up and running. The residents claim they are the rightful owners of the project, but government officials
maintain that a third party has to be included to help play the role of marketing the business and the
products. The administrator said that the biggest challenge was on the side of the farmers to satisfy the
required capacity to ensure that the factory remains operational once it opens.

For full information see Annex 6.




Case Study 3. ICIPE Commercial Aloe Farming. Kwale Project with Coastal Rural Support
Programme
Aloe farming is an emerging source of income generation for communities living in the coatal region, as
well as the inland arid and semi arid areas. Being aware of the policy framework of CITES, the Coastal
Rural Support Programme (CRSP) carried out a survey to determine the areas in which aloe was
naturally growing. The communities, where aloe was naturally abundant, were organized into aloe
farming groups and each group was supported to establish an aloe farm. Currently 1073 community
members (871 women and 202 men) in 36 villages (in both Kwale – now Kinango and Kilifi districts of
Kenya) are involved in Aloe farming and have planted a total of 200,000 ( representing appox 50 acres of
land) aloe plants and established 9 nurseries. Group aloe farms are managed by all group members.
However, some group members have also established individual farms which they manage on their own.

CRSP-Kwale Project has continuously built the capacity of the groups to manage aloe farms through
training on aloe husbandry. In addition to training on general husbandry and management, group
representatives have received training on small scale processing of value added products such as soaps,
lotion, detergent and candles. Through the sale of aloe products, household incomes are being raised
among participating groups. Aloe sap and stone are sold to brokers while value added products such as
soaps, lotion, detergents and candles are being sold locally. Where products sold are from a group farm,
the benefits are distributed among all the group members. The biggest challenge facing aloe farming as
an enterprise is that of limited access to markets and market information and thus there is need for other
actors to facilitate the marketing of aloe products. To make the products more competitive, the support of
other actors in packaging and standardization is also highly needed.



Susan Wren March 08. LWF, Kenya                                                                          36
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Aloe farming can been seen in this region aas being successful as a complimentary incomes generation
activity, but also plays an important role in soil erosion control. When aloe farms are established in waste
lands (lands not suitable for crop farming) the plants control soil erosion, making the land suitable for
establishment of other vegetation and thus contributing to restoring degraded lands.

Case Study 4. Rumuruti Aloe Womens Group
With extracts from the Appraisal of Aloe Domestication in Laikipia,
Case Studies Conducted by Kenya Aloe Working Group Secretariat.

This group was established in 2004 and registered in 05 by the Ministry of Culture and Social Services.
The group has 25 members all of whom are women. They have been assisted by Mr. Aden Mohammed
(aloe trader and husband of one of the members) and Maria Dodds (GG Kariuki ranch, P&D ranch and
Narok ranch in Rumuruti), LWF, Ministry of Agriculture, Kenya Forestry Department and other line
ministries help in the domestication and value addition to the indigenous aloes, Aloe Secundiflora and
Aloe Lateritia (gramanicola). The group has planted a 0.5 acre plot with these aloes, donated to them by
the Muslim Community of Rumuruti and have a 2 acre plot, not yet planted, donated to them by the
Municipal Council of Rumuruti. The seedlings have been provided by Laikipia Aloe Nursery, but they also
occasionally plant from wild seedling which happens to do better in survival than the seedling from the
nursery (due to better adaptability to local conditions). The group lack sufficient skills to nurse the
seedlings and require capacity building in this area. The small plantation is rain fed.

The group currently harvests only a little sap for the products they manufacture, harvesting of the whole
plot is expected to be done only once per year during the dry season, when largest quantities of sap can
be gained. The harvesting is carried out by cutting the leaves at the base using knives and collecting the
sap in basins. The sap is sieved and put in plastic bottles for sale or storage. The group expects to collect
between 60 and 100 litres each harvest season in the future. This group makes aloe products such as
soap (50grams), Creams (50grams) and Lotions (100grames), and plan to expand their range and
improve their formulations if training is provided for this. The group was trained by Francis Keah,
supported by the LWF, and by Maria Dodds. They market their products locally and some occasional
deliveries to Maria Dodds and to Mr. Grant of El Kariama ranch in Nanyuki. The group is aiming to obtain
approval by the Kenya Bureau of Standards for their products, enabling them to reach wider markets. The
ain challenges cited by the group include improved facilities, improved labelling, bar code, and training in
better product formulation.




       Aloe Gramanicola




                                 Aloe Secundiflora




Susan Wren March 08. LWF, Kenya                                                                           37
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Learning Points:

Drawn from field visits under this assignment and the Laikipia Aloe Bio-enterprise report, 2007
Challenges faced by the Aloe producer groups:
• The groups set up under LAB are striving to domesticate aloe with enthusiasm.
• Indigenous aloe seedlings establish more easily than the seedlings from the nurseries (possibly a
   factor of enviro-adaptively).
• The product marketing minimal
• Products are not standardized in formulation, or well formulated and therefore not seen as an
   attractive, effective and safe product for medium and upper income bracket consumers
• Product packaging is not attractive
• Products are not registered under KBS. This limits the groups from sourcing for external market.
• The groups are small and the scale of the operations are limited
• The groups have very little financial capacity for scale up within their own resources.
• The aloe products are made from 95% plus other ingredient, a very small amount of aloe is used.
• The groups have difficulty sourcing some of the major ingredients (i.e coconut butter)
• The aloe plants are affected by prolonged drought, but once it rains the plants regenerate, which
   makes aloe survival rate considerably higher than food crops grown in the areas.
• Where aloe is planted, soil erosion is reduced, assisting range land rehabilitation.

Drawn from the Coastal Aloe Business Report (DANIDA- ABD)
The output from interviews and workshops conducted/organised by the DANIDA Agriculture Business
Development programme and captured in the Aloe Coastal Business report, 2007 (commissioned by the
same): The microprocessors need to:
• Heighten their promotional campaign for aloe soap to increase sales volumes (field days and displays
   in local market centers were suggested)
• Improving packaging,
• Establishing quality control and quality assurance procedures (such as establishing standardized aloe
   soap formulations was suggested),
• Better technical support on quality aspects.
• Expertise business planning and development
• Refresher training on aloe product development, business management, record keeping and
   accounting, orientation
• Training in new technology and any newly purchased equipment etc.
• Emphasis on the use of service providers and technical personnel within the Coast Region
• Field trips and exchange visits to other successful related commercial operations.
Drawn from the ICIPE Commercial Aloe Farming. Kwale Project
To add to those mentioned above, the challenge facing aloe farming in this region include:
• Limited access to markets and market information and thus there is need for other actors to facilitate
    the marketing of aloe products.
• To make the products more competitive, the support of other actors in packaging and standardization
    is also highly needed.
• Aloe plays an important role in soil erosion control, stabalising the soil making it possible for
    establishment of other vegetation and thus contributing to restoring degraded lands.

Drawn from the Baringo Aloe enterprise development programme
• The resource maps has provided the baseline information for a feasibility and business plan as well
   as the foundation for sustainability protocols
• The development of the stakeholder own company, but ownership problem causing suspicion among
   interested parties has stalled the project. Local leaders haggling over the control of the firm.
•  Lack of clear marketing and business management strategy. Most of this NBEs were started with
   different goals and just converted to enterprises when opportunities came in and therefore don’t have
   clear business mind which can help develop good competitive strategies


Susan Wren March 08. LWF, Kenya                                                                       38
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


3.4 Challenges, Threats, Strengths and Opportunities of Aloe Enterprise in Laikipia

This section is a summary of the collective findings from the desk study and the information gain from
field visits and from meetings with stakeholders, LWF team, other NGOs and CBOs working to support
the development of aloe enterprise in Laikipia and other parts of Kenya.

3.4.1 Challenges:
•   Lack of awareness: Little rural based knowledge of aloes species as a viable wild resource for the
    generation of incomes and employment. Sensitisation and awareness work will need to be done with
    the targeted communities to bring to them an awareness of the multiple benefits with regard to human
    health. Sufficient information needs to be disseminated to communities, through local CBOs/NGOs and
    government
•   Lack of commercial investment: Research needs to be increased on appropriate processing
    techniques that can be undertaken at the small scale business level that will enable retentions of the
    majority of the active ingredients of the aloe plant.
•   Limited research work published on indigenous aloes species
•   Propagation protocols have been established by KEFRI but there is little training in these protocols
    available to aloe producers and harvesters
•   No institutionalised marketing channels developed for this product as a result if the little
    commercial and development
•   No processing facilities available at the community level. Low technology equipment is required to
    process and pack the aloe products at the village level
•   Low levels of domestication achieved so far to create viable enterprises in most parts of Laikipia.
•   Little access to transport to reach better markets – moving the semi-processed crop to the central
    processing facility/centre will need to be secured and financed
•   No adequate supply chain. Currently there is no supply chain in existence that provides traceability,
    transparency and allows benefits of value addition and better marketing to filter down to the
    community level – the harvesters/suppliers. This needs to be developed.
•   Lack of entrepreneurialism: there are no entrepreneurs engaged with developing sustainable aloe
    production and processing in Laikipia
•   Commercial partners will be unlikely to bear risk of investing capital to engage with small scale
    producers where the opportunity cost is high – as it is at the present time.
•   No central processing facility/centre. Either an entrepreneur and adequately resources and well
    managed producer association needs to invest (or have access to resource to invest) in this facility.
•   Community based production of value added aloe based products. Skills development is
    required, training on processing methodology, use of equipment, small scale business development
    etc..
•   Financial assistance is necessary to meet (i) the certification costs (ii) the pre-market finance –
    buying capital, and (iii) value addition/processing and marketing
•   Market risk. Currently there is no market assurance Guide prices from buyers locally and
    internationally need to be established and equitable trading linkages.
•   International buyer specifications for finished products are not know
•   Relatively high investment / capital cost of developing the infrastructure and equipment, training
    and extension to develop this sub-sector adequately to have meaningful impact in the Laikipia region.

3.4.2 Threats:
• Encroachment into arid areas for cultivation i.e. Nairobi area, farmers are uprooting Aloe
    secundiflora to make space for cultivation and pushing all the plants into a pile or using them as
    boundary mass but not re planting.
• Destruction and reduction in sizes, availability and productivity of aloe species most of which are
    in CITES appendix II.
• Conflicting land use in newly settled areas resulting to orchestrated Human- Wildlife Conflicts.
• Increase in small scale plots around the Nanyuki area threatening the Aloe lateritia population
• Population increase of people in Laikipia leading to loss of habitat


Susan Wren March 08. LWF, Kenya                                                                          39
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


•   Increase in Greater Kudu populations on large-scale ranches and community group ranches. Kudu
    LOVE aloes and will decimate populations completely.
•   Increasing elephant numbers altering the vegetation dynamics creating open grassland. This
    behaviour will be a threat to certain Aloe species not all.
•   Lack of knowledge in communities of the importance of Laikipia’s succulent plants, incl Aloes.
•   No sustainable wild harvesting / domestication protocols as statutory required of aloe
    commercial utilisation have been established as yet.

3.4.3 Strengths
There is presently a huge demand for aloe extracts, both in Africa and internationally. Production of the
correct plant material can give rise to three production channels to produce aloin gum, clear gel, whole
leaf gel and aloe crystalline powder.
• The plant is known by the pastoralists and is within their system of indigenous knowledge
• Drought resistant crop and can survive during times of drought
• The dry leaves of Aloes are also livestock fodder,
• Low skill requirement for processing. The skills required for the processing of wild harvested aloes
     is no greater than that required of beekeeping
• Enrichment planting can be undertaken to stabilize and enlarge the crop to ensure resource
     sustainability.
• Large resource base. Once the realistic assessment of volumes is established, production and trade
     can take place quickly and on a relatively large scale – impacting on large numbers of rural
     communities.

3.5.4 Opportunities
• Aloe is known by the pastoralists and is within their system of indigenous knowledge
• Low skills requirement for the processing of wild harvested aloes is no greater than that required of
    beekeeping
• Domestication can be undertaken relatively easily to enlarge the crop to ensure resource
    sustainability.
• Aloes products are well known in external markets and are considered ‘high value’ products.
• Strong potential domestic and sub-regional markets for finished ‘shelf ready’ aloe products
• It is a drought resistant plant
• Viable profit margin can be made at relatively low risk, in business terms, providing that the
    appropriate markets are targeted. Very few inputs will be required for the establishment and
    management of the crop as it is already in existence.
• Labour in the main input required to harvest the product. This is abundant and inexpensive in global
    terms.
• Technical knowledge exists in the East African region on the development of the main products and
    the by-products. This can be prepared as a set of technical operational manuals that can be used as
    a training resource for the collection/harvesting and processing and of the plants.
• Multiple natural products can be handled through the same supply chain and processing centres,
    certification system and by the same communities once identification and evaluation has been made
    regarding feasibility, viability (economies of scale, pricing and market demand etc) and sustainability.
• Market studies can be readily conducted, as information is available through known market contacts.
• Market linkages, initially to domestic industries and sub-regional consumers are relatively easy as
    the product is established in a number of nationally and regionally consumed bodycare and health
    products. International market demand remains strong and the potential for ethical trading
    relationships with international buyers is good.

The defining factors between success and failure of a community based aloe enterprise will be the
marketing of the value added aloe products as inputs to domestic industries and the ability to source the
capacity locally to manufacture the products to retail/market standards.




Susan Wren March 08. LWF, Kenya                                                                          40
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


4. Market Demand and Business Opportunities

4.1 Kenyan Market

4.1.1 Status
Aloe has been used throughout the ages to cure headaches, stomach upsets and many other ailments.
Aloe varieties in Kenya are traditionally used for the treatment of burns and cuts, acne and skin disorder,
stomach upsets, hair restoration and skin rejuvenation. Most pharmacy, cosmetics store and supermarket
in Nairobi have a number of pricey, imported products (mostly from the UK, US and Australasia)
containing varying degrees of aloe content - mostly promoted as ‘aloe products’ (i.e as the primary
ingredient).

The demand for both aloe bitters for medicinal products and aloe gel for bodycare and nutraceutical
products manufactured in Kenya is potentially worth over seven million shillings a year just at the middle
and upper income bracket of consumers. The potential market size at the lower end of the market could
be many times greater if the products are appropriately prices, as well as being effective and attractive.

However, the production, processing, product design and market orientation of commercialised aloe is
currently under developed. The established market is still almost entirely for aloe gum, the supply chain
from the harvesters to middlemen is not clear. Due to the multiply intermediate traders, the protectionism
within the market, the pricing is therefore maintained at the lowest price-taking level, and equitable benefit
sharing is non existent. For example; Mr. Aden Mohammed, a former food processor and aloe trader
since the early eighties, sold to Latif Wood Works, a major aloe traders based in Mombassa. The price in
1982 for 1kg of Aloe gum was Ksh30. He also started selling the aloe gum in Nairobi for Ksh55/kg. Aloe
sap purchased in the rural areas at that time (1982) was worth Ksh20-25 for 5 litres (4 to 5 litres of aloe
sap makes 1 kg of aloe gum).

4.1.2 Existing products and prices
The current price of aloe sap of Ksh 85 to 100 for 5 litres is still as small reward for a natural product.
Quality control is poor, and aloe sap price vary according to viscosity (as harvesters often mix aloe sap
with water to increase volumes). It is reported in the SNV study that poisonous aloe species could enter
the supply chain (such as aloe ruspoliana) as there is no traceability or governance regarding the areas
and the species harvested. Other species, such as aloe multicor has poor gum quality which can lead to
rejection of the whole consignment.

There are no manufacturers of aloe extracts, other than from aloe sap/gum, within Kenya. As there is
increasing demand for natural products and high importation of natural health and beauty care products,
there is significant opportunity to fill this void for the manufacturing and retail of good quality aloe
healthcare and bodycare products for the East Africa market.




Susan Wren March 08. LWF, Kenya                                                                            41
              Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Figure 12. The example below illustrated the products and prices of one manufacturer and wholesalers
based in Nairobi, Benhar Engineering Ltd.

     Aloe Product Range
    Product             Size        Ex Factory        Ex Factory           W/Sale       W/Sale      RRP Unit
                                    Unit Price        Case Price          Unit Price   Unit Price    Price


    Lotion              50ml           61.50             738.00              67.50      810.00       90.00
                       100ml           112.50            1350.00            124.50      1488.00      165.00
                       200ml           211.50            2538.00            232.50      2784.00      300.00
                       350ml           264.00            3168.00            291.00      3492.00      375.00


    Cream              75gm            75.00             900.00              83.25      999.00       112.50
                       125gm           144.00            1728.00            158.25      1899.00      210.00
                       250gm           298.50            3576.00            328.50      3936.00      427.50



    Shampoo            250ml           126.00            1512.00            140.00      1680.00      200.00
                       500ml           236.00            2832.00            263.00      3156.00      375.00



    Conditioner        250ml           121.00            1452.00            133.00      1596.00      180.00
                       500ml           240.00            2880.00            264.00      3168.00      340.00


    Prices Inclusive of VAT.
    Prices are those prevailing at the time of delivery and are subject to change
    We endeavor to deliver within 48 hrs.
    For Bulk Orders Please Contact Us




                           Value addition - Aloe products sold in Kenya




Susan Wren March 08. LWF, Kenya                                                                                42
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


4.1.3 Case Study. BIOP
Biop was established to commercialise the research finding and help alleviate poverty among the rural
poor through establishment of activities that will generate income. Before going under due to
mismanagement Biop had a monthly turnover of about 3,000,000 Kes with 50% coming from aloe related
product lines. Founded to provide a link between research findings at icipe and the market and owned by
Bridgeworks which is a venture capital company incubating and commercialising technologies addressing
key global concerns associated with soil, health and education. Ideas are carefully assessed for their
potential to contribute to solving a challenge of global concern and their economic viability.
Biop had a range of cosmetic, herbal and agricultural products this includes
    o Neem products - soaps, lotions creams, shampoos, neem tea and oil
    o Aloe products - soaps, creams, lotions, aloe juice, aloe capsules.
    o Agricultural products included organic fertilizers
    o Various herbal products for various remedies.,
Product development was carried out through consultation with various researchers of universities and
other institutions like Kenya medical research institute, university of Nairobi among others

The aloe sap was being bought from farmers and used to manufacture product. Manufacture of products
was carried out at the processing facility at icipe complex. Other products like soaps and tablets were
manufactured by contract out to manufacturing in Nairobi due to high initial capital required for the
equipment needs.

The products were distributed through super-market chains, retail shops located in various parts of
Nairobi, stockists located in various parts of the country, pharmacies and chemists. Some products were
sold during farming schools meeting with various farmers and even in agricultural shows and scientific
gathering. Equipment included:
    o neem oil cold presser,
    o grinding equipment
    o sacheting machines for herbal teas,
    o mixing vessels for creams and lotion
    o Capsulating equipment

4.5.6 Learning points:
Demand is likely to increase with supply, either as a substitute ingredient within existing product
formulations, as new attractive well branded and packaged products properly formulated for the African
market, and for semi-processed bulk export. The marketing, with the health claims associated with aloe,
need to be accompanied by nationally and internationally recognised certification endorsement. This
factor will become increasingly important to provide quality assurance and product traceability.

Drawn from field visits under this assignment and the Laikipia Aloe Bio-enterprise report, 2007
In order to cross these hurdles producer groups require
    • Training in production and harvesting protocols, according to the licensing requirements and
         sustainability/organic certification principals, product handling and processing protocols,
         organisational and management capacity building, record keeping and business management
    • Finance for the licensing fee / organic certification inspection costs / bar coding
    • Adequate management capacity to organise and manage the producer groups, recording
         systems and to ensure compliance is maintained.
    • Combine efforts to achieve economies of scale
    • Working with service providers to enhance expertise in business planning and business
         development; utilize the local skills; utilize local service providers
    • Improve processing facilities and skills
    • Enhance learning through exchange visits; experiential learning etc.

Drawn from the Coastal Aloe Business Report (DANIDA- ABD)
During the workshop small and mico-processors expressed the following:
    • Create a central processing unit: For quality control


Susan Wren March 08. LWF, Kenya                                                                       43
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


    •   Self-regulatory mechanisms for quality control (Associations)
    •   Further training to improve quality: quality control
    •   Monitoring & control of quality
    •   Lobbying for aloe guidelines
    •   Enable centralized standards
    •   Marketing
    •   Monitoring
    •   Training on sustainability of businesses

Drawn from the BIOP experience
   • Business management skills are critical for enterprise operations
   • National/regional market is sensitive to product quality, product development to match the quality
       of packaging of competitive imported brands is imperative
   • Nature based enterprise should adopt value chain approach in product development and
       distribution in order to get a substantial market share

Due to the growing interest in health matters, off the shelf beauty products and the concerns about
product quality, there is significant scope for well formulated, quality endorsed and attractively
packaged/presented aloe based products in Kenya.


4.2 African Market

The sub-region and Africa in general provides a huge potential market for processed aloe products from
Kenya. The imported aloe based products are prohibitively expensive for the average African consumer.
Many African consumers are becoming aware of the benefits of aloe to human health and are also
seeking complementary supplements that can support and assist in controlling many modern lifestyle
related illnesses like diabetes, hypertension, obesity and stomach ulcers, to treat skin ailments and
dysfunctions, such as from the effects of HIV/AIDS.

Products manufactured in Kenya to international quality standard established for aloes based products,
and certified will more readily access markets across the African continent and in the Middle East. As
shown by the company Ikhala in South Africa, product branding and certification provide real competitive
advantage in a market dominated by imported, affordable (to the top and middle income brackets) and
attractively presented aloe products.


 Example of Product Branding - Ikhala for Men by Ikhala Products (Pty) Ltd. (www.ikhala.co.za)
 Ikhala is a successful example of rural community development through the commercialisation of indigenous
 natural resources. The Public Private Partnership has led to the skills development and to
 the raising of living standards for an estimated 1000 workers above the poverty line. Khala is made from naturally
 processed aloe ferox, an indigenous aloe growing in abundance in its natural habitat and endemic to the Southern
 and Eastern Cape region of South Africa. As a species that requires a CITES certificate for entry into international
 markets, the resource is carefully monitored and sustainably harvested. Historically aloe has been widely known
 and utilised as a base or additive in many cosmetics. However Ikhala has innovated both in its novel Joint
 Venture structure and also by its commitment to market a male range of cosmetics targeted at the Black African
 male. Focusing on the trend to market cosmetics to today’s modern man based on the efficacy and benefits of
 natural African ingredients, and thereby contributing to the social and economic upliftment of the lives of many
 rural South African people, is setting a leading example from a South African Company. Khala was formed as a
 co-operative to include marginalised rural communities, in order to create employment and income generation.
 The primary aim was to empower the local Aloe ferox harvesters in a partnership and share-ownership of the
 business on a sustainable level. A percentage of all sales of Ikhala is returned to these communities for further
 development and the improvement of their livelihoods. Ikhala has been manufactured as a committed response to
 the South African Government’s Poverty Relief Programme




Susan Wren March 08. LWF, Kenya                                                                                    44
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Again, the integrity of the product is of central importance. Marketing the benefits of aloe must be
supported by the efficacy of the product. The input of sound biochemical research, evaluating the health
properties of Kenyan wild aloes, and the best processing techniques that preserve these benefits, is a
fundamentally important component of the future commercialisation of Kenya’s indigenous aloe and the
future prospects of the related bio-enterprises. Partnerships should be further developed between
national and international research bodies in order to move this work forward to a higher level.


4.3 International Export

The opportunity for export to international buyers has already been harnessed, although for a very low
grade product in the most part, being aloe gum. The dealers export the crude aloe gum to countries like
China at US$2.40 to 2.70 (depending on the quality).

The potential for exporting finished products is limited and may not be competitive in most northern
markets with the large-scale plantation and manufacturing of aloe vera across the US and the developing
world. Unless the aloe products are well branded (story line marketing etc), have excellent formulation
and packaging (at least compliant to international market standards and competitive) and endorsed with
organic/fair-trade/IASC certification.

There is good potential for selling finished retail packed aloe products into the Middle Eastern market
providing the product is again attractive and well formulated, and preferable certified – although the
standards are not as rigorous as those in the EU, Australasian and US.

In the short to medium term, apart from small consignments of highly branded and endorsed finished -
retailed packed aloe products, the most appropriate section of the market to expand export into is the
semi-processed aloe extracts; i.e aloe bitters for natural health products and pharmaceutical use, and the
stabilised gel to the bodycare industry. Again, the criteria that must be met will include; good traceability,
statutory quality standard compliance, buyer specifications, preferably certification (organic and possibly
also HACCP for competitive entry to the health care industry). However, potentially, by far the most
lucrative market is the African market for (well formulated, attractively packaged, competitively priced)
finished aloe based bodycare and healthcare products.

An example of an aloe product wholesaler in the UK. Aloe Vera juice (formulation; aloe baradensis,
acrylates, phenoxyethanol, methylparaben, propylparaben).

Quantity Price Per Litre
 1 Litre      £11.45
 2 Litre      £10.70
 4 Litre       £9.95
 6 Litre       £9.20
  8 Litre      £8.45
 10 Litre      £7.70
 20 Litre      £6.95
 40 Litre      £6.70
 60 Litre      £6.45
 80 Litre      £6.20
100 Litre      £5.95




Susan Wren March 08. LWF, Kenya                                                                            45
                Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


  4.4 Summary of Market Characteristics

Aloe product                  Market size                                     Example Price range (2007-08)

Bulk aloe gum to traders in   Demand and price competitiveness of             Approx Ksh85-100/kg
Kenya                         Kenya aloe gum are inter-twined. World
                              demand remains high, but competition is
                              also high. (i.e demand is v. price sensitive)
Bulk Aloe gel to traders in   As above, the world demand for aloe gel is      No current supply
Kenya                         significant, offering good prospects
                              providing the export price is competitive
                              and the quality is acceptable to
                              international standards, preferably
                              certified.
Bulk aloe gum and gel to      Potentially high as a substitute ingredient     Aloe gum - approx Ksh100/kg
Kenyan based                  in existing product formulations. Price and
manufacturers of health       quality must be competitive with imported       No current supply of aloe gel
products                      aloe extract and preferably certified.
Bulk aloe gum, stabilised     Growing international market. The demand        US2.50 (Ksh185)/kg for aloe
sap and gel to export         will be based on quality endorsement and        gum. No current sale recorded
buyers                        traceability (trade and organic                 for aloe gel and sap
                              certification).
Aloe bodycare products        Potentially high as a there is a growing        Kenyan made aloe health
direct to national/export     interest and demand for healthcare              products are sold in Nairobi for:
market manufactured by        products in the middle and top brackets of      Ksh 50 for 100ml soap
small to medium scale         the Kenya/ EA market. Also a growing            Ksh350 for 200ml aloe lotion
businesses                    demand for authentic, feel good products        Ksh 225 – 125gm aloe cream
                              in the northern/western markets. Demand         Ksh 210 – 125gm aloe cream
                              based on quality and traceability               Ksh200 – 250ml aloe shampoo
                              (certification).                                Ksh180 – 250ml aloe conditioner
Aloe health products direct   As above                                        Kenyan made aloe health
to national/export market                                                     products are sold in Nairobi for
manufactured by small to                                                      Ksh 250 for 300ml aloe juice
medium scale businesses.                                                      Ksh350 for 200gm aloe capsules
                                                                              Ksh 220 – 125ml aloe bitters
Aloe bodycare products        Although this represents the lowest end of      Examples are Ksh50 per aloe
sold in local market          the consumer range, there is still a            product (Rumuruti women aloe
manufactured by small         growing interest, on top of the established     group) prices range from ksh 50,
scale village based           traditional use, in natural health products.    70 and 100 in the coastal region
enterprises                   Demand will be based on more on price           for aloe soap.
                              and functionality of the products.
Aloe healthcare products in   As above                                        Very few such products are
local market manuf-actured                                                    formally marketed
by small scale village
based enterprises




  Susan Wren March 08. LWF, Kenya                                                                             46
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


4.5 Legal hurdles
The aloe industry is lack of regulatory and guiding framework for the aloe sub-sector. The legislation
governing the exploitation of Aloes is addressed in different acts of different departments. For example,
the EMCA (1999) has been cited to ban the harvesting of wild Aloes in Samburu district, licensed by the
local county council. This is further aggravated by proliferation of myriad sub-standard and counterfeit
aloe brands that have no quality requirements or standard attached to them. These conditions have
created an environment of uncertainty and anxiety around aloe sub-sector, and thus hamper the progress
of harnessing the huge market potential for authentic aloe products.

Under the existing statutory requirements, every commercial operator needs to first gain from the KWS a
CITES permit and phytosanitary certificates for all exportation and importation of aloe products, or
derivative. Producers must also obtain, under CITES requirements, a certificate of proof of exploitation
from sustainable source; the Kenya government has brought about a section under the Wildlife
Conservation and Management Act to regulation domestication (‘artificial propagation’) as well as
exportation of indigenous aloe plant materials/extracts. It requires that all persons conducting commercial
propagation/domestication of aloe species must apply for inclusion under the Register of Artificial
Propagation of Aloe Species. KEBS must monitor the aloe operation for one year before issuing product
certification (diamond mark). An annual fee at a flat rate of Ksh55,000 + VAT is charged by KEBS. KEBS
also charge a levy of Ksh.1,000/mth for free testing of products.

Most small enterprises are yet to fulfill legal and statutory requirements for their businesses, thus
aggravating the competitiveness of the enterprises. Currently, the small enterprises that are within the
network of Coast Aloe Working Group (CAWG) are establishing a working relationship with the Kenya
Bureau of Standards (KEBS) with a view to aid the small-enterprises meet the statutory requirements of
licensing, certification, standardization and the attendant functions of quality control and quality
assurance. In addition, the small enterprises that attended the workshop organised by DANIDA-ADS are
considering forging closer working relationships with aloe service providers with a view to improve
technical and professional competencies of small-entrepreneurs.

The statutory requirements for retailing products in Kenya are relatively expensive for small scale
businesses. Government regulations require that all retail products should be licensed (high fee e.g.
Ksh.7,500) and display a trademark, which generally costs Ksh.8,000. VAT must also be paid (at 16%).


4.6 Quality Endorsement
There is no quality standard enforced by the KBS for retailed aloe products. This currently weakens the
potential of this market is that all aloe products are marketed on an equal footing. However, the actual
content of aloe in the products may be from less than 0.25% upwards. This reduces the incentive for
manufacturers to increase the aloe content to a more active level of over 50%. It is also results in poor
consumer reception and interest as the product is not bio-active and has very little additional beneficial
properties than any other cheap bodycare product.

To compete in the regional and global market product certification is very necessary to provide
endorsement of quality and efficacy of the product. This starts with the National Bureau of Standards
certification, licensed bar coding and third party verified certification of authenticity (traceability and
transparency of the unadulterated and natural status of the material). The latter can be provided through
internationally recognized organic certification. An internationally recognised certification scheme has
been developed and governed by the International Aloe Science Council (IASC); see below. The
certification scheme is widely promoted in the global market and subscribed to by commercial aloe
producers and processors (mainly of aloe vera) across the world.

The International Aloe Science Council - International aloe product certification
The International Aloe Science Council is a membership based, non-profit trade organization for the Aloe
Vera Industry world-wide. Membership includes Aloe growers, processors, finished goods manufacturers,
marketing companies, insurance companies, equipment suppliers, printers, sales organizations,


Susan Wren March 08. LWF, Kenya                                                                              47
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


physicians, scientists and researchers. Its purpose it regulation, promotion, standards setting and
certification, as well as information support and advice to its members.

The Code of Ethics for members is designed to promote and maintain the highest
standards of Service and Personal conduct among its members. The certification
program is designed to allow aloe growers, processors and manufacturers to submit
their facilities and products to a series of rigorous tests and audit program, which, if
they passed, allow for the certification of their aloe and aloe products and to display
IASC authorized Seal of Certification on all of their product and literature.

Subscribing to this certification scheme may be impractical and inessesible for most small scale aloe
operators in Kenya, however there is considerable scope and reason to developing a similar quality
endorsing certification system governed by the National Bureau of Standards ion the first instance.
Setting up an Eastern Africa Aloe Science Council, attached to the International Science Council should
be considered as a future step to promoting and regulating the aloe industry in the region. See Annex 1
for more information.

Aloe Council, South Africa
The Aloe Ferox industry in South Africa has given rise to the Aloe Council in South Africa. It function is to
provide a research and quality guidelines to the industry. The Aloe Ferox Trust was a founder member.
This company is also a member of the Society of Cosmetic Chemist and the IFSCC, which the companies
use as an endorsement of the integrity of their products.

HACCP
Hazard Analysis and Critical Control Points (HACCP) is a systematic preventative approach to food safety
and pharmaceutical safety that addresses physical, chemical, and biological hazards. HACCP is used in
the food industry to identify potential food safety hazards. Critical Control Points (CCP's) are taken to
reduce or eliminate the risk of the hazards being realized. HACCP is recognized internationally and
certification provides market advantage in a competitive global health product industry.




Susan Wren March 08. LWF, Kenya                                                                           48
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


5. Aloe Material Supply

5.1 Sustainable Wild Harvesting Protocols
Sustainable wild harvest standards are based on the assessment of compliance to sustainability
protocols. For internationally recognised certification, such as organic and FSC, protocols are based on
general guidelines and need to be developed for each situation, taking account of the distribution,
abundance and vigour of the plant species, historical knowledge of climatic and other environmental
stresses, and mapped (pref using GPS) to identify the harvesting zones and the harvesting rotation
across these zones. The protocols should include harvesting interval, parts of the plant to be harvested,
timing within the year and growth stage at which harvesting can take place, etc..

In the context of sustainable wild harvesting of indigenous aloe species, once the protocols have been
assessed and recommended by a suitable contracted botanist, these should be issued to the Kenya
Wildlife Service to establish level of compliance before approval for harvesting, processing and export of
Aloe products is granted by KWS. For the Artificial Propagation of Aloe Species KWS could then issue a
certificate of registration under The Wildlife Conservation and Management Act (Section 67 Cap376)

An assessment and mapping of the indigenous aloe across Laikipia is the first requirement for
sustainable wild harvest protocols and certification. This first stage has been already conducted in
specific areas by SNV in the 2007 SNV Sustainable Utilisation of Commercial Aloe Resources in the
Drylands Study.

The application for sustainable wild harvesting can be conducted along similar lines, or according to, the
established organic / FSC certification requirements, and through the development and management of
the ICS (Internal Control System) – a statutory requirement for group organic certification under
ISO65/EU and NOP/US.

The advantage of certification is that it provides access to premium priced-return in the international
market, and therefore provides an incentive to up-take of the protocols and compliance, encourages
cooperative approach the management of the indigenous resource, and provides third party verification
system – providing sound transparency and traceability down through the supply chain to commercial
partners/buyers.

5.2 Domestication Protocols and Standardised Techniques
KEFRI have drafted a code of practice for the domestication and commercialisation of selected
indigenous aloes, and have also developed propagation protocols. These will be provided to LWF once
they have been received from KEFRI.

5.3 Research and Development
Since the planting and harvest interlude is long, the Aloe bio-sector should be promoted in the context of
integrated Agro-pastoral systems. Provide education on the Aloe plant and its potential for multiple use.
Research is required to improve harvesting and processing efficiency Emphasis should be on continued
research on the bioactive elements of Aloes, improved propagation and harvesting methods and
processing of the products with a focus to adding value to those products.

Further, demonstration sites including school grounds should be established to support continued
research on Aloes and also provide information at accessible outlets to enhance local knowledge of the
resource.

Establishment of processing plants for locally consumable Aloe end products preferably in Aloe growing
areas identified as Aloe Management Units is recommended by the SNV 2007 study. This approach will
trigger demand for Aloe products and consequently spur large-scale Aloe production and diversification of
the resource uses. Provision of technical assistance for Aloe crop management though agricultural
extension services is recommended with a focus on training on value addition to support domestic
production for household use.


Susan Wren March 08. LWF, Kenya                                                                          49
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


6. Value addition

6.1 Physical value addition

6.1.1 Critical points for value addition of aloe products

Immediate Stabilization: Because Aloe loses its healing virtues within 4-6 hours after being harvested, it is
necessary to trim, clean, stabilize and seal the leaves/extract in 50 gallon drums within the first 2-6 hours
after being cut.

Carefully and Delicately Processed: No damaging filtering (No charcoal filtering), No strong solvents, and
No damaging centrifuging are used on any parts of this product at any time from field to bottle.

Aloe gel should be processed to protect:
    • the biological structure of all the individual nutrients and
    • the original biological design and balance of the aloe compound

Never Heat: No applied heat (zero heat) should be used at any time or in any part of processing from field
to bottle. This protects the Aloe's biological integrity and biological activity.

The majority of skincare products on the shop shelves in Kenya contain petroleum oils, parabens and
other derivatives, synthetic colorants and preservatives. These are degrading for the skin, and can act as
mild irritants to those of us with sensitive skin, causing it further stress and increasing the rate of aging.
No other ingredient harmful to you and our planet, such as GMOs and synthetic hormones, are used in
any of our products.

6.1.2 Processing Protocols and Standardised Techniques
The leaf of the Aloe plant consists of three different parts, yellow bitter sap, green peel and white aloe gel.
The bitter sap lies underneath the green peel. The sap drains spontaneously when the leaf is cut. The
inner fleshy portion of the leaf consists of a mucous material, named aloe gel, which has no bitter taste.
The green skin is also rich in nutrients and fibre. The leaves, from which the bitter sap has been drained,
are transported to the factory where they are washed, pressed or sliced and minced to form aloe gel. This
is further processed to create an aloe juice. or as an ingredient in skin care products. The dry aloe leaves
can also be crushed to form tea leaves or ground into a powder which is pressed to form fibre tablets

Processing Aloin
By placing the leaves at an angle the aloin, the first exudates from the aloe species, can be drained and
collected into a container for sale as a commodity. This can be done locally, in a very 'low tech' manner,
by harvesting the larger lower mature leaves and draining the initial greenish yellow sap that emerges
from under the dermis of the outer leaves into a pit or hygienic receptacle place in the ground. This
substance can then filtered later for clarity and cleanliness, before being graded for quality at a central
processing unit. (This unit can be the same facility set up for processing gums and gum resins with
separation handling protocols in place to ensure product integrity.)

The process of first extraction of the aloin from the leaf also removes the compound that gives aloes it's
bitterness. Thus the remaining leaf now minus the aloin gum can be further processed into other
products. This is most appropriate for drinks like juices and gels as well as facial cosmetics when the
extremely bitter taste is often considered unpleasant. Most fully processed aloe products sold in western
markets have had the bitterness removed.

Processing Gel: There are two types of gel that can be produced from the leaves:

(i) Inner leaf gel contains the clear liquid that is extracted from the inside of the leaf leaving the outer leaf
chlorophyll covering. This clear liquid can be used locally in production of soaps and cosmetics by
women's groups or by manufacturing enterprises in Addis. For the village level industries that can be run

Susan Wren March 08. LWF, Kenya                                                                                50
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


by women. Other inputs such as base oils can be sourced locally form NTFPs thus allowing further feeder
enterprises to be set up or incorporated into the main aloes enterprise thus expanding the whole
operation

(ii) Whole leaf aloe gel is the liquefied whole leaf containing the outer leaf covering, the inclusion of the
chlorophyll make the compound to be a much more volatile substance but it is still required by certain
markets as an input for specific products.

Simple formulation: Organic Aloe barbadensis Leaf Juice, Potassium Sorbate, Citric Acid.

Processing Crystals. The inner and outer leaf can be dried and be dried and powdered separately or
combined to remove the fluid content to < 5% or to a 1% concentration. What remains is a dried
substance that can be dried and powdered in a simple maize mill. The resulting powdered leaf can be
sieved to a required mesh size to remove impurities and large matter.

Aloin Oil or Oil of Aloes. One of the most valuable of the aloes products – can be produced by solvent
extraction thus cannot be done at a village level and is a very low yielding product.


6.1.3 Established Quality Standards and Labelling (GMP)

Good Manufacturing Practices and HACCP. See Annex 10.

Certificate of Analysis - Each raw material is accompanied by a Certificate of Analysis verifying material
source and content.

Micro-biology testing.
Full time bench chemists take product samples from the beginning, middle and end of every production
run. These samples are tested to make sure that the product is within quality control specifications. In
addition, samples from each production run are sent to an outside lab for additional microbiology testing.

International Aloe Science Council (IASC): A non-profit regulatory agency that helps monitor Aloe
quality and content in Aloe Vera products around the world. The proposed Kenya Aloe Science was to be
instigated and developed to provide a similar facility and services.


Example in the text box below of a company aloe products endorsed through multiple certification.

 ALOE WELLNESS AUSTRALIA is the largest grower, processor and exporter of top quality Aloe Vera products
 in the Southern Hemisphere. With fully vertically integrated company, which means full control over all aspects
 of the operation, from planting in the farms to when the finished product. The company has a range of 30
 packaged products under the ALOE WELLNESS AUSTRALIA brand including the Premium Aloe Vera juices
 (drinking gels), therapeutics, cosmetics, and beauty products in addition to a complete range of Aloe Vera raw
 materials. The company has high ethical standards and a strong commitment to provide customers with only
 the best quality products. The company has developed its private label and R&D services, and is certified by a
 license from the Therapeutic Goods Administration of Australia (TGA) and operate under the world standard of
 Good Manufacturing Practices (GMP). The processing facilities are certified organic by BFA (No. P479). Quality
 standards are maintained at a high level; once the leaf arrive at the processing plant the production starts. After
 an initial inspection the leaf are sent through a 7-stage cleansing and preparation process. Once the pure gel is
 extracted from the leaf it is stabilized and pasteurized, before being bottled or formulated for further processing.
 Processing technicians monitor the operation from start to finish and tests are conducted at several stages
 throughout the process.




Susan Wren March 08. LWF, Kenya                                                                                         51
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


6.2 Certification - Non-physical value addition

Certification provides non-physical value addition, and serves more purposes than control of compliance
alone. The certificate communicates to the consumer that certain standards have been met in the
production and provides buyer confidence in the supply chain. Certification therefore is a useful tool in
building partnerships along complex and international supply chains.

The assessment of sustainability threshold for wild harvested plant products, according to certification
protocols, and the organisation and structuring of the producer groups and the education of the wild
harvesters as to the criteria of a sustainable commercial operation, is a core criterion. The majority of the
supply will be sources from the sustainable wild harvest of indigenous plant products.

6.2.1 Organic
With the growing market for organic products, many countries have developed national organic
regulations to be able to protect producers and consumers against misleading organic claims.
Certification provide transparency and traceability, therefore all parts of the chain, from the small producer
to the consumer must be recorded and operated to international approved certification standards. Also all
processing equipment and storage facilities must be included in the inspection process. An organic
certificate relates to the land on which the product is grown or harvested and the system involved. For
small scale producers to be economically certified an internal control system must be developed and
managed, as mentioned below.

Organic certification provides non-physical value addition, and serves more purposes than control of
compliance alone. The certificate communicates to the consumer that certain standards have been met in
the production and provides buyer confidence in the supply chain. Certification therefore is a useful tool in
building partnerships along complex international supply chains.

The assessment of sustainability threshold for wild harvested plant products, according to certification
protocols, and the organisation and structuring of the producer groups and the education of the wild
harvesters as to the criteria of a sustainable commercial operation, is a core criterion. The majority of the
supply will be sources from the sustainable wild harvest of indigenous plant products.

In most importing countries description of goods as organic requires formal certification in accordance
with legislation. Import regulations for organic produce apply in most markets as well - for example, an EU
importer must be both certified by an accredited certification body and also registered with the national
organisation responsible for organic legislation. The importer must then obtain a permit covering each
product to be imported from each source, unless the country of origin and the relevant certification has
been accepted by the EU as equivalent - achieved by few developing countries. Exporters should confirm
with their customers that the necessary registrations are in place before shipment takes place. Details of
specific regulations affecting organic imports into target markets can generally be obtained from the
importer’s organic certification body.

In the European Union the basic regulations on organic food products are set out in Council Regulation
(EEC) No. 2092/91. The administration and enforcement of organic standards are carried out by national
authorities. A consolidated version of the 1991 Regulation and is at
www.organicts.com/organic_info/certification/links/index.html . This regulation and subsequent
amendments establish the main principles for organic production at farm level through to the end buyer
(the consumer) www.ifoam.org www.soilassociation.org In the United States, the National Organic
Program (NOP) came into effect in October 2002, and is administered by the US Department of
Agriculture. More detailed information on the NOP is available at the USDA NOP web site
www.ams.usda.gov/nop Organic regulations for plant based products took effect in Japan in 2001
Organic products must carry the mark of the Japanese Agricultural Standard (JAS). In general, the
regulations require the registration of certification bodies, as well as the certification of operators by
registered certification bodies based on the technical criteria for certification. For details see
www.maff.go.jp


Susan Wren March 08. LWF, Kenya                                                                            52
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


6.2.2 Fair trade:
In the international market, fair-trade is an identified sector and products labels fair-trade often receive
price premiums and, in general, higher demand. The fair trade initiatives try to provide better market
access and better trading conditions to small farmers. This includes a price premium for producers to be
invested in social and environmental improvements.

The Fairtrade Labelling Organisation (FLO) is becoming the most well known, marketed and promoted
international fair-trade label in the global market. FLO mainly catering for food product labelling. It must
be emphasized that essential oils are not current covered by FLO certification, however herbs and spices
are covered. Some certification agencies have arrangements for fair trade and organic inspections to be
carried out together. An example of this concept is BioEquitable in France (with fair trade inspections
combined with Ecocert organic certification).

Fair-trade certification involves the training of the participating companies and producer associations, the
lead farms in the communities and field staff in the necessary standards and protocols. Traidcraft and
Max Havelier are examples of private fair-trade certifiers.

6.2.3 Wild Harvest Standards.
The development of sustainable wild harvest standards is imperative where products are sourced from
indigenous resources. Sustainable wild harvest standards are devised to ensure that wild production
comes from a clearly defined area and using methods that meet FSC international standards criteria. The
Forest Stewardship Council (FSC) is a body that has been setup to certify organic, sustainably produced,
timber. Certification criteria for non-timber forest products being part of the forest have developed out of
that. Their standards are therefore generic and for forestry certification – initially for timber. The non-
timber forest component to these standards has been developed over the last five years. Other labels
also exist which covers sustainable wild harvest of products. The Rain Forest Alliance in Southern
America have their own labeling for sustainable wild harvest. EcoCert has been active already in Africa
Region, such as in Zambia, in the certification of wild harvested products, but under ISO65 organic
standards. Soil Association also provides certification of sustainably wild harvested honey in Zambia
under the ISO65 organic certification system, and working in these honey areas for almost 15 years ago.

Woodmark, UK, is an independent company that works as an inspection and certification agent for FSC
(Forestry Stewardship Council), and act on behalf of FSC to train producers in sustainable wild harvest
and to prepare them for certification. Their separate company, Ecosylva provides inspection. Sustainable
wild harvest certification can be developed to dovetail with organic certification. There is a project
developing to provide certification of organic and sustainable wild harvest and achieve separate product
labels through collaboration with Woodmark and the Soil Association. This system would utilize the same
ICS, the same documentation, but add on the other measures that sustainable wild harvest standards
would require over the standard organic certification criteria.

In Namibia there is an NGO called Pytotrade that has been working with SanProta which has set up a
project for sustainably harvested wild devil’s claw. It has now exporting about 1,000 Tonnes of devil’s
claw, worth 2.7 million Euro; it involves about 400 000 hectares. This has been certified for 4 years by the
Soil Association using their own non-timber forest products standards. See Annex 11.

6.2.4 Developing the Internal Control Systems for Producer Group Certification.
The development of internal control systems is necessary to fulfil the international requirements for the
organic certification of producer groups. ICS also minimises the overhead costs of certification and
provides a traceability system within the supply chain. Training in the setting up and management of
Internal Control Systems for Producer Group Certification is required by most of the selected companies
and associations. This same structure (ICS) can also be used for other certification systems such as for
fair-trade and sustainable wild harvest.
(i) Producer group development:
• Initial assessment for suitability for certification and realistic export potential
• Training of extension staff and lead farmers in the organic production and processing
     techniques/methodologies

Susan Wren March 08. LWF, Kenya                                                                            53
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


•   Demonstrations and field days
•   Development of demonstration sites within each community/village and the producer group (in
    walking or cycling distance of all members).
•   Nomination of internal structure to the group, with co-ordinator, and farm group managers (within
    each geographical area or village within the producer group).
•   Training of extension staff, producer group co-ordinator and lead farmers in organic certification and
    product development for the export marketplace
•   Product selection if required. Training in detailed production/processing techniques for the specific
    products concerned
•   Market contact established for the potential supply.

(ii) Preparation for certification:
• Training of extension staff, producer group co-ordinator and lead farmers (group managers) in the set
      up and management of internal control systems.
• Intensive training of extensionists and government field officers as support agents if required.
• Extension staff and lead farmers (group managers) train their farmer groups (referred to as ‘pod
      groups’) in all techniques of production, processing, and certification criteria.
• Regular assessment (at least 4-5 times prior to first inspection) of progress by a ‘Training and
      Extension Manager’, if available, and additional group trainings inserted as required.
• Reporting structure identified and fully in place. The group manager, (if not literate but the most
      suitable and respected person for this post, then he/she works with a fully literate secretary) operating
      to collect information for each farmer/wild harvester member at village level (within the ‘identified
      group’) working with an extensionist (know as the ‘supervisor’, often working with the support of the
      Government field officer) collects information and checks each farmer. The extensionist will conduct
      this activity with several other groups in his working area (numbers of groups he works with depends
      on the size of the area concerned and numbers within each pod group. Maximum group size is 50
      farmers/extensionist).

(iii) Pre-certification activities:
• Preparation for first certification completed – accurate mapping of area concerned, and of each of the
      farms/holdings, field histories, forward cropping program, (crops, yields, harvest dates etc) and a
      tight, transparent and traceable system in place to ensure the accurate translation of information from
      the field to the office for the total membership of the producer association.
• Information then collated in a recommended recording system by the producer groups co-ordinator.
• Preparation for the inspection round of several (usually up to 18) producer groups to be inspected
      one after the other. Transport and accommodation arranged to allow for time and motion efficient
      inspections (cutting down on overheads of time).
• Inspection reporting is supported by the Association’s or company’s management personnel to
      ensure that the information is well understood by the inspector and the producer.
• Follow-up after the inspection to help the producer group managers and co-ordinators understand the
      certification decision document and to put in place any of the recommendations or to address the non
      compliance items by the specified deadlines.
• Training up-dates continue in the year. The procedure starts again before the next inspection.

(iv) Internal Control Systems Training Course: Once the well structured producer groups have been
selected for organic certification, a 3 day training course is advised to develop the management required
for the groups to set up and operate an internal control system.
1. To build technical knowledge of the field supervisors and field officers to understand the ICS
2. To generate principles of practice on how the ICS in the context of the region, the products and the
producer association/co-operative structure.
The training course should target the following: Overall Manager, ICS Field supervisors / extensionists,
Producer group ICS data officers (existing producer group secretaries, Producer group representatives
(existing producer group chairmen), Purchasing officers, Receiving officers, and Government staff.




Susan Wren March 08. LWF, Kenya                                                                             54
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


6.3 Product Design

6.3.1 Taking aloe raw materials to a commercial retail product
There is a great deal of confusion regarding Aloe products. The main aspect is regarding the viscosity of
aloe products. Consumers expect Aloe Juice to look and feel like Aloe Jelly, but in reality the jelly like
product is made by adding a thickener. The most common thickening agent is a combination of
Carbomer (a.k.a. Carbopol) and TEA (Thiethanolamine); however there are a few on the market that use
a gum like Xanthan or Guar Gum. Carbomer and TEA chemicals that work in conjunction to create a
synergetic force that both thickens and changes the surface tension of any water based product, thus
creating a jelly. The aloe gel fillet reduces to a liquid when filtered and pulped.

Large-scale commercial manufacturing is mainly carried out in South Africa, US and Australia. The
retailed Aloe Juice is created by reconstituting freeze dried or spray dried aloe powder with deionized
water to a single strength equivalency (SSE). Once the Aloe Powder is reconstituted the finished product
requires preservatives in order to remain stable. For cosmetic purposes, aloe must first be preserved. If
you make a product using this unpreserved aloe the product becomes unstable, despite preservatives
added to the finished product! You must start the formulas with stable ingredients. The only way around
using preserved Aloe Juice is to formulate using Aloe Powder, Aloe Oil or Aloe Butter and then use a
preserve such as Potassium Sorbate, plus Citric Acid to adjust the pH, as the safest and gentlest method.

Aloe Oil and Aloe Butter are created when the constituents of aloe are extracted into a carrier oil. The
aloe plant does not naturally create an oil or butter. Using Aloe Oil or Aloe Butter in a formula is a great
alternative to Aloe Juice because the butter and oil do not require preservatives. When creating a
product that does not have a water phase, formulating with Aloe Oil and Aloe Butter allows aloe to be
added simply to your product. Aloe Butter is created by extracting aloe into coconut oil. Aloe Oil is
created by extracting aloe into soy bean oil with added vitamin E to enhance the shelf life and antioxidant
properties of the finished product.

6.3.2 Formulation and processing quality protocols:
In Kenya there is considerable work that needs to be invested in product formulation. Most marketed aloe
products are not competitive with imported aloe products in their effectiveness and attractiveness as a
bodycare and healthcare product. The formulations are mostly not well researched, unstable (shortening
the shelf life) and do not act effectively. Most have an unpleasant smell (of cheap soap or plant based
odours) and textures. The formulations are also inconsistent and, in some case, are not safe to use (e.g
too much sodium hydroxide and other damaging chemicals). The minute level of aloe commonly used in
these formulations also belie their health product labelling / promotion, and has little impact on driving
forward incentive lead conservation of the indigenous aloe species and its habitat.

There is also much to be gained from the ‘lessons learnt’ in neighbouring countries. Due to increasing
publicity and demand, many companies moved into the manufacturing of aloe based products.
Unfortunately, many of these products do not contain much of the plant’s original benefits, as a result of
over-processing. Some claim to have removed the disagreeable taste of the plant’s juice, for example, but
in doing so they develop a product with low active ingredients, and/or have less than 10-15 percent aloe
content at best. Processing aloe to avoid the loss of essential vitamins, minerals and other active
constituents is very important to the efficacy of aloe based products.

6.3.3 Product Branding
Product branding is the non-physical value addition to a product that must be professionally and
innovatively embraced in order to maximise on market opportunity and competitive advantage. Product
branding includes the ‘story line’, the ‘feel good factor’ - the image that you are selling with the physical
product. An example of branding is illustrated by Ikhala, based in South Africa. This company has pitched
its marketing at a specific niche, its emotive ‘messages’ enhances its claims. See; www.ikhala.co.za

The focus of product branding is to generate product/brand lloyalty amongst the consuming public and to
increase market share. In the national market, aloe health and beauty products need to be target
consumer perception of aloe product as having better qualities than other available health and beauty


Susan Wren March 08. LWF, Kenya                                                                           55
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


products particularly the imported brands. As the health and beauty market sub-sector is relatively young,
consumer’s perception is largely subjective and is defined by consumer’s orientation that is defined by
values, beliefs, needs, experience, environment, etc. Kenyan aloe health and bodycare products will have
more appeal to consumers when the health properties of aloe are specifically promoted.

6.3.4 Packaging
A major factor of product competition is its customer appeal. Unfortunately the vast majority of aloe
products retailed in Kenya are both poorly promoted and poorly packaged. The level of competition
presented by imported aloe products, attractively presented and pleasant and effective to use, means that
this area has to be addressed in order to enter and hold a position in the middle and upper income
bracket of the national bodycare – healthcare market. In addition, these products have to compete with
conventional mainstream health and beauty products, now also increasingly using aloe in their
formulations and promotional materials. Clear packaging, promotional and marketing strategies are as
fundamental to natural products businesses as they are to all commercial operations.




                         Examples of aloe products retailed in Kenya

The basic legal and quality requirements for packaging are; KBS packaging compliance, tamper proof
lids, certification, batch sampling and quality control (pref HACCP), ingredient lists, bar code, clear
product pricing The characteristics of the aloe products assessed under the Coastal Aloe Business Study
identified that most aloe products are marketed in a very compromising manner (incorrect
spelling/grammar, lack of clear labelling, insufficient or inaccurate ingredient listing, no safety seal, poor
label design and affixment, poor quality containers and non standard product package size). The cost of
packaging ranges from Ksh5 for 25gm at over 2000 run of food grade plastic pots with screw lids, to Ksh9
for 200ml food grade plastic bottles with lids; Ksh10 for 50ml glass bottle with screw metal (plastic lined)
lids; and 15 cents for 100ml glass bottle with screw metal (plastic lined) lids and Ksh22 for 500ml glass
bottle. Labels are around Ksh9-12 per label for 20,000 labels; and the security seals are Ksh5/seal for
20,000 seals. Prices as quoted by suppliers in Kenya

6.3.5 Service Providers
There are a number of service producers offering services directly to aloe producers and processors, who
also create important linkages between producers and processors, such as the Kenya Bureau of
Standards, Kenya Industrial Property Institute, Micro-finance institutions, marketing institutions, and
buyers of aloe products. The most effective capacity building strategy for producer groups and bio-
enterprises focused on aloe commercialisation is to foster commitment amongst all parties to
conservation principals (sustainability of the species), business integrity and credibility. Lobbying and
advocacy mechanism need to be developed to assist with the ratification of aloe sub-sector guidelines.
This will then greatly enhance the competitiveness of the aloe industry in Kenya. The ABD workshop
proceedings in the Coastal Aloe Business Report record the range of relevant service providers in Kenya
and their area of activity. ABD promotes the need to standardise aloe-orientated services, and of forming
a curriculum or training module for aloe micro & small enterprises. The service providers could also assist
this sub-sector to develop quality assurance system and accredited certification scheme under the KEBS,
with the promotion of the associated quality mark, as well as facilitating a national level marketing
campaign to promote aloe healthcare and bodycare products.


Susan Wren March 08. LWF, Kenya                                                                            56
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


7. Business Development

7.1 Basic criteria for commercial bio-enterprise development

7.1.1 Competitive advantage:
As previously discussed, the main factors of competing in the international market are the price and the
quality. Therefore, in order to successfully serve a market it is vital to first ensure that there is competitive
advantage of the selected products. Bodycare products must be well formulated, packaged and price
appropriately to compete with imported aloe products of a similar kind in the national and regional market.

There is a strong competitive advantage for the production of a range of herbal supplements in the
national and regional market if quality endorsed (including reference to regular efficacy monitoring).

As the Laikipia is a unique and internationally revered location, and currently hosts growing tourist
numbers and numerous educational programmes every year, the development of education-tourism and
eco-tourism linked to an initiative.

7.1.2 Economies of scale
In order to enter the marketplace producers need to first identify the initial minimum supply levels. It is
then necessary to achieve the economies of scale that maintain the market position / open up greater
markets, to ensure equipment is efficiently utilised and down time is minimised, and the overhead, loan
servicing and investment requirements of operating a developing business are covered by adequate
turnover.

The slow progress of aloe domestication/plantations will mean that if aloe is only to harness from
domesticated/cultivated stock then the aloe scale up initiative will be protracted and the opportunity for
the aloe producers entering wider markets with value added aloe products would be limited to local
market for some time. The development of sustainable wild harvest protocols for the identified high aloe
population areas (such as in Mutara, Maundi in Mere, Pesi, Kiawara, Thome, Matanya, Kiamariga),
endorsed by the KWS, and extended to incorporation under the national the licensing agreement, would
allow sufficient volumes of raw materials and throughput to operate a medium scale factory and a range
of value added products for the national market (with capacity to scale up further to serve regional and
export markets).

7.1.3 Sustaining the market position
For the producer to reach and maintain a position in wider (national and regional) markets then to gain a
foothold in the international market, the two major factors are consistent quality and consistent quantity.
Both are equally important. Africa has gained a name in the marketplace for being ‘here today and gone
tomorrow’, and none more so than in the natural product sector. In order to meet the economy of scale to
service wider markets the producers, both large and small, and buyers/traders need to work in co-
operation.

It is vital for commercial operators and the associated producer groups to gain sufficient market
knowledge before undertaking production. Thus, ensuring that adequate market information is available
to the producer co-operatives/enterprises, to include relevant quality and market specifications is an
important role for the programme. The fostering of long term trading relationships is all highly important
for the bio-enterprise to ensure the viability of the investment (costs recovery over successive seasons)
and sufficient annual profits to continue to build and expand the enterprises. The buyer also needs to
secure the quantity and quality of raw or semi-processed material supply; his business is dependant and
meeting the orders of the manufactures or retailers. Therefore the establishment of long term trading
relationships is both advantageous to the producer and the buyer.

There are international aloe companies who may be interested in provide a good working relationship
with aloe producers in Laikipia – or investing in a collective aloe enterprise and factory.



Susan Wren March 08. LWF, Kenya                                                                               57
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


7.1.4 Producer group capacity

Organizational and management ability: A careful assessment must be made of the organizational and
management ability of the producer group/association/co-operative and commercial operator. The
majority of the project effort will need to be placed in developing well organised, structured and technically
competent groups/co-operatives, and then in the relevant technical skills development. This input is not
technically demanding, but required significant manpower and time. A programme of training is required
to enable the producers to operate efficiently, sustainably and viably to achieve market entry and sustain
the business, and for replicable models to emerge within the programme term.

The piloting phase will enable the programme to make a grant to the set up of the operations and then
later assist the co-operative in seeking affordable loans for the expansion of these pilots into fully
commercial enterprises. Strategic grants and loans can be also provided to the producers groups as a
participatory activity, carried out in conjunction with the commercial partner.

The geographical logistics will also need to be carefully considered when selecting appropriate
producer groups and organising infrastructure, for example; the distance between commercial
entrepreneurs and small grower group operation (transport, extension, management considerations).




Capital investment and risk bearing.
If community owned aloe bio-enterprises are developed to make an impact on/change in the utilization of
the natural resources in the target region within a reasonable time period (i.e 5 years) it is necessary that
the economic huddles are crossed in a manner that does not distort or greatly compromise the future
independence of the enterprise. This is one of the most difficult balances in development to understand
and to achieve. Even when structured as producer groups, in practical terms, the rural communities rarely
have the capacity to bear the risk and raise the necessary capital.

External grant or loan assistance is therefore required to reduce the risk bearing sufficiently to enable
commercial viability from the one-set. The business planning should be undertaken with the involvement
of the producer associations so that the business requirements (investment and breakeven points) are
well understood by all parties, including the level risk involved.

Ownership: If this is achieved before the development partners are introduced there is then a strong
chance that the community will full own and drive the enterprise, accept the responsibility of the
investment and of further requirements and risk bearing as the operation grows.

Phased development: In order to develop this initiative relatively quickly it is advised that the central
processing centre is developed for serving national markets, at the same time as the participating
producer groups at the community level are facilitated and trained in the simple processing techniques
(based at the depot centres) for small scale manufacturing of bodycare products for local markets.

As very little inputs are requires for the establishment and management of the crop - there is a clear
indication that the labour to harvest the product is the main resource input, along with the equipment
required to process, packs and transport the crop.

Susan Wren March 08. LWF, Kenya                                                                             58
             Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


There is room for a viable profit margin provided that the extracted aloe product meets international
standards, certification is gained and appropriate markets are targeted.

For the manual processing of value added products for the local market, with an output of less than 300kg
of product a month, only low cost processing equipment and infrastructure is required. Capital
requirements approx: Euros 7,000 -10,000

For developing a range of retail products for national and regional markets, with an output capacity of 10
tonnes of finish goods/month, the capital needed will be more in the region of Euros 120,000-180,000

For developing a range of retail products for export markets, with an output capacity of 50 tonnes of finish
goods/month, a significantly higher capital is needed; Euros 450,000-500,000


7.2 Infrastructure and Equipment

7.2.1 Depot centres
The construction of depot centres in key locations to serve the product groups clusters (focal areas of
production/sustainable wild harvesting) is fundamental to harnessing the opportunity to develop any aloe
product over and above crude aloe gum. The need to stabilise the aloe extracts is imperative within hours
of harvesting the leaves. The leaves should be harvested into a suitable basket to allow draining of the
sap away from contact with the juice/gel leave. The depot centre infrastructure and equipment should be
developed for each of, or at least two of, the following; dried (sap drained) whole leave, gel extract
(immediately stabilised with a suitable preservative such as sodium benzoate) and the sap extract.

7.2.2 Construction of the Bio-enterprise Central Processing Centre
From the evaluation process, it is clear that a central processing facility will assist producers to meet the
market demands for sustained quality and supply; i.e to ensure correct and consistent product handling,
final grading, high level maintenance of quality and hygiene standards, processing and packaging and
storage conditions. It will also serve to consolidate consignments and to serve the market outlets
effectively, transparently and commercially competently. Other bio-enterprise could also utilise the same
centre and share the operating overhead costs of operating the centre and its facilities. The centre can
also act as a commercial income generating entity in itself by providing demonstration, training and as an
eco-tourism attraction (including a natural products retail outlet – e.g Africa Rift Valley Products).

7.2.3 Harvesting and Processing Equipment
Semi-processing of the plant materials for sale in local and national markets will involve primarily the
following:

Harvesting: Food grade plastic baskets with inner mesh basket drying and milling. Modified solar driers
can be simply constructed (using thermos with clear drip space below.

Depot Centres: Solar drying equipment (with solenoid, thermostat, fan and baffles). Roller press. Food
grade storage drums for the separated sap. Food grade plastic storage drums for the separated gel/juice
(preservative will be added to stabilise the liquid, i.e sodium benzoate).

Central Processing Centre:

Option A: Small-scale processing factory operating to national standards, using equipment largely
constructed in Kenya

Equipment: A commercial maize mill with variable sieve sizes for grinding of the dried plant materials,
small secondary plate grinder, double jacketed heating unit, centrifuge, sieves,
Full processing of the dried and ground plant products into retail packed products (as body and hair care
creams, oils, scrubs etc) can then been made using stainless steel commercial equipment such as
mixers, blending vats, etc… These can be purchased in Nairobi imported new or second hand, or

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               Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


constructed. The packaging materials are the main item that needs careful evaluation regarding sourcing
appropriate type, at a viable cost and reliable supply.

Alternatively, final processing and distribution within Kenya and regional markets can be made through
sale to or partnership with a national commercial partner such as Pure Health or Universal Trading, a
pharmaceutical company in Nairobi.

Example suppliers of aloe processing equipment in Kenya
(Extract from the Coastal Aloe Business Report, ABD-DANIDA)

    Service              Site               Service category               Contact(s)     Telephone/Email/Postbox
   Provider
                                      •   Design & manufacture         Benson M. Mahogo
Benmah             Kariobangi             of machinery &                                  0722-237869
Engineering        Light Industries       equipment for extraction     Rachael Warucu     020-792865
Services Ltd       Komarock               of oil seeds, distillation                      0733-404468
                   Road,                  of essential oils, herbal
                   Nairobi                extraction and products                         Benmah
                                      •   Training on use of                              Engineering@yahoo.com
                                          equipment                                       P.O. Box 74364 Nairobi
                                      •   Training on micro-
                                          processing
Asami Limited      Downtown           Retails & Stocks                 Manager            0722-324945
(ASL)              Nairobi, Tom       •   Electric cup sealers                            020- 253464
                   Mboya & River      •   Safety sealing air-blow                         020- 253442
                   Road                   for bottles                                     Asamilimited2003@yahoo.co
                   Roundabout,        •   Polythene impulse                               m
                   Next to Khodja         sealer                                          Box 32910-00600, Nairobi
                   Mosque
ESDC,                                 Design & manufacture of          Eng. J.K. Kamau    0722-704410
Kenya              South C            machinery                        A.K. Koske         0733-952972
Industrial         Branch, Nairobi    •   Aloe extractor               D.O. Okach         020-603842/603493/609440
Research                              •   Soap plodding machine        C.M. Wanangwe      020-602817 (ESDC Direct
Development                           •   Bottle cupping machine                          Line)
Institute                             •   Volumetric filler
(KIRDI)


Option B: Medium scale processing factory equipped and operating to international standards

Equipment costs for a small factory (excluding installation, fittings, infrastructure) are as follows:
a) to process aloe juice - approx USD 150,000 to 350,000
b) to obtain concentrated aloe sap – approx USD 120,000 to USD 200,000, dependant on the actual
volume and selected technology
c) to obtain freeze dried – approx USD 1 million to 1.5 million. Spray dried - USD 200,000 to 500,000
d) to manufacture bodycare products - approx USD 60,000 to 90,000

Potential suppliers of aloe processing equipment suitable to import to Kenya
For example, please see Annex 6 Aloe Trade America.




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            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


7.3 Production and running costs

7.3.1 Product materials
(i)The purchase of plant materials from the producers of this and related bio-enterprises, such as;
avocado oil/pawpaw oil/ cape chestnut oil/borage oil, mango nut butter, nettle, comfrey, beeswax, honey,
henna, fullers earth, essential oils for the formulations.

(ii) The requirement for other non indigenous product ingredients which will include; borax (emulsifier),
benzion (preservative – naturally occurring such as in cranberry juice), iodine/cidar vinegar, alcohol (pure
from sugar cane industry).

7.3.2 Processing running costs, such as fuel, labour, transport etc. will also need to be carefully
budgeted

7.3.3 Packaging and promotional materials. Jars, lids, labels, security seals. Website, broachers,
posters, media articles and ads, market trials.

7.3.4 Trade finance
Lack of trade finance and capital hold back most groups from developing the business and sustaining
product supply. Trade finance and operating capital can be achieved through partnerships with ethical
financial investors and ‘Green Banks’ and also commercial partners. Joint applications with commercial
partners for trade support schemes such as the Dutch PSOM and the German PPP, or the EU CDE-
ProInvest etc can also provide a route to trade finance.


7.4. Value Chain Development

7.4.1 Management and organisation
Management and organisational capacity are fundamental aspects for successfully achieving the scaling
up of aloe based enterprises in Laikipia; this also required adequate financing and a third party
involvement to ensure good practice and transparency. Overseeing the conservation/ ecological
perspectives of wild harvesting and the source of material for domestication is also an important role and
one that can be governed through a management board comprising the right mix of parties with
conservation and ethical trade agendas from the pool of shareholders and advisors

7.4.2 Product flow
Once the producer groups harvest the plant materials and primary processing, as explained above, is
conducted at the depot centres, the aloe can then be developed at two levels; a) processing at the
community level for sale to local market outlets, b) the dried and extracted raw material is sent to the
central processing centre, where a full range of bodycare and healthcare products will then be made at
for national level market outlets (and in the second phase small export consignments for niche markets).
See the product flow summary below;

Harvesting fresh material – in specifically designed baskets and carried in to the depot centres
▼
Depot centre – graded, weighed, producer paid. Drying whole leaf / extract gel, stabilise and storage.
Transport bulk to the CPC. Alternatively, the extracts can be simple processing into bodycare products for
local markets
▼
Central producing centre – grading, milling, sieving and cleaning, mixing etc, and final processing and
formulation
▼
Market – (i) retail packed, transported and sold to national market outlets (ii) commercial partner collects
from central processing centre. Payment through bank account. Income to producers placed in each
micro-account


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Equipping the processing facilities at the central processing centre and training of the processing
personnel should take place in the first quarter of the initiative

There will be need for a purchasing agreement between the bio-enterprise for ingredient materials, i.e
between the essential oils and cold pressed oils bio-enterprise and the bodycare products bio-enterprise
for inclusion of these materials in the bodycare product formulations.

The participating producer groups at the community level are facilitated and trained in the simple
processing techniques (based at the depot centres) for small scale manufacturing of bodycare products
for local markets.

The central processing centre is also constructed and equipped in the first phase, to cater for this and
other related bio/NTFP-enterprise, thus enabling greater impact of this initiative in a short time period.

7.4.3 Developing producer group capacity
There are already some groups established and operating to produce bodycare products from aloe
extracts. There are two small commercial companies producing and processing raw materials, selling
high quality, hand made, retail packed bodycare products to national outlets (lodges, health product and
tourist orientated shops in Nairobi, etc). There is currently a low level of community involvement in these
operations, and in order to stimulate significant numbers of community members to participate in this bio-
enterprise type it will be necessary to take the following steps:
(i) Organise an exploratory visit for the interested groups to meet other producer groups who are
successfully processing plant materials and retailing bodycare products.
(ii) Training of the producer groups in the domestication/plantation and sustainable harvesting techniques
according to the defined protocols .
(iii) For processing at the community level, the producer groups will require training and financial
assistance to purchase the basic equipment and construct the simple processing rooms. Training of the
producer groups will be necessary in the basic formulation and simple production of small range of
bodycare products at the community level

7.4.4 Technical training of the trainers, extension and central processing staff
The majority of the project effort will need to be placed in developing well organised, structured and
technically competent groups/co-operatives, and then in the relevant technical shills development. This
input is not technically demanding, but required significant man-power and time. A programme of training
is required to enable the producers to operate efficiently, sustainably and viably to achieve market entry
and sustain the business, and for replicable models to emerge. Using the co-operative structure and
carefully evolving it to meet the commercial demands and market should be achievable. The piloting
phase will enable the programme to make a grant to the set up of the operations and then later assist the
co-operative in seeking affordable loans for the expansion of these pilots into fully commercial
enterprises. There is adequate capacity within Kenya to provide training in sustainable wild harvest,
domestication and cultivation of aloe, technical production and processing of aloe body/healthcare
products. This skills development will require on-going training input and guidance over at least the first 5
years. Expert advice can be readily sourced from specialists for product formulations (SW contacts).

7.4.5 Business capacity building
Assistance will be required to enable the producers to operate efficiently, sustainably and viably to
achieve market entry as agri-product businesses. On-going training in organisational structuring and
operational and business management will be crucial to the success of these enterprises. If successful,
replicable models are to be achieved it is also clear that there is a need to carefully evaluate and select
the most ready and able producer groups with which to work in developing commercial natural products
enterprise.

7.4.6 Supply chain development: Through a wide range of activities, including market information
systems, product research and development, trade promotion, direct technical support to producers and


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linkages to progressive fair-trade markets, a future initiative can assist producers to successfully access
and sustain their participation in the national, regional and global market for natural products. The main
focus is to develop business partnerships between rural producers and buyers. Suppliers must be
organised as producer groups under a strong structural framework, develop reliable and transparent
supply chains.

Supply chain efficiency: These steps should result in the sound functioning of the market-lead supply
chain for smallholder farmers and wild harvesters:

1. Increased access for smallholder farmer’s to relevant technologies and market information through
training, capacity building and the creation of marketplaces with requisite equipment and Internet access.
2. Increased ability of smallholder farmers to organise themselves into effective Producer Associations
capable of complex marketing and distribution operations.
3. Improved access to credit by smallholder farmers through revolving fund mechanisms tied to the
natural product enterprises.
4. Developing the necessary guarantee systems to gain organic certification, fair-trade or FSC (Forestry
Stewardship Council) certification; thus enabling access to incentives resulting from these internationally
accredited certification schemes.
5. Facilitation of public private sector partnerships
6. Value addition of the natural products by setting up the necessary infrastructure and operations for
product processing and packaging;
7. Establish product storage and handling systems and distribution networks;
8. Clear identification of suitable markets and market niches for the specific product types
9. Economies of scale reached through a careful and supported scaling-up process;
10. Viable and sustainable sales of the natural products reached and maintained through strong
extension support to the producers, and regular market interface by processors and traders.


7.5. Marketing

7.5.1 Core product attributes
The many Health benefits/claims, including the treatment of the many symptoms of HIV-AIDS, and to
treat other common major illnesses such as diabetes, stomach ulcers, bowel malfunction, skin diseases
and certain types of cancer (particularly leukemia).

7.5.2 Pricing policy
National Markets: The price will be more determined through negotiation with the identified companies, it
will be based on replacement cost of existing supply. Once market trails have been completed, the
information must be fed back to the product development activities. The products should be re-designed
or defined as information suggests. Re-trialing in the market will then be necessary until the products are
designed and formulated at their most attractive to the target market. Agents can be engaged to assist
this process (such as The Olive Marketing PLC, Nairobi). Once order sizes and prices have been agreed
these must be adhered to, therefore it is important that the enterprise feasibility captures all prior aspects
of ingredient availability cost of supply, cost and scale of processing, cost and scale of packaging and
transportation, time framed stages of enterprise development and gearing, cost of servicing the financial
loans or commitments etc… The guide product retail prices for the product range can be then more
reliably determined for negotiation with the buyers/retailers.

International market: Guide priced are available within the industry, these bench mark price can be
negotiated but price setting needs to be close to these established guides. However sale is made through
a commercial partnership the pricing will be determined by the risk and ownership factors (at what point
the essential oil or material is purchased, who owns the equipment and infrastructure, etc).

7.5.3 ‘Marketing the Story’. To further increase competitive advantage, an interesting and provocative
profile of the production, beneficiaries and incomes generation story should be developed as a central
theme to the promotion and marketing approach, and attractively presented in the publicity and marketing

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materials. This could include aspects of community trade/fairtrade (fairtrade certification), sustainable
harvest, (and organic certification) the positive characteristics of production and processing
methodologies that enable the involvement of women and the less advantaged members of rural
communities, etc. A website marketing facility will provide a significant global facility for promoting the’
feel good factor’ of the nature of this business approach.

7.5.4 Marketing pitches for possible product for the national and regional market:

Soaps & shower gel
Luxurious lather. Refreshed and clean

Cleansers
Eliminating environmental toxins. Formulated without detergents, sulphates or synthetic preservatives.
Relies on nothing other than nature. Hand crafted with the finest ingredients. Gently massage and
remove with warm water…
Facial lotions
Nurturing and nourishing

Facial toners
Also contain natural plant hormones affecting both firming and softening, reducing the appearance of fine
wrinkles

Hand and body lotions
Leaving skin sensuous, smooth and soft. Natural and therapeutic. Whole body effect, inside and outside,
as the therapeutic effect of the selected essential oils absorb into the skin has a deeper action on
repairing and renewing the skin tissue.

7.5.5 Promotional tools:
Tools: Website, media, product promotion within retail outlets. Also self promotion as an attractively
packaged and presented product, word of month as an effective high quality well formulated product

Activities: Product branding, story line development, marketing campaign to include endorsement by
national sports stars by sponsoring charity runs and games etc… Interaction with the tourist service
providers, lodges etc, encouragement to use and endorse the products to visiting tourists – using the
product branding and story

7.5.6 Example of potential commercial partners:
International Market: Wild living East Africa (Kenya / UK) – Rob Barnett, Organic Partners UK – Mike
Brooks, Earthblends Ltd - Darryn Payne,
National Market: Universal Ltd and Pure Health PLC, Kenya

7.5.7 Market research
Major brokers and traders publish regular market reports to advise their customers about supply, demand
and price developments on websites. Regular information on prices and market trends.
    • Price information on spices and herbs can be obtained from:
    • ITC - International Trade Centre Market News - www.intracen.org/mds
    • The Public Ledger Weekly publication on - www.public-ledger.com
    • CBI, Netherlands www.cbi.nl
    • FiBL Helga Will er and Minou Yussefi (Eds.) The World of Organic Agriculture Statistics and
        Emerging Trends 2004 www.soel.de/inhalte/publikationen/s/s_74.pdf
Also from:
Food and Agriculture Organization of the United Nations (FAO) Organic Agriculture, Environment and
Food Security, 2003 www.fao.org/organicag/
Organic Trade Services www.organicts.com Organic market forum with buyer and seller information,
news and statistics. Related sites: www.planetaorganico.com (Brazil)
Greentrade www.greentrade.net. Organic trade website linked with Organic Trade Services.

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            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


Food Ingredients www.foodingredientsonline.com Market information.
International Food Ingredients www.ifi-online.com

7.5.8 Relevant international trade fairs.
Excellent opportunity to gain an indepth understanding of market trends, met potential buyers, evaluate
new product designs, pricing development etc…The websites for suitable fairs are listed below:
    • BIOFACH Germany www.biofach.de
    • BIOFACH US              www.nuernbergglobalfairs.com
    • BIOFACH Japan           www.nuernbergglobalfairs.com
    • Natural products Expo( for US, Asia and European countries) www.naturalproducts.com

Nationals market surveys and consumer feedback questionnaires can be conducted by university
students (as arranged through organizations such as KOAN over recent years).


8. Developing environmentally supportive bio-enterprise

8.1 Potential ecological impacts of developing bio-enterprises in Laikipia
Natural resources have long played an important role in the livelihoods of rural people in the region;
however, the environmental impacts of large-scale commercial harvesting of natural products can lead to
unsustainable exploitation. Therefore a primary objective of supporting the development of natural
products commercialisation is to promote better environmental management. Sustainable trade in natural
resources creates an economic incentive for rural communities to actively engage in long term resource
management.

Wild collection of natural plant materials has long been a serious commercial activity, and has expanded
particularly in the last decade. These markets present real opportunities for rural small-holder farmers to
access providing transport and processing centres are organised effectively and the desired quality can
be reached and consistently maintained. The collection of these indigenous plant material present a
unique means to develop a viable enterprises for remote rural communities, utilising the existing natural
resources through sustainable management and harvesting methods, and providing an incentive for the
future welfare of these natural resources.

8.2 Sustainable production/wild harvest
Sustainable production is a critical feature of all indigenous plant product development and it is of concern
to the western market as well as the environmentalists. As previously identified, western societies are
becoming more concerned about the environment and the quality of the products they consume, the trend
in the marketplace shows that consumers are looking for a ’feel good factor’ to the product they buy,
therefore traders and retailers are keen to promote the right image of their companies and their products.

Bio-enterprise development can provided significant potential for both the disadvantaged rural
communities and the farming sector in Laikipia. The unique climatic conditions and access to a large
biodiversity of indigenous plant materials sets Laikipia apart as a highly competitive supplier of natural
and indigenous plant products, particularly when certified organic as sustainability produced or harvested.

8.3 Environmental and social welfare endorsing certification
Certification (organic and FSC) with the development of an ICS (Internal Control System) provides a
sound, well tried and tested structure for ensuring sustainability protocols are adapted and maintained by
the participating producers/wild harvesters, at the same time as providing competitive advantage and
price premiums in the international market.

The low processing overheads and labour cost also provides competitive advantage in global terms,
fairtrade certification to ensure that social and economic exploitation does not occur and commercial
partnerships are founded on ethical grounds not only protects the ethical integrity of these bio-enterprises
but also provides greater market leverage and, often, price premiums.

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              Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


8.4 Summary of the rational based on environmental and economic considerations

Aloe Enterprise Development

Aloe-enterprise type     Example plant        Rational based on environmental and economic considerations                           Area of the Laikipia
                         species
Aloe sap for bitters /   Aloe secundefolia    •   Available indigenous medicinal plant products that are established in the
aloe gum                 Aloe turkanensis         national, regional and international markets                                      To be completed after
                         …                    •   Plentiful and diverse in Laikipia, and several sub-species can be used            a detailed botanical
                                              •   National licensing scheme to regulate the industry now in place                   study
                                              •   For these species and others with commercial potential but readily destroyed
                                                  through exploitation, supply from domestication rather than wild harvest should
                                                  be ensured.
                                              •   Developing sustainable wild harvest supply will mean the establishment and
                                                  promotion of sustainable harvesting levels and protocols, and the enforcement
                                                  through externally (Organic and FSC) and internally driven (ICS) certification
                                                  and as part of the purchase criteria of the buyer/s.
                                              •   Developing the processing of herbal supplements for the African market is not
                                                  capitally intensive, and effective equipment can be inexpensive to purchase.
Aloe gel for             Aloe Lateritia /     •   African market for bodycare products is immense
Bodycare products        Gramanicola          •   Demand outstrips current supply for high quality natural ingredients based,       To be completed after
                                                  well formulated bodycare products                                                 a detailed botanical
                                              •   Due to the widely known properties of aloe there is low risk attached to          study
                                                  developing range of herbal remedies processed as easy to take supplements
                                                  and ointment/creams, retailed through local shops/clinics
                                              •   Already successful bodycare product enterprises operating in Laikipia region
                                              •   Community owned enterprises also exist in Laikipia, producing aloe based
                                                  bodycare products for the local market.
                                              •   Majority of ingredients can be sources and processed in Laikipia
                                              •   Processing equipment is relatively inexpensive
                                              •   This bio-enterprise type can operate in synergy with other bio-enterprise
Aloe leaf powder         All sps              •   Herbal supplements into established national and regional markets.
                                              •   The quality parameters are easily controlled and met at the processing stage,     To be completed after
                                              •   Equipment is simple and not expensive to purchase/construct                       a detailed botanical
Aloe tea bags            All aloe types       •   Processing is also simple and inexpensive,                                        study
                                              •   The nationally based company, Meru Herbs, can provide a sound commercial
                                                  partnership




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9. Business operating structures and management capacity

9.1 Structure of the business and financial management entity
An analysis has been made of viable and feasibly options for developing a successful working structure
for developing bio-enterprises in Laikipia, these are outlined below. The most suitable structure can be
readily evaluated from these options; however financial consideration, the involvement and commitment
of the LWF and other potential stakeholders are primary factors in determining the most appropriate
approach.

9.1.1 Commercial bio-enterprise trade association
The development of a commercial bio-enterprise trade association could be set up to comprise
representatives of all the existing bio-enterprises in Laikipia, and provide a representative and co-
ordinating functions, and operates promotion and marketing roles for the member bio-enterprises. It can
promote bio-enterprise options to stimulate formation of new producer groups through publicity materials,
demonstrations and training sessions provided by partner NGOs, such as SITE, KOAN, LAB and ICIPE.
The trade association would be inexpensive to operate and would need only one full time co-ordinator to
arrange and carry out the basic functions

9.1.2 Stakeholder owned bio-enterprise company
A stakeholder owned bio-enterprise company could comprise a wide range of shareholders from small
scale producer associations, existing bio-enterprises, commercial ranchers and the tourist lodges /
ecotourism enterprises in Laikipia. The company could provide a stakeholder owned trading facility for the
natural products. It can provide services such as product promotion, marketing, pre-market finance for
seasonal purchases of its shareholders (through organised pre-agreement with the company
stakeholders), create economies of scale by consolidating consignments of the bio-enterprises, soliciting
funding for training and expert advisory input to product design and development etc, trade fair
exhibitions/representation, arrange micro-finance facilities for its small scale members, act as an
intermediate buyer for its members, conduct sales and distribute dividends to the stake holding members
from premium returns (i.e from organic and fairtrade premiums). The stakeholder owned company can
also own and run the central processing facility for the selected bio-enterprise previously discussed in
earlier sections.
The company will need to raise sufficient funding to at least employ an accountant, an executive
manager, an operations manager and a secretary, and for its marketing and promotional activities, trade
finance and micro-credit facility for its members. This could be achieved through trade support schemes
(PSOM/PPP/CDE etc) but significant financial investment from the main stakeholders may still be
required in order to fully operate the company in its first few years from inception. Eventually it will reach a
position where it can operate effectively from profits, i.e by taking an operating levy (example; 1.5%) from
all sales made through the company.

9.1.3 NGO with service providing facility
A membership organisation with NGO status can be developed to provide a co-ordinating role and
service provision to the bio-enterprise members. The services could include marketing and promotion
(website, trade fairs, buyer missions etc), training and extension support, certification and business
development support to the members. As an NGO it will need to solicit funding to support these activities
and to expand its service provision to the members. It will need 4-5 management staff, an accountant and
an extension team, vehicles and an office in order to operate effectively. This will cost at least Euros
250,000/yr if it includes adequate extension facilities and operating capacity.

9.1.4 Trust with separate commercial trading and charitable status
In several situations across the world very successful commercial agi/bio-enterprises have been set up
and operated through a Trust structure. The Trust can comprise two independent operating components;
a separate commercial trading arm and a charitable status under which a service providing facility can be
supported. This provides the Trust the opportunity to fund raise, operate grant supported services and
facilities to its stakeholders through its NGO charitable status entity, and the full advantage of business
and trade through its ownership of a full commercial PLC/LTD company. The Trust provides the potential


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to bring in charitable funding to assist its commercial operations and grant aid to support the provision of
services to its small scale producer members through to the larger bio-enterprises. The commercial
company arm has also invested some of its profits (this reducing tax burdens) into the NGO arm on the
Trust to support the bio-enterprise development activities. A Trust structure such as this can also attract
investment from ‘Green Banks’ / ethical investment companies such as Triodos, Rabobank and shared
interest, and from commercial partners such as those preciously cited.

One design idea for the commercial trading is for an ethical investment company to provide >49% of the
initial equity, this would be held in ‘trust’ for release to the small scale producers after the third year when
they have achieved sufficient income from sale to buy the shares. The share price would be released at
the initial value. In this way an interest free loan for the company is achieved at its initial development
stage and affordable shared made available to the smallscale producers of the bio-enterprises at the
point when they are able to purchase them. The remaining shares can then be purchased by major
stakeholders (incl LWF) and also by commercial business partners.

A similar model, developed for small scale coffee producers in Bolivia, expanded to the degree that the
shareholder producers owned shares in a chain of coffee shops/cafes in the US.

9.1.5 Legal framework
To evaluate further the legal framework for a Trust structure illustrated above, a meeting was held with
Rupert Watson, a Kenyan resident lawyer with strong conservation interest and experience in terms of
legal frameworks for conservation initiatives, and also in the setting up and running of Trusts in Kenya. He
confirmed that the proposed Trust structured with separate trading and charitable status can be set up as
a legal entity in Kenya under the existing law. The Trust itself has charitable status and would finance the
service providing facility to the producer associations, etc. The Trust can own a fully operative limited
liability company that would develop its business operation independently to the Trust. Rupert Watson
offer to provide advice and the legal work required in developing such a structure, and is willing to provide
(free of charge) his professional input to a stakeholders forum/discussion on the way ahead.

9.1.6 Role of the Laikipia Wildlife Forum
The role of LWF could take several different angles, and is more specifically dependant on the;
(i) level of risk bearing, (ii) level of responsibility that is prepared to be taken (linked to the former), (iii)
management capacity, and (iv) financial capacity (or ability to raise and manage new targeted funding).
For further considerations please see Recommendations section 12.


9.2 Producer group structures and business operating capacity

9.2.1 Justification for Producer groups:
The need for creating, or facilitating existing, producer groups is justified in the requirements for; (i)
creating the economies of scale for basic traiing and skills development, (ii) maintaining sufficient supply
to operate depot centres efficiently, and (iii) to secure a critical supply levels to viably operate an aloe
processing factory/central processing centre, (iv) a requirement for developing organic certification
systems and (v) for micro-credit facilities. It is important to stress this point, as individually producers can
not easily access training, micro-credit, or afford transport, processing and certification to reach more
attractive markets than those locally available for aloe sap/gum.

Once the need for a producer group structure is justified, it is necessary to acknowledge the need of the
individual producers/harvesters to operate their own aloe businesses to optimum advantage. For
example; these group members are each responsibly for the success of their own enterprises within the
overall business enterprise of the group, they are also responsibly for the commercial success of the
group. Developing a system which guarantees cash payment on delivery of their raw or semi-processed
products (i.e at the depot centres), together with dividends earned through a shareholding in a collectively
owned company (see ??) will provide the incentive to work together and to promote and protect the future
of the processing and marketing company, but also gives the producer members independent control
over the income he/she earns.

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9.2.2 Producer group selection
In order to focus the activities where measurable results can be achieved products and producer
associations have to be carefully selected. Selection criteria can be based on:
    • The track record, good governance etc..
    • Potential for production, processing and marketing
    • Level of capital investment existing and required
    • Economies of scale can be achieved in a viable time-span
    • Organisational ability to develop and manage a supply chain to reliably serve the target market/s
    • Experience in value addition and product quality management.
    • The processing facilities and capacity to develop adequate value addition to buyer specifications

There are certain basic reality that need to be recognized and addressed in order to successfully use the
auger of ‘utilisation’ and ‘trade’ to achieve tangible economic improvements in the livelihoods of rural
communities at the same time as conserving the ecology and environment of Laikipia, and to ensure that
the impact is long term, the enterprise is sustainable and the effort is replicable. These include the
following:

9.2.3 Basic requirements for producer group development

The need for well organised and managed producer groups: In order to develop a supply chain, to
enable the community owned business operation to develop and to meet certified requirements for group
certification, the small scale producers and wild harvesters need to operate within a strong organisation
structure, with transparent financial handling systems, sound and sufficiently skilled management, and
with effective traceability/recording systems in place.

The need for training and advice: It is clear that most producers and operators in rural community have
limited experience of business, enterprises and market development, have only local community level
organizational skills, and have not operated supply chain orientated recordings systems and have not had
to meet protocols and compliance requirements that are externally audited. Therefore substantial
assistance and training is required to enable the producers to operate efficiently, sustainably and viably to
achieve market entry and sustain the business.

The need for careful group selection: If successful, replicable models are to be achieved within the
programme term, it is also clear that there is a need to carefully evaluate and select the most ready and
able producer groups with which to work in developing commercial natural products enterprise. This is
equally important as selecting groups that are located in or close to the areas that provide the best
commercial resources.

The need for appropriate design: The third aspect is the design of the structure. In order to harness the
full support of the government it may be necessary to use the framework of the co-operative system, but
also to design it carefully to meet and fulfil the commercial requirements of private sector industry, to
operate within the dynamics of the national, regional and international business arena. This is very
achievable, as demonstrated by Oramio Coffe Co-operative Union in Ethiopia on a large scale, and North
Western Bee-products, Zambia and Meru Herbs in Kenya, on the small scale enterprise level.

The need for capital assistance: If community natural products enterprises are developed to make an
impact on/change in the utilization of the natural resources in the target region within the programme term
it is necessary that the economic huddles are crossed in a manner that does not distort or greatly
compromise the future independence of the enterprise. This is one of the most difficult balances in
development to understand and to achieve. Even when structured as producer groups, in practical terms,
the rural communities rarely have the capacity to bear the risk and raise the necessary capital. Therefore,
external grant or loan assistance is required. If the business planning is undertaken from the onset with
the producer associations, the capital investment and breakeven points is understood by the producers
and the level of capital and risk involved. If this is achieved before the development partner arranges the
participatory ownership of the grant or loan, there is then a strong chance that the community will full own


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and drive the enterprise, accept the responsibility of the investment and of further requirements and risk
bearing as the operation grows.

The need for commercial partners:
For producer groups of natural products (i.e as a producer-owned enterprise) to gain the capacity and
opportunities to trade in better markets and receive greater incomes they need to make significant steps
in their organisational and business capacity, as explained. If this is to be achieved to make positive
impact on livelihoods and the environment within a given period and before the natural resource is lost
through economic need forcing non-sustainable utilization, it is necessary to secure commercial partners.


9.3 Commercial partners

9.3.1 Existing Commercial Enterprises
The strongest starting position for a bio-enterprise development programme is to assess the existing
active commercial enterprises that are well established such as for bee products, and through
consultation ascertain the central needs of these enterprises in terms of expansion and increasing the
returns. If all future development are focused through a programme working directly with these
commercial operators and interested landowners, primary aspects required for successfully developing
bio-enterprises in Laikipia will be achievable and manageable into the future. Such aspects include:
achieving sustainability of wild harvesting (i.e through setting sustainability parameters and organic
certification), developing/strengthen the supply chains through organisational support, training and
extension, increase the returns to the participating communities through improving techniques of
production, developing handling and processing facilities, and expanding the enterprises to include large
numbers of the resident communities.

9.3.2 New Commercial partners
The programme could concentrate its support to specific identified commercial projects, through tripartite
MOAs (memorandum of Agreement) between the Programme, the co-operative/producer groups and the
commercial operator. The commercial operators will be selected according to the programme criteria
which requires the commercial operator to fulfil the following:
• Wish to develop or currently developing organic markets (international, regional, national)
• Willing to follow fair-trade principals
• Willing to abide by the terms of the Memorandum of Agreement (MOA)
• Interested in maintaining a long term trading relationship with the producers/harvesters
• Take full responsibility of the financing of the operation
• Take full responsibility for certification compliance (organic/fair-trade/product quality)
• Provides adequate and appropriate management capacity to the project.

In developing the commercial operations, the producer groups need to be capable of:
• Developing exportable quality and quantity of product in demand in the export market
• Reaching and maintaining the required quality and hygiene standards
• Developing and managing an Internal Control Systems for organic certification
• Obtaining the grading, processing equipment to meet the market requirement, or developing a
    working relationship/partnership with an entrepreneur with the appropriate equipment.

9.3.3 Kenyan based companies
To establish commercial partners the first consideration is to engage the interest of Kenyan based
companies/entrepreneurs in the potential business opportunities. If such commercial partner companies
are interested in developing any of these products it will be necessary for the company to gain detailed
information about the specific nature of the production, processing and market requirements so that an
appropriate management decision can be arrived at. This could entail an evaluation visit by the company,
the drafting of a MOA, and a business plan. The programme could support the production of the
appropriate business plans.



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9.3.4 Externally based companies
There are a number of commercial operators in the natural products industry who are based in the
Eastern Africa region, or outside of the region, with existing business interests in Eastern Africa. Similar
criteria would be necessary to develop a commercial partnership; a recognisance visit by the company to
evaluation crop selection, seed/plant material sourcing, equipment and operational design, management
time and labour requirement etc, then a MOA, and a business plan can be drafted. See Aloetrade
America, section 9.6 and Annex 6.

9.3.5 Commercial relationship with co-operatives/producers associations
Commercial partners can engaged purely as service providers if the producer-owned enterprise has raise
sufficient funds/profits to pay for these services, and also if the communities have the knowledge, skills
and vision to drive their enterprise independently. As an example, this is now the case for NatureRub,
Kenya. However this took place after 7 years of donor support to the development of NatureRub. Similar
scenarios exist in the Eastern Africa region. Therefore this option is not realistically relevant to even the
stronger producer groups in the target region.

Alternatively, commercial partners can take part as shareholders, bringing in share capital from which to
operate the enterprise (or contribute to..) and also provide the drive to enable the future success of the
enterprise (and the investment). This most often results in a win-win scenario, a mutually beneficial
relationship, as with Forest Fruits, Zambia, POGUM in Malawi and Nature Nurture in Zimbabwe.

The third option is for the commercial partner to interact with the producer-owned enterprise as a buyer of
the semi-processed/processed material, under an official (e.g implemented under MOA) or unofficial
equitable long term trading relationship. This is the case for such examples as North Western Bee-
products, Zambia and Meru Herbs, Kenya, Langu Organic Cotton Co-operative, Uganda.


9.4 Development partners

9.4.1 NGOs operating in Laikipia
The extension, training and some of the advisory input could be developed through working partnerships
with specific identified national intermediary organisations (IOs) and the relevant government offices.
Partnerships should be secured through MOU (memorandum of Understanding) between the parties.
Working in co-operation with these partners this programme can develop a collaborative framework to
ensure that the best synergies are gain and a professional and well-informed approach is taken.

Example:
For the commercial small scale producer group production of organic certified borage oil for processing
and export to the Bodyshop, UK, Earthoil – Kenya Ltd is working under an agreement with the local NGO,
MOOF (Mount Kenya Organic Farmers). The project is supported by Fintrac and CDE. KOAN provides
practical training, pre-certification support, assistance in the development and management of Internal
Control Systems, market exposure through participation & exhibition at international trade fair, and
promotion through its website and publications.

The nationally based NGO, SITE, has provided input to the development of bee products on Laikipia for
the past seven years. ICIPE has also provided input through their applied research work to beekeeping
groups in Laikipia. Both organisations have introduced modern and intermediate hives, equipment and
training in bee keeping technologies.

Over the last three years, the national organic association, KOAN, has worked with the organic certified
producers of herbs, spices, essential oils and nutraceuticals /medicinal plant products to develop organic
certification, organic production and processing technologies and support field days and demonstrations.

Other NGOs have provided input to small scale bio-enterprises over the year, but generally not resulting
in consistent long term financial assistance or advisory/training support.


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9.4.2 Co-operation and linkages with other national or regional initiatives
Application to trade support schemes can be made during the pilot phase / this first operational year for
the existing commercial enterprise. See 4.8. Contact addresses are listing in Annex 4.

9.4.3 International trade support schemes
European Union trade support schemes, such as the GTZ managed P.P.P scheme and the Dutch PSOM
scheme, operate through the national governments of the EU countries, facilitates and strengthens new
partnerships between purchasers in the West with commercial producer operation and companies in the
two-thirds world. These schemes help to absorb some of the opportunity costs of the initial stages of
business development (specialists advice, trade missions, etc). ACP countries are entitled to some
import tariff relief under the Lome Convention.
National market import and trade support organizations, such as SIPPO in Switzerland, CBI in the
Netherlands, and regional organizations such as the Scandinavian NORAD and the EU central trade
support body CDE is geared to facilitate or support trade between their counties and LDCs or developing
countries such as Kenya. The International Trade Centre, ITC-Geneva, provides a comprehensive range
of market information and market research. Several publications are dedicated to the organic and herb,
spice and essential oil markets. ‘The Market News Service for Herbs and Spices’ is published via the ITC
website, on a regular basis. Ref. www.intracen.org/mns


9.5 Research partners
Developing research partnerships with nationally located institutes such as
ICIPI and ICRAF not only provide a wealth of information, laboratory facility for testing and analysis, but
also the opportunity to gain accredited research input to the pilot phase. The provision of services such as
regular efficacy testing of the herbal supplements is a key area for collaboration. It also may be possible
to negotiate a low fee for these services based on shared finding and research information.

Other international institutions that have relevance are Hoehium University, Germany who provide
services to the development of bee products (particularly apitherapy) in other Africa countries, the
International Trade Centre in Geneva which can provide a website linking facility for promoting organic
and natural products and also wide market research data.


9.6 Corporate sponsorship
The opportunity for gaining corporate involvement in the development of the bio-enterprises should not be
over looked. The potential to involve corporate sponsors such as Safaricom, Celtel, Kenya Airways and
petrol companies such as Shell and BP in some of the conservation lead initiatives can be strong if these
initiatives provide sufficient publicity for the corporates (to provide ethical and conservation ‘goods’ to their
company portfolios) and/or financial reward in terms of advertising their products and services. This area
can be explored in detail once the focus, structure and activities of this future initiative are finalised.


9.7 Investors / Joint Venture Partners
Through the research and communications made through this study a particularly interesting opportunity
has arisen to develop a joint venture or investment partnership with a large aloe trading and service
providing company in the US. AloeTrade America is one of the largest global aloe operators of its kind.
This company has been in direct communication regarding the development of a full-scale aloe business
operation in Laikipia as has submitted a business proposal to this effect. See Annex 6.

9.7.1 Business plan and feasibility study
The company is willing to develop a business plan and feasibility study and the consequent investment
project to establish an internationally competitive aloe industrial processing plant within Laikipia, to obtain
aloe raw juice, aloe juices for final consumption to be sold at local, national and international markets
mainly, and aloe bitter sap and/or concentrated sap for international markets. This technical information
is offered as a written final document that constitutes the complete business plan that will be used to


Susan Wren March 08. LWF, Kenya                                                                               74
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justify and to define the final amount to be invested and the related operational costs when the factory is
in operation.

It is proposed that in the first stage, the investment project will produce two main product lines:
•     Aloe bulk juice for its use in different industries, using raw material sourced from wild and commercial
      plantations located at Laikipia region, and finished aloe bottled juices ready for wholesale, using the
      aloe bulk juice produced firstly.
•     Aloe bitter sap, aloe bitter in block and concentrated aloe bitter with different specific aloin content.

At the second stage, aloe bottled juices will be manufactured for sales into the national, African regional
markets and international markets.


9.7.2 Technical assistance services
AloeTrade is also prepared to provide technical assistance services and skills transfer to the new
company formed in LAIKIPIA, related to the aloe industrial process, from the reception of leaves until the
obtention and stabilization of either aloe juice or aloe gel as raw material, or aloe juice bottled ready to be
marketed at wholesale, with the necessary adaptations of processes and products.

This technology transfer process includes information related to the layout of the plant, engineering
related aspects, definition of equipments and their installation, know how to manufacture the products –
from the reception of aloe leaves to the final product to be manufactured, including product development
phases. The technical information to be provided in this stage is offered both in written format
(documents) and in location with our consultants. The information is for the industrial process above
described, and do not cover other aspects such as marketing research, distribution channels, fiscal and
financial aspects, human resources, organizational aspects, and legal issues.

9.7.3 Commercial services.
Such activities imply marketing and sales efforts to sell and/or distribute the products to be manufactured
by the Kenyan aloe industrial processing unit owned by the new aloe company in Laikipia. The services
may be performed through the use of the business network established by Aloetrade America LLC,
Aloetrade and its affiliates, either through the owned companies, subsidiaries and companies where
Aloetrade has commercial joint venture agreements, as described below in our background, or through
the various e-commerce sites fully owned by Aloetrade America.

9.7.4 Marketing and sales
Costs are to be discussed in different ways depending if sales involves raw materials or finished products,
and if sales are to be conducted in an off line concept or under on line methods (through e-commerce
sites), be directly through Aloetrade or their affiliate companies. Later, the values of commissions or price
differentials will have to be negotiated between ALOETRADE and the new company in Laikipia.

9.7.5 Trade Finance and Micro-credit
Trade finance for the communities to buy inputs at a reasonable price is a very necessary component for
a business enterprise. Micro-credit and financial services should be offered at all levels of the proposed
intervention throughout the supply chain. This will enable particularly women to save their earning in a
personal small bank account, particularly important in traditional societies where the man of the
household controls all financial rewards from the families’ toils and commercial activities.




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10. Basic Business Analysis:

10.1 Product profiles for national and regional markets

Aloe-enterprise         Priority/         Producers                Potential partners         Investment                                     Business development
type                    Timescale                                                             Euros approx.                                  Euros approx.
                        (establishment)
Basic Aloe gum                            Existing groups need     National:                  Very low investment cost. Just quality         Aloe gum @ 2.20 per kg
                        a) Phase 1        evaluation               Leban Chem Ltd             handling and processing protocols and          Yr 1: 25 tonnes = E 55,00
                                          Sensitisation of                                    grading system need to be developed.           Yr 2: 30 tonnes = E 66,000
                                          community                                                                                          Yr 3: 50 tonnes = Euros
                                          leaders/reps to          International:             Depot centres – as itemised below              110,000
                                          stimulate new groups                                Equipment – minimal (indirect heat boiler)
Kenyan equipped         a) Phase 1        Need for well            a) ICIPE                   Example: For all districts and 20 groups       Av retail pack of 100gm
small scale Aloe        b) Phase 2        structured bio-          Pure Health                Fixed costs:                                   approx Euros 1.5
factory for:                              enterprise groups,                                  Depot centres: 5 x 5,000                       (1000 packs/tonne)
                                          strong extension and     b) Universal               DC equipment: 5 x 2,500
•   Aloe liquid                           training increase in     Industries/NEL             Central processing centre: 30,000              Yr 1: 10 tonnes retail
•   Aloe bitters                          level of raw material                               CPC equipment: 70,000                          packed = E15,000
•   Aloe powder                           supply from                                         Collection vehicle: 6,500 (secondhand)         Yr 2: 15 tonnes retail
                                          plantations                                         Motor bikes x 4: Approx 9,000                  packed = E22,500
And formulated retail                     sustainable wild                                    Running costs:                                 Yr 3: 20 tonnes retail
packed aloe                               harvest – sustainable                               Extension x 4 : Approx 12,000/yr               packed = E30,000
products                                  wild havesting                                      Processing centre staff x 3: Approx 9,000/yr
                                          protocols, approved                                 Part time: Approx 2,000/yr
                                          and licensed.                                       Processing unit costs: Approx 3,500/yr
                                                                                              Retail packing: (10,000 jars and labels)
                                                                                              Approx 1,800. Licensing: 4,500
International                             Need for well                                       Example: Some districts and 50 groups          Av retail pack of 100gm
standard/competitive    b) Phase 2        structured bio-          b) AloeTrade America       Fixed costs:                                   approx Euros 1.5
medium scale Aloe                         enterprise groups,       Universal Industries/NEL   Depot centres: 8x 5,000                        (1000 packs/tonne)
factory for:                              strong extension                                    DC equipment: 8 x 2,500                        Bulk export conc. aloe
                                          Increase in level of                                Central processing centre: 70,000              bitters:10 tonnes x Euros 5
•   Aloe liquid                           raw material supply                                 CPC equipment: approx 300,000                  Bulk export of aloe liquid
•   Aloe bitters                          from plantations and .                              Collection vehicles x 2: 16,000                20 tonnes x Euros 2/kg
•   Aloe powder                           sustainable wild                                    Motor bikes x 6: 10,000                        Powder 10 t x Euros 3.50
•   Aloe gel                              harvest – sustainable                               Running costs:                                 Sub-total: Euros 120,000
•   Aloe tea bags                         wild havesting                                      Extension x 6 – 18,000/yr                      Yr 1: 20 tonnes retail
                                          protocols, approved                                 Processing centre staff x 6 :18,000/yr         packed = E30,000
And formulated retail                     and licenced. Also                                  Processing unit costs – approx 6,500/yr        Yr 2: 30 tonnes retail
packed aloe                               organic certification                               Packaging materials - approx 3,500             packed = E45,000
products                                                                                      Licensing and Certification – 9,500            Yr 3: 50 tonnes retail
                                                                                                                                             packed = E70,000


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10.2 Three scale-up approaches
Table 10.1 provides a brief comparative analysis for the scale up of aloe commercialization Laikipia. It
demonstrated that this can be conducted at three distinct levels; each of these levels can be developed
concurrently and in synergy as a realistic and holistic approach.

Level 1: The expansion of the village based aloe processing and value additional activities for retail-
packed aloe body/health care products for local markets. This would include improvement to plantation
management, processing/extraction techniques and value addition skills and improved product
formulations. Also product standardization, product branding, licensing under the national bureau of
standards and bar coding. Processing costs are nominal.

Output: Aloe gum (cooked aloe sap) is currently exported from Kenya at US$2.20 - US$2.70/tonne. The
output over 3 years grow from 20 to 50 tonnes per year.

Level 2: The development of a medium scale aloe processing operation would include the following:
Stepping-up significantly the development of small commercial plantations; organisation of ethical
harvester groups; sustainable wild harvesting protocol and governance, organic certification, quality
certification, licensing; product range with high quality formulation with regular efficacy testing. The
allocation of correctly designed collection baskets, collection and handling protocols; construction of
collection and aloe stabilization depots, and a central processing center with nationally manufactured
equipment (see Benmah Engineering).
(i) Stabilizing aloe juice
(ii) Aloe sap (as for health bitters)
(iii) Solar drying aloe powder
(iv) Processing aloe gel for bodycare
(v) Processing retail finished bodycare/healthcare products (e.g lotions, creams, shampoo and soap).

Output: Av retail pack of 100gm approx Euros 1.50 (1000 packs/tonne) with an anticipated output of 10 to
20 tonnes per year over the first three years.

Level 3: The third level is captured in the proposal made by AloeTrade America (see 9.7 above and
Annex 6), as requested by SW.
The proposal is for a business plan and feasibility study to set up an aloe processing factory to a
competitive international standard, with capacity for processing aloe extracts in to the following products:
(i) Stabilizing aloe juice with pulp (as for aloe gel products),
(ii) Concentrating aloe sap (as for health bitters) with 22% of aloin content
(iii) Freeze drying aloe powder
(iv) Processing aloe gel for bodycare
(v) Processing retail finished bodycare/healthcare products (e.g lotions, creams, shampoo and soap).

Output: Bulk export conc. aloe bitters:10 tonnes, aloe liquid 20 tonnes and aloe powder 10 tonnes; plus
20 tonnes per year, reaching 50 tonnes of retail finished products per year by the end of year three.

International market price guide (2008) for aloe extracts
Stabilized aloe juice with pulp, or crude aloe sap, concentrated aloe sap (bitters) with 22% of aloin
content and aloe powder have a far higher value. Current average international prices are indicated
below:
• Aloe gum, cooked aloe sap - 2.20 to 3.00 USD per kg (depending on quality)
• Stabilized aloe juice - USD 1.30 to USD 2.50 on average per kg
• Crude aloe sap - USD 1.50 to USD 2.00 per kg
• Concentrated aloe sap with 22% of aloin - USD 6.50 to USD 8.00 per kg
• Concentrated aloe sap with 40% of aloin - USD 28 to USD 32 per kg
• Aloe powder (aloe dry extract, not concentrated) - USD 4 to USD 6.50 per kg




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11. Conclusions

11.1 Opportunities
Indigenous natural products represent a significant opportunity for the starting of businesses that
contribute to economic development on a sustainable basis. They are particularly attractive as they rely
on biodiversity and often also knowledge that is unique to Africa.

The current position within the aloe industry in Kenya is no different than that of hundreds of years ago.
The advancement in utilising and marketing aloe as a primary health and bodycare product, has only
reached the first small step. Developing the indigenous aloe, as for the highly exploited aloe barbadensis
in other developing and developed countries across the world using, and the aloe ferox in South Africa,
requires investment, plant breeding (for plantation using selected species such as aloe gramanicola), and
international partnerships – commercial, research and green financing.

Once the immediate requirements have been achieved, of; resource mapping, sustainable wild harvesting
standards, improved domestication protocols, group organizational structuring, training and extension,
followed by the development of a good range of competitive, well prices aloe based products with long
term programme of marketing, the aloe industry in Kenya has the opportunity to provide a viable
complimentary or alternative livelihoods option for large number of the most vulnerable and poor in
Kenya.

There are wider benefits from the commercialisation of the indigenous aloe, such as:

        Reduced conflicts between Aloe conservation and other land use systems
        Create long term income earning capacity from habitats that may otherwise have little or no
        economic value and are vulnerable to being destroyed or replaced for other forms of gain
        Create economic incentives to rehabilitate habitats degraded through unsustainable use
        Enhanced value of Aloe as a resource
        Reducing illegal trade in Aloe as owners will be able to earn more selling through legitimate
        market channels.
        Increase the knowledge of Aloe and its ecosystems
        Monitoring scheme for indigenous aloe to manage sustainable wild harvesting


11.2 Lessons Learnt
Most of the lessons learnt centre around the lack of market access for aloe products, the lack of
knowledge concerning domestication, processing and formulation, marketing and the low price received
by particularly the bottom of the supply chain for aloe gum.

More specifically, the experiences afforded by the efforts made so far to commercialise the indigenous
aloe species of Kenya include the following:

11.2.1 Poor returns and little incentive
As the market is almost entirely geared for aloe gum, the returns to the harvesters at the bottoms of the
chain provides very little incentive for rural communities to carefully manage the indigenous aloe – or to
invest any time over and above opportune and often indiscriminate harvesting. The traders also have little
incentive to handle and process the gum to preserve its quality, grading is crude and price differential
offered by the middlemen in Nairobi/Mombassa is small between the grades. Although poor quality
(adulterated and beyond the normal commercial definition of low grade) are usually rejected.

With regard to domestication; in the best scenario, when aloe gum is sold direct to internationally buyers
at the current export market price and plant health and yields are good, aloe plantations will, at best
achieve return of just under 6,000ksh/acre. As this is after 3 to 4 years from planting (ex-nursery), when
divided return per acre over the first three years this results in a paltry reward of Ksh2,000/acre/year for
tending and caring fro the plantation.


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11.2.2 insufficient scale and poor product quality
At the present level of domestication, there is not sufficient supply to develop a natural product range that
can supply markets any further than the local markets, kiosks and dukas. The quality of the extracted aloe
is too poor for product formulations to handles without breaking down over a very small percentage
(mostly 0.25-1%) due to poor separation and the resulting high aloin content in the aloe juice. This has no
impact on conservation of the species, encouraging the up-take of aloe as a land management tool and in
providing income generation options from any aloe species.

In simply terms, in order to address this challenge, it will be necessary to improve the skills and
investment capacity of the processing and value addition of aloe extracts to increase market opportunities
and returns, and to improve the performance of the planting material and methods of domestication, and
to enable sustainable wild harvesting of aloe to achieve the basic raw material supply requirement for
accessing wider markets for value added aloe products.

11.2.3 Inadequate market knowledge and orientation
There has been very little attempt to develop the national or regional market for value added aloe
products. As there is not enough supply in most areas where some level of value additions takes place to
consistently maintain the product supply on the shop shelves, there is little opportunity to increase the
demand through marketing efforts alone. As the first requirement is increase supply of the raw material,
and then to process and formulate attractive, quality and price competitive (with other regular bodycare
and health cae products) range of aloe based products, a marketing campaign at the national level
conducted at this present time would be in vain. Once there is progress in at least the supply of the raw
materials is created, processing of retail products viable, effort and finance will the need to be committed
to product branding and marketing. Prior to this, increasing market awareness and the business skills of
the producer groups is important, much capacity development is needed in these areas.

11.2.4 Certification and licensing
Once of the areas that has advanced over the recent years, is the development of the KWS managed
licensing scheme, now a statutory requirement for commercial utilisation and trade of aloe species in
Kenya. There are several grey areas existing within the licensing scheme, for example for sustainable
wild harvesting of indigenous aloe. In addition, there are no quality certification standards in place in
Kenya for retail aloe based products. There has been some attempt to put for the need for a Kenya Aloe
Science Council to provide certification standard guidelines, registered under the Kenya Bureau of
Standard, and a certification ladling scheme, following the facility provided by the International Aloe
Science Council (IASC), which has been developed for co-ordinated and regulate the commercialisation
and marketing of aloe vera in the US, and also taken up as a certification scheme in other countries.

For harnessing export opportunities organic and/or FSC certification, along with the useful auger of the
Internal Control System (ICS) mechanism for group certification and supply chain management, are
significantly important in gaining competitive advantage and price premiums. The skills t develop these
systems are available through KOAN, Nairobi, the cost of the process and annual inspections over the
first 3-4 years, however, will require external funding before producer groups/association/share-holder
company reach a position to afford this additional overhead.

11.2.5 Business management strategy and ownership
The Baringo Aloe Commercialisation experience illustrates the importance of developing commercial
structures with rural communities in a collaborative and well structured and legally bound manner,
involving equitable, ethical and rewarding participation of the parties concerned; producer groups,
landowners, private partners/investor and support NGOs. The involvement of other third parties, such as
government actors, should be clearly defined under an MOU or similar agreement




Susan Wren March 08. LWF, Kenya                                                                            81
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11.3 Focal areas to address

11.3.1 Education and awareness
Currently, different organizations freely participate in the dissemination of information on Aloes, but their
potential for other uses are remotely understood. Due to this and for historical reasons, communities and
individuals have different levels of awareness about the Aloe resource. There is need to streamline the
provision of relevant information to the interested public.

11.3.2 Environmental degradation – Destructive harvesting / not meeting conservation goals
The conservation of the aloe species as a primary component of commercialisation strategy should
include some basic steps: Mapping, zoning and then developing specific sustainable wild harvest
standards according to the zoned areas; government managed licensing and certification scheme which
is audited through third party verification, gazetting critical natural populations; establishing aloe
plantations using advanced production techniques; increasing the return from the raw aloe material
through improved value additional and marketing. Without addressing each of these areas, the long-term
conservation of the indigenous species will still be at risk.

Environmental threats
Frequent or prolonged drought threatens Aloe growth. The seedling stage is particularly vulnerable. Dry
spells also affect the production of Aloe sap, besides making the plant susceptible to pests and diseases.

Illegal harvesting
As a result of illegal harvesting:-
• Local people involved in sap tapping are paid poorly, about Ksh 20 per litre.
• There is no quality control.
• There is no certification procedures enforced through monitoring to enhance sustainable harvesting.
• The government does not earn taxes and related fees.
• The smugglers export the Kenyan Aloes cheaply.
• Aloe species conservation especially that of the narrow endemic is at stake
Poor harvesting practice
Although extensive collection and harvesting of aloe sap do not threaten the predominant species such
as aloe secundiflora, there is real danger of over-exploitation of aloe scabrifolia, aloe rivae, aloe
turkanensis and aloe megalocantha, which are in small volumes and found in more fragile habitat. This
point was also brought out in the SNV mapping exercise (2007).

Commercial nurseries
As well as threat from over harvesting, their removal from the wild for domestication will be an increasing
challenge once aloe domestication/production becomes more financially rewarding. The important of
developing a number of well positioned commercial aloe plant nurseries (such as the one instigated and
managed by Maria Dodds, Rumuruti) is particularly highlighted as a core strategy for aloe scale-up
planning. There are other large scale landowners who have already shown an interest in providing this
service. The nurseries are also important to ensuring that small scale producers received the correct and
healthy plantation stock, to enable faster take off and commercial availability of the correct aloe material.

11.2.3 Supply chain development – Low organisational and management capacity
The development of strong well managed supply chains is equally important for aloe commercialisation
as it is for any other commercial product. In order to achieving this, adequate training, extension and
management guidance, as well as well organised producer groups, and market linkages, is imperative.
Due to the comparative advantage of a number of resident NGOs and CBOs in Laikipia who are in a
position to provide this support, the opportunity to develop such partnerships is relatively high compared
to many other districts and regions in Kenya and Eastern Africa. These partners will, themselves, need
training and guidance to develop their own long term capacity to effectively support these areas, which
can be achieved through specialist and other national level NGO input (such as from SNV, KOAN, ICIPE
and Wild Living East Africa).


Susan Wren March 08. LWF, Kenya                                                                            82
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11.2.4 Lack of business capacity – Low economies of scale and profitability of existing aloe trade
In terms of business skills, this appears to be as limited as the business financial capacity within the small
scale producer groups, and rural communities at large. It is very evident that the opportunity cost of
developing aloe enterprise, even at the lowest level, is out of reach of the majority. The need for
develoing commercial partnerships from the onset of a scale up programme, or outgrower schemes with a
commercial operator/s is a core area to address. The financing of depot centres construction and
equipping to receive and stabilise the fresh gel from cut aloe leaf is critical in enabling any further value
addition than low value crude aloe gum. The processing facility to provide the necessary standard and
through put of aloe material to achieve the quality and economies of scale for accessing national, regional
and international markets will also require financing as either a smaller scale Kenyan fabricated and
equipped facility, or as a factory build and equipped to international competitive standards. These
physical items will require a commercial partner/joint venture investment and/or development grants.

11.2.5 Certification - Lack of traceability and quality systems/endorsement
Certification provides non-physical value addition, and a useful tool in building partnerships along
complex and international supply chains. The assessment of sustainability threshold for wild harvested
plant products, according to certification protocols, and the organisation and structuring of the producer
groups and the education of the wild harvesters as to the criteria of a sustainable commercial operation,
is a core criterion. It is expected that in the first phase of a scale up programme, the majority of the supply
will be sources from the sustainable wild harvest of indigenous plant products.

11.2.6 Policy, Legal and Institutional Framework
There still exist bottlenecks in the area of policies that govern the exploitation of Aloes. There is a
fundamental need to streamline policy regarding the utilization and marketing of Aloe resources.

11.2.7 Land tenure
The land tenure system is changing from community to individual ownership. Sub-division in Laikipia
district particularly Tharua area, which is endowed with natural populations of aloe secundiflora, is at
advanced stages. Given that these areas have low productivity, reduced land area per person translates
to limited capacity for commercial Aloe production, larger parcels of land would be more practicable. This
is compounded by the problem of increasing division of the group ranch systems.

11.2.8 Marketing
The poor product capacity, in terms of competitive and consistent supply and quality, together with lack of
market awareness, linkages and promotion underlay the chronic marketing challenge. It is the most
frequently expressed constraint cited by rural communities and small business alike. Unless external
intervention is made (i.e the development assistance to the opportunity cost of developing natural
products business in Kenya), the enigma will continue to presides over the potential of this sub-sector;
this being that in order to develop market linkages there needs to be adequate and consistent supply of
marketable and competitive quality products; to develop such a supply producers need to have the
security that there is a sufficiently rewarding market for their investment of time, effort and finances.
Lack of supportive and enabling government policy towards natural products enterprise development
compounds these challenge.

Opportunity cost areas include:
• Producer group organisation
• Management and business skills development
• Increasing technical skills in production (domestication) and harvesting
• Developing sustainable wild harvesting protocols
• On-going training and extension support
• Equipment and infrastructure (harvesting baskets, equipped depot centres, central processing centre)
• Trade finance
• Micro finance for the producers




Susan Wren March 08. LWF, Kenya                                                                             83
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12. Recommendations for Aloe Enterprise Development
Many of the indications made in conclusion and recommendations section of the Laikipia Bio-enterprise
Development Report, produced by the same consultant and Author (SW), apply to the scale-up of aloe
commercialisation in Laikipia. To ensure the completeness of this report, some of these overlapping
areas are included here. The recommendations are collation of the relevant experiences and
observations of the consultant (SW), and also draw from the remarks and recommendations made in the
DANIDA-ABD Coastal Aloe Report, and the SNV Sustainable Utilisation of Commercial Aloe Resources
Drylands Study.

12.1 Practical scale up priorities

12.1.1 Sensitisation and group selection
Sensitise agro-pastoralist extension officers on the importance of the crop as a wild harvested product
that can create an income generating opportunity through exchange visits to Turkana (Practical Action)
and the Coastal region. Develop a series of posters and leaflets on the technical aspects of commercial
aloe enterprises, encouraging selected producers to develop demonstration sites (i.e provide free planting
materials in exchange of access for sensitisation and training visits), visits for interested groups and
NGO/ministry staff to demonstration sites and exchange visits to groups that have advanced in aloe
commercialisation.

Select producer groups through the use of a participatory appraisal system and use of a criterion for
suitable commercial producer groups. After group selection, the provision of a series of on-going training
activities for the key group members in organisational skills will need to be arrangement with implantation
partners (NGOs and CBOs).

12.1.2 Developing stakeholder responsibility
For responsibly develop community owned/participated enterprise there must be fully knowledge of what
is entailed in setting up and developing the business operations to market quality and statutory compliant
standards, and sufficient capacity with which to develop the necessary training and extension support,
infrastructure and equipment, crop finance and operating capital. As for many other similar models across
the world, this can be achieved through a combination of public and private investment, grants and loans.

Workshops can be carried out at the early stages of a bio-enterprise support programme to provide this
information to communities and enable a more sound understanding of the realistic options and provide
the ground for communities to make strategic choices on livelihood options. As a result there is greater
likelihood that the community members will take ownership and responsibility of their selected bio-
enterprises and work in a more focused manner with development support agents and commercial
partners. It is envisaged the assistance given to the development of aloe enterprises in Laikipia will go
hand in hand with that of other related/interlinked bio-enterprise types (such as bee products,
ethnobotanicals and natural bodycare ingredients/products)

12.1.3 Organisational Capacity.
Management and organisational capacity are also key aspects for achieving successful and replicable
enterprises; this also required adequate financing and a third party involvement to ensure good practice
and transparency. For example; supporting the salary of a literate person, such as a school leaver, to
ensure adequate recordings systems are developed, for the first three years after which time the group
will be earning enough income from the enterprise/s to independently support this post (e.g through a
1.5% levy on sales for group running costs).
The groups can have a MOU arrangement with an aloe scale up assistance programme (see12.3) and an
MOA with the commercial entity.

Suitable NGO/CBO partners can carry out these activities. This could also include training provision in
business and entrepreneurship skills, see below.



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12.1.4 Extension and training - TOT
As there will be an on-going need for training producers and harvesters in each area of production-
domestication and sustainable wild harvesting, product harvesting and handling. It is suggested that the
NGOs and CBOs operating in the Laikipia district are trained (TOT) through a series of training course,
possibly held at ICIPE campus. The financing of these support activities will need to be budgeted and it is
likely that assistance will need to be provided to these development partners, bounded by MOU/MOA.

12.1.5 Expanding domestication/plantations
Although the indigenous aloe species are hardy and adaptive, domestication takes skill and on-going
care; there is a three to four period from nursery to first harvest. Post harvest care is also important to
enable the plants to recover quickly and to the overall return per acre of production.

Developing commercial nurseries will not only enable access to strong planting materials, but will ensure
that the correct species are utilised and will reduce the occurrence of unsustainable removal of mother
plants from the wild.
Training course, preferable held at the demonstration plots, should be conducted on cultivation and
management techniques of cultivated plant products. This could be carried out by NGO and CBO
partners. A range of simple information and training materials should be printed in Swahili on the above.

12.1.6 Develop sustainable guidelines and protocols
In terms of larger scale commercialisation/scale-up, it will take a number of year for raw material supply
from plantation, it is necessary to work pro-actively on the development of sustainable wild harvest of
selected aloe species. This starts with the mapping the distribution and health of the species, zoning the
target areas for harvesting, and then developing sustainability protocols to describe the methodology for
wild harvest of the identified species within the defined zones. This should be conducted by an
appropriately training and experienced botanist. Enrichment planting of ‘suckers’ from the ‘mother’ plants
can also be a component of the guidelines. Guidelines for sustainability protocols are held in Annex 11.

Training the harvesting and relevant producers groups in the sustainable wild harvesting techniques and
protocols of the indigenous species, should be followed through with explanatory literature, posters,
laminated guide sheets, and is also a defined criteria within the organic certification standards. The
development of the ICS (internal control system, see 12.1.9) will further endorse and regulate these
protocols as critical control points.

12.1.7 Phased development of the operational framework
By taking a phased approach to the aloe scale up initiative, developing a programme support facility and
combining this initiative with the development of the other identified (once agreed with rural communities)
bio-enterprises, LWF will have the opportunity to instigate and assist tangible economic growth of aloes
and other bio-enterprises in Laikipia in a strategic and streamlined manner. To achieve this following
recommendations are made:

Phase 1:
• Mapping and zoning the resource, developing sustainability protocols
• Develop the training and extension capacity in Laikipia and relationships with development partners
   to provide implementation support for larger scale commercial aloe development
• Increasing number of plantation and improving technical production skills
• Stimulate the development of commercial aloe nurseries to supply healthy correct planting material to
   the producer groups
• Improving harvesting techniques and village level processing
• Improve formulation and packaging of aloe products for local markets
• Business planning for the central processing factory and formation of commercial
   partnerships/investment whilst economies of scale increases for the raw materials supply
• Binding agreements secured between all partnering parties
• Develop a national quality standard for labeling approved sloe retail products (possibly with National
   Bureau of Standards).


Susan Wren March 08. LWF, Kenya                                                                          85
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Phase 2.
• Engagement of commercial partner/s
• Develop capacity of the bio-enterprise trading company
• Securing development grants and trade finance
• Product development and branding
• Marketing and promotional campaign
• Micro-banking schemes
Etc…

12.1.8 Processing
The processing approach and scale up options, as outlined in 7.2, will depend on several aspects:
(i) the level of engagement of LWF in co-ordinating or facilitating the various private and public
partnerships required support the opportunity costs of setting up a commercial aloe venture in Laikipia
(ii) and/or the involvement of a commercial partner and the level of investment and management
committed
(iii) the level of grant assistance/investment secured from development partners/ethical finance
companies
(iv) the level of interest in and commitment of the rural communities to this commercial bio-enterprise

A phased approach to the aloe scale-up will allow LWF to seek commercial and development partners to
invest in/support commercial processing facilities (i.e from small scale factory to international level
processing facilities), whilst expanding the village-based aloe enterprises and raw material supply. In
phase 2, LWF can then facilitate the process of setting up a larger commercial operation achieving
greater turnover of value added aloe products and resulting in a growing scale and reach of the impact

Benmah Engineering, in Nairobi, has agreed to provide a design and costing of a fully equipped small
scale aloe processing factory. AloeTrade America in the USA is willing to conduct a full business plan for
the construction, equipping and operation of a high quality-processing factory, to international standards.
The assessment of most appropriate route for the scale-up processing of aloe products will only be
clearer once this information is gained and commercial partners identified. With regard to the latter, the
consultant (SW) will holding meetings with potential investors located within Laikipia/Kenya over the next
few weeks. The outcome of these meetings will be annexed to this report.

12.1.9 Non physical value addition – Certification
As discussed, organic certification provides competitive advantage and premium price returns in the
international marketplace, and also provides a designation to the land for sustainable utilisation. The
internal control system provides a strong supply chain structure with risk assumptive compliance criteria
for the members. The incentives to comply with the standards are tangible and attractive, being higher
prices and strong market participation. Please refer to section 4 and Annex 8 for detailed information on
developing organic certification.

By working with partners such as KOAN (Kenya Organic Agriculture Network), based in Nairobi, the
development of the ICS and all other pre-certification assistance for the selected bio-enterprises can be
professionally and smoothly achieved. The most appropriate approach would be to develop an MOU with
KOAN for this purpose and for KOAN’s assistance in developing organic premium markets for the natural
products. KOAN can also assist with developing market exposure and market information for these bio-
enterprises, and sourcing suitable commercial partners (both nationally and internationally).

ICS and developing the supply chain
The internal control system (ICS) will list every collector and processor involved in the value chain to bring
the product to the market place. This is necessary to bring a quality assurance to the aloes products and
ensure that there are checks and balances throughout the process to ensure that any defects can be
monitored and will not be allowed to reach the final market stage.
New players and stakeholders will join the process as the product becomes more will known and viable.
Even within the association channel the tools of ICS can be applied by the women groups or trading
associations to ensure product quality.

Susan Wren March 08. LWF, Kenya                                                                            86
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Adequate extension field staff for the development of the ICS / supply chain could include the following:
Existing trainers and management staff can be trained in natural bodycare enterprise development, the
ICS and organic certification processes and management.
Processing centre staff. The number of staff will depend on the relationship with the commercial partners
(i.e who will provide and pay for the staffing requirement), and scale of the operation.

Example: for 1,200 producers in 20 groups
6 extension staff (responsible for approx 200 producers / 3-4 producer groups each)
I extension and training manager plus 2 other part time trainers
Supervisors for village based semi-processing x 4
Central processing centre: 1 processing supervisor and 3-5 processing staff

12.1.10 Product development
It is important to the successful development of a range of aloe products the value addition techniques a
Go through a pilot period, enabling strategic product development according to the results of adapting
formulation to include optimum aloe extract and using other natural ingredients (as possible), brand
development and market trials.

Once the raw aloe extracts are available (potentially alongside bodycare ingredients from other bio-
enterprises), assistance in developing an attractive bodycare products can be gained by international
specialist such as; Earthblends, Organic Partners, or nationally from ICIPE and KEFRI. These parties and
others (such as Olive Marketing) can also provide advice on packaging and presentation for the national
market, and the export market once economies of scale and quality standards have been met.

Sourcing and costing the other aloe product ingredients will part of the detailed business planning phase.
Sourcing natural alternatives for the formulations will need to be balanced with effectiveness and
achieving a competitive and attractive product range. Overcoming issues such as shortage in important
ingredients, such as coconut butter, can be achieved by researching, at the on-set of processing
operation, alternative and available ingredients (such as avocado oil and mango nut butter).

12.1.11 Market development
The structuring and development of a strategic marketing programme will need to accord with the phased
growth of the raw aloe materials and the processed aloe products.
Once the market trails have been conducted, selection of the most successful aloe products can be
made, export avenues explored and a revised business plan can then be drafted to show the comparative
advantage and cost benefit of each market channel (i.e local, national, regional and international).

Market development is on-going, and a continuous process of defining and redefining the product and
market pitch, increasing the promotion of the products and branding, using media, website marketing,
trade fairs and promotional offers etc. This will need to be complimented with marketing information;
developing an up-date data-base of the market trends, potential buyers, regulation and standards, and on
going market trials of the newly formulated and retail packed product range.

12.1.12 Trading structure
The shareholding involvement of a stakeholder organisation/NGO such as LWF and an ethical investment
company, such as Share Interest/Triodos/Rabobank, ethical trading partners can provide this role.
Overseeing the conservation/ ecological perspectives of the bio-enterprises is also an important role and
one that can be governed through a management board comprising the right mix of parties with
conservation and ethical trade agendas from the pool of shareholders and advisors.

12.1.13 Commercial partnerships
Investigate the potential of engaging national commercial partners and evaluate their existing capacity
and their potential interest and terms of engagement with the project/producers/co-operatives. Develop a
pilot phase MOA – potentially as a tripartite between the programme, the producer groups and the
commercial partners.

Susan Wren March 08. LWF, Kenya                                                                         87
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12.1.14 Legislation and standards
Any business needs to comply with legislation and standards applicable to it in order
to stay in operation. Some of the laws where compliance needs to be ensured (apart
from those all business must comply with) include:
     • The National Environmental Management Act
     • The Water Law
     • Agriculture & Land Use laws
     • Kenya Bureau of Standards (SABS) requirements

To provide more detailed recommendations regarding the regulation and protection of the emergence of
an aloe industry in Kenya please see the next section.


12.2 Regulating the industry

12.2.1 Harnessing national statutory requirements
As base line information on species, mapping (GPS) and zoning is a requirement under the Wildlife
Conservation and Management Act (Section 67 Cap376) for achieving a licence for aloe
commercialisation, LWF can develop a mapping and monitoring system with SNV, followings its formative
work in the recent (2007) Sustainable Utilisation of Commercial Aloe Resources in the Drylands Study.
This activity can also provide the baseline for developing sustainable wildharvest protocols for organic
certification, but also provides information for monitoring and marketing the climate change mitigation
impact this initiative has on the Laikipia environment.

The commercial nurseries and plantations will also require licensing, which will involve information on
land ownership, species being propagated, when the operation was established, land size involved,
source and quantities of parental stock, evidence of the source. LWF can provide assistance with the
application and compliance to these licensing requirements.

There is a growing database (resource map) indicating the extent of indigenous Aloe in some areas of
Kenya, including Laikipia (mostly due to the SNV initiative), and potential production levels. Sustainable
Aloe production and marketing is knowledge intensive and requires use of appropriate technologies,
impact assessment and Audits have been carried out and submitted to NEMA in some cases.

12.2.2 Developing sustainable harvest levels and protocols for the aloe species

Species selection
The more common and robust species is Aloe Secundiflora which is the species most commonly
commercially utilised across Kenya. The other species of Aloe Lateritia (gramanicola) and other higher
gel containing sub-species will need careful management and it may be necessary to only accept
materials from plantation supply.

Domestication Protocols
Environmentally supportive domestication of the selected aloe sub-species can be embraced by a set of
domestication protocols. These can be incorporating in the cultivation strategy to meet organic
certification requirements and for the statutory licensing.

Sustainable Wild Harvest Protocols
As for 12.2.1. In terms of organic certification, wild harvested products are sourced from areas that have
not been treated with artificial fertilizer or chemicals in the three years prior to harvest. Plants treated with
pest control agents may not be planted during the last three years. The harvest/gathering of the product
shall not have a negative impact on the environment or endanger the existence of any species of plant or
animal. All places of purchase shall have personnel who are well versed in these protocols and any
specific certification standards according to those set by the certification body.



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Specific protocols will need to be developed for each situation and zones, for example; the harvesting
should be undertaken during or just after the rainy season between March and May and again during the
short rains. The pastoralist collectors should carry out 'enrichment planting' in x areas, etc…

12.2.3 Quality protocols and marketing standards
Quality protocols should be developed by commercial; partners and technical advisors for the harvesting,
handling and processing of aloe and its extracts. This can follow the HACCP approach (or link with
HACCP). Working with the aloe stakeholders, KWS and KEFRI, LWF could promote and provide the
advisory input to bring about an equivalent body and certification mark as that developed by the
International Aloe Science Council (IASC).


12.3 Increasing empowerment of stakeholders

12.3.1 Laikipia communities
Bio-enterprise failure due to lack investment in raising the capacity of the producer groups in terms of
production and processing skills, ability to manage the business operation and to develop secure markets
for their products is common and widespread in Africa. Lack of trade finance and capital hold back most
groups from developing the business and sustaining product supply.

To encourage high community participation in bio-enterprise in Laikipia and to harness the potential of
driving forwards sustainable utilisation of the natural resources whilst creating tangible livelihoods within
these communities, adequate investment will be required to initiate and maintain the development of
these enterprises. In this context it is recommended that a phase approach is taken to the aloe scale-up
to assist village based enterprise, i.e simple processing for local markets, to expand whilst the larger
investment into depot centres, central processing facilities, commercial partnerships, expansion of the
plantation and sustainable harvesting of Aloe Secundiflora is where this second phase is then feasible
and viable to begin commercially.

To achieve sufficient returns from the aloe commercialisation, even at the village enterprise level,
producers will need to be trained in the harvesting and processing of the aloe plant to harness the juice
as well as the sap, to source the additional ingredients and to formulate well to achieve attractive range of
health and bodycare products for the local market. Assistance with trade finance, product licensing and
improved hand operated processing equipment and infrastructure can also integrate with the longer term
strategy to develop the wide commercialisation initiative.

The design and formation of a shareholder trading entity will encourage the ownership and driving of the
commercialisation of aloe in Laikipia by the resident communities, including (some of) the land-owners,
and enable the integration and sharing of the investment and overheads etc with the other proposed bio-
enterprises. The ownership structure and foundation should be clear for long term governance of the
enterprises this will increase the effectiveness of the partnership and reduces conflicts;

A programme of training is required to enable the producers to operate efficiently, sustainably and viably
to achieve market entry and sustain the business, and for replicable models to emerge within the
programme term. The piloting phase will enable the programme to more closely support the set up of the
operations, and then later assist the producer groups in seeking affordable loans for the expansion of
these pilots into fully commercial enterprises. Strategic grants and loans can be also provided to the
producers groups of existing enterprise as a participatory activity carried out in conjunction with the
commercial partner.

To introduce the opportunities and potential of this initiative, and to develop ownership and responsibility
for the driving of the aloe scale up initiative, a seminar or meetings should take place at the earliest stage,
involving development agents and partners, area leaders, landowners, tourist operators, institutes,
government representatives, research and other relevant stakeholders.



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It is important to establish proper community system, as a platform of partnership. Systems recognized
under law are appropriate, either as co-operative or trusteeship. Trusteeship encouraged for community
based groups, with defined ownership strategies developed at the onset.

12.3.2 Maximising benefits to women at each stage of the value chains
The opportunity of high women involvement in aloe production and value addition activities will need to be
proactively promoted and encouraged at the community level as well as being endorsed as part of the
commercial business approach. Traditional reservation in may hold back women from some tribal groups
and it would be appropriate to for the LWF to have an introduction made to the council of elders of a bio-
enterprise initiative that would involve producer groups from their communities.

Promotion of women mainstreaming in commercial business can be reinforced through developing the
constitution and bylaws of the producer groups working with the bio-enterprises to stipulate the
involvement of women in income generating activities.

To enable effective and efficient value addition the producers need to be trained in improved techniques
to achieve the quality expected in target markets. This should be developed as a programmed approach
to ensure that skills are effectively and consistently developed. This facility will need to be arranged at the
on-set of a future bio-enterprise development initiative, either through ensuring commitment of partner
NGOs (bound by Memorandum of Understanding, MOU), or by securing sufficient funding to develop a
training and extension facility within the initiative. In order to ensure that the women retain their incomes
for their efforts, they can be encouraged to open small bank accounts and sale returns can be placed
directly into the accounts of the women producers; possibility facilitate through linkages/involvement of
national mico-banking companies such as K-Rep and EquityBank or international ethical finance banks
such as Triodos, Rabobank etc..

12,3,3 Accessing finance
Extract from The Coastal Aloe Business Report, DANIDA-ARD
In addition to development grants and ethical trade finance, there are other opportunities to access
finance. The South African Venture Capital and Private Equity Association (SAVCA) can be contacted for
details of venture capitalists that can be approached. Another route worth considering is The
Johannesburg Stock Exchange’s Emerging Enterprise Zone (EEZ) which is a subscription-based system
that matches those needing funds (a minimum of R200 000 must be required) to fund providers. Further
details of the opportunities in this programme including contact details can be found in Appendix 15.
Finally, a source
worth considering if you are previously disadvantaged is Southern African Enterprise Development Fund.

In the initial stages micro- financing services should be made available throughout the supply chain to
ensure that the procurement of equipment and technical services are available at the start up process.
This would be to buy the tools needed to harvest and process the raw material from the plants.
There may also be a need for financial services to support the transportation of the pre-processed
materials to the central processing units because of the remoteness of the area.

12.3.4 Market development
Core activities include the following: Conduct a detailed business plan of the introduced species for the
national and the international markets, once the basic information has been gained from the pilot phase.
Develop commercial partnerships, as previously discussed. Develop the management and trading entity
and secure investment capital and trade finance. Develop a marketing and promotion website facility, and
product branding. This could include products from bio-enterprises in Laikipia and the Northern
Rangeland Trust conservancies.

Applications can be made to trade support schemes during this first operational year for the existing
commercial enterprise. Example; PPP scheme, GTZ and the PSOM scheme, Netherlands Embassy, CDE
commercial sector development scheme and ProInvest. There are many other grant making opportunities
through the various embassies and their programmes, from charities (such as, Ford Foundation,
Rockefeller, Comic Relief) and private sector funders (Shell, BP, Toyota, Nippon, Bill Gates, etc).

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12.4 LWF potential role in the scaling up/development of new aloe based businesses
(As for the Laikipia Bio-enterprise Report)

As the sustainable management through commercialization of indigenous species has now been
confirmed as a legitimate part of the LWF remit, its role in such initiatives can now be considered more
deeply. The initial area in support of the commercialisation of the indigenous aloe species of Laikipia is in
spearheading this assessment report and the presentation to the members and residents of Laikipia in a
stakeholders meeting. The next strategic step for LWF from this position will be to consider its long-term
role. To this affect, the responses from the stakeholders meeting will provide a chance to receive the
collective options of the LWF board and members, and an indication of what is required the assist the
various existing private, public and development partners to develop sustainable and successful aloe
businesses in Laikipia. It will also provide a platform for LWF to assert its position in overseeing these
developments and to openly discuss the appropriateness and methodology for developing a service
providing facility to the Bio-enterprise development in Laikipia, within the Forum.

The following provides a few options to consider in the future role of LWF in support of the
commercialisation of the indigenous aloe sps and other bio-enterprises in Laikipia:

Approach 1.
One approach that the LWF can consider which will involve the Forum in the least risk or need to extend
the organisation’s existing remit and management capacity would be to take the role of funding applicant
and manager. This would involve the devising of the programme, securing of the funding, management
and administration of the programme. Using this approach, the actual implementation of the activities will
conducted through the engagement of local/national NGO and CBO, as separate projects, governed
under MOU’s and to the agreed terms of reference.

Approach 2.
In an extension of the above, LWF could take the role of implementing the programme, with the
assistance partners. If this is selected as the most appropriate approach, LWF may need to develop its
own internal capacity for undertaking this market-lead highly business orientated programme. By working
with public and private sector partners the implementation can still be achieved using specialist input and
existing extension services.

Approach 3.
The third approach would involve some (small >) level of investment, commitment and higher
responsibility and risk bearing, but would be more rewarding and provide LWF with a pivotal role in the
development of bio-enterprise on Laikipia in the long term (i.e past a programme term and the scope of a
donor funded programme). In this role LWF would be joint (with other interested parties) instigator and
shareholder of the management and commercial entity, proposed as the Trust with the management and
trading company component. It would be involved in seeking commercial and public sector partnerships
and sourcing funding, as above. It would also be in a position to make commercial decisions, to guide
internally the direction and development of the Trust, and, if able, to receive a share of the financial
returns from sales (as a shareholder).

There are other approaches that can be taken, or any combination of the above. This aspect will require
in-depth consideration and evaluation by the LWF team and committee itself.




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Annex Section
Annex 1. The International Aloe Science Council

Background:
The International Aloe Science Council is a non-profit trade organization for the
Aloe Vera Industry world-wide. Its membership includes Aloe growers,
processors, finished goods manufacturers, marketing companies, insurance
companies, equipment suppliers, printers, sales organizations, physicians, scientists and researchers.
The common bond between this diverse group of individuals and companies is an interest in promoting
Aloe Vera and its use in skin care products, beverages, pharmaceuticals, and a wide variety of other
products. We serve as a liaison and information source for research, development and promotion of Aloe
Vera and associated products. As a member, associate member or subscriber with IASC, you have
access to a wide variety of information, support, advice and certification programs. Here is a sampling of
what we offer our membership

Code of Ethics
Code of Ethics for members of the International Aloe Science Council, Inc. was adopted by the Board of
Directors on May 15, 1998 to promote and maintain the highest standards of Service and Personal
conduct among its members.

In adherence to this code, members will:
    • Promote and encourage through action and spoken word the highest level of ethics within the
       Aloe industry.
    • Maintain loyalty to the Council and pursue the objectives of the Council that are consistent with
       the public interest.
    • Use only legal and ethical means in all our business activities.
    • Recognize and discharge our responsibilities as members to uphold all laws and regulations
       relating to the manufacture and distribution of Aloe products.
    • Operate our businesses utilizing ingredients and packaging consistent with the goal of preserving
       and protecting the environment and the goal of providing a quality product.
    • Not countenance discrimination on the basis of race, sex, age, religion, national origin, sexual
       orientation or disability.
    • Use every opportunity to improve public understanding of the role IASC plays in representing the
       needs and concerns of the entrepreneur in the Aloe industry.

Certification:
The International Aloe Science Council Certification Program was born of necessity in the early 1980's.
Due to abuse in the representation of the true amount of aloe in aloe products, either raw materials or in
consumer products, the IASC began to formulate a plan similar to the Good Housekeeping Seal of
Approval or the National Sanitation Foundation certification programs.
Building on a testing concept designed by member companies, the IASC developed the certification
program to allow aloe growers, processors and manufacturers to submit their facilities and products to a
series of rigorous tests and audit program, which, if they passed, would allow for the certification of aloe
and aloe products and the display of the IASC authorized Seal of Certification on all product and
literature.

The IASC developed a program that would allow aloe growers, aloe processors, aloe manufacturers, and
aloe marketing companies to have their products certified by the Council. Companies who use the IASC
Seal of Certification on their products and in their literature are assuring their customers:
That the Company represents truth in labeling.
That the Company represents the quantity in aloe content.
That the Company represents the quality of aloe meets with IASC current standards.


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That the Company represents that the aloe used in the products comes from a certified source.
The certification process is very easily accomplished. A company must complete all of the following steps:

Contact the IASC for an application.
Fill out and return the application.
Invoice will be sent to applicant and payment must be received prior to scheduling.
Schedule with IASC an inspection date.
Meet the inspection criteria.

Once an application is accepted, the inspection and audit team will visit the facility to begin a review of all
the parameters to be checked and perform an aloe inventory. Formulas, inventories and labels will be
checked and line samples will be taken during the run for assay purposes. Once the evaluation is
complete, a recommendation is made to the Certification Board on whether to certify the applicant or not.
Notification in writing is then made to the applicant as to whether they have been certified. If a failure to
certify is made, an explanation is sent to the applicant. Depending on the reason for the failure, a retest
provision may be initiated. The test procedures used in the certification process are those specified by the
IASC Science and Technical Committee and approved by the Directors.




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Annex 2. Aloe products retailed in Kenya
1. Aloe Pura – ksh 785 99.9% Organic Aloe Vera Gel. Ingredients: organically grown aloe baradensis,
acrylates, phenoxyethanol, methylparaben, propylparaben. Manufactured by Optima, Wales, UK

2. Optima – Ksh660 AloeDent mouthwash. Ingredients: Ab, sorbitol polysorbate, citrus paradise
(grapefruit seed extract), menthe piperita, sodium laucyi, sarcosinate, menthol, tea tree oil, vit K, escin
(horse chestnut), centella asiatica, xylitol, sodium hydroxymethyiglycanate, citric acid, cl75810.
Manufactured by Optima, Wales, UK

3. Aloe Ferox – Ksh 460. Baby shampoo 100ml ksh 460. Ingredients Aloe Ferox (cape aloe), deionised
water, sodium lauryl, ether sulphate, polysorbate, sodium lauryl sulfoacetate, penaerythrityl tetrastearate,
fragrance, preservative; imidazolidinyl urea 0.2%
Manufactured by Aloe Ferox, South Africa.

4. Organics – Ksh 480. Aloe and lavender deodorant. Vegetable glycerin, sodium state, sodium
bicarbonate, organic aloe vera, organic lavender essential oil, witch hazel, juniper berry, Echinacea,
rosemary, sodium chloride( sea salt), ethylhexylglycerin, cetyl alcohol, steric acid, grapefruit seed extract,
yland ylang essential oil. Manufactured by Organics, Canada.

5. Olivera – Ksh 395. Olive oil and aloe soap. Saponified olive oil, aloe barbedensis, purified water,
sodium chloride, citic acid, fragrance. Manufactured by Optima, Wales, UK.

6. Forever Bright. Ksh720. Forever Bright Aloe Vera Toth Gel. Manufactured by Forever Living Products,
Arizone, USA

7. Aloe Joy – Ksh50. Aloe gramanicola extract, essential oils and fragrance (these are the only ones
listed, but is a cream consistency so has other ingredients). Manufactured by Rumuruti Women Group.

1. Aloe Pura – ksh 785 99.9% Organic Aloe Vera Gel
Ingredients: organically grown aloe baradensis, acrylates, phenoxyethanol, methylparaben,
propylparaben. Manufactured by Optima, Wales, UK

2. Optima – Ksh660 AloeDent mouthwash. Ingredients: Ab, sorbitol polysorbate, citrus paradise
(grapefruit seed extract), menthe piperita, sodium laucyi, sarcosinate, menthol, tea tree oil, vit K, escin
(horse chestnut), centella asiatica, xylitol, sodium hydroxymethyiglycanate, citric acid, cl75810.
Manufactured by Optima, Wales, UK

3. Aloe Ferox – Ksh 460. Baby shampoo 100ml ksh 460. Ingredients: Aloe Ferox (cape aloe), deionised
water, sodium lauryl, ether sulphate, polysorbate, sodium lauryl sulfoacetate, penaerythrityl tetrastearate,
fragrance, preservative; imidazolidinyl urea 0.2%
Manufactured by Aloe Ferox, South Africa.

4. Organics – Ksh 480. Aloe and lavender deodorant. Vegetable glycerine, sodium state, sodium
bicarbonate, organic aloe vera, organic lavender essential oil, witch hazel, juniper berry, Echinacea,
rosemary, sodium chloride( sea salt), ethylhexylglycerin, cetyl alcohol, steric acid, grapefruit seed extract,
yland ylang essential oil. Manufactured by Organics, Canada.

5. Olivera – Ksh 395. Olive oil and aloe soap. Saponified olive oil, aloe barbedensis (vera), purified water,
sodium chloride, citric acid, fragrance. Manufactured by Optima, Wales, UK.

6. Forever Bright. Ksh720. Forever Bright Aloe Vera Toth Gel. Manufactured by Forever Living Products,
Arizone, USA




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7. Herbal Force Aloe Vera Juice. Ingredients: Aloe Vera, Cat's Claw Extract, Chamomile Extract, Burdock
Root Extract, Hawthorne Berry Extract, Astragalus Root Extract, Sheep Sorrel Extract, Pau d' Arco Bark
Extract, Slippery Elm Bark Extract, Rhubarb Root Extract, Sodium Benzoate (0.1%), and Natural Fruit
Extract.

8. Aloe Joy – Ksh50. Aloe gramanicola extract, essential oils and fragrance (these are the only ones
listed, but is a cream consistency so has other ingredients). Manufactured by Rumuruti Women Group.

9. Aloe Vera Bath Bar (300gm) - Ksh350 Arran Apothecary, Scotland UK
Ingredients: Sodium palmate, sodium cocoate, water, glycerine, fragrance, aloe vera extract, wheat flour,
sodium chloride, butyphenyl methylpropional, tetrasodium etidronate, disodium EDTA, hydroxycitonella,
benzyl salicylate, alpha-isomethyl ionone, hexyl cinnamyl, hydroxyisohexyl 3-cyclohexene
carboxaidehyde, limonene and colourants.

10. Super Strength Aloe Vera Tablets. 30 tablets. Ksh755. Aloe Pure, Optima, UK.
Ingredients: Micro-crystalline cellulose, dicalcium phosphate, aloe vera powder 200:1, magnesium
stearate, silicon dioxide.

11. Early to Bed Shower gel, 473 ml. Ksh1030. Kiss my Face, USA.
Ingredients: Water, sodium lauryl sulfate (from palm oil), cocamide (coconut oil derivative), olive oil, aloe
vera, vit A and D2, Vit E, natural fragrances.

12. Women’s Certified Organic Aloe Vera Toothpaste 96gm. Ksh 695. Kiss my Face, USA.
Ingredients: Glycerine, sorbitol, hydrated silica, aloe vera, water, sodium lauroyl, chitosan, peppermint,
black cohesh, dong quai, red clover, sage, menthol, tea tree, sodium hydroxymethlglycinate, xyitol, citric
acid, chlorophyllin-copper complex.

13. Natural roll-on Deodorant. 60ml. Ksh895. Desert Essence, Valencia, USA.
Ingredients: Water, organic lavender extract, organic calcium starch, ocentylsuccinate,stearyl alcohol,
cetearylalc alcohol, ethylhexyl palmitate, organic tea tree oil, corn starch, organic aloe vera leaf juice,
green tea extract.

14. Naturade Joint Formula (health drink). Ingredients: Aloe Vera Gel from Concentrate, Fructose, Citric
Acid, Natural Lemon-Lime Flavor, Sodium Benzoate, Potassium Sorbate.

15. Super Aloe Gel. Aloe Ferox Trust. South Africa. Rand 41
Ingredients: Aqua, Aloe ferox Leaf Extract, Glycerin, Sorbitol, Allantoin, Carbomer, Triethanolamine,
Imidazolidinyl Urea, Methylparaben

16. Whole Leaf Aloe Juice. Aloe Ferox Trust. South Africa. Rand 39. Aloe Ferox
Ingredients: Whole-leaf Pulp, Malic Acid, Potassium Sorbate, Sodium Benzoate

17. Baby Balm. Aloe Ferox Trust. South Africa. Rand 23.
Ingredients: Aqua, Ceto Stearyl Alcohol, Paraffinum Liquidum, Lanolin Alcohol, Oleyl Alcohol, Glyceryl
Stearate, PEG-100 Stearate, Almond Oil, Propylene Glycol, Isopropyl Palmitate, Glycerin, White Oil USP,
Stearic Acid, Sorbitol, Dimethicone Copolyol - 100/200, Aloe Extract, Allantoin, Honey Bush Extract,
Jojoba Oil, Tea Tree Oil, Comfrey, Menthol, Camphor, Beeswax, BHA, Imidazolidinyl Urea,
Methylparaben, Propylparaben

18. Aloe Tea bags. Aloe Ferox Trust. South Africa. Rand 17. Dried Aloe ferox whole-leaf & Rooibos




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Annex 3. Formulation of Aloe-based Products Suitable for Rural Processing
3.1 Aloe based bodycare product types

    Skin cream / lotion
    Face packs and exfoliates
    Herbal bath/shower gel
    Soaps
    Face tonic - Floral waters
    Foot cream and exfoliates
    Hand cream
    Massage oil
    Hair conditioner
    Hair shampoo


3.2 Example formulations of natural aloe based bodycare products

Body or face lotion/cream
By making a slight variation in the ratio of the basic ingredients indicated below will make the formula into
a light lotion to a heavy cream (and various in-between):
Formulation for face cream:
LEXIMUL 561- vegetable emulsifier – 9%
Coconut oil – 18%
Vitamin E – 0.2%
WATER(previous boiling to dissolve sodium benzoate) - 20.4%
Aloe Vera Gel – 51%
Sodium Benzoate – 0.8%
Essential oils – 0.6%

1) Add Vitamin E+ leximul (di glycerides of fatty acids-sometimes called emulsifying wax) with coconut
   into a clean container/pot and melt in a baine-marie at about 70-80c
2) Add sodium benzoate to boiling water, leave to cool to 40-60c whilst emulsifier melts.
3) Add Aloe Vera gel to number 2 as 1 is almost melted or just melted.
4) Stir in aloe gel into water/sodium benzoate mix and stir occasionally until it is below 40c.
5) Then add essential oil mix just before pouring into containers. It is easier to pour at this stage before it
   thickens up,

    This is a typical cream/lotion emulsion formula with a wide tolerance for changing levels of oils, water
    and emulsifier. More water-less oils & emulsifier = more runny lotion type product and vice versa for
    thickening. For Africa it is good to keep the emulsifier between 7-11% to stop sepration due to
    extremes of temperature. Try and avoid using essential oils over 1%, unless a Tea Tree cream
    e.t.c(then max around 3%)

Simple Shampoo Base
Ammonium Lauryl Ethyl Sulphate @30% in water - 55%
Salt(seperate into 2 halves) – 2%
Sdium Benoate – 0.60%
Water – 27%
Vit E(can be left out) - - 0.1%
Lauryl Betaine(can be left out) – 15%
Mix Ales & Lauryl Betaine together asnd seperastely mix vit e and essential oils together
Boil the water and pour off 1/5. Mix sodium benzoate and then add to main batch. Add salt and the rest of
the water and dissolve. Notes: sodium benzoate mixes easliy into the boling water not so with cold
Salt acts as a thickener so the last half should be poured in to watch viscosity


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3.3 Other formulations

Body butter – 120ml aloe gel, 20ml maize flour, 15ml water, 4 drops essential oil

Body lotion – 22g gel, 5ml lanolin, 5ml Vit E oil, 75ml coconut oil, 15g beeswax, 180ml almond/moringa
oil, 7.5ml essential oil

Rich hand cream – 180ml almond/moringa oil, 45ml coconut oil/butter/mango nut butter, 5ml lanolin, 15g
beeswax pellets, 150ml floral water, 2 drops geranium essential oil, 5 drops Vit E oil (add the beeswax to
the melting stage with Vit E, Emulsifier and oils)

Foot balm – 30ml avocado/almond/moringa/mango nut butter, 15ml beeswax, 1.25ml aloe gel, essential
oil (-3-4 drops) ocimum. Plus emulsifier

Exfoliating foot mask – 120gm maize meal, 85gm course sea salt, 120 ml almond/moringa
oil/avocado/mango nut butter.

Flax hair gel – 120ml water, 15ml linseed, 45ml aloe gel, few drops essential oil. Use a thinkenerin list
below

Moisturizing shampoo for dry hair – 60ml shampoo - see formation below, 60ml aloe gel, 5ml glycerin,
1.25ml avocado oil

Grapefruit shampoo boost for oily hair – 2.5ml aloe gel, 15ml grapefruit juice, shampoo (see formulaton
below)

Aftersun relief 1 – 3 drops essential oil(suggest 1 drop lavender-1 drop roman chamomile + 1 drop
Blue/german chamomile), green or chamomile tea(be better), 30ml aloe gel, sodium benoate.

Aftersun relief 2 - 30ml witch hazel, 5ml glycerin, 2.5ml kelp powder, 2 drop chamomile essential oil and 2
drop lavender essential oil.

Aftersun relief 3 - 30ml aloe gel, 60ml glycerin, 60ml rosewater, 4 drops essential oil

Aftersun burn spray – 15 drops lavender essential oil, 5 ml Vit E oil, 5ml vinegar, 120 ml aloe gel.

Aftersun gel – 100ml aloe gel, 20ml witch hazel, 5 drop chamomile essential oil, 5 drops lavender
essential oil.

Aloe lip gloss – 5ml aloe gel, 2.5ml coconut oil/mango nut butter, 5ml beeswax, emulsifier

Acne face mask – 7.5ml cosmetic clay, 2.5ml dried tea tree leaf powder, 2.5ml aloe gel, 1.25 ml witch
hazel, 3 drops of lavender or chamomile

Aloe dry skin treatment – 10-15 aloe gel. 15ml moringa/jojoba oil, 15ml sesame seed oil, 1.25ml vit e oil,

Skin ointment for scars – 7.5ml aloe gel, 10ml aqueous cream(use the formula above?), 10 Vit E drops

Aloe aftershave – 120ml aloe gel, 25ml distilled water, 1ml witch hazel, 10 drops frankincense essential
oil- Geranium 2drops, 1 drop, Orange Oil.

Tropical deodorant – 12ml aloe gel, 10ml coconut oil, 10ml bicarbonate of soda, 10ml arrowroot
flour/maize flour, 10 drop tea tree essential oil, 10 drop ocimum essential oil.




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Baby and hand wipes – 2 drop tea tree essential oil, 60ml aloe gel, 450ml distilled water, Ammonium
Laurel Ethyl Sulfate-AMLES. (similar to Sodium Lauryl Ethyl Sulfate which is use in most shampoos) 50-
90ml of ALES or SLS and also add some sodium Benzoate, 4gs.

Anti-fungal wipes (suitable for older babies) – 15ml calendula oil, 2 drops lavender 2drop tea tree, 45ml
liquid baby soap, 15ml distilled vinegar, 60ml aloe gel, 240ml distilled water.

Mozzie repellant – 10ml aloe gel, 30ml witch hazel, 10ml pure alcohol, 10ml distiller water, 10ml drops
ocimum essential oil, 2 drops geranium essential oil.

Mozie repellant 2 – 25ml aloe gel, 75ml witch hazel, 25ml distilled water, 20 drops ocimum essential oil, 5
drops geranium essential oil.

Toning Massage oil – 15 drops lippia kituiensis. essential oil, 5ml olive oil, 120ml ale gel

Shower gel – 180 ml distilled water, 120ml unscented shampoo (see formulation below), 30ml aloe gel, 5
ml sea salt, 15 drops essential oil, 1 drop of food colouring.


3.4 Natural ingredients that can be sourced from other bio-enterprises in Kenya
In addition to aloe extract, all of the ingredients mentioned below can be sourced from other small scale
bio-enterprise in Kenya, and also can be sources from wholesale chemical and product ingredient
suppliers in the industrial estate. These ingredients can be process at the rural level and are potential bio-
enterprises for these and other producer groups in the region.

Ingredient                Purpose

Moringa oil               Moisturizer
Mango nut butter          Deep moisturizing and skin protection
Avocado oil               Lubricant, moisturizer
Comfrey                   Healing agents mucilage and allantoin
Nettle
Essential oils            Natural fragrance
Floral water (from        Astringent (stimulating, reduce oiliness and refine
essential oil             open pores and unevenly textured skin)
distillation)
Beeswax                   Emulsifier/thickening agent
Shea Nut Butter           Therapeutic, moisturising and regenerating very
                          effective skin cream for all skin types.
Fullers Earth             Drawing skin pores and removing grime & residue oil
Cocoa Butter              Softening, deeply moisturizing, nourishing and
                          soothing to dry and problem skin encouraging
                          natural elasticity.
Henna                     Colour enhancer for dark hair
Chamomile                 Anti-inflammatory, antiseptic, carminative,
                          antispasmodic and sedative


NOTE: Purifying bees wax: Melting and filtering the beeswax first through some Muslin or a fine mesh.


3.5 Ingredients that will require external sourcing
All of the ingredients mentioned below are extracts from natural materials (i.e not synthetic) and are
available in Kenya; there are several companies in the industrial estate that supply these products. They
are relatively inexpensive to purchase wholesale


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Ingredient                 Purpose

Borax                      Emulsifier
Cider vinegar              Astringent
Witch hazel                Astringent
Glycerin                   Emulsifier

Sodium Benzoate            Preservative
Alcohol                    Astringent

Citric acid                pH stabaliser
Vit E oil                  Naturally derived
                           antioxidant,
Lanolin
Others, see list below     For alternatives and for
                           some bodycare products



3.6 Ingredients used in imported retailed aloe products
The following ingredients are found in a cross section of the imported aloe products retailed in Kenya.
The table below provides an indication of their purpose in product formulations and appropriate
substitutes which are available in Kenya and is a direct extract from natural materials (i.e non synthetic).

Ingredient                              Purpose

Phenoxyethanol,                         Efficient antioxidant,
Methylparaben,                          especially for liquid preservative formulation
Propylparaben.
Steric acid,                            anti-caking agents ???
Magnesium stearate
sodium lauryl,
sodium bicarbonate
Sodium hydroxymethyiglycanate,          Thickening agents, specially designed for thickening surfactant
tetrasodium etidronate                  systems.
disodium EDTA,
Carbomer (a.k.a. Carbopol) and TEA
(Thiethanolamine), Xanthan
ether sulphate                          Anti-caking agent, preservative or thicken agents??
penaerythrityl tetrastearate
ether sulphate
butyphenyl
alpha-isomethyl ionone
hexyl cinnamyl
hydroxyisohexyl 3-cyclohexene
carboxaidehyde
dicalcium phosphate
Ocentylsuccinate                        Preservative
Potassium Sorbate
Polysorbate
Aminomethyl Propanol,                   Emulsifier and buffering agent
Methylpropional
Cyclopentasiloxane:                     Acts as a spreading and wetting agent to assist skin penetration
Dimethicone,                            Protective layer which helps prevent transdermal water loss.
silicon dioxide.                        Silicone gums provide instant shine to hair. Silicones act to help
                                        seal moisture into the hair, preventing damage
Methyl Gluceth-20                       water-soluble liquid moisturizer and emollient, used in many up-
                                        scale lotions and moisturizers
Xylitol                                 Binder and stabilizer

NOTE: Pre thicken the aloe gel: Add the carbomer by stirring it in with low heat

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Annex 4. Relevant Commercial Harvesting & Processing Techniques
4.1 Small to Medium Scale Enterprise:
The outer, lower leaves of mature (2-3 years old for aloe vera, 3-4 years for most indigenous species)
plants are removed. The broader leaves of a four or five year old plant typically contain larger amounts of
the desired extracts and are also easier to handle. Depending upon the particular use or products that are
desired, the leaves can be processed immediately after cutting them from the plant or they can be stored
under appropriate conditions for varying time periods before they are processed. The leaves should be
pulled or cut from near the base of the plant, preferably without breaking or damaging any part of the leaf
prior to processing. One preferably uses a small knife of less than 6 inches, e.g., a pocket knife and cuts
the leaf at the base immediately above the stalk and peel away cleanly to prevent leakage of the clear gel
or contamination of the gel with the yellow sap. Any breakage or bruising of the leaf can result
degradation of the whole batch. The leaves are then cleaned by washing them with a mild scrubbing
action or spraying with a suitable detergent solution. After cleaning, the leaves are rinsed thoroughly in
clean water to remove any detergent solution. The bottom white or light colour portion of each leaf and
the tip-most portion are removed by cutting carefully with a small sharp knife. These portions contain
mostly yellow sap and can be separately processed. The remaining portion of each aloe leaf is then
crosscut into short segments, preferably one-half inch in length, and each segment is placed upright in
preferably de-ionized water resulting in the yellow sap draining from the segments.

Alternatively, if the collection is for the yellow sap another preparations is required: The segments are
placed upright in a dry collection container, preferably of stainless steel with a stainless steel wire mesh
bottom to allow drainage and for water contact to dialyze the leaves. The segments drain for twenty to
thirty minutes. The cut segments will eventually form a seal and stop draining. The yellow sap that is
collected, after a period of standing, will separate into two sub-portions; sediment and supernatant.
After completion of the procedures which remove the yellow sap from the cut leaf segments, the
segments are then pared to form fillets utilizing a wire slicer or paring knife to remove the outer rind or
skin of the leaf segments. The remaining internal gel portion (fillet) is inspected and hand cleaned to
remove any adhering skin or discolored portions and any residual yellow sap. Use a mild water spray, or
submerge the gel portion under flowing clean water to remove any of the yellow sap residue. The fillet
(internal gel) is drained for approx one hour. During this draining procedure, a slimy coating usually forms
on the surfaces of the gel, this coating, known as the mucilage, is collected by gravity or centrifugation.

The remainder of the gel, in the form of gel strips, may then be ground, shredded or blended to break up
the interstitial fibers, or the gel strips are forced through a wire mesh or filter screen to achieve
liquefaction. (Alternatively, the gel strips may be frozen and thawed and then mixed to produce a liquid
substance with fibers).This substance can then be filtered. This homogenized extract should have a pH of
4 to 5 (preferably nearer to pH4).

The finely homogenized aloe gel fillet solution is filtered through nylon mesh cloth filters (the gel is
pumped through the filter for several minutes before opening the exit port so that a sufficient amount of
fibers could build up to serve as the filter media).1000 litres of the filtered aloe gel fillet solution is pumped
into a 5,000 litre tank and 4,000 litres of 190 proof undenatured ethanol is added to the aloe gel fillet
solution. The solution is stirred for 20 to 30 minutes using a propeller agitator. The alcohol-gel solution is
then immediately transferred to stainless steel settling pans for approximately four hours.

4.2 Equipment suitable for rural based processing in Laikipia
All steps in the process described are performed at room temperature.
Processing equipment include stainless steel troughs, grinder, centrifuge, racks and filters.




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4.3 Larger Scale Commercial Factory Scale Processing For Aloe Gel

Equipment:
1. Previously cleaned tanks, mixers sanitized with 50% isopropyl alcohol (IPA) solution a rinsed free of
IPA with hot deionized water.
2. Pumps and attached hoses were drained with 5% "HTH" chlorine swimming pool solutions, then
flushed with water.
3. The pumps and attached hoses were sanitized with 50% isopropyl alcohol solution. Pumps and
attached hoses were flushed with hot deionized water until free of isopropyl alcohol.
4. A homogenizer and attached hoses and pumps were sanitized with 50% isopropyl alcohol solution.
The homogenizer and attached hoses were flushed with hot deionized water until free of isopropyl
alcohol.

Factory technique used for Aloe Vera:
                                                                F
Aloe leaves are transferred in a refrigerated truck at 40 to 45° within eight hours after harvest and stored
under refrigeration at 40 to 45°F until processed t o reduce degradation. The stored leaves (10-15kgs) are
placed in a pre-wash bath of an aqueous solution of calcium hypochlorite at room temperature
substantially to remove surface dirt and kill bacteria on the leaves. The aqueous solution of calcium
hypochlorite is added (approximately 0.125 grams of 98% calcium hypochlorite to one liter of water) to
produce a solution (containing 50 ppm of free chlorine). The leaves remained in the pre-wash bath for a
period of approximately five minutes.

The cleaned leaved are placed on a conveyor belt and through an automated washer, which washed the
leaves with room temperature water to remove the residue calcium hypochlorite from the leaves. The
leaves are visually inspected and hand scrubbed where necessary to remove any surface dirt remaining
on the leaves. Such leaves were then rinsed with room temperature water.

Draining: The tip and butt portion is removed from each leaf and the leaves are placed in stainless steel
basket containers, placed together on top of a funnel shaped stainless steel collector with mesh bottom.
The yellow sap is allowed to drain from the leaves for approximately 30 minutes through the mesh bottom
of the stainless steel basket into the collector. The stainless steel basket containing the aloe leaves is
then removed from the collector and submerged in a room temperature water bath of continuously flowing
water for 30 minutes to one hour to remove any remaining yellow sap from the leaves. The leaves then
soak for another 30 minutes. The rind is then removed from each leaf with a sharp knife or wire to
produce an aloe gel fillet. The aloe gel fillets are visually inspected and any contaminated parts are
rejected (usually characterized by yellowish discoloration).

Grinding; The uncontaminated aloe gel fillets are placed in a stainless steel garbage grinding unit (same
as used for industrial garbage). The coarse ground fillets then passed to a 5,000 litre stainless steel vat.
The course ground aloe gel fillet solution is then pumped to a homogenizer (typically used in dairy
processes for the homogenization of milk). The coarse ground aloe gel fillet solution was finely
homogenized under a pressure of about 1,500 psi. The finely homogenized aloe gel fillet solution is then
pumped to a stainless steel storage tank. The total mass of the homogenized aloe gel fillet solution is 20
to 60 % of the starting leaf mass. If necessary, the homogenized product is dialyzed using ultrafiltration.

Filtering out the aloin and emodin: The second phase of processing consists of passing the Aloe liquid
through a series of filters that remove the aloe emodin (bitter-tasting, harsh laxatives) as well as any
microscopic traces of leaves, sand or other particles. A Press Filter is used during this phase. First, the
Press Filter is attached to the storage tank containing the pre-filtered Aloe liquid. The Press Filter's
carbon-coated plates absorb the aloin and aloe emodin that is a by-product of grinding the whole leaf.
The Aloe vera liquid is continually passed through the Filter Press until 99% of the aloin and aloe emodin
are removed. This filtered product is then placed in a second holding tank. At this point, a Press Filter
containing five (5) micron filter paper is attached to this holding tank. The Aloe liquid is passed through
this filter medium until it shows no signs of residue. Cold filtration processing is then done as final
purification procedure before the Aloe liquid is ready for stabilization.



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Stabilisation: The clear Whole Leaf Aloe Vera juice liquid is transferred to another clean and sterilized
stainless steel container. The preservative (sodium benzoate, 1%) and pH stabilizing agents (ascorbic
and citric acid) are thoroughly mixed into the batch. When creating Whole Leaf Aloe Vera concentrate(by
vacuum-removing some water), potassium sorbate is added because of the increased nutrients and
sugars to prevent mould and fungus growth.

Quality control: The Aloe vera juice liquid is filled into 55 gallon drums and quarantined pending release
by the laboratory. The laboratory removes samples from the processed batch of Aloe liquid used for aloe
juice; several samples are placed into long-term storage and retained for future inspections for up to three
(3) years after processing. Some of the samples are placed on a seven (7) day Quality Control (QC) test
to confirm the absence of any microbial contamination. The QC tests for:

                                 Gram Negative Bacteria Staphylococcus
                                 Gram Positive Bacteria Yeast
                                 Salmonella               Mould

The pH value is checked and the appearance - turbidity, clarity, and color - is evaluated. If all aspects of
the test meet the standards established for a quality product free from contamination, the Aloe liquid is
released by the Quality Control Department for shipment to the manufacturer. Whole leaf Aloe Vera juice
is again placed in quarantine and samples are taken from each drum for a five (5) day Quality Control test
to confirm freedom from the following organisms:



                                 Gram Negative Bacteria Staphylococcus
                                 Gram Positive Bacteria Yeast
                                 Salmonella               Mould

If there is no growth, the product is approved and placed into inventory for the manufacture of drinks or
cosmetics. If the product does contain any micro-organisms, it is rejected and returned to the processor
for replacement. Approved Aloe is placed into a cleaned and sanitized mixing tank. State-of-the-art
handling and transferring techniques are employed to ensure the Aloe liquid does not become
contaminated during this stage. A sample is removed from the tank and the laboratory checks the
following characteristics:

                                                Clarity
                                     Colour     Odour        Turbidity
                                     pH Value Appearance Taste

If all the test parameters meet with established standards, additional ingredients are added to create the
drink or cosmetic finished product.

4.4 Equipment used for large scale factory processing
As described above. See below.

4.5 Equipment Suppliers:
Mark McMillan
Email: sales@genemco.com
Administrative Offices, 4455 Carter Creek Pkwy.
Bryan, TX 77802. Phone: 979-268-7447



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Annex 5. Aloe Vera, the Health Branded Aloe
5.1 Active components of the Aloe Vera plant

The Aloe-Vera gel consists of 96 % water. But the curative properties lies in its natural nutrients and vital
substances. The nutritious ingredients of Aloe Vera can be divided into the following groups:

Vitamins: It is rich in most vitamins like Vitamin D, A (the antioxidant beta-carotene), C and E and even
traces of B12, one of the very few plant sources of this vitamin.

Minerals: Aloe Vera contains more than 20 minerals, like Calcium, Sodium, Potassium, Manganese,
Magnesium, Copper, Zinc, Chromium and the anti-oxidant Selenium.
Even though minerals and trace elements are only needed in very small quantities, they are essential for
the proper functioning of various enzyme systems in different metabolic pathways.

Salicylic acid: It is anti-inflammatory and anti-bacterial properties.

Sugars: Known as mucopolysaccharides, they enhance the immune system and help to detoxify. In
topical preparations, the sugars are also the main moisturisers.

Anthraquinones: There are twelve Phenolic compounds which are found exclusive in the plant sap.

Lignin: It provides a penetrative environment so the other ingredients are absorbed into the skin.

Saponins: They have cleansing, and antiseptic properties, acting powerfully against bacteria, viruses,
fungi and yeasts.

Fatty Acids: Cholesterol, Campesterol, ß.Sisosterol and Jupeol. These four plant steroids found in Aloe
Vera are important anti-inflammatory agents.

Amino acids: The body needs 22 amino acids - our Aloe Vera gel provides 20 of these. More
importantly, it provides 7 out of the 8 essential amino acids which the body itself cannot synthesise.

The stabilised excerpt contains a multiplicity of rich trace elements and the vitamins A, C and E from raw
Aloe Vera gel. 11 of the 20 admitted amino acids, and 7 of 8 vital amino acids, was proven in samples of
the stabilised gel.

In the USA the "Aloe Vera Research Institute" in Cypress, California has made for some years it's duty to
investigate this nature plant scientifically. We know thus in the meantime the chemical composition of the
Aloe Vera plant. In alphabetical order the following vital amino acid is contained in the Aloe Vera plant:

- Alanin
- Arginin
- Asparaginacid
- Glutaminacid
- Glyzin
- Histidin
- Lysin
- Methionin
- Prolin
- Serin
- Tyrosin

In addition, the mineral composition is also important:


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- Iron
- Calcium
- Calcium Carbonate
- Magnesium
- Manganese
- Sodim
- Zinc

5.2 Applications

The important therapeutic uses of Aloe Vera include
• The long chain mannan polysaccharides in it helps activate and boost the Immune System.
• The magnesium lactate and salicylates in it effectively avert Allergies, Sinusitis and Bronchitis.
• The molecules in it act as anti-inflammatory agent, a cure for arthritis, and promote good circulation
   for the heart and nervous system.
• The polysaccharides in it bring down the bodies serum lipids, and thus lower triglyceride and LDL
   level (bad cholesterol) and increase of HDL (good cholesterol).
• As an antioxidant, it guards against damage by free radicals and unwarranted toxins in the body. It
   also regulates blood pressure, and acts in rheumatism, arthritis, and infections of the kidney, the
   urinary tract and the prostate.
• By the combined and synergic effect of the various ingredients in it, it aids in treatment of peptic
   ulcers, stomach disorders, acidity, indigestion, gastritis and ulcers, colitis and haemorrhoids, cirrhosis,
   hepatitis and diabetes.

The list of different illnesses and conditions, aided by the use of Aloe Vera is indeed impressive, covering
everything from burns and slight infections to very serious conditions.

    A. Acne, aching joints & muscles, asthama, athletes foot, abscesses, arthritis, allergy rashes, age
       spots, acid indigestion.
    B. Brown skin spots, burns, boils, blood pressure, bruising, bad breath, bleeding, bowel problems /
       conditions, blisters, bronchitis.
    C. Cancer treatment (i.e. helps case the radiation effects), cuts & wounds, colon cleansing,
       constipation, calcium, chapping, cataracts, craddle cap, cystitis, candida, circulation, colitis, colic.
    D. Digestive problems, diarrhoea, dermatitis, dandruff, diabetes, detoxification, duodenal ulcer,
       diaper (nappy) rash, denture sores, depression.
    E. Eye and ear problems (inflammation, infection), eczema, energy loss.
    F.
    G. Gum disease, bleeding gums.
    H. Hair and scalp, heat rash haemorrhoids, headache.
    I. Infection, inflammation, itching, irritable bowel syndrome, indigestion, insomnia, influenza, inset
       bite.
    J. Jaundice
    K. Kidney ailments
    L. Liver ailments, laryngitis.
    M. Moisturizes, mouth ulcers, muscle cramps.
    N. Nasal congestion, nutrition, cracked nipples, nausea.
    O. Operation recovery.
    P. Psoriasis, prickly heat, pimple, peptic ulcer, pain relief.
    Q. Radiation burns, razor burn, rheumatism, rashes.
    R. Sear removal, scalp problems, sinusitis, sore throat, scalding, stomach dusorders, sciatica,
       strains, sprains, skin problems, stress shingles, stings, styles, sunburns.
    S. Tonsillitis, thrush, teething, tennis elbow.
    T. Ulcers (all kinds)
    U. Varicose veins, veterinary treatments, venereal sores.
    V. Warts, wind chapping.

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Aloe gel may help to:

    •   Speed healing of first-degree burns, including sunburns. The gel is excellent for easing first-
        degree burns (including sunburns) and certain minor second-degree burns. If applied after the
        burn has cooled, it will relieve pain and inflammation and accelerate healing. In one study of 27
        people with moderately severe burns, those who used aloe vera healed in about 12 days on
        average, whereas the control group, who covered the affected areas with a regular gauze
        dressing, took 18 days to heal.
    •   Soothe and hasten healing of cuts, scrapes, and other minor wounds and skin irritations.
        The gel contains a number of active ingredients, including substances known to help relieve pain,
        reduce swelling, quell itching, and increase blood flow to an injured area. Some research even
        indicates that the gel has antifungal, antibacterial, and antiviral properties.
        Conversely, aloe vera gel may not help treat deeper, infected wounds, or those incurred during
        surgery. In one study at a Los Angeles hospital, 21 women were given either aloe vera gel or a
        placebo for wounds resulting from a caesarean section or surgery to the abdominal wall. When
        the gel was used, it took 83 days for the wounds to heal; when the placebo was applied, it took 53
        days. (Both groups also received standard anti-infective treatments.)
    •   Lessen painful effects of shingles. Applied gently to the painful lesions that characterize this
        condition, aloe vera gel acts promptly to soothe these sores and provide relief from itching. It also
        works to decrease the chances that the blisters will become infected.
    •   Reduce symptoms of psoriasis. The ability of aloe vera gel to promote healing and quell itching
        and pain may offer some relief to those who suffer from this troubling condition. In a recent study
        of 60 people with chronic psoriasis, 83% of those who applied aloe to lesions three times a day
        for eight months experienced substantial improvement. Only 6% of those using a placebo
        benefited from its effects.
    •   Ease heartburn, ulcers, diverticular disorders, and other types of digestive upset. A juice
        made from the aloe gel acts as an anti-inflammatory and can be taken internally as a remedy for
        certain digestive complaints. European folk medicine calls for using aloe vera juice to relieve
        heartburn and ulcers.
        While there is very little substantive evidence to support these internal uses, preliminary research
        has shown promising results. In one Japanese study, 17 of 18 patients who took aloe vera juice
        found some relief for their peptic ulcers. However, none of the participants was given a placebo,
        so comparisons of its effectiveness could not be made. Other clinical trials in Japan indicate that
        certain compounds in aloe vera reduce the secretion of stomach juices and the formation of
        lesions.

Example Prescriptions:

For burns, cuts, scrapes, shingles, and other skin problems: Apply aloe gel to affected area two or
three times a day. For sunburns, you can also add 1 or 2 cups of aloe vera juice to a tub of lukewarm
water and soak.
For heartburn: Drink 2 ounces of juice four times a day.
For ulcers and diverticular disorders: Drink 1/2 cup of aloe vera juice twice a day for one month. If you
are also taking psyllium for a diverticular disorder, allow at least two hours to elapse before having aloe
vera juice.
For warts: Dab a small amount of fresh or prepared aloe vera gel on a compress made of cotton gauze
or flannel, and place over the wart. Change the dressing and apply new aloe vera daily. Improvement
should be evident in three to four days.

General Interaction: Be aware that the long-term use of any laxative, including aloe vera latex, can
cause you to lose an excessive amount of the mineral potassium. The low blood levels of potassium can
be further worsened if you are also taking a potassium-draining diuretic ("water-pill") like
hydrochlorothiazide or furosemide.




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    •   Dangerous heart rhythm abnormalities can develop if you take a digitalis heart medication (like
        digoxin or Lanoxin) along with a potassium-losing diuretic and the aloe vera latex. Consult your
        doctor for guidance.
    •   If you are on oral corticosteroids, such as beclomethasone, methylprednisolone, or prednisone, it
        is important not to overuse or misuse aloe vera juice. A potassium deficiency can develop, and
        you may experience toxic effects from the medication.
    •   If you are on the oral corticosteroid fludorocortisone (Florinef), it is important not to overuse or
        misuse aloe vera latex. A potassium deficiency can develop, and you may experience toxic
        effects from the medication.
    •   As a topical treatment, aloe vera is quite safe. Occasionally, some people develop a mild allergic
        reaction marked by itching or a rash. If this occurs, discontinue use.
    •   Due to improper processing, aloe vera juice sometimes contains small quantities of the laxative
        compound in aloe latex. Should you begin to have cramps, diarrhea, or loose stools, do not ingest
        any more of the juice and replace it with a new supply.

Cautions

    •   Don't take an aloe vera latex laxative if you are pregnant or breast-feeding; it may trigger uterine
        contractions. Also avoid using it during a menstrual period.
    •   Children and the elderly should not consume an aloe vera latex laxative internally. In addition,
        laxatives of any kind should never be used by anyone with an intestinal obstruction, an acutely
        inflammatory intestinal disease (such as Crohn's disease or ulcerative colitis), appendicitis, or
        abdominal pain of unknown cause.




5.3 Example of Commercial Aloe Products

Aloe Joint Formula: A single 1 oz. serving daily delivers the full 1,500 milligram dosage of glucosamine
shown in clinical tests to help lubricate nourish cartilage, increase the range of motion and flexibility and
help maintain joint comfort. Ingredients: Aloe Vera Gel from Concentrate, Fructose, Citric Acid, Natural
Lemon-Lime Flavor, Sodium Benzoate, Potassium Sorbate.

Herbal Force Aloe Vera Juice: Although the use of aloe vera gel on the skin is well-known to relieve
burns and sunburn, little attention has been given to the amazing effects of drinking properly prepared
aloe vera juice. In fact aloe vera has an amazing number of healthful effects when ingested orally.
Aloe Vera Juice restores and maintains:
Ingredients: Aloe Vera, Cat's Claw Extract, Chamomile Extract, Burdock Root Extract, Hawthorne Berry
Extract, Astragalus Root Extract, Sheep Sorrel Extract, Pau d' Arco Bark Extract, Slippery Elm Bark
Extract, Rhubarb Root Extract, Sodium Benzoate (0.1%), and Natural Fruit Extract.

Pure Aloe Vera Juice: A recent study presented at the 2002 International Aloe Science Council
Conference showed that effectiveness of vitamins increased 3 fold when taken with aloe. The study was
done with both vitamin C (water soluble) and vitamin E (fat soluble). Taken with aloe, each vitamin was
found to be 3 times more present and to last longer in the blood stream than when taken with water.
Aloe supports the healthy functioning of the kidneys, liver, colon and skin system and supports healthy
elimination of toxins.

Herbal Force Aloe Vera Gel: Use aloe vera on the skin to relieve burns and to keep skin looking clean,
clear, smooth, toned, hydrated and glowing with health. Ingredients: Aloe Vera with Cat's Claw Herb,
"Essiac" Herbs (Sheep Sorrel, Burdock Root, Slippery Elm Bark Extract, Rhubarb Root Extract),
Chamomile, Astragalus, Hawthorne Berry, Pau d' Arco, Green Tea, Ionized Colliodal Silver, Hyaluronic
Acid, Glycereth-26, Sodium Benzoate and Carbomer.



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 5.4 Explanation of Commercial Aloe Products Ingredients

 PRODUCT EXAMPLE

 Deionized water (Aqua)
 Aloe Barbadensis Leaf Extract (Aloe
 Vera)
 Cyclopentasiloxane
 Dimethicone
 Methyl Gluceth-20
 Tocopheryl Acetate (Vitamin E)
 Arnica Montana Flower Extract (Arnica)
 Symphytum Officinale Leaf Extract
 (Comfrey)
 Chamomilla Recutita (Matricaria) Extract
 (Chamomile)
 Achillea Millefolium Extract (Yarrow)
 Acrylates/C10-30 Alkyl Acrylate
 Crosspolymer
 1,2 Hexanediol
 Caprylyl Glycol
 Butylene Glycol
 Aminomethyl Propanol
 Phenoxyethanol




                                            Deionized
Deionized water:                            (purified water/demineralized      water):
(Aqua)
                                            Deionized water is water that lacks ions,
                                            such as cations (positive charged ions)
                                            from sodium, calcium, iron, copper and
                                            anions (negatively charged ions) such as
                                            chloride and bromide. This means it has
                                            been purified from most ions. This type of
                                            water is produced using an ion exchange
                                            process.

                                            Deionized water is similar to distilled
                                            water, in that it is useful for where the
                                            presence      of   impurities   may    be
                                            undesirable. The lack of ions causes the
                                            water's resistivity (resistivity to an
                                            electrical flow) to increase. Ultra-pure
                                            deionized water can have a theoretical
                                            maximum resistivity up to 1000 times
                                            greater than common tap water. This
                                            means that pure deionized water is
                                            theoretically up to 1000 times more
                                            soluble than common tap water.



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Aloe Barbadensis                           Topically, aloe vera benefits dry and
Leaf Extract:                              cracked skin, burns, blisters, frostbite,
                                           insect bites, and allergic reactions.
                                           Topical aloe vera application also helps to
                                           assure that when applying aloe products,
                                           you will get the highest concentrations of
                                           the natural healing agent delivered
                                           directly          to        your          skin.
                                           It has traditionally been used to treat
                                           various      skin    conditions,    including
                                           psoriasis, eczema, inflammations, burns
                                           and wounds. It is also a great skin
                                           moisturizer that helps to keep skin supple
                                           by bringing oxygen to the cells, and
                                           therefore increasing the synthesis and
                                           strength          of       skin        tissue.
                                           Studies show that aloe vera improves the
                                           skin's ability to hydrate itself, aids in the
                                           removal of dead skin cells and has an
                                           effective penetrating ability that helps
                                           transport healthy substances through the
                                           skin.


Cyclopentasiloxane:                        A colorless,        odorless,   transparent,      more info on
                                           nongreasy silicone fluid. It has a low            Cyclopentasiloxane
                                           viscosity and surface tension and a
                                           relatively high vapor pressure which
                                           allows the majority of the silicone portion
                                           to evaporate from the surface to which it
                                           is applied. It is used primarily in cosmetic
                                           products as a spreading or wetting agent
                                           and can provide light lubrication to hair
                                           and                                    skin.




Dimethicone:                               Unmodified silicones stay on or near the
                                           surface of the skin. Not only are the
                                           molecules too big to physically enter past
                                           the upper living cells — they associate
                                           with the upper layer of drying skin — but
                                           they    also   cannot     penetrate    cell
                                           membranes due to their large size.

                                           They also dislike both the water and
                                           proteins inside cells. They evaporate
                                           quickly after helping to carry oils into the
                                           top layer of epidermis. From there, they
                                           may be absorbed by the skin. They form a
                                           barrier layer on the skin which must be
                                           renewed as the skin sloughs off*.


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                                           Silicones form a protective layer which
                                           helps prevent transdermal water loss — a
                                           very useful characteristic for many
                                           products. Silicone gums provide instant
                                           shine to hair. Silicones act to help seal
                                           moisture into the hair, which helps prevent
                                           many kinds of damage.
                                           *Skin MD Natural™ uses a proprietary
                                           blend, consisting of several different
                                           dimethicones, that offer a very high
                                           degree of protection to the skin.

Methyl Gluceth-20:                         It is a water-soluble liquid moisturizer and
                                           emollient. As an ingredient in cosmetic
                                           formulations it imparts a smooth and
                                           gentle skin feel. Due to its exceptional
                                           water retention properties it is found in
                                           many upscale lotions and creams.




Tocopheryl Acetate:                        Vitamin E is an antioxidant* that protects
(Vitamin E)                                cell membranes and other fat-soluble
                                           parts of the body.
                                           * Antioxidants work in several ways: they
                                           may reduce the energy of the free
                                           radical**, stop the free radical from
                                           forming in the first place, or interrupt an
                                           oxidizing chain reaction to minimize the
                                           damage caused by free radicals.

                                           ** Free radicals are highly reactive
                                           compounds that are created in the body
                                           during normal metabolic functions or
                                           introduced from the environment. Free
                                           radicals are inherently unstable, since
                                           they contain "extra" energy. To reduce
                                           their energy load, free radicals react with
                                           certain chemicals in the body, and in the
                                           process, interfere with the cells' ability to
                                           function normally. In fact, free radicals are
                                           believed to play a role in more than sixty
                                           different health conditions, including the
                                           aging process.

Arnica Montana                             Arnica Montana is used externally to heal
Flower Extract:                            wounds, bruises, sprains, aches, and
(Arnica)                                   pulled tendons. Helps with sore, tired


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                                            muscles and carpal tunnel syndrome.

                                            A tea from the flowers can be used as a
                                            compress on the abdomen to relieve pain.
                                            Arnica can be toxic if taken internally.

                                            Arnica is an antibiotic, anti-inflammatory,
                                            and pain reliever. Minimizes the effect of
                                            tissue trauma and aids in the healing
                                            process.




Symphytum Officinale                        The 1997 Commission E on Phytotherapy
Leaf Extract                                and Herbal Substances of the German
(Comfrey)                                   Federal Institute for Drugs recommends
                                            Comfrey herb for External: Bruises,
                                            sprains.

                                            "Dosage:     Ointments      and      other
                                            preparations for external application with
                                            5 - 20 percent dried drug; equivalent
                                            preparations. Mode of Administration:
                                            Comminuted herb and other galenical
                                            preparations     for    external     use."

                                            Comfrey has an ancient reputation as a
                                            wound-healer. Comfrey abounds in the
                                            healing agents mucilage and allantoin.


Achillea Millefolium                        Externally, yarrow is styptic (stops
Extract:                                    bleeding), astringent (makes tissue
(Yarrow)                                    contract), antiseptic (inhibits bacterial
                                            growth), vulnerary (helps tissue heal),
                                            anti-inflammatory,     and      possibly
                                            anesthetic.

                                            For external use, generally either the
                                            fresh or dried plant material is used as a
                                            poultice, or a tea made from the plant is
                                            used in compresses or as a wash. It's
                                            also sometimes used in ointments.




Chamomilla Recutita                         Over the centuries, chamomile has gained      more info on Chamomile
Extract:                                    a reputation as an herb of many uses.
(Chamomile)
                                            It is said to have been one of the herbs of
                                            choice of Asclepiades, a physician who

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                                           lived in Bithynia around 90 B.C. Pliny the
                                           Elder, one of the most famous of Roman
                                           naturalists who wrote extensively on herb
                                           use, is said to have given over his medical
                                           care to Asclepiades, because he was so
                                           skillful     in     prescribing      herbs.

                                           In modern terms, the uses of chamomile
                                           differ little from ancient authors. Its use is
                                           not a throw-back to Medieval times.
                                           Chamomile flowers are still an official drug
                                           (recognized by government authority) in
                                           the pharmacopoeia of 26 countries. Its
                                           medicinal value is due to the constituents
                                           of            its       essential          oil.

                                           Antiinflammatory, antiseptic, carminative,
                                           antispasmodic and sedative activity are
                                           attributed to Chamomile flowers in
                                           addition to promoting wound healing.




Acrylates/C10-30 Alkyl Acrylate            This thickener is specially designed for
Crosspolymer:                              thickening surfactant systems. An "easy-
                                           to-disperse" cross-linked polyacrylic acid.
                                           It delivers excellent thickening efficiency
                                           and suspending capability and long
                                           viscous                                flow.

                                           It is specifically designed to make
                                           dispersions in water less susceptible to
                                           lumping and easier to pump and handle
                                           due to its low dispersion viscosity before
                                           neutralization.


1,2 Hexanediol:                            Skin MD Natural™ contains a proprietary
                                           formulation, consisting of 1,2 Hexanediol
                                           and Caprylyl Glycol, that is one of the
                                           most, if not the most, effective
                                           humectants*         available      today.

                                           An efficient antioxidant, Alpha-Lipoic Acid
                                           at high dose levels has been shown to
                                           increase glucose uptake. Alpha-Lipoic
                                           Acid also protects against cholesterol
                                           oxidation.



Caprylyl Glycol:                           Skin MD Natural contains a proprietary            more info on
                                           formulation, consisting of 1,2 Hexanediol         Caprylyl Glycol
                                           and Caprylyl Glycol, that is one of the
                                           most, if not the most, effective


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                                           humectants*          available        today.

                                           It is a liquid preservative formulation
                                           which consists of phenoxyethanol and an
                                           emollient    base.    Protects   against
                                           antimicrobical growth from bacteria and
                                           yeast while giving the finished product
                                           exceptional feel.




Butylene Glycol:                           A butylene glycol extract of the whole root
                                           of the Kava Kava plant. Because it is not
                                           concentrated, alcohol is not used in the
                                           extraction process. The Kavalactone
                                           profile is equivalent to the natural root.
                                           Therefore, it may be used as the
                                           traditional Kava-Kava extract infusion in
                                           personal care products.


Aminomethyl Propanol:                      Is used as an emulsifier and a buffering
                                           agent (keeps the pH of a mixture neutral).
                                           It controls the water solubility of the resin
                                           film in hair sprays, and makes the finished
                                           film more resistant to humidity.


Phenoxyethanol:                            Phenoxyethanol is an organic chemical
                                           compound often used in dermatological
                                           products such as skin creams. It is a
                                           bactericide, often used in place of sodium
                                           azide in biological buffers as 2-
                                           phenoxyethanol is less toxic and non-
                                           reactive with copper and lead.




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Annex 6. Commercial Proposal from AloeTrade America
PROPOSAL OF TECHNICAL ASSISTANCE SERVICES
DEVELOPMENT OF A BUSINESS PLAN AND INVESTMENT PROJECT FOR AN ALOE
PROCESSING UNIT IN LAIKIPIA AREA

PREPARED & DESIGNED BY ALOETRADE AMERICA LLC, MIAMI, FL, USA FOR LAIKIPIA
WILDLIFE FORUM, NANYUKI, KENYA


INTRODUCTION
This proposal has been prepared and designed by Aloetrade America LLC, located at Miami, Florida,
USA and Aloetrade of Argentina (thereinafter ALOETRADE) to be presented for evaluation to the Laikipia
Wildlife Forum (thereinafter LAIKIPIA).

The proposal has the objective to develop an investment project with its complete feasibility study, plus
the technical assistance services to design an aloe processing plant (design layout, define the
infrastructure required and equipment to be used) in Kenya and the know how process and technology to
produce and stabilize the aloe juice, all of it to be provided by ALOETRADE to LAIKIPIA or the entity
which LAIKIPIA nominates.

This technical assistance and transfer of the know how consists of an information package and know how
in possession of ALOETRADE to be transferred to LAIKIPIA or the nominated recipients designed by
LAIKIPIA, related to the aloe industrial process, from the reception of leaves until the obtention of either
aloe juice or aloe gel as raw material, or aloe juice bottled ready to be marketed at wholesale, with the
necessary adaptations of processes and products.

In the first stage, the project intends to process the aloe from actual wild population or commercial
plantations in the Laikipia area, Kenya, in a location to be defined (preferably close to aloe populations or
aloe plantations) to obtain aloe by-products, such as raw juice, bottled juice and other products.

Nevertheless, the plant shall be designed to produce in future new product developments aimed to fulfil
potential demand from other market segments such as cosmetic industry, human nutrition and dietary
supplements industry, pharmaceutical industries, agricultural sector, veterinary industry and animal
nutrition industry, for the international markets.

The project includes

STAGE A - INVESTMENT PROJECT DEVELOPMENT.
It implies to conduct and develop a feasibility study and the consequent investment project –the business
plan- to establish an aloe industrial processing plant, to obtain aloe raw juice and aloe juices for final
consumption to be marketed in regional, national and international markets. This technical information is
offered as a written final document that constitutes the complete investment project or business plan, that
will be used to justify and to define the final amount to be invested and the related operational costs when
project be in operation at future.

STAGE B- TECHNICAL ASSISTANCE SERVICES AND KNOW HOW TRANSFER.
It includes the technical assistance services and the transfer of know how, from ALOETRADE to
LAIKIPIA, related to the aloe industrial process, from the reception of leaves at factory until the obtention
and stabilization of either aloe juice or aloe gel as raw material, or aloe juice bottled ready to be marketed
at wholesale, with the necessary adaptations of processes and products.

This technology transfer process includes information related to the layout of the plant, engineering
related aspects, definition of equipments and devices, know how to manufacture the products –from the
reception of aloe leaves to the final product to be manufactured, including product development phases.


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The technical information to be provided in this stage is offered both in written format (documents) and in
location with our consultants. The information is for the industrial process above described, and do not
cover other aspects such as marketing research, distribution channels, fiscal and financial aspects,
human resources, organizational aspects, and legal issues.

STAGE C - COMMERCIAL ASSISTANCE SERVICES.
This assistance implies the use of the business network established by Aloetrade America LLC, Aloetrade
and its partners companies and web sites, in order to promote the international marketing and trade of the
products to be manufactured by the Kenyan industrial plant at LAIKIPIA.


JUSTIFICATION OF THE PROJECT

THE INTERNATIONAL ENVIRONMENT

THE ALOE MARKETS
The market for aloe is expanding at a good expansion and its level of growth stays with certain stability.
At international level, some markets are growing at levels reaching figures near a 20% annual rate,
although other markets show average values of between 8% to 18% of annual growth. The aloe industry
at worldwide level has reported in recent years an annual average growth of 16%, with some peaks of
25%, measured at ex-works figures.

In some cases, the aloe market has had a growth of 5 or 6 fold the average of the national GDP of
various countries, as it is the case of Spain and Italy in recent years. The worldwide market for raw aloe
bulk products, aloe finished products and products using aloe in their composition, according to private
estimations, has a total worldwide value estimated in USD 27 billion a year. The value in itself is high
because of the incidence of the final value of cosmetic products that contain aloe in their formula, and by
the high incidence that has the main 10 American corporations in this business, where some of them,
operate under multilevel marketing systems, generating substantial increases in the value of goods sold.

Usually, the price difference between ex-works prices and final consumer prices are 8 or 9 fold, as it
happens for instance in the case of the largest corporation, Forever Living Products.

There is a high demand in the different product presentations. The aloe worldwide trade (mainly
considering raw materials, ingredients and some finished products) is estimated in about 180 million
dollars. The numbers are still vague, since the aloe does not have a proper tariff nomenclature
(Harmonized System classification) and it is included into the HS classification next to other flavourings
and plant extracts, not being able to determine in an accurate way their transaction values.

In addition, in the cases of cosmetics, the value of exports and imports of companies into this market, has
a similar circumstance, because the aloe cosmetics do not have a tariff classification that identifies them
as opposed to the rest of cosmetics. Therefore, the total value of this market becomes complex and
vague.

The most attractive markets for aloe products are the United States, Spain, France, United Kingdom,
Germany, Italy, Japan and Korea.

An important growth area in the aloe demand actually is the functional foods markets, where aloe is one
of the ingredients most required.




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STAGE A. INVESTMENT PROJECT DEVELOPMENT
The main objective of this stage is to develop a feasibility study and the consequent investment project to
establish an aloe industrial processing plant in Kenya (in a location to be defined yet at Laikipia area), to
obtain aloe raw juice, aloe juices for final consumption to be sold at local, national and international
markets mainly, and aloe bitter sap and/or concentrated sap for international markets. This technical
information is offered as a written final document that constitutes the complete business plan, that will be
used to justify and to define the final amount to be invested and the related operational costs when the
factory be in operation.

In one first stage, the investment project will be in operation to produce two lines of products:
         • Aloe bulk juice for its use in different industries, using raw material sourced from wild and
              commercial plantations located at Laikipia region, and finished aloe bottled juices ready for
              wholesale, using the aloe bulk juice produced firstly.
         • Aloe bitter sap, aloe bitter in block and concentrated aloe bitter with different aloin content.
The aloe bottled juices will be manufactured for later sales into the national, African regional markets and
international markets.

DESCRIPTION OF THE WORK ACTIVITIES TO BE PERFORMED BY ALOETRADE AMERICA LLC -
ALOETRADE

Information Sources
The data for this project will be obtained in various sources:

DOCUMENTARY RESEARCH
Secondary information of different sources
Sectoral statistics
Balance of companies
Publication extracts
Sectoral notes
Data bases
Own ALOETRADE data bases
Industrial information already verified by ALOETRADE
Markets data obtained and available by ALOETRADE

ON FIELD RESEARCH IN KENYA
Personal contacts with aloe competing companies
Contacts with suppliers
Contacts with distribution channels of aloe products
Contacts with industries
Contacts with referring people into the industry and organizations
Contacts with civil employees of Kenya public agencies and organizations


II. Methodology
The search of documentary information is made in United States and Argentina. Some interviews, are
made on location or by telephone in Kenya and the USA. The final writing (which includes compilation,
evaluation and conclusion) is made at our Miami and Buenos Aires offices.

The work understands the development of an investment project for an aloe industrial processing plant, in
a location to be defined in Kenya. The items to be included in the final report are those described below.

A final presentation of the work is made before the funding NGO or donors which finance this project, in
Nanyuki, Kenya.




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III. Execution Time
The job can be completed between 90 to 120 days approximately. The execution time may have
variations depending on the final contents to be included into the projects.

IV. Final Cost

Fees

The fees for the complete job amounts to USD 32,800.00

Travel and Accomodation

Travel to Kenya, Lodging and meals and incidental travel expenses for 2 journeys: total USD 6,600.00

Grand total: USD 39,400.00


PROJECT LEADER
Aloetrade America LLC - Aloetrade.
Project Participants

STAGE A
1 Project Director: Dr. Daniel Avaro
1 Industrial Engineer: Ing. Oscar Balumelli
1 Senior Economist: Dr Rodolfo Paez
1 Junior Economist: Lic. Lucas Inchaurbe
1 Market Analyst Senior: Dr. Natalia Liviero

STAGE B
1 Project Director: Dr. Daniel Avaro
1 Chemical Engineer: Ing. Javier Arriete
1 Industrial Engineer: Ing. Oscar Balumelli

FEASIBILITY STUDY - MAIN CONTENTS

    1.   PROJECT BACKGROUND
            a. ALOE BUSINESS IN KENYA
            b. KENYA PUBLIC POLICIES RELATED TO THE ALOE INVESTMENT PROJECT
                     i. GENERAL ECONOMIC POLICY
                    ii. AGRICULTURAL AND RURAL POLICY
                   iii. INDUSTRIAL POLICY
                  iv. FINANCIAL POLICY
                    v. ENVIRNOMENTAL POLICY
                  vi. TAX POLICY
            c. PROJECT BACKGROUND
                     i. MAIN PARAMETERS (PRODUCT, PLANTATION, LOCATION, IMPLEMENTATION)
                    ii. OPORTUNITY STUDIES
                   iii. MAIN COMPETITIVE ADVANTAGES
    2.   ALOE MARKETS
            a. THE KENYAN MARKET
                     i. SITUATION OF THE KENYAN MARKET
                    ii. SWOT MATRIX OF THE ALOE BUSINESS
                   iii. VOLUME AND VALUE OF THE ALOE BUSINESS IN KENYA
                  iv. COMPETITIVE FORCES INTO THE MARKET
                            1. LOCAL AND FOREIGN COMPETITORS
                            2. SUPPLIERS
                            3. CLIENTS AND DISTRIBUTION CHANNELS
                            4. SUBSTITUTES


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                           5. NEW PLAYERS TO THE ALOE BUSINESS
                   v. BARRIERS OF ENTRY TO THE ALOE BUSINESS
                  vi. BARRIERS OF EXIT TO THE ALOE BUSINESS
                 vii. KEY SUCCESS FACTORS IN THE ALOE BUSINESS
                 viii. COMPETITIVE ACTIONS
           b. THE MAIN INTERNATIONAL MARKET
                    i. MAIN    ACTUAL    AND   POTENTIAL   ALOE   MARKETS.  MAIN  MARKET
                       CHARACTERISTICS FOR THE PRODUCTS DEFINED INTO THE PROJECT
                   ii. MARKET ATRACTIVENESS
                  iii. MAIN PRODUCTS SOLD AND CHARACTERISTICS
                  iv. DISTRIBUTION CHANNELS BY MARKET
                   v. PRODUCT LIFE CYCLE BY MARKET
                  vi. MAIN DEMANDING INDUSTRIES
           c. COMMERCIAL OBJETIVES
                    i. SHORT TERM, MEDIUM AND LONG TERM SALES PROSPECTS
                   ii. MARKETING MIX OF PROJECT MAIN PRODUCTS
                           1. PRODUCT STRATEGY
                           2. PRICE STRATEGY
                           3. DISTRIBUTION STRATEGY
                           4. COMMUNICATION, ADVERTISING AND PROMOTION STRATEGY
           d. SALES INCOME ESTIMATION
                    i. AT NATIONAL LEVEL
                   ii. AT INTERNATIONAL LEVEL
   3.   PRODUCTION PROGRAM IN THE ALOE INDUSTRIAL PROCESSING PLANT
                    i. DEFINITION OF PLANT CAPACITY
                           1. MAXIMUM CAPACITY
                           2. MINIMUM ECONOMIC SIZE
                           3. AVERAGE IDLENESS LEVEL FOR THE INDUSTRY
                   ii. DEFINITION OF THE PRODUCTION PROGRAM
                  iii. ESTIMATION OF PRODUCTION VOLUME PER YEAR
                  iv. PODUCTION TIMES (START UP, TRIAL TIME AND NORMAL PROCESS)
                   v. DEFINITION OF RAW MATERIAL REQUIREMENTS
                           1. RAW MATERIAL SOURCING
                                  a. FROM OWN PLANTATIONS
                                  b. FROM OTHER LOCAL PRODUCERS
                           2. QUALITY AND QUANTITIES
                           3. AVAILABILITY SCHEDULES
                           4. UNITARY COSTS
                  vi. OTHER RAW MATERIAL /INGREDIENT / PACKAGING MATERIALS REQUIREMENTS
                           1. SOURCING
                           2. QUALITY AND QUANTITIES
                           3. AVAILABILITY SCHEDULES
                           4. UNITARY COSTS
                 vii. OTHER SUPPLIES AND TOOLS REQUIREMENTS
                           1. SOURCING
                           2. QUALITY AND QUANTITIES
                           3. AVAILABILITY SCHEDULES
                           4. UNITARY COSTS
                 viii. SERVICES AND OTHER TECHNICAL REQUIREMENTS
                           1. SOURCING
                           2. QUALITY AND QUANTITIES
                           3. AVAILABILITY SCHEDULES
                           4. UNITARY COSTS
   4.   PROJECT ENGINEERING
           a. TECHNOLOGY
                    i. BRIEF DESCRIPTION OF USUAL OFFERED TECHNOLOGIES AND PROCESSES IN
                       THE ALOE BUSINESS
                   ii. TECHNOLOGIES TO BE USED INTO THE PROJECT
                  iii. SOURCES OF TECHNOLOGIES AND EQUIPMENT
                  iv. ESTIMATION OF COSTS
           b. MACHINERY AND EQUIPMENT
                    i. FOR THE INDUSTRIAL PROCESS


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                     ii. AUXILIARY EQUIPMENT AND DEVICES
                    iii. ESTIMATION OF COSTS
             c. CIVIL ENGINEERING
                      i. PLANT LAYOUT
                     ii. ESTIMATION OF COSTS
    5.   HUMAN RESOURCES
             a. DIRECTION AND MANAGEMENT
                      i. TASKS AND RESPONSABILITIES
                     ii. AVAILABILITY
                    iii. ESTIMATION OF SALARIES AND BENEFITS
             b. ADMINISTRATIVE PERSONNEL
                      i. TASKS AND RESPONSABILITIES
                     ii. AVAILABILITY
                    iii. ESTIMATION OF SALARIES AND BENEFITS
             c. PLANT AND LABS / QUALITY CONTROL PERSONNEL
                      i. TASKS AND RESPONSABILITIES
                     ii. AVAILABILITY
                    iii. ESTIMATION OF SALARIES AND BENEFITS
    6.   FINANCIAL PLAN
             a. INVESTMENT PLAN
             b. WORK CAPITAL REQUIREMENTS
             c. OPERATIONAL COSTS
             d. INVESTMENT TIME SCHEDULE
             e. SOURCES AND USES OF CASH INTO THE PROJECT
             f. PROJECT FINANCING
                      i. OWN RESOURCES
                     ii. LOANS
                    iii. OTHERS
             g. PROJECTED CASH FLOW (INFLOW AND OUTFLOWS)
             h. NET INCOME STATEMENTS
             i. PROJECT PROFITABILITY
    7.   PROJECT FINAL CONCLUSIONS AND RECOMENDATIONS


STAGE B. TECHNICAL ASSISTANCE SERVICES AND KNOW HOW TRANSFER
It includes the technical assistance services and the transfer of know how from ALOETRADE to
LAIKIPIA, related to the aloe industrial process, from the reception of leaves until the obtention and
stabilization of either aloe juice or aloe gel as raw material, or aloe juice bottled ready to be marketed at
wholesale, with the necessary adaptations of processes and products.

This technology transfer process includes information related to the layout of the plant, engineering
related aspects, definition of equipments and their installation, know how to manufacture the products –
from the reception of aloe leaves to the final product to be manufactured, including product development
phases. The technical information to be provided in this stage is offered both in written format
(documents) and in location with our consultants. The information is for the industrial process above
described, and do not cover other aspects such as marketing research, distribution channels, fiscal and
financial aspects, human resources, organizational aspects, and legal issues.

DESCRIPTION OF THE WORK ACTIVITIES TO BE PERFORMED BY ALOETRADE AMERICA LLC –
ALOETRADE

I. Methodology
For the implementation of this proposal, it is necessary to perform the first stage as explained above,
having an investment project or a complete business plan with the main characteristics for an aloe
industrial processing plant. In this stage, the services to be provided by ALOETRADE to the LAIKIPIA
include technical assistance and transfer of information and know how in the following fields:
• Description of processing technology to be used in the aloe processing plant
• Definition and selection of machinery and equipment, tools and devices to be used in the aloe
     processing plant

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•   Design of the plant layout
•   Guidance (jointly to the suplier) to install the equipment and devices for the aloe processing plant and
    final adjustments
•   Know how transfer and technical assistance related to the aloe industrial processing, including
    stabilization, to obtain bulk raw aloe juices and aloe gel
•   Assistance in Product development. Aloetrade will help to develop the formulas and production
    process to obtain following products:
             a. Aloe raw juice
             b. Aloe juice bottled for human consumption
             c. Aloe dry extract for raw material to nutritional industry
             d. Aloe spray dried powder
             e. Aloe bitter sap
             f. Aloe concentrated sap
             g. Aloe powder with aloin content
             h. Aloe oil
             i. Aloe cosmetics
                        i. Aloe gel
                       ii. Aloe shampoo
                      iii. Aloe conditioner
                      iv. Aloe body cream
                       v. Aloe facial cream

This technical information is offered throughout personal assistance on the Kenyan location where the
plant shall be erected and in written documents. The final methodology steps and schedule for this
technology transfer is to be defined yet.

II Execution Time
The job can be completed between 90 to 120 days approximately. The execution time may have
variations depending on the final contents to be included into the projects. The final execution time shall
be defined in the final proposal.

PROPOSAL COSTS
Fixed Fees
For the complete assistance the fixed fees are of U$S 28,000.00

Variable Fees
For Product development, final fees will be of U$S 2,200.00 per each product to be developed.

Royalties
During a 8-year period since the first product sales, Aloetrade will receive a 5% of royalties on the FOB
export value for international sales, for those products that have been developed under this Project,
except in those cases where Aloetrade have been participating as buyer or importer. In such cases, the
5% of royalties, should not be paid to Aloetrade, but discounted from the FOB export price.

Traveling and Expenses

Estimated at USD 9,700.00


STAGE C – COMMERCIAL ASSISTANCE SERVICES.
The objective is to offer commercial services. Such activities implies marketing and sales efforts to sell
and/or distribute the products to be manufactured by the Kenyan aloe industrial processing unit owned by
the LAIKIPIA.



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DESCRIPTION OF THE WORK ACTIVITIES TO BE PERFORMED BY ALOETRADE AMERICA LLC –
ALOETRADE
The services may be performed through the use of the business network established by Aloetrade
America LLC, Aloetrade and its affiliates, either through the owned companies, subsidiaries and
companies where Aloetrade has commercial joint venture agreements, as described below in our
background, or through the various e-commerce sites fully owned by Aloetrade America.

COSTS OF THE SERVICE
The marketing and/or sales costs are to be discussed in different ways depending if sales involves raw
materials or finished products, and if sales are to be conducted in an off line concept or under on line
methods (through e-commerce sites), be directly through Aloetrade or their affiliate companies.

Later, the values of commissions or price differentials will have to be negotiated between ALOETRADE
and the LAIKIPIA.

********************************************

Aloetrade America LLC Background:
Aloetrade America LLC it is a company formed under the laws of the state of Florida, the United States.
Its main activities include the marketing and sales of aloe products and by-products and other succulent
plants, the sale of products and services related to the aloe business, the franchising of aloe products and
services for spa markets and the offer of technical assistance and technology transfer for the cultivation
and industrial processing of aloe plants and products.

The business network of ALOETRADE AMERICA is the following:

USA
HOODIA CALIFORNIA
HOODIACALIFORNIA.COM is a fully owned e-commerce site aimed to sell Hoodia gordonii products,
aloe vera products, chia products, noni juices and blueberry dietary supplements

HOODIA LATINA
HOODIALATINA.COM is a fully owned e-commerce site aimed to sell Hoodia gordonii products, aloe
vera products, chia products, noni juices and blueberry dietary supplements

INNOMARK INC is an american company which produces and manufactures noni juices and products.
Aloetrade sell and distribute noni products manufactured by Innomark.

HOODIA FOR WEIGHT LOSS is a company who offer distribution services for Hoodia and aloe products.
Aloetrade sell Hoodia gordonii and aloe products under agreement with this company, in the US, Brazil,
Mexico, Chile and Argentina markets.

MEXICO
ALOEMEX SPRL de CV, is a Mexican company engaged in the aloe vera cultivation and industrial
business. ALOETRADE AMERICA and its partners has a share participation of 30% in its capital.

TIO LABS SPRL de CV, is a Mexican company envolved in the aloin production. ALOETRADE AMERICA
has a commercial joint venture relationship with such company, supplying aloe sap from Venezuelan
origin and selling aloin products.

VENEZUELA
UCOPRINSA, is a Venezuelan cooperative who grows aloe vera and process at its own industrial plant.
ALOETRADE has a distributorship agreement to distribute its products.



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VENEZUELAN TRADING, is a Venezuelan trading company engaged in the export of aloe products and
raw materials. ALOETRADE AMERICA has a commercial joint venture agreement with this company to
sell aloe products at international markets.

NAPOLEON PINEDA, is a large Venezuelan aloe producer. ALOETRADE AMERICA has a distributorship
agreement to sell its products at international markets.

ECUADOR
COLONCHELINE CORP, is an ecuadorean company involved in the aloe growing and industrialization of
aloe products. ALOETRADE has an commercial joint venture to sell and distribute its aloe raw materials
at worldwide markets.

ARGENTINA
CAPYC, is an Argentinean cooperative who grows and manufacture aloe products, while ALOETRADE
has an industrial and commercial joint venture to sell and distribute its products worldwide.

ITALPHARMA SRL, is an italian company based in Argentina who grows and manufacture aloe products,
while ALOETRADE has an industrial and commercial joint venture to sell and distribute its products
worldwide.

SPAIN
ALOETRADE ESPAÑA, is a Spanish company in formation, to be established to sell and distribute
ALOETRADE line of products and control the franchising business for aloe spa products.

DIETA HOODIA
DIETAHOODIA.COM is a fully owned e-commerce site aimed to sell Hoodia gordonii products, certified
organic aloe vera products, chia products, noni juices and blueberry dietary supplements

GEMALOE SL, is a Spanish company, with an exclusive distributorship agreement for the ALOETRADE
products, mainly aloe cosmetic and aloe juices.

SWEDEN
BERTIL LINDELL, is a Sweden private company which imports and distribute in Sweden and Nordic
countries various ALOETRADE aloe products.

SWITZERLAND
Coloncheline Corp, is a swiss company which manufactures aloe cosmetic products and ALOETRADE
distributes them into various European markets through direct sales and via the DIETAHOODIA.COM e-
commerce site.

Main site for Aloetrade America is www.aloetradeamerica.com in English language.

Aloetrade Background
Aloetrade is an Argentine company, dedicated to the aloe and succulents, whereas the main activities
includes cultivation, industrialization and marketing of aloe raw materials and finished products.

Aloetrade offer various technical assistance services for aloe commercial cultivation and for aloe
processing industries. Services are provided to customers located in Argentina, Brazil, Chile, Colombia,
Dominican Republic, Ecuador, Mexico, Panama, Peru, Venezuela and Spain. Main office is in Buenos
Aires, Argentina.

Main site for Aloetrade is www.aloetrade.com.ar in Spanish, English and Portuguese language.

E- Commerce sites owned by Aloetrade America



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Hoodia Latina
Sales of hoodia gordonii, aloe vera, noni juices, blueberry pills and chia pills. Focused on the Hispanic
population in USA and Brazil, Mexico, Chile and Argentina. www.hoodialatina.com

Hoodia California
Sales of hoodia gordonii, aloe vera, noni juices, blueberry pills and chia pills. Focused on the US market.
www.hoodiacalifornia.com

Dieta Hoodia
Sales of hoodia gordonii, organic aloe vera products, noni juices and chia pills. Focused on the European
markets. www.dietahoodia.com


Other Aloetrade Information Sites
http://aloe-sabila.blogspot.com

News and content referred to aloe production business in latin America, Spain and Portugal.




http://aloe-sabila-clima.blogspot.com
Information on the weather conditions for the main aloe production areas in latin America, Spain and
Portugal.

http://aloe-propiedades.blogpot.com
Information on the aloe properties and uses.

http://infohoodia.blogspot.com
Information and news on hoodia gordonii.


Legal and Tax References

Aloetrade
Aloetrade / Daniel Avaro y Asociados is a company authorized Ander argentine law. Fiscal registration
Ander Argentina Tax Administration (AFIP) is under Number 20-13920293-8

Aloetrade America LLC
Aloetrade America LLC is a company registered as Limited Liability Company Ander the law of the Florida
state, USA Ander Nbr L05000112032 and the Employment Identification Number 20-3817270 at the
Internal Revenue Service of the United States.

ALOETRADE AMERICA LLC
16005 NW 52 Ave.
Miami, Fl 33014 USA
www.aloetradeamerica.com
aloetrade@gmail.com
Tel 1-305-206-1635


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Annex 7. Baringo Aloe Development Programme
To promote sustainable harvesting, KEFRI and partners are implementing an aloe bioenterprise in
Baringo, which was launched by Director KEFRI- on 18/11/2004, funded by European Union, Biodiversity
Conservation Programme. The residents of Baringo District’s arid and semi arid lands (ASALS) typically
depend on traditional livestock practice, now becoming increasingly unviable due to land pressure and
loss of resources. It is for this reason KEFRI has taken an active role in promoting aloe cultivation for
improved livelihood wealth generation and enhance biodiversity conservation.

Strength Aloe bio-enterprise development
Baringo District although endowed with vast range of biodiversity is one of the poorest districts in Kenya
with over 38% of the population living under the poverty line. Livestock production is the only source of
livelihood for the community. The community is vulnerable to climate change and variability, a problem
that is being compounded by the community’s eroding resilience and coping mechanism. Aloe occurs
naturally in the district and thrives on some of the most difficult site – rocks and highly degraded areas.
The community recognizes Aloe as an important plant species with medicinal properties and a pillar for
honey production. The community has also used Aloe for soil erosion control. KEFRI has conducted
successful research work in the area aimed at enhancing the conservation and management of Aloe
species. The following are on the justification for the intended project;

        Informal Aloe production and marketing is being conducted in Baringo with the majority of the
        people in Baringo especially in the low lands relying on Aloe sap harvesting for their livelihood
        during severe droughts.
        Development of Aloe products will provide alternative sources of income.
        There are no formal marketing structures and therefore dealers are currently exploiting the Aloe
        harvesters. Aloe sap gatherers are paid between Ksh 50 to 60 for 5 litres. Collection of good
        amount of sap may involve many Aloes and sometimes several days.
        Quality control is compromised as there are no quality assurance procedures from cultivation,
        harvesting and processing,
        Little or no domestication has been taking place in heavily exploited areas,
        The higher quality (higher aloin content than secundeflora) Aloe turkanensis mostly preferred by
        dealers is largely found in Baringo,
        There are no resource maps, defining extend of distribution and quantities of available
        commercial Aloes in Baringo,
        Areas around Koriema have conserved their Aloe secundflora and with proper training on
        sustainable harvesting, they will earn more and conserve the Aloe species,
        Already Propagation protocols have been established by KEFRI even harvesting mechanisms
        and quality control procedures to differentiate between Aloe secundflora and Aloe turkanensis are
        in place
        The dry leaves of Aloes are also livestock fodder,
        Production of diversified Aloe products to be sold locally and internationally will boost Aloe value
        and enhance domestication – conservation,
        Introduction of Aloe vera farming in suitable sites to be enhanced through irrigation and will have
        an added impact to proposed Aloe project. Aloe gels form Aloe vera is a multi billion industry
        worldwide, currently estimated at US$ 20 billion,
        The involvement of a private investor (Land Mawe), Research Institute (KEFRI) and the
        producers (Communities), provide a good model for sustainable utilization of biodiversity as
        encouraged at many scientific gatherings. Its viewed that biodiversity should be seen from a
        business point of view and be approached through partnership for its management,

In light of the CITES, it is recommended that Parties and NGOs support the development of community
propagation and cultivation schemes for the Aloe species to take the pressure off wild populations and
support rural livelihoods; and further that cultivation and propagation guidelines for Aloe species with
medicinal values are developed as proposed by KWS and certification schemes for sustainably wild



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harvest of cultivated plants are developed, supported and promoted as an incentive for CITES
compliance

Baringo Aloe bioenterprise
Baringo Aloe bioenterprise (BABE) development is among the Aloe initiatives taking place in the country.
BABE is utilizing the lesser-developed high value Kenyan Aloe resources in Baringo, for improved
utilization and equitable benefit distribution to all stakeholders. The main focus is the development and
marketing of commercial and certified aloe products in Baringo and neighbouring districts. BABE is a
partnership between government (KEFRI and KWS), private (Landmawe Ltd) and local communities
(KOKISA CBO), that was funded by European Union, through biodiversity conservation programme (EU-
BCP).      The programme was developed based convention of biological diversity (CBD), which
emphasizes, biodiversity utilization, to be conserved through sustainable utilization and equitable
distribution of derived benefits to all beneficiaries stakeholders. The programme also takes into account
synergies from other conventions, namely CITES, UNCCD and MDGs.

    The Koriema Aloe Processing project is funded by the European Commission (EC) through the
    Biodiversity Conservation Programme (BCP) for about $13 million in Kenya shillings (KShs,
    approximately $187,807 USD) The fund was aimed at alleviating poverty and promoting gender
    equality, which is in line with the Millennium Development Goals set by the United Nations. Apart from
    fighting poverty, the project would also promote bio-diversity conservation in the area.
     The development and realization of this project, which is to support conservation, sustainable
    utilization, and equitable benefit sharing, is through a public-private partnership between the BCP,
    Kenya’s government (Kenya Forestry Research Institute, Kenya Wildlife Services), the local
    community (KOKISA Community Baringo), and a private investor (Land Mawe Ltd.).


Stakeholders

Stakeholder       Role
Community            Conserve wild Aloe species through biodiversity conservation and sustainable
KOKISA               utilization of local biodiversity for income generation and for checking soil
Community            degradation, provide fodder, bee forage and soil stabilization.
Baringo              Communities will actively seek to promote the protection of Aloe species.
                     They will domesticate endangered species.
                     Comply with all District environment Team criteria (DET consists of Ministry of
                     Agriculture, KWS, NEMA, District Officer).
Kenya Forestry       Provide the technical expertise
Research             Training of communities develop curricula, provide facilities and personnel
Institute            Extension services: field trips, on ground assessment, continuous improvement.
                     Research propagation techniques, applications, best practice.
                     Research on value addition and product development.
                     Conduct the Resource Mapping to ascertain the status of Aloe and provide
                     backstopping.
                     Identify the most threatened species
                     Facilitate domestication of threatened species.
                     Monitor the sustainability
                     Certify the source of Aloe.
Land Mawe            Commercialization and develop the market
Company              Provide the project with commercial expertise
Limited              Set up collection centres in convenient locations
                     Pay spot cash for the products in conjunction with KEFRI
                     Set up processing plant
                     Develop export potential
                     Initiative value addition to products
                     Assist in extension services, quality assurance


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                        Actively replicate project in other regions
                        Ensure sustainability of the project by ensuring commercial viability
                        Equitable remuneration for all stakeholders in the supply chain
                        Adhere to tenets of fair trade
                        Ensure that the products are marketed as certified from a sustainable source
                        Attempt to obtain a fair value for the products through value addition
                        Passing on the benefits of higher prices through to the communities
                        Develop other infrastructure as part of its Corporate Social Responsibility
                        Professionally account for and audit the budgets
CDTF-BCP                Provide seed money to kick start commercialization
(EU funded              Safeguard that Resource Map and the intellectual property remains in the public
partner                 domain for posterity
organization            Initiate a viable, sustainable, necessary income generation and biodiversity
                        conservation project
                        Attain high impact results for relatively funding
                        Impact a large population of affected communities
                        Commence a self sustaining project with a significant long term impact

Main Focus of the initiative/s Specific Objectives/activities
(a)    To enhance community capacity in resource production, management and marketing.
(i)    Putting in place community structures for sustainable resource utilization.
(ii)   To train community extension staff, on aloe seed harvesting/storage, sap harvesting and post
       harvest handling.
(iii)  Undertake community education and awareness creation.
(iv)   Promote on-farm cultivation/domestication of selected commercial aloes through communities in
       Baringo. (Nursery establishment, strengthening existing ones and on-farm cultivation).
(v)    Put in place technologies for rangeland rehabilitation using aloes

(b)     To develop high value marketable products from commercial aloes of Baringo.
(i)     Under commercial aloe resource quantification of both domesticated and those in the wild in
        Baringo and Koibatek districts.
(ii)    Establish an aloe sap processing plant, at Koriema in Baringo for production of aloe crystals.
(iii)   To undertake an environmental impact assessment of the bioenterprise.
(c)     To develop certification mechanism for enhanced sustainable exploitation of aloes in Baringo
        district.
(i)     Support KWS, put in place, regulatory mechanism for production and trade in Kenya.
(ii)    Put in place certification mechanisms, that’s establish aloe, management units in
        Baringo/Koibatek, for sustainable aloe utilization.

(d)     To enhance community entrepreneurship skills towards aloe commercialization.
(i)     Establish market links for Baringo aloe products.
(ii)    Develop a website, logo, marketing strategies for Baringo aloe products.
(iii)   Purchase aloe sap from communities.

(e)     Institutional support mechanisms.
(i)     Purchase equipment needed for the project e.g. vehicle for KEFRI, Tractor for community.
(ii)    Hire project staff to undertake these activities.
(iii)   Put in place project implementation committee.


Product development and marketing
Commercial Aloe resource quantification been undertaken to determine off take from wild sources and
also as a monitoring tool for sustainable Aloe harvesting. Previous experimental result has shown that a
minimum of about 30 tons of sap can be produced per year. Usually, a single Aloes produces
approximately 45 ml. Currently, a study by KEFRI indicates that the district exports about 50 tons, great


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part of it coming from Eastern part of Baringo district, which was not sampled due to insecurity. This
shows that areas around the project site can export minimum of about 21 tons of Aloe annually.

Areas of critical mass as indicated in table below

Area (site)                           Species                          Quantity Altitude
                                                                                (metres)
Lake Baringo                          A. turkanensis                   20600 983
-                                     A. turkanensis                   30328 996
-                                     A. turkanensis                   17464 997
-                                     A. turkanensis                   4830     994
Kabloetigon                           A. turkanensis                   13500 1040
Bartum                                A. secundflora                   35700 1378
Koromoi Hill                          A. secundflora, A. tugenensis    94284 1363
-                                     A. secundflora                   87750 1344
-                                     A. secundflora, A. tugenensis    87750 -
Kimalel Centre                        A. Secundflora                   55000 1357
Kimalel - Kinyach V.                  A. tugenensis, A. turkanensis    10000 1321
Ng'enyboware, Kapcheburet area        A. tugenensis, A. turkanensis    10000 1337
Kapchumo (lagger is bnd for sabor/k   A. secundflora, A. tugenensis    6160     1320
Koiboleng'na hill                     A. secundflora                   7467     1350
Oge hill, Sabor                       A. secundflora, A. tugenensis    106624 1405
Oge hill, Sabor                       A. secundflora, A. tugenensis    143808 -
Oge hill, Sabor                       A. secundflora, A. tugenensis    49392 1397
Oge hill, Sabor                                                        259896 1374
Chepkoyo V                            A. turkanensis                   9000     1035
Orokwo hill                           A. turkanensis, A. secundflora   2621     1301
Barsmoi                               A. secundflora, A. tugenensis    27040 1312
Near Bartum mkt                       A. secundflora, A. tugenensis    33867 1343
Kipsego V                             A. secundflora                   4000     1382
Rorobai area                          A. secundflora, A. turkanensis   8000     1329
Cheporoswo V                          A. secundflora                   11499 1280
Koitilyon                             A. secundflora, A. turkanensis   35447 1279
Kimondis                              A. secundflora, A. tugenensis    4460     1278
Kapsagat loc                          A. secundflora                   100000 1391
Barkilenya                            A. turkanensis                   6000     1032
                                      A. secundflora                   40000 1177
                                      A. secundflora                   7000     1160
                                      A. secundflora                   38000 1475
                                      Total                            1367487


    Value addition for crude Aloe gum, like soaps, shampoos been developed. Markets been sourced
    oversees.

Capacity building
       o Various community trainings been undertaken
       o Three groups have received training on product development but need some further training
           in entrepreneurship skill.

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       o   The local community based group KOKISA self help, was upgraded to CBO, they formed a
           co-operative as income arm. Now they are in the process of registering as a trust.
       o   SNV - Support on community capacity
       o   Exchange programme for selection members of KOKIA to Coastal Aloe farmers.
       o   SNV – Support KEFRI and Land Mawe visits to South Africa.
       o   SNV - Supports MOU development at Cheptebo in Baringo.
       o   IGAD – Exchange programme
       o   Between communities in Kajiado and drylands group to learn on drylands livelihoods and
           biodiversity initiatives. Kajiado CBOs learned on Aloe conservation and KOKISA learned on
           Bee keeping work in Kajiado.
       o   ITDG – Supported exchange programme of Turkana CBO, with KOKISA on Aloe activities.
       o   Uganda Mission- President Museveni sent a mission team to come and explore possible
           uses of Aloe and gum arabic in respect to utilization to Karamoja groups of Uganda. The
           mission team visited KOKISA Aloe farmers and Baringo Aloe factory.
       o   Laikipia Aloe group. LWF facilitated Aloe farmers to visit Baringo Aloe bioenterprise on a
           fact-finding mission to learn more on Aloe utilization, marketing and conservation.
       o   The enterprise has listed many visitors.
       o   Baringo Aloe bioenterprise got a support from British Council, for 250 beehives. Aloe is a
           good beeforage material.


Enhanced Aloe resource production
      o Aloe nurseries been established.
      o There is aggressive domestication/plantations of commercial indigenous Aloe to take off
          pressure from wild sources.
      o    Promote on-farm cultivation/domestication of selected commercial aloes through
          communities in Baringo.
       (Nursery establishment, strengthening existing ones and on-farm cultivation).

       o   Seven nurseries were established among them, the three community nurseries at Koriema,
           Sabor, and Kimalel measuring 30 m x 30 m fence, with capacity of 30,00 seedlings, each
           have been established.
       o Sixty thousand seedlings have been potted in three nurseries Koriema, Sabor and Kimalel.
       o Most of the seedlings that have been potted are A. secundflora.
       o But emphasis is being put on A. turkanensis especially in areas around Lake Baringo to East
           Baringo, for it has good quality which may be preferable to international standards.
       o Farmers and communities have been trained on seeds harvesting preparation and storage.
       o KOKISA CBO have sold seedlings worthy Ksh 210,000. Drought, diseases and pests have
           been threatening seedling survival. Locusts, insect suckers, beetles and some fungal been
           noted major threats.
       o Currently various farmers have established various Aloe plantations, in most parts of Baringo
           and neighbouring districts. Planting of Aloe is being done through an integrated approach.
       o The approach includes integration with beehives. Since they are good bee forage material,
           rehabilitation of degraded rangelands, replacement of Prosopis cleared areas.
       o The main emphasis is on commercial indigenous Aloes, Aloe secundflora and Aloe
           secundflora found in Baringo. Also Aloe vera varieties are being introduced in the district.
       Put in place technologies for rangeland rehabilitation using aloes

Database and knowledge intensive technologies:
There is adequate database (resource map) indicating the extent of Aloe growing in the wild, and
potential production levels. Sustainable Aloe production and marketing is knowledge intensive and
requires use of appropriate technologies. This has also resulted to discussion on issues of ABS.
Environmental impact assessement and Audit has been done and submitted to Nema which has already
certified the project




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Undertake community education and awareness creation.
   o This was done through Proposal development, serminars and other meetings .
   o The meeting involved the project partners, area leaders, invited interested relevant stakeholders.

Challenges

     1. Lack of sufficient raw materials (aloe leaves) for take over and sustaining the production to meet
        the available market demand.
     2. Community attitudes in viewing the project as a business entity and another form of livelihood
        other than Pastoralist alone. Some even demand to be paid to cultivate aloe on their farms and
        are not patient enough to wait for 3 yrs to earn from aloe

     3. Ownership problem causing suspicion among interested parties has stalled the project.

            a. Local leaders and a private investor, brought on board by the Government to help solicit
                market for its products, are haggling over the control of the firm.
            b. The residents claim they are the rightful owners of the project, but government officials
                maintain that a third party has to be included to help play the role of marketing the
                business and the products
            c. The group refused to a sign a memorandum of understanding with the investor because
                they claim that he prepared it alone to suit his interests.
    4. Lack of clear marketing and business management strategy which can help enable the
    enterprises compete effectively
    5. Lack of enough capacity in term of entrepreneurship skills and product development

     6. The product taken to the market can not compete on the market effectively with imported product
     from South Africa and therefore the market doesn’t trust. This is due to
        o Lack of capacity to supply and quantity and quality sap
        o Poor quality and pricing strategy
        o Lack of or slow chemical verification and certification of the products by KEBS
        o Lack of standard for analytical chemical verification

     7. Land tenure: Most of the and in the district is held under a collective common property rights. With
     the erosion of traditional natural resources management systems, this property regime has lead to
     accelerated erosion. Declining sources and levels of income exacerbates this trend.


Lessons learned and recommendation
Ownership
    • Development of sound partnership framework agreeable by all players is important towards
       realizing sound natural resource utilization.
    • The ownership structure and foundation should be clear for long term governance of the
       enterprises this will increase the effectiveness of the partnership and reduces conflicts;
    • Access and benefit sharing mechanisms should be developed which will elaborate how the
       surplus benefits will be distributed. All legal issues should be exploited each legal entities of the
       contractee and there negotiation capacity;
    • There should be clear exit strategies so that some partners should not over stay in the
       management of the NBEs for long without justified reasons;
    • Natural products markets fluctuate. It is important to invest in research and product development,
       in order to diversify and establish new market niche.
Structuring

    •   Community systems are sometime amorphous and dynamic. It is good to establish proper
        community system, as a platform of partnership. Systems recognized under law are appropriate,
        either as co-operative or trusteeship. Trusteeship encouraged for community based groups.


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   •   In such partnership, it is good to defined ownership strategies early. These avoid resource
       conflict, which arise, specifically during benefit sharing.

Gearing
   • There is need to develop cottage industries where manufacturing of products at community level
       for local community market and large scale industry for national and international market;
   • Capacity building on communication strategy to easy disseminations

Marketing
   • Need to upscale the resources to have an impact on income and ultimate behavior of the
       communities;
   • Develop direct linkages between producers and the market;
   • There is need to use technologies that will increase or scale up production to increase
       distribution;
   • Additional business analysis and technical advice( applying of a value chain prospective,
       developing business plans, offering business management advice and quality management
       issues) are needed;
   • Cost and benefit analysis should be undertaken




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Annex 8. Commercial Aloe Species and varieties

Aloe abyssinica synonym of Aloe camperi
Aloe affinis
Aloe albopicta synonym of Aloe camperi
Aloe ausana (Partridge Breast Aloe, Tiger Aloe) synonym of Aloe variegata
Aloe barbadensis (Medicinal Aloe) synonym of Aloe vera
Aloe barbadensis var. chinensis (Medicinal Aloe) synonym of Aloe vera
Aloe camperi
Aloe camperii synonym of Aloe camperi
Aloe candelabrum (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe chinensis (Medicinal Aloe) synonym of Aloe vera
Aloe cryptopoda
Aloe disticha Miller (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe elongata (Medicinal Aloe) synonym of Aloe vera
Aloe eru synonym of Aloe camperi
Aloe eru fa. erecta synonym of Aloe camperi
Aloe eru fa. glauca synonym of Aloe camperi
Aloe eru fa. maculata synonym of Aloe camperi
Aloe eru fa. parvipunctata synonym of Aloe camperi
Aloe eru var. cornuta synonym of Aloe camperi
Aloe fasciata synonym of Haworthia fasciata
Aloe fasciata var. major synonym of Haworthia fasciata
Aloe fasciata var. minor synonym of Haworthia fasciata
Aloe ferox (Tap Aloe, Bitter Aloe, Cape Aloe)
Aloe ferox var. erythrocarpa (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe ferox var. galpinii (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe ferox var. hanburyi (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe ferox var. incurva (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe ferox var. subferox (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe flava (Medicinal Aloe) synonym of Aloe vera
Aloe galpinii (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe horrida (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe indica (Medicinal Aloe) synonym of Aloe vera
Aloe lanzae (Medicinal Aloe) synonym of Aloe vera
Aloe latifolia (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe leptophylla (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe leptophylla var. stenophylla (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe maculata (Soap Aloe, Zebra Aloe)
Aloe maculata Medikus (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe maculosa (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe muricata (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe nobilis (Gold Tooth Aloe)
Aloe perfoliata (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe perfoliata var. barbadensis (Medicinal Aloe) synonym of Aloe vera
Aloe perfoliata var. epsilon (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe perfoliata var. ferox (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe perfoliata var. gamma (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe perfoliata var. lambda (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe perfoliata var. saponaria (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe perfoliata var. theta (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe perfoliata var. vera (Medicinal Aloe) synonym of Aloe vera
Aloe perfoliata var. zeta (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe pienaarii synonym of Aloe cryptopoda
Aloe pseudoferox (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox


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Aloe punctata (Partridge Breast Aloe, Tiger Aloe) synonym of Aloe variegata
Aloe saponaria (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe saponaria var. brachyphylla (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe saponaria var. ficksburgensis (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe saponaria var. latifolia (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe saponaria var. saponaria (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe socotorina (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe spicata synonym of Aloe camperi
Aloe subferox (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe supralaevis (Tap Aloe, Bitter Aloe, Cape Aloe) synonym of Aloe ferox
Aloe umbellata (Soap Aloe, Zebra Aloe) synonym of Aloe maculata
Aloe variegata (Partridge Breast Aloe, Tiger Aloe)
Aloe variegata var. haworthii (Partridge Breast Aloe, Tiger Aloe) synonym of Aloe variegata
Aloe vera (Medicinal Aloe)
Aloe vera var. chinensis (Medicinal Aloe) synonym of Aloe vera
Aloe vera var. lanzae (Medicinal Aloe) synonym of Aloe vera
Aloe vera var. littoralis (Medicinal Aloe) synonym of Aloe vera
Aloe vera var. wratislaviensis (Medicinal Aloe) synonym of Aloe vera
Aloe vulgaris (Medicinal Aloe) synonym of Aloe vera
Aloe wickensii synonym of Aloe cryptopoda
Aloe wickensii var. lutea synonym of Aloe cryptopoda
Aloe wickensii var. wickensii synonym of Aloe cryptopoda




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Annex 9. Appraisal of Aloe Domestication in Laikipia,
Case Studies Conducted by Kenya Aloe Working Group Secretariat.
Rumuruti Women Aloe Group
This group was established in 2004, and was duly registered in 2005 by the Ministry of Culture and Social
Services. The group has 25 members all of whom are women, but they have two patrons who they work
closely with. These patrons are Mr. Aden Mohammed and Maria Dodds. The two Mr. Aden, and Maria
Dodds together with Laikipia Wildlife Forum, Ministry of Agriculture, Kenya Forestry Department and other
line ministries help in promoting Aloe farming and production of aloe products in the area. The group has
planted aloe in ½ acre plot donated to them by the Muslim Community of Rumuruti. The aloe is ready for
harvesting. Other than the ½ acre plot the group has got another 2 acre plot donated to them by the
Municipal Council of Rumuruti, The plot has as yet to be planted.

All of the group’s seedlings are from Laikipia Aloe Nursery, but they also occasionally plant from wild
seedling which happen to do better in survival than the seedling from the nursery. This could be explained
by the fact that the wild aloe seedlings have adapted to the climate of the region and are hardier. Another
fact is that the group may lack skills to take care of the seedlings from the nursery in order for the
seedlings to adapt well. The group has planted Aloe Secundiflora and Aloe Lateritia, but would want to
plant more varieties in the future. The plantation is rain fed with the Aloes taking one year to mature when
there is rain and one and a half years when there is no rain.

Even though the group harvests a little sap for the products they manufacture, harvesting of the whole
plot is expected to be done only once per year during the dry season which is when they expect to get the
largest quantities of sap. The harvesting is to be done by cutting the leaves at the base using knives and
collecting the sap in basins. The sap is then sieved and put in plastic bottles of all sorts for sale or
storage. The group expects to collect between 60 and 100 litres per every harvest season, however they
have not done any sale of the aloe sap.

This group makes aloe products such as soap (50grams), Creams (50grams) and Lotions (100grames),
but the group has plans for further value addition into better products such as medications, hair
shampoos, detergents, and hair conditioners amongst others. The group was trained by Francis Keah,
through the support of Laikipia Wildlife Forum (LWF) and Maria Dodds. They market their products locally
and some occasional deliveries to Maria Dodds and to Mr. Grant of El Kariama ranch in Nanyuki.

The group is aware of medicinal values of Aloe which include treatment of Malaria, treatment of skin
diseases, cuts, pimples, stomach upsets, nose bleeding, healing of eye diseases and its use as a
sunscreen. Traditional uses of Aloe known to the group include; an ingredient in the brewing of traditional
alcohol, treatment of domestic animals, poisoning of rats and other vermin rodents, live fencing and
control of soil erosion by encouraging growth of grass in the range lands.

In the case where aloe seedlings dry up, the group needs capacity building on growing of aloe. Aloe that
has dried up during dry seasons regenerates once there is rainfall. Also the group usually incur losses
since most of the time the coconut oil gets spoilt and so the group may need a client who can supply
quality coconut oil for production of the bathing soap. The marketing of the products is a great challenge
but the group should take it upon themselves to educate the larger community what they know about aloe
and its benefits. Likewise the group should be the first to use the products so that it can show the
community by example. The group also needs to raise funds to help them in taking their products for
approval by the Kenya Bureau of Standards,

Kieni Aloe Plantation Group (KAPG)
 KAPG group was established in 2003, has 300 members who are also the owners. There are other
individual members of the plantation from elsewhere such as Mr. Macharia (One Acre), Mrs. Gatende
(One Acre), and Mrs. Gaitho (Two acres) all of whom are from Nyeri, Grace Kariuki with three acres from
Embu and Mrs. Kikungu (One Acre) from Nyahururu. These other mentioned individuals are supplied with
seedlings by KAPG.


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The KAP Group plantation is 12 cares in size, but only 6 acres are planted with Aloe Vera and Aloe
Secundiflora. The plantation is not yet fully paid for by the group and the group needs funds to clear the
balance so as to fully own the plantation. This can be done by linking the group to micro finance
institutions, which the secretariat can do at an appropriate time. The group plans to clear the bushes on
the 6 remaining acres to plant more Aloe with 2 acres being dedicated to a nursery for propagation of
seedlings. Only the neighbouring members take part in the activities of the group on a voluntary basis.

The group plants only Aloe Vera which produces a clear gel and is used to make beauty products and
Aloe Secundiflora which produces sap Golden in colour, this is used in making of soaps, detergents and
Shampoos. They also grow several other varieties in its nurseries with an aim to supply other willing
members and farmers with seedlings. These are Aloe Laterita, Aloe Confusa, Aloe Turkanensis and Aloe
Scabrifolia. The process of producing the seedlings involves collecting the seeds from mother plants,
drying them in sun for about one week and then preparing the nursery bed. The seeds are then planted in
the nursery and watered occasionally. The seedlings are then potted in plastic bags after one Month in
the nursery and take around eight months to be ready for planting in the farms. The aloe in the farms is
expected to mature after one and a half to two years. The seedlings are sold to any farmer at Ksh: 15/- for
Aloe Vera and Ksh: 10/- for other seedling varieties.
Harvesting is undertaken by cutting the leaves starting with the ones at the bottom and draining the bitter
in basins. Leaves drain wholly after 30 Minutes, after which they put in new leaves in the basin
continuously after which it is sieved and put in jerry-cans. The sap is then transported to the boiler, where
it is boiled for about 6 hours until it forms a gum, which after cooling becomes crystal (Nicknamed Black
Diamond). This is the bitter which is sold to local herbalists to make herbal medicines. The prices are
negotiable depending on the buyer and the group’s immediate needs. They so far have not sold the Black
Diamond to any foreigner.

The group has an operational pilot boiling factory for the sap established in February 2006, but got
operational in 2007. The factory was funded by contributions from KAP members. The only other factory
in Kenya known by the group is the Baringo aloe factory. The group plans to expand operations and build
a processing factory bigger than Baringo Aloe factory. The group produces the following aloe products:

Aloe Herbal Tea- This is produced from the red flowers of Aloe Secundiflora which are harvested and
then dried under shade until completely dry. They are then ground locally, packaged in 50gram packages
and sold in local shops at Ksh:100/- per packet.

Toilet soap- This is produced from the Aloe Secundiflora sap. The soap is packaged in 50gms after being
made in batches of 200 and sold to the local market.

Other Products produced by the group include; Aloe shampoo, aloe juice to boost immune systems and
aloe herbal bath to eradicate tiredness and itchy skin infections. This is in liquid form and has to be used
with hot water for faster penetration in the skin.

Tigithi Pilot Aloe Group
This group which was registered in 2006 is owned by small scale peasant farmers. There are 80
                                                                                                     1
members in the group but only 40 members have planted 500 seedlings each in plots measuring /8 an
acre. Of the 80 members only 20 members are trained on types and uses of aloe and on making of aloe
products to increase their value. The group planted seedlings donated to them by LWF. However, over 50
% of the seedlings dried up. The farmers attributed this to lack of skills to tender to the young plants,
while others noted that the members in the old age bracket had their seedling drying up because they did
not plant them in the correct way. The seedlings were also planted during the dry season and this also
reduced their chances of survival. The variety planted is Aloe Secundiflora, is rain fed and takes one and
half to two years to mature.

Some of the farmers are aware of how aloe sap is harvested. This will be done by cutting the leaves at
the base using knives and collecting the sap in buckets. This will then be sieved and put in plastic bottles.
The harvesting of planted aloe has not yet started, but the group collects sap from the wild. According to

Susan Wren March 08. LWF, Kenya                                                                         135
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


the chairperson of the group, they have been given a permit by KWS to collect sap from the wild aloe as
they await theirs to mature. The sap collected is used to produce aloe products which include, soap
(50grams), Creams (50grams) and Lotions (50grames) for sale locally. The members also know how to
make aloe shampoos, hair conditioners and aloe detergents.

The group is aware of medicinal values of Aloe which include treatment of Malaria .Other known
medicinal values of Aloe by the group include treatment of skin diseases, cuts, loss of appetite and
healing of teeth and ear diseases. Traditional uses of Aloe known are as an ingredient in traditional
brewing of alcohol, put in honey for medicinal purposes and used in treatment of domestic animals. Aloe
species commonly known by the group include Aloe Secundiflora, Aloe Nyerienzis and Aloe Confucius.
Aloe Confucius is the poisonous type which is used in dyes.

The group faces challenges as those people that were trained on aloe issues are old and there is need to
incorporate younger people in the Aloe sector. Marketing their products is a problem as they only sell
locally and they have not registered their products with Kenya Bureau of Standards for approval. Also the
group usually incur losses since most of the time the coconut oil gets spoilt. The group needs a client who
can supply quality coconut oil for production of the bathing soap. A major constraint is lack of funding to
build or rent a small place to manufacture the products as well as have their products standardised. Other
challenges the group need to tackle are to increase community awareness on uses and advantages of
Aloe and its products. Aloe is promoted in the area by Laikipia Wildlife Forum and other individual
members of Tigithi Aloe group.


Withare Aloe Growers Self Help Group
This group was registered in 2005 and the individual Aloe plots established in 2006. It has 55 members
but 5 have not started actual planting in their plots. Members plant aloe in their respective plots. The area
under Aloe in these farms is plots measuring ¼ of an acre as the rest of the farm is dedicated to other
crops. However, some farmers intercrop the Aloe with other crops. This is retrogressive to the Aloe as soil
gets in to the Aloe during weeding causing the Aloe to dry. The total area under Aloe is estimated to be
12 acres. This group pays an annual subscription fee of Ksh: 5,000/- per year to LWF so as to be a
member. They are also trained on production of aloe products by LWF. The group has in the past been
given funds to go to Marigat to see the Baringo Aloe Factory.

All of the group’s seedlings are from Laikipia Aloe Nurseries. These seedlings are all Aloe Vera and are
planted at the age of 6 months old and the farmers buy at Ksh: 10/- per seedling. The members are also
informed by Maria on ways to plant and care for the seedlings. The group complained that the seedlings
were too small (1 inch) such that some have died after planting and they are often trampled on by
Elephants. The rain is also too much in this region for Aloe. The farmers acknowledged the support by
Laikipia Wildlife Forum in providing seedlings. The first crop was planted in November 2006 and they
expect the first harvest after a period of 3 years. The group needs more seedlings but they are confident
these will be supplied by Maria.

Although KWS and KEFRI prevent wild harvesting of Aloe, this group got a permit from KWS in August
2006 to harvest wild Aloe. The harvesting is done by cutting the leaves at the base using knives and
collecting the sap in basins, buckets and Sufurias. This is then put in bottles. There is no standard
measure of sap collected as it is from the wild.

This group makes products such as soap (50grams sold @40/-), Creams (50grams sold@50/-) and
Lotions (50grames sold@50/-) from Aloe. The packaging materials come from Nyeri town and the
chemicals come from Nairobi. These products are sold locally to communities as there is a lot of local
demand. The group has a marketing strategy of putting the products in local shops and collecting the
money later from the shop keepers after the products have been sold. Other marketing strategies include
local promotions and taking the products to forums and field days.

The group has further marketing strategies of selling the products to schools, Supermarkets, Hotels and
Shops in big towns at wholesale price. They expect to have different packaging for the different markets if

Susan Wren March 08. LWF, Kenya                                                                         136
            Development of New and/or Scale-up of Existing Aloe-based Business in Laikipia


these markets demand so. Other known end products of aloe by the group include detergents, hair
shampoo and hair conditioner.

The group is aware of medicinal values of Aloe which include treatment of Malaria, treatment of cuts,
making the face smooth, reduction of intestinal worms, healing of intestinal wounds and increasing
resistance to diseases. Traditional uses of Aloe known are as an ingredient in alcohol making and control
of soil erosion by encouraging growth of grass in the wild. Likewise, sap from Aloe secundiflora harms a
person with stomach problems by adding the pain while Aloe Turkanesis heals the same stomach
problems. Aloes found in this region in the wild are Aloe Turkanesis, Aloe Secundiflora, Aloe Nyeriensis
and Aloe Lateritia.

The group faces challenges in marketing as they have no money to scan for colour labels for their
products. They are forced to photocopy with the end result that customers assume the products with
white and black labels are substandard, therefore leading to fewer sales. The current status of business
in Aloe in the area is promising according to the group.

Aloe is promoted in the area by LWF and Ol Pajeta Conservancy but nobody supports domestication
other than the group. Ol Pajeta Conservancy supports the group by providing transport on field days and
other events, providing fencing posts and providing environmental tours to surrounding schools. Up to 30
children and two teachers are given free entrance to the conservancy.

Key Informant (Mr. Aden Mohammed)
Mr. Aden is a former processor and started involving himself in the aloe trade since the early eighties. He
would harvest the lower leaves of the wild aloe once a year to get sap and then leave the plant for a year
to rejuvenate. Later he started harvesting the aloe sap twice a year. He used to boil the sap for three
hours using a large metallic basin and sell the resultant crystal stone to customers from Mombasa. The
sale was by order. There was one very well known group then known as Latif Wood Works from
Mombasa involved in the Aloe trade. The prices were very low as in 1982, 1kg of Aloe bitter was selling at
30/- Kenyan shillings. He also started selling the bitter in Nairobi which saw an increase in prices from 30
shillings to 55 shillings per kilo. The Aloe used to be exported to China, Pakistan and Dubai.

The benefits he got from selling Aloe sap were that it was a source of livelihood for his family. There were
also medicinal benefits through treatment of diseases. This was by mixing the Aloe with Garlic to treat
Malaria and ulcers.

The challenges he faced was that at times there was no market for the Aloe after delivery leading to
losses. Another challenge is that the high temperatures in Mombasa cause the aloe gum to melt leading
to further loses. Therefore, he decided that he would only supply the orders once the money has been
paid upfront. The Government did not know much about Aloe and so did not bother with what was
happening with the wild Aloe. He confirmed that now days people do not use the wild Aloe as it is banned
by the Government. Likewise he no longer practices the Aloe trade because of the ban. However, the
people have been getting help from LWF and Maria Dodds. He emphasised they would like more help in
training and information dissemination from the secretariat and from ICIPE, KEFRI and ICRAF as these
organizations have more knowledge and experience on aloe farming.

Since he no longer conducts aloe trade, but he is now a patron to the Rumuruti Women Aloe group. The
group faces financial constraints to start a nursery and to put up a local factory for value addition to
enable them sell the end products to both local and external markets. He was aware of value addition to
the Aloe so as to get products such as medicine, lotion, soaps, detergents and chewing gum.




Susan Wren March 08. LWF, Kenya                                                                        137
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Annex 10. The HACCP Seven Principles
Principle 1: Conduct a hazard analysis. Plants determine the food safety hazards and identify the
preventive measures the plant can apply to control these hazards. A food safety hazard is any biological,
chemical, or physical property that may cause a food to be unsafe for human consumption.

Principle 2: Identify critical control points. A Critical Control Point (CCP) is a point, step, or procedure
in a food process at which control can be applied and, as a result, a food safety hazard can be prevented,
eliminated, or reduced to an acceptable level.

Principle 3: Establish critical limits for each critical control point. A critical limit is the maximum or
minimum value to which a physical, biological, or chemical hazard must be controlled at a critical control
point to prevent, eliminate, or reduce to an acceptable level.

Principle 4: Establish critical control point monitoring requirements. Monitoring activities are
necessary to ensure that the process is under control at each critical control point. In the United States,
the FSIS is requiring that each monitoring procedure and its frequency be listed in the HACCP plan.

Principle 5: Establish corrective actions. These are actions to be taken when monitoring indicates a
deviation from an established critical limit. The final rule requires a plant's HACCP plan to identify the
corrective actions to be taken if a critical limit is not met. Corrective actions are intended to ensure that no
product injurious to health or otherwise adulterated as a result of the deviation enters commerce.

Principle 6: Establish record keeping procedures. The HACCP regulation requires that all plants
maintain certain documents, including its hazard analysis and written HACCP plan, and records
documenting the monitoring of critical control points, critical limits, verification activities, and the handling
of processing deviations.

Principle 7: Establish procedures for ensuring the HACCP system is working as intended.
Validation ensures that the plants do what they were designed to do; that is, they are successful in
ensuring the production of safe product. Plants will be required to validate their own HACCP plans. FSIS
will not approve HACCP plans in advance, but will review them for conformance with the final rule.

Verification ensures the HACCP plan is adequate, that is, working as intended. Verification procedures
may include such activities as review of HACCP plans, CCP records, critical limits and microbial sampling
and analysis. FSIS is requiring that the HACCP plan include verification tasks to be performed by plant
personnel. Verification tasks would also be performed by FSIS inspectors. Both FSIS and industry will
undertake microbial testing as one of several verification activities.

The seven principles are included on international normes system ISO 22 000. This standard gives the
pathway and all details about Total Quality Management in different activities (Production, services....).




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Annex 11. Sustainable Wild Harvest Protocols
1. Central Aspects of Sustainable Wild Harvesting of Plants Materials

1.1 Quality control
Wild plants may vary considerable in quality depending on site, soil, weather and climatic conditions, time
of harvest, genetic variations etc.

1.2 Correct identification of the species
To prevent the harvesting of the wrong species it is important to develop simple pictorial guide sheets
(laminated) and provide to the harvesters and the grading teams. Training in correct species identification
should be carried out at the beginning of the initiative and re-enforced through on-going training in
sustainable wild harvesting techniques, handling etc..

1.3 Contamination with other species
Contamination with related or non-related species is a common problem where the required species are
growing in mixed stands. The collectors should have basic training in plant identification, as part of the
above, and identified as a component within the sustainable wild harvest protocols.

1.4 Land use history
Current land use must be recorded as part of the mapping process, land history is also of importance
when the area is to be certified under the international statutory standards requirements (i.e 5 year
history). This should include any current or past fertilizer use in the areas where the species are to be
harvested, and run off pollution from towns over the harvesting area and dump sites within the harvesting
area. Harvesting should be carried out at least 30m from agricultural fields, roadsides and dumps, and at
least 500m from urban settlements.

2. Pilot project phase
The importance of beginning this initiative as a pilot phase is particularly high in this case where there are
a number of parameters not fully researched and determined, such as the economic return to the
harvesters from the selected species. It is also critical that before engaging in a full programme of
commercial harvesting and processing that the training and extension component is well established and
active, the wild harvesting groups are strong and well managed, the sustainability protocols agreed by all
interested parties, systems developed and in place and the harvesters are well versed and able to comply
with these protocols. Throughout the pilot phase impact monitoring must take place so that the protocols
can be sharpened or adjusted according to the results. The areas will include:
• Inventories and mapping of wild plant populations should be made so that sustainable harvesting
     levels can be established without negatively impacting the overall plant population in a given areas.
• Use of transects to measure the impact of wild harvesting of the selected indigenous species in terms
     of the health and vigour of the plants
• The optimum levels of harvesting to ensure the continuity of supply whilst avoiding over-harvesting
• Impact of slight variations in the harvesting techniques on plant recovery and survival.
• Socio-economic impact; the incomes achieved from the harvested plant materials and the ratio of
     women and disadvantaged engaging in economically rewarding activities stemming from this initiative
     (i.e incomes from harvesting, processing, grading, support activities such as training and extension
     etc).


.




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3. Protocol development for sustainable wild harvested of selected plants
Practical guidelines for the sustainable harvesting of the selected indigenous plant products need to be
developed which can be effectively used by the local/resident communities and the field staff and siupport
agents involved with this initiative. The protocols also need to be suitable for use by the communities and
for the purposes of organic certification, in the form of a report and as written information/ interpretation
material.

3.1 Mapping and zoning
The map is the first tool for developing sustainable wild harvest systems. The map should identify the
main ecosystems and predominant botanical species. The species that is to be the subject of wild
harvesting is then marked clearly in the regions where it is most abundant. The areas where wild
harvesting would damage the health of the species /habitat/ natural diversity should be marked in red as
non-intervention zones (blocked from collection). Contaminated areas, i.e close to industry, military
shooting areas, timber processing etc is also marked on the map

This initial mapping stage has been assessed only in general terms during this assignment, and a
detailed mapping will need to be carried out by local botanists familiar with the area, preferably using
GPS plotting methodology. The plotted areas are then incorporated into operation maps, clearly marked
as harvesting zones for each specific species. From this point a detailed botanical survey of the selected
plant species growing in these zones should take place using transects, as described in this document,
together with assessment of the overall plant stand. This information gives rise to the harvesting capacity
and more exact harvesting thresholds of the selected species within the identified zones. From this
position the rotation of harvesting across and within the zones over the entire mapped areas can be
developed. This is the foundation for the sustainable wild harvesting protocols.

3.2 Harvesting methodology
Once the mapping component is in place the harvesting methodology has to be developed. This is again
a process of monitoring and evaluation, sharpened and adapted through the pilot phase.
The economic aspects need to be included in the harvesting methodologies as well as ensuring the
continued health of the plant, for example:

    •   Timing of harvest;
    •   Harvesting levels
    •   Yields.

3.3 Monitoring and evaluation information for measuring impact of wild harvesting
The sustainability threshold of the selected plants means ensuring that the plant population is not
depleted or damaged by over-harvesting. These thresholds can only be established empirically viz. by
careful assessment followed by monitoring and evaluation of the health of the species over several years
to ensure that harvesting is truly sustainable. The growth habits and life cycle of the plant need to be
known to assess how much harvesting and disturbance can be tolerated without the plant’s population
and ecology being significantly affected. After harvesting, regeneration should be monitored and
compared with non-harvested control stands of the same plant in the same area. This will require
permanent quadrats to be marked out where regrowth and annual biomass (above ground dry matter) is
                                                                                   2
compared between harvested and non-harvested plots. Each quadrat (100 m ) should assess the
following parameters and recorded over three years on a data collection sheet. Three years is the
minimum necessary to establish trends in changes in plant population following wild harvest. For
example, if wild helichrysum is propagated by seed, wild harvest of the flower heads may have a negative
effect of plant numbers.

 QUADRAT YIELD:                                 DATA COLLECTION SHEET

 Date
 Location
 Target Species (e.g. Helichrysum)


Susan Wren March 08. LWF, Kenya                                                                         140
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 Quadrat No.
 Treatment: Harvested/ non-harvested
 No. of plants per quadrat
 No. of target species plants per quadrat
 Clipping yield (g DM)
 No. of clipping this year
 Annual yield (above ground plant) g DM

When these data is collated and analysed, the project will be able to determine the trends in plant
populations between harvested and non-harvested plots and to adjust, if necessary, the wild harvesting
protocols

3.4 Risk analysis and critical control points
The risk analysis and critical control points are designed to prevent over-harvesting or poor harvesting
practices that threaten survival of the plant. This aspect is a central component of the sustainability
protocols and the monitoring methodology, and is set up as a verification and validation mechanism of
these sustainability protocols. To this affect it refers to and is based on all of the components:

3.5 Verification system
These risk based management system is a practical tool that attempts to address the conservation
concerns, requirements of the ICS implementation, and those of external certification systems. Within this
system the protocols must be constructed in a way that can be clearly interpreted by the communities
involved. Using critical points along the production chain the quality of the final product can be improved if
extension and management focus is directed at key critical points along the production chain, in what is
referred as critical control production points.

 At that point along the chain if corrective measures are not planned for in advance by the farmer or
farmer group, then deterioration of quality can be observed, which directly affects the overall returns to
the farmer. When harvesters understands the complete chain, he/she has the ability to plan in advance,
possible eventualities or risks, establish certain standards that should be followed, thus has a better
control of his/her production process and reward.

3.6 Developing the mapping and zoning of the harvesting areas

Definition and description of collection areas
The definitions and description of the selected harvesting areas must accord with those officially
recognized and established, and include the local names and references known by the resident
population/harvesters.

Identification of emission sources and spraying
Any areas that present a risk of contamination of the wild plant material must be plotted on the official
maps and designated as non-harvesting areas. These areas should include 30 meters (i.e from fertilized
fields) to 500 meter (from residential areas) buffer zones.

Designated harvesting areas and harvesters
There must be a strong relation between the area size and the number of collectors to assure that
sustainable harvesting levels can be established without negatively impacting the overall plant population
in a given area. A continuity of supply must be assured while avoiding over-harvesting.

After the approved map is put on the wall at the registered collection centres, the collectors sign that each
delivery is harvested within the approved areas.

In order not to disturb the overall ecology of the harvesting area, the harvesters should use certain
identified route to reach the harvesting areas, and risk management protocols established to govern
movement within these areas.


Susan Wren March 08. LWF, Kenya                                                                           141
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3.7 Recording systems
The process starts with harvesting and ends with the market. Working from the market perspective,
quality attributes (in all dimensions) that consumers are interested in are identified before production
starts. The records need to include information on the following:

•   Harvester groups
•   Critical control points and sanctions
•   Internal inspectors audits
•   Harvest area and species lists
•   Wild harvest record sheets

Example: Collectors should use recording sheets whenever wild plants are harvested.

Recording sheet for Sustainable Wild Harvest

Botanical name

Common name

Location                                                  :


GPS coordinates                                           Altitude:


Date:                                                     Time:

Weather:

Parts harvested

Daily yield (kg)                                          DM yield (kg)

Distance from fields,
settlements
Handling methods

Cleaning method

Name of collector




Susan Wren March 08. LWF, Kenya                                                                            142
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Annex 12. Status Report of Aloe Commercialisation in the Coastal Region

Please see the report separately attached, commission for this study by the consultant, S.Wren.




Susan Wren March 08. LWF, Kenya                                                             143

				
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