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					        World Agroforestry Centre
           TRANSFORMING LIVES AND LANDSCAPES




     Moving Ahead with
Market-Oriented Agroforestry in
       Western Kenya




     Outcomes and ideas from
      the 29-31 January 2002
        workshop in Kisumu
                                      Contents

1. Summary .............................................................................................. 4
2. Introduction ........................................................................................ 5
3. Definitions and Concepts ..................................................................... 6
4. Main findings and recommendations.................................................. 7
5. Market Opportunities .........................................................................11
6. Research ............................................................................................16
7. Extension, training needs and resources ..........................................17
8. Policy issues .......................................................................................18
9. Steps to promoting market-oriented agroforestry............................19
Annex A: Participants and contact information ....................................23
Annex B: Evaluation highlights ..............................................................28
Annex C: Presentations..........................................................................31




Market-Oriented Agroforestry Workshop in Kisumu 2002—2
Workshop participants said…

Researcher: Even agroforestry products I thought could not
be sold or marketed I have learned have value and can be
marketed.

Student: I learned a new dimension of agroforestry as a
business rather than environmental concern.

Farmer/nursery owner: I really gained from the marketing
and to improve my tree nursery. I have a contact with Africa
Now to come and see my group on bee keeping.

NGO: Sources of information on tree seeds and seedlings,
marketing strategies, especially KACE (an important
contact—their idea of marketing should be ―propagated‖). I
also learned that there are many people ready to save our
forests and trees from extinction.


See more comments on page 28!




Market-Oriented Agroforestry Workshop in Kisumu 2002—3
1. Summary
Market-oriented agroforestry…where does it take us? A group of 49 interested
people from diverse sectors met in Kisumu, Western Kenya for two and a half
days sharing experiences, ideas and demonstrating products and technologies.
The group consisted of representatives of the private sector, organizations
involved in marketing of wood and agroforestry products, government officials
and researchers.
        The major goal of the workshop was to learn about demand for
agroforestry products. Agroforestry system and technology development tends
to be driven by interests in improving productivity. In many cases, we find that
farmers produce more but are unable to market what they produce. They have
not been well informed about market demand, including price, quality,
seasonality or market opportunities. In other cases, farmers may be informed
but not organized to meet the demand. Market demand changes all the time as
well—liberalization of markets, shifting policies, changing tastes and the
economic conditions of consumers all affect demand. Extension efforts have not
kept pace with market realities. Other objectives of the workshop including
fostering links between farmers, private sector and researchers, and coming up
with ideas for how to integrate market information into extension materials.
        Some key findings of the workshop included:
 Profitability means sustainability. When farmers, processors and market
actors make a profit they can invest back into the business or branch out into
new enterprises. Enterprises can involve not just farming but also providing
services to farmers such as extension advice, business services, marketing and
processing.
 The private sector is dynamic and provides a wealth of useful information to
farmers and extensionists.
 There are several new opportunities such as clonal eucalyptus, contract
honey production, commodity export services, and links with fruit wholesalers.
 The workshop provided opportunities for exploring links between the private
sector and farmers but we should consider also trade fairs, sector-specific
conferences (such as fruit or timber), inviting private sector to farmer field days.
 Few if any extension materials are available on markets and enterprise
options.
 Understanding the policy dimensions of markets is critical, and this entails
being up-to-date on policy changes and also on implementation of policies at the
local level. Policies on tree cutting and charcoal marketing can confuse farmers
and inhibit investment.
 Nearly all R&D institutions attending the workshop are interested in market-
led production but have little experience and expertise in it.




Market-Oriented Agroforestry Workshop in Kisumu 2002—4
Bashir Jama, ICRAF’s East and              2. Introduction
Central Africa Regional                     The World Agroforestry Centre (ICRAF) is
Coordinator, opens the workshop             engaged in many activities with multiple
                                            partners in Western Kenya. It has been
                                       working for a decade to provide options for
                                       improved soil fertility to increase productivity.
                                       Researchers found that farmers wished to
                                       improve soil fertility largely for high value
                                       crops such as market vegetables (e.g.,
                                       sukuma-wiki). Soil and water management
                                       can be approached more successfully through
                                       the introduction of high value crops such as
                                       bananas. Farmers expressed great interest in
                                       high-value tree crops with market or medicinal
                                       potential. But the questions remained: how
                                       can ICRAF and partners integrate these
                                       important concerns and findings with an
                                       understanding of the existing and future
  demand for products such as vegetables, bananas, fruits, and wood products?
  How can we help extension providers and farmers to improve quality, market
  access, and market information? What are the best ways for farmers to organize
  to sell their products or to create other forms of enterprise? How an we best
  communicate these issues to policy-makers?
          With these concerns in mind, ICRAF started working on markets and
  enterprises for agroforestry products. In 1999, ICRAF organized a regional
  workshop on agroforestry and since that time has hosted three training sessions
  on markets and market analysis. Within ICRAF’s Lake Victoria project, research
  has largely focused on markets for charcoal and fuelwood but other markets
  have been explored. ICRAF is also actively participating in farm-level enterprise
  development within the National Agriculture and Livestock Extension Programme
  (NALEP) focal areas. Out of the Maseno office, ICRAF has worked with farmers
  on high value trees, improved fallows and biomass transfer, among other
  activities. Contacts with private sector operators were developing in the honey
  sector (ABLH, Africa Now), the nursery sector (Pabari Industries) and the
  fuelwood sector (Homalime). Will Frost, who attended and presented at the
  Kisumu workshop, works with peri-urban nurseries and enterprises around
  Nairobi. Through a partnership with Technoserve, ICRAF is assessing the market
  for calliandra seed in Kenya. In Cameroon and southern Africa, ICRAF is actively
  involved in the processing and marketing of indigenous fruits.
          ICRAF staff in Western Kenya felt that the time had come to bring the
  market and enterprise issues into sharper focus, to network more intensively
  with the private sector, and to make connections between markets and
  enterprise, policy issues and extension approaches and materials. It is not
  enough to do market studies: this information has to get to farmers. Existing


  Market-Oriented Agroforestry Workshop in Kisumu 2002—5
market information services, many of which are Web-based, are not reaching
farmers, and they contain little information on tree or agroforestry products.
Both researchers and extension providers are not well informed about market
issues. There may be critical policy bottlenecks that have to be addressed before
a market can progress. We found this to be the case with charcoal.
       This ―market oriented agroforestry workshop‖ provided avenues for
addressing some of these issues. It brought together 49 participants from
ICRAF, partner research and development organizations, the private sector, and
government for two days. Please find the full participant list in the Annex.
       The workshop highlighted the private sector: what they need, how they
are organized, and how they can be reached. These presentations took up the
entire first day and were extremely well received. Many participants wished for
more private sector participation, and more on enterprise development. The
workshop then moved to research and extension perspectives: these
presentations provided some key insights into how organizations are adapting to
focus on markets. Finally, action groups worked on three areas: extension,
policy and market development.

3. Definitions and Concepts
Agroforestry provides many benefits including soil fertility replenishment, erosion
control, and provision of tree products for households and beyond. In making
decisions about which trees to grow, farmers need to consider many factors.
The potential for the tree and its products to generate cash benefits is a prime
decision factor, though we must assert it is not the only factor. To generate
cash benefits, there must be a link to markets.
        What goes into marketing agroforestry products? How are links to the
market made and sustained? How can farmers get information about products
demanded in the market, about ways to interact with market actors and about
how to run their farms as enterprises?
        The first step is to identify the demand for agroforestry products. This
means identifying the products, the quality of the products demanded, the
quantity, particular seasons and timing of demand, and market links and
locations. Often the organizations assisting farmers promote the production of
certain trees or tree products without fully understanding how the farmer will sell
these products: Is there a ready market? Can a market be ―created‖? The
market may be there but effort is needed to make links between farmers and
market actors. What about quality and quantity concerns? Does the product
need to be bulked before selling, and who can do this? Can it be graded,
processed or otherwise improved to get a better price, and what are the relative
costs and benefits of adding value to the product?
        These are all questions that can only be answered by talking to market
actors involved in the different subsectors (marketing of specific products or
line of products such as timber, fruit or tree products). Subsectors and products
within them have specific market chains (see example in Figure 1: Mango


Market-Oriented Agroforestry Workshop in Kisumu 2002—6
marketing chain for eastern Kenya) with different points of contact, pricing
schemes and timing. A market chain traces the product as it moves from
producer through various levels of trade and processing to the consumer.
        Another set of questions involves different ways of organizing enterprises.
It often makes economic sense for farmers to come together to market crops but
what is the best way to structure these efforts. Are cooperatives the only way?
Participants in the workshop suggested that farmer associations were a more
efficient and effective way to organize for the market. What about individual
entrepreneurs? Also, enterprise opportunities may exist in processing
agroforestry products or even in providing services to farmers. Enterprise can be
seen as a set of skills, such as marketing and creating a business plan, and not a
specific structure.
        To gauge the marketability of different products, many factors have to be
considered in a dynamic fashion. For example, competition can change quickly
(negatively) with liberalization measures that bring in cheap goods from outside
or (positively) with improved infrastructure for local production.




4. Main findings and recommendations
Let us look now at the findings and recommendations from the workshop in
Kisumu, which focused on marketing of agroforestry products in Western Kenya.
We identify the major findings that we feel have relevance not just in this region
but elsewhere; however many examples are specific to Western Kenya. Within
the findings, there are discussions of particular market opportunities and links.
We hope to expand these links through inclusion of some of the participants or
their representatives into the Western Kenya scaling up consortium. In this way,
we can keep our fingers on the pulse of the market.


Market-Oriented Agroforestry Workshop in Kisumu 2002—7
Market potential depends on many factors, including policies, type of
product, quality, location, competition, seasonality and market channel
While there is strong demand for some products such as charcoal, despite policy
impediments to charcoal sellers, there is limited demand for others such as an
improved paw-paw species specialized for papain (factory closed down because
of cheap imports from eastern Democratic Republic of Congo). Clear market
channels exist for some products, such as honey. Other market channels have
specified ranges that may or may not apply to specific farmer groups (e.g., Pan
Paper specifies that it will buy certain species of certain quantities within a 60
km radius of its factory in Webuye). Frequent communication with the market
operators is essential to understand these factors.

Market information changes rapidly. Where can you get it?
Brokers like the Kenya Agricultural Commodity Exchange (KACE) provide
market information to their clients. East African Ministries and even some NGOs
provide up-to-date (weekly) market information on major commodities and
inputs. However, information on agroforestry products is scarce. The major
market information systems put in place by governments and funded by donors
track very few agroforestry products. For instance, at a recent meeting of
organizations managing the market information systems funded by major donors
for east Africa, it was found that in the tree product category, only charcoal in
Kenya and oranges in Tanzania were being tracked.

If you are a farmer or an extension agent wishing to learn more about markets
and enterprises, whom do you need to talk to?

 Brokers
Brokers link farmers to markets. Commodity brokers such as KACE link
individual farmers and farmers’ groups to buyers in export markets. They use
the Offers and Bids systems—they act as a
clearinghouse by linking offers and bids; for these       ―Most Kenyans were
services they get a 2% commission. They have up to        selling products at a
600 clients in the world and can send out supply          loss!‖ – KACE
information to these buyers. KACE also assists in
purchasing inputs at better prices through bulk purchases. Sample transactions
include farmers in Bungoma seeking 50,000 seedlings of an improved Eucalyptus
tree that matures in 3 years, and willing to pay 5 KSH a seedling. Or take the
case of a buyer in Germany who wants 22 Metric tonnes of honey @ 1.6 US$/kg.
Another client seeks 300 tonnes of soybeans per month at 27/kg.
    Wholesalers such as Muyoga Vegetable Shop, Ltd., link farmers to large
supermarkets such as Nakumatt. Africa Now, based in Nairobi, and the
Association for Better Land Husbandry (ABLH) link honey producers to the
private sector company Honey Care through provision of credit and technology.




Market-Oriented Agroforestry Workshop in Kisumu 2002—8
There are many other kinds of small-scale middlemen who buy from farmers and
sell to wholesalers, shops or consumers.

 Representatives of companies buying products
Invite them to farmer field schools, workshops, fairs and other events. Contact
them at their offices. Find out specifically what they need including quantity,
timing/seasonality, measure (weight or size), quality or variety (e.g., wood
density). For example, Thuiya Enterprises wants to contract farmers to grow
trees for charcoal. They will help the farmers to organize in groups, will provide
loans and will give the market price for the wood. Homalime will pay for wood
by cubic metre while Nzoia Sugar buys in tonnes.

 Consumers!
Nursery owners find out what species their customers want to buy both directly
through customer preferences and indirectly through discussion with other
nursery owners and training. Different types of consumer have different
preferences; for instance, according to Mugoya Vegetable Shop, many Kenyans
prefer local fruit while improved fruit is preferred for the export market. More
research needs to be done on preferences of different ethnic groups and classes
of society for fruit, medicinal products from trees and other tree products.

 Enterprise development experts
In order to negotiate with brokers, middlemen and companies, you may need
help to understand the market and to create an enterprise structure that works
for your farm, your group or your commodity. You need to learn how to manage
finances, how to calculate costs of inputs including your own labour, and how to
get information on prices and opportunities.

>>Enterprises can consist of processing and providing services
Producing goods for the market is an enterprise, or contributes to an enterprise,
but rural people can consider enterprise options such as processing products
such as medicines, and providing services or inputs to farmers, such as
enterprise development services, germplasm or compost (using tithonia!)>>

What is a smallholder association?
According to KACE, a smallholder association does not have a boss; it is farmer-
owned and farmer-managed. Everyone works as partners and each farmer gets
a share. Money does not go back to the group it goes directly to farmers. The
keys to success are openness, transparency and accountability. ABLH and
Technoserve also provide support to farmers associations and to
entrepreneurs. ABLH helps with standards and certification for export as well as
business development.
Contract farming is another way to link farmers to markets. ABLH promotes
contract farming for example in Kerugoya with Everest Enterprises for beans.


Market-Oriented Agroforestry Workshop in Kisumu 2002—9
They are also buying macadamia nuts in Kerugoya to make a snack bar named
Mr Fudge (1 kg for KSH30). Contract farming is where a company will guarantee
a market to individual farmers or farmer groups if they in turn guarantee to sell
their production or a portion of their production to the company. Often the
company provides inputs such as seeds, fertilizers or technical advice to its
farmers. While the price paid to farmers in contract farming may be lower than
the market price, it is often guaranteed. This approach tends to be more
beneficial to farmers in areas remote from competitive markets.

Technoserve prefers to work with entrepreneurs in helping them develop their
businesses. Entrepreneurs are people who enjoy building businesses and are
able to take some risks to do so. Technoserve finds that generating a profit,
which is the goal of an entrepreneur, is a key element of sustainability. If there
                                              is a profit, there are funds available
                                              for future investment. Any
                                              individual can become an
                                              entrepreneur but certain skills such
                                              as developing a business plan are
                                              essential.

                                                  What is certification and can it
                                                  benefit Kenyan smallholders?
                                                  Certification demonstrates that your
                                                  product was produced without
                                                  chemical inputs or with very limited
                                                  chemical inputs (NTFPs, fruit) or
that it was produced in an environmentally sustainable manner (timber
certification). ABLH and Kenya Association of Forest Users (KAFU) can help
farmers learn about certification. ABLH uses the International Federation of
Organic Standards, which are internationally known and accepted in international
markets. The focus is now on big private farms that wish to export and can ask
for bulk certification.
        Certification is almost exclusively for the foreign market; demand for
certified products changes even in Europe and the United States. Right now, for
example, there is lower demand because of a generally depressed economy, but
in general the demand for organic and certified products has risen over the
years. For example, there has been a huge increase in the demand for organic
baby food in the UK in the last 10 years—organic fruits could be an important
product in this market. In five years, the European Union will enforce a ―zero-
tolerance‖ policy that strictly enforces a ban on pesticide residue on imported
foods. There may be niches here not just for certified products but also for
organic pesticides.




Market-Oriented Agroforestry Workshop in Kisumu 2002—10
5. Market Opportunities

Timber and wood products
Of all subsectors explored in the workshop, the wood market has the most
potential as a money earner for smallholders. Why? The demand is huge and
growing as Kenya’s natural forests dwindle. Products include fuelwood, charcoal,
furniture, building materials, stakes, and poles. Some timber species have other
important uses such as for local medicines and charcoal, while other NTFP
species such as neem are being used for timber.

Pulp and paper
Pan Paper is interested in Eucalyptus and especially E. saligna from 10-15 years
old, and will pick up timber from farmers within a 60 km radius of the plant in
Webuye. They may also buy E. grandis, Pinus patula and Cupressus lusitanica.
They need 1-2,000 tonnes from the area before agreeing to pick up. Quality of
the tree is not an issue. Contact: Mr Diro on 0321-61472 or 33701

Fuelwood
Homalime
Demand for fuelwood is for 30 tonnes or 1,630 feet3 per day (twice this much
under full production). They buy in cubic foot measure and convert to pounds.
One lorry carries 600 feet3. They cannot compete with the price of converting
fuelwood to charcoal and it was noted that the subsidized wood they have
received from government forests has depressed the price. Their main interest
is in Eucalpytus but would also buy pine (Eucalpytus is denser, hence
preferable). They can contribute seeds and materials free of charge. They have
given out seedlings and other inputs but have not seen an impact. Homalime
has had bad experiences with cooperatives as well so there is certainly scope for
finding better ways to link farmers to this market. They see that policies hinder
farmers from cutting trees, hence the development of trees as an agro-industry.
In terms of overall economic trends, 90% of the lime production went to Uganda
last year; the Kenyan economy is down at present. Nzoia Sugar has some
intercropping (trees and cane) and uses some firewood as a starter but mainly
biogas and cane byproducts are used for fuel.

Charcoal
Thuyia Enterprises will provide loans for up to 20,000KSH interest free for a
farmer association. They have to have at least 100 acres in order to work in an
area. They buy only from planted woodlots. Expected yields: 160 to 330 kg
bags per acre depending on processing, management of land. Contact: Fridah
Mugo.

A charcoal merchant, Mr Daniel Okore, based in Eldoret, serves all Western
Kenya. He claims that there is no charcoal association to help develop the sector


Market-Oriented Agroforestry Workshop in Kisumu 2002—11
and it is plagued by corruption and poor policies. This is not the case in Uganda.
He came to this profession after becoming ―redundant‖ at his company. He is
educated and entrepreneurial in his new profession. He very much wants to se
policies changed to promote sustainable charcoal that is grown on farm and not
taken from remaining forests.

Timber
Elizabeth Mwangi, MSc student from Kenyatta University, is studying marketing
of timber in the Embu area. She finds that farmers lack market information. If
                                         farmers plant trees without the timber
―The sustainability of on-farm           market in mind, the trees are not
tree growing depends on                  managed in an optimal way for timber.
marketing‖— Elizabeth Mwangi             Demand for wood is said to be far
                                         outstripping supply yet when farmers in
                                         Meru demanded higher prices,
sawmillers refused and bought trees elsewhere. Problems faced by farmers
include:
    1) Species selection—a need for diversifying species
    2) Poor quality timber due to poor management skills
    3) Lack of timber marketing information
    4) Lack of stable markets and links
    5) High transportation costs


For more information on timber, refer to the Proceedings of the First
and Second Meru Timber Marketing Stakeholders Workshop (ICRAF,
Forest Action Network/FAN, MoARD) and other reports from FAN.

Mr Iganji of the Forest Department announced a project that is producing
clonal eucalyptus trees from South Africa in Karura. The trees grow fast
and are pest resistant. In two years, they are ready for fuelwood, in three years
for posts and in 6-8 years for telephone poles and timber. Seeds from superior
germplasm can be ordered now at KSH6/each while cuttings are KSH10/each
(see contact information in Annex).

Honey
Two groups, Africa Now and Association for Better Land Husbandry
(ABLH) discussed marketing schemes for honey. Africa Now has had a lot of
success with honey production. They facilitate farmers to sell their honey to
HoneyCare Africa, a private company. HoneyCare makes the hive. One type of
hive, the Lagstroff hive, is used because you can harvest from only one box; in
other types of boxes, there is a mixture of eggs and honey. But with this box
you only harvest honey, nothing else. The work is minimal and takes 30 minutes
two times a month. You can get 15 kgs per hive. HoneyCare also does training



Market-Oriented Agroforestry Workshop in Kisumu 2002—12
and they are the market. They come to farmers to buy honey. The hive costs
3,000 KSH.
    Africa Now loans farmers 500KSH with 2,500KSH to start; these loans will be
paid back over time, starting with
                                       Doris Obara and Joseph Lokaale of
the first harvest to Africa Now.
                                       ABLH introduce honey technology
After two years, a farmer
can pay back the loan.
When the bees have
colonized hives, you can
come in with empty crate;
harvest just pure honey.
Honeycare has a machine
and honey will come out
when you spin it. The
price goes up every year;
now it is 100KSH per kg.
Honeycare has a standard
price that is competitive.
Kenya has high potential for honey; there is plenty of honey but it is mixed
quality; Honeycare is trying to control quality. Uchumi is buying and Nakumatt
wants to buy but they want to control quality. What about tree species for
beekeeping? Sunflower, calliandra, neem and acacia species are good. Africa
Now recently won an international award from World Bank.
    ABLH also promotes honey within the context of better land husbandry. They
have three major activities:
    1. Group business development
    2. Group market development through Farmers’ Own Limited
    3. Standards and certification in association with Soil Association of UK
According to ABLH, demand for honey was outstripping supply. Farmers’ Own
had to delete honey from its product line because of low supply. Pawpaw jam
also had to be deleted.

Medicinal trees and products
Two medicinal trees highlighted were Prunus africana and Neem. The bark of
Prunus is now selling at 200KSH for export. 400kg X 2000SH adds up to a large
amount for a farmer. Exporters are selling Prunus at 1,200 KSH per pound.
Neem soap is now sold in a variety of outlets and other neem products such as
crèmes are also being produced. There is a list of Kikuyu, Luo and Luhya
medicinal trees available from Dr Mwongo. Mrs Mahuru, a local healer,
described how medicinal and herbal products could be important income-
generators.




Market-Oriented Agroforestry Workshop in Kisumu 2002—13
Fruit and nuts
Mugoya Vegetable Shop is a major wholesaler for fruits and vegetables. They
started out small but now have seven trucks based outside of Nairobi. They buy
in large quantities. Mugoya have a timetable on when to produce fruit and
encourage fruit trees for inter-seasons. They deliver fruit to Nakumatt, to
hospitals and schools. It may be that some fruit is not competitive (apples from
South Africa). South Africa is now producing 80% of fruits going to Taiwan.
Mugoya Vegetable Shop emphasizes however that we need to target local
markets—there are 10M people who consume these items.
        According to KACE, mangoes are going at a loss but they do not think that
farmers are getting this information. Fridah Mugo, on the other hand, noted that
the international demand for fruit is high. FAO has been giving courses on value
addition in the fruit sector. A telephone interview with a top manager for
Nakumatt revealed some deep problems in the fruit sector for Kenya. Uchumi
and Nakumatt, Kenya’s top supermarkets, have not been able to get a good
return on investment for fruit in Kenya due to high costs of electricity and lack of
infrastructure. Kenya Orchards is owned by Uchumi, which sources 80% of
their fruit from these orchards, and 20% from other sources. Even from its own
orchards, however, Uchumi is not making a profit. The respondent remarked
that Nakumatt now sources much of its fruit from South Africa. ―South Africa
can provide apples at dirt cheap prices.‖ Only 20-30% of fruit in
supermarkets is sold and the rest has to be discarded. The respondent said that
they were considering getting out of primary agricultural products and focusing
exclusively on trade in durable materials. He recommends that farmers
concentrate on growing pulses, which are not perishable. Clearly, we need more
information on this sector!


ICRAF and RELMA will publish a manual on mangoes in September
2002—contact Jan Beniest at ICRAF for further information.



ABLH is interested in purchasing macadamia nuts for the production of snack
bars. Contact ABLH, Box 601, Village Market, Nairobi

Nurseries
Will Frost of ICRAF presented his work on helping nurseries around Nairobi with
enterprise development. The training involved helping the nursery manager to
understand:
    Are you making a profit?
    Define objectives for the enterprise including making a profit, offering a
      service to the community or environment, or both
    Getting the price right
    Appropriate management techniques


Market-Oriented Agroforestry Workshop in Kisumu 2002—14
     Selling in the best markets and making customers aware of new products
     Choosing species
     Choosing seed supplier
     Is there a demand for improved quality?
     Meeting demand cost effectively
Other points raised were the difficulties of nurseries situated on the side of the
road due to laws against this practice, availability of water, pesticide use and
affect on water quality. See the overheads for this presentation in the Annex.

Nzoia Sugar introduced nurseries mainly for afforestation but they also raised
KSH100,000 from sale of tree seedlings. Farmers who delivered cane got
seedlings. Thus they are multiplying agroforestry businesses and generating
income for the company.

Margaret Ondiegi, private nursery operator started work in 1998 after a visit to
Machakos with RELMA and training with a GTZ project on nursery establishment.
She has several species available including grafted mangoes, sesbania, custard
apple, passion fruit, grevillea, eucalyptus, citrus and flowers. Her action plan is
to improve and expand plantings and encourage youth groups.

Pabari Nurseries were not present at the workshop but they have been
collaborating with ICRAF and other partners in agroforestry and sustainable
agriculture as part of the steering committee of the Western Kenya Consortium.

Processing and secondary services
Business development services (BDS)—Technoserve. Professionals can provide
useful information to farmers. BDS can involve assistance on business plans,
marketing, product development, market analysis, shipping/transportation,
technical issues or even legal issues such as contracts. The point is that
entrepreneurs should consider setting up support services to add value to
agricultural products. Farmers, and the rural economy, need these services.

Honey and fruit processing: Is there scope for farmers to do honey processing?
Africa Now says, ―First focus on quality.‖

                              Soy products—ABLH. Organic soy products are
                              processed into food additives (like Maggi cubes)
                              and energy bars that are sold in Nakumatt and
                              Uchumi.

                              Compost and products from waste—Kayole
                              Organic Management Association takes rubbish
                              and turns it into attractive products. See picture of
                              products at left.


Market-Oriented Agroforestry Workshop in Kisumu 2002—15
A message from the groups involved in processing is that, before investing, a
careful assessment of the costs and benefits of value-addition in relation to
demand for specific products is needed.


6. Research
ICRAF scientist Stephen Ruigu presented collaborative work of ICRAF, KARI,
KEFRI and Ministry of Agriculture. He described the
main tree species under study:                                  ―The future of trees
 Timber species: Grevillea robusta (high demand;               is on farm‖ –
used for coffin production), Maesopsis eminii,                  Stephen Ruigu
Casuarina spp. (reclaiming degraded areas),
Markhamia lutea, and Cordia africana.
 Medicinal species: Prunus Africana (Kenya exports 500 tons/yr and seed
cannot be stored, Warburgia ugadensis, Neem, Fagara macrophylla, Trichilia
(waterlogged areas).
 Main fruit species: Mango (introducing 15 grafted varieties), avocado
(plentiful; potential for oil extraction), Carissa, Ziziphus, tree tomato, passion
fruit and other local species.
 Fodder species: Calliandra calothyrsus, mulberry, acacia spp.

Dr Alice Kaudia’s presentation focused
on enterprise development efforts of
Kenya Forest Research Institute
(KEFRI) and was prepared in
collaboration with David Odee and
James Kamiri. She pointed out that
KEFRI sells products, services and
information. A key product and
source of revenue is tree seeds: over
25 tonnes was sold between 1993
and 2001. Demand for Calliandra
calothyrsus and Grevillea robusta has          Packets of tree seeds from Kenya
been highest while demand for Covyalis         Forest Research Institute (KEFRI)
caffra has declined. Demand for
seedlings has increased and KEFRI encourages entrepreneurship and partnership
with agricultural seed distributors and others (such as the project on clonal
eucalyptus).
       Other key areas that KEFRI contributes to are value addition and quality
control including converting ―waste timber‖ into aesthetic products and testing
timber products. Capacity building efforts include training in tree seed collection
and handling, timber grading and nursery establishment and management.
KEFRI also works on non-timber forest products (NTFPs) such as gums, resins,
medicinal plants and other high value NTFPs. KEFRI welcomes partnership in all
of these activities.


Market-Oriented Agroforestry Workshop in Kisumu 2002—16
ICRAF and Technoserve are carrying out a joint study on marketing of
Calliandra in Kenya. Results of this study should be available by
September 2002.


7. Extension, training needs and resources
John Kimani of the National Livestock and Extension Programme (NALEP)
discussed the importance of markets and enterprise in NALEP. NALEP supports
extension in 42 Districts nationwide with a participatory, pluralist approach
focused on the sensible use of natural resources and the empowerment of
communities. A key element of NALEP is the formulation of farm business plans.
Common Interest Groups (CIGs) can be entry points for marketing strategies.
John stressed the importance of needs assessments and noted that farmers tend
to ―sell‖ products rather than ―market‖ them; indeed they lack marketing skills.
Constraints to effective marketing include:

 Small quantities, many producers leading to low bargaining power and prices
 Monopsonies (one buyer, many producers) and monopolies (one producer).
These lower prices because there is no bargaining power.
 Middlemen are misunderstood: they face high risks and incur high costs but
their role has not been well understood and farmers still are unable to bargain.
 Policy often hampers marketing rather than promoting it (see policy section)

                             John concluded by saying that what is needed is
  ―Marketing is a
                             improving information to encourage fair competition
 function that begins
                             and removal of harmful regulations. There needs to
 before planting‖ –
                             be market systems analysis to identify new markets
 John Kimani
                             for old products and new products for existing
                             markets.

Mr Murithi of the Department of Forestry, Moi University, reported that they
have several agroforestry courses within the diploma, undergraduate and post-
graduate programmes. One course focuses on the marketing of tree products.
The department has a nursery enterprise that produces seedlings, but not
enough to meet demand.

The action plan for extension devised by the workshop break-out group
recommended actions in three categories:
 Providing product development information to farmers
 Providing market information on prices, and getting it to smallholders
 Small business development—training strategies to get farmers to look at
   their farms as small businesses; targeted to farmers grouped by enterprise



Market-Oriented Agroforestry Workshop in Kisumu 2002—17
  Enhance extension strategies—improved delivery mechanisms for market
   information (partnership with private sector on extension?)
 Need for detailed information on tree products as well as ―decision support
   system‖ that could be disseminated rapidly and inexpensively—even on seed
   packets (see MIPTAS initiative in last section)
 Is there a need for sylvicultural training for farmers?
Within each category, the action items included:
 Who is to be involved including NGOs, ministries, private sector
 Resource mobilization by Western Kenya consortium and KAFNET

8. Policy issues
Key issues include charcoal policy and other policies involving the cutting of
trees. The issues involved are not just strictly policy issues but also awareness
and enforcement issues: how do police and others interpret laws, such as laws
on transporting charcoal or on cutting down trees. The Forest Act is either not
understood or it is misused. The Act prohibits cutting trees from forests but not
on-farm. The problem is that police do not know the difference.
        The National Environmental Management Act (NEMA) is just coming
through and input is being solicited. Fridah Mugo and associates in charcoal
industry have formed a committee to formulate a wood fuel act so that charcoal
will be a legal product like maize. We need to learn from experiences in other
countries on how they are dealing with the charcoal industry and on-farm timber.

Priority actions recommended by the group included:
 Review existing policies on natural resource management, forestry,
    agriculture and environment: what are the marketing issues, permit
    requirements, transportation policies, obstacles
    faced by stakeholders?                             ―The best way is to
 Inquire into the success of pressure groups          plant, not burn‖—
    and legal action to change policies in Kenya       Workshop participant
    and elsewhere. Who are the key lawyers and
    activists involved? Raise awareness with
    legislators, enforcement and implementers at all levels.
 Lobby for forest products to be treated like other agricultural products.
 Ask if it is always necessary to draft another law. There have been many
    laws and statutes on environmental issues, perhaps too many. One
    suggestion is to empower district environmental committees rather than
    pass more national laws.
 Get farmers to estimate the value of their products and the correct
    interpretation of laws through workshops, training, schools, media such as
    posters at police stations
 Stakeholders to be involved in policy reform should include police, farmers,
    middlemen, charcoal makers and other manufacturers.



Market-Oriented Agroforestry Workshop in Kisumu 2002—18
   Link charcoal issue to wider issues of energy use: where is energy to come
    from? How can we learn from other countries?

9. Steps to promoting market-oriented agroforestry

1. The role of ICRAF
How can ICRAF best support market and enterprise development? The
workshop, participant evaluations and self-critique helped to point ICRAF in some
new directions.
   On the research side, a priority is to help farmers, researchers and extension
providers to understand and deal with markets and enterprises in a holistic
perspective, including:
 How market objectives fit with other objectives such as soil and water
   conservation, food security, and diversification
 Creating an understanding of market chains and the relationships within
   market systems—and how these change in response to different pressures
 How different enterprise and contract farming systems work in different
   circumstances
 Product development and value addition research for key products
 Tree crop product market research
 Market forecasting

On the development side, the workshop identified that:
 Market workshops should be complemented by research on important
   subsectors, identifying bottlenecks where ICRAF and partners can work
   together; using the workshop to develop an action plan for specific sub-
   sectors or to address specific bottlenecks (e.g., policy constraints in the
   charcoal market; sizing up the competition in the fruit market)
 Workshops could turn into fairs where private sector and farmer organizations
   come together to explore possibilities for working together
 Partnership with a few key private sector entities to develop or improve
   markets in a region or within a subsector. For example, working with artisans
   to develop machinery for nut processing; partnership with a huge
   agroindustry such as Unilever to diversify agroforestry products or to work
   with smallholders; developing niche markets such as shade coffee, organic
   cocoa or bananas.
 Facilitating introduction of extension materials that include market
   information and help farmers to become more market-oriented. These could
   also help in enterprise development by providing models for farmer
   associations.
 Fostering links in the region with regional R&D networks such as ASARECA’s
   (Association for Strengthening Agricultural Research in East and Central
   Africa) networks to enhance sharing of information and experience in
   enterprise development.


Market-Oriented Agroforestry Workshop in Kisumu 2002—19
2. Action plan on market sub-sectors
An action plan (Figure 2 below) devised by a breakout group involves looking at
the market chain. It could be used by KAFNET (Kenya Agroforestry Network) to
target activities for joint projects and resource mobilization. The full text of the
Action Plan is available at ICRAF-Kisumu.

Figure 2: Excerpts from Action Plan
Item/Producer Producer   Intermediary Consumer               Constraints Action Plan
Woodfuel         Farmer       TimSales        Cottage        Costing (lack   Business
                 KEFRI        Panpaper        Construction   of know)        mgt. Training
                 ICRAF        RAIPLAY         Household      Pricing         for products
                 MOI Univ.                                   Government
                 Farmers                                     control
                                                             Illegal
                                                             imports
Tree Seeds       KEFRI        KEFRI           Forest Dept.   Technology      Improve
                 Farmers      Provate         Farmers        Packaging       packaging
                 MOI Univ.    nurseries       Institutions   Quality         and
                 ICRAF        Manufacturers                  Lack of         information
                 Private      NGOs                           knowledge       Training on
                 operators                                   Storage         handling,
                                                             (viability)     production,
                                                             Contraband      preservation
                                                             seed            Quality
                                                             Distribution    control

3. Creation of an initiative: MIPTAS
**Market Information on Profitable Trees for African Smallholders**
MIPTAS is an information system geared to smallholder African farmers. It
collects and synthesizes information about profitable trees and tree products into
extension materials that can be disseminated by governments, NGOs, farmer
associations, and any other group. In addition, it provides forums for buyers,
sellers and policy makers to share contacts, information and resources on
profitable tree crops. MIPTAS Bulletins would be organized around demand for
tree crops and products in local, national, regional and international markets,
basic technical information needed to get started in the market, and where
resources and further information can be obtained. MIPTAS Bulletins could be
put into school exercise books, newspapers, religious bulletins or any other
formal or informal dissemination mechanism. They would be made available free
of charge but end-users may pay for the information by purchasing the exercise
books, etc. The aim is to get market information out to as many farmers as
possible as inexpensively as possible.




Market-Oriented Agroforestry Workshop in Kisumu 2002—20
Who would be involved in MIPTAS?
MIPTAS would be lean and decentralized to the country or even to regions within
a country. A basic format is followed for collecting and synthesizing information
but this is adapted to local conditions. Coordinating staff raises funds and
channels resources to decentralized production units. Decentralized production
units include a technical advisor, a media specialist and an extension-
dissemination specialist. Quality control and monitoring are a joint endeavor of
the coordination unit, decentralized production/dissemination units, and farmer
advisory groups. Private and public sector investors could sponsor special
MIPTAS Bulletins and forums on specific products or in specific localities.

Why MIPTAS?
 Profitability is the key to sustainability: when farmers and entrepreneurs can
make a profit in growing trees, these trees will be planted and sustained in the
landscape. If there is no profit, other crops and land-uses will out-compete or
replace trees.
 Without better returns to agricultural labor, farmers will not have the means
or incentive to invest in environmental management and soil fertility
improvement.
 Markets for some tree crops are strengthening locally, regionally and
nationally and could become important economic assets (timber, fuelwood and
charcoal, NTFPs, fruits, medicinals, organic tree products)
 African smallholders benefited from traditional tree crops—cocoa, coffee,
tea—that involved extensive investment and infrastructure. This investment has
to be facilitated now in most countries because the systems are no longer in
place for large-scale investment (add research on relative wealth/well being
farms with tree crops vs. without tree crops)
 ICRAF and other national and international institutions do not have the
resources or mandates to aid farmers’ groups directly but can provide models for
facilitation of enterprise development and market links.
 To encourage a diversity of tree crops, the demand for different tree products
at all levels has to be researched and widely disseminated. Diversification
strategies to buffer risk in systems heavily dependent on one tree crop (cocoa,
coffee) also have to be designed and disseminated.
 Markets are volatile and there are few sources of information on demand for
tree crops in Africa (add in also the trends toward liberalization of markets, focus
of market information on grains and food crops)
 Market information systems tend to be expensive, unavailable and not user-
friendly to small farmers and extensionists.
 Germplasm supply is a major problem for many species (national centers are
weak, private sector seed companies are weak in tree seed sector, decentralized
seed supply is just beginning to be conceived) hence seeds and nurseries would
be considered as enterprises and also as key components of tree crop markets
and enterprises


Market-Oriented Agroforestry Workshop in Kisumu 2002—21
 Smallholder tree crop production has advantages in flexibility over large
plantations where private sector comes in as investor, input supplier and
transporter rather than producer (example of Unilever in the Congo just went
under due to high costs of maintaining plantations, cocoa is a smallholder crop in
West Africa)
 Potential exists for value addition in many areas (fruit products, medicinals,
small-scale timber production, sustainable charcoal, peri-urban nurseries)

Getting to MIPTAS
We would conceive of MIPTAS as a joint initiative of ICRAF and RELMA, bringing
in other partners and investors after a pilot stage. In Kenya, KEFRI might also
be a partner and we should search for a solid private sector partner as well such
as Kenya Agricultural Commodities Exchange (KACE), Chamber of Commerce, or
Kenya Tree Crops Association (if such a thing exists)
We would start with a pilot extension product/forum in one region, taking the
following steps:
1. Identification of promising product or sub-sector through analysis of
    documents, key informant interviews and reports
2. Development of extension product by technical and media specialist(s)
3. Development of dissemination venues through local organizations
    (newspapers, schools, church organizations, etc.)
4. Forum for stakeholders in the product (private sector, farmers, extensionists,
    researchers working on product development, brokers)
5. Write up of lessons and concept for further funding




Market-Oriented Agroforestry Workshop in Kisumu 2002—22
Annex A: Participants and contact information

        1. James Wagacira Ndaiga                Kakamega.
           SISS                                 Tel: 033130534/Fax
           P.O. Box 266                            033130534
           Njoro.                               Email:ablh.wes@net2000
           Tel: 072-803094                         ke.com
           Email: sisske@yahoo.com
                                              8. Daniel Okore
         2. Jack Omondi Asetto                   Charcoal Merchant
            Project Assistant Forest             Luanda Deport
            Action Network                       P.O. Box 212 Luanda.
            P.O. Box380 Uhuru                    Tel: 035 51479
            Gardens Nairobi
            Tel:891035/350139                 9. Eshmael Kidiavai Logedi
            /072390865                           ICIPE/Mbita
            Fax: 891035                          P.O. Box 30
            Email: fan@fanworld.org              Mbita
                                                 Tel: 0385-22216/7/8
         3. Simon N. Munywe                      Fax: 0385-22190
            KEMA                                 Email:ekidiavai@mbita.mi
            P.O. Box 20445                          mcom.net
            Nairobi.
            Tel: 0733972719                  10. Albert Wesonga
            Email:hotsunny@clubinte              Kenya Agricultural
               cn-uk.com                         Commodity Exchange
                                                 P.O.Box 681
         4. James Oreke                          Bungoma
            Farmer                               Tel: 0337-30956
            P.O. Box 448 Ahero                   Fax: 0337-30957
                                                 Email:kalebgm@africaonli
         5. Eric Wamai Wanyonyi                     ne.co.ke
            Nzoia Sugar Company
            P.O. Box 285                     11. William Mureithi
            Bungoma                              Moi University
            Tel: 20741ext.267                    P.O. Box 1125
                                                 Eldoret, Kenya
         6. Paul Okongo                          Tel: 0321-63126
            ICRAF MASENO                         Fax: 0321-63257
            P.O. Box 34 Yala
            Tel: 0334-35088                  12. Joseph Aloo Agunda
                                                 CARE
                                                 P.O. Box 526 Homabay
                                                 Tel: 0385-22622
         7. Chris Webo                           Fax: 0385-22517
            Dev-Officer
            ABLH                             13. Patrick Muraguri
            P.O. Box 1499                        Technoserve


Market-Oriented Agroforestry Workshop in Kisumu 2002—23
           P.O. Box 14821                       ICRAF
           Nairobi                              P.O. Box 30677
           Tel: 445556                          Nairobi
           Fax: 440682                          Tel: 524230/524001
           Email:pmuraguri@techno               Email: a.njui@cgiar.org
              serve.or.ke
                                             20. Elizabeth Mwangi
        14. David Kiprono Tanui                  Post Graduate Student
            KVDA                                 Kenyatta University
            P.O. Box 2660                        P.O. Box 00100-170
            Eldoret                              Nairobi
            Tel: 0321-63361-4                    Tel: 072 323185
            Email: dkike@yahoo.com               Email:elizabeth7@avu.or
                                                    g
        15. Paul Keter
           Ministry of Agricuture            21. William Frost
           P.O. Box 60                           ICRAF
           Kapsabet.                             P.O. Box 30677
                                                 Nairobi.
        16. Joshua Otieno Odingo                 Tel: 524000
            HOMALINE CO LTD                      Fax: 524001
            Private Bag Koru                     Email: w.frost@cgiar.org
            Kisumu
            Tel: 0341-51064/65
            Fax: 0341-51419
            Email:homaline@africaonl         22. John Kimani
               ine.co.ke                         Project Officer
                                                 NALEP
        17. Eusebius Mukhwana                    P.O. Box 30028
            Juma, Director                       Nairobi.
            SACRED AFRICA                        Tel: 02-714867/721691
            P.O. Box 2275                        Fax: 02-714867
            Bungoma                              Email:nswcp@swiftkenya.
            Tel: 0337-30788                         com; pc@nalep.co.ke
            Fax: 0337-30818
            Email:sacred@africaonlin
               e.co.ke                       23. Fridah Mugo Wilumila
                                                 Thuiya Enterprisses Ltd
        18. Ndufa James Kamiri                   P.O. Box 00100 5200
            KEFRI                                Nairobi
            P.O. Box 5199                        Tel: 02-710203
            Kisumu.                              Email:+huiya@africaonlin
            Tel: 035-51164                          e.co.ke
            Fax: 035-51592
            Email:jndufa@africaonlin         24. Stephen Ruigu
               e.co.ke                           ICRAF
                                                 P.O. Box 25199
        19. Annah N. Njui                        Kisumu



Market-Oriented Agroforestry Workshop in Kisumu 2002—24
           Tel: 035-51163/4                     Email:ibaride@cybertech.
           Fax: 035-51592                         com
           Email:afresmaseno@afric
              aonline.co.ke                  30. Suasan Wairimu
                                                 Kenya NEEM
        25. George Mbinji Etindi                 P.O. Box 661
            KEFRI-Maseno                         Email:neemken@yahoo.c
            P.O. Box 5199                           om
            Kisumu.
            Tel: 035-51164                   31. Simon Wachara
                                                 Relief & Environmental
        26. Joseph Kurauka                       Care Africa
            Degree Fellow                        P.O. Box 86
            ICRAF PROG 1                         Kisumu
            P.O. Box 2375
            Meru
            Tel: 072-398332                  32. Josphat Yakhama Inganji
            Email: kathia@avu.org                Conservation of Forest
                                                 P.O. Box 38513
                                                 Karura Nairobi
        27. Qureish Noordin                      Tel: 02-210261
            Team leader
            ICRAF Western Kenya              33. Silas Msafiri Ndolo
            P.O. Box 5199                        Farmer
            Kisumu                               P.O. Box 32
            Tel: 035-51164/63                    Musalaba
            Email:q.noordin@africaon             C/O ICRAF Maseno.
               line.co.ke

                                             34. Kithinji Anony Mwongo
                                                 Herbalist
        28. Rosmin M. Sidi                       Kenya Neem
            Mugoya Vegetable Shop                P.O. Box 723
               Ltd                               Maua Meru.
            P.O. Box 20040                       Tel: 0733 816980
            Nairobi                              Email:NEEMKEN@YAHOO
            Tel:00152/605944/60494                  .COM
               9
            Fax: 609161                      35. Nelly Ngonyo Mwaura
            Email:muveg@todays.co.               Medicinal plant
               ke                                Women Group
                                                 P.O. Box 912 Kikuyu
        29. Ann Ibari                            Tel: 583270
            Kenya NEEM                           Email:nellienguyo@yahoo
            P.O. Box 51806                          .com
            Nairobi
            Tel: 0733-816980                 36. Suazo Jorge
                                                 VI-Agroforestry Project



Market-Oriented Agroforestry Workshop in Kisumu 2002—25
           P.O. Box 2006                        Kisumu
           Kitale                               Tel: 035-21181
           Tel: 0325-20139/30283                Fax: 035-21181
           Fax: 0325-31069                      Email:kisumu@africanow.
           Email:viafpk@africaonline               org
              .co.ke
                                             42. Rolin Nzozmo Mwiva
        37. Alice Kaudia                         LBDA
            KEFRI                                P.O. Box 1516
            P.O. Box20412                        Kisumu
            Nairobi                              Tel: 035-40285/45203
            Tel: 254-0154-32891/2                Fax: 035-45204
            Fax: 0154-32844
            Email: kefri@arcc.co.ke;         43. Benson Kingoo Mutwa
        akaudia@extremeusers.com                 Plan Kenya
                                                 P.O. Box 985
        38. David Warambo Odee                   Mombasa
            KEFRI                                O2-562593
            P.O. Box 20412                       Email:bmutwa@yahoo.co
            Nairobi                                 m
            Tel: 0154-33383
            Fax: 0154-32844
            Email:dodee@africaonline
               .co.ke
                                             44. David Mwangi Njuru
                                                 GTZ/PES
        39. Mr Omondi Okoyo                      P.O. Box 41607
            Catholic Relief Services             Nairobi
            P.O. Box 49675                       Tel: 02
            Nairobi.                                716990/0733761206
            Tel: 02-741355                       Fax: 02 718044
            Fax: 02 741356                       Email:mwanginjuru@ema
            Email:o.okoyo@crsnairobi                il.com
               .org;
               omondiokyo@hotmail.           45. Diane Russell
                  com                           ICRAF, Advancing Impact
                                                & innovation
        40. Juliet Omolo                        P.O. Box 30677
            MICSHG                              Nairobi Kenya
            P.O. Box 2287                       Email:d.russell@cgiar.org
            Kisumu
            Tel: 072 381304                  46. Steve Franzel
            Email:jromolo@yahoo.co               ICRAF Principal
               m                                    Economist
                                                 P.O. BOX 30677
        41. Doris Obara                          Nairobi
            Africa Now                           Tel 524001/524133
            P.O. Box 2514                        Email:s.franzel@cgiar.org



Market-Oriented Agroforestry Workshop in Kisumu 2002—26
                                                P.O. Box 30677
        47. Jens-Peter Lillesǿ, Seed            Nairobi.
            Supply Specialist                   Tel: 524000
            ICRAF                               Email: b.jama@cgiar.org
            P.O. BOX 30677
            Nairobi                          49. Joseph Lokaale
            Tel: 02-524000/524220                Project Officer
            Email: jpb@cgiar.org                 Africa Now
                                                 P.O. Box 2514 Kisumu
        48. Bashir Jama, Regional                Tel: 035-21181
            Coordinator                          Email:kisumu@africanow.
            ICRAF-ECA Region                        org




Market-Oriented Agroforestry Workshop in Kisumu 2002—27
Annex B: Evaluation highlights

What did you gain from the workshop?
NGO: It made me look at forestry from a commercial point of view. It opens
avenues on profit-making areas in forest industry in addition to social-ecological
contribution of the industries. Market opportunities motivate farmers to grow
trees more than anything else.

Private sector manager: Separate from woodfuel as a reason for coming to the
workshop, I have got markets for our various products!

Development worker: Procured seeds for our community groups from KEFRI,
hives from Africa Now, knowledge on tree farming as a business, networking
with different players

As a market information provider, I was able to know where the eucalyptus
seedlings are available and made and order for 50,000 for farmers in Bungoma.
Mugoya shop—sealed a deal to have farmers start delivering tomatoes,
watermelon, onions from Bungoma. This is wonderful.

Student: I got firsthand information from the various actors in production,
marketing, consumption sectors and close interaction with people who have a
common interest in solving market problems.

Wholesaler: Very very enterprising to all the nation—should be happy to attend
some more of the same.

Extension provider: Met people my organization desperately needed. Got useful
information, especially the clonal eucalyptus that would be easy to sell to all
categories of landowners.

Unknown: Information on various actors in agroforestry products—example,
linking farmers with consumers of wood products (Homalime), contracting
farmers for charcoal production. The presentation by Technoserve was eye-
opening.

Development worker: The information by Technoserve will be used by farmers
supported by Vi.

Researcher: Even agroforestry products I thought could not be sold or marketed
I have learned have value and can be marketed.
Researcher: I made business contacts with Technoserve, Africa Now and Vi-
Agroforestry project.



Market-Oriented Agroforestry Workshop in Kisumu 2002—28
Researcher: Met five people interested in nursery enterprise training; got ideas
for group formation and certification.

Private sector: Contacts for market information and enterprise development
training, product development.

Unknown: I learned a new dimension of agroforestry as a business rather than
environmental concern.

Farmer/nursery owner: I really gained from the marketing and to improve my
tree nursery. I have a contact with Africa Now to come and see my group on
bee keeping.

NGO: Sources of information on tree seeds and seedlings, marketing strategies,
especially KACE (an important contact—their idea of marketing should be
―propagated‖). I also learned that there are many people ready to save our
forests and trees from extinction.

How can we improve it?
 A review should be carried out to ―set the ball rolling‖—translate it into action
 Share the information with other stakeholders
 Make it a two-day workshop
 Presenters be given more time for preparation and presentation
 Need for involvement of parties mentioned such as police and government
  officials
 Follow up to be a must for success
 More case studies with real economics (i.e., gross margin of agroforestry
  products)
 More demonstrations of products/displays
 Implement the action plan; follow up recommendations
 Give more room for other modes of participation—such as including useful
  and easy to interpret information from other organizations that could not
  participate.
 Allocate more time to case study presentations: product plans, market chains,
  etc.
 Discuss marketing specific products and have an action plan for them
 Provide more time for discussion and invite policy-makers
 More time for group discussions
 Include food and horticultural crops as well as livestock—this is important for
  smallholder agriculture
 Have a field visit to a case study farm or to market-oriented firms
 The workshop should be conducted many times during the year in various
  regions
 Make all workshop materials available to participants


Market-Oriented Agroforestry Workshop in Kisumu 2002—29
   Involve more farmers
   Get a facilitator or two
   Ask private sector participants to persuade other private sector actors to
    attend the next workshop
   Group tasks need to be very clear to avoid floundering in group discussions
   Produce a brochure highlighting achievements of the workshop
   Helping those in need to start small-scale businesses and create jobs for
    many more, especially in the rural areas.




Market-Oriented Agroforestry Workshop in Kisumu 2002—30
Annex C: Presentations

1. Introduction—Dr Bashir Jama, ICRAF’s Regional Coordinator for
East and Central Africa

2. Market oriented agroforestry definitions and introduction—Diane
Russell and Steven Franzel, ICRAF

3. Market-oriented agroforestry in western Kenya: The NALEP
perspective by John Kimani, National Agriculture and Livestock
Extension Programme

4. Research at ICRAF/KARI/KEFRI/MoARD—Stephen Ruigu, ICRAF

5. Market-oriented research at KEFRI –Dr Alice Kaudia, David Odee,
and James Kamiri, Kenya Forest Research Institute

6. The Technoserve perspective—Patrick Murugari, Technoserve Kenya

7. Peri-urban nurseries as enterprises—Will Frost, ICRAF




Market-Oriented Agroforestry Workshop in Kisumu 2002—31
1. Introduction—Dr Bashir Jama




Market-Oriented Agroforestry Workshop in Kisumu 2002—32
2. Market oriented agroforestry definitions and introduction—Diane
Russell and Steven Franzel




Market-Oriented Agroforestry Workshop in Kisumu 2002—33
3. MARKET-ORIENTED AGROFORESTRY IN WESTERN KENYA:
THE NALEP PERSPECTIVE by John Kimani

INTRODUCTION
Agroforestry research has, until recently, concentrated on interaction of various
components at the production system level with limited insight into essential
linkages with post- harvest processing, marketing, and institutional arrangements
for enterprise development. The findings have, rarely been carried forward as
specifications for the design of appropriate tree planting interventions by the
development agents.

Tree planting programmes have often been formulated without being tailored to
meet the needs of the relevant user groups. Planning has, on occasions, not
been based on careful assessment of needs, constraints and tree planting
opportunities of the various groups especially where communities have not been
consulted on their perceptions of need by project planners.

The resultant tree species choices, and, recommendations have often been not
the best bets, due to: inappropriate function, market orientation, land
requirement, labour/skill requirement, Capital requirement, among others.
Eventually tree-planting efforts miss tree user differentiation, tending to promote
tree planting, as if all trees were the same. A good example is the ―energy
crisis‖ bandwagon where it is assumed that tree planting for fuel wood supply is
the highest priority whereas the reality is that fuel wood is rarely rural peoples’
first priority but are rather motivated by the prospect of fruit, fodder, medicine or
poles for cash (Raintree, 1991).

Recent trends have convincingly demonstrated that for beneficiaries of tree
planting to realize full benefits, it is crucial to transcend the narrow focus on
primary production systems to discover and develop the full range of secondary
processing, marketing, extension support and other infrastructural arrangements
which are prerequisite to rural development. However, numerous constraints
and, challenges face exploitation of the tree and forest products for meaningful
entrepreneurial development.

CONSTRAINTS IN THE MARKETING OF TREE AND FOREST PRODUCTS
The common tendency is for producers to sell rather than to market the
products. This makes the goal for the communities and households to retain a
larger proportion of the income generated by these products elusive. The task
is, therefore, for producers and those involved in assisting market development
for the products to transform the current process from selling to marketing at
community level.



Market-Oriented Agroforestry Workshop in Kisumu 2002—34
There are numerous hurdles to be overcome if this transformation will be
achievable. These include:
 Small quantities/ many producers-this depresses the price received from the
   middlemen, eventually lowering total income generated.
 Monopsony –one primary buyer who is also the price maker can lead to a
   decline in production or quality of the product. The lack of competition
   encourages poor service.
 Services by middleman-Distorted perception of the role of middleman due to
   lack of information on the marketing channel leads to their exclusion without
   their services (cash advances, transport, storage) being assumed by other
   agencies.
 Information-Inadequate information on existing marketing channels, amount
   of each product, current product price, future supply and demand, processed
   product development, and future price projections.
 Policy and regulations-Policies especially restrictive controls may hamper the
   producer’s right to make decisions on what to produce. Decision-making in
   response to market forces (supply and demand) is a fundamental
   requirement for an efficient market system.

EFFICIENT, EQUITABLE MARKET SYSTEMS
To develop efficient, marketing systems that will provide greater benefits to the
community, the following are needed:
    Good infrastructure- roads, railways, telephones, market places, storage,
      handling depots and processing plants.
    Good market information-Government agencies and other service
      providers can assist in collecting, analyzing and availing the market
      information to producers
    Removal of regulations- Government agencies should not play the role of
      regulator of collections, prices, transport, and handling of tree and forest
      products.
    Competition-fair competition among players results in better prices and
      services
    Market analysis-Information on each product’s from producer to consumer
      should be availed to those involved in developing the market system

MARKET SYSTEMS ANALYSIS AND DEVELOPMENT
 One of the processes of development of the market systems is the Market
Systems Analysis and Development (MSA&D). The primary objective is to identify
products and to develop markets that provide income (benefits) to households
without degrading the resource base.
The process focuses on:
      Evaluating the performance of the existing market system




Market-Oriented Agroforestry Workshop in Kisumu 2002—35
      Identifying potential interventions (e.g., removing policy constraints,
       identifying new products, new markets, improving market information
       etc.) to improve the existing market system.
      Identifying constraints in the system and interventions envisaged.
      Identifying new products and/or new markets.

The process final objective is to identify a product and develop a marketing
strategy through integration of the following areas:
                    Economy/Market,
                    Ecology/Environment,
                    Science/Technology
                    Social/Institutional

These areas must support the development of the new products or new markets.
There must be an existing or potential market, sustainable harvesting or
production, and policy that supports the viability of the products. A major
emphasis of the MSA&D process should be on sustainable resource management
of tree and tree products as well as information on constraints and potentials of
products and markets (for details, see MSA&D: An Approach to Planning
Sustainable Tree and Forest Product Enterprises. Participants Handbook.
RECOFTC, 1997)

NATIONAL AGRICULTURE AND LIVESTOCK EXTENSION PROJECT’S
(NALEP) PERSPECTIVE
Agroforestry extension has been spearheaded by National Soil and Water
Conservation Programme within Soil and water Conservation Branch of the
Ministry of Agriculture and Rural Development until 2000, when, a broader
NALEP came into being. NALEP’s approach is shifting focal area with
Agroforestry as one of the seventeen technical fields of emphasis
NALEP has sought to strengthen, among others:
     Participatory approaches in all spheres of development,
     Pluralism in extension service provision,
     Sustainable utilization of the natural resource base,
     Empowerment of communities to charter own course of development,
     Focus on improvement of livelihoods and poverty reduction.

Some of the   concepts being tried and fine-tuned to achieve these include:
              Participative formulation of Farm Business Plans (FBPs),
              Promotion of Opportunities (PoOs) to catalyze development,
              Use of Common Interest Groups (CIGs) as entry points.

In Agroforestry extension and development, NALEP recognizes that there is no
substitute for local experience, and, acknowledges the decision-making
sovereignty of land-users who mostly need assistance to make informed choices.


Market-Oriented Agroforestry Workshop in Kisumu 2002—36
Agroforestry surveys have been institutionalized as integral components of the
mandatory, Participatory Rural Appraisals (PRAs) that serve as launching fora for
implementation work in the focal areas.

 FUTURE OF MARKET-ORIENTED AGROFORESTRY IN WESTERN KENYA
There will be need to further improve Agroforestry surveys to ensure that
matching of technologies to users, and trees to technologies, to eventually come
up with designs that minimize conflicts and accentuate complementarities.

There will be need to infuse the process of market systems analysis/development
in order to streamline markets for existing products and support the
development of new products/markets.

More focused efforts will be made to further develop the existing and potential
markets, sustainable production/harvesting and policy that supports the viability
of the products.

Thorough consultations will be encouraged, and sustained collaboration with all
players will be nurtured to strengthen links along the products market channels.
NALEP will offer extension support and establishment of bridges among players
to ensure harmony and synergy.

REFERENCES
JOHN B. RAINTREE (1991):Socioeconomic Attributes of Trees and Tree
Planting Practices. Community forestry note No.9.FAO, Rome.

REGIONAL COMMUNITY FORESTRY TRAINING CENTRE, BANGKOK, (1997).
Market Systems Analysis and Development: An Approach to Planning Sustainable
Tree and Forest Product Enterprises. Participants Handbook.




Market-Oriented Agroforestry Workshop in Kisumu 2002—37
4. Research at ICRAF/KARI/KEFRI/MoARD—Stephen Ruigu




Market-Oriented Agroforestry Workshop in Kisumu 2002—38
5. Market-oriented research at KEFRI –Dr Alice Kaudia, David Odee
and James Kamiri




Market-Oriented Agroforestry Workshop in Kisumu 2002—39
6. The Technoserve perspective—Patrick Murugari




Market-Oriented Agroforestry Workshop in Kisumu 2002—40
7. Peri-Urban Nurseries as Enterprises—Will Frost




Market-Oriented Agroforestry Workshop in Kisumu 2002—41

				
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