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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY Powered By Docstoc
					                    REPUBLIC OF KENYA



               MINISTRY OF AGRICULTURE

           SMALL HOLDER HORTICULTURE MARKETING
                               PROGRAMME.

                                   SHoMaP

                            DRAFT REPORT

                        VALUE CHAIN STUDY
                                         ON
                 POTATO, CABBAGE AND GARDEN PEA




                        NYANDARUA NORTH DISTRICT
                                                            April 2010


    Prepared by:-

    Capital Guardians

    P.O. Box 26446-00504 Nairobi
    Tel: +254 020-559127, Cell: 0720- 317176, 0720-426845
    Email: cugurdians@yahoo.om




1
TABLES OF CONTENTS

LIST OF TABLES ............................................................................................................................................................. 3

ACKNOWLEDGEMENT .............................................................................................................................................. 6

EXECUTIVE SUMMARY .............................................................................................................................................. 7

INTRODUCTION AND BACKGROUND ............................................................................................................. 16

1.1          Introduction ..................................................................................................................................... 16

1.2 SHoMaP Program .................................................................................................................................. 16

1.3 Study Objective ...................................................................................................................................... 17

1.4 Specific Tasks ......................................................................................................................................... 18

2.1 Approach ............................................................................................................................................... 20

2.2 Methodology .......................................................................................................................................... 20

2.3 Limitations ............................................................................................................................................. 21

3.0 SELECTION OF TARGET VALUE CHAIN CROPS .................................................................................... 23

3.1 Overview of the Study Area.................................................................................................................... 23

3.2 Review of Horticulture production in Nyandarua District....................................................................... 23

4.0 VALUE CHAIN ANALYSIS ............................................................................................................................... 27

4.1 Potato Value Chain................................................................................................................................. 27

4.2: The Cabbage Value Chain...................................................................................................................... 63

4.3 Garden Peas ........................................................................................................................................... 84

APPENDIXII: LIST OF MARKETS FOR UPGRADING/REHABILITATION AND
DEVELOPMENT ......................................................................................................................................................... 113

Division ............................................................................................................................................................................ 113

APPENDIX IV: FARMERS GROUPS AND THEIR CHALLENGES ........................................................... 114

APPENDIX V: INVENTORY OF INPUT SUPPLIERS/STOCKISTS IN NYANDARUA NORTH ..... 116

APENDIX VI: LIST OF PARTICIPANTS ............................................................................................................. 116




2
LIST OF TABLES
Table 4: Weighting ResultsERROR!                               BOOKMARK                        NOT             DEFINED.ERROR!
    BOOKMARK NOT DEFINED.
Table 5 Ranking Results ........................................................................................................ 26
Table 7: Name Of Dealer/Stockists Per Division ................................................................... 35
Table 8: Main Actors In Potato Seed Production. ................................................................. 35
Table 11: Actors In Potato Production Chain ....................................................................... 42
Table 12: Constraints In The Potato Production Chain And Recommended Interventions ... 45
Table 13: Actors And Their Roles In The Potato Marketing Chain ..................................... 48
Table 14: Farm Level Marketing Activities........................................................................... 49
Table 15: Summary Of Constraints Per Chain Link And Recommended Interventions ....... 55
Table 16 -Value Share Of Actors In The Marketing Chain .................................................... 57
Table 17: Summary Of The Major Public Stakeholders In The Value Chain ........................ 58
Table 18: Summary Of Constraint Per Link Of The Chain And Recommended Interventions
    ......................................................................................................................................... 62
Table 19: Main Actors In The Input Supply In The Cabbage Subsector ................................ 67
Table 20: Summary Constraints In Input Supply And Recommended Interventions ........... 68
Table 21: Cabbage Production In Nyandarua (2005-2008) Tons .......................................... 69
Table 22: Major Actors In Cabbage Production Chain .......................................................... 71
Table 23: Constraints And Recommended Interventions ....................................................... 72
Table 24: Actors And Their Roles In The Cabbage Marketing Chain ................................. 74
Table 25: Constraints And Recommended Interventions ....................................................... 79
Table 26 : Value Share Of Actors In The Marketing Chain ................................................... 81
Table 27 : Summary Of The Major Public Stakeholders In The Value Chain ....................... 82
Table 28: Summary Of The Major Constraints And Recommended Interventions .............. 83
Table 29: Actors In The Input Supply Chain .......................................................................... 88
Table 30: Constraints In Input Supply And Recommended Interventions ............................ 89
Table 31: Garden Peas Production In Nyandarua (2004-2008) Tons ..................................... 91
Table 32: Actors In The Input Supply Chain .......................................................................... 92
Table 33: Key Constraints In Production Chain ..................................................................... 93
Table 34: Actors And Their Roles In The Garden Peas Marketing Chain ........................... 95
Table 35 : Constraints And Recommended Interventions ...................................................... 97
Table 36: Value Share Of Actors In The Marketing Chain .................................................... 99
Table 19: Farmer’s Organization Constraints Analysis ........................................................ 103
Table 37: Summary Of The Major Public Stakeholders In The Value Chain ........................ 99
Table 38: The Major Constraints And Recommended Interventions ................................... 101
Table 39: Proposed District Action Plan .............................................................................. 108




3
LIST OF FIGURES

Figure 1: Area Under Horticulture Production In Nyandarua ................................................ 23
Figure 2: Production In Nyandarua District 2002-2008 (Tons) ................................................. 23
Figure 3: The Potato Value Chain Map .................................................................................. 27
Figure 4 Potato Seed Production System In Kenya. ............................................................... 33
Figure 5: Potato Seed Production 2006-2009 ......................................................................... 34
Figure 6: Potato Production Trend In Nyandarua District (2004-2008 .................................. 39
Figure 7: Area Under Potato Production Trend In Nyandarua N District,0- .......................... 39
Figure 8: Market Prices Of 110 Kg Potato Bag ......................................................................... 40
Figure 9: Potato Marketing Channels In Nyandarua District ................................................. 56
Figure 10; Cabbage ................................................................................................................. 63
Figure 11: Cabbage Value Chain ......................................................................................... 64
Figure12 Cabbage Production Trends In Nyandarua District ................................................... 68
Figure 14: Marketing Channels For Cabbages In Nyandarua District .................................. 77
Figure 15: The Garden Peas Value Chain Map ...................................................................... 85
Figure 16: Garden Peas Marketing Channel ........................................................................... 96




4
ACRONYMS



ADC        Agricultural Development Corporation
ATC        Agricultural Training Center
CAN        Calcium Ammonium Nitrate
CIGs       Common Interest Groups
CIP        International Potato Center
CS         Certified Seed
DAO        District Agricultural Officer
DAP        Diamonium Phosphate
FADC       Focal Area Development Committee
FGD        Focus Group Discussion
FPEAK      Fresh Produce Exporters Association of Kenya
FSS        Farmer Saved Seed
GDP        Gross Domestic Product
GMA        Gross Margin Analysis
HCDA       Horticultural Crops Development Authority
IFAD       International Fund for Agricultural Development
KACE       Kenya Agricultural Commodity Exchange
KARI       Kenya Agricultural Research Institute
KENFAP     Kenya National Farmers Producers Association
KEPHIS     Kenya Plant Health Inspectorate Service
KES        Kenya Shilling
KFA        Kenya Farmers Association
MoA        Ministry of Agriculture
NALEP      National Agricultural and Livestock Extension Programme
NGO        Non Governmental Organization
NSQCS      National Standards Quality Control Service
PCB        Pest Control Board
PMG        Producer Marketing Group
SACCO      Savings and Credit Cooperative Organization
SHoMaP     Smallholder Horticultural Marketing Programme
USAID-EU   United Sates Agency for International Development-European Union
VCA        Value Chain Analysis




5
ACKNOWLEDGEMENT


We wish to sincerely thank everyone who contributed in the provision of crucial data and information
and the preparation of this report.

While it is not possible to mention everybody who contributed to this study by name, we would like, in
particular, to thank Ms W. Karanja, the DAO, and staff Nyandarua North District and the District
Stakeholders who in every way provided relevant information for this study without whose cooperation
and support this task would have not been completed satisfactorily. We also wish to thank SHoMaP
Project Manager Mr S. Mbogo and management staff for their support and the Lead Consultant,
Emerson Zhou, for their valuable input to the study. Finally we also wish to thank the team of
consultants from Capital Guardians for their dedication in preparation of the study.

The opinions expressed in this report, however, are purely those of the authors and are based on
observations and findings during the study.

Joshua Ogola ( Team Leader)

George Odette

Nick Ondego




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EXECUTIVE SUMMARY

 This report presents the findings of the Value Chain Analysis (VCA) study on Irish Potato, Cabbage and
 Garden Pea conducted in Nyandarua North District.. The value chain study was commissioned by
 SHoMaP program and targeted support to small scale farmers (SSF) to improve their incomes and
 livelihoods. The program is supported by IFAD and is being implemented by the Ministry of
 Agriculture in collaboration with other line ministries.


 The VC study focused on the general description and mapping of the target commodity value chains,
 performance, the identification of key players, actors, constraints and barriers limiting farmers‟ access
 to markets and effective integration into the value chain The study explored the needs for small scale
 producers‟ skills platform, roles, challenges and chain relationships with different actors along the chain
 including the input suppliers, market traders, transporters, small scale processors and service providers.
 Recommendations for interventions were provided at every stage of the value chain.


Overall Objectives
The overall scope of the assignment was to carry out value chain study of 3 target horticultural
commodities in Nyandarua district and propose Investment priorities for the identified VC commodities
and recommendations for interventions.

The specific objectives of the VCA study were threefold:

       Identify 3 horticulture value chain commodities that have the greatest potential to serve as a
        vehicle for poverty reduction and source of livelihood for a majority of smallholder farmers
        within the target areas.

       Form the foundation for identifying and review of the desired market interventions, training
        needs, demand driven market infrastructure investments and evaluating requests for Programme
        support

       Identify emerging marketing trends, constraints that are inhibiting market development and
        opportunities for supporting initiatives of local communities, farmers groups, traders, and other
        value-chain participants and develop an action plan for the target district




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Methodology
The study entailed literature review on all aspects of horticulture production and market value chain
activities in the district, and field data and information collection. The primary data and information
served as the main framework for analysis while secondary information provided valuable inputs into the
understanding the study.


The identification and mapping of the value chain commodities was done through a review of listing of
all potential horticultural crops grown in the Nyandarua North district. The Value Chain commodities
were then selected through weighting and ranking based on five criteria agreed on by consensus, namely;
profitability of the VC commodity, existence of a good and growing market, the number of potential
beneficiaries involved in the production of the commodity, existence of value chain leadership, and the
investment requirement at entry.


Weighting of the commodities was done by giving a percentage weight on a scale of 0 to 100 percent for
each of the criteria. A Likert scale of 1 to 5 was then employed (with 5 = the best case scenario, and 1 =
the worst case scenario) to rank the selected target commodities. And based on these criteria the 3 most
potential commodities, the Irish Potato, Cabbage and Garden Pea were selected for in-depth value chain
analysis


Primary data was collected through a participatory approach using focus group discussions and interviews
with a cross-section of district and industry stakeholders which included farmers‟ representatives, input
suppliers, processors, traders and service providers. Semi structured questionnaires were used to collect
data and information from the various actors in the three (3) target commodity value chains in the project
area. The Ministry of Agriculture staff at the district, other line ministries and district stakeholders
participated in the selection and discussion processes


Study Findings

Study Area

The study established that Nyandarua North district is one of the major horticulture producing areas in
the country with over 44,000 farm families engaged in various horticulture enterprises and agricultural
activities. Extensively, over ten different horticultural commodities including Irish potato, Cabbages,
Garden Peas, Onions, Carrots, Tomatoes, Snow peas, Spinach and Kales are grown in the district. Maize,
wheat and dairy keeping are also major economic enterprises in the area. A number of fruits are also
grown. Given resource base and favorable ecological conditions, the district has the potential and
capacity to expand area and volume of horticultural production in the future.

General Observations


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In terms of support services and enabling environment, the study noted that farmers in the target
commodity value chains have received adequate but insufficient extension services and technical training
that are required to facilitate their operations efficiently. However, farmers and traders were not
organized in any way to improve and mitigate on their risks in the value chain. Producers and traders
would be better off working together when they can progress to improve institutional issues and business
relations in their respective value chains.


The current level of infrastructure and institutional developments in the producing areas in the district is
equally insufficient to unlock the agricultural potential of the small scale farmers and propel their growth.
It was observed that farmers and traders operate in information –poor environment, and of uncertainty
and high costs.


In particular, the study pointed at the poor access roads, physical markets, market information, technical
skills   and      lack of farmers groups, which were not commodity VC specific, as major constraints
affecting development of the target commodity value chains across board. This underpinned the
reemergence of certain VC specific recommendations and interventions.


VALUE CHAIN ANALYSIS

Potato Value Chain
Potato Production
Potato is an important food crop, after Maize, in Kenya. Nyandarua district is one of the major potato
growing districts in Central Province with about 10,000 Small Scale farmers (SSF) estimated to be
engaged in production of the crop. The crop is grown largely by small scale farmers with average holding
of between .O.25 and 2 ha. At the time of study, the average yield of potato in Nyandarua district was 7-8
tons /ha which is well below the national average yield of 15-20 tons /ha.

The study established that the majority of the SSF lack sufficient technical skills and capacity to
improve their economic productivity and to effectively integrate in the production chain. This was
manifested in poor crop husbandry and low produce quality, emphatically suggesting the need to enhance
technical training and capacity building of farmers in production and agribusiness development.
Potato Seed Supply
The study found out that the inadequate availability and high cost of certified potato seeds was a major
constraint leading to less use of clean potato seeds and low productivity. The seed supply is the weakest
link in the production chain. KARI is the major source of basic potato seed but its capacity is constrained
by its mandate of carrying out both research and seed development. There was no large private sector
investor in potato seed production, and only a few farmer groups were identified to be involved in seed
multiplication. Own supply and/ or recycling of seed still remain the most important source of potato
seed in the district. This coupled with low use of fertilizers due to high cost and lack of appreciation by
farmers of its contribution to enhancing yields has lead to low economic productivity of the commodity.
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Sub-sector Actors and Channels
The main Actors in the potato subsector are input suppliers, farmers, market traders, processors and
consumers. At the production level it was noted that farmers are still operating at less than optimal level
of economic productivity due to small farm sizes and poor technical skills on their part.

Marketing Channels

The study indicated that the potato marketing system is dominated by a large number of intermediaries,
including brokers/middlemen controlling up to 80% of potato sold in the local markets, wholesalers
an retailers. Approximately 10% of the production is consumed on farm while another 10% was
attributed to post harvest losses.

At the market level traders reported poor physical market infrastructure and multiple taxation by the
Local Authorities as some of the       major constraints affecting trading environment. The study also
established poor access roads, and inadequate access to marketing support services as other constraints in
affecting viability of potato marketing. The lack of enforcement on the use of standard bag has opened
avenue for continued use of “extended bag” which denies producers their fair share of the revenue as the
standard bag of potato is sold at the same price as the “extended bag” of potato with no reference to
weight. This noted this could be attributed to policy weakness and poor coordination in the subsector.

Institutional Development

In terms of support services, the MoA was the primary institution providing basic extension services.
This was complimented by other public and private sector institutions and organizations. However,
inspire of being an important food crop, there was no national potato policy that would govern its
production and marketing. Enhancing provision of support services by the MoA in collaboration with
the private sector organizations would increase farmer‟s productivity and their potential to effectively
integrate and maximize on the value chain.

In addition, the absence of a strong and efficient farmer‟s organization to cater for the producers‟ interest
and procurement of inputs and other services was a major weakness that impact on production and
marketing of the commodity. However, there exists the Kenya National Potato Farmers‟ Association
(KENAPOFA), whose presence is not effective in the project area. It is important to strengthen
KENAPOFA to facilitate value chain leadership in the market value chain.

Subsector Constraints and Opportunities

Besides the inadequate availability of Potato seed, the other major constraints hampering the
development of the potato subsector were identified           as lack of access to credit, high cost of
agrochemicals, pest and diseases infestation, and limited access to market information.



10
Limited processing was observed being undertaken in the Potato sub sector in the district. However,
opportunities avail for product diversification and increased value addition and processing into potato
chips, French fries, crisps, granules and potato flour. There is good market demand for processed potato
products particularly in the urban areas. Opportunities also avail for increased production through
increased use of certified seeds,     expanded extension services through enlisting community extension
workers and up scaling production practices. There is enormous potential for commercial seed
production through support to farmers‟ groups‟ seed multipliers.


Major Recommendations
In order to systemically address the constraints in the Potato subsector, a number of interventions are
needed to unlock the potential of the subsector in Nyandarua North district. These include:

        Collaboration    with    KARI         and       private   sector   organizations   to   promote   the
         propagation/multiplication and distribution of certified high yielding        potato seeds to farmers,
         up scaling extension services and strengthening of the existing FGs in seed multiplication as well
         as establishing seed quality control system..

        Enhance training and capacity building of farmers on crop production and post harvest
         management in order to foster diffusion of agricultural technologies, increase productivity, value
         addition and agribusiness development.
        Improve access roads and market infrastructures to ease access to markets and create better
         environmental sanitation
        Support small scale pilot processing initiatives in selected divisions in the district and train small
         scale processors to improve their technical skills in value addition.


Cabbage Value Chain
Cabbage Production
Cabbage production in Nyandarua North district is highly seasonal. This coupled with the lack of farm
storage facilities has led to high post harvest losses and price instability in the market. The crop is grown
by small scale farmers mainly for subsistence with little commercial orientation. Poor crop husbandry
among farmers and perish ability are generally blamed for the poor quality of produce.


Farmers reported average yield of cabbage at 10 bags /ha which is well below the expected national
average yield potential of 15 tons /ha. The high incidence of Pests and diseases was reported as the main
cause adversely affecting yields and productivity. The study established that the majority of the SSF
cannot improve their economic productivity due to small farm sizes and poor agronomic management
and lack of farmers‟ organization suggesting the need to enhance their technical capacity to intensify
production, and provide training on entrepreneurial skills and organizational development.



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Input Supply
The high cost of improved seed and fertilizer was a major constraint in the sub sector leading to limited
use of these inputs. The study established that the small stockist lack capital and technical skills to
adequately stock inputs and appropriately advice farmers on the appropriate use and safe application of
agrochemicals. Besides high cost, the prevalence of counterfeit agrochemicals was also growing concern
among farmers requiring urgent attention to protect farmers from further loss in productivity and low
returns

Subsector Actors and Channels

The primary actors in the cabbage value chain were input suppliers, producers and market traders. The
study showed that the linkage between these actors is still weak and uncoordinated as each actor operates
in an isolated environment. Farmers sell their produce either directly to the markets or to middlemen.
Due to inadequate skills and their small sizes, farmers cannot produce economical marketable quantities
to earn good returns.

Marketing Channels

Cabbage is a highly perishable vegetable that should be marketed immediately after harvest. The
commodity is marketed mainly through brokers and rural traders. The study found out that about 80% of
total production is sold directly in the local wholesale and retail markets, 10% is used for home
consumption and another 10% is attributed to postharvest losses. Owing to seasonality and perisability,
price fluctuations is a common characteristic leading to low returns to farmers. The traders dominate the
channel and dictated final prices. There was little produce standards/grading to differentiate produce
with quality and price.

There was no processing observed being undertaken in the cabbage sub-sector in the district, although
opportunities exist in dehydrated cabbages and packaging for longer shelf-life

Gross Margin

With an average gross margin above Sh. 21,760/= per acre, cabbage production is rated as a viable
enterprise in the district. This margin, however, depending on market prices and seasonality, could be
higher with grading and availability of storage facilities

Institutional Development

The organizational development in the sub sector is poor. There were few farmers groups and no
specialized traders association working in the sub sector. The main activities of the farmers groups
involved production collection and marketing. However their activities were constrained by their lack of
organization, inadequate technical skills, poor physical infrastructure, lack of information and limited
access to markets.


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Sub sector Constraints and Opportunities

The most constraints specific to production and marketing were identified as related to
the high cost of farm inputs including agrochemicals; poor market infrastructure, price
fluctuations and lack of market information which all combined have limited
improvement in productivity. Due to poor basic access roads infrastructure some
farmers in the producing areas cannot linked to wholesale markets. In addition, the poor
roads, especially during rainy seasons leads to deterioration of produce quality during
transportation and high transport cost. This also results reduction of the real time
delivery to markets. The farmers have little access to market information and lacked
market outlets and incurred high post harvest losses owing to perishability and lack of
storage facilities.

Major Recommendations

In-order to support the development of the sub sector it is necessary for the project to:

        Support development of physical infrastructures in the producing areas to facilitate production
         and market access

        Facilitate the formation of farmers groups and promote supportive market institutions such as
         setting of grades and standards and establishing storage facilities to enable farmers manage price
         risks. The project should also strengthening delivery and dissemination of market information .

        Support training and capacity building of farmers and farmer groups on crop production;
         produce quality and grading, enterprise planning and post harvest handling.

Garden Peas

Production

This is a high value commodity in the project area, which is not produced as a pure stand crop, but
mostly intercropped, with maize in the field. Production is still characterized by low volumes and poor
quality of produce as the crop is grown largely for domestic use. With increased adoption and
appreciation of the high yielding and high value potentials of the crop and a growing demand,
commercial production is achievable.




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Input supply

The main input for Garden Pea production is seed. The crop requires little use of nitrogenous fertilizer
and other agrochemicals. The high cost of improved seed, however, was a major constraint leading to
limited use of this input.

Sub sector Actors and Channels

Garden Pea is marketed mainly in the local rural and urban markets. The main intermediaries in the
marketing chain were the brokers and the retailers. Due to the small quantities produced, there was
insignificant wholesale marketing of the crop noted in the project area. As a high value commodity, the
supper markets offered opportunities for farmers, but because of quality standards few farmers are able
to supply this market segment as they cannot meet market standards.

Marketing Channels

The crop is marketed in both unshelled and shelled forms. On the supply side of the market chain, the
brokers control the marketing function since they are able to consolidate marketable volumes from the
different farms and transport the produce to the market for further sale. Retailing, however, is the most
vibrant segment of the marketing chain. The study revealed that about 10 % of the produce( including
post harvest losses) is used for home consumption, 80% is sold directly to the market and another 10%
is sold through middlemen and the travelling trader who sell to local markets in the district.

Gross Margin

As an enterprise, production and trade in the commodity is commercially viable. Farmers will earn an
average gross margin of more than KES 20832/= per acre depending on the yield levels and market
price. Traders‟ average gross margin per bag was KES 265/= per bag but also depending on the market
price, could be higher.

Institutional Development:.

There were no farmers groups observed to be involved in the production of the commodity in the
district. However, there was some small scale processing of the crop being undertaken by farmers‟ group
in the district notable by Mawingu Fresh Growers and Kaage SHG. As a result of being an intercropped
commodity, extension services are lost in the main crop the field.

Sub sector Constraints and Opportunities

The main constraints hampering the development of the crop in the district were identified as high price
of inputs, lack of grading, low consumption levels, and lack of awareness about the crop as a viable
commercial enterprise. High transport cost due to poor road network and small uneconomical quantities
also adversely impact on production and marketing efficiency and this may hamper the realization of
future development of the crop. The small scale farmers in the district would require assistance and
14
support from the program for them to be able to organize into groups and coordinate their actions to
optimize production and their participation in the chain.

The crop has a niche market among the upper income consumers in major urban towns country-wide
wide. Opportunities exist to add value through grading, threshing and packaging for local market in the
groceries and super markets. With growing urban population and rising incomes supper markets offer the
most observable market outlets and growth segment, provided quality and standards can be promoted
and sustained.

Major Recommendations

Commercial production of the crop can be increased substantially if the crop consumption is stimulated.
This can be achieved through awareness creation on the nutritional value of the crop and market research
to assess the market demand. The project can play a meaningful role in the development of the sub
sector in the district by:

      Being complementary to existing supporting programs like SHEP and NALEP in the area to
       providing support in production development particularly with regard to provision of extension
       services and training of farmers
      Promoting consumption of peas through awareness campaigns of its nutritional value and market
       opportunities.
      Promote commercial production as a high yielding income crop
      Transforming the existing supply chain arrangements into a sustainable value chain with a value
       chain leader




15
INTRODUCTION AND BACKGROUND

1.1 Introduction

The Agricultural industry is a major player in the Kenyan economy contributing about 26% of the Gross
Domestic Product (GDP) and a further 27% through linkages with manufacturing, distribution and
service-related sectors. About 80% of the population live in rural areas and thrive on it. The Government
of Kenya has put in place a Strategy for Revitalizing Agriculture, 2004 –2014, and the Kenya Vision 2030
with the aim of improving the economic development and reducing poverty. In agriculture, crop
production is often categorized into food crops, industrial crops and horticultural crops. As a sector in
the Agricultural industry, horticulture has emerged as a trail blazer in setting pace for employment
creation, increasing income of smallholder farmers, and increased food security , particularly in the rural
areas in the country.

1.1.1 Horticultural Sub-Sector

The Horticultural Sector comprises of fruits, flowers, vegetables, spices and herbs. The majority of
horticultural crops producers are small-scale (below 10 acres) farmers who contribute about 50- 60% of
the total production), while Large-scale (above20 acres) growers dominate the commercial production.
The sub-sector has continued to register increasing growth over the last five years with an average growth
rate of 12% and contributes 13% of GDP. It is a large foreign Exchange earner, second to tourism and
employs close to two and half (2.5) million people in both formal and informal sectors. The sub-sector is
an important avenue for wealth and jobs in rural areas.

1.2 SHoMaP Program

The Small Holder Horticultural marketing Program (SHoMaP) is an initiative supported by IFAD which
aims to address the inefficiencies and constraints in horticultural marketing through improvements in the
horticultural marketing system, infrastructural development, institutional strengthening and investments
in domestic horticulture value chains. The Programme aims to address inefficiencies and constraints in
input supply and horticultural marketing with the aim of (a) reducing farm unit cost of inputs, (b)
improving the quality of inputs and the services that input suppliers provide to smallholders, (c) raising
the quality of horticultural produce traded in the domestic market, and (d) increasing and stabilizing farm-
gate prices. The program is being implemented by the Ministry of Agriculture in collaboration with other
line ministries.




16
1.2.1 Programme Goals

The development goals of SHoMaP are to: (a) increase incomes and reduce poverty among poor rural
households in medium-high potential farming areas for which horticulture is a source of livelihood; and
(b) increase the health and welfare of Kenyans by improving the quality and increasing the quantity of
horticultural produce consumed within the country.



1.2.2 Programme Purpose


The Programme purposes will be pursued to achieve these goals, that is, to increase: (a) the output of and
(b) the net margins per unit of land earned by resource-poor smallholders from horticultural production
for the domestic market; (c) employment opportunities in the production, processing and marketing of
horticultural produce, and; (d) to reduce the cost to consumers.

1.2.3 Target Population


The main beneficiaries of the Programme are smallholders producing horticultural crops for the domestic
market, rural unemployed and underemployed men and women, and domestic consumers of horticultural
produce.




1.3 Study Objective


The overall objective of the VCA study was to identify 3 value chain commodities, emerging marketing
trends, constraints that are inhibiting market development and opportunities for supporting initiatives of
local communities, informal and formal groups of farmers, traders, and other value-chain participants and
to develop the programme intervention activities and action plans for the target district. This will form
the foundation for identifying and review of the desired market interventions, training needs, potential
demand driven market infrastructure investments, evaluating requests for Programme support, and
providing support to increase the efficiency of natural market evolution that has positive impact on
domestic horticulture sub-sector. Finally, VCA was to identify horticulture value chains within the target
district that have the greatest potential to serve as a vehicle for poverty reduction and source of livelihood
for a majority of smallholder farmers within the target areas.




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1.4 Specific Tasks
1    Facilitate a stakeholder driven process to select up to three domestic horticulture value chains for
     each of the programme target districts. Target crops are to be selected on the basis of a criteria
     consistent with the programme objectives of contributing to increases in smallholder farmer incomes

2    Map the market channels for each selected value chain, identify the value chain processes that the
     commodity passes from the producer to the final consumer (product development - processing,
     value adding, product handling and marketing, pricing, price formation, and causes of price
     instability; and all primary and secondary actors (producers, producer associations, brokers, traders
     etc) within each selected value chain, their roles and interrelationships in the input and output
     market.

3    Examine the level of organization of farmers within the selected value chains, identify constraints to
     increased organization and make recommendations on intervention activities necessary to improve
     their increased access to inputs and output markets

4    Analyze activities of market intermediaries (input stockists, traders, broker‟s transporters etc) within
     the selected value chains and identify the constraints and opportunities to increased efficiency in
     provision of inputs and produce marketing services. Identify measures that will address such
     constraints and tap existing opportunities;

5    Examine use of inputs by farmers producing the identified commodities. Identify the main
     constraints to access to inputs that depress production, discourage quality improvement and
     otherwise reduce the net returns of smallholders and reduce the demand for Labour engaged in
     domestic horticulture production and recommend intervention activities that could address identified
     constraints.

6    Calculate simplified gross and net marketing margins that would inform on market inefficiency
     within the value chain;

7    Examine physical constraints to market access including the state of infrastructure such as roads and
     markets. Identify infrastructures that the programme could invest in and improve physical access of
     farmers to markets and the trading environment of the markets.

8    Identify constraints within the sub-sector value chain related to access to marketing support services
     (marketing information, credit) and market infrastructure.

9    Review current value addition activities within the chain and identify constraints and unexploited
     potential. Draw conclusions for the most productive ways in which the programme can support
     value adding that, in particular benefit poor households




18
10 Examine governance issues within target value chains including policy, regulation and institutional
     constraints affecting access to markets by farmers and traders as well as enforcement issues with
     respect to standards and quality.

11 Conduct an exhaustive capacity needs assessment of relevant government stakeholders and identify
     specific and appropriate interventions/training to bridge the identified gaps.

12 Formulate cost-effective intervention activities that can address the constraints identified at various
     levels of the value chain and contribute to rise in net earnings of farmers, improve quality, increase
     production and employment, and reduce poverty. The intervention activities shall be presented and
     organized under the various SHoMaP sub-components as outlined in the Appraisal report.

13 Map some key variables that will complement the findings of the VCA and aid in better informed
     decision making on innovative market interventions that would add value to the existing and
     emerging marketing practices;




19
 2.0 APPROACH AND METHODOLOGY

 2.1 Approach

The study entailed literature review and documents study on all aspects of horticulture production and
market value chain activities in Nyandarua district and field data and information collection. On the basis
of the reviews, the consultant identified 11 value chain horticultural crops being grown in the target
district. These included tomatoes and onions considered as emerging crops in the area. This was followed
by consultative meetings with the District Technical Team which included the District Agricultural officer,
District crops officer, Divisional agricultural officers and the district Horticultural Committee. Basing on
accounts of gross margin, production level and potential number of farmers engaged in the enterprise
Kales, Spinach, Amaranth and Snow peas were eliminated from further screening and selection, reducing
the number to seven commodities.

 2.2 Methodology

 In order to collect the information required for planning a participatory and stakeholders driven process
 comprising    the district    technical team and other purposively selected     cross-section of industry
 stakeholders including farmers‟ representative was employed to select the 3 target commodities for an in-
 depth value chain analysis.


  The selection procedures were based on following weighting and ranking criteria agreed on by
  consensus, namely profitability of commodity, existence of a good and growing market (locally ,
  nationally and internationally), number of potential beneficiaries involved in the production of the
  commodity, existence of value chain leadership, and the investment requirement at entry


  The procedure for weighting was done by giving a percentage weight on a scale of 0 to 100 percent for
  each of the criteria. A Likert scale of 1 to 5 was then employed (with 5 = the best case scenario, and 1 =
  the worst case scenario) to rank the selected target commodities.

  2.2.1 Data Collection

  The commodity selection and ranking exercise was followed by a formal collection of both qualitative
  and quantitative data and information from the various actors in the three (3) target commodity value
  chains in the project area using a structured questionnaire and focus group discussions (FGD).
  Important pillars in the three commodity value chains included input suppliers, farmers, transporters
  and traders with whom interviews and discussions were held. In terms of coverage, the study instrument
  had components covering production trends, sub-sector actors and channels, profitability analysis, sub-
  sector constraints and opportunities, and possible interventions. The ministry of Agriculture and line


 20
 ministries also participated in the selection, and discussion process. This primary data complemented the
 secondary data obtained from the reviews.
 Data collection was carried out by the Lead Consultant and Research Assistants. Field visits and data
 collection covered the three divisions in the district namely; Ndaragwa, Olkalau and Ol-Joro-Orok. At
 the divisions the consultants established the factors, actors, channels and dynamics involved in the value
 chain of each targeted commodity. A combination of Focus Group Discussions, Interviews and
 Transect walk was used to collect data and information from farmers, stockists (input suppliers), buyers,
 processors and transporters. In terms of coverage, the study instrument had components including
 production trends, sub-sector actors and channels, profitability analysis, sub-sector constraints and
 opportunities, and derived probable interventions. The ultimate aim of the VCA was to develop a full
 understanding of the crop concerned in terms of the constraints faced by all key actors within the chain.
 It explored the level of organizations of farmers within the selected value chains, analyzed the activities
 of the market intermediaries and constraints analysis. In addition to understanding these constraints, the
 consultant assessed their relative importance and unexploited potential and provided recommendations
 on cost effective ways of addressing them by the Programme

2.2.2 Sampling

Farmers, input suppliers, traders and service providers formed the focus of the study. The Ministry of
Agriculture provided an inventory (the sample frame) of farmers groups and input stockiest from which
respondents were drawn for interviews and focus group discussions. The Actors, involved in production,
service provision or marketing of the respective target VC commodities were drawn from each of the
divisions, Ndaragwa, Ol-Kalou and Ol-Joro-Orok of the district..


In order to achieve a representative sample and numbers for effective focus group discussions, a total of
135 respondents comprising of 70 famers/farmers groups ( 15 farmers from each of the divisions in the
district), 11 input suppliers/stokes‟s, 2 processors and some 39 traders were intensively interviewed and
interacted. Each category in the divisional groups participated separately in the Focus group discussions.
Traders from all the divisions were interviewed individually at their business locations. Key public and
private sector institutions in the input supply chain and extension services were interviewed.

The identification and selection of such respondents was done in consultation with the DAO and District
Technical Team and stakeholders. The interactions, focus group discussions and interviews focused
mainly on the VC performance, constraints and market opportunities, costs and margins, trends and
perspectives and growth potentials in the respective VC commodities. Details of the respondents are
provided in Appendix-




21
Study Sample of Chain Actors

 Actors/Respondents                   Ndaragua Ol-Kalou          Ol-Joro-Orok     Total
 District Technical team              5           2              2                9
 Farmers/farmers groups               30          25             15               70
 Input Suppliers                      4           3              4                11
 Wholesalers                          6           4              2                12
 Retailers                            15          6              6                27
 Small scale processors               0           2              2                4
 Transporters                         2           1              0                3
 Total                                62          43             31               135



2.3 Limitations
Given the arduous task of establishing an effective commodity value chain, there was need for ample
time for an elaborate data collection from the various principal actors in chain web than was provided in
the pilot survey. In some cases, conflicting data/information was given by some respondents,
particularly on production and market related data. The consultants corroborated such data/information
by further analysis and verification from alternate sources. Trend analysis to establish similarities and
variations in the commodity value chain was mostly limited to secondary data since field longitudinal
data would require scheduled data collection over a longer period of time. Additionally, supportive data,
in some instances, was only available for the past 3-4 years in Nyandarua North district against the
expectations of 5 years. The need for confidentiality by the traders limited the use of focus group
discussions as a methodology for data collection. Instead, therefore, the consultants deployed individual
approach interviews.




22
3.0 SELECTION OF TARGET VALUE CHAIN CROPS
3.1 Overview of the Study Area
In order to collect the required information that would facilitate the selection of the 3 value chain
commodities, it is imperative to have          a full understanding of the project area to put the study in
perspective. Kenya produces a wide range of horticultural crops mainly under rain fed production
systems for both the domestic and export markets. The production zones are spread around the country.
Nyandarua North district, in central province, is one of the three districts (Nyandarua West, Nyandarua
Central and Nyandarua North,) recently hived from the larger Nyandarua district. It is one of the major
growing areas and source of horticulture produce in the country. The district covers over 1797 sq km
inclusive of forest land, of which 114,230 ha are arable land suitable for agricultural production. With a
population estimated in excess of 249,000 (1999) people. It has three divisions namely; Ndaragwa,
Oljoro-Orok and Olkalau with a total of over 44,000 farm families, majority being small scale farmers,
engaged in various agricultural enterprises.
3.2 Review of Horticulture production in Nyandarua District
The value chain study started with a rapid appraisal of horticultural production in the study district.
Available information shows that the main horticulture
                                                                 Figure 1: Area under Horticulture Production in Nyandarua
crops grown in the district are Potatoes, Cabbages,                                                       Area under Horticulture Production in Nyandarua
                                                             Area under crop orduction




Carrots,     Tomatoes,   Onions,       Garden       Peas,                                           25000
                                                                                                    20000
                                                                                                    15000
Shallots Spinach and Kales, the latter three being                                                  10000
                                                                                                     5000
grown in small quantities. Small amounts of fruits                                                      0
                                                                                                               2002    2003    2004   2005   2006      2007    2008
such as Papaws, Mangoes and Passion fruits are                                                 Cabbages        2900    2800    2900   4000   4300      5783    5091
                                                                                               Potato          12020   13140   13000 13500   16800     16125   20329
also grown. Maize, Wheat and Pyrethrum are also                                                Garden Peas     3900    3800    3900   4100   4500      7360    5904

grown in the lower highland areas. Given the good                                              Onions           59      56      50     50     55        45      40
                                                                                               Carrots.         991    995     1000   1300    960      387      189
agro-ecological    conditions,   the     district    has                                       Tomatoes         125     125     125   110     95        95      115
                                                                                               Shallots         160    150      100   220     325       8       11
potential for cut-flower production although little                                            Kales                            Year 450
                                                                                                               390     380     390            480      450      470

is   grown    at   the   moment.       Production     of                                 Source: Ministry of Agriculture Annual Report 2002-2007


horticulture is largely under rain fed system and little irrigation is practiced although a long Lake Olbolsat
and Pesi and Nyairoko Rivers some cabbages are grown under irrigation. Generally, the total area under
horticulture production in the district has increased from
                                                                                         Figure 2: Production in Nyandarua District 2002-2008 (Tons)

20,545 ha in 2002 to 32,149 ha in 2008, accounted for
mainly by potato, cabbage and Garden Peas
suggesting their importance as economic enterprises
in the district. Table 1 show that cabbages, potatoes
and Garden Peas are leading in terms of acreage and
volume. In terms of acreage, area planted with potato
increased from 13,000 ha in 2004 to 20,329 ha in
2008. A total of 5091 ha was planted with Cabbages


23
                                                   Figure 3: Marketed volume of various horticultural crops in Nyandarua North

in 2008 up from 2900 ha in 2004. Similarly,        District
                                                                 Marketed volume of various horticultural crops in Nyandarua North
                                                                   700000

                                                                              600000
for the same commodities, production of




                                                               Volume in MT
                                                                              500000

potatoes increased from 200,000 tons in                                       400000

                                                                              300000
2004 to 574,000 tons in 2008, while                                           200000

cabbage recorded an increase from                                             100000

                                                                                   0
40,500 tons to 102,963 tons over the                                                   2002    2003    2004     2005    2006    2007    2008
                                                           Cabbages                    10000   30000   40000    75000   80000   8000    4000
same period. The increase in production                    Potato 110 Kg bags 198000 200000 150000 150000 200000 700000 500000
                                                           Garden peas                 19000   18000   15000    15000   15000   13000   4000
was attributed relative improvement and                    Onions                      500     450      400     500     550     600     400
                                                           Carrots.                    12000   12100   125000   16000   12000   6000    3000
adoption     better    farming      practices,             Tomato                      1000    1000    1000     1300    1300    1100    1500
                                                           Shallots
efficiency in production and increase in                                               1500    1300    1300     2000    2000    3000    5000
                                                           Kales                       3000    2800       Year
                                                                                                       3000  3000       4000    4000    4000

                                                  Source : Ministry of Agriculture Nyandarua District Report-2005-2008

the number of SSF engaged in the production of these commodities. The crops were found to
be suitable and adaptable to the local conditions In addition, the initial level of investment
requires is affordable.
The Marketed output and prices of the target commodities also maintained an upward trend between
2004 and 2007 which indicated a growing market demand and consumption of the commodities due to
domestic market growth and expansion. The changing consumer preference towards the consumption of
the commodities was another market driver.

Farmers viewed the        other crops namely carrots, onions, shallots and tomatoes as less profitable
compared to potatoes, cabbages and garden peas due to low market demand. Tomatoes and Onions
recorded the lowest production during 2000-2008. Green house tomato is an emerging crop in the
district with high potential of being embraced by a growing number of farmers; however, the initial
establishment cost is still inhibitive to a number of SSF. Production of major vegetables in the district is
summarized in table1 below

3.3 Selection Approach

The Value chain study was conducted through a literature review of target district reports, consultations
with various stakeholders and field visits. Through this process, the consultants identified a range, (about
11) horticultural crops which are being grown in the district from which the three value chain
commodities were selected.

The District Technical team had initially identified 6 horticultural commodities for value chain analysis
considerations. These, together including the crops identified during the review, were presented to the
district stakeholders, comprising of the district team and purposively selected stakeholders including
farmers; representatives, for verification. A participatory approach using focus group discussion was
employed to select the 3 value chain commodities. The district stakeholders‟ team was also given the
opportunity to add crops that are grown or have potential to do well in the district for inclusive
consideration.
24
  The selection of the value chain crops was carried through weighting and ranking of the crops based on
  the following four factors: 1) profitability of commodity 2) existence of a good and growing market
  (locally, nationally and internationally) 3) the number of potential beneficiaries involved in the production
  of the commodity and 4) existence of value chain leadership and investment requirement at entry.
  Priority was given to commodities that are considered profitable and have impact on a significant number
  of beneficiaries in the target project area from the farmers‟ perspective.

  The procedure for weighting the criteria was done by asking the individual stakeholders to first assign
  weights to the various criteria entering the selection process of the VC crops, by giving a percentage
  weight on a scale of 0 to 100 percent for each of the criteria earlier agreed on by consensus as the most
  important measure of value judgment. All the criteria were adjudged as having a combined weight of
  100%.

  From the initial list of 11 value chain crops, after preliminary elimination of four commodities on
  account of gross margin and volume of production six (6) commodities entered the selection process of
  which three (3 ) value chain commodities; Potato, Cabbages, and Garden Peas, were selected for in-
  depth value chain analysis. Once this was done, the stakeholders were then given a chance to rank each
  of the 3 value chain crops in-terms of how well each value chain conforms to the selection criteria.

  In order to rank the 6 target commodities, a Likert scale giving a numeric ranking of 1 to 5 was employed
  (with 5 = the best compliance case scenario, and 1 = the minimum case scenario), for example on the
  issue of profitability as a criteria for value judgment, 5 would represent most profitable score category for
  a given commodity, while 1 would represent least profitable score category for another commodity. For
  ranking the commodities by gathering the numeric scores from all participants in the stakeholders group,
  the commodities were ranked on the basis of their weighted average numeric scores.

  3.3.1 Selection Results
The selection results and ranking of value chain commodities are summarized in table 1 and table 2 below
respectively.

  Table 1: Weighting Results
  Criteria                              Wt    Potatoes   Cabbage   Carrots     Tomatoes     Peas         Onions
  Profitability of the commodity        30    28         20        20          15          10            20
  Existence of a         good    and    18    25         20        15          10          20            10
  growing market
  Number          of       Potential    17    15         25        15          10          15            15
  beneficiaries
  Existence of         Value    chain   20    20         10        10          8           15            6
  Leadership
  Investment Requirement entry          15    10         10        12          12          15            8
  Total                                 100   98         85        72          55          75            59
  Weighted Position                           1          2         4           6           3             5




  25
Table 2 Ranking Results
Criteria                             Wt    Potatoes         Cabbage   Carrots   Tomatoes   Garden   Onions
                                                                                           Peas
Profitability of the commodity       30    4          5               2         3          3        3
Existence of a good and growing      18    5          4               3         4          4        3
market
Number of Potential beneficiaries    17    5          4               2         2          3        2
Existence     of   Value     chain   20    4          2               1         1          3        1
Leadership
Investment Requirement entry         15    4          3               1         2          2        2
Total Score                          100   22         18              10        12         15       11
Average Score                        100   4.4        3.6             2         2.4        3.0      2.2
Ranking                                    1          2               6         4          3        5


On the basis of fuller analysis of acreage under production, volume of production, establishment costs
and net margins revealed that potatoes, cabbages and garden Peas are more cost effective to the farmers
than the other crops .Their choice of potatoes may therefore not be surprising since they are already
grown in the district by a large number of farmers and earn them incomes.




26
4.0 VALUE CHAIN ANALYSIS

4.1 Potato Value Chain

4. 1.1 Introduction
The entry point to a commodity value chain study starts with the identification of all the key players,
actors and service providers within the target value chain. It is envisaged this would entail:
     1. Input suppliers
     2. Producers/farmers/processors
     3. Transporters
     4. Buyers/Traders
     5. Service Providers


4.1.2 Value Chain Map


Potato is an important vegetable crop in Kenya which is produced and sold through various channels
under free market conditions. The Fresh potato is marketed as seed potato, ware and processed potatoes
mainly in form of potato crisps and French fries. Ware potatoes are sold in the local fresh (wet) markets
directly to consumers and comprise the bulk of the produce sale in Kenya.

The value chain map provides a graphic representation of the situation of the Value chain showing how
the products flow through the primary system. The channels are generally the vertical chain enterprises
that transform the raw materials and deliver the finished product to the consumers. In the case of the
potato value chain map the channels have been identified on the basis of five core business units
comprising the input supply system, production, marketing, processing and consumption. The value
chain map reflects all the players and actors and their activities at the levels of potato production and
marketing. The map lists the functions horizontally and the Actors and activities on the vertical scale.

It is worth noting at the beginning that, the input flow is a cross cut-ting function that affects all other
participants in the chain. From the point of view of the small scale farmers and as can be seen from the
map, this is a traditional production supply chain which is fragmented, long and inefficient due to the
large number of intermediaries, lack of organization among producers and poor market information
management

Below is a generic analysis of the potato value chain map which is described and illustrated graphically in
figure 3.

Figure 3: The Potato Value Chain Map



27
     VC
                                                          Production                     Product Marketing             Basic Processing          Consumption
     Function
                                     Input supply


                Producers of           Common seed             Potato                                    Value Added        Small scale            Consumers
                                                                                 Raw products
                certified seed         producers               farmers                                                      processors             ’.
                                                                                   Brokers                                                         Household
                                                                                                                            e.g.
                                        Farmers group          10,000Small                               Supermarket
                KARI                    Munandani              scale                                                             Small
                                        Michinda                                  Wholesaler             s                   companies
                ADC                                            farmers                                                                             Institutions
     A                                                                             Retailer
     C                                                                                                   Fast food          Self-Help Groups
                                                                                                                                                   Hotels
     T                                                                            Transporters           chains
     O                                                                                                   chain
     R
     S
                  Agro chemicals stockiest                                                                                                          Consumers
                                                         Farmers                               Traders                   Processors
                 Green Acres,                                  Duncan                   Nyahururu          super            Midlands,           Nyandarua
                 KAPE-PHARM                                     M.Njoroge                 markets                             Kipipiri            district hospital
                                                               Anne Wambui              Village        market               ,Ngatia ni IGAI     Nyahururu
                 Agro vets,                                    John K.Gikonyo                                                                     prisons
                                                                                          traders
                 Malewa Agrovets,                                                        Urban          market                                    Thompsonfalls
                                                                                                                                                   hotel
                 Thirikwa Agrovets
                                                                                          traders




                    MOA                                                               MOA,                              ATC,                          MOPH
                                                        MOA,                          HCDA
                    KEPHIS,                                                                                             MOA,                          KEBs, LA
                                                        ADC,                          KENAFOPA,                         KEBS
                    EADN/IFC                            ATC                           LOCAL AUTHORITIES




                                                                                    Institutional Service Providers
28
         VC                   Inputs           Production            Trade
         Function                                                                    Transportation         Marketing           Consumption
         f

     A             Supply of potato      Land preparation         Loading              Loading and            Buying and          Buying
     C              seeds                 Planting,                 and                   unloading               selling              product for
     T             Distribution of       Earthing                  unloading            Transportation         Bulk                 consumptio
     I              fertilizers and       Weeding, IPM             Repacking            Cess payment            breaking             n
     V              agrochemicals         Harvesting,              Buying and                                   Storage
                   Advice to                                        selling                                      Processing          Quality and
     I                                     grading/sorting,
                    farmers                                         Transport                                                          price
     T                                    Packing                                                                Cess
                   Credit                                          Cess                                                               differentiati
     I                                    Buying and selling                                                      payment
                    institutions                                     payment                                                            on
     E
     S




     A         Input suppliers                                                           Lorry owner        Wholesalers,              Household
                                            Farmers                  Broker
                                                                                                            Retailers                 s
     c
     t        Public institutions      Family labor and         Travelling traders       Driver                                       Hotels and
                                                                                                            Kiosks
     o                                 workers                                                                                        Restaurants
     r                                                                                   Loaders
                                                                Wholesalers,                                    Supermarkets
     s        Private                                           Retailers                                                              Institutions
              organizations
              Farmers groups                                                                                    Processors

                                                                      Local              Local
                                                                                                                   Local
                                                                    Authorities          Authorities
                                                                                                                 Authorities




29
4.1.6.8 Support Services
Extension services are important to increasing productivity. In the potato sub sector, it was observed that
the Ministry of Agriculture and KARI were the main agents delivering agricultural extension services to
farmers. The District Agriculture Office (DAO) is implementing various activities on Potato production,
group formation, and technical advice to growers, technology demonstrations and training


The Ministry co-ordinates programs in NALEP, Small Scale Horticulture Empowerment Program
(SHEP) and together with KARI and KEPHIS provide extension services and training and capacity
building   of farmers. NALEP and SHEP are extensively involved in facilitation of farmers groups and
linking small scale farmers to markets.
The Horticultural Crops Development Authority (HCDA), AGMAK and a few private sector NGOs and
Community based Organizations (CBOs) also compliment MoA in providing training and capacity
building of farmers in the district. The Kenya National Federation of Agricultural Producers, (KENFAP),
Kenya Agricultural Productivity Program (KAPP) and Kenya National Potato Farmers Association
(KENAPOFA) provide marketing support and assistance to farmers, with the later expected to offer a
platform for dialogue and organizing the sub sector to participate effectively in the market chain.

It was noted from discussions with farmers that there was wide adoption of good agricultural
practices and use of fertilizers and seed among farmers as a result of these interventions. Never
the- less, it was also noted that it is probably the quantities and types of fertilizers used by
farmers that had the bigger impacts on productivity, more probably than lack of information on
inputs. In the case of seeds it was the availability and reliability of markets that had bigger
impacts on productivity. A summary of main actors and their roles in the potato production
chain in the district is provided in the table 5 below



4.1.6.9 Partnerships and Collaboration.

There have been efforts by PSDA/GTZ and KARI to bring Potato farmers together through the
KENAPOFA. In addition, the International Potato Centre (CIP), EADN/IFC, Genetic Technology
International (GTIL), USAID are partnering with KARI and individual farmer groups in Potato seed
production and multiplication in the district. CIP, working closely with KARI, is supporting research in
development of basic Potato seed. KARI, CIP and GTIL are collaborating in the aero phonics miniature
potato seed production at Tigoni.

EADN is a private sector group, working in close collaboration with CIP,             providing institutional
support, capacity building to farmers on seed multiplication and positive seed selection and quality
assurance in the input market. At the time of the study, EADN was supporting three (3G) farmers groups
in clean seed production.


30
4.1.3 Input supply and Distribution System


The main inputs for potato production are potato seed, labour, machinery, fertilizer and fungicides.
These are produced and supplied by potato seed breeders, seed multipliers, agrochemical and farm input
stockists and hardware shops. Policy regulatory bodies are an integral part of the input supply system.
The potato input supply and distribution system is briefly described below:

4.1.3.1 Potato Seed

Potato seed is the main input in potato production. There are three types of potato seeds: Common seed
(Farmer saved seed-FSS), Certified Seed (CS) and improved seed (IS). The Common seed represents
about 80% of the seed supply which the farmers supply their own, exchange with other farmers or buy in
the local market. Certified seed is produced by Kenya Agricultural Research Institute, (KARI), Tigoni,
and the improved seed is supplied through the seed multiplication system.

KARI, Tigoni, is the sole breeder of basic potato seeds in the country. The basic seed is bulked through
three generations at three farms operated by the institute in Tigoni and Molo or through the Agricultural
Development Corporation (ADC) and farmers themselves. After three multiplications at KARI, the seed
is sold to farmers for production of ware and seed potatoes. The major potato seed varieties maintained
by the national seed program include Annet, Roslin Eburu (B53), Roslin Bumbwe, Nyayo, Roslin Ruaka,
Roslin Tana, Desiree, Kerr's Pink, and Kenya Baraka. Certified seed makes up only 4% of the total seed
market... According to KARI, seed yield potential varies from one variety to another with an average of
about 15 tubers per seed. It was reported that only a few farmers in the district who grow potatoes have
ever purchased certified seed due to high cost and lack of a reliable marketing system. Clean Seed
production and utilization by farmers is the weakest link in the value chain and an area that provides
opportunity for intervention and improvement.

At the national level KARI has the mandate to conduct research works on potato. It has recommended
several potato varieties suitable for every part of Kenya. It is also involved in producing high quality pre-
basic seed through tissue culture technique, which is distributed throughout the country.


Certification of seed quality is the responsibility of the National Seed Quality Control Service (NSQCS),
the Kenya Plant Health Inspectorate Services (KEPHIS) which ensures that basic seeds are certified
before they are sold and distributed. Certification may continue through several multiplications stages.
The Agricultural Development Corporation (ADC) is the main potato seed multiplier in the country
There is no large scale private sector involvement in multiplication of potato seeds and only a small
number of individual and some 12 farmers‟ groups were identified as actively engaged in potato seed
multiplication both as an income generation activity and for own use as seed




31
In the district and this seed can be sourced by neighboring farms and from the local markets for planting.
Some of the farmers groups were being supported by EADN/IFDC (Extending Agro Dealers
Network/International Fertilizer Development Cooperation and the 3 G (availing clean seed to farmers
within 3 generation to grow seeds). This has increased availability and usage of clean seed. This included.
Some of these farmers groups include.

        Munandani SHG. (Ndaragua)
        Michinda SHG, (Ndaragwa ;)
        Mathakwa Kugeria ( Mirangine)
        Kirima SHG (Mirangine )
        Pyhort SHG (Oljoro-Orok.)
        ATC, Ol-Joro Orok
        Mr Mwangi (Ndaragwa)

The Farmer Saved Seed is that which is retained by the farmer for the next planting (approximately 5% of
production). Small potatoes are selected for seed because they are, on preference, more difficult to sell
and easier to transport and store on the farm. A positive seed selection supports this process. Some
traders and transporters are also involved at one stage or the other in potato seed selling and distribution.
It was noted during the study that some farmers were sourcing the potato seeds through contract farming
arrangements. It was noted, however, that own supply, approximately 80% , or recycling of seed still
make the most important source of seed for farmers in the district. The MOA was cited as the main
source of public extension services and advice to seed multipliers. Figure 5 illustrates the potato seed
production and supply system in Kenya




32
Figure 4 Potato seed production system in Kenya.


                                                                                                ADC: Multiplication       of
     CIP: Breeding and                            KARI: Breeder of                              clean seed
     distribution   of                            foundation seed and
     certified seeds                              distribution



     Local     traders   /                SSF: Informal seed exchange,                        12     -Farmers         groups:
     stockists                            Common seed multiplication and
                                          distribution, Buy from local seed                   Common                    seed
                                          traders
                                                                                              multiplication
                                                                                          Commercial trader
                                                                                                   Also purchases from
                                                                                                   local merchants




                             Inspection, Certification and Extension Services: KEPHIS, MoA, EADN/IFC, ICIPE




33
According to KARI-Tigoni, 1,217 tons of
seed were propagated in 2006 rising                           Figure 5: Potato seed production 2006-2009
to 1,559 tons in 2008. This was                                           1800
                                                                             Potato seed poduction trend 2006-2009
                                                                          1600
equivalent to about to 4% of the
                                                                          1400
national potato seed    which is not




                                           Production in MT
                                                                          1200
commensurate         with    farmers
                                                                          1000
demand. The price of the KARI                                              800
certified potato seed       increased                                      600
from shs 1900 in 1996 to         Ksh                                       400
2,220 per 50 Kg bag in 2009 which                                          200
                                                                             0
farmers considered to be high. The                                                        2007/    2008/
                                                                                  2006                      2009
seed growers on the other hand sell                                                        08       09

exorbitantly at between shs 2000                                    Potato seed
                                                                                  1217     1559 Year
                                                                                                  1019       760
                                                                     poduction
and shs 2500 per 50kg bag due to
the inadequate quantities produced.

Figure 6 above shows a declining trend in potato seed production over the past four years from 1,217
tons in   2006 to 1,019 tons in 2008.         In response to this gap, KARI -Tigoni, in collaboration with
USAID-EU is implementing a mini seed production program using aeroponics technology as measure to
increase its capacity for potato seed production.

4.1.3.2 Fertilizer

The main fertilizer used in potato production is DAP. At the moment all fertilizer requirements for the
country is imported by the National Cereals and Produce Board and other private sector players which is
sold through local stockiest and stores. Farm manure is also used a great deal in the district. The prices
for fertilizers vary between locations, currently ranging from Ksh 2500 to shs 2700 per 50kg bag and this
difference reflects the distance from the source of supply. Although a majority of farmers, 80% were
reported using fertilizers, there is in- adequate application due to its high cost and lack of appreciation to
its contribution to enhancing yields.

4.1.3.3 Pesticides and Herbicides

Pesticides/insecticides and herbicides are important in potato production. These are                       also obtained
from the local dealers and merchants within outside the district at competitive prices.




34
4.1.3.4 Distribution System

There are about 100 small scale dealers and individual stockists in the district who are involved in selling
and distribution of agricultural farm implements and agrochemical inputs of which the top 10 ones
include:
Table 3: Name of Dealer/Stockists per division
      NDARAGUA DIVISION                    OL-KALAU DIVISION                           OL-JORO OROCK DIVISION
1.National Cereals and Produce 1.Merit Agro vets                                      1.Farm Input systems Ltd
Board                                   2.Farm Factor                                 2.Vumulia Agro supplies
2.Green Acres,                          3.Tumaini stores                              3 .Charagita Agro vet.
 3.KAPE-PHARM Agro vets,                4.KFA                                         4.Hope Agro vets
4.Malewa Agro vets,
5.Thirikwa Agro vets,
6.Ventagro,
7.Country Focus
8.Farm input systems


Each of these dealers source inputs individually from the major suppliers either from Nyahururu, Nakuru
or Nairobi. The stockiest are spread across the district and easily accessible to farmers. Some of these
stockiest represent major input manufacturers such as Farm Chem., Osho Chemicals, Bayer Chemicals
(E.A ), Sygenta and Amiran (K).The major public institution involved in distribution were identified as
National Cereal and Produce Board and Kenya Farmers Association. At the time of the study, there was
an Interim Agro input supplier‟s organization for Nyandarua district. A summary of key actors and their
roles in the input supply chain is provided in Table 4 below
Table 4: Main Actors in Potato seed production.
   NAME OF ACTOR                         ROLE AND SERVICES                                         LIMITATIONS
Certified Potato Seeds
KARI –Tigoni and substations      Potato seed breeding and distribution                Low capacity to produce adequate potato
in Molo,                                                                              seed farmers requirements
ADC(Improved Seed)                Seed multiplication and sale to farmers             Limited      capacity     undertake   seed
                                                                                      multiplication due to inadequate farm size,
                                                                                      and high cost of planting material
Common Seed
 12 Farmers groups (Muhandaini    Producing common/clean seed, exchange and           Lack of technical skills in positive seed
SHG, Kirima, TC, Michinda)        selling to other farmers                            selection and low compliance to quality
                                                                                      requirements
Service Providers
Ministry of Agriculture             Extension support to seed producers and           Few extension staff and outreach
                                   seed distribution
KEPHIS                             Certification and quality assurance                Inadequate technical staff to undertake seed
                                                                                      certification in the field
PCPB                               Registration and quality assurance            of   Weak capacity to monitor/control quality
                                   pesticides                                         and distribution.
NCPB                               Importation and distribution of fertilizers        Not a core business hence not prioritized as
                                                                                      a major service
Other Inputs: Fertilizers, Pesticides, Herbicides
100 stockiest and input dealers( Stocking and selling of seeds and fertilizers        Limited access to capital to stock inputs and
Green Acres, Vetagro, KAPE, ,training of farmers on chemical application              lack of technical skills to advise farmers on
KFA, Malewa)                                                                          the use and application of chemicals.
Partners
EADN/IFC/                         Training and support to seed multipliers on         Limited resources
                                  positive selection

CIP                                Supporting research and potato seed varietal       Budgetary limitation
                                   development Support to 3G clean seed
                                   potato growers,(ATC, Mr. Mwangi)
GTIL/USAID                         Supporting aphonics miniature potato seed          Limited production
                                   production at Tigoni


35
4.1.4 Constraints in Input Supply
Input suppliers pointed out three major constraints:

1. Inadequate availability and high cost of quality potato seed. An important problem identified in
the district during the study with regard to input supplies was the inadequate availability and high cost of
quality seed potato largely because of low capacity and lack of institutionalized system for seed
development, multiplication and distribution to farmers. This was a major concern to input dealers as
much to the farmers. When seed quality seed was available, it was expensive. Coupled with limited capital
most stockists‟ cannot stock economic quantities for sale. In some instances farmers used varieties not
suited to market needs. The seed growers indicated weak extension services and that most farmers were
reluctant to pay the extra price for quality seed.

2. High cost of Agrochemicals and fertilizers. This was cited by stockists as one the constraints
leading to low stock levels. High internal transport costs occasioned by poor infrastructure were also
mentioned. In addition, some unscrupulous traders supply adulterated agrochemicals due to lack of
proper product labeling and awareness on the part of stockists was also noted. Stokists further stressed on
the need for effective monitoring of quality standards of inputs. On the other hand the stockists felt the
need to coalesce into an association to gain to stockists economies of scale and increase bargaining power
in the input sourcing.

3. Limited technical knowledge. There was apparent lack of technical skills and understanding among
input dealers about correct use and application protocol of fertilizers and other chemicals. It was reported
that most dealers /stockists have little knowledge to guide and give advice to farmers on appropriate
application and the impacts of chemicals on their health.

However, suppliers felt that they can play a role in information transfer and agronomic advice to the
farmers regarding correct use and application of chemicals. The main constraints reported by the input
dealers with regard to input supplies and trading are summarized in Table 8.




36
Table 8: Constraints in Input supply chain and recommended Interventions


CHAIN LINK         CONSTRAINT                       CAUSE                     EFFECT                  RECOMMENDED
                                                                                                      INTERVENTION
Seed              Inadequate            Low level of research, and low      Low utilization    Support KARI and farmers‟ groups
production        availability     of   capacity by KARI and ADC            and          low   for seed multiplication and training
                  quality potato seed                                       productivity       on positive seed selection.

Acquisition       Limited      access   Stringent financial requirements    Inadequate         Facilitation        of      increased
                  capital to purchase   by banks                            stock       and    accessibility     to    credit    for
                  input stocks                                              tendency     to    dealers/stockists. Kilimo Biashara
                                                                            charge     high    credit available at Equity bank
                                                                            prices
Distribution      Lack of Technical     Lack of compliance by stockists     In appropriate     Formation of stockiest association
                  Skills                and enforcement of regulations      advice on use      to access training and achieve
                                        by PCPB. Stockists are not          of chemicals to    economies of scale in input
                                        adequately trained in input trade   farmers            sourcing and distribution.
                                                                                                Update knowledge of stockists on
                                                                                               new varieties/technologies through
                                                                                               timely information


4.1.5 Recommended Interventions

In the context of the foregoing, it is recommended that the program should support interventions in the
following:

        1. Clean Potato Seed.
          In order to improve availability of          quality clean potato seed, it is important for SHoMaP to
          support multiplication and dissemination of improved seeds by individual farmers and producer
          groups as a business and for own consumption. This can be achieved through collaboration with
          KARI, ADC, KEPHIS and EADN/IFC                          to increase production and supply of basic at
          subsidized price to multipliers
        2.     Training of Input Stockiest
          Farmers require to be informed of appropriate use of chemicals by the Stokists at the point of
          sale; however, the stockiest do not have the technical capacity to do so. In view of this, it is
          important to train the stockists so that they can impart appropriate knowledge on chemical use
          and application to farmers. This can be achieved through effective partnerships with major input
          suppliers.
        3. Input dealers Association
          To empower input suppliers and mainstream them in the input supply chain, there is a need to
          support the Interim Input supplier‟s organization through                      capacity building to facilitate
          availability of quality inputs, mitigate on input prices, and provide information on prices, new
          products and control mushrooming of unqualified input suppliers.


          Opportunity exists for individual farmers, farmers groups or organization to engage in seed
          multiplication as a commercial venture.



37
4.1.6 Potato Production.

Potato is the second most important food crop in the country after maize and plays a major role in food
security and the reduction of hunger in the country. The crop contributes to wealth creation, income
generation and employment. It is estimated that currently about 600,000 small scale farmers country-wide
are engaged in potato production. There were no evident large scale potato farmers in Nyandarua district.

Potato production in Kenya has been declining over the past years from 1.1 million tons in 2004 to
980,000 tons in 2005 with a further drop to 784,000 tons in 2007. It is currently estimated that about
120,000 hectares are planted with potato annually. This translates to an estimated 960,000 tons of ware
potato annually, at an average yield of 8 tons per ha.

The main potato growing zones are found in areas with yearly rainfall of between 850 mm and 1200 mm,
at altitudes between 1, 500 m and 2, 800 m above sea level. These areas are situated mainly in the
Central, Rift Valley and Eastern provinces of Kenya. Rift Valley and Eastern provinces account for the
bulk of the crop production in the country. It is widely grown in all suitable ecological belts in the
country.
4.1.6.1 Yield and Variety

There are two main types of potato varieties grown in Kenya, namely; white and red skinned varieties.
The white varieties are; Nyayo, Mushomoro, Tana kimande, Tigoni and Kihoro, while the red skinned
varieties are Meru, Arka, Asante, Sangi, Gorofu, Dutch Robjyn, Mukori, Disaree, Meru Mugaruro,
Humba Thuti and Ngure. While the varieties of potatoes grown in Kenya vary across districts, the
widely grown varieties are mainly the Nyayo,Tigoni, Sangi and Asante which are a mixed of traditional
seeds and certified improved varieties .

In Kenya, average Potato yields are variable depending on variety and agronomic practices in potato
cultivation. The national average yield achieved by the small-scale farmer is between 7 and 8 tons per
hectare. Large-scale farmers generally achieve higher yields, approximately 15 to 20 tons per hectare.
Yields of improved varieties average 8-10 tons per ha, which although lower than the estimated 15 tons, is
significantly higher than yields of traditional variety. The low yields could be due in part to the low
fertilizer application, and poor management practices as well as use of inferior quality seed.

4.1.6.2 Potato Production in Nyandarua North district

Potato is one of the popular vegetables grown in large quantities in Nyandarua district. It is the second
most important economic activity in the district after dairy. Potato is grown in all the three divisions of
Nyandarua North district; Ndaragua, Olkalau and Oljoro-Orock

Some 10,000 small- scale- holder farmers are estimated to be engaged in the production of the crop. The
bulk of production is carried on small farm holdings averaging between 0.25 and 2 ha. Production is
characterized by low yields and low quantity output.

38
The area under potato production in the district has been on the upward trend, increasing from a total of
13,140 hectares in 2004 to 16,125 in 2007, with a                                Figure 6: Area under potato production trend in Nyandarua N district,2004-2008

further increase to 20,329 hectares in 2008.

According to KARI, the expected yield per ha in the district is 10-15 tons using proper agronomic
practices. However, based on
discussions with the farmers                        Area-Ha under potato production Nyandarua North district
                                                                           2004-2008
groups, the actual yields realized
                                                                                  25,000
in the last 5 years was between 7
                                                                                  20,000
and 8 tons per ha. Part of the
reason for the low yield in the                                                   15,000

district was due to inadequate              Area in HA                            10,000
application of farm inputs which
                                                                                   5,000
the farmers linked to high input
costs. From an entrepreneurship                                                          0
                                                                                                  2004         2005          2006         2007        2008

perspective, this yield level is                     Surface Area-Ha under potato
                                                                                                 13,500       13,500        16,800       16,125      20,329
                                                              production

unattainable in terms of optimal
production level

                                                                                                              Year
and      profit       maximization.
Efficient husbandry and use of improved seed
could increase average yields to higher levels.                             Figure 7: Potato Production trend in Nyandarua District (2004-2008



Figure 8 shows that, in spite of the low yield levels, potato production in the district increased from
1,690,000 tons in 2004 to a peak of 2,184,000 tons in 2006 valued at shs 710 million and shs1.1 billion
respectively. This increase in
                                             Potato Production trend in NyandaruaDistrict (2004-2008)
production was attributed to the
                                                                                  2,500
increased demand for potatoes
during the period. Production,                                                    2,000

however, dipped to 738, 442 tons
                                                         Production in MT




                                                                                  1,500
in 2007 and 574, 442 tons in
2008, the lowest level ever                                                       1,000

recorded for the district. This
                                                                                    500
decline was partly attributed to
                                                                                       0
low use of inputs, poor quality                                                                  2004          2005          2006          2007         2008
                                                     Potato Production ( 000 Mt)                 1,690         1,755         2,184         738          574
seeds and the 2007 post election
                                                                 Source: MOA- Annual Report, Nyandarua District 2008
instability.   This     production                                                                                          Year

trend is illustrated graphically in figure.8




39
It was noted that farmers were typically operating their farms at very low levels of economic productivity,
producing both for subsistence household consumption and                                    for commercial sale; still using poor
production practices and techniques and applying in-adequate fertilizer because they are unable to
purchase required quantities due to high costs. However, in spite of this, given good ecological
conditions, Nyandarua is a potential source of potatoes in the future.

4.1.6.3 Potato Prices

In the past five years, potato prices in the district
                                                                        Figure 8: market prices of 110 kg potato bag
have shown a clear pattern of
                                                                             Trend of Average prices for (110Kg potato bag)
tendency. There is a clear inverse                                              1600
correlation of supply and price                                                 1400
                                                                                1200
trends due to seasonality. The
                                                 price in KSh
                                                                                1000
available time series data show a                                                800
                                                                                    Source: Potato Production trend in Nyandarua District (2004-2008


                                                                                 600
rising    trend   of   prices.   Prices,
                                                                                 400
however, varied and have fluctuated                                              200
with season, skin color and even                                                     0
                                                                                             2004        2005        2006        2007        2008

from one division to another,                                   Average prices(110Kg bag)    1390        1,400       500         700         1500


depending on supply situation and                                                                                           year
market     conditions.    Prices    are
determined by, and vary with supply and demand, season, marketing channels and potato quality. The
highest prices are achieved during the period when production levels are low... At the time of study, farm-
gate prices ranged between shs 800 and shs 1,000 per 110 kg bag .Normally prices are cyclical, high at the
commencement of the season declining gradually as the supplies increase. Relative supply and demand for
potatoes and effective distance to wholesale markets, coupled with poor state of the roads affect the farm
gate price. During glut seasons, farm gate price is likely to be less than half the ultimate retail price or can
crash to as low as Shs 200/per 110 kg bag.

On the other hand, market prices ranged from Ksh.1, 500 to Ksh. 2,500 per 110 kg bag but depending
on the season may reach as high as ksh 6000 per bag during shortages. In the super markets, potato is
sold     by weight (kg) and the prices ranged from are Ksh 80.00 to over Ksh.150.00. per Kg for good
quality potato.

4.1.6.4 Production System

Potato production is markedly seasonal and depends on climatic conditions with glut production
common during the rainy seasons resulting in depressed producer prices. Production is higher than the
market can absorb during peak seasons and produce go to waste because of lack of on farm storage and
market outlets. Potato is grown in subsistence as well as commercial households.




40
Potato production starts with land preparation, seed acquisition, planting/fertilizer application, earthling,
through weeding and pest and disease control, second earthling to harvesting. In most instances, farmers
use family labour, however, there are cases where hired labour is used. Production is dependent on rain-
fed system and use of irrigation is negligible, although the benefits and potential for increased production
through of irrigation are high. The use of irrigation is limited due to the high cost of irrigation
infrastructure.

In large scale farms state-of-the-art agricultural technology is employed using high levels of purchased
inputs. For small scale farmers, however, it was noted that intensive use of such inputs is limited as only
few farmers‟ own tractors as much as practice little crop rotation.

Planting of potatoes is at the beginning of the rains, two seasons in a year, April/May and
October/December depending on the rain pattern. Even though the extension services recommend a
seed rate of 2 tons/ha, this is achieved only in a few instances. Commonly, the application rates vary from
1.3 to 1.6 tons/ha. Potatoes are planted at a spacing of about 30 cm, in rows about 60 cm apart. Manure
and/or fertilizer are applied at planting time if available. The crop is weeded two or three times at two-
week intervals starting about four to six weeks after planting. It is a gender balanced enterprise. Women
labour is utilized more in planting, grading and sorting while the manure involved in land preparation.
The typical production pattern is provided below

Table. Potato Growing Calendar in Nyandarua District

Crop          Jan      Feb   Mar    Apr     May    Jun     Jul    Aug     Sept   Oct     Nov     Dec
Activity
Planting
Growth
Harvesting
Source .Field survey



Harvesting is usually about four months after planting. Potatoes are harvested twice in a year in the
months of July and December and are normally done manually by hand using sticks, jembes, pangs or
hoes. Due to lack of on –farm storage facilities, farmers are forced to harvest when there is ready market,
the lack of which leads to high temporal and spatial post harvest losses. Although potatoes are produced
twice a year, it is but consumed all year round; therefore on farm storage plays an important role in
creation of time and place utility. As a coping mechanism, some farmers were observed storing potatoes
underground in closed pits on the farm. Grading occurs at harvest time, with small tubers set aside for
seed and damaged ones for immediate consumption or animal feed




41
4.1.6.5 Pests and Diseases

Farmers reported that potato is highly prone to diseases, particularly bacterial wilt, late blight and soft rot
which have direct impact on the yields realized in the area. Bacterial wilt [(Pseudomonas solanacearum)] is a
major production problem not only in Nyandarua but also in other potato growing areas in the country,
especially those at lower altitudes; at higher elevations it is generally unimportant. In the traditional
potato-growing areas in the lower parts of the district, wilt can be found in almost all of the plots, but
incidence per field varies. Another bacterial disease, Late blight, is also affecting the crop. Even though
many farmers spray their crops, losses can be severe because infestation of the crop is higher during the
rainy season.

Other destructive agents include potato aphids, potato tuber borer and potato viruses, particularly, the
leaf roll and alfalfa mosaic virus have been recorded. The aphid-transmitted viruses cause the most losses,
especially in seed stocks retained by farmers and those that move through the informal seed trade. Aphid-
borne viruses are known to spread in rustic stores and can also be widespread and its incidence is high
throughout all potato-growing areas, often reaching as high as 90% in some varieties. Application of
fungicides, use of clean seed and resistant varieties greatly help to contain these diseases.

4.1.6.6 Actors in Production Chain

The principal actor in the potato production system is the small scale farmer and farmer group‟s potato
seed producers and multipliers. These include some 10,000 SSF, over 12 farmer groups besides the input
suppliers. The other actors were identified to include the ADC and the Agricultural Training Centre
(ATC) at Ol-Joro-Orok.

.Table 5: Actors in Potato production chain

       MAIN ACTORS                                ROLE/SERVICES                                   LIMITATIONS
10,000 Small scale Farmers      Potato production and marketing of potatoes at farm       Limited technical knowledge on
(SSF),                          level and production of potato seed                       crop production, agribusiness
                                                                                          development        and      seed
                                                                                          production.
40 farmers groups and 12 seed   Potato production and seed multiplication                 Limited technical knowledge on
multipliers                                                                               seed production and positive
                                                                                          selection
Service Providers               Role/services                                             Limitations
ATC at Oljoro –Orok             Technical training of producers and processors on value   Budgetary limitations to launch
                                addition                                                  trainings
Ministry of    Agriculture      Technical trainings and extension services, policy        Few      staff  and    outreach.
(NALEP,    ,SHEP,     and       advice and facilitating formation of farmers groups,      Budgetary limitation
SHoMaP NMK, CDKDAP,             CIGs
KAPP
AGMAK                           Training and capacity building of farmers and input       Budgetary limitation
                                stockists
KENFAP                          Promotion of producer associations and processing-        Limited capacity and outreach to
                                value addition                                            farmers.
KENAPOFA                        Lobbying for farmers interests                            Limited    capacity   lack    of
                                                                                          organization
Seed Company of Kenya




42
4.1.6.7 Constraints in Potato Production

An assessment of the potato production and discussions with farmers in the district revealed that farmers
have not embraced potato growing as a business enterprise. They little appreciate and understand the
market dynamics and actors in the chain. They cited the in- adequate availability of potato seed, limited
technical know-how, poor quality potatoes, access to markets, poor access roads and poor institutional
networking as some of the constraints limiting their potential to improve their incomes and participation
in the market value chain.

1. Inadequate availability of quality potato seeds. A critical constraint identified in production was the
inadequate availability of quality seeds due to lack institutionalized multiplication and distribution system.
KARI is able to meet 4% of total seed demand. Farmers indicated the adverse effects of lack of access
to credit in the acquisition of potato seed and their general operations. This coupled with high cost of
potato seed has resulted in low use of certified seeds and heavy reliance on FSS, hence low productivity
and poor produce quality.

2. High cost of agrochemical inputs. This was cited as main cause for low utilization of fertilizers,
pesticides and herbicides hence resulting in low productivity. They cited lack of capital to purchase the
required agrochemical inputs in required amounts thus applying less of the recommended quantities per
ha consequently resulting in low yields to the farmer.

3. Poor Rural Access Roads. Farmers cited poor rural access roads as limiting their access to markets
and are to blame for low farm gate prices, high transportation cost and reduced margins. In order to
facilitate access and transportation of produce to the markets, it is important to improve and maintain
conditions of the access roads in small holder producing areas within the district. Details of access roads
mentioned are contained in Appendix II.
4. Weak Extension services. The study showed that farmers had varying adoption of good
agricultural practices. There was wide adoption and less use of fertilizers and high quality seed among
farmers. However, the number and technical knowledge on the part of the MoA extension staff remains
limited, arguing, therefore, that enhanced extension services was necessary to raise farmer‟s awareness on
new and existing technology to raise productivity. The delivery of extension services could best be
complimented through partnerships with private sector services providers including NGO‟s and farmers
organizations.

4. Poor produce quality, primarily due to lack of technical knowledge on good agricultural practices on
the part of small holder farmers was also cited as one among the several constraints producers face in
potato production and marketing in the district..It was noted that produce quality was also affected by the
high incidence of pest and diseases on the crop. In addition, most farmers lack the know how to identify
and manage pests and diseases leading to high post harvest losses. Besides, still many farmers do not
practice crop rotation on their farms.



43
5. Lack of credit was mentioned as one of the main bottleneck in input acquisition. This is due to
stringent requirements imposed by the financial institutions, requiring collateral and reluctance on their
part on account of perceived risk associated with small holder farmers.

6. Poor information access and transfer was raised as a concern, although the MoA extension staff is
visible on the ground and reacting quickly to farmers‟ needs. However, the number of the extension could
be increased to improve on outreach.

Farmers‟ felt the need to improve information flow among them through exchange tours and farmer field
schools as well as creating information dissemination points at the divisions and market centres. There
could be need to build a durable platform for the information exchange and appropriate packaging of the
knowledge and information through instructive materials in farmer friendly manner.

7. Farmer organization. At the national level there is the Kenya National Potato Farmers Association
with a presence in the district. However, this organiasation is still nascent and need to be strengthened to
take up its role in assisting the farmers. There are also several commodity specific farmer groups in the
district. A summary of the main constraints in potato production chain is provided in table 12 below.




44
Table 6: Constraints in the Potato production chain and recommended Interventions
 CHAIN LINK         CONSTRAINTS                           CAUSE                              EFFECT                                    RECOMMENDED INTERVENTIONS
Input Supply     Inadequate availability of   Low level of investment in seed     Low productivity and poor quality       Support farmers groups seed multiplication and certification efforts,
                good quality potato seed      production by KARI and seed         product                                 encourage adoption of improved seeds and teach positive seed selection
                                              multipliers
                High cost of agrochemical     Lack farmers organization and       Low utilization of    inputs and low    Formation of farmer groups/cooperative for farmers to achieve
                Inputs                        joint sourcing and                  yields and margins                      economies of scale in input sourcing and distribution. Reduce tax on
                                                                                                                          concentrates and packaging materials
                Access to capital/Credit      Stringent bank requirements         Low utilization of inputs               Create a credit window/ financial services scheme for farmers to access
                                                                                                                          low cost credits for input purchase, promote farmer bases SACCOs.
Production      Low and poor produce          Limited technical knowledge on      Low price margins and returns           Training and capacity building for farmers on good crop husbandry
                quality                       crop production,                                                            (GAP), use quality seeds, positive seed selection, and post harvest
                                                                                                                          handling to improve technical skills and increase productivity. Strengthen
                                                                                                                          extension services. Encourage contract farming to stabilize quality
                High incidence of diseases    Low awareness and training of       Low productivity and poor quality       Strengthen extension services and FFs to introduce new technologies,
                and pests infestation         farmers on IPM ,lack of crop        product                                 provide training to farmers on IPM and on-farm demonstration.
                                              rotation
                Inadequate      water   for   Climatic change                     Low productivity, variable prices due   Better timing of production; improve quality and on-farm storage,
                sustainable           crop                                        to glut and shortages                   Support investment in water harvesting and micro irrigation
                production and seasonality                                                                                infrastructure.
                High farm level post          Lack of technical skills on         Loss of produce and          reduced    Support establishment of appropriate on-farm handling, packaging and
                harvest losses (10-15%)       produce handling &, storage         income to farmer                        storage, facilities to reduce post-harvest losses, develop materials and
                                                                                                                          conduct training on product handling.
                Poor rural access roads        Low         investment        in   High transportation costs,       low    Support rehabilitation of identified rural access roads as indicated in the
                                              development of rural access         returns and inaccessibility             action plan to reduce transportation.
                                              roads and maintenance
                Lack       of      farmers    Small scale multiple enterprises    Weak control of the production          Facilitate formation of farmers association/federation/cooperatives,
                organization                  unable to work together, small      chain. Exploitation by higher level     sensitize and train farmers on attitude change and farming as a business
                                              volume production,         farmer   chain actors.
                                              attitude and lack of trust          Low      bargaining   power    and
                                                                                  economies of scale




45
4.1.6.8 Recommended Interventions

In order to systemically address the foregoing bottlenecks in the potato value chain at the production
level the following interventions are recommended:

     1. Increasing Availability of clean planting materials. Support to improvement of quality
         potato seed by streamlining the seed potato subsector to improve availability of clean planting
         materials. This inter-alia would include support to farmers groups and complimenting efforts of
         the private sector NGOs

     2. Improving Produce Quality. One of the causes of poor –low quality of produce was attributed
         to use of poor quality potato seeds, lack of technical knowledge on the part of SSF. In giving
         support to improving yield and product quality, farmers should be encouraged to use quality
         certified seeds from contracted seed multipliers/farmers groups. This can be achieved through
         improved extension service by the Ministry of Agriculture in collaboration with KARI, ADC and
         KEPHIS to increase seed production and certification.
     3. Training and capacity building of farmers. It was noted that while the MoA technical staff
         and farmers have the basic skills on seed and Ware potato production and agribusiness, there is
         still a gap in knowledge on the use of agro chemicals, good agricultural practices and agribusiness
         development, hence the need for enhanced training and capacity building on the importance of
         using corrects seeds, production scheduling, farm input application and management and
         integrated pest management. This can be achieved by through collaboration with relevant
         service providers and strengthening the MoA extension services to undertake farmers training on
         agribusiness development and strengthening farmer field schools, demonstrations and developing
         simple training materials and manuals. Use armers‟ Field School (FFS) in integrated crop
         management. Farmer-to-Farmer transfer of technology and Village Extension Worker
         (VEW) are some of the other approaches that can be adopted for the wider diffusion of
         technologies and practices
     4. High Cost of Production. Assist the Potato growers in reducing their cost of production and
         achieve competitive and comparative advantage over the import... As discussed earlier the seed
         management has the biggest impact on the cost followed by disease management. Reduction in
         the cost of production can be achieved through;
             a.   Adoption of appropriate variety suitable to location specific conditions,
             b. Use of quality seed
             c. Adoption of improved production management practices


     1. Farmers Association: Farmers Association is an important institution that assists farmers in
         produce marketing and advocacy for improvement in business environment. There is need to
         support KENAPOFA to be the chain leader the subsector. Encourage the potato Common

46
        interest groups to register with the association. In addition, there is need to facilitate potato
        stakeholder‟s Forum to improve dialogue and exchange of information and experiences. These
        could be achieved through capacity building, farmer‟s organization development and adoption of
        Farmers field‟s schools. (FFs) and demonstrations.


        Opportunity exists for farmers to increased yields through increased use of certified seeds
        and enhanced production skills.

4.1.7 Potato Marketing and Commercialization


Potatoes in Kenya are marketed mainly in the local and domestic markets. Potato export is still minimal
and insignificant. The market outlets for potato exist virtually in all urban and the rural areas in the
country. Approximately 80% of national potato production is commercialized fresh for household
consumption through wholesale, retail and processing systems. The market for potatoes, however, still
appears ad-hoc and static, unlike in other crops such as maize, tea and coffee where marketing is
organized. The market chain actors appear to remain in same situations without any visible horizontal or
vertical movements in the value chain.

4.1.7.1 Market Segments and Channels

The main products traded in the market are fresh potato and processed potato crisps and chips.

The main attributes of the product considered by the market include the color of the skin and size of the
tubers. The consumer preferences are driven by taste and usage. For example the French fries processors
prefer white skinned potatoes and those with fewer noodles.

Four distinct market channel segments were identified for potato as a commodity in the district. These
are;

            1. Farm level marketing
            2. Market places
            3. Processing
            4. Consumption.

Each segment performs different functions and several actors are involved along the value chain.




47
4.1.7.2 Market Chain Actors

The market is dominated by a large number of intermediaries. During the focus group discussions with
traders in the district, the following actors were identified; Brokers/middlemen, transporters, wholesalers
and retailers. Processors and supermarkets provide avenues for marketing of value added products. A
summary of main Actors and their roles in the potato marketing chain is provided in table 13 below

Table 13: Actors and their roles in the Potato marketing chain
   MARKET CHAIN                     CHAIN ACTOR                                   ROLES/SERVICE
     SEGMENT
Farm Level marketing      Small scale farmers (10,000 SSF) and 30   Harvesting, sorting, grading and      pricing of       Price variations
                          farmer groups                             potatoes                                               Poor market inform
                                                                                                                           Limited value addit
                                                                                                                           Poor and unstandar
                                                                                                                           Time of harvesting
                          Brokers/Middlemen.(A few individuals      Identifying produce,    harvesting, negotiating        Not organized nor
                          usually    resident within the local      prices and packaging                                    legal recognition,
                          community)                                                                                       Brokers fix prices a

                           Transporters ( A few individual          Transportation of produce to market places             Few transporters
                          transporters from outside the district                                                           Poor access roads
                          hired by buyers)                                                                                 Produce consolidat
Market Places             50 Wholesalers across 3 main wholesale    Buying, bulking and selling produce to retailers,      High transportation
                          markets                                   processors and institutions                            Fluctuating offer p
                                                                                                                           Poor market infra
                                                                                                                            water and sanitation
                          300 Retailers, Vendors and hawkers        Bulk breaking and retailing produce in debes, and      Small and intermitt
                                                                    tins to individual consumers                           High buying prices
                                                                                                                           Unsold produce
                                                                                                                           Poor market infras
                                                                                                                            and sanitation, elec
                          Local Authority.                          Cess/Levy collection, provision of market              Budgetary limitatio
                                                                    infrastructures and facilities and governance          Weak enforcemen
                                                                                                                            compliance require
Processing and    value                                             Value addition and commercialization of potato         Limited value adde
added products            5 Small Scale processors. Midland         crisps and chips                                       Low quality potatoe
                          processors, Gwathika ni Igai Women                                                               Lack of and high co
                          group, ATC Oljoro-Orok, Kipipiri
                                                                                                                           Limited technical k
                          processors,
Supermarkets              5 Supermarkets, Kiosks, groceries, fast   Selling fresh and processed potato chips and           Competing shelves
                          food chains                               crisps                                                 Poor quality
Consumption               Institutions,   Schools     and   local   Consumption of     potatoes and value added            Quality
                          restaurants, hotels and Canteens          products                                               High consumer pri
                           60,000 Households and farm families      Consumption of     potatoes and value added            High consumer pri
                                                                    products                                               Low quality of pota


4.1.7. 3.Farm Level Marketing.

The principal actors at the farm level are the small scale farmers and the broker or commission agents. A
number of primary marketing and value adding activities are carried at the farm level as indicated in Table
14 below.




48
Table 14: Farm level marketing activities
VALUE ADDING ACTIVITIES               MARKETING ACTIVITIES                        OBSERVATIONS
Timing of Harvesting            Pricing negotiation                       Time of harvest and maturity of
On farm Storage                 Search for buyer and market information   crop impacts on produce price
Loading                          Transportation of produce                On-farm storage is not widespread
                                                                          or practiced and is often lacking
Packaging                                                                 Use of extended bag is common,
                                  Promotion effort                        hence     need     for     enforcing
Sorting and grading                                                       harmonization       of    packaging
                                                                          standards
                                                                          Sorting and Grading is visually
                                                                          done by size and quality


The farmer undertakes harvesting of the crop, sorting and price negotiations with the broker, the later
undertaking almost all the marketing transactions including grading, packing and transportation of the
produce to market places.. Thus, the farmer who is the producer is at the lower end of the chain and is
condemned to be a price taker and has no decision making role in these activities only makes a decision
on time of harvesting, grading and sorting. These transactions may also occur at some other point where
the farmer hands over ownership of the product to the next value chain participant.
4.1.7.4 Farm-level Brokers.

The middlemen or” brokers”(Market Kings) as they are commonly known are usually residents and
members of the community directed or hired by buyers on a commission basis to assemble the crop and
to negotiate for a pre-agreed price. The broker on behalf of the buyer contacts the farmers often leaves
bags and may even pay a deposit to secure a given quantity of the crop to be delivered. The broker is
responsible to buyers for maintaining quality standards and ensuring correct quantities are delivered.
Farmers reported that quite a substantial part of the marketable volumes, the bulk, about 80% of potatoes
produced in the district, is marketed through the brokers. The brokers have very good trade relationship
with the wholesalers and even retailers. They also regularly exchange market information on demand and
prices

Due to their small sizes and lack of organization, farmers cannot generate economical volumes to market
for themselves and benefit from economies of scale. The farm level brokers make opportunistic margins
as farmers lack information to negotiate prices and have no other market channels.

The presence of brokers in the marketing channel is viewed differently, sometimes as a menace, exploiter
and barrier to flow of information by both farmers and traders alike. Producers complain of exploitation
by brokers as much as they acknowledge they fulfill a role in the marketing chain, mitigating market risk
by directing supply and demand network. More importantly they are the main channel linking farmers to
markets. However, as a result of their presence there is no direct contact between the farmers and the
final market outlet.

Their key competencies are that they have the entire chain information in terms of produce seasonality,
buyers, suppliers and prices.

49
It was noted that these brokers seem to operate in collusion and in close businesses relations with their
clients and therefore experience little competition leading to market imperfections. Given their important
role, there is need for their registration, education and mainstreaming in the market chain.

4.1.7.5 Grading, standards and packaging

Potato is one of those agricultural commodities where grading is minimal to differentiate the produce by
quality. This is because farmers have yet to appreciate the benefits of grading and that the produce
payment system is uniform and does not recognize quality. The study showed that produce quality was
only visually distinguished by size and colour as the main criteria for determining quality and price at all
stages of the chain... Establishment of grades and enforcement of standards could encourage product
differentiation, better pricing and improved returns to farmers and traders.

The common and standard unit of marketing potatoes is the 110 Kgs bag. The observed practice is that
packaging is supplied and carried out by the broker at the farm. It is important to note here that this raises
the cost of produce, the farmer unconscious of it, hence lower produce price. The continued use of the
„extended‟ bag has reflected pricing deficiencies with consequent loss of revenues to farmers and traders.
The “extended” bag (120-150 kg) has been used to deny farmers their rightful share of the revenue as the
bag is sold at similar prices to the ordinary bag without reference to weight. Therefore, there is need to
enforce the use of standardized packaging to improve farmers income. A strong institutional mechanism
involving farmers, police and local authority is imperative to instill compliance.




50
4.1.8 Market places

A number of well established marketing channels for distribution and sale of potatoes were identified.
These comprise of market brokers, wholesalers and retailers.

4.1.8.1 Market -Level Brokers. At the wholesale markets, the brokers intermediate between demand
and supply. They usually approach transporters or lorry operators and offer to sell the potatoes at
negotiated prices and commissions. Often times they match up buyers and sellers and help them negotiate
the price. All brokers irrespective of their level do not buy the produce themselves and operate on a
commission basis which must be paid regardless of whether the trader losses or gain and so they are not
really traders but service providers. The broker, at the time of study, sold potatoes in the wholesale
markets at between shs 1,100 and shs 1,500 per 110 kg bag. Smaller scale agents distribute smaller
quantities down the line of the marketing system providing services such as re-packaging and hauling.

4.1.8.2 Wholesalers. Farmers reported, approximately 20%of produce is handled by wholesalers.
Wholesalers normally bulk the produce and may even grade and store them for a while and are able to sell
in individual bags. Other wholesalers even break the bulk and sell in smaller quantities e.g. a half bag,
debes (18 kg) as may be required by the customer. At the time of the study, wholesalers were purchasing
potatoes from the market-level brokers at between ksh 1,350 and 1,700 and sell at shs 2000 or higher
price per bag.

4.1.8.3 Retailers: These retailers include a wide range of entrepreneurs from the traveling trader, village
road side vendors, hawkers and fixed location traders. These handle about 45% of produce in the district.
They retail whenever they can find space, along streets or within and wholesale markets. At the time of
the study, the larger retailers buy in wholesale units from the established wholesalers or market brokers in
the market place at between shs 1,800 and shs 2,200 per bag and sometimes from the farms at lower price
and transport produce by pick-ups, public transport or bicycles to the market place. The retailers break
bulk even further by selling in much smaller amounts, in heaps and tins, which are displayed and specified
in terms of various values usually shs 10 or Shs 20, per heap or tin of potatoes.

4.1.8.4 The Traveling Trader: These are the traders who go to the farms to buy, consolidate produce
from widely scattered farms and transport to the market places. They normally pay the farmers in cash
and assume ownership of the produce at the farm gate and bear all the trading costs hereafter until they
sell the produce. A small quantity of potatoes usually 1-5 bags or less is marketed directly by producers to
the traveling traders.




51
4.1.8.5 Transporters: These are individual transporters who use their own trucks or Lorries to ship
produce to wholesale outlets at a fee. They commonly rely on market brokers to locate customers for
them for transshipment of produce to local and external terminal markets such as Nakuru and Nairobi, or
deliver directly to storeowners, or institutions. It was observed that there were only a few transporters and
most of who came from outside the district. The transporters perform a remarkable role in the marketing
chain as they ensure daily availability and distribution of the produce. These transporters are just involved
in the transport business and are not involved in the potato trade in any other way only in a few instances
when they do both.. The Lorries ranged from 3-5 tons canters to 7-10 ton Lorries. The hire rates for
transport to main urban markets were fairly constant throughout the year within the district. Traders
owning their Lorries would deal in        50-100 bags a day depending on capacity of the vehicle. Smaller
readers would combine to hire transport. Farmers and small traders reported that they get market
information through the truck drivers too.
4.1.8.6 Local Authorities. The wholesale markets are within the jurisdiction of respective local Town
council Authorities, being the Ndaragua, Olkalau and Ol-joro-Orok town councils. Irrespective of the
category, the wholesalers and retailers at the designated market places are taxed per bag by the Town
Council Authorities a fixed fee of ksh 20 per day. A fixed location fee of ksh 200/per month is also
charged a fixed trader to operate at the whole sale market. The traders are charged a one -time fee of Shs
300 per lorry load into the market place.

The main market segments for fresh and processed potato products are the households, institutions,
hotels and restaurants. Hotels and the local chicken restaurants buy potato mostly from the wholesale
markets and retailers for frying into chips and is an important segment of the potato market outlet. This is
an interesting market segment since their potato requirement is of less stringent quality than for
processors.

In household consumption sector, the market can be divided further into “Rural” and “Urban”
consumers. The distinct characteristic of urban areas is high population and they therefore have a high
demand for processed potatoes. In this segment consumers get their products from the local             street
vendors and small chips retail outlets.

Potatoes have become a major component in the diet of many schools, hospitals and the prisons which
have introduced potato and chips in their menu. The household, however, remains the end market for
potatoes. Potatoes are consumed in nearly all households in both urban and rural areas in the country.
The per capita consumption, however, is still low at about 28-30 Kgs. Supermarkets have become major
outlets for potato crisps most of which is sourced from small and medium size processors.

The most distinctly observable source of new growth in demand for potatoes is in the restaurants and
hotels and small scale processors that use it to make potato crisps and French fries.



52
4.1.8.7 Processing and Value Addition: Although the value addition starts at the farm level when
the farmer sorts and bags the produce, the primary value addition begins with processing of the
commodity into potato chips and crisps by the          small scale processing enterprises and individual
entrepreneurs .

Processing of potato into crisps and chips begins with washing, peeling and cutting, frying, drying
(solvent extraction) and packaging. The main raw material input for processing of potato chips is potato
while others inputs include processing equipments, cooking oil, salt, energy, packaging material, and in
some cases flavoring. Peeling of Potatoes involves removal of the skin and slicing into various sizes ready
for frying. Data captured from the ATC, Oljoro-Orok indicated an estimated investment cost of Ksh
400,000/= for a small scale crisp processing unit/

From field observations, a few value addition activities were being undertaken by Women Self help
groups and individual entrepreneurs. Notable ones included Gwathika ni Igai Women Group (Oljoro-
Orock) Kipipiri Foods Ltd and Midland Processors Ltd all undertaking small scale processing of potato
crisps. The Agricultural Training Center (ATC) at Oljo-Ororok was also identified as a potato processing
demonstration site and training of small scale agro-processors in value addition. It was observed that
there is still little value addition of potatoes and that the level of production of potato crisps has not
reached sufficient volume and quality for commercialization. The Super markets, local kiosks and
groceries and canteens are the dominant outlet for processed potato crisps.

4.1.8.8 Physical Markets and Infrastructure

Daily markets include both wholesale and retail markets in the main urban centres. There are five (5)
main wholesale markets which also function as retail markets in Nyandarua. These included Nyahururu,
Ndaragwa, Olkalou, Kasuku and Oljoro-Orok .These markets                are outlets for potato and other
agricultural produce in the district and are open on average daily with main market days twice a week on
alternate days. There are also a number of other emerging rural market centers for potato such as Mailo
Inya, Shamatta in Ndaragua and Passenga and Ndundori in Ol-Kalou and Charagita in Ol-Joro-Orok.
Nyahururu wholesale market although outside the Nyandarua district, is the biggest wholesale market for
the district where most traders converge for further bulk breaking. It is the most vibrant whole sale
market and assembly point in the potato marketing system in the district. .

It was observed that these markets are generally in poor physical conditions and hygiene which make
trading difficult especially during the rainy seasons. It was noted that the wholesale markets also lack
proper storage and cooling facilities where the produce can be held in good condition for any appreciable
length of time. In some cases these markets also lack electricity, water and sanitation facilities. For
example, the Nyahururu wholesale market is overcrowded and has limited access into and out of the
facility. Retailing is difficult on the lanes inside the markets. Most of these markets with the exception of
Nyahururu operate open air style. Traders felt that upgrading and or provision of market sheds, stalls, and

53
electricity, water and sanitation facilities at the main wholesale markets would improve the trading
environment and hygiene. List of markets mentioned for rehabilitation is provided in appendix 4.

However, the potato grown in Nyandarua supplies not only the local consumption but also the domestic
market. The market extends beyond the borders of Nyandarua district to Nakuru and Nairobi (Wakulima)
as the main external markets, and to as far as Mombasa (Kongowea).

4.1.8.9 Market Constraints and Recommended Interventions

The value chain analysis reveals that the single major marketing risk as perceived by the traders in the
study district is the low and fluctuating price of potatoes. This is re-enforced by a combination of other
marketing constraints such as long distances to markets, poor physical market infrastructure, poor access
roads and lack of market information that expose traders to exploitation by middlemen. Traders cited the
following bottlenecks to trading including;
       1. Poor Physical market infrastructure and facilities. Traders raised concern over the lack of
           trading facilities such as market stalls, sheds, storage, water and sanitation at the market places
           as major limitations that make trading uncompetitive. Improving whole sale and retail market
           centers with necessary auxiliary facilities would greatly improve trading

       2. Price fluctuations. Potato production is highly seasonal with glut production resulting in
           depressed producer prices and high post harvest losses. Seasonality is purely a climatic change
           issue where the farmers have little control over, and this coupled with over supply in
           production is generally blamed

       3. Poor access roads:       Traders mentioned poor access roads leading to producing areas and
           high cost of transport as one of the major causes to inaccessibility of markets. This
           consequently leads to high market price.

       4. Multiple levies. In particular, traders raised the issue of high and multiple levies /cess
           charged by the local Authorities‟ and Town Councils on the movement and sale of the
           produce. This was recognized as one of the major bottlenecks limiting their potential to
           maximize business returns. Reducing the number of levies imposed on traders or
           consolidating them into a cheaper one-stop charge would attract increased use of the market
           facilities and improve traders profitability
       5. Low level of processing/value addition, primarily due to the high costs of processing
           equipments, lack of credit and limited technical know-how




54
Table 7: Summary of Constraints per chain link and recommended interventions
     CHAIN       CONSTRAINTS                    CAUSE                          EFFECTS                     RECOMMENDED INTERVENTIONS
      LINK

Market trading   High     cost    of   Poor access road network,      High price and low sales        Improve existing      rural access road infrastructure
                 transportation        high cost of fuel,                                             network at designated small holder producing areas to
                                                                                                      reduce transportation cost

                 Poor        market    Weak market information        Fluctuations in prices          Establish rural based market information dissemination
                 information flow      dissemination strategies                                       points for information briefs on prices, supply, and
                                                                                                      demand trends, and enhance use of ICT ,mobile
                                                                                                      telephony and media related technology and extension
                                                                                                      services


                 Poor     packaging    Lack of awareness on value     Price variability. Use of the   Support enforcement of       standards on quality and
                 standards      and    of produce grading and         extended bag and other          packaging and facilitate      strong surveillance and
                 compliance            packaging standards            variable    packaging     and   institutional compliance. Promote responsible trading
                                                                      measurement standards           ethics

Market           Poor         market   Low investment by local        High cost of trading. Health    Support upgrading of             the existing market
Infrastructure   infrastructure and    authorities     in    market   hazard to traders and           infrastructures into modern market facilities, including
and facilities   facilities            infrastructure development.    consumers                       market stalls, sheds and produce storage

                                       Budgetary constraints

                 High and Multiple     Need to maximize revenue       Increased cost of trading and   Consultation with local authority with a view to
                 Levy by Local                                        reduced profitability           establishing one stop levy. Formation of the market
                 Authorities                                                                          traders associations

Processing       Low          value    Lack of awareness on value     Limited value added products    Sensitize and train small scale farmers and processors on
                 addition              addition, high cost of         and diversification             value addition. Link small scale           processors to
                                       equipments and lack of                                         appropriate processing technologies,
                                       capital    to     purchase
                                       equipment.




55
4.1.8.11 Recommended Interventions

1. Improving market infrastructure and facilities: It was noted that the physical conditions and facilities
     of the markets are inadequate and in poor state. In view of this the project should support the
     construction of market infrastructure and facilities including provision of market stall, sheds, storage,
     electricity water and sanitation to improve trading environment in the main whole sale markets.

2. Improving access roads. To mitigate the high transport costs, traders mentioned the need for the
     rehabilitation of the access roads, in particular, the Pessi-Mahinga and Karai-Nyakinyua roads in
     Ndaragua, and the Mumbi –Shiranga and Kahii-Olobolosat roads in Olkalau and Oljoro-Orok
     respectively as important considerations for action

3. Value addition; Based on the observation and analysis of information captured on the potato
     commodity, it was noted that limited value addition and/or processing of potato is being undertaken. In
     view of this it is recommended that, SHoMaP should work in collaboration with institutions such as
     KIRDI, KARI, ATC and MOA to Support some pilot processing units in selected divisions/areas which
     would act as demonstration projects.
         Business opportunity exists in establishing cooling and storage facilities and value addition through
         diversification.

4.1.8.11 Marketing Channel

The main marketing channels for potato (fresh and processed) in Nyandarua, right from the farmer to the
consumer, basically consist of wholesalers and retailers. Data from the local authorities showed that on
average over 300 traders operate daily at the wholesale markets, marketing not only potatoes but also other
agricultural produce. Retailers are the most vibrant segment of the market channel. Typical channels that
potato traders follow to the ultimate destination for consumption are basically in five segments as illustrated
in figure 9.
Figure 9: Potato marketing Channels in Nyandarua District



                                  Assembly trader                  Rural wholesaler         Urban Wholesaler
               Retailer                     Consumer

     Producers

                                      Rural wholesaler          Retailer                      Consumer




                                      Retailer                      Consumer




                                      Processor                     Retailer                  Consumer

56
4.1.9 Costs and Margins

Agricultural trading is a high risk business because of market imperfections and lack of supporting services.
The most significant cost to the farmer is the potato seed and fertilizer. On the other hand potato traders
incur three main costs in buying the produce, transportation and market levies.

4.1.9.1 Gross Margin

The Gross Margin is sometimes called, the income above variable/operational costs, and is often justified as
a practical technique for identifying the economic "best-bet" enterprises for farmers. It is also a good method
for profitability assessment since it uses information that farmers have readily at hand, including costs of
production, marketing and revenues from products. Calculating gross margins for the farmer was derived
from information provided by farmers and traders on costs and revenues and the share of each actor as the
product moves along the chain during the field study.

As given in the Worksheet in Appendix 1, the total farm level cost of producing potatoes at the time of
study was estimated at shs 33,200 per ha, comprising mainly of the inputs. Of this seed represents the most
important cost item, followed by fertilizers, and land preparation. The gross margin received by the farmer a
according to the estimate was shs 46,800 per ha respectively. The gross revenue stood at shs 80,000 per ha.
However, it was observed that establishment costs varied from one farmer to the other depending on the
level of input usage and crop management. At this level farmers are just breaking even if the opportunity
cost of labor is taken into account.
4.1.9.2 Marketing Margins

During discussions with traders, it was noted that their marketing margins depended on how competitive the
market is, seasonality and the distance from the markets. Basing on variable cost, selling and gross trading
incomes, and the value share for each actor in the potato marketing chain was derived as summarized in table
10 and figure below.
Table 8 -Value share of actors in the marketing chain
1                  2          3               4                5               6               7
Chain actor        Variable Selling Price     Gross            Added Value     Gross           % Value
                   cost                       income                           margin%         share
Farmer             415        800             385              800             48              32
Market broker      800        1200            400              400             33.3            16
Wholesaler         1745       2000            255              800             12.75           32
Retailer           2200       2500            300              500             10.4            20
                                                               2,500                           100




57
At the time of study, the farm broker
bought potato       at shs 800 per 110 kg bag                             Value share of actors in the market
                                                                                         chain
and sold it to the wholesaler at shs 1,200               Retailer,                                Farmer,
per bag, giving them a margin of shs 400                 20, 20%                                  32, 32%
per bag reflecting their commission. The
                                                                           Wholesaler
wholesaler on the other hand sold the                                       , 32, 32%
produce to the market retailer at shs 2,000
per bag who later sold it at sh 2, 500 per                                                                           Market
                                                                                                                   broker, 16,
the bag, to the retailer, being the final                                                                             16%
                                                                              Farmer            Market broker
consumer retail price, earning a margin of
shs 500 per bag. There is, however, huge variation in                       buying and selling prices among the actors
downstream, reflecting the apparent disorder and market imperfection in the subsector. The market value
share reflects the size of the value or the percentage of the final retail price each actor in the chain manages
to capture as well as the cost and risks each actor put in the chain. In-terms of revenue, the farmers gross
income is a big share of his/her total revenue, being 48% and 32% gross margin and value share per bag
respectively which could be higher with an increase in farm gate price.

4.1.10 Governance and Services
The value chain governance essentially determines the success of intervention strategies. In the potato
commodity value chain, several institutions and organizations were identified that play various roles. These
included the MoA, KARI, KEPHIS and Local Authorities. A summary of these institutions and their roles is
provided in the table 15 below.

Table 9: Summary of the major Public stakeholders in the Value chain
           NAME                        SPECIFIC SERVICE                                     LIMITATION
                                          PROVIDED

Input Supply Systems and services
KARI-Tigoni                      Research      in    basic     seed,    Low level of research and ,budgetary constraint and high
                                 multiplication, and distribution       cost of royalties
Agricultural       Development Multiplication and distribution          Limited land and financial resources to purchase basic
Corporation (ADC)                                                       seeds for multiplication and high cost of basic seed
Kenya        Plant       Health Quality Assurance                       Inadequate field staff to carry out inspection and
Inspectorate            Services                                        certification
(KEPHIS)
Pest Control and Product Board Licensing, policy enforcement,           Weak capacity to effectively control and monitor
(PCPB)                           and Monitoring of accreditation        standards and distribution of agrochemicals, long period
                                 and application of chemicals and       for registration for local reformulation and re-packing.
                                 pesticides use
Ministry Of Agriculture          Distribution of seeds and              In adequate extension staff trained in agribusiness
                                 provision of Extension services        development and budgetary constraint

Marketing Systems:

Ministry of Cooperative and       Farmers       cooperative       and   Weak collaboration with MoA
Marketing Development             marketing
Local Authorities                 Provision of market physical          Budgetary constraint and weak capacity to monitor
                                  infrastructure and surveillance       regulations
Value addition

ATC-Oljoro-Orok                   Training of small scale agro-         Budgetary limitations
                                  processing and demonstration



58
4.1. 10.1 Governance Issues

Within the potato value chain map, the main governance issues identified were concerned with chain
relationship, supporting institutions, coordination and management, input supply, technical capacity building
for farmers and actors. The lack of compliance with market standards and absence of sub chain policy also
raised governance issues

4.1.10.2 Chain Relationship

From discussions, farmers reported strong relationship with extension services as evidenced by their
frequent interactions. Farmers interviewed demonstrated good knowledge of where to source farm inputs
suggesting effective interrelationship between farmers and input suppliers. However, the link between the
farmer and the buyer tends to be weak, an ad-hoc one- time affair, and transactions are highly personalized
with the broker. There is little communication between the farmer and traders. This has lead to high level of
mistrust on both sides. Strengthening relations between the producer and traders would benefit both. This
can be facilitated through regular sub sector forums.

Market transaction costs were influenced by traders and distance to the market of destination. From the
traders point of view a system that would identify and ensure source of supply would save them time and
transportation cost. This would best be achieved if farmers were organized themselves. Developing chain
partnerships and    respect to rules and market standards are equally important to sustain the value chain
relationship. The farmers Common Interest Groups (CIGs) and KENAPOFA, if strengthened, would go a
long way in improving farmer- broker-trader relationship and transparency in the value chain.

4.1.10.3 Input supply

KARI – Tigoni can only produce 4% of the national potato seed demand. ADC and a few farmers groups
augment production through multiplication in their farms. In spite of this, the current seed production is
inadequate to meet the market demand, besides being expensive beyond the means of many small scale
farmers who are forced to rely on their FSS for planting. The in-adequate availability of seed is exacerbated
by lack of institutionalized system for seed and planting materials development, multiplication and
distribution to farmers. The way forward is to support farmers‟ groups for quality seed multiplication to
increase production so that improved seed can be available to the farmer at affordable prices.

4.1.10.4 Technical capacity building

Currently potato farmers are not well connected with markets. They wait for brokers and other traders to
come and buy, who often offer very low prices. They produce small- low quality quantities that are little
geared to market needs. They lack adequate technical skills on crop production,      disease and post harvest
management, organizational development, financial management and generally handling farming as business
enterprise. It is important to make these farmers crop specialists and given better farming skills so that they
can produce a better crop of higher quality. These technical packages can also be extended to the input


59
suppliers. Building engagement and alliances with private sector service providers to train farmers on
production and agribusiness would be vital for capacity building and chain upgrading in the sub sector.

4.1.10.5 Standards, Quality and Grades

Production quality necessarily involves the application of standards concerning the pre-harvest period,
keeping produce infection free and respect for grading and packaging standards. Standards are a set of
technical specifications that define the quality features, size, weights and packaging of a product. In the
market Standardization is when these are made uniform or consistent.

At the production level, quality assurance standard was observed in the input supply system as demonstrated
by attempts to produce good quality seed right from KARI through ADC to the farmer. However, KEPHIS
has not effectively provided adequate inspectorate services on the ground to ensure quality seed production,
partly due to inadequate capacity, thus there is, therefore need, first to strengthen KEPHIS‟s capacity to carry
out certification services and secondly to empower farmers to be able to produce and recognize good quality
seeds. The high cost of seed has also limited farmer‟s use of certified seed.

Grading of potato at the farm was rarely practiced, rather is done by observation while the rampart use of
“extended bags” packaging has not been adequately enforced as a weight standard measure in the potato
industry. This reflects weakness on the part of the relevant enforcement authorities. KENAPOFA which is
supposed to be the farmers‟ watchdog in this regard has not been successful in this effort. Compliance to
standards will improve trade in potato to become more remunerative and client oriented, thus give farmers
and traders a reference point for the level of quality and quantity consumers may demand as well as add
value to their business. Developing new and improved institutional arrangements for enforcement of
packaging standards would improve potato trading and business returns to both farmers and traders.

4.1.10.6 Institutional Constraints

Three main aspects, farmers‟, organization standards and market information were identified. The absence of
a strong farmers group and poor market information were noted. A well –functioning farmers group is an
important part of the market value chain and better trading conditions. In between producers and consumers
there is a network of wholesalers and retailers who sell potato. The traditional practice of finding sellers and
negotiating deals individually is costly and ineffective. The presence of a farmers group will set a forum from
where the farmer will receive training on proper crop husbandry, organizational development and facilitate
provision of trade information, access to financial services, stabilization of prices and building alliances with
other actors in the chain. This will also promote quality services to members, good governance and chain
relations. It is therefore imperative to adequately facilitate and support farmers groups for seed multiplication
to ensure increased availability of improved quality seed.

The market information and dissemination system in the industry is weak and inadequate. The MoA collects
a lot of market information on tradable agricultural commodities every other day; however, this is never
made public quickly enough for farmers and traders. Consequently, cheating, mutual suspicion and distrust

60
are rife between producers and traders. Collaborating with MoA and linking with the Kenya Agricultural
Commodity Exchange Ltd (KACE) would enhance the provision of market information and dissemination
to both the farmer and traders. Setting up rural based market and agribusiness information points at different
market and divisional centers, use of mobile telephony, radio and trade net system would offer updates on
prices and enable farmers and traders to identify, access and link with profitable market opportunities

4.1.10.7 Policy Leverage and Regulation

The business of farming and trading is strongly influenced by public policies, the most important ones being
laws, regulation and standards, taxation, public infrastructure and provision of services. A notable drawback
in the subsector is the absence of     subsector policy and lack of effective institutional coordination. No
institutional mechanism has been developed to establish efficient value chain of the commodity. Being a
major crop, the ministry of Agriculture should undertake a review of the horticulture policy with a view to
developing potato sub sector policy to guide the sub-sector operations. Policy development for the industry
can achieved through a consultative process involving all the stakeholders including private sector.

Local government authorities can promote better trading by ensuring good management, standards and
facilities in market places. They develop and monitor regulations on where to the traders can set up their
business, hygiene food items, standards and collect levies and cess on produce. Market levies, lack of storage
facilities, trading sheds, electricity, water and sanitation were some of the urgent problems to address to
improve potato trading. Interview with farmers indicated that movement of goods across divisions in the
district attracts double payment of cess. To this end, market levies should be rationalized into affordable
one-time stop fee, and visibly used to improve services at the market places. In addition facilities at the
market places should also be improved. The Local authorities can play an important role in increasing
efficiency and enforcing compliance to packaging standards, grades, weights and measures as well as
mediate and co-ordinate various stakeholders in observing standards.

4.1.11 Summary of Constraints and Proposed interventions

The farm to market value chain analysis has permeated the identification of deficiencies, and market –led
intervention activities that SHoMaP could support to strengthen the          potato market value chain and
improve returns to actors‟ long different points in the chain.

     1. The in adequate availability of quality potato seed is a major concern to the small scale holder
        producers. The study indicates that only about 4% of certified seed is available for local potato
        production, the bulk being common seed generated through the multiplication system. This is
        supplemented by FSS. Even with all these efforts, seed quality and supply still remains a challenge.

     2. Limited technical knowledge of farmers and input suppliers, was reported, with as high as 70%
        of farmers little equipped with technical knowledge and skills on good a agricultural practices
        (GAP), a situation which is blamed on low output and product quality.



61
     3. Poor Access roads: Across the district farmers cannot access the market or if they do at high
            transport cost, due to poor rural access roads. The study identified the major access roads in the
            three divisions of the district which farmer felt should be improved to enhance movement of
            produce to the markets.

     4. Poor market conditions: The physical conditions of the market places are poor with few facilities
            for shelter, market stalls, sheds, storage and low hygiene standards. Marketing takes place either
            within make shift structures, but mostly in open spaces. There is opportunity to improve the market
            infrastructures and facilities through a combination of public and private sector funding and
            participation.




The following is a summary of the major constraints ranked in their order of importance, and recommended
interventions for SHoMaP in the potato subsector.

Table 10: Summary of Constraint per link of the chain and recommended interventions
Chain      Link Constraints               Ranking Recommended Intervention
Level
Input Supply and       Inadequate quality potato    1    Support small scale          farmers groups to in           clean seed
services               seeds                             multiplication to increase production
Production             Limited          technical   2    Intensify technical training and capacity building of farmers and
                       Knowledge of farmers              extension staff through workshops to improve farmers
                                                         productivity through partnership with service providers
                       Poor         access   road   3    Support the rehabilitation of identified             rural access road
                       infrastructure                    infrastructure as indicated in the district action Plan
                       High price of inputs from    4    Facilitate formation of input dealers and stockiest association to
                       Agrochemical companies            gain economies of scale in input sourcing and distribution as
                                                         well as facilitating their access to credit facilities
Marketing              Lack of market and poor      5     Provide training to farmers on market survey and establish
                       market information flow           market information points for briefs on prices, supply, and
                                                         demand trends, enhance ICT and media related technology to
                                                         link farmers to market opportunities
                       Poor market infrastructure   6    Support the improvement and upgrading of the whole sale
                       and facilities                    markets as identified in the district action plan
                       Low value addition                Support investments in appropriate equipment and technology
                                                         acquisition for value addition. Support training and capacity
                                                         building for small scale processors on value addition through
                                                         partnership with ATC-Oljoro-Orok




62
4.2: The Cabbage Value Chain

4.2.1 Introduction


Cabbage is one of the most important
vegetables grown in Kenya for the local
fresh market. It is grown by both small and
medium scale farmers and marketed in
rural and urban areas. It is grown under
both rain fed and irrigated conditions. The
cabbage thrives under a wide range of
climatic conditions but better in cooler
temperatures. In addition, it can tolerate
hard colds, but severe freezes can be
damaging.                                     Figure 9: Cabbage vegetable

The cabbage flavor improves with cooler
temperatures because plant cells work to
convert starches to sugar to protect the
plant against the cold. The result is a sweet, fresh taste that surpasses that of store-bought greens. Cabbage is
mainly used for cooking and as a salad. It can also be used as livestock feed.

4.2.2 Cabbage Value Chain map
The cabbage value chain        has been presented in a conventional format with key function reflected
horizontally and the associated Actors or functionaries identified on the vertical scale. The value chain
comprises of input suppliers, farmers, traders and consumers. The activities of each actor are provided
alonsid. Market data indicate that about 80% of total production is marketed through traders and that the
industry experience high level of post harvest losses. The typical value chain map is illustrated in figure 11
below




63
Figure 10: Cabbage Value Chain

              10-15% wastage     10% of crop on                  75-80% of total vegetable production goes to market unchanged
                                 farm cons.

                                 Consummation                                                                         Consumption
          Input Supply                   Production                                      Marketing

          ,


                                              Small        holder         Local Market               Urban market
              Kenya      Seed,                                                                                               Househ
              Simlaw, EA seed                 producers,                                             Ndaaragu,               olds
                                                                          Stamatas,
              comp, Stockiest                 farmers,        input                                  Olkalau,
                                                                          Passenga,
                                              suppliers, CIGs                                        Okjoro Orok,
                                                                          Kasuku,
              Green     Acres,
                                                                          Mailo-Inya,                Nyahururu,
              KFA, Malewa                       Transporters                                         50 Retailers,
                                                                              20
                                                                          Ndondori,                  Kasuku
          Individual                                  (few)                                          Supermarkets            Instituti
                                                                              Wholesalers
                                                                          Gathanji
          Transporters:                                                                                                      ons
                                              Lorries,        Pick-                                  Vendors,
                                                                                                                             (schools
          Pick-ups,                           ups                                                    Hawkers
         KEPHIS,                                                                                                             ,
         KEBS, MOA                          MoA, ATC, NGOs,               Local Authorities, KACE, MoPH
                                                                                                   0 Wholesalers             prisons,
                                            SHEP,        NALEP,                                                      MoPH
         NCPB,                              Equity Bank


                                 Service providers:
                                                                                                                             Hotels,
                                                                                                                             restaura
                                                                                                                             nts

64
                   Activities of Actors in the Cabbage Value Chain



VC                  Inputs                                 Transportation                                                                      Consumption
function                                   Production                                   Trade           Transportation             Marketing


 f
           A                                             Loading     and    Loading         and         Loading         Buying        and
           C       Supply of            Nursery
                                                                                                         and
                                                                                                                                                     Buying
                                          propagatio     handling           unloading                                    selling                      product
           T        improved seed                                                                        unloading
                                          n                                 Buying and selling                           Bulk breaking                for
           I        seeds                Land                                                          Transportat
                                                         Transporting                                    ion                                          consumpti
           V       Distribution of       preparation                       Transport                                    Storage
                                                                                                                                                      on
                                         Transplanti                                                   Cess
           I        fertilizers and                                         Cess payment                 payment         Value addition
                                          ng
                    agrochemicals                                                                                                               
           T                             Fertilizer                                                                     Cess payment                 Quality
           I       Advice to            Weeding                                                                                                     and price
                    farmers               ,IPM                                                                                                        differentiat
           E                                                                                                                                          ion
                   Credit               Harvesting
           S                              Grading/so
                    institutions          rting,
                                         Packing
                                         On-farm
                                          selling

       A               Input            Farmer and       Vehicle Owner                                 Lorry Owner             Retailer
                                                                                      Broker                                                        Individual
                      Suppliers       Farmer Groups
       C                                                                                                                                            Households
       T
       O
                    (Public &         Workers              Porter                  Wholesaler         Lorry Driver            Kiosk                    Public
       R              Private                                                                                              Owner/Hawker              Institutions
           S       institutions)                                                                                                                     (Hospitals,
                    Extension                                                                           Handcart                                    Educational)
                     services                              Pickup driver        Mobile Trader            Driver              Supermarket               Private
                                                                                                                                                    Institutions (
                                                                                                                                                       Hotels,
                     Credit
                                                           Driver/              Rural vendor          Porter                                        Restaurants)
                   Institutions                                                                                            Processor
                                                           Cyclist
                                                           Cart driver




65
4.2.3 Input Supply and Distribution System


4.2.3.1 Seed supply

The main inputs for cabbage production include cabbage seed, agro-chemicals and labor. The main seed
merchants and distributors in vegetable seeds in the country were identified to include Kenya Seed
Company Ltd, East African Seed Company Ltd and Simlaw Seed Ltd from which local stockists in the
district purchase their requirements. Most of the seed requirement is satisfied through importation. In the
supply chain, the Kenya Plant Health Inspectorate services (KEPHIS) provides quality assurance services
ensuring that the seeds are certified at the point entry into the country and before they are sold and
distributed to farmers. Dealers indicated that cabbage seed was easily available in good quality and quantity
for purposes of production. However farmers indicated the need to avail these agrochemicals in smaller
repackaged affordable pack sizes.

The improved-local cabbage seeds- retails at ksh 120 per 50 mg sachet which farmers considered to be
affordable. On the other hand, the price of highbreed certified cabbage seed which retails at ksh 1200 for
the same quantity was somehow considered to be high. Farmers often germinate seeds in the nursery
before planting. In some cases farmers also plant the seeds directly. In addition it was established that the
Small stockiest lack capital and technical skills to adequately stock inputs and appropriately advice farmers

4.2.3.2 Other Inputs. A part from cabbage seed, SSF use few of the other inputs, which include
fertilizer, pesticides, and herbicides, are used in cabbage production. Farmers reported instances of poor
(adulterated) quality agrochemicals primarily because of the weak capacity of the PCBB to effectively
control distribution; general lack of awareness on the part of farmers and weak product labeling, suggesting
the need to enforce product labeling standards and accountability of registered distributors on the
authenticity of their products. Currently, fertilizers in the market are Compound, Supper phosphate and
Urea. The main fertilizer used in cabbage production is DAP and sometimes NPK depending on the soil
conditions. All of these inputs are imported by major Agrochemical companies, but are sourced locally
from input dealers including stockiest and merchants. Some farmers use compost manure instead of
fertilizers. The Pest Control and Product Board (PCPB) is the main regulator in the input trade, ensuring
registration of dealers and providing information and monitoring of quality standards. It was noted that
PCPB has not been responsive enough to encourage private sector in local formulation of cheaper
agrochemicals     because of long and restrictive registration requirements and high tax regimes that
discourage local formulation and re-packaging. In order to improve supply of agrochemicals

The strong presence of the government in the fertilizer market was noted although this has not crowded
out the dealers in the input trade. Price of fertilizer varies and at the time of study ranged from Ksh 2,500
to shs 2,700 per 50kg bag depending on location and distance from the source of supply and this has
followed some government guidelines.



66
The high fertilizer prices are a problem affecting all In- put dealers. This could be attributed to high internal
transport costs occasioned by both the poor road infrastructure and high fuel costs. In response to the high
prices, dealers should develop a strategy to engage the manufacturers/importers with a view to containing
price escalations. Coalescing themselves into an association within the recently launched Interim Input
dealers Association, would also give them economies of scale in procurement of fertilizers and other
agrochemical inputs. In addition the government should be encouraged to reduce VAT on the target inputs
as well as on concentrates and packaging materials required for local formulation with a view to reducing
cost of agrochemicals. The existence of the local retail outlets, most of which act as agents for
manufacturers, ensures that farmers can get the required inputs in the amounts they require.

4.2.3.3 Distribution System

The main actors in Cabbage seed distribution included the local seed merchants, agrochemical companies
and small scale stockists spread across the district. Some of the stockists are representatives of major seed
merchants. The Seed traders Association of Kenya is an important player in the industry with regard to
development of regulations in seed trade, however it is constrained by weak capacity. These actors are
illustrated in table 13 below:

Table 11: Main Actors in the input supply in the cabbage subsector
MAIN ACTOR                  ROLE/SERVICE                                                LIMITATION
72 Seed Supply companies.-(KFA, Seed companies,       Selling and distribution of       Weak geographical presence
Kenya seed company, East Africa Seed Growers, )       seed, fertilizers, chemicals,
                                                      training and technical advice
                                                      to farmers


Over 100 Agrochemical companies and Stockists:        Selling and distribution of       Smaller stockiest lack capital and
(Green Acres, Vetagro, Tumaini, Farm inputs, Merit,   seed, fertilizers, chemicals,     technical skills to adequately stock
Rurii)                                                training and technical advice     inputs and appropriately advice
                                                      to farmers                        farmers
Pest Control and Product Board.(PCPB)                 Policy and         registration   Weak capacity to oversee and control
                                                      ,licensing and regulation of      agrochemicals market
                                                      agro chemicals market
AGMAK                                                 Training        of        input   Limited capacity     and budgetary
                                                      dealers/stokists and farmers      constraints
Seed Trade Association of Kenya                       Harmonies the certification of    Weak capacity to develop and
                                                      seed across borders to limit      monitor of standards
                                                      inconveniences


4.2.3.4 Constraints in Input supply

During discussions, dealers cited lack of capital, high prices of fertilizers and agrochemicals and hybrid seed
as limiting their capacity to stock adequate quantities to meet farmers‟ needs. The lack of technical know-
how and coordination among them were also a concern. The high cost of improved seed was caused by
the low investment in local production of improved seed consequently leading to low utilization by farmers
and low productivity.

1. Limited access to capital: The other major constraint identified by inputs suppliers was the lack of
access to credit due to high of interest rates, lack of collateral for security and reluctance on the part of
commercial banks to lend to small scale traders on account of perceived risk associated with them. Efforts

67
to encourage linking input provision to credit facilities have enjoyed limited success. Most of the stokists
felt that the local banks and financial institutions have stringent requirements that lock them out from
accessing credit to stock their shops.

2. Limited technical Know-how. Discussions with Input traders indicated they lack the capacity to advise
farmers on appropriate application and management of                                        agrochemicals. This has the direct effect on
supplies and product credibility, suggesting need for training and capacity building

The main constraints reported by the input dealers are summarized in table 14

Table 12: Summary Constraints in Input supply and recommended interventions
                           CAUSE               EFFECTS                    RECOMMENDED
 CONSTRAINTS                                                             INTERVENTIONS
High      price of low investment in Low              sales and Support investment in highbred seed
improved seed      local production of margins                  production
                   hybrid seed
Lack of access to Stringent conditions Inadequate stock and Linking input suppliers to credit and
capital/credit     required by financial availability           promote input suppliers based SACCO
                   institutions
Limited technical Lack of training of Inability to provide Proactively train input stockiest
know-how        of stockists         on appropriate advice
dealers            agrochemical use and
                   management


4.2.5Recomended Interventions

1. Capacity building. The lack of technical know-how on the part of input dealers could
be addressed through training of input dealers a creating a platform for regular dialog
among stake holders including the major agrochemical companies.

4.2.4 Cabbage Production

Cabbage production in Kenya is carried out largely by the small scale holder farmers who typically are
operating their farms at very low levels of economic productivity. Production is characterized by low usage
of inputs, poor production husbandry and technologies. Fertilizer is not widely used, however, farmers
reported using pesticides/insecticides and herbicides for
                                                                                           Figure11 cabbage production trends in Nyandarua district
both pest and weed control. At the                                                  Cabbage production trend in Nyandarua north District
national level a total of 20,559 ha were                                             120
                                                     Production in thausand tones




planted with cabbages in 2006 rising to                                              100


24,892 ha in 2007.          Production of                                             80


cabbages    consistently   increased     from                                         60

248,523 tons in 2003 to 529,003 tons in                                               40

2005 before dropping to 416, 373 tons in
                                                                                      20

2006.
                                                                                       0

                                                                                                2005             2006              2007               2008
                                                                                                                         Year

68
Nyandarua is a potential cabbage producing area in the country where both local and improved varieties of
cabbages are grown. Cabbage production increased from 80,000 tons in 2005 to 86,000 tons in 2006 before
dipping to 78,185 tons in 2007 and increasing again to 102,963 tons in 2008, thus strengthening forecast for
increase in future production. The district accounts for nearly 50% of cabbage production in central
province. Table 15 provides past data and trend in cabbage production in the district. The table shows a
rather steady and rising trend in cabbage production since 2005.
Table 13: Cabbage Production in Nyandarua (2005-2008) tons
Year                2005              2006                       2007                      2008
                    Ha      Mt        Ha         Mt              Ha            Mt          Ha          Mt
National Output     20529 529,003     20559      416,373         24892         609292
Central Province    9562    239050    9641       241025          14370         359250      9,330       195,392
Nyandarua           4,000   80,000-   4,300      86,000          5783          78,185      5091        102,963
Districts
Percentage          42      23        45         36              40            22          55          53
share%
Source: MOA- Annual Nyandarua district Reports, 2005- 2009.



4.2.4.1. Production System

Cabbage cultivation starts with seed acquisition, nursery propagation, followed by            land preparation,
planting, fertilizer application, ear- thing, through to weeding, pest and disease management and harvesting.
Cabbage can be grown in altitudes ranging from 800 to over 2,000m above sea level. Optimum
temperatures for cabbage growing are achieved at 16-20oC. At temperatures above 25 oC, head formation is
reduced. The crop is grown largely by small scales farmers with holdings of less than 2 ha.

Cabbages grow on a wide range of soil types ranging from light sand to heavier clays. Soils with high
organic matter give the best yields. Soil pH should be in the range of 6-6.5 for actual growth and a higher
pH is important for root control. Heavy soils in suitable rainfall areas can produce good crops with little or
no irrigation. Good drainage is important and in high-rainfall areas, the crop is grown on raised beds to
improve drainage and, for this reason, when working the soil, it is necessary to keep it in the raised position
at all times

Yield and Variety: The main varieties of cabbages grown in the district are the Copenhagen, Sugar Loaf
and Gloria Hybrid. Yields vary with variety and agronomic practices adopted by the farmers. Based on
discussions with the farmers‟ groups, the actual yields realized was between 8-10 tons per acre, lower than
the expected level of 15 tons. Part of the reason for the low yield was due to inadequate application of farm
fertilizer which the farmers linked to high input costs and high cost of improved seed.

Crop Husbandry: The cultivation of cabbages starts on nursery beds. Raised beds (1 Meter wide and any
desired length) are usually recommended for the wet areas especially with heavy soils, and sunken beds for
dry areas/seasons. Cabbage seeds are small; hence, the soil should be well prepared to a fine tilth. Healthy
and vigorous seedlings should be transplanted when they are 10-12 cm high and about 4-6 weeks old. Seeds


69
should be obtained from a stockist to ensure good quality seeds are used. If the soils are low in organic
matter, 1-2 handfuls (up to 20 tons/ha) of manure should be applied. If fowl manure (deep litter) is
available it should be applied at around 22 m3 /ha and thus fertilizer rates can be reduced by around one
third.

A basic dressing of phosphate fertilizer (46% P2 O5 at 200kg/ha is recommended in soils low in
phosphorus. Early application of lime is recommended in soil preparation if the soil pH is less than 6.0. In
acidic soils, lime should be applied at a rate of 500-1,000 kg/ha. DAP should not be used in acidic soils.
However, over-lime application erodes the essential element manganese which may become unavailable to
plants. Instead, triple or double superphosphate or compound fertilizer (NPK) should be used. The plants
should be top dressed with nitrogen fertilizer at the rate of 100kg/ha when seedlings are established and a
second top dressing at the rate of 200 kg/ha when the leaves start to fold. It is important to have the soil
tested to determine the soil nutrient status where possible before planting.

Pests and diseases: Cabbage is highly prone to pests and         diseases, particularly   the Diamond Back-
Moth, Aphids, Red Spider Mites and Caterpillars. These adversely affect produce quality and result in high
post harvest losses. The field should, therefore, be kept weed free. Mulching is advisable to conserve
moisture, control weeds and reduce the spread of disease incidence. Cabbages should not be grown after
cabbage or other cruciferous crops so as to reduce the spread of soil-borne diseases and pests which can be
harboured by the weeds. While farmers reported using chemical to control diseases, they were not fully
aware of the proper management practices.

Harvesting and Post harvest handling: Cabbages are grown and harvested about 3 times in a year with
the first crop planted in March, second crop in August, and the third crop planted in November.
Depending on the variety, harvesting starts 1.5 to 3 months after transplanting and lasts for 3-4 weeks.
Harvesting should be done when the heads are firm and only 3-4 wrapper leaves should be left to protect
the head and keep it fresh.

A cabbage is mature when the head is firm to touch. Heads firm gradually until they become hard. If left
too long the heads can split and become unmarketable. Cutting is usually carried out in the morning and
heads are cut so that a few wrapper leaves are present to protect the heart. Cabbages are either marketed by
the heads with full leaf or may be trimmed and packed in bags or crates. In general farmers sold the
produce immediately after harvest and do not store the produce for prolonged period as storage facilities
were often lacking.

Cabbage should be handled carefully from field to storage, and only solid heads with no yellowing, decay,
or mechanical injuries should be stored. Before the heads are stored, all loose leaves should be trimmed
away; only three to five tight wrapper leaves should be left on the head. Loose leaves interfere with
ventilation between heads, and yet ventilation is essential for successful storage. Avoid bruising the head as
it encourages rotting



70
Prices: At the time of study farm gate price ranged from sh 10-15 per head. This can be as low as shs 5
per head during glut seasons irrespective of the size. Systemic grading of cabbages is hardly practiced and is
traditionally done by eye and physical sorting. This has the direct effect on final price received by the
farmer. There was a direct seasonal effect with minimum prices received during peak harvest periods when
supply is beyond market demand.

4.2.4.2 Actors in the Production Chain

Cabbage production in Nyandarua district involves a few actors including mainly the small scale farmers,
Inputs suppliers and service providers. About 4000 farmers are actively involved in production of the crop
and a few farmers groups in the lower zone. Seed and agrochemicals supply was fed through the local
distribution network. Support services providers identified in the sub-sector included the Ministry of
agriculture and a few private sector organizations.

4.2.4.3 Support Services

This is an extremely important area for increasing farmer‟s productivity and profitability. Adequate
extension services were available from the Ministry of Agriculture, as the primary supplier, through various
programs including NALEP and SHEP. These services have emphasized on increasing level of farm
productivity, formation of farmers groups and empowerment of farmers through capacity building.
However, due to limited resources and number and capacity of technical staff, the dissemination of process
has been rather, thus the Ministry‟s outreach to farmers. A few private sector organizations and NGOs also
played a role in promoting cabbage production and capacity building of farmers in the district. These
initiatives are expected to promote commercial oriented production. However, the linkage between
producers and traders is still weak due to lack of strong institutions farmers in the sub sector.

A summary of main Actors in the cabbage production chain is provided in table 16 below

Table 14: Major Actors in Cabbage Production Chain
VALUE CHAIN            MAIN ACTOR                     ROLE/SERVICE                             LIMITATION
LEVEL
Production             4000 SSF, and Farmers groups   Producing cabbages and farm level        Limited technical skills on
                                                      marketing                                production
Support Services and   Ministry of Agriculture        Policy development and Extension         Limited staff
programs                                              and technical services and training of
                                                      staff and farmers
                       NALEP                          Demand driven extension Formation        Limited staff capacity.
                                                      of CIGs, technical training and
                                                      agribusiness development
                       SHEP                           Training of small holder farmers, and    Limited capacity      and
                                                      infrastructure development               budgetary constraints
                       CKDAP                          Support irrigation infrastructure to     Limited resources
                                                      boost production, draught resistance
                                                      planting materials
                       NMK                            Grants for food security                 Limited resources


4.2.4.3 Production Constraints




71
Cabbage production is affected by seasonality and lack of market. Farmers cited poor access roads, low and
poor quality cabbage due to poor crop management, high incidence of pest and diseases; price fluctuations
and high post harvest losses as some of the constraints limiting their potential to increase production.

     1. Incidence of pests and diseases:         Farmers reported that cabbage is highly prone to pests and
         diseases, particularly the Diamond Back- Moth, Aphids, and Caterpillars which negatively impact
         on produce quality and result in high post harvest losses. . The incidence of disease and pest seems
         to be quite severe causing high yield losses. The losses are also due to deterioration of quality and
         post-harvest losses. This primarily due to inadequate extension services and limited knowledge on
         the part of farmers to identify and control pests and diseases .Use of pesticides and resistant
         varieties and integrated peat management have greatly helped to alleviate and control these
         diseases. Promotion of cost-effective technologies such as on farm storage and strengthening of
         extension services can substantially reduce post harvest losses.
     2. Limited technical know-how: The apparent lack of technical knowledge was evident among
         farmers particularly on production, organization development, agribusiness development and
         marketing and value addition. Farmers blamed this on weak extension and lack of effective support
         services.

     3. Lack of storage facilities:     Post harvest losses arise from lack of on- farm storage facilities and
         poor handling     of produce. The commodity is highly perishable. Farmers therefore must find
         market for the product immediately after harvest or find suitable storage for a limited period of
         time before damage to realize better prices. At the farm level the losses are due to improper
         harvesting (cuts) and postharvest handling (lack of curing). the average loss estimated at 10-15%
     4. Seasonality: Cabbage production is highly seasonal. Sustainable production throughout the year
         can be achieved through        support to small scale irrigation development, better timing of
         production and on –farm storage

     Farmers reported the following major challenges and constraints. (Table 17)

Table 15: Constraints and recommended interventions
CONSTRAINTS              CAUSE              EFFECTS                              RECOMMENDED
                                                                                 INTERVENTIONS
Poor quality    of   Lack of     technical   Low yields and low        Improve farmers‟ technical skills through
produce              know-how                produce quality           training and capacity building on post
                     ,                                                 harvest handling, encourage use of
                                                                       improved seeds varieties
Limited technical    Inadequate training     Low productivity          Train FAR mers on production techniques
skills               and lack of awareness
                     on new technology
High incidence of    Lack of knowledge on    Low productivity          Train farmers on production techniques,
pests and diseases   IPM                                               and IPM
High post harvest    Poor         produce    Fluctuation          in   Introduce small scale irrigation agriculture,
losses               handling, pests and     production, prices and    better timing of production calendar,
                     diseases                loss of income.           establish on-farm storage



4.2.4.4 Recommended Interventions

72
     1. Technical training and capacity building; From discussion with farmers it was established that
         poor quality of produce is generally caused by lack of technical knowhow and poor agronomic
         practices by the small scale holder farmer which leads to low yields and produce quality. In order
         to address this constraint, training and capacity building of farmers on production, pest and disease
         management and post harvest handling is imperative. The project should support farmers in
         adopting integrated pest management practices. The disease and pest management practice should
         also include the adoption of varieties resistant to prevailing diseases in the production areas. This
         can be achieved through partnerships with private sector service providers.
     2. Irrigation development; Seasonality is a natural phenomenon affecting agricultural production. In
         the case of cabbage subsector, a sustainable production can be achieved through introduction of
         small scale irrigation along the river Pesi and Nyairoko.
     3. Development of storage facilities. In order to extend product life and stabilize producer prices it
         the project, in partnership with Local Authority and CDF, should support initiatives for
         construction of farm based storage facilities to improve on product quality.


         There is opportunity for farmers to increase                         production formation producer
         marketing groups to be able to access markets in the district and beyond. Investments in irrigation
         would further ensure sustainable supply of product throughout the year and reduce price
         fluctuations.




4.2.5 Cabbage Marketing System


Cabbage in Kenya is marketed mainly in the domestic market where they are sold in heaps of heads and
rarely by weight. The product is transported to the market places in bags or crates using Lorries and picks-
ups. Cabbage is highly perishable and therefore most farmers are forced to harvest when there is ready
market, since they lack appropriate on- farm storage facilities. Proper handling is essential to retain cabbage
quality hence value. A number of functionaries are involved in the marketing of the commodity.

The main market segments for cabbage as a commodity in the district were identified to include farm-level
marketing, brokers, retailers, institutions and households. Institutions and household are the most distinctly
observable source of demand for cabbages. The main end market for cabbages in the district comes from
the local schools, prisons, hospitals, hotels and restaurants. The small scale farmers have little control of the
marketing system and the system is largely dominated by the broker. Such farmers were found less oriented
to market with the primary objective of the production being for subsistence and only the small part of
the production goes to market.
4.2.5.1 Actors in the Cabbage market value chain.




73
Different Actors were identified at the various market segments each of whom performs a different role.
The primary Actor in the marketing chain is the broker who links the farmers to the markets. The other
important Actors identified included market traders, the wholesalers and retailers at the various rural and
urban markets, Local Authorities, institutions and household consumers. Besides being producers, farmers
too actively participate in the direct marketing of the product. .A summary of Actors and their roles in the
market chain is provided in table 18.below

Table 16: Actors and their roles in the Cabbage marketing chain
    CHAIN ACTOR                          ROLES                                   LIMITATIONS
4,000 SSF and 10 farmers Production , harvesting             of Price fluctuations and limited control over pricing,
groups                    cabbages and negotiate prices         high post harvest losses
Brokers                   Identifying      producers       and No contractual relationship with the farmers, are
                          matching to buyers, provide not transparent in their operations, not legally
                          packaging, negotiate prices and mainstreamed in the chain
                          organizes transportation to markets
Wholesalers                Buying ,bulking and selling Poor market conditions. Long distances from
                          produce to retailers             and farms to markets, Increased prices from brokers
                          consumers
Retailers                  Bulk-breaking       and      selling Poor market infrastructures, price fluctuations,
                          cabbages to consumers                 losses due to unsold produce
Local Authorities         Provision of market infrastructure Budgetary limitation
                          and facilities, charging levies/cess
                          and market fees.
Institutions, households, Consumption                                     High consumer price, low quality of
hotels and restaurants                                                    cabbages



4.2.5.2 Farm level Marketing

At the farm level, the brokers and the farmer are the significant actors. The brokers are usually hired by
buyers on a commission basis to assemble the crop and to negotiate for a pre-agreed price. The brokers are
directed by traders who often own the Lorries which transport the commodities to various market places.
They often provide the bags and may even pay a deposit to secure a given quantity of the crop to be
delivered. Farmers reported that the bulk, about 80% of total production in the district, is marketed
through the brokers. It was noted that due to their small sizes farmers cannot generate sufficient volumes
to market for themselves and benefit from economies of scale, hence the opportunity created for the
broker. The brokers relegate the farmer to a mere price taker due to their competence and control of
information in the entire market chain in terms of produce seasonality, availability, buyers, suppliers and
prices and thrives mainly on asymmetric market information.

At the farm level, typical with other agricultural commodities, the farmer carries out various marketing and
value adding activities including harvesting, on farm storage, sorting, and price negotiations. Farmers
complained of exploitation by brokers as much as they acknowledged they fulfill a role in the marketing
chain, mitigating market risk by directing supply and demand network. However, as a result of their
presence there is no direct contact between the farmers and the final market outlet, thus distorting
marketing system.




74
As is typical to small holder farmers, due to their small farm sizes and small quantity production, farmers
cannot generate economical volumes to market for themselves. They are not organized into marketing
associations to market their cabbages or determine the price. As a result, the farm level brokers make
opportunistic margins, as high as sh 2-3 per cabbage head, as farmers lack information to negotiate prices
and have no other market channels. Storage at farm level is either lacking or not a widespread practice and
most produce are typically sold shortly after harvest. Grading of cabbages is practiced by sorting and by
size.

4.2.6. Market Traders


In the cabbage market chain, the next group of actors were trades (including the market-level brokers
wholesalers, retailers), and consumers.

4.2.6.1 Market- Level- Brokers

At the whole sale markets, the market-level brokers usually approach Lorry operators and offer to sell the
product at negotiated prices. These brokers could as well be farm level brokers and are normally paid on
commission which is reflective of their margins and value share in the market chain. Brokers are therefore
an important and integral part of the marketing chain that should be recognized, registered and trained to
instill positive attitude, transparency and institutionalize their participation in the marketing chain.

4.2.6.2 Wholesalers/Retailers

These are traders who principally buy from market level brokers and occasionally directly from the farmers.
Their main role is in produce bulking and distribution to various retail outlets such as schools, institutions
and hospitality sector. It was noted that there were very few wholesalers operating in the cabbage marketing
chain, partly due to the perishable nature of the produce and lack of pre-cooling storage facilities at the
wholesale markets.

The retailers were mainly fixed location traders who sell in heaps and single heads. The heads are specified
in terms of their size-(small, medium and large) and value depending on size, ranging from shs10 to shs 25.
The wholesalers and retailers are taxed per bag, a fixed fee of ksh 200 per month for space to operate at
the whole sale markets, and the retailer a fee of ksh 20 per day irrespective of the quantity in all wholesale
markets by the Local Authorities.

4.2.6.3 Transporters:

A few individual transporters who are hired by buyers to ship produce to wholesale markets within and
outside the district were spotted. They would transport any other commodity or good. They commonly rely
on market brokers to locate customers or buyers with produce for transshipment to terminal market places.
It was noted that some of the transporters also operate as traders. Due to their transient nature of
operation it was difficult to identify regular transporters by name or entity.

75
4.2.6.3 Packaging

The observed practice at the farm level is the standard packaging in sisal sacks. However the use of
extended bags was observed thus resulting in size variations and difficulty in pricing. A Standard bag weighs
on average 90 Kg and the extended bag weighs between 120 and 150 Kgs .The use of the extended bag was
observed and this denies the farmer their fair share in revenue. Although packaging was not a major issue,
there is need to observe the use of standardized packaging to regulate trade in the product and improve
farmers‟ income.

4.2.6.4 Cabbage Markets

The main wholesale markets for Cabbages in the district are Ndaragwa, Nyahururu, Oljoro-Orok and
Olkalou where traders converge for their trading transactions. Each of these markets is visited by an
average 300 traders and several consumers on each market day. These markets also function as daily retail
markets. It was observed these wholesale markets are in poor physical conditions and hygiene without
market roofs, shelter, sheds, stalls, electricity, storage and cooling facilities where the produce can be held in
good condition for any appreciable length of time. This has made retailing difficult in the poor open air
structures.

The study also identified six (6) rural open –air retail markets including Kasuku, Passenga and Ndondori
which operate daily for the rural sellers and vendors, and several small cluster markets a round market
centers. In order to improve the trading environment, traders felt that the local Authority should develop
the main wholesale markets, in particular the Ndaragwa, Olkalou and Ol-Joro-Orok markets to modern
wholesale markets with necessary physical and sanitation facilities. Cabbage from Nyandarua, however are
marketed beyond the district borders to Nairobi (Wakulima) and Nakuru.

4.2.6.4 Processing

While no processing of cabbages is being done in the district at the moment, there is potential for value
addition for dehydrated cabbages and packaging using simple technologies already developed by the ATC,
Oljoro-Orok. This has the potential of increasing farmers‟ income.




76
3.2.6.5 Marketing Channel

Cabbage is marketed through various channels. The observable marketing channels in the district, from the farmer to the consumer are illustrated in figure 13
below.
Figure 12: Marketing Channels for Cabbages in Nyandarua District


           Producers




                                                                            Middlemen



                                                              Urban municipal
                                Rural Markets                 markets                      Urban
                                                                                           Wholesalers
                                                              Markets


                    Market    centers,          Green                           Supermarkets
                    kiosks,                     Groceries‟,

                    Road side sellers
          On-farm                 Urban and rural household consumption                   Consumption        at    institutions,
          consumption                                                                     schools, colleges, universities etc.




77
4.2.6.6 Marketing Constraints

During discussions, traders cited the following major constraints.



     1. Poor Access roads. Access Road: Access roads are key to marketing. Observations and
          discussions with both traders and farmers revealed that access roads in the producing areas are
          in deplorable conditions, thus making physical communication, linkage and delivery of produce
          to the markets difficult and costly.

     2. Perishability and high post harvest losses (as high as 10-15%). Post harvest loses include
          perish ability, damage to crop during harvesting and handling. These are due mainly to poor
          product handling techniques on the part of small scale farmers and traders and lack of
          appropriate on farm level storage and poor marketing facilities at the wholesale markets for
          pre-cooling purposes.
     3. Poor Physical markets. From observations and discussion with traders it was established that
          the wholesale markets were in poor physical conditions and hygiene manifested in lack of
          proper sanitation,      lack of produce stalls , water and electricity leading to poor trading
          environment..
     4. Poor market information. The existence of a market is critical for efficient operation of
          marketing system: From the situation assessment, it was noted that farmers and traders do not
          have systematic ways of accessing information on commodity prices and market opportunities
          leading to inaccessibility to new market.
     5. Price fluctuations. Cabbage production is highly seasonal with glut production resulting in
          depressed and low producer prices and high post harvest losses. Seasonality is purely a climatic
          change issue where the farmers have little control over, and this coupled with over supply is
          generally blamed for the price instability. This consequently leads to lower returns to the
          farmers.




78
           Table 17: Constraints and recommended Interventions
CONSTRAINTS            CAUSE                                  EFFECTS                    RECOMMENDED INTERVENTIONS

Poor rural access Low investment in access road High transport cost and Improve rural access roads in the producing areas as                          identified in the district
roads             development maintenance       limited access to market action plan.
                                                              outlets
Perishability          Poor storage facilities                Low sales price            provide capacity building in market research and linkage and provision of storage
                       Lack of market                                                    facilities
High post harvest      Pest and diseases, lack of on farm     Loss of produce, Low       Train farmers on post-harvest handling and IPM, support development of
loss                   storage, market outlets poor           returns                    appropriate on farm storage
                       product handling
Multiple taxation      Need to maximize revenue for           Increased    costs    to   The Municipal Council should review the taxation policy and consolidate the
                       Local Authorities                      business     transaction   various charges into affordable one stop payment
                                                              leading     to      high
                                                              consumer prices
Poor        physical   Low      investment     by     local   Poor             trading   Upgrade the existing market structures and facilities as outlined in the action plan
market                 authorities in market infrastructure   environment          and
                       development, Budgetary limitation      hygiene
infrastructure and
facilities
Poor         market    Poor      market dissemination,        Low       returns    and   Establish market information points at market centers for information briefs on
information            limited market surveys and             exploitation by brokers    prices, supply, and demand, enhance use of ICT, mobile telephony and media
                       information materials                                             related technology and extension services




79
4.2.6.10 Recommended Interventions

1. Improving market infrastructure and facilities: In order to improve the trading environment and
     reduce post harvest losses, recommended that SHoMaP should support construction of appropriate
     modern market facilities at the wholesale markets, specifically the Ndaragua, Olkalou and Ol-Joro
     Orock wholesale markets. This can be achieved in collaboration with Nyandarua Local Authority

2. Rehabilitation of Access roads: Access road is key to marketing, discussion with traders revealed
     the state of access roads in Nyandarua north in deplorable conditions hence making the linkage
     between markets and farmers costly. Farmers mentioned, in particular, the need to improve the
     Ndogino-Mahianyu-Kiahiti road, Pesi-Mahinga and Kahii-Olbolsat access roads. This effort can be
     achieved through a close collaboration between SHoMaP and the Ministry of roads , local
     authority and CDF

3. Market Information and dissemination: It was noted that traders do not have systematic ways of
     accessing information on commodity prices and market opportunities. In order to improve this
     situation it‟s recommended that SHoMaP should work in collaboration with KACE and the
     Agricultural Information Resource Center (AIRC) to develop and disseminate available information
     to traders through simple market bulletins and mobile telephony on a regular basis so as to enable
     them respond more effectively to market needs.


     Being a highly perishable commodity, the need for storage and cooling facilities
     present a viable investment opportunity for private sector. Farmers should be encouraged to
     explore processing of dehydrated cabbages for human consumption and use of cabbages for
     animal feed



4.2.7        Costs and Margins


4.2.7.1 Gross Margin

At the time of the study the average cost of producing cabbages in the study district was estimated at shs
47,500 per ha and comprised mainly of the cost of inputs, while gross margin was         estimated at shs
24,500 per ha. The    gross revenue was estimated at shs 72,000 per ha. However, it was observed that
establishment costs varied from one farmer to the other depending on the level of crop management.
The work sheet is provided in appendix I




80
4.2.7.2 Marketing Margin

Traders marketing margins were influenced by how competitive the market is, seasonality and the
distance from the markets. The value share for market actors in the cabbage marketing chain is
summarized in table 26 below. The work sheet is provided in appendix VI

Table 18 : Value share of actors in the marketing chain
1                     2            3                  4                 5               6               7
Chain actor           Variable     Selling price      Gross             Added Value     Gross           %Value
                      cost                            Income                            margin%         share
Farmer                528          800                272               800             34              40
Market broker         None         1200               400               400             33.3            20
Wholesaler            1395         1600               205               400             12.8            20
Retailer              1840         2000               160               400             8               20
Retail     consumer                                                     2000                            100
price
Source: Field investigation, 2009.
The broker bought            cabbages at a                Value share of actors in the cabbage market
farm gate price of shs 800 per bag and                                       chain
sold it to the market trader at shs                              Retailer,
                                                                 20, 20%
1,200 per bag, giving him or her a
                                                                                                      Farmer, 40,
margin of shs 400 per bag and this                                                                       40%
reflected his/her commission. He did
                                                   Wholesaler,
not incur any costs as all his/her cost             20, 20%
was met by the buyer to the equivalent
of buying price. The wholesaler sold                                                                          Market
                                                                    Farmer            Market broker           broker,
the produce      to the market retailer at
                                                                                                              20, 20%
shs 1,600 per bag who later sold it at
sh2000 per bag, being the final retail price, earning him/her a margin of shs-400 per bag.

The value share is the final retail price and the cost each actor in the chain manages to capture and incurs
in the chain. The farmer‟s gross margin and value share in the cabbage trade is a big share of his/her
total revenue, being 34% and 40% per bag sold which could be higher with an increase in farm gate
price.




81
4. 2.8 Governance and Services
The value chain governance essentially determines the success of intervention strategies. In the cabbage
commodity value chain, a few public institutions and organizations performing                    various market based
roles were identified. These included the MoA and Local Authorities, and the Agricultural Training
Centers among others. A summary of these institutions and their roles is provided in the table 21 below.

Table 19 : Summary of the Major Public Stakeholders in the Value Chain
 NAME                                   SPECIFIC SERVICES                             LIMITATION
Input Supply Systems: and services
Pest Control and Product Board (PCPB)   Licensing, policy enforcement, and            Weak capacity to effectively control
                                        Monitoring of accreditation and application   and      monitor     standards  and
                                        of chemicals and pesticides use               distribution of agrochemicals, Long
                                                                                      period for registration of     local
                                                                                      stockiest
Ministry Of Agriculture                 Distribution of seeds and provision of        Inadequate extension staff and
                                        Extension services                            budgetary limitations
Marketing Systems:
Ministry of Cooperative and Marketing   Farmers cooperative and marketing             Weak collaboration
Development
Local Authorities                       Provision of physical infrastructure          Weak capacity to monitor regulations
                                                                                      and inadequate financial resources
Processing System:
ATC-Oljoro-Orok                         Training of small scale agro-processing and   Budgetary limitations
                                        demonstration


4.2.9 Governance Issues
The main governance issues in the cabbage value chain were concerned with chain relationship, capacity
building for farmers and market access.

4.2.9.1 Chain Relationship

An interactive relation between farmers and traders is crucial for successful business.                       From the
discussions with stakeholders, it was noted that links between the farmer and the buyer is weak and ad-
hoc leading to high level of mistrust between them. The market value chain is dominantly buyer driven
being influenced by the traders. Strengthening relations between the producer and traders would benefit
both parties. This would be best achieved if farmers were organized.

4.2.9.2 Capacity Building

Currently farmers in the subsector produce small and poor quality produce for the local market due to
poor of technical skills. It is important to equip farmers with better skills so that they can produce a better
crop of a higher quality. Through farmers group the farmer is best place to will receive training on proper
crop husbandry, organizational development, financial management and access credit. This training can
also be extended to the input suppliers and traders. Building engagement and strategic alliances with
private sector service providers to provide training to farmers would be vital to enhance and up- scaling
farmers‟ technical skills.




82
4.2.9.3 Standards, Quality and Grades

Continued use of use of the “extended bags” packaging, is a concern that has not been adequately
addressed. This reflects weakness on the part of the relevant policy enforcement authorities. Local
authorities can play an important role in enforcing the 90 kg bag as the standard unit measure. Improved
institutional arrangements for enforcing use of uniform packaging standards would improve trading and
business returns to both the farmers and traders.

4.2.9.5 Policy Leverage and Regulation

The business of farmers and traders is strongly influenced by public policies, the most important ones
being laws, regulation and standards, taxation, public infrastructure and provision of services. Local
government authorities can promote better trading environment by ensuring good management,
standards and provision of market infrastructure and facilities. They develop and monitor regulation on
where to the traders can set up their business, hygiene, standards and collect levies and cess on produce.
Market levies, Storage, trading sheds, electricity, hygiene and security were some of the urgent problems
to address. Interview with farmers indicate that movement of goods across divisions attracts double
payment of cess. Market facilities at the wholesale markets should be improved and market levies
rationalized into affordable one-time stop fees, and visibly used to improve services at the market places

4.2.10 Summary of major constraints and recommended interventions
In summary the following are the major constraints traders face in cabbage trading.

Table 20: Summary of the major constraints and recommended interventions
CHAIN LINK       CONSTRAINTS           RANKING         RECOMMENDED INTERVENTIONS
Marketing          High          cost       of    1      Improve rural access road infrastructure network as
logistics          transportation                        outlined in the district action plan
Physical markets   Poor market facilities         2      Upgrade existing market infrastructure and facilities
                                                         including market sheds, stalls, storage, electricity, water
                                                         and sanitation as outlined in the district action plan
Market             Poor                 market    3      Training and capacity building of trades, improve
institutions       information flow                      market    information access on prices, supply and
                                                         demand data       through      ICT and media related
                                                         technology
                   Lack    of           traders   4      Facilitate formation of traders association to increase
                   association                           bargaining power and economies of scale




83
4.3 Garden Peas
4.3.1 Introduction


Garden Peas, otherwise known as field Peas is one of the important and one of the most popular
Legumes in Kenya whose production is growing in importance with increasing demand. The crop is
grown by small scale holders for subsistence and for the local fresh market. It is a source of food and
family income to majority of small holder farmers. It is grown as an intercrop with other crops in the
field. Generally, Garden pea is the most commonly grown leguminous crop both for domestic and
commercial purposes.

Peas are cultivated for the fresh green seeds, tender green pods, dried seeds and foliage and manure Dry
seeds are used for food, as salad and feed. For food, they are cooked whole, split or ground into flour,
and boiled or roasted. Fresh peas are canned or frozen in the immature form. It is a major vegetable and
commercial crop

The legume thrives better in higher altitudes with cooler temperatures and cannot tolerate excessive
humidity which adversely affects its growth. This makes it a suitable crop in the upper and lower
highlands of Nyandarua district.

However, in-spite of its growing importance and the fact that it can be grown in many parts of the
country, there was little recorded information available on the crop. This consequently limited the value
chain analysis study on the commodity.




4.3.2 Value Chain Map


The following value chain segments were identified included the Input supply, production and marketing.
This is illustrated in figure 15.




84
Figure 13: The Garden Peas Value Chain Map




                                  Production      Transportation      Retailing       Consumption
                  Input
                 Supply




             Kenya       Seed,
                                                  Broker             Broker            Households
             E.A Seed Co,           2000
     A
             Simlaw,                SSF,                                               Hotels        and
     c                                            Retailers          Retailers
             NCPB                   Farmer                                             restaurants
     t
                                    groups                                             Restaurants
     o       Stokists:
     r       Green Acres,
                                     MoA,                                Local Auth    MOPH
             Tumaini,
              KEPHIS,                                 Local Auth
             Farm Factor,                                                              Local Auth
                                                      Transporters
             Malewa

             Hope



                                               SERVICE PROVIDERS




85
Activities of Actors in the value chain



          VC                 Inputs
                                                     Production                             Transportation                Marketing   Consumption
          function                                                            Trade

          f
                     A                                              Loading           and        Loading       Buying         and           Buying
                     C      Supply of              Nursery
                                                     propagation    unloading                     and           selling                       product
                             improved seed
                     T       seeds                  Land
                                                                                                  unloading                                   for
                                                                    Buying and selling           Transportat   Bulk breaking
                     I      Distribution of
                                                     preparation
                                                                                                  ion
                                                                                                                                              consumpti
                                                                   Transport                                   Storage                       on
                     V       fertilizers and
                                                     Transplantin
                                                                                                 Cess
                                                     g              Cess payment                                Value addition
                     I       agrochemicals
                                                    Fertilizer
                                                                                                  payment
                                                                                                                                             Quality
                     T      Advice to              Weeding
                                                                                                                Cess payment
                                                                                                                                              and price
                     I       farmers                 ,IPM                                                                                     differentiat
                     E      Credit                 Harvesting                                                                               ion
                             institutions            Grading/sort
                     S                               ing,
                                                    Packing
                                                    On-farm
                                                     selling


                                 Input               Farmer and            Broker               Lorry Owner          Retailer               Individual
               A                Suppliers          Farmer Groups                                                                            Households
               C
               T                                                        Wholesaler                                    Kiosk                    Public
                              (Public &            Workers                                      Lorry Driver       Owner/Hawker              Institutions
               O                Private                                                                                                      (Hospitals,
                             institutions)                                                                                                  Educational)
               R              Extension                               Mobile Trader               Handcart          Supermarket                Private
                               services                                                            Driver                                   Institutions (
               S                                                                                                                               Hotels,
                                                                                                                                            Restaurants)
                                                                     Rural vendor
                                                                                                Porter
                                                                                                                  Processor




86
4.3.3 Input Supply and Distribution System;


4.3.3.1 Seed Supply

The main inputs in Garden pea production are seeds, fertilizer, pesticides, herbicides and labor. These inputs are
available locally from major seed distributors and agrochemical stokists in the country. There are over 72 seed
companies involved in seed distribution in Kenya. The Kenya Seed company is the chief producer and supplier of
vegetable seeds in Kenya, through its subsidiary, Simlaw Seeds Ltd. Other seed merchants and suppliers include
East African seed growers Ltd. Other Actors in the seed supply system included the East Africa Seed Growers
Ltd and several stokists.

KARI and KEPHIS provide support in seed multiplication that enables farmers to produce healthy seed of good
quality with acceptable market value. However, production of vegetable seeds has been constrained by inadequate
research and investment in the seed sector, availability and quality. Much of the currently available seed is
expensive, imported, and of poor quality. The Kenya seed Traders Association has provided support to farmers in
seed multiplication and ensuring availability. Lack of certified seeds is an area that adversely affects production.

Discussions with farmers indicated that most farmers use FSS for planting due primarily to lack and high cost of
certified seeds. The Certified seeds retail at shs 170 per 50 gm which farmers considered high. Farmers often
plant the seeds directly in the farms. Family labor is usually employed and is significant factor in the production of
Garden Peas.

4.3.3.2 Fertilizer and Agrochemicals

Garden peas as a crop requires little nitrogen fertilizer compared to other vegetable crops. To be able to achieve
higher yields, a basic application of DAP fertilizer at 200kg/ha and composed manure or top dressing with CAN
is recommended at planting time to promote flowering. Too much nitrogen in the soil will promote vegetative
growth at the expense of pod production and will result in stunted growth. Pesticides/insecticides and herbicides
are used for both pest and weed control respectively.

Price of fertilizer varies and at the time of study was ranging from shs 2,500 to shs 2,700 per 50kg bag depending
on location and distance from the source of supply.

4.3.3.3 Distribution System

Most vegetable seeds in Kenya are imported by seed merchants and the seeds are certified by Kenya Plant Health
Inspectorate services (KEPHIS) on entry into the country before they are sold and distributed to farmers. The
main distributors and marketers of vegetable seeds in Kenya are East Africa Seed Growers Ltd, Simlaw Seeds
Ltd, Kenya Farmers Association (KFA), National Cereals and Produce Board and over 100 input dealers and
stokists spread within the district. These include Green Acres, Farm Input Systems, Tumaini Agrovets, Malewa
Farm Factor and Services, among others, as some of the main seed stockiest and dealers in agrochemicals in the

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Nyandarua region, but several other small stockists also retail fertilizers and other inputs in the rural and urban
markets. The existing seed merchants and stockists adequately provide for the farmers input requirements in the
district. They have ensured ready availability of seed and agrochemical inputs to the farmers. The main actors in
the input supply system are provided in table 23 below

Table 21: Actors in the Input supply chain
 CHAIN LINK              NAME OF ACTOR                            ROLE/SERVICE               LIMITATIONS

 Seed and Input supply

 Seed supply                Kenya Seed Company                    Production, distribution   Inadequate capacity
                                                                  and technical advice

                            72 seed companies- East African        Seed distribution and     Adequate capacity. Seed is
                            Seed company, Simlaw Seeds            technical advice to        available in adequate quantity
                            Company, KFA, NCPB etc                dealers and distributors   and quality.

  Other         inputs:     Over 100 Small scale Stokists:         Selling agro-chemical     Lack of       capital, limited
 Fertilizers,      and      (Green Acres, Malewa, Merit, Vent     inputs,   training and     technical knowledge
 agrochemical inputs        agro, Tumaini). National Cereals      technical advice to
                            and Produce Board, KFA                farmers




4.3.3.4 Constraints in Input supply

During discussions distributors/stockists        mentioned two main constraints in the input supply           chain. These
were:

     1. Lack of access to credit, primarily due to stringent requirements by the commercial banks on account
            of lack of collateral for security, high interest rates and perceived risk associated with lending to small
            scale traders, was     mentioned by seed merchants, particularly the small scale stockiest as a major
            limitation to their ability to purchase adequate stock.

     2. Limited technical skills: Input dealers on their part indicated lack of technical skills and capacity to
            advice farmers on the appropriate use and the application of chemicals. With better training, most
            stokists felt they can play a role in information transfer and agronomic advice to farmers regarding
            correct use of chemicals. In addition they felt they could do with being agents of National Cereals and
            Produce Board than being in direct competition.

A summary of the main constraints reported by the input dealers, and recommended interventions is provided in
table 24.




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Table 22: Constraints in Input supply
   CONSTRAINTS             CAUSE                        EFFECTS                   RECOMMENDED
                                                                                  INTERVENTIONS

     Lack of capital for      Stringent                 Low stock level           Formation     of    input    dealers
     small scale stockists    requirements         by                             association to enhance access to
                              financial institutions                              finance and credit facilities from
                                                                                  suppliers /manufacturers

     Inadequate   Technical   Lack of training          Limited     capacity to   Training of input dealers
     Skills                                             advice farmers




4.3.3.5 Recommended Interventions

In order to improve the functioning of the input supply system the following intervention measures are
recommended:

     1. Training of Input dealers. In the context of the foregoing, it was noted that some training had been done
         by AGMAK, Agrochemical Companies and Kenya Farmers Association, however, there is need to
         enhance training, particularly with emphasize on agrochemical applications, safety and health,
         agribusiness development, procurement and credit. In view of this it is recommended that SHoMaP
         should work in collaboration with the private sector business services providers and NGOs to strengthen
         the capacity of input dealers to improve their capacity and enable them impart requisite information and
         advisory services to farmers.

     2. Access to Credit: The accessibility to credit is across cutting issue affecting not only the input stockists
         but also the small holder farmers, and yet it is critical for business expansion. Stockist is unable to stock
         economic quantities of the required inputs due primarily due to lack of capital. In order to improve on
         this situation, it is recommended that SHoMaP should create              embedded a credit facility within the
         program through the existing commercial banks for on lending to farmers and input stockist at
         subsidized rates to alleviate the credit crunch.

     3. Input dealers Platform. From the discussion it was noted that there is no existing input dealers‟ platform
         that can spear head traders interest and welfare and promote efficiency, transparency the input supply
         chain. Hence it is recommended that SHoMaP should work with agro chemical companies to facilitate
         formation of input dealers         forum or platform for dialogue with manufacturers and farmers to
         strengthen their participation in input supply chain. This could, in the longer term, gradually elevate to a
         stockist based SACCO as a vehicle to address the credit needs of the small scale stockists.

         In order to increase availability of Garden Peas seed in the market there is an opportunity for input
         supplier to get into contract farming with farmers to produce certified seeds for the market




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4.3.4    Production


According to the Ministry of Agriculture at the national level, a total of 12,000 hectares were planted with Garden
Peas in 2007 up from 6,924 ha in 2005. Total production increased from 34,620 tons in 2005 to 59,047 tons in
2007 valued at shs1.0 billion and shs 1.7 billion respectively. Central Province posted the highest overall
production of 40,385 tons in 2007 compared to 27,730 tons in 2006 reflecting annual growth rate of 55.6 %. In
terms of production this was followed by Rift Valley Province posting a far distant of 15,910 tons in 2007.

Nyandarua North has the potential for growing Garden Peas, particularly in the lower zones of Oljoro Orok and
Olkalau divisions. At the time of study about 2000 small scale farmers covering some 945 ha were engaged in
Garden Peas production, intercropped with maize, in Nyandarua district.

Overall production of Garden Peas in the district increased from 15,600 tons in 2004 to 18,000 tons in 2006, but
declined in 2007 and 2008       to 13,000 and 3,780 tons respectively. Part of the reason for this decline was
attributed to drought and the 2007 post election violence.

Yields and Variety: There are two types of pea varieties in Kenya, based on the texture of the seed coats; the
Wrinkled Seed type and the Smooth Seed type variety. The main varieties grown in Kenya by the small scale
farmers are Earlicrop, Onward, Alderman, “Black Eyed Susan” Ambassador and Green Feast of which the later
two are grown in Nyandarua North district.

At the national level yields vary from 3 tons to 10 tons per hectare, or an average of 6 tons of pods per hectare.
Pea yields in Nyandarua vary depending on crop management and variety. The adapted yield for the district is
estimated at 4- 5 tons per ha for the unshelled peas but could be higher if improved agronomic practices are used
and commercial production is promoted.

Pest and Diseases: Garden Pea is susceptible to pests and diseases, mainly the Mildews, Caterpillar,
(Cutworm), Aphids, Blue butterfly , Mosaic viruses, Thrips, Bacterial blight and Anthracnose which if not
controlled can result in severe drop in productivity. Bacterial blight can occur on all above-ground plant parts.
Infected stems are olive-brown, while stipules and leaflets turn yellowish and/or water-soaked and the affected
young pods shrivel or decay. Older pods may show water-soaked spots and may become scalded or cracked. High
humidity and rains facilitate disease development. The optimum temperature for bacterial growth is facilitated at
about 27.8 centigrade. If infection takes place at early growth stages, affected plants wither and die.

Crop husbandry and harvesting: The first key need for peas is moisture. Peas have to be irrigated when
conditions become dry. Also weed control is very essential at an early stage to reduce competition for nutrients.
However, Peas develop rapidly and the need for weeding is reduced when fully grown. Shallow cultivation is
recommended to avoid root damage. A suitable crop rotation program involving grains, potatoes and maize
should be used. For good quality fresh market peas staking is recommended.



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Green peas are ready for harvesting 8 to 12 weeks after planting. The time to harvest is determined by the
appearance of the pods. For Garden peas this means pods should be well filled but still smooth and green. Peas
are harvested when pods have reached full size but before development of seeds. As the pods mature the sugar
content decreases and market appeal is lost. The harvesting period may last 4 to 6 weeks. For dry Peas the whole
plant can be uprooted when about 80% of pods have turned brown and dry. The haulm is then either left in the
field or carried to a threshing place to dry completely after which the Peas are threshed and winnowed.

Farm gate prices for unshelled pod have varied over the last 3 years at between shs 10-12 per kg and at the time
of study it ranged from ksh 15-20 per kg. Given the growing demand, there is potential for increased commercial
production through increased acreage and better agronomic practices. Table 21 shows production trends in the
last 3 years.

Table 231: Garden Peas Production in Nyandarua (2004-2008) tons
Year              2004               2005              2006                                               2007               2008

Description       Ha      Prod       Ha       Prod     Ha                                   Prod          Ha        Prod     Ha      Prod
National          6580    23,327     6924     22,798   8075                                 40375         11,609    59,045   Na      Na
Output
Central           Na      Na         4,600    23,000   5546                                 27,730        8,077     40,385   Na      Na
Province
Nyandarua         3900    15,600     4,100    16,400   4,500                                18,000        7560      22,873   5,9o4   18,836
District
Percentage        Na      Na         89       71.3     81,1                                 64.9          33.4      33.4     Na      Na
share
Source: MoA, Nyandarua District Annual Reports 2005-2008
The table above shows that           during the                                    Garden Pea production trend in Nyandarua north District
period 2005-2008 production of Garden
                                                                                   25000
Peas in the district recorded a peak of
                                                       Production in Metric tone




                                                                                   20000
22,873 tons in 2007 up from 16,400 tons in
2005. It was noted that Garden Peas is not a                                       15000

stand    -alone    crop   in   the    field   but                                  10000

intercropped mainly with maize and/or                                                5000
other crops. However, Nyandarua district
                                                                                        0
has a high potential of increasing the                                                             2004      2005     2006   2007    2008
production of the crop in future if farmers                                                                           Year
can embrace as a commercial enterprise. Although production of the crop is seasonal due to climatic conditions,
there were no marked variations in production volumes and price fluctuations over this period as is characteristic
in other horticultural commodities

4.3.4.1 Production System




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Production of Garden Peas starts with land preparation followed by planting and fertilizer application through to
weeding and pest management. The seed usually takes 5-7 days to germinate and about 2-3 weeks to grow and
start trailing on the ground. Pod colour, size and internal seed development are the normal characteristics used to
assess maturity. On- farm storage, grading and packaging of produce is rarely practiced, although some packaging
was observed at the market place. At the farm level, rapid deterioration of quality due to poor handling and high
temperatures was noted. Most farmers, therefore, market the crop immediately after harvest as there is ready
market.

It was noted that farmers produce the crop in small quantities which is unattainable in terms of optimal
production and profit maximization. Part of the reason for the low production was due to small land size, poor
crop husbandry, intercropping, and lack of appreciation by farmers of its potential as a high value commercial
crop.

4.3.4.2 Actors in the Production Chain

The primary player in the production chain is the small scale farmers and the input suppliers. About some 2,000
farmers were engaged in production and harvesting of the crop. The Ministry of Agriculture provides farmer
extension and technical services. There was no commodity specific agency providing targeted services to the sub
sector that was observed. There were no farmers groups involved in the production chain. The existence of
farmers group is imperative for the development of commodity market value chains. Furthermore the farmers
groups serve as a forum for information exchange.

In spite its commercial potential, as an intercrop, extension services have targeted the parent crop in the field and
little attention has been given to production of the crop as a source of income and livelihood to farmers. A
summary of the main actors and their roles in the production chain are provided in table 26 below

                                     Table 24: Actors in the Production Chain
 CHAIN LINK                NAME OF ACTOR                   ROLE/SERVICE                  LIMITATIONS
Production Link     2000 SSF                             Growing,      harvesting   Limited        technical
                                                         and marketing peas         knowledge
Support services    Ministry of Agriculture              Training, extension and    Few extension staff and
                                                         technical services to      outreach
                                                         farmers, farmers group
                                                         formation
                    Seed Trade Association of Kenya




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     4.3.4.3 Constraints in the Production Chain

     Owing to its high commercial value the crop has the impetus of transforming the subsistence nature
     of production to modern market oriented production? Similarly with improved access roads and
     development of the market, farmers have the opportunity improve their livelihoods. However,
     despite these potentials the sub sector is experiencing some constraints of which the main ones
     reported by farmers were:

     1. Low productivity. Garden peas require keen care and tendering. Moreover as an intercrop the proper
         husbandry is lost to the main crop. As a result, farmers produce not only in small quantitative but also
         low quality product and are unable to aggregate produce at levels required to access larger markets
         economically.
     2. Inadequate technical skills. It was noted that farmers lack the technical skills and training to undertake the
         rigorous tendering involved and are unaware of proper growing techniques, thus resulting in poor quality
         produce. This is further exacerbated by the high incidence of pests and diseases
     3. Lack of commercial oriented production: Production of the commodity is still geared towards meeting
         subsistence needs without any commercial or market orientatation. The current commodity distribution
         and marketing system is inefficient and communication is still person to person. The lack of farmers
         groups has limited famer‟s ability to access credit, bulk produce, move large volumes of produce, and
         even negotiate market prices and ensure produce quality. The existence of farmers group is imperative for
         the development of commodity market value chains.
         High cost transportation: The poor state of access roads to the producing areas has been blamed for the
     high transport costs thus leading to reduced returns to the farmer. Improving access roads will reduce
     logistical hurdles thus permeating easy access to markets. The key constraints are summarized in table 27
     below
Table 25: Key Constraints in Production Chain
          MAIN                  CAUSE                      EFFECTS                       RECOMMENDED
    CONSTRAINTS                                                                         INTERVENTIONS
    Low productivity. Poor crop husbandry,             Low yields and poor    Train farmers on production skills to
                       lack of technical skills,       quality of produce     improve productivity, train extension
                       and intercropping                                      staff to impart skills to SSF, encourage
                                                                              commercial production
     High cost of         Poor        access road      Reduced    margins     Improve access roads as outlined in the
     transportation.      development            and   and low returns to     district action plan
                          maintenance                  farmers
                          Small          marketable
                          volumes
     Lack            of   Low appreciation of          Subsistence            Provide focused extension services and
     commercial           commercial value by          production             training to farmers on farming as a
     production           farmers                      Poor product quality   business and farm demonstrations, FFS
                          Intercropping,
     Lack of farmers      Multiple        enterprise   Lack of control of     Facilitate formation of commodity
     organization         leading to lack of focus     the chain, merely      farmers association/cooperatives
                          on any single enterprise     price takers



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4.3.4.4 Recommended Interventions
     1. Technical training. In order to improve farmers capacity             to   produce quality produce,       it is
        recommended that SHoMaP in collaboration with MoA, HCDA, and relevant private sector services
        providers should organize and conduct capacity building training for farmers on farming as a business
        and crop husbandry to improve productivity. As important, the project should disseminate information
        on production techniques through farmer field schools and demonstrations
     2. Improving access roads: It is important for the produce to reach the market in time and good
        condition; however the current poor state of the roads does not permit efficient movement of the crop. In
        view of this, the project should work in collaboration with Ministry of roads, Local Authority and CDF to
        improve the conditions of access road in the producing areas particularly those listed in the action plan.
     3. Farmers group development: As a way of stimulating market oriented production, it is imperative to
        facilitate formation and evolve farmers groups to commercial marketing units through production and
        market oriented capacity building so that they can adopt small holder commercial farming. To gain
        influence in the marketing chain, farmers groups will involve and keep members informed in production
        and marketing activities as well as help them build partnerships and profitable business relations.


        There appears to be a gap between the demand and supply of Garden Peas in the market, as evidenced by
        the fact that all the produce in the market is sold off within the day. Farmers have an opportunity to
        engage in commercial production of the crop


4.3.4.5 Marketing System

Peas are marketed mainly in the local market in both unshelled and shelled forms. Marketing of unshelled peas is
mainly through market brokers, retailers and super markets. The brokers bridge the wholesaling function which
was conspicuously absent in the marketing chain. Product grading is rarely practiced and product freshness, shelf-
life and quality are much stricter requirements at the supermarket levels with reference to pesticides traceability.
By and large the trading in the commodity is still ad-hoc and confined to the farmer and market brokers. There
was no observable market leader in the commodity value chain.

The commodity is a high value crop which is largely consumed in the medium and high level households. There is
increasing demand for fresh shelled peas of the common varieties in the domestic market and potential for export
exists. Kenya export of garden peas in 2005 amounted to 2,206 tonnes at a value of KSh 729 million, and of snow
peas 1,739 tonnes at a value of KSh 448 million. The unshelled peas too have a growing domestic market
particularly in the rural urban centers.

Because of small quantities, the product is package in 50 Kg bags and transported to the markets using pick-up,
bicycles and motorcycles or public transport and traded in open wheel barrows and tins at the market places.




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4.3.4.6 Market Chain Actors

From discussions with farmers it was observed the commodity has a fairly weak supply and market chain with
only a few actors. The main market actors included the brokers, retailers and consumers. A summary of the main
actors in the market chain and their roles is provided in table 28 below


Table 26: Actors and their roles in the Garden Peas marketing chain
      CHAIN ACTOR                                ROLES                              LIMITATIONS
Brokers                         Crop harvesting, sorting, pricing, and             Small     quantizes    make
                                packaging, produce consolidation at farm           produce consolidation at
                                level and transportation to markets                farm level difficult. High
                                Selling produce to retailers         and           transportation costs due to
                                consumers                                          poor road infrastructure

Transporters(few)                Transportation of produce to markets              Poor        access     roads,
                                                                                   Levies/Cess.
Super markets in Urban centres    Retailing of unshelled produce                   Cost of preservation to
                                                                                   extend life
 30 Small scale specialized      Selling, peeling and packaging of produce         Poor market infrastructure
commodity based traders                                                            sheds         and       stalls,
                                                                                   Interruptions in delivery due
                                                                                   to occasional shortages.
Local Authorities                Provision of market        infrastructures,       Budgetary constraint
                                 collection of CASs/levy



4.3.5 Market Segments

Marketing is an essential component of income and employment generation. The development of the sub sector
is underpinned by increasing commercial production, income levels and more importantly provision                     of
production and market infrastructures. Marketing of the commodity is done at two levels; farm-level, retailing at
the market places and in the supper markets.
4.3.5.1 Farm-Level Marketing
The main marketing and value adding activities performed at the farm level included crop harvesting, pricing,
packaging and transportation of produce to market places. The primary agent is market broker who carries out
almost all of these functions. It was noted that farmers cannot generate economical volumes to market for
themselves, nor are they organized into marketing groups to facilitate the marketing of the product. As a result,
the market level broker controls the marketing chain. Lack of produce grading and appropriate on farm storage
was noted. The commodity value chain is at its weakest at the farm-level as the brokers dominate the marketing
chain; the farmer being merely a price taker, thus suggesting the need for chain upgrading through institutional
development. I.e. formation of farmers groups to leverage on marketing.

4.3.5.2 Retailing.

Retailing is the most vibrant segment of the trade in the commodity. Most of retailers were full time itinerant and
fixed location traders. They usually sell in tins which are specified in terms of their value, depending on size,

95
ranging from KES 20 to KES 30 for the unshelled Pea. Retailing of shelled Peas also takes place alongside
unshelled Peas, but by a different retailer. Shelled Peas were sold at much higher price, between shs 80 and 150
per tin. The price setting and those prevailing in the market were not related to quality of the product. Traders
reported that while supply appeared limited, the market demand was assured, hence all that is supplied to the
markets is immediately sold out. The fresh shelled produce is also sold in glasses and packed in plastic polythene
bags without reference to any weight. There was no standard unit of packaging for the market which distorted
market prices and volumes sold. Therefore; the introduction of standard packaging would improve
marketing and farmers incomes

4.3.5.3 Household

The most observable source of potential demand for Peas is the high income households particularly those in the
urban areas. The product is widely consumed as salad in many rural and urban up market households

4.3.5.4 Physical Markets

Wholesale and retailing are done at the main whole sale markets in Ndaragwa, Nyahururu, Oljoro-Orok, Olkalou
and open air-markets around the urban centers. Daily rural cluster markets for the street trader/ vendor were
identified to include Kasuku, Mailo-Inya, Shamatta and charagitta, Passenga, Pesi, and Ndundori which are also
terminal destinations for most of the produce in the district. These markets handle over 70% of total production.
It was observed that the wholesale markets are in poor physical conditions without sanitation, market stalls and
storage facilities. Traders mentioned specifically the need for rehabilitation and improvements of the main
wholesale markets. Both farmers and traders reported that, besides Marketing of the commodity is done at two
levels; farm-level, retailing at the market places and in the supper markets lack of information , they suffer losses
from inadequate marketing facilities

4.3.5.3 Market Levy/Cess

At the wholesale markets brokers are charged a fixed fee of shs 20 per day per wheelbarrow by the Local
Authorities. Retailers are taxed a standard fee of ksh 20 per day by the Local Authorities reflecting cost of apace
and facilities at the market places. While these charges may not be much, together with high transportation costs,
they increase the cost of trading and final consumer price.

4.3.5.5 Marketing Channel

The t marketing channels for garden peas in the district, from the farmer to the consumer are illustrated in figure
16 below. There is significant absence of wholesalers in the marketing of Garden Peas in Nyandarua North.

Figure 14: Garden Peas Marketing Channel




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                                         Producers



                                         Middle men/Brokers




                       Rural Retailers                                Spec. Retailers



                                 Consumer

4.3.5.6 Marketing Constraints

The marketing of Peas is rather simple as the produce is quickly sold after harvest owing to existence of a ready
market. This notwithstanding, traders reported the following constraints, a summary of which is provided in
table 29 below

      1. Multiple charges. From discussions nearly all of the Peas traders were small scale vendors generating
            little income from the sale of the commodity. Once in the market a levy is charged per bag and for the
            trading space. The net effect of these charges is eventually transferred to the consumer who ultimately
            pays higher retail price.
      2. Poor Market Infrastructure. The poor physical conditions of the wholesale markets are a deterrent to
            market trading and increases post harvest losses hence cost of doing business and thus reduce traders‟
            returns.
      3. High Transportation cost, due primarily to poor access roads is a major cause to high market prices.

      4. Market Information. From discussions, it was noted that traders do not have systematic ways of
            accessing information on commodity prices and market opportunities.
Table 27 : Constraints and Recommended Interventions
             MAJOR                            CAUSE                           EFFECTS                       RECOMMENDED
       CONSTRAINTS                                                                                         INTERVENTIONS
     Multiple charges by          Need by Local Authorities to         Increased cost of trading    The Municipal Council should
     Local Authorities            maximize revenue                     and reduced profitability    review policy on levy charges and
                                                                                                    consolidate the various charges into
                                                                                                    a one stop payment
     Poor               market    Low investment priority in market    High transaction     cost,   Upgrade the existing market
     infrastructure               infrastructure deployment            poor hygiene                 structures and facility as outlined in
                                                                                                    the action plan
     Poor market information      Poor dissemination,     limited      Poor market decisions,       Establish market information points
     flow and dissemination       market surveys and information       Low returns to traders       for briefs on prices, supply, and
                                  materials                                                         demand trends, and enhance ICT
                                                                                                    and media related technology and
                                                                                                    extension       services,     support
                                                                                                    exchange tours
     High transport costs         Poor access roads                    Increased cost of trading,   Improve rural access roads , bridges
                                                                       reduced profitability        to reduce cost of transportation




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4.3.5.7 Recommended Interventions

     1. Upgrading market infrastructure and facilities: Traders would want to carry out their business in a
          clean physical environment with necessary enabling auxiliary facilities. As part of the wider effort to
          improve the business environment, it is important to improve the physical conditions of the wholesale
          markets to enhance competitiveness in the trading. This can be achieved through increased investments
          in development of wholesale markets including construction of grading, storage and collection centers
     2. Market information and dissemination: Market information is critical for efficient operation of the
          marketing system. In order to improve access and flow of market information, it is necessary to
          strengthen extension services. In this regard the MoA, working in collaboration with private sector
          business development services providers and KACE should make information available to farmers and
          traders a like through simple market bulletins, ICT related media, market studies, internet and mobile
          telephony on a regular basis so as to enable them respond more effectively to market needs. Establishing
          rural information dissemination points or villages close to the farmer provided an added advantage.
     3.
          As a high value commodity and highly nutritious product there is an opportunity to promote
          consumption through awareness campaigns. The market could be better organized with a market chain
          leader who would co-ordinate and link farmers to markets.

4.3.6 Value Addition


For the fresh market, the harvested pods are sorted and packed. Washing is not desirable as it may bruise the
pods; so soiled pods are discarded during sorting along with malformed or diseased pods. Rejected pods are
excellent animal feed and can also be used as green manure. Some value addition activities were noted being
undertaken in the district by Mawingu Fresh Growers and Kaage SHG who also participate in negative and
positive seed selection. Opportunities exist to add value through grading, threshing and packaging for local
market in the groceries and super markets.

4.3.7 Costs and Margins


4.3.7.1 Gross Margin

Seed is the most important input in the production of Peas. Available data at the time of study estimated the
average cost of establishing Garden Peas enterprise at Shs 15,160 per acre comprising mainly of seed and labour.
The gross margin was estimated at shs 20,840 per acre at estimated gross revenue of shs 36,000 per acre. This
could be higher depending on the level of crop management. The work sheet is provided in appendix I

4.3.7.2 .Marketing Margins


98
During discussions, traders reported that their marketing margins in the commodity trade depended on how
competitive the market is, seasonality and the cost of transportation. The value share for actors in Peas marketing
chain is summarized in table 30 below. The work sheet is provided in appendix I

Table 28: Value share of actors in the marketing chain
1                   2             3              4                  5               6                 7

Chain Actor           Variable   Selling price    Gross             Added Value     Gross             %Value share
                      cost                        Income                            margin%
Farmer                316        750              434               750             57.86             33.3

Market broker         750        1250             500               500             40                22.2

Wholesaler            1535       1750             215               500             12.3              22.2

Retailer              1985       2250             265               500             11.8              22.3

                                                                    2,250                             100


The broker bought the produce at a farm gate price of shs 750 per bag and sold it to the wholesaler at shs
1,250 per bag, giving her a margin of shs 500 per bag and this reflected his/her commission. At the market,
the retailer bought it at shs 1,750 per bag and later sold it at shs 2,250 per bag, being the final consumer price,
earning him/her a margin of shs-500 per bag. The value share reflected the percentage of the cost each Actor put
in the chain and final retail price each Actor manages to capture. The farmers‟ gross income and value share was a
big share of his/her total revenue, being 57.8% and 33.30% per bag respectively and could be higher with an
increase in farm gate price.


4.3.8 Governance and Services


In the Peas commodity value chain, several institutions and organizations were identified which play various roles
as provided in table 32

Table 29: Summary of the major public Stakeholders in the Value Chain
NAME                                    SPECIFIC                 SERVICE
                                        PROVIDED
Input Supply Systems:                                                             Limitation
Pest Control and Product Board (PCPB)   Licensing, policy enforcement, and        Weak capacity to effectively control
                                        Monitoring of accreditation and           and monitor standards and
                                        application of chemicals and              distribution of agrochemicals, long
                                        pesticides use                            period for registration of local
                                                                                  stockiest
Production System:
Ministry Of Agriculture                    Distribution of seeds and provision    Inadequate extension staff, lack of
                                           of Extension services                  training       in     agribusiness
                                                                                  development       and   inadequate
                                                                                  budgetary allocation
Marketing System:
Local Authorities                          Provision of physical infrastructure   Weak      capacity   to  monitor
                                                                                  regulations      and    budgetary
                                                                                  limitations


99
4.3.9 Governance Issues

The main governance issues in the Pea value chain were concerned with chain relationship, capacity building and
market standards and institutions.

4.3.9.1 Chain Relationship

The business of farming thrives in a stable relationship environment where transactions are transparent at both
buyer and seller levels. Links between the farmer and the buyer in the commodity trade was weak an ad-hoc. The
market value chain is heavily buyer driven and controlled by the broker who has all the information in the chain.
The case for Garden Peas is unique one where traders have limited contact or link with the farmers. This has
made consistency in supply of quality product difficult.

4.3.9.2 Standards, Quality and Grades

Standards make trading become remunerative. Grading of produce at both the farm and market places was totally
absent. The produce is packed in 50 kg sisal bags and sold in tins and plastic bags at the market places. The lack
of standards makes pricing difficult. In order to facilitate profitable trading in the commodity, there is need
introduce standard unit measure based on size and grades and produce quality.

4.3.9.3 Market information

It was noted that market information and dissemination on the commodity is weak and inadequate due partly to
the fact that the produce is not widely traded. In order to improve market information, the program should link
with the Kenya Agricultural Commodity Exchange Ltd (KACE) to enhance provision of market information and
dissemination to the farmer and traders. Better information dissemination can also be facilitated through rural
based market and agribusiness information points at different market and divisional centers, use of mobile
telephony, radio and trade net system.

In addition the multiple levies, although not a major concern, have made trading for the small trader who sells
small quantities unprofitable. There is thus need to consolidate all the levies into affordable one-time stop fees.
To address the twin problems of standards and multiple levies, it may be necessary for the project to convene a
stakeholder‟s workshop to discuss the various taxes and levels with a view to leaving only those that add value to
the stakeholders including farmers and traders.




100
      4.3.10 Summary of Major Constraints and Recommended Interventions


Farmers     reported adequate availability of quality seeds and inputs to meet their requirements. However, they
noted with concern the low levels of production and low quality produce. Poor rural access roads and poor
physical market conditions were also mentioned. The following is a summary of the major constraints and
recommended interventions

Table 30: The major constraints and recommended interventions
    CONSTRAINTS                RANKING                 RECOMMENDED INTERVENTIONS

Low volume and quality         1            Intensify production and increase land size under the crop to gain
production level                            economies of size as well as capacity building

Poor market information        2             Establish market information centers for briefs on prices, supply, and
                                            demand trends and enhance use of mobile telephony

Poor           access   road   3            Improve rural access road infrastructure network as outlined in the
infrastructure                              district action plan

Poor market infrastructure     4            Upgrade the existing market infrastructure structures and facilities as
                                            outlined in the district action plan




4.3.11 Institutional Development in the Commodity Value Chains

4.3.11.1 Farmers Organization

Farmer groups are a cross cutting issue affecting development of commodity value chains. It is not uncommon to
find farmers groups engaged in the production of more than one crop hence their presence in the target
commodity value chains. Being important actors in production and market chains, the farmers groups were
assessed with respect to their contribution and access to inputs and markets.

The producer groups are important for effective participation of farmers in the value chains. A well organized and
functioning farmer groups promotes market –oriented farming system to produce products that are demanded by
the market. They invest in good agricultural practices and provide market information and value to its members
by ensuring quality services and good governance. They help in general awareness creation and achieving
economies of scale through bulk procurement of inputs, storage, transportation and marketing of produce.
Several farmer groups were identified to be involved in seed supply, production and marketing levels in the
different commodity value chains

4.3.11.2 Input supply




101
A total of 80 farmer groups were active in the production of the target commodities. Of these a bout 12 farmer
groups were identified to be involved in potato seed multiplication, two in production and one in value addition.
Another 20 groups were involved in production and marketing of Potatoes.

Although there were few farmers groups identified to be involved in any appreciable level a bout 40 groups were
identified to be engaged in production and marketing of cabbage and another two were engaged in Garden Peas
processing.

About 20 groups were engaged in the cabbage production and only two were identified to be engage d in Garden
Pea processing. The others were engaged in production of other crops. While the number farmers groups
reported across the 3 commodities value chains was good it was not impressive enough as more groups could be
enlisted.

The organizational development was relatively better in Potato and poorer in the Garden Pea and
Cabbage sub sectors with nearly of the groups experiencing management problems. Poor governance
and weak leadership was often cited, suggesting nedd for enhance training in governance issues


Regarding access to inputs and output markets, the groups faced a number of challenges in their operations
including lack of capital to procure needed inputs which often resulted in low use of the required input, poor
production technologies ,high input costs and inadequate technical skills because they had not received
appreciable training in value addition and agribusiness development. These constraints are summarized in table
34.


      1. Lack of technical Know-how: It was noted these groups had better access to technical training and other
            services and were regularly visited by the extension officers. The groups in seed multiplication also
            received new genetic materials for planting. However, it was reported by farmers that the groups were
            still weak and functioning poorly. They lacked technical skills, capital, had weak governance and
            experienced difficulties in accessing readily quality seeds at affordable prices.
      2. High Input costs: Farmers liquidity constraint has the effect              impeding their production potential
            .Institutively relaxing the conditions for credit access as well as reduced input prices would     increase
            availability of credit to farmers thus enhancing the ability for increased input use.
      3. Lack of economies of Scale: Closely related to the problem of weak farmers organization was the lack of
            economies of scale; usually fragmented and small scale pattern of production and marketing. The small
            quantities discourage commercialization. Farmers were not only scattered geographically, but often
            produce for subsistence or below potential. Extension services in the district have emphasized support to
            individual farmers instead of groups that would otherwise provide better opportunities to use limited
            resources effectively. While the old-age approach of extension farmer contact on- one- to -one basis is




102
         effective, it is expensive and unsustainable as the sole means of reaching farmers with agricultural
         technology.


      4. Access to markets: Similarly, tendency was also observed with regard to access to markets and market
         information. Poor market access leads to high degree of uncertainty, low profitability and lack of ability
         by the farmer to meet ever changing market requirements. This has resulted in low quality product and
         lower prices for the farmer. For effective supply, and access to markets, farmer groups require market
         information, storage facilities and transportation. The inadequate access to these services was exacerbated
         by poor access roads, and inadequate market infrastructure. The deficient market information often leads
         to market distortions, lower price, and hence low income to the farmer.


4.3.11.3 Trade Associations

Traders Association is another area of institutional necessary for trade promotion. Traders often feel
misunderstood or mistreated by farmers and public authorities, but trades who organize themselves
always develop better linkages with the farmers and service providers. Traders Associations can improve
rules, regulations and enforcement of quality standards by their members. Public institutions always
respond positively to organized traders offering valuable support services. There were no Traders
Associations across all the commodity value chains that could lobby for traders interests and build
relations with farmers and other actors in the chain

However, in the Potato sub sector, there was the KENAPOFA operating at the national level with
minimal presence in the district. The creation and development of the Association was supported by
PSDA/GTZ, however the Association remains weak and ineffectual to give farmers the needed
services.

At the time of study, the District Input Traders Association was information. There was also the Seed
Traders Association of Kenya. Farmers reported that the linkage of these Associations with public and
private sectors is weak and poor as they function in isolated environments. There were no specialized
traders associations working in the Cabbage and Garden Pea sub sectors in the district.

Local Authorities can promote better trading by ensuring good management and facilities at the market
places. Hygiene, security, trading space and health facilities are some of the urgent problems to address.
Local Authorities should involve traders in decentralized management of the markets since it they
traders who work daily at the market places. Where possible, the market levies should be rationalized
and visibly used to improve facilities and services at the market places.

Table 31: Summary of Farmer’s organization constraints


103
CONSTRAINTS                       CAUSES                         EFFECTS                         POSSIBLE
                                                                                            INTERVENTIONS
Lack of Technical     Inadequate training and capacity      Low production            Training and capacity building on
Know-how              building on holistic agribusiness     Loss of opportunity       holistic agribusiness management
                      management         and         farm   for              profit   and farm development, expand
                      development                           maximization              extension and supportive services
High     cost    of   Low investment in potato seed         low production            Empower FGs to engage in input
inputs                production and multiplication.        low market margins        multiplication,
                      Low use of fertilizer and other       low farm income
                      farm inputs                           inadequate availability
Access to markets     Poor access roads                     loss of produce due to     Construction and rehabilitation
                      Poor physical conditions of the       perish ability             of access roads and markets,
                      markets                               loss of market             setting grades and market
                      Poor market in information flow.                                 standards ,provision of market
                                                                                       information


4.3.11.4 Recommended Interventions

          In spite of the constraints cited above, a farmer‟s group founded on strong Common Interest Groups
          (CIGs) remains a sustainable      and effective approach through which the farmers can strengthen their
          bargaining power and reduce input transaction costs. A farmers group enhances communication and
          interaction among the individual farmers and between them and other actors in the value chain, thus
          farmer to farmer extension is amplified. .Sustainability of such groups would be enhanced if farmers
          focus on producing for contract markets.

      1. Enhance training and capacity building for farmers groups in organizational development,
          governance and management skills, production and agribusiness development in particular
          market research and value addition would leverage their potential to increase commodity
          production. This can be achieved through collaboration with the MoA and private sector
          business development services providers.

      2. Increasing the provision of extension and supportive market institutions such as agricultural commodity
          exchange will enable farmer‟s access to capital and help them manage price risks associated with technical
          constraints.

      3. In addition, providing market information, especially over the community FM radio stations, mobile
          telephony and dissemination through local information points have a high penetration potential. Setting
          grades and standards is also critical to accessing markets

      4. Improving physical infrastructure, especially the rural access roads will facilitate the connect
          with input suppliers and product markets

      5. The project in collaboration with the MoA should continue to encourage formation of farmers
          groups to help enter into contracts, access extension and financial service

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5.0 PROPOSED DISTRICT ACTION PLAN

5.1 Introduction

This Action Plan has been prepared based on the discussions with the various stakeholders and analysis of
information collected in the project area. The purpose of the Action Plan is to guide and facilitate            the
implementation of investments in production and market development               of the target VC commodities by
SHoMaP. Several constraints and opportunities were identified at different levels in the value chains of the target
commodities. These were prioritized in reflection of their importance to the farmer and translated into an Action
Plan with recommended interventions to advance the achievement of the SHoMaP goal and objectives. The
Action Plan has focused on specific indicative investment projects to be implemented by SHoMaP in the district
during the project life. It recognizes that specific circumstances relevant to the constraints differ and each issue
may need some latitude in determining the content of each investment project.

The VC analysis has showed that each of the VC commodities face unique constraints at each level requiring
specific interventions. However, it is important to note that there are crosscutting constraints and synergies which
are not peculiar to anyone VC for example infrastructure, physical markets, multiple- taxation, lack of access to
credit and high transportation cost. Within this context, the Action Plan has focused on the following core
investment areas for SHoMaP.

      1. Seed Multiplication: The analysis has revealed that inadequate availability and high cost of quality
         potato seed is one of the major constraints leading to low production and low quality produce hence low
         income o the farmer. During the study it was reported that in some cases farmers are sold adulterated
         and underweight seeds. A proactive support to potato seed production and multiplication by the project
         to increase quality seed supply and productivity is therefore imperative.

      2. Technical Training and Capacity Building: Analysis of the constraints in all the VCs has revealed
         that there is inadequate technical knowledge on crop production ,post harvest handling, positive seed
         selection and organization development among farmers and the inability of stockists to interpret the
         farm input utilization manual and provide advice to farmers are major limiting factors to production .
         In addition it was noted that the extension staff equally are inadequately equipped in providing
         agribusiness development skills to promote market development of the target VC commodities. This has
         consequently led to low yields and poor quality produce. Hence, it is recommended that all participating
         SSF and input stockists be provided with training on the above mentioned areas to improve productivity
         in value chain commodities. This can be achieved through collaboration between SHoMaP and other
         service providers such as KARI, MoA, HCDA, and local NGOs such as AGMAK

      3. Improving Access roads infrastructure: The study has established that the effect of poor roads as an
         issue cuts across all players and actors in the three commodities value chains. This has led to inefficient
         distribution and marketing of the inputs and target commodities. The immediate consequent is the high

105
         cost of transportation and costs of doing business; hence, leading to reduction in incomes for input
         suppliers, farmers and traders in the market chain. In view of this, the project should work in
         collaboration with Ministry of Roads, the Constituency Development Fund and Local Authorities to
         improve the conditions of the identified access roads in the producing areas as prioritized in the Action
         Plan

      4. Improving Market Infrastructure and Facilities: The study has showed that traders incur major
         losses due to lack of storage facilities and poor environmental sanitation at the wholesale markets in the
         district .Thus leading to traders loosing through perishability of the commodities and loss of markets
         respectively. In collaboration with Local Authorities        it is necessary for SHOMaP to support the
         development /construction of modern wholesale and retail markets with the necessary auxiliary facilities
         such as grading sheds, cold storage, water and sanitation facilities.

      5. Market Information and Dissemination: Access to adequate and accurate information is one of the
         key pillars to successful market opportunities. It was noted that farmers operate in information poor-
         environment regarding prices and market outlets. This has created opportunities for brokers, resellers and
         other intermediaries to exploit the poor farmers and traders. Even with            the absence of these
         intermediaries, farmers and traders would still continue to obtain low income due to poor access to
         pertinent information. In order to empower farmers and traders; it is recommended that, SHoMaP
         should work in collaboration with other relevant stakeholders such as KACE, HCDA, MOA and MOCM
         to support    and enable SSF access price information and market opportunities. Furthermore, the
         development and dissemination of market information materials, establishment of market information
         points and exchange tours would strengthen stakeholder‟s access to new markets and harness their
         competitiveness.

      6. Value Addition: In any form of business value addition is critical for improved prices and income.
         Value addition and processing of the commodities was except in potato. This was due to inadequate
         investment in processing and lack of awareness of the importance of value addition in the target
         commodities. On this basis, a collaborative effort between SHoMaP and other relevant institutions such
         as KIRDI, Public Universities such as Nairobi University, Egerton University, JKUAT, ATCs and Private
         Sector dealing with food processing and financial institutions be established and strengthened.
         Additionally, one of the other major constrains associated with value addition was inability to access
         credit due to lack of collateral. To deal with this problem SHoMaP should create a revolving fund to
         assist small scale processors to acquire appropriate processing equipments. Such revolving fund should
         be managed through existing Financial Institutions for onward disbursements to identified beneficiaries.
         In addition SHoMaP should support at least on small scale pilot processing unit in every divisions

5.3 Implementation Arrangements




106
The implementation of the action plan is expected to be achieved through effective partnerships and cooperation
with stakeholders in the district, all of whom have a role to play in one way or the other. Effective partnerships
with existing programs in the district including SHEP, NALEP, JICA and Non-governmental and Private sector
organizations are emphasized as vital as much as effective Commitment of SHoMaP in this process. The district
Action Plan identified feasible projects, activities to achieve the outputs, implementation approach, and
responsible institutions/organizations best placed to take responsibility for implementation. These investment
projects are summarized in table 34 below. Specific activities that will address cause of the realization of these
projects within the value chain are listed alongside.




107
Table 32: Proposed District Action Plan
Project             VC specific    Rationale And        Activity                                     Implementation Arrangement                     Expected output        Time       Potential
                                   Objective                                                         Implementation        Potential                                       Frame      Beneficiaries
                                                                                                     Approach              Service
                                                                                                                           Provider

Seed                Input Supply   To        increase   training of farmers group on          seed   setting up farmers field   Extension           Quality seed                               80 small
Multiplication                     quality       seed   selection and production                     schools demonstration      officers                                                       scale
                                   supply                                                            centres                    KARI                                                           farmers
                                                        supporting    farmers     field   schools                               CIP                                                            groups
                                                        demonstration                                                           KEPHIS

Training     and    Production     To       enhance     Training and Capacity building on :              Workshops/semin           MOA            Developed              continuo            About
Capacity                           technical skill of                                                     ar                        KARI           training materials     us                  10,000
Building                           farmers        and       Production (GAP)                            Demonstration s           KEPHIS         Number            of   process
                                   input suppliers          Post harvest handling                       On farm trials                            farmers organized                 Farmers and farmer
                                                                                                                                    HCDA
                                                            Organizational development and                                                         in      commodity                 groups
                                                                                                         Exchange visits           KEBS
                                                             management                                                                             clusters        and
                                                                                                         FFs                       Private        trained                           Input suppliers
                                                            Agribusiness development                                                sector         Capacity building                          MOA
                                                            Value addition                                                          BDS            and        training                        staff
                                                            Resource mobilization                                                                  reports
                                                            Market research and surveys
Small      scale    Production     To        achieve              Support       pilot     cabbage    Organize farmers in to     SHoMaP and          Increased                                  200 SSF
irrigation                         sustainable                    vegetable irrigation production    groups                     MOA                 production
development                        production                     along Pesi and Nyakoroko           Assist farmers with
                                   throughout the                 rivers                             water for irrigation
                                   year
Construction        Marketing      To          reduce   DIVISION            SPECIFIC ROAD            Use local unskilled and    SHoMaP to                     Number       2 years    29000 farm families
and                                production and                                                    skilled labour             work        with              of roads
rehabilitation of                  business cost        Ndaragua            Pesi-Mahinga road-                                  respective                    rehabilit
access road                                             Division            2Km                                                 authorities     ,             ated
                                                                            Karai –Nyakinyua-                                   Ministry      of
                                                                            road road -2Km                                      roads           ,
                                                                            Kamuka bridge                                       constituency
                                                        Olkalou Division    Mumbi-Silanga road-                                 development
                                                                            13 Km                                               committee
                                                        Oljoro-Orok         Kahii-Olobolosat
                                                        Division            road -11Km)
                                                                            Oljoro-Orok-
                                                                            Gathaigi-Silibwet-
                                                                            Oljoro-Orok-Gatimu
                                                                            road-6Km




108
Market            Marketing   To reduce post      Ndaragua            Ndaragwa                 Construction of market          SHoMaP        in              Number    2years     1000 traders
Infrastructure                harvest    losses   Division            wholesale/retail         slabs, stalls and sheds,        collaboration                 of
and facilities                and     improve                         market                   provision of electricity,       with       local              marketi
                              general                                 Sharmatta and            water and sanitation            authority       ,             ng with
                              environmental                           Sharagita        rural   facilities                      CDF , NGO                     all
                              and sanitation of                       markets                                                  and                           system
                              the market          Nyahururu Town      Nyahururu      whole     Construction          of        encourage                     running              8,000 farm families,
                                                                      sale market              storage and sheds for           private sector                                     and 300 traders
                                                                                               traders, water and              investments in
                                                                                               sanitation                      cost-effective
                                                  Olkalou Division    Olkalou         Retail   Upgrade          storage        cooling                                            2000 traders
                                                                      Market                   facilities, market stalls       facilities
                                                                                               and installation of
                                                                                               electricity and water
                                                                                               supply
                                                  Ol-joro-Orok        Mailo-Inya, Pasenga      Construct sheds and                                                                500 farm families
                                                  Division            rural market centers     collection                                                                         and traders

                                                                      Kasuku market            Construction               of                                                      1000 traders
                                                                                               modern market with
                                                                                               all auxiliary facilities-
         Value    Marketing   To        achieve   Training processors/farmers on value         Organize                  the   SHoMaP and          Diversified                    3 SHG, one per
         Additi               better prices for   addition                                     beneficiary      in       the   MOA                 product                        division
         on                   their produces      Support pilot small scale processing unit    groups
                                                  Facilitate credit    access to purchase      Organize        workshop
                                                  processing equipment                         and seminars
                                                                                               Link      them financial
                                                                                               institution for credit
                                                                                               access
6.      Market    Marketing   To link farmers                Transfer of information from      Mobile telephony                SHoMaP       in     Increased           continuo   29000 farm families
information                   with      market               the source to the recipient       Develop              market     collaboration       awareness of the    us
dissemination.                opportunities                                                    information bulletins           with KACE           market
                                                                                               Market        information       and MOA
                                                                                               displays




109
APPENDIX I: COSTS AND GROSS MARGIN ANALYSIS

PRODUCTION                              COMMODITY
ACTIVITY                                POTATO          CABBAGES      GARDEN PEAS
Gross Revenue                           80000           72,000        36000
Costs
Seeds                                   11000           24000         560
Fertilizer ( 4 bags 2,500per bag)       10000           12500         2500
Ploughing                               2000            2000          2000
Harrowing                               1500            1500          1500
Ridging                                 1500            0
Planting ( 8 man days)                  1200            1200          800
Earthling ( 8 man days)                 1200            1500
Pesticide : Ridomil                     1500            3000          4500
Spraying labor ( 2 man days)            300             300           1800
Grading ( 4 man days )                                  0
Harvesting ( 20 man days)               3000            1500          1500
Total Cost                              33200           47500         15160
Gross margin per Ha                     46800           24500         20840
Revenue per bag                         1000                    800              750
Cost per Bag                                     415            528             316
Margin per Bag *                                 585            272              434
MARKETING (Wholesaler)
ACTIVITY                                POTATO          CABBAGE       GARDEN PEAS
Buying price                            1350            1000          1250
Harvesting                              0               0             0
Bagging                                 20              20            15
Packaging                               0               0             0
Transportation : Produce                100             100           50
Self Return Transport                   200             200           200
Cess                                    5               5
Market levy                             20              20            20
Commission                              50              50
Total Variable cost                     1745            1395          1535
Gross sales                             2000            1600          1750
Trading margin                          255             205           215
PROCESSING
ACTIVITY                                POTATO          CABBAGE       Garden Peas
Buying price                                     800
Washing , Peeling , Frying & Drying     1400
Cooking fat                             780
Firewood                                200
Polythene Bag : 5@100                   500
Sealing wax                             100
Salt                                    20
Total Cost                                      3,800
Gross sales 320 (25gm) packets @ 10/=   3200
Gross sales 160 (50gm) packets @ 20/=   3200
Total Gross Sales                       6400
Gross Margin                                    2,600
110
MARKETING (Retailer)
ACTIVITY                   POTATO   CABBAGE    GARDEN PEAS
Buying price               2000     1600       1750
Harvesting                 0        0          0
Bagging                    20       20         15
Packaging                  0        0          0
Transportation : Produce   0        0          0
Self Return Transport      200      200        200
Cess                       0        0          0
Market levy                20       20         20
Total Variable cost        2240     1840       1985
Variable costs per bag     2240     1840       1985
Gross sales                2500     2000       2250
Gross margin               260      160        265
MARKETING (Broker)
ACTIVITY                   POTATO    CABBAGE   GARDEN PEAS
Buying price               900      800        750
Harvesting                 0
Bagging
Packaging                  0        0          0
Transportation : Produce   0        0          0
Self Return Transport                          0
Cess
Market levy                0
Stall rent                 0
Total Variable cost        900      800        750
Gross sales                1200     1200       1250
Trading margin             300      400        500
Trading Margin per bag     300      400               500




111
APPENDIX II: LIST OF RURAL ACCESS ROADS FOR REHABILITATION

Name of Road               Division       Location     Estimated       Remarks
                                                       Distance (Km)
Pesi-Mahinga               Ndaragua       Ndaragua     2 Km            Priority

Karai-Nyakinyua            Ndaragua       Ndaragua     2Km             Priority
Gachoya-Humprey            Ndaragua                    3Km             Long term
Kamuka Bridge              Ndaragua                    Na              Priority
Bari-Ngurumu Pri.sch       Ndaragua       Mailo-Inya   6km
Kamotho Bridge road        Ndaragua       Leshau       2km
Loadwar-Godfrey Bridge     Ndaragua       Kanyagia
Ndogino-Mahianya-Kiahiti   Ndaragua       Mathingwa
Highland star              Ndaragua
Mumbi-Siranga Rd           Ol-Kalou                    13              1
Kahii-Olobolsat            Ol-Joro-Orok                11
Ol-JoroGathaigi-Silbwet                                8km
Ol-Joro-Cannan-Olbolosat                               6km
Ol-Joro Gatimu Rd                                      6km




112
APPENDIXII: LIST OF MARKETS FOR UPGRADING/REHABILITATION
AND DEVELOPMENT

Name of Markets                Division
Nyahururu-         Wholesale   Nyahururu/Ndaragua   Expansion
market
Ndaragua Market                Ndaragua             Priority
Mailo -Inya                    Ndaragua             Daily market
Stamatas                       Ndaragua             Daily market/Collection centre
Ndondori                       Ndaragua             Daily market/collection point
Passenga                       Ndaragua
Ol-Kalou Market                Ol-Kalou             Priority
Rorii                          Ol-Kalou             Collection point
Oljoro Orok Market             Ol-Joro-Orok         Priority




113
APPENDIX IV: FARMERS GROUPS AND THEIR CHALLENGES

No    Name of the farmer      Division       Main crops    Main challenges reported
      Group
1     Mugumo-ini Youth        Nyandarua      Potato,       Fertilizer & seeds expensive and some of poor quality,
      Self Help Group         North          Cabbage       Pests and diseases
                              (Ol‟Kalou)     Peas          Lack of organized marketing, middlemen
                                                           Poor road networks
      (M9/8F)                                              Poor quality seeds
                                                           High input prices e.g. fertilizer, Fungicides expensive

2     Beraka    Self   Help   Nyandarua      Garden peas   High cost of inputs
      Group                   North          Cabbages      Lack of certified seeds
                              (Ol‟Kalou)     Potatoes      Poor infrastructure
                                                           Crop is rain fed, flocks in the market
                                                           Pest and Diseases e.g. Bacteria wilt
                                                           Extended bags
      (3M/14F)                                             Lack of on farm-Storage
                                                           Poor access road Infrastructure
                                                           Brokers/middlemen
3     Karima      Youth       Nyandarua      Potatoes      Lack of certified seeds
      Development Group       North          Cabbages      High cost of fertilizers and chemicals
                              (Ol‟Kalou)     Carrots       No defined markets
      (M21/F2)                                             High cost of seeds
                                                           Low prices and price fluctuations
                                                           High cost of production
4     Kigande Self Help       Nyandarua      G/Peas        Lack of capital
      Group                   North          Potatoes      Climatic change
                              (Ndaragwa      Cabbages      Pests and diseases
                                                           Marketing problems
      (15M/10F)                                            High transport cost
                                                           Poor roads
5     Karagoine Self Help     Nyandarua      Potatoes      Lack of certified seeds
      Group                   North          Cabbages      High cost of farm inputs
                              9Ndaragwa)     G/Peas        Lack of stable markets
      (16M/17F)                                            Pest and Diseases
                                                           Lack of good markets
                                                           High cost of labour
                                                           Water, no irrigation facilities
6     Lake Olborosat          Nyandarua      Carrots       Low prices and fluctuating market prices
      Makereka Iriani SHG     North          Cabbages      Lack of market
                              (Ndaragwa)     Potatoes      High cost of labour
      (M21/11F)                                            High cost of farm inputs
                                                           Inadequate water for irrigation
                                                           Lack of affordable certified seeds
                                                           High cost of fertilizer
7     Ukulima Bora Self       Nyandarua      Potatoes      High cost of inputs e.g. fertilizers
      Help Group              North          Peas          Pests and diseases e.g. Bacterial wilt
                              (Ol‟Kalou)     Cabbages      Unpredictable prices in the market
      (17M/5F)                                             Extended bag problem
                                                           Poor roads
                                                           Low prices of produce and unpredictability
                                                           No proper package
                                                           Exploitation by middlemen (brokers)
                                                           Marketing problem
8     Mutahi    Self   Help   Nyandarua      Cabbages      High cost of farm inputs
      Group                   North          Peas          Drainage
                              Oljoroorok     Carrots       Marketing
                                                           Infrastructure
                                                           Water during dry season
                                                           Low prices
                                                           Rainfall distribution and reliability
9     Gatimu Dairy            Nyandarua      Cabbages      High cost of farm inputs
      &Horticulture           North          Carrots       Drainage
                              (Oljoroorok)                 Feeder roads are very poor
114
      (8M/3F)                                            No ready market
10    Nyairoko Kariko    Nyandarua       Cabbages        High input prices
      Self Help Group    North           Peas            Pests and diseases
                         (Oljoroorok)    Carrots         Poor market price
      (18M/6F)                                           Poor market information
                                                         Drainagez
11    Pyort              Ol-joro-Orock   Potato-seed     Technical skills,
                                         multipication   Lack of capital
12    Mireri SHG         Ol-Joro Orok    Garden Peas     Technical skills
11    Ukulima Bora SHG   Nyandarua       G/peas          Price fluctuations.
                         North           Cabbages        High transport costs
      (12M/14F)          (Mirangine)     Carrots         Low technical know-how
12    Mugumo-ini SHG     Nyandarua       Cabbage         Fluctuating prices
      (10M/9F)           North           Kales
                         (Mirangine)




115
APPENDIX V:             INVENTORY        OF       INPUT     SUPPLIERS/STOCKISTS                    IN
NYANDARUA NORTH
NYAHURURU                 NDARAGWA                 OL KALOU                  OL JORO OROK
Thiriku Pharmacy          Ndaragwa Farmvet         Racheal      Kahuruko     Hope Agrovets
Farmers Aid               Nuclear Stores           Stores                    Charagita Agrovets
Customers Choice          Yes We Can               Umoja Farm Supplies       Pivot Farm Supplies
Farm Input & Services     Green Acres              Umoja Stores              Country       Focus
KFA                       KAPE           PHARM     Tumaini Agrovets          Agrovets
NCPB                      Agrovets                 Bemwa Agrovets            Jogamari Agrovets
Green Acres               Malewa Agrovets          Salga Agrovets            Green Farm Input
Kenya Seed                Thirikwa Agrovets        MMS Agrovets              Miami Stores
East Africa Seed          Vetagro                  Sunset Agrovets           Davima        Farm
Seminis Eat Africa        Country Focus            Quality Farm Supplies     Supplies
Griffaton Seeds           KFA                      Equator Agrovets          Central Agrovets
Amiran K Ltd              NCPB                     Jaribu Farmers Co-op      Vumilia        Agro
Faida Seeds               Farm Factor              Society                   Supplies
Farm Chem                 Munene        Kabocha    G-Eight                   Phojos Enterprises
Osho Chemicals            Stores                   Viema General Shop        Central Agrovets
Twiga Chemicals           Merit Farm Input         Jopam Agrovets            Geomali Agrovets
Bayer East Africa         Syngetta Chemicals       Wakulima Agrovets
MEA Fertilizers                                    Malangine Agrovets
KELPHOS Fertilizers                                Farm      Factors    &
                                                   Services




APENDIX VI: LIST OF PARTICIPANTS
NAME                             ORGANISATION                      CONTACT ADDRESS
Mary Karanja (Mrs.)              DAO                               DAO office Nyandarua North


116
Ann Macharia                              Deputy DAO                             Nyandarua
Jacinta Ilai                              District Horticultural Crops Officer   Nyandarua
Nyamwamu                                  IFAD Desk officer                      Nyandarua
Violet Kahiga                             Field officer                          Ndaragua
J.Kanyingi                                DEVO                                   Ndaragua
Mrs Karamu                                DAO                                    Ol-Joro Orok
Mr Mwangi                                 DAO                                    Ndaragua
M.Kariga                                  KARI-Tigoni                            Kari-Tigoni
J.Sagini                                  HCDA                                   HCDA
Input Suppliers
J.Njoroge                                   KFA                                         Nakuru
Daniel Mucheni                              Vumilia Agro supplies                       Ol-Ojoro-Orok
Milka Wambui                                Farm Inputs Services                        Nyahururu
District Stakeholders Discussion Group:
John K. Kahori                                  Uiguano FADC Chairman                  Oljoroorok
Charles Kimani                                  KENAPOFA                               Ndaragua
Rosemary Gichuhi                                Tunza Afya ya Jamii Yako               Nyahururu
S.M. Maina                                      Stockiest                              Nyahururu
Joseph M. Kimotho                               MoA                                    Olkalau
David Muraya                                    Farmer                                 Olkalau
Margaret Kibe                                   Taifa SACCO                            Ndaragua
John Kamande                                    Farmer                                 Olkalau
Leonard Mbugua                                  Stakeholders Forum (Chairman)          Olkalau
Stephen Nyanja                                  Muthethia S.H.G.                       Oljoroorok
Farmers Focus Group Discussion                  Ndaaragua Division
John Mwathi                                     Farmer                                 Ndaragua
Duncan M.Njoroge                                Farmer                                 Ndaragua
W.Karanja                                       Farmer
Stephen Mwithi                                  Farmer                                 Ndaragua
Dorcas Wanjiku                                  Farmer                                 Ol-joro-Orok
John K.Gikonyo                                  Farmer
Anne Wambui                                     Farmer
Grace Wangui                                    Farmer
Processor
Gwathikain Igai Women Group                     Processor                              Oljoro-Orok
Nancy Wanjiku                                   Farmer
Mercy Nyambura                                  Farmer
E.Njeri                                                                                Ndaragua
Precila Wairimu                                                                        Olkalou
Esther Wanjira
Esther Muirigu
Ann Githinji                                    ATC                                    Nyahururu




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