World Economic Forum. Business Alliance Against Chronic Hunger

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1 Status Plan activities May 2008 Results Field Day Siaya and Conference Siaya 7 th / 8 th May 2008 World Economic Forum

2 National Council Kenya - member list status 3 rd April 2008 Name Akin Adesina Israel Otieno Agina Alastair Campbell Steve Cowell Glenn Denning Saleem Esmail Peter Francombe Samuel Gichohi Amaan Khalfan Anders Lindgren Kinyua Mbijjewe Margaret Mimoh Alex Munyao David Mureithi Eustace M. Muriuki James Mutonyi James N. Mwangi Esther Muiruri Mwendia Nyaga James Nyoro Fred Ogana Peter Ondeng Peres Oyugi Okoth Rakula Manoj Shah Pauline Vaughan David Waweru Muhammed Warsama David S.O.Nalo Romano M. Kiome Title Vice President Policy & Partnership Director Managing Director Managing Director Director Chief Executive Officer General Manager Development Managing Director Managing Director Corporate Affairs Director Operations Manager Business Development Manager, Africa Managing Director General Manager/Director Country Manager Managing Director & CEO Business Growth & Development Manager Managing Director & CEO Director Country Director General Manager Director Director Managing Director Managing Director Head of M-Pesa General Manager KBC Permanent Secretary Permanent Secretary Organization Agra/Rockefeller Spectre Promasidor Dominion Farm MDG Centre Western Seed Seminis Care International TNT Tetra Pak Monsanto Honey Care Sealed Air Unilever MEA CNFA-Agmark Equity Bank Equity Bank National Oil Tegemeo Institute Technoserve Millennium Farms Saga Thrift Mace Foods Osho Chemicals M-Pesa KBC Nation Media Ministry Kenya Ministry Kenya World Economic Forum 2

3 Plan activities February 2008 to March 2009 summary impact Siaya Implementation of 14 Business led Programs, addressing * households supporting to venture into new business opportunities farmers securing and increasing livelihood with diversification into high value crops 800 wholesalers and retailers engaged into new businesses, distributing affordable and vital necessary goods to consumers at affordable prices. Increasing services access : loan access, saving schemes with Saga and Equity and cash service transfer with M-Pesa. * household number excludes Sweet Sorghum sourcing contracting acres and MV maize productivity program with Farm households World Economic Forum 3

4 Plan activities February 2008 to March 2009 summary impact for Siaya 120 Mio Ksh (1.9 mio USD) net revenue potential (from March 2009 onwards), income generation in the District with Onions, Tomatoes, Chilies, Beekeeping, Kerosene and Rice retailing activities Additional benefits: Increased employment generation along the value chains Capacity Building upgrade Increased efficiency in supply chain Transfer of best business practices through alignment of all businesses in the Business Alliance creating synergies. World Economic Forum 4

5 2008/2009 Activities Overview Food Value Chain Agricultural Inputs Storage & Transport Selling/ Sourcing Packaging / Processing Retail Distribution 1 Staple Crops Agricultural input programme (Monsanto, Western Seed, Osho Chemicals, MEA) 2 3 Maize purchase agreement (Promasidor) Chili sourcing, Macefoods 9 Agrodealer diversification (Monsanto) 10 Financial transfer services (Safaricom) High-Value Crops 4 Beekeeping & honey sourcing (HoneyCare) 8 Soy processing and packaging (Sealed Air) 11 Kerosene retailing (National Oil) 12 5 Onion sourcing retailing (Unilever, Seminis) Bicycle retailing (Promasidor) Tomato retailing (Seminis) Sweet Sorghum (Spectre) 14 Rice retailing Dominion Farms New traders Unilever World Economic Forum 5

6 Activities Agriculture: Actions & Timing # Activity Champions & Partners 2008 Goal Actions & Timing 1 Agricultural Inputs Maize Monsanto, Western Seed, Saga, MEA, MDG Centre Commencement in progressive shift from previous smart-subsidy scheme to commercial business model, targetting 1,000 farmers in the original MV1 Sauri village and 12,500 farmers in the MV2 with 3,000 of these accessing inputs through subsidies. Preparation 2008, full implementation for main season 2009 January/February 2 Maize Purchase Promasidor, MDG Centre Commercial buyers secured to purchase Millennium Village maize surplus at prevailing farm-gate price. August/September Chili Sourcing Mace Foods Equity Bank Expand birds-eye chili production to ¼ acre farmers in the larger Siaya district from the present 3,200 in the Millenium village whose inventory is to be developed. Phase 1 April 2008 Phase 2 September 2008 Phase 3 March Honey Sourcing Honey Care Equity Bank Expand honey sourcing to 200 farmers with 5 hives each in collaboration with local development agencies, GOV ministry livestock Establish 2 honey collection centred in Siaya Phase 1 July 2008 Phase 2 November 2008 Phase 3 March 2009 World Economic Forum 6

7 Activities Agriculture: Actions & Timing 5 Onion Sourcing Seminis, Osho Chemicals (local wholesalers) Unilever, Njoro Canning (processing) Saga Thrift Contracting of 70 ¼ acre farmers 2008: kg Contracting 120 ¼ acre farmers scale it up hinged on the crops performance in phase 1 Contracting 200 ¼ acre farmers Phase 1 March 2008 Phase 2 August 2008 Phase 3 March Tomato Sourcing Seminis, Osho Chemicals, Saga Thrift, and local wholesalers Construct 12 irrigation tunnels to produce 192,000 kg tomatoes/9months result June 2009 (2008 target : 16,000 kg) from Saga Thrift. Phase 1 April 2008 Phase 2 August Sweet Sorghum Sourcing Soya Processing & Packaging Spectre, Technoserve, ICRISAT, Kibos Outgrowers Co. Ltd et al. Sealed Air TSBF-CIAT Sweet sorghum seed bulking for distribution to the local farming community Contracting of 25,000 acres sweet sorghum to supply local factory as a supplimentary feedstock to mollasses. Distribute packaging machines and material to training groups Expand processing and entrepreneurship training Expand pilot, doubling the scale Phase 1 August 2008 Phase 2 March 2009 Phase 1 April 2008 Phase 2 June 2008 Phase 3 July 2008 World Economic Forum 7

8 Activities Retail/Services: Actions & Timing # Activity Champions 2008 Goal Actions & Timing 9 Agro dealer diversification Monsanto, Osho Chemicals, AGMARK (Equity through pilot with Osho) Assist existing agro-dealers to expand and diversify their inventory to include inputs for high-value crops in addition to staples Implementation up to August/September 2008 for Chilies, Tomatoes and Onions input 10 Financial transfer services Safaricom (MPESA), Saga Thrift Establish 4 M-PESA agents in Siaya District to enable access to SMS-based financial transfer service Phase 1 April Kerosene Retailing National Oil Saga Thrift Expand number and volume of wholesalers to 35 (in 35 market centres of the district) Phase 1 Twenty wholesalers linked to 400 retailers Phase 2 Thirty-five wholesalers linked to 700 retailers Phase 1 April 2008 Phase 2 July Bicycle Retailing Rice Retailing Promasidor, Saga, Safaricom Dominion Farms Partner with 5 Key customer outlets and train/finance two bicycle delivery retailers for each; link to MPESA agents Phase 1 Identification of the key customers Phase 2 Training and attaching ten commission agents to the 5 key customers Establish key rice distributors. Phase 1-Identify one as pilot Phase 2-roll out 3 in all key Siaya markets Phase 3 roll out 20 in all key Siaya markets Phase 1 March 2008 Phase 2 April 2008 Phase 1 Q2 08 Phase 2 Q3 08 Phase 3 Q Business Development Unilever Train 20 traders on basic sales & marketing skills, basic accounting and record keeping (build on business ) Phase1 Q208 Reviews quarterly World Economic Forum 8

9 Status Implementation of activities On track green: Agro Dealer diversification, Financial Tranfer Services, Kerosene Retailing, Rice Retailing, Business Development, Onion sourcing At Risk yellow: Sweet Sorghum sourcing, Soya processing and retailing upgrade, Honey sourcing upscale, chili sourcing upscale, Maize purchase, Bicycle retailing Failure 1 st phase red: tomato sourcing set up of first irrigation tunnel World Economic Forum 9

10 Plan implementation Key success factors Increased commitment by all involved member companies and collaboration partners with high quality and visible leadership. Operators are now on the ground Supervision /co-ordination from WEF, but also considerable increase of manpower by companies locally for implementation Capacity Building technical, business skills and marketing training training all need the same focus Financing partners with tailor-made financing concepts for the farmers and retailers on board Sustainable and accelerating with Empowerment and engagement of residents in the District Collaboration, alignment and support of all local stakeholders > Increasing manpower resources for implementation on the ground further with support of all local stakeholders World Economic Forum 1

11 Field Day 7 th May Siaya / Conference Siaya 8 th May 2008 in Siaya Objectives: Aligning government stakeholders, national and local businesses. Forming a broad partnership. Strengthening engagement on local level and activating resources: 1. Supporting and improving implementation activities of BAACH program 2. Identifying further opportunities for increasing the impact of BAACH program 3. Reinforce sustainability through local ownership, engagement and empowerment Results field day 7 th May 2008 in Siaya district 5 teams in (allocated in10 cars) have visited 10 of our activities KBC and Nation Media,2 of the largest Broadcast corporations accompanied the teams and started a documentary about our activities, broadcasted at the weekend after. 17 BAACH member organizations have joined the field day, 10 CEO,s and Directors of Boards attended. World Economic Forum 1

12 Results Siaya Conference 8 th May local stakeholders attended the conference. Representation of Members of Parliament, Agriculture Ministry, District Commissioner as well as participants in BAACH activities farmers, wholesalers, retailers Local Authorities will provide: Capacity building support: agriculture extension services Aligning irrigation projects with BAACH high value crops productivity and quality improvement programs like onion farming and tomato irrigation tunnel set up ASCU the co-ordination unit of 7 Ministries align and compliment activities of BAACH with funds and/or development extension programs World Economic Forum 1

13 Results Siaya Conference 8 th May 2008 Role/ contribution financing - Equity Bank As direct contribution to the Business Alliance program and its target to empower residents, giving them access to financing, savings schemes, assets and services the following will be put first in place: A Branch of Equity Bank will be opening in Siaya town. Agreed with the town council throughout the conference. For the Spectre farmer s out grower groups (sweet sorghum sourcing) developing and implementing a financing concept and scheme The financing/ loan scheme for Beekeeping/ Honey production will be developed and implemented with Honey Care company. Starting with beehives financing concept, also extraction (processing) packaging and set up of infrastructure (i.e. honey collection and & processing center ) will be addressed. World Economic Forum 1

14 Results Siaya Conference 8 th May 2008 Role/ contribution financing - Equity Bank With National Oil bulk procurement and asset upgrade financing for whole/ retailers will be worked out For BAACH, Kenya ( Cornelia Roettger) an Equity staff secondment will be done, located in Kisumu/ Siaya Equity will look into their CSR fund program to see if other links are possible Looking if the Business Solution center could be aligned Link to IT and monitoring systems of Equity for BAACH partner s possible i.e. for input companies Seminis/Monsanto, Western Seed, Osho Chemicals & MEA Fertilizers using the system set up for Agra,GOV project Kilimo/NAIP World Economic Forum 1

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