Kenyan groundnut processor funded by EU to support smallholder producers
Advance Consulting has supported Greenforest Foods, a Kenyan SME and processor of nuts and honey, with the development of a project and grant funding application with the AgriFI Kenya Challenge Fund (AKCF), which is funded by the European Union. Through competitive calls for proposals, the AKCF provides financial support to agri-enterprises to support market-integrated smallholder agriculture and improve the capacity of smallholder farmers to practice environmentally sustainable and climate-smart agriculture as a business.
Practically all groundnuts produced in Kenya are grown by smallholders who face multiple challenges that include increased climate vulnerability, limited access to quality seeds and other inputs, lack of knowhow of climate-smart good agricultural practices, and a lack of market access and information. Moreover, farmers are facing increasingly high rejection rates due to excessive aflatoxin levels, which is a harmful mycotoxin often caused by inadequate soil and post-harvest management. While demand for groundnut products is growing in Kenya, the above challenges form a bottleneck to the supply of quality and food-safe Kenyan groundnuts.
Despite these challenges, groundnuts have the potential to provide farmers with considerable higher margins than crops such as maize, while having a shorter crop cycle which gives farmers a faster return on investment. With the project, Greenforest aims to serve 2,000 groundnut farmers in Baringo and Elgeyo Marakwet Counties and unlock their potential by supporting them with:
- A guaranteed and remunerative market;
- In-shell sourcing, which reduces aflatoxin risks and saves farmers valuable time which they would otherwise lose in manual shelling;
- Distribution of high-quality seeds, which are currently not available and/or affordable;
- Combating aflatoxin through using Aflasafe and local testing kits;
- Training in climate-smart and good agricultural practices;
- Training in group formation, record keeping and financial literacy;
- Fulfilling the requirements for EU export certification.
The project will create a win-win-win situation for: 1) Greenforest, solving its sourcing challenge and enabling its further growth; 2) the groundnut producers, enabling them to invest in their agribusiness and increased income generation; and 3) consumers, who can enjoy locally produced and safe groundnuts.
Advance Consulting supported Greenforest Foods throughout the application trajectory, including project design, development of the proposal, and assistance with required due diligence activities. For more information about this project, you can reach out to Wojtek Dubelaar.