Productivity Improvement in Kenya

The CMS- Nestle Creating Shared Value Initiative

Presentation by Kamau Kuria –Managing Director CMS at the 12th

AFCAC&E, Safari Park Hotel, Nairobi, on 13th February 2015

Coffee Management Services Ltd(CMS)

• CMS commenced operations in February 2006

• Registered as a Coffee Management Agent in February 2006

• Licensed Coffee Marketing Agent

• Manage a 7 ton/hr dry mill at Karatina

• Manage a 2 ton/hr dry mill at Eldoret

Our Services• Farm Management• Pre-financing Coffee Production• Coffee Milling• Marketing• Price Risk Management• Accountancy Services• Bulk competitively priced farm inputs• Certification compliance-Utz,RFA,4C,FLO,Café Practices.• Project Management• Feasibility Studies• Environmental Audits

Problem Statement

• Declining farm productivity• Lack of extension services• Inadequate agronomical knowledge in the inheriting

young generation• Poor access to finance• Climate change• Emerging market demands - sustainability

Creating Shared Value Concept

The two pillars:

• Farmers connect: Designed to improve quality, ensure stable production, increase farmers revenue and yields on the existing land.

• Kenya plant expertise and provision: Designed to provide farmers with elite varieties.

CMS and The Nescafe Plan

• Project start date: October 2011• Project period: 3 Years

Nestle CSV Participating Units

Project Activities

Soil Sampling and Analysis4,478 representativerandomly selected soilsamples from 2,254farmers collected foranalysis.

The analysis results arebeing implementedand fertilization is nowneed based and not aroutine exercise thusreducing waste.

Setting and Managing demo plots27 demo-plots set in 26 wetmills and managed as per coffeecalendar of activities as farmer training sites.

Farmer Trainings On GAPs/GPPs745 Promoter Farmers and management members trained at various institutions as TOTs(159 are women)

6 Agronomists with motorcycles reaching and training cumulatively over 44,969 farmers on GAPs and GPPs as well as other cross cutting issues

Field Training and Experiences328 Promoter Farmersand managementmembers participated inCSV Field Tour Trainingsin May/June 2014.

Over 11,500 farmersbenefited from 3rd yearfield visits and demoplots trainings by June2014

Establishing and Managing Nurseries

9 batian and shade treenurseries in place.

Over 238,593 seedlingssupplied to over 7,881farmers as at September2014.

100,000 seedlings currently at potting stage.

Verification against the 4C standards in all the 9 FCS - 26wet mills.

The 9 units are now 4C Verified and 4C Licensed.

Market linkage - AA,AB,PB 4C Verified

3 Year Production Chart

ProductivityProduction of cherry rose to 14, 175,058 kg 2013/14 from4,847,526 kg at project inception.

16% more premium grades being registered from the unitstranslating to improved income to farmers.

On average, the three year production for the CSV increase is83% up.

One Unit Barichu had a 6 times increase from historicalaverages in 2013/14

ASANTE!

What is in the future?