Building Economic Security: The Family Preservation Initiative

Institutional Background

ACADEMIC MODEL PROVIDING ACCESS TOHEALTH CARE (AMPATH)

– A partnership between Moi University, Moi Teachingand Referral Hospital, Ministry of Health and aconsortium of U.S. medical schools led by theIndiana University.

– Fosters a comprehensive approach to HIV/AIDScontrol, transitioning into chronic disease andprimary care

– Addresses food and income security needs

– More than 140,000 Clients receiving care

Cont’d…

The Family Preservation Initiative, (FPI) is the IGA

program of AMPATH.

– Provides avenues for food and income insecure HIV

infected and affected households to achieve

sustainable economic security, by increasing their

skills, knowledge, productivity and improving quality

of life.

– Main interventions fall within capacity building

services and enterprise development.

Population

7.6 million

VIP target Coverage: At

least 12 Districts (see

map)

Poverty Rate

48%-65%

HIV/AID Prevalence

Rate

5.7 %

Average Farm

Household

6.8

Main Economic

Activities

Agriculture, bread

basket for Kenya

Main Social-Economic Features of AMPATH Target Region

Goal 1:

Promote and enable economic security for all at-risk

AMPATH nutritional program clients

FPI Interventions Rural – Urban Focus

Value Initiative Program (VIP) Rural & Urban

Purchase for Progress (P4P) Rural

Imani Workshops Urban

Watalamu Repair &

Maintenance

Urban

Agriculture Extension Services Rural

Business Development Services Rural & Urban

Value Initiative Program Description

• Problem to address: High poverty levels amongst

HIV affected in the Rift Valley and Western region of

Kenya

• Goal: increased income for MEs within HIV/AIDS

affected communities

• Purpose: increased productivity and access to

passion fruits markets for the poor and HIV/AIDS

affected populations

Goal 2:

Provide sustainable funding support to the FPI Program

FPI Enterprises Product / Service

Imani Workshops Quality Handicrafts & Training

Cool Stream Restaurant Hospitality & Catering

Valley Orchards Fruit Pulp – frozen/fresh

Watalamu Repair &

Maintenance

Renovations, small construction,

facility repair & maintenance

Green World Nursery Quality Passion Fruit Seedlings

AMPATH CARE

LOCAL AND INTERNATIONAL MARKETS

FPI ENTERPRISES

Big Picture

Enterprise Development And Management

FPI Goal 2: Program Sustainability

Valley Orchards

Objectives:

• supplies high quality passion fruit pulp to

large processors and juice distributors

• provides local market for passion fruit

farmers

• enables farmer stability and improved

livelihood

FPI Goal 2: Program Sustainability

Valley Orchards

Operations:

• Test operations in late 2009, first 10 ton

order delivery of high quality frozen pulp

in mid 2010

• Processing capacity of 1.8 tons pulp per

day and 3 tons of fresh fruit per day.

• Solid relationship with local fruit farmers

FPI Goal 2: Program Sustainability

Valley Orchards

Who will benefit?

• Local farmers and surrounding

community by providing a stable market,

direct and indirect employment

respectively.

• By extension AMPATH which currently

provides basic health care to the most

vulnerable within the Western Region of

Kenya

FPI Goal 2: Program Sustainability

Valley Orchards

Award utilization:

• Market facilitation – enable VO to

aggressively pursue market without

deepening its debt.

• Purchase of lab test equipment (enable real

time testing of product throughout process)

and in-house quality control improvement.

• Install solar panels to save on power costs

incurred during pasteurization.

FPI Goal 2: Program Sustainability

THANK YOU

Moi Teaching and

Referral Hospital

Acknowledgements• Small Enterprise Education and Promotion

Network (The SEEP Network)

• Indiana University School of Medicine

• Moi University School of Medicine

• Moi Teaching and Referral Hospital

• This program was supported in part by a grant

to the USAID-AMPATH Partnership from the

United States Agency for International

Development as part of the President’s

Emergency Plan for AIDS Relief (PEPFAR).

Valley Orchards

Market:• KHDP:

– 2,800MT passion fruit demand in Kenya and Uganda

– Local and international market for juice expanding

– Passion fruits fetch a good market in Britain and the

European Union, while the Middle East is also

emerging as an option

• Technoserve:

– 59,000MT passion fruit target production by 2013

– target farmer growth of 2.7k to 9.5k farmers in rift

valley 2010-2013

FPI Goal 2: Program Sustainability

Valley Orchards

Partners:

• Partner with Moi University, Chemical

and Microbial departments for quality

control measures and lab tests.

• Partner with AMPATH to provide a

sustainable solution for the provision of

health care services to the most

vulnerable and poor of the community.

FPI Goal 2: Program Sustainability

Valley Orchards

FPI Goal 2: Program Sustainability

Financial Projections

Year 1 Year 2 Year 1 Year 2

Kshs Kshs USD USD

Pulp Production (Lts) 135,000 180,000 135,000 180,000

Revenue 40,500,000 54,000,000 506,250 675,000

Cost of sales 35,685,672 44,266,585 446,071 553,332

Gross profit 4,814,328 9,733,415 60,179 121,668

Operating costs 4,736,587 5,715,600 59,207 71,445

Net Income 77,741 4,017,815 972 50,223

Valley Orchards

Capital invested and investment/debt

support required:

• Friends of AMPATH have put forward

$549,000 in capital investment

• Additional investment of $80,000 will

place Valley Orchards in a competitive

position

FPI Goal 2: Program Sustainability

FPI Goal 1: Economic Security for Clients

Market Based Solutions

INTERVENTION AREA SPECIFIC INTERVENTIONS/BUSINESSMODELS

1. Fruit Output and Quality

1.1 Technical Assistance provider1.2 Tailored Financial Services1.3 Inputs and Equipment package

2. Micro processing / Value Add Products

2.1 Quality control system2.2 Tailored Financial service Products. 2.3 Technical and Business training

provider2.4 Infrastructure Service

3. Market Linkage: Farmer - Trader

3.1 Market Information market 3.2 Business Skills / Management Training

4. Market Linkages:-Trader to Formal Markets

4.1 Promotion and Marketing services