Previously, the trade was based entirely on spot purchases and non-binding informal agreements. The meetings helped formalize these relationships. Now traders place their orders in advance so farmers and Nyabon (as the aggregator) know what quantities are needed and roughly what price they can expect. Terms and conditions are spelled out. Another partner is the Kenya Commercial Bank, which is working with 2SCALE to develop loan packages to enable farmers – particularly women and youth – to buy seeds and fertilizers on credit, or pay for tractor rental. In 2019, the bank will expand its role, providing working capital to allow Nyabon to pay farmers soon after delivery, without waiting for payments from traders.
Private firms participate in training events like field days, where they display their products and provide initial training. These companies include Bayer (seeds and agrochemicals), Toyota Tsusho (fertilizers), Afritec (seeds), Mavuno Fertilizers, Osho Chemicals, rice millers and a number of local input retailers (also known as agrovets).
It’s not just the private sector. Government agencies – the Lake Basin Development Company and the Kisumu County Ministry of Agriculture – work closely with 2SCALE farmers, providing extension support and training, enabling them to produce the volumes and quality that private buyers demand. They even participate in governance meetings where partners review progress and discuss how to overcome production, marketing or administrative challenges. The National Irrigation Board, after participating in project meetings, is considering plans to upgrade irrigation infrastructure. Experts from the Kenya Bureau of Standards and the Pest Control Products Board are collaborating with the Agrochemical Association of Kenya to provide advice on which crop protection products are registered, and how to detect counterfeits.
2SCALE’s private sector-led approach is attracting attention not just locally but also from development agencies. In July, Nyabon was invited to DFID headquarters in London, to make a presentation on how the model works. In August, senior staff from FAO and the National Agricultural Innovation Promotion program visited Nyabon to see how local businesses are driving growth, and how they could be better supported to develop the rice value chain.
Attention is always nice, but what concrete impact have these partnerships had? 2SCALE helped establish training and demonstration plots in three clusters, Siany, Bur Pong and Gem Rae. Farmers liked what they saw, and set up their own ‘annex’ plots next to the demonstrations. After one season of demos, annex plots have expanded from 10 acres to 26 acres… and are expected to double again, next season.