Farmers Pride last mile agricultural inputs and services delivery through agrodealer micro franchise model and village youth agent network.

Farmers pride links rural farmers to certified inputs,services & information with aim of improving their income, productivity and nutrition.

Photo of Samuel Munguti
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I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.

  • Yes, I'm eligible

Preferred language

  • English

Organization name

Farmers Pride

Year founded

2014

Initiative stage

  • Growth (the pilot has already launched and is starting to expand)

Annual budget in 2017 (USD)

  • $250k - $500k

Number of beneficiaries impacted so far

  • 50,000 - 100,000

Organization type

  • Social enterprise

Secondary Focus Area

  • Water
  • Nutrition

Headquarters location: Country

  • Kenya

Headquarters location: City

Nairobi

Location(s) of impact

Country-Kenya
Counties-Makueni,Kitui,Kajiado,Kiambu,Meru,Tharaka Nithi,Embu,Kirinyaga,Nyeri,Nyandarua and Murang'a all in central and eastern Kenya.

Website

http://farmersprideafrica.com/

Facebook URL

https://web.facebook.com/farmersprideafrica/

Twitter URL

https://twitter.com/proudfarmers

Problem: What problem is this initiative trying to address?

Agricultural inputs, services and best agriculture practices information distribution in rural areas is inefficient and poor.Rural Farmers suffer from poor farm production, losses and malnutrition as a result of limited access to quality inputs,services and information. Farm productivity per Ha in Kenya is lower than global average. Maize productivity for instance is 1.6MT/Ha, global average is 6MT/Ha. All these limitations traps farming families in continuous cycle of poor production,poverty and malnutrition.

Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?

Through a franchising model and village youth agents network, Farmer’s pride transforms farming in rural areas in Kenya. Farmers Pride believes that smallholder farming is about opportunity, choice, and knowledge. We are building a franchise network of agro dealers located in rural, underserved areas of Kenya. Our retail shops are clean, modern, and professionally managed. We provide all the tools that the farmers of the future need to be successful, whether that's high-quality hybrid seeds, soil-testing services, or cutting-edge training and information. Each of our franchisees and farmers is an emerging role model in their community empowered to empower the rest of the community.
To enhance quality inputs ,services and information distribution to rural farmers as well as farmer nutrition conscious empowerment, Farmers Pride integrates village youth agents to reinforce rural development.Local youth are recruited and trained to distribute inputs and train farmers at village level.

Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work

-Introduced vegetable Kitchen garden concept to 8000 rural farmers with objective of empowering farmers to be nutrition conscious.
-75,000 farmers already have guaranteed access to quality agricultural inputs,services and information through farmers pride franchise agro dealer network and village youth agent network.
-10 local youth currently employed as youth agents to deliver inputs, services like soil testing and offer tailored training to rural farmers at village level to improve productivity.
-10, 000 farmers adopting climate smart agriculture practices
-25,000 farmers trained on climate information and best agriculture practices
-1000 tonnes of certified quality inputs distributed to rural farmers
-500 solar home lighting kits distributed to farmers majority of whom fall off the national grid
-50 village demonstration and learning farms set up
-300 rural agro shops in the network
-13 marginalized counties in Kenya are primary beneficiaries of the intervention

Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?

Currently 4 fully franchised and 300 partner agro dealer shops.The business plans to scale up to a further 40 fully franchised outlets and 500 partner agro dealers by December 2018 to become financially sustainable. With current central business costs (staffing, logistics, marketing, etc.), full cost recovery will be achieved when the business has 20 fully operational franchise outlets and 300 partner agro dealers – this is anticipated in Q3 2018. Proceeds from CSV competition will be invested to support Farmers Pride break even and become sustainable.Our current fundraising round targets to raise USD 700,000 to launch 40 more additional stores.
Current budget support
1. Individual donations or gifts-20%
2. Grants-15%
3. Corporate contributions-5%
4. Earned income-60%
5. Other

Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?

Farmers Pride model uniqueness is adopting franchise model concept and integrating model with village youth agents in transforming rural agrodealer shops and farmers to increase their agribusiness efficiency making them more happy and prosperous while contributing more to ending youth unemployment, food insecurity and malnutrition in Kenya and Africa.Other models like Lukenya agrovet and Sidai Africa focuses on distributing inputs to livestock farming areas only through traditional stores.

Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.

Samuel Munguti passion in farming started long ago while growing up in rural subsistence farming family and community in lower Eastern Kenya. ‘After growing up seen my parents and local community register poor farm yields every season and every year, seen children from my community trapped in malnutrition and spending countless nights hungry , I always loved to give my contribution to addressing common challenges that affected farm production and nutrition’’ -samuel
After completing my MBA studies in 2014, I decided it was the right time to do this through addressing serious challenges facing farm productivity. I declined plum job offers, my family and friends thought I was crazy to take that route, now they understand why I took that direction. My family and lots of my friends now love Farmers Pride idea and its contribution to food security, youth employment and agriculture in Kenya.

Where did you hear about the Nestlé Creating Shared Value Prize?

  • Upon recommendation from others

Program Design Clarity: We are hungry to know more about what exactly your model consists of. Succinctly list a) what main activities are you doing with your beneficiaries, b) where you carry out the activities? c) how often? d) for how many hours? e) who delivers the services? and f) any other brief details

(a) -Farmers Pride last mile” village retail franchise model entails commercially distributing quality farm inputs to rural farmers and agro dealers with bundled farmer extension, farmer training and other services like soil testing and insurance .To enhance quality and efficiency of inputs/services distribution and training to rural farmers, Farmers Pride distribution model integrates village youth agents network.
(b)Where we carry activities
Country-Kenya
Counties-Makueni,Kitui,Kajiado,Kiambu,Meru,Tharaka Nithi,Embu,Kirinyaga,Nyeri,Nyandarua and Murang'a counties in Kenya-all marginalized regions in eastern and central Kenya.
(c) How Often, (d) How many hours
Agricultural Inputs/ services distribution and farmer training is core of Farmers Pride business model.Farmers Pride does this everyday in partnership with different stakeholders like inputs manufacturers, church leaders, local administration and local government ministry of agriculture.
(e) Who delivers
Farmers Pride sales and marketing technical team reinforced with a network of village youth agents. Local youth with basic technical training in agriculture or animal health are identified locally and taken through one week training of trainers program overseen by Farmers Pride crop and livestock experts .They are are then assigned a specific territory to lead farmer training and inputs distribution under supervision of our core technical team.The youth are compensated through a commission revenue model.

Focus area

  • Rural Development

We are interested in learning more about your initiative's broad impact on sustainable development. Please reply ONLY to the question(s) related to your above focus area.

RURAL DEVELOPMENT -The business model integrates farmer field extension and education services, quality agricultural inputs sales and distribution to offer a reinforced platform for rural social and economic development. Farmers Pride is leveraging on professionalizing rural agro dealers to build a sustainable social enterprise. We champion for economic inclusion and equitable development through giving special focus and support to youth and women to own and run sustainable profitable agro dealer shops as well as through our village agent network.Currently over 75,000 rural farmers and 300 agro dealers are direct beneficiaries.
During Farmers Pride farmers training activities at demonstration farms, farmers are trained to understand the different food groups and the importance of having a diverse diet. To understand how to put together a balanced meal.To identify the different food groups as well as the nutrients they contain.We have introduced vegetable Kitchen garden concept to 8000 rural farmers with objective of empowering farmers to be nutrition conscious.Majority of the 75,000 farmers benefiting from Farmers Pride are more nutrition conscious, 60% of those been women.
Farmers are trained in demo farms on climate smart agriculture practices as well as conservation agriculture to cope with effects of climate change.Farmers learn new innovative irrigation technologies to maximize water use.25,000 farmers have been trained on climate information with 50% adopting.

Creating shared value: How does your initiative create value for different stakeholders?

Farmers Pride business model integrates farmer field extension and education services, quality agricultural inputs sales and distribution, Farmer market linkages, financial services, soil testing services and farmer insurance services to offer a reinforced platform for rural social and economic development. Farmers Pride is leveraging on professionalizing agro dealers to build a sustainable social enterprise. All our 300 agro dealers and 75,000 farmers in Farmers Pride network are emerging leaders in their community and are recognized because of contribution to empowering local farmers and communities.Our youth agent network is gaining momentum locally and regionally as an innovative way to empower rural youth with employment opportunities while giving them platform to change their communities through inputs distribution and farmer training.We have currently recruited 10 youth agents working on commission revenue model with plans of scaling the concept to two more regions in 2018.

How is your initiative funded, now and over the next 5 years?

With current central business costs (staffing, logistics, marketing, etc.), full cost recovery will be achieved when the business has 20 fully operational franchise outlets and 300 partner agro dealers – this is anticipated in Q3 2018. The business plans to scale up to a further 40 fully franchised outlets and 500 partner agro dealers by December 2018 to become financially sustainable.
Current operation budget funding
- Individual donations or gifts-20%
- Grants-15%
- Corporate contributions-5%
- Sales Revenue-60%

How do you plan to influence your field of work if you are a winner of this edition of the CSV Prize?

This will be a fantastic opportunity to champion for youth employment and rural smallholder farmer empowerment in Africa through agriculture.I will work together with rest of Farmers Pride team to make Farmers Pride a success story and role model across Africa in empowering youth and farmers and leverage on the status that comes with winning CSV Prize to champion for diversion of more investments and resources to empowering rural youth and farmers to become happy, healthy and prosperous.There is need for development organizations, national governments, county governments and private sector in Africa to invest more resources to empowering smallholder farmers through agriculture.There is real value in investing in smallholder farmers.

How will you leverage an investment from Nestle to expand the impact of your work?

Farmers Pride business plans to scale up to a further 40 fully franchised outlets and 500 partner agro dealers by December 2018 to become financially sustainable.Investment from Nestle will be very helpful in realizing this goal faster and give Farmers Pride opportunity to impact to more communities, more farmers and more youth.Our target is to impact directly over 600,000 rural farmers across Kenya next 5 years before expanding beyond the country while creating employment opportunities for lots of youth and women in rural Kenya .Our current fundraising round targets to raise USD 700k to take Farmers Pride to next level. CSV prize grant will 100% go towards achieving this fundraise target.

Spread Strategies: Moving forward, what are the main strategies for scaling impact? What’s the projected impact for the coming years? Are you planning to expand your programme into new locations? On what assumptions do you build your scale-up plans?

Farmers Pride model will expand along building a network of successful franchise agro dealer stores blended with a vibrant village youth agent network.One of key pillars and uniqueness of Farmers Pride franchise model is integrating rural farmer training and extension services in the business model. Village Youth agents strategically compliment our technical team farmer training activities which we have learned cannot keep on expanding every time we launch operations in new communities .
SCALE UP PLANS
-Achieve 150 fully franchised and 1000 partner agro dealer shops plus 50 youth agents network next 5 years across Kenya before expanding to other East Africa countries.
-$18M in annual revenues and $3.6M gross profit in the next 5 years
-Sign 40 product distribution agreements with certified manufacturers next three years
-Impact over 600,000 rural farmers directly with access to quality inputs, services and tailored training programs next 5 years

Team: What is the current composition of your team (types of roles, number of full-time vs. part-time staff, board members, etc.)? How will this team evolve as your initiative grows?

FULLTIME TEAM
1. Samuel Munguti, CEO
• 15+ years of experience in agribusiness development and designing solutions to farmer challenges in East Africa. MBA in Marketing and strategic management
2. Augustin Mutuku, Manager Accounts -reporting to CEO
• 5+ years of experience in accounts with Bachelor's degree in commerce (accounts)
3.Catherine Musyoka, Head of Sales, Marketing and Farmer training with BA agriculture
4. Jackline Chepkemoi- Training manager
5. 10 Youth Agents, and 4 Franchise officers
ADVISORY BOARD
1. Joel Patenaude(USA) -Strategy and Business development
2. JJ Lasm(GHANA)-Customer relations
3. Dr George Kegode( KENYA)-Standards and compliance
4. Nancy Mukai(KENYA) -Business development

Farmers Pride will keep upgrading the team on business need basis

Awards: What awards or honors has the initiative received?

-D-Prize global distribution challenge award 2017
-Mastercard Foundation fund for rural prosperity competition finalist
-Seedstars world Nairobi 2016 finalist
-African Development Bank 21st century agriprenuer award 2017

Organizational leadership: How are you influencing your field of work in the present?

Am currently leading operations and strategy at Farmers Pride together with a fantastic team. Thousands of youth, women and men in Kenya and beyond look at Farmers Pride and me personally as an inspiring role model. Majority know my background and milestones we have achieved through Farmers Pride to transform and empower rural communities through distributing quality inputs, services bundled with farmer training.I always use our community farmer training events and personal and Farmers Pride social media platforms to encourage, challenge and inspire more young people, women and men as well as Farmers Pride different stakeholders to embrace and invest in farming to break poverty , hunger and malnutrition.

Should you be successful, please confirm your availability to attend the Ashoka Impact Boot camp and Creating Shared Value Prize Live Pitch Event at the World Water Forum 13-16 March 2018

  • Yes, I am available to attend the events on 13-16 March 2018

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