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Kenya Input Supply System Development
- 1. INPUT SUPPLY SYSTEM CASE STUDY Market System Development Case Study from the Kenya Markets Trust
- 2. DEVELOPMENT ORGANIZATION MARKETS NGO FINANCE CAPACITY INPUTS Typical Development Model • NGO staff provide inputs and equipment • NGO works with community members to represent farmers or give out samples (paid or volunteer) • NGO staff provide technical assistance • NGO staff provide training • NGO sets up demonstra7on plots • NGO provides vouchers for inputs • NGO provides loans or links to MFIs • NGO buys products • NGO links farmers to buyers • NGO sets up producer groups POOR FARMERS
- 3. MARKETS CUSTOMERS (POOR FARMERS) FINANCE CAPACITY INPUTS Typical Input Supply Model • Agrodealer provides inputs at store only • Inputs could be expired or inappropriate • Agrodealer runs no special promo7ons • No inten7onal capacity building • Agrodealer gives advice, oEen incorrect • No financial services extended • Agrodealer sell for cash only • No explicit links with producer groups or markets INPUTS AGRODEALER
- 4. Market Systems Development Model INPUTS & CAPACITY Feedback loops from farmers New distribu7on channels: • Agrodealer sets up village agents • Village agents give hands-‐on technical advice • Agrodealer runs village promo7on events • Agrodealer builds capacity of preferred stockists • Agrodealer sets up buying clubs New marke7ng strategies: • Agrodealer sets up customer loyalty clubs • Agrodealer sponsors rural radio agric shows • Agrodealer sets up sms promo7ons/market research • Agrodealer runs demonstra7on plots CUSTOMERS (POOR FARMERS) MARKETS FINANCE Agrovet bundles sales with services INPUTS AGRODEALER • Agrodealer provides financing op7ons • Agrodealer provides new payment methods • Agrodealer sets up inputs buying clubs with producer groups • Agrodealer links farmers to buyers • Management improvements & staff training • Business-‐to-‐ business training
- 5. Intervening in Market Systems ICT / Finance SUPPORT FIRMS CUSTOMERS (POOR FARMERS) NGO DEVELOPMENT ORGANIZATION Buyer BUYERS INPUTS AGRODEALER
- 6. Intervening in Market Systems Feedback loops ICT / Finance SUPPORT FIRMS CUSTOMERS (POOR FARMERS) NGO DEVELOPMENT ORGANIZATION Buyer BUYERS INPUTS AGRODEALER