Posted on June, 9, 2022 at 09:58 am
Smallholder farmers contribute significantly to food production and, as a result, are key participants in meeting global food demand.
Kenya’s tea industry is a crucial part of the country’s agriculture, with nearly 6 million Kenyans earning their income from the sector. Of these, smallholder tea farms account for nearly 60 percent of all tea production.
Smallholder tea farmers, like any other agricultural operation, face a variety of challenges, including selling tea at the best prices, poor infrastructure and obtaining affordable inputs such as fertilizers and improved seedlings.
As a result of barriers that exist in the market, many smallholder farmers have encountered substantial difficulties in their livelihoods. A vast majority of them are left at the mercy of brokers in the production chain.
There is a growing recognition of the need to create a more conducive environment for smallholder farmers to access affordable farm inputs, build infrastructure that encourages large-scale production and sustainably improve farming yields for global markets. Thus, the call for the formation of cooperatives.
Cooperatives are not new in Kenya. After Savings and Credit Cooperative Organizations (SACCOs), agricultural cooperatives account for the highest number of sector cooperatives in the country at 30 per cent.
By coming together, many farmers in cooperatives not only benefit from shared resources but also a significant improvement in their economic, social and cultural needs.
The formation of efficient and equitable cooperatives has the potential to transform communities into vibrant economies. The social and commercial privileges that come with investing in smallholder supply chains cannot be understated.
Experts have outlined benefits to include; long-term supply security, improved quality and yields, greater supply chain transparency and new market creation. Supporting smallholders can also build stronger government relationships, increase the ability to meet stakeholder expectations, enhance reputation, and align with initiatives such as the UN Sustainable Development Goals (SDGs).
In China, the largest cooperative organisation in the country, All-China Federation of Supply and Marketing Cooperatives (ACFSMC), has played a vital role in the development of the rural agricultural economy with the formation of women’s specialised cooperatives.
In Kenya, the Kenya Tea Development Agency (KTDA) is now a private company owned by about 650,000 farmers spread across 17 tea-growing counties in the country. More than 10,000 individuals are directly employed in the smallholder sector across the value supply chain, benefiting almost four million people indirectly.
Similarly, in Kericho and Bomet counties, The Fintea Growers Cooperative Union has created a significant impact in the local communities and livelihoods of 14,000 smallholder farmers in the region.
The co-operative union brings together five primary co-operatives namely Chepcheb Co-operative Society Ltd, Chesetekaa Out growers Co-operative Society Ltd, Kapkap Outgrowers Co-operative Society Ltd, Ainamoi Tea Produce and Multipurpose Co-operative Society Ltd and Kokchaik Co-operative Society Ltd, formed by tea farmers drawn from Kericho and Bomet counties.
The formation of the cooperative was propelled by the need to accommodate the processing of excess tea production. Prior to the formation of the union, while they still operated as 42 self-help groups, the members sold their green leaf for low prices to local traders who in turn sold it on to tea factories at the expense of the farmers.
The core business of the cooperative union has been to acquire quality tea from members, ensure they are delivered on time to the processor and manage high standards to ensure high prices in the international market.
The union has also been a key driver in facilitating sustainable farming practices for its members, enabling access to subsidised farming inputs and providing insights on the importance of environmental conservation to maintain the optimal conditions for tea growth.
The union recognises the importance of collaborating with industry stakeholders who not only have a better understanding of the entire value chain but are also willing to help with training as well as diversification by seeking alternative crops such as mange tout, sugar snaps, fine beans, and garden peas to reduce over-reliance on tea.
One such partner who has been key in the continuous development of the union has been James Finlay (Kenya) Ltd.
Finlays, as a partner, has provided both technical and financial support to the union and has been a lead collaborator in guiding the members on good agricultural practices as well as training, which has resulted in the farmers attaining Rainforest Alliance and Fairtrade certifications.
This has guaranteed premium prices for tea products in international markets. The union's five cooperative societies have been able to use premiums earned from tea sales to these markets to fund projects that benefit their communities and improve their overall livelihoods.
It is evident that cooperatives have the ability to turn communities into thriving economies. The government needs to support the growth of cooperatives in the country by establishing a legislative and regulatory framework that fosters investment and adoption in local communities.
Smallholder farmers need to be empowered on the benefits of farmer groups to ensure that we secure a better future for the agriculture sector in Kenya.
Source: Business Daily