Mangoes are the second most produced fruit in Kenya, while pineapples rank third. Despite the potential for profitability, several challenges are preventing maximum value from being obtained. Post-harvest/production losses can range up to 25-40% in both value chains. Factors contributing to these losses include fruit fly infestation, lack of market access and poor (cold) chain infrastructure. Most of the fruits produced are traded through middlemen (80-95%) and are consumed locally, with minimal value addition undertaken (<10%). As a result, export markets remain untapped.
Goshen Farm Exporters Ltd is a processor, and an exporter of Kenyan dried fruits from contracted growers. The company has cut a niche for itself by focusing on value addition of tropical fruits into dried healthy fruit snacks. The company seeks to build a value chain that reliably supplies safe and quality produce for its expanding processing capacity. Expansion of processing capacity was driven by increased local and global market demand for organic dried tropical fruit products.
Goshen and IDH have partnered to support Goshen to optimize its sourcing and service delivery model. The key activities envisioned include; reducing the cost of extension through working with independent agents, adequate farmer segmentation and tailored servicing, increasing quantity of high-quality production at farm level by providing inputs on credit, and investing in cold chain infrastructure. To inform how these activities should be implemented this Service Delivery Model analysis assessed the business case for both smallholder farmers in different regions with different farming practices and different crops, and the business case for Goshen. Some of the key insights include: