AGRO-PROCESSING, AN ENGINE TO FUEL AGRICULTURAL DEVELOPMENT AND IMPROVE INCOMES IN THE COUNTIES  

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AGRO-PROCESSING, AN ENGINE TO FUEL AGRICULTURAL DEVELOPMENT AND IMPROVE INCOMES IN THE COUNTIES By: Eng. Mwamzali Shiribwa Ministry of Agriculture

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AGRO-PROCESSING, AN ENGINE TO FUEL AGRICULTURAL DEVELOPMENT AND IMPROVE INCOMES IN THE COUNTIES  . By: Eng. Mwamzali Shiribwa Ministry of Agriculture. INTRODUCTION. Kenya’s agricultural sector is dominate with primary production with little on-farm and off farm processing - PowerPoint PPT Presentation

Transcript of AGRO-PROCESSING, AN ENGINE TO FUEL AGRICULTURAL DEVELOPMENT AND IMPROVE INCOMES IN THE COUNTIES  

     

AGRO-PROCESSING, AN ENGINE TO FUEL AGRICULTURAL 

DEVELOPMENT  AND IMPROVE INCOMES IN THE COUNTIES  

     

By:  Eng. Mwamzali Shiribwa              Ministry of Agriculture

INTRODUCTION

• Kenya’s agricultural sector is dominate with primary production with little on-farm and off farm processing

• The low level of processing translates into low incomes and less job opportunities

• Other model countries have higher levels of processing, e.g for fruits and vegetables the levels of processing are: Thailand 30%, Philipines78%, and Malaysia 83%.

Justification for agro-processing and value addition:

• To improve rural incomes by adding value to raw materials

• Save on transport costs by converting high volume materials to low volume high value products

• Create opportunities to use by-products as source of raw materials for other farm operations such as animal feed, manure and fuel

• Provide opportunity to reduce farm losses by conversion of perishable produce to longer shelf life produce

• Creation of jobs leading to poverty reduction and rural urban migration

MARKET SIZE & MARKET ACCESSMarket Size:

Once regional integration is completed, EAC will have the 2nd largest single market in Africa of around 120 million consumers.

Growing / expanding market – steady growth and growth prospects remain strongMarket Access:

COMESA – through Kenya, Uganda, Rwanda & Burundi, through Tanzania, to the SADC market of 215M for

export productsSouthern Sudan is emerging as a new market in the

region Through AGOA for access to the US Market for a variety

of products.

Crops with Agro-processing potential

Root and tuber crops• Cassava for human food, animal feed and pharmaceutical

industries and value-added products such as chips and crisps, flour, cassava pellets, beverage and even cassava starch.

• Government is formulating a policy that will require inclusion of cassava as a component of bakery and confectionery products.

• Orange-fleshed sweet potatoes Small-scale processors are already producing chips and flour for the confectionary industry.

Cereals

• Maize for human and livestock feed and sources of starch for industrial use.

• Sorghum for animal feed and raw material for distillery and beer brewing. Currently the sorghum production is low and farmers encouraged to increase production

Vegetable oils:

• Edible oil processingsunflower, simsim, and groundnuts (oil and peanut butter)

• Palm oilbeing promoted in Western Kenya. Could be a gain to small-scale farmers and industrial producersThe Government is investing Ksh 22 million in Oil Palm development

Rice value addition

• Avocado Oil   Kenya is better placed to produce high quality avocado products noting that those grown in hot, humid climates have saturated fat and a lot of wax for oil production. Export markets for oil is mainly to the UK, Belgium, France, Holland, Russia and Germany and Asia.

Cotton: 

• There are signs of increased Cotton production

• Measures to revive the cotton based institutions in order to increase rural incomes and reduce poverty are now in place.

• Cotton Development Authority established

Sugar processing

• Refined sugar, an essential raw material in food processing, beverage manufacture, soft drinks, and pharmaceutical products is at present wholly imported and its manufacture offers great opportunity.

• Huge potential in production of other products such as cogeneration of power from bagasse [the pulp left after the juice has been extracted from sugar

cane]

Biodiesel

What is biodiesel?Biodiesel is a clean burning diesel fuelreplacement made from natural, renewablesources, such as new and used vegetable oilsand animal fats. It will run in any diesel enginewith no modifications- in fact diesel engines runbetter and last longer with biodiesel.

How to make biodiesel Feedstocks to use to make biodiesel in a biodiesel 

refinery?• Used cooking oil• Soybean oil• Palm oil• Jatropha oil• Rapeseed oil• Sunflower oil• Corn oil• Cottonseed oil• Animal fat

Challenges facing agro-processing• Lack of training facilities (i.e agri-business development

centre models for actual processing demonstrations)• Inadequate appropriate processing technology• Inadequate infrastructure; water and electricity

• Lack of business/entrepreneurial skills. • Inadequate marketing skills and market

information. • High cost of certification by KEBS.

• Poor packaging of processed products• Poor cash flow due to low volumes • Lack of technical know-how and opportunities

in processing (including product options, packaging and technology)

• Unreliable supply of raw materials

Agro-process for a better tomorrow