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