Transcript Bio enterprise development in Laikipia, Samburu and North

Structural and procedural properties
important in promoting bio-enterprises as
alternative livelihoods to pastoral and agropastoral livelihoods
Authors: Chinwe Ifejika Speranza
a
and Susie Wrend
Centre for Training and Integrated Research for Aid and Semi-arid Lands Development,
(CETRAD), Nanyuki, Kenya.
bUniversity
c
a,b,c
of Bern, Bern, Switzerland.
German Development Institute, Bonn, Germany.
dLaikipia
Wildlife Forum, Bio-enterprise Development Programme, Nanyuki.
The ‘Future of Pastoralism in Africa’ March 21st – 23rd, 2011, Addis Ababa, Ethiopia
Conference theme:
Alternative livelihoods and exits from Pastoralism, including education and small towns
Focus of the presentation
What we mean by bio-enterprise
 What the bio enterprise sector looks like in the
region targeted
 Case studies
 Structural and procedural properties
 Outlook
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Bio-enterprise
Definition: Bio-enterprise is business based on natural
products that delivers positive environmental impact.
This includes wild harvested and ‘organically’
cultivated and livestock products.
Bio enterprise aims to creates greater economic
incentives for participating communities/farmers to
conserve biodiversity and increases household
income which depend on this biodiversity
The bio-enterprise sector in Kenya
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A few enterprises – private led, CBO led and NGO led > NGO led ones
small growth or collapse
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Wild harvesting carried out largely with little sustainability principles,
thus damaging
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Lack of market understanding – majority of producer little negotiating
capacity and low returns from intermediaries
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Lack of investment capacity and trade finance - little growth of the
business, poor infrastructure, equipment..
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Lack of technical, management and business skills at all levels - little
ability to access premium markets
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High competition on resources and access to the low level market
opportunities that might exist – leading to poor co-operation and
cohesion within producer groups
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Fragmentated market, poor linkages between actors
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No economies of scale
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Little environmental impact and little or no impact on household
income due to the small scale of operations and lack of access
to premium markets
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Little opportunity to raise trade finance  inability to invest in
equipment, infrastructure and raw material to increase
production.
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Poor quality and insufficient supply to attract good commercial
partnerships with ethical private operators and to access
premium markets
Developing diversified livelihoods for
pastoral and agro-pastoral communities
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Drawing from 4 different bio-enterprise initiatives focused
on agro-pastoral and pastoral livelihoods and on
improved natural resources management (NRM) in the
drylands of Kenya.
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The reasons for selecting these four case studies are
because they; (i) have commercial orientation, (ii) are
community based initiatives and (iii) are based on
indigenous natural products, (iv) include different ethnic
groups and geographical locations, and (v) have been
established through/with external development support.
Four Selected Bio-enterprise Projects
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Mwingi Organic Beekeepers Association, Mwingi, Kenya
 Case Rumuruti Aloe Women’s Group, Laikipia, Kenya
 MakaaZingira Eco-Charcoal, Kilifi, Kenya
 Baringo Aloe enterprise development, Kenya.
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Data was collected through interviews, focus group
discussions, informal discussions and the study of
reports.
Laikipia
Mwingi
Machakos
Baringo
Kilifi
Mwingi Organic Beekeepers Association
Project organisation and skills development
 ICIPE has pioneered a set of rural community livelihood support
mechanisms that are based on the sustainable use of natural forest
products, primarily in partnership with the GEF and KFS.
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Mwingi District Joint Self Help Group was registered in 1995. The group
started the project with 6 bee-keeping groups of 180 members. Numbers
have since grown, there are now 47 groups with over 2000 members.
Stakeholder took part in the planning process.
 Three major areas of interaction:
 Training in biodiversity conservation,
 Sustainable forest resource management
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Establishing systems that ensure equitable benefit and cost-sharing through
apiculture and sericulture technologies, conservation of forests, treeplanting and sustainable utilisation of locally available natural resources.
Mwingi Organic Beekeepers Association
Mwingi Organic Beekeepers Association
Investments, production and market linkages:
 Fully equipped processing centres
 Quality standards and economies of scale
 Organic certification includes over 1,030 farmers.
Incomes earned and potential trickle-down effects:
 Honey sales have increased from 6 t in 2007 to 15 t in 2008 and over
15% price premiums.
 Yearly incomes benefits from the honey enterprises Ksh 2,800
(USD38) per person during 2008 and by Ksh 2,900 (USD38) during
2009.
 Additional incomes
 Enabled women in beekeeping as an income-generating enterprise.
Contributions to environmental conservation:
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Sensitize and train communities in forest conservation methods
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Associate and link sale of honey and silk with conservation.
Rumuruti Aloe Women’s Group, Laikipia
Project organisation and skills development:
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Rumuruti Women Aloe Group, registered in 2005 with 25 women
members from different ethic backgrounds.
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The group planted indigenous aloe and made local sale from
crude aloe extract.
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Some farmers were trained in aloe production and processing
techniques. Ministry of Agriculture, Kenya Forestry Service and
other line ministries also provided technical assistance.
Rumuruti Aloe Women’s Group, Laikipia
Small scale plantation and
community based processing
Rumuruti Aloe Women’s Group, Laikipia
Investments, production and market linkages:
 The group planted 1 hectare of aloe secundiflora and aloe lateritia, (12,300
plants), provides small amount of sap for the products they manufacture
 Training in processing of bodycare products
 Now make a range of aloe products, such as soap, body cream and lotions.
Incomes earned and potential trickle-down effects:
 Members have increased annual incomes by 10% plus through aloe product
sales. Approx Ksh 6000/yr (USD81) additional income during 2008.
 Members felt that increased incomes motivated expansion of their business.
 improved their social position within the community.
Challenge centre on their lack of financial capacity to develop adequate
processing facilities to improve and expand their product supply and range.
Critical to maintaining existing markets and expanding into new more
lucrative ones; also to attract more members and expand their business.
Contributions to environmental conservation: Difficult to measure due to
low output and utilisation of natural habitat
MakaaZingira Eco-Charcoal, Kilifi
Project organisation and skills development:
In Kenya, charcoal is primary reason for forest cover 12%
land mass area in 1978 to 1.3% in 2008 (KEFRI, 2008).
 Wild Living East Africa developed simple system for
producing eco-charcoal briquettes from fast growing
regenerative indigenous shrub species (cassava as
binder using manual press)
 MakaaZingira Business Enterprise is a CBO situated at
Wild Living Resources conservancy in Kilifi District.
 Certified (FSC) Woodmark Certification scheme for
Small to Low Intensity Managed Forests.
 200 farmers have received full training
 Guaranteed market
Eco-Charcoal
(High heat intensity briquettes)
MakaaZingira Eco-Charcoal, Kilifi
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Investments, production and market linkages:
RNE provided a small grant for research and development, detailed
business plan and strategy for implementation
2 t of charcoal bits/month worth Ksh 15/kg (USD0.2) and processes
into FSC-certified eco-charcoal briquettes and sold at Ksh 45/kg
(USD0.6) to retail outlets.
Incomes earned and potential trickle-down effects:
Producers increased incomes by 15% to 20%
Charcoal briquettes sold through retail outlets locally and in Nairobi.
Enabled the communities to develop technology and businesses
Price of MakaaZingira is competitive. Consistent market demand
Farmers have earned approx Ksh 3,000/month (USD40.5)
Contributions to environmental conservation:
Members aware of the value of indigenous vegetation, need to
manage it sustainably, unlike traditional - shrubs/trees are cut down.
Baringo Aloe Enterprise Development
Project organisation and skills development:
CBO of the Samburu, Pokot and Turkana pastoral communities. KWS
and KEFRI.
 Processing factory was constructed (EU funding)
 290 farmers were trained
 small scale plantations established.
Investments, production and market linkages:
 Aim: target 1,000 farmers and with impact on at least 5,000 farmers.
 Aloe resource mapping and quantification
 Environmental Impact Assessment.
 Processing factory for value addition of the raw material,
 Planting materials and establishment of plantation to enhance supply
 Expected to achieve 50 tonnes of processed aloe gum annually.
 December 2009 < 1 tonne processed to-date and quality standards
not developed.
Baringo Aloe Enterprise Development
Baringo Aloe Enterprise Development
Incomes earned and potential trickle-down effects
Due to the lack of clarity as to legal ownership of the
premises, clear marketing and business management
strategy the project has not achieved its goals.
Project collapsed. Consequently, there has been little
direct impact on environmental conservation.
However it can be assumed that some measure of
awareness raised about the value of sustainable
utilization of indigenous aloes for long-term income
generation.
Criteria for successful bio-enterprises, as per case-studies
Some structural and procedural factors
Outlook
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Organised: enabling economies of scale to develop, trading
framework to deliver service and share overhead costs, wild harvest
and domestication fair trade, organic, traceability protocols in place
to ensure ecological sustainability and access to premium markets.
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Expanding: with firm market demand, consistent supply and trade
finance/investment available
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Skilled and aware; actors know market criteria and use internal
control to maintain access to premium markets. Actors rewarded on
basis of quality and supply
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Cohesive – by working together the producers within the groups can
achieve and maintain supply and quality of a diversity of products to
the market standards
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Business driven approach based on ecological and ethical
principals resulting from good training, improved awareness, strong
links with ethical buyers and certification
Thank you for your attention!
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