Transcript AGRO-PROCESSING AN ENGINE TO FUEL THE DEVELOPMENT …

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 ACCESS
Market 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 strong
Market Access:
 COMESA – through Kenya, Uganda, Rwanda &
Burundi,
 through Tanzania, to the SADC market of 215M for
export products
 Southern 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 processing
sunflower, simsim, and groundnuts (oil and
peanut butter)
• Palm oil
being promoted in Western Kenya. Could be a
gain to small-scale farmers and industrial
producers
The 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 fuel
replacement made from natural, renewable
sources, such as new and used vegetable oils
and animal fats. It will run in any diesel engine
with no modifications- in fact diesel engines run
better and last longer with biodiesel.
How to make biodiesel
Feedstocks to use to make biodiesel in a
biodiesel refinery?
• Used cooking oil
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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)
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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