PUBLIC PRIVATE PARTNERSHIP “FOOD SECURITY VIA VERTICAL INTEGRATION OF A NEW KENYAN POTATO CHAIN”

AGRIPRO WORKSHOP

2

GOALS, SPIN OFF & PARTNERS Goals & spin off

GOALS

PPP GOALS (PHASE I)

CREATE THE FIRST VERTICALLY INTEGRATED KENYAN POTATO VALUE CHAIN

THAT PRODUCES 143,000 TONNES OF CONSUMER POTATO PER YEAR IN

KENYA;

ESTABLISH A POTATO ENABLING ENVIRONMENT;

REALISE POTATO KNOWLEDGE THROUGHOUT OUR ENTIRE CHAIN (OUT OF

WHICH +/- 12,500 SMALL HOLDERS)

BASED ON THESE TANGIBLE RESULTS, THE CURRENT RISK FOR PRIVATE

INVESTORS WILL BE LOWERED. OTHERS WILL FOLLOW OUR EXAMPLE AND

WILL ALSO INVEST IN KENYAN POTATO SECTOR. HENCE A NATURAL

EVOLUTION INTO PHASE 2

AFTER PPP (PHASE II)

FULLY REALISE KENYA’S POTATO POLICY AND THIS ITS FOOD SECURITY

GOAL

REALISING A PROFITABLE CHAIN FOR ALL SMALL HOLDERS:

• REALISE A JOB GROWTH OF 50% IN RURAL AREAS (AROUND 400,000

JOBS);

• BOOST THE POTATO TURNOVER AND YIELDS AT SMALL HOLDERS UP TO

950% RESP. 550%

5 TIMES LESS WATER AND 5 TIMES LESS LAND WILL BE NEEDED TO REALISE

THE SAME AMOUNT OF POTATO

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PPP CHAIN Partners & 3rd Parties

KEPHIS

FPEAK

IFDC

TOLSMA

MIEDEMA

MURPHY & OTHERS

NAK

POTATO BUSINESS SCHOOL

PTC THIKA

NL MINISTRY OF FOREIGN AFFAIRS

SMALL HOLDERS IN CO- OPERATIVES

MIGOTIYO PLANTATIONS LTD

AGRICO EAST AFRICA

INDEPENDENT SMALL HOLDERS

LARGE FARMERS

AGRICO NL

KENYAN MINISTRY OF AGRICULTURE, LIVESTOCK AND FISHERY + COUNTIES

KARI

NL MINISTRY OF ECONOMIC AFFAIRS, AGRICULTURE AND INNOVATION

SNV

RABOBANK

ATRADIUS POTATO SEED AFRICA (JV)

BAYER CROPSCIENCE

YARA

LACHLAN

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1. REALISATION POTATO CHAIN

PROJECT MANAGER AEA

MAIN TOPICS IN OUR PPP

2. KNOWLEDGE IN

CHAIN

PROJECT MANAGER

SERVICE CENTER

3. REALISATION POTATO

ENABLING ENVIRONMENT

PROJECT MANAGER NL

EMBASSY

4. KENYA INCLUDED IN R&D TESTING

CYCLE

PROJECT MANAGER AGRICO

CONTENT + KEY FIGURES PPP 4 main topics

AG

RIC

O N

L

MP

L (M

ULT

IPLI

ER)

AEA

DISTRI-BUTORS

INDEPENDENT SMALL

HOLDERS

CO-OPERATING SMALL HOLDERS

(CO-OPERATIVES

+ COUNTIES)

MIDDLE- MEN

LARGE CONSUMER / WARE POTATO FARMERS

SUP

ERM

AR

KET

S

POTATO PROCESSING

INDUSTRY

Potato flow via independent small holders and middlemen (existing)

Potato flow via commercial villages & co-operating small holders (new)

Potato flow via large consumer / ware potato farmers (new)

PRE-PACKING

INDUSTRY

‘’CLA

SSIC

AL

MA

RK

ETS’

’

PSA

(JV

SER

VIC

E C

ENTE

R)

KEN

YAN

CO

NSU

MER

S

RES

TAU

-R

AN

TS

1. ADDED VALUE PER CHAIN PARTNER Overview potato flows (existing + new)

6

1. REALISATION PROFITABLE CHAIN : JV Investments storage (3,200 tonnes per growing season)

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1. REALISATION PROFITABLE CHAIN : JV Investments potato machinery

http://www.google.nl/url?sa=i&source=images&cd=&cad=rja&docid=6PF9AuDo2VOtSM&tbnid=3wu8cZqFP8vHNM:&ved=0CAgQjRwwADgS&url=http://www.miedema.com/nl/nieuws/300/&ei=zB67UcWGMcfAO7_lgWg&psig=AFQjCNFu2ZzJT5hCYwtwjwGiU7FaNaUz-A&ust=1371304012852235

1. REALISATION PROFITABLE CHAIN Key figures

KEY FIGURES PER YEAR

INPUT FROM THE NETHERLANDS

(TONNES)

MULTIPLIED POTATO IN KENYA (TONNES)

PRODUCED CONSUMER POTATO IN KENYA

(TONNES)

825 12,800 143,000

99.95% KENYAN POTATO CHAIN

1. REALISATION PROFITABLE CHAIN Investments (in mio)

HARDWARE INVESTMENTS (CAPEX)

SERVICE CENTERS

CO-OPERATIVES / SMALL HOLDERS

FUTURE LARGE POTATO

FARMERS TOTAL

€ 6.9 € 0.5 - € 2.5 € 10.9 € 18 - € 20

& INVESTMENTS IN WORKING CAPITAL VALUE CHAIN

€ 30 - € 40+ INVESTMENTS IN KNOWLEDGE TRANSFER

INVESTMENTS IN CAPACITY BUILDING

KENYAN + DUTCH PUBLIC INVESTMENTS

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1. REALISATION POTATO CHAIN

PROJECT MANAGER AEA

MAIN TOPICS IN OUR PPP

2. KNOWLEDGE IN

CHAIN

PROJECT MANAGER

SERVICE CENTER

3. REALISATION POTATO

ENABLING ENVIRONMENT

PROJECT MANAGER NL

EMBASSY

4. KENYA INCLUDED IN R&D TESTING

CYCLE

PROJECT MANAGER AGRICO

CONTENT + KEY FIGURES PPP 4 main topics

2. ENABLING ENVIRONMENT Topics public partners

a) LEGISLATION

1. PACKAGING

SIZES

2. TAXATION /

ROAD BLOCKS

3. LATEST

UPOV RULES

4. DOUBLE

GOAL REGI-

STRATION

SYSTEM

5. SCOPE NPT

TRIALS

b) ANTI ILLEGAL MULTIPLICATION

c) CAPACITY KEPHIS

d) RURAL INFRASTRUCTURE

2. ENABLING ENVIRONMENT Result

a) LEGISLATION

1. PACKAGING

SIZES

2. TAXATION /

ROAD BLOCKS

3. LATEST

UPOV RULES

4. DOUBLE

GOAL REGI-

STRATION

SYSTEM

5. SCOPE NPT

TRIALS

b) ANTI ILLEGAL MULTIPLICATION

c) CAPACITY KEPHIS

LOWER THE CURRENT RISK FOR PRIVATE INVESTMENTS IN KENYAN POTATO CHAIN, INVESTMENTS WILL FOLLOW

2. ENABLING ENVIRONMENT Result

a) LEGISLATION

1. PACKAGING

SIZES

2. TAXATION /

ROAD BLOCKS

3. LATEST

UPOV RULES

4. DOUBLE

GOAL REGI-

STRATION

SYSTEM

5. SCOPE NPT

TRIALS

b) ANTI ILLEGAL MULTIPLICATION

c) CAPACITY KEPHIS

LOWER THE CURRENT RISK FOR PRIVATE INVESTMENTS IN KENYAN POTATO CHAIN, INVESTMENTS WILL FOLLOW

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1. REALISATION POTATO CHAIN

PROJECT MANAGER AEA

MAIN TOPICS IN OUR PPP

2. KNOWLEDGE IN

CHAIN

PROJECT MANAGER

SERVICE CENTER

3. REALISATION POTATO

ENABLING ENVIRONMENT

PROJECT MANAGER NL

EMBASSY

4. KENYA INCLUDED IN R&D TESTING

CYCLE

PROJECT MANAGER AGRICO

CONTENT + KEY FIGURES PPP 4 main topics

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AGRICO NL + AGRICO EAST AFRICA

POTATO BUSINESS SCHOOL (AGRICO, TOLSMA, MIEDEMA + OTHERS)

SERVICE CENTER MANAGEMENT

PTC THIKA

IFDC

TOPICS

MULTI-PLIER

INDEP. SMALL

HOLDER

CO-OP. SMALL

HOLDER

Know how

Do how

Know how

Do how

Know how

Do how

SEED & CONSUMER (WARE) POTATO

GROWING

MULTIPLICATON / SELECTION

FERTILISATION

PLANTING & HARVESTING

POTATO LOGISTICS

SORTING

STORING

PACKING

TRANSPORTING

POTATO BUSINESS

FINANCE

MARKETING

SALES

GENERAL MANAGEMENT

CREATING AWARENESS

3. KNOWLEDGE TRANSFER Private, public & NGO partners

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AGRICO NL + AGRICO EAST AFRICA

POTATO BUSINESS SCHOOL (AGRICO, TOLSMA, MIEDEMA + OTHERS)

SERVICE CENTER MANAGEMENT

PTC THIKA

IFDC

TOPICS

MULTI-PLIER

INDEP. SMALL

HOLDER

CO-OP. SMALL

HOLDER

Know how

Do how

Know how

Do how

Know how

Do how

SEED & CONSUMER (WARE) POTATO

GROWING

MULTIPLICATON / SELECTION

FERTILISATION

PLANTING & HARVESTING

POTATO LOGISTICS

SORTING

STORING

PACKING

TRANSPORTING

POTATO BUSINESS

FINANCE

MARKETING

SALES

GENERAL MANAGEMENT

CREATING AWARENESS

3. KNOWLEDGE TRANSFER Private, public & NGO partners

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1. REALISATION POTATO CHAIN

PROJECT MANAGER AEA

MAIN TOPICS IN OUR PPP

2. KNOWLEDGE IN

CHAIN

PROJECT MANAGER

SERVICE CENTER

3. REALISATION POTATO

ENABLING ENVIRONMENT

PROJECT MANAGER NL

EMBASSY

4. KENYA INCLUDED IN R&D TESTING

CYCLE

PROJECT MANAGER AGRICO

CONTENT + KEY FIGURES PPP 4 main topics

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4. KENYA IN AGRICO’S R&D CYCLE In 2016

KENYA IN AGRICO’S R&D CYCLE

NEW VARIETIES LARGE SCALE TESTING (FINAL 3 YEARS):

TESTED ALL OVER THE WORLD

EXPECT FOR EQUATOR

KENYA’S INCLUDED

BEST VARIETIES FOR REGION HAVING ‘SHORT DAYS’ (12 HRS OF LIGHT PER DAY) DURING GROWING SEASON

KENYA PART OF INTERGRAL BREEDING PROCESS WITHIN AGRICO

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DURATION : 7 YEARS

JANUARI 1ST 2015 : START OF PPP

PLANNING PPP Status

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2015 Realisation profitable potato chain

2015

• MPL: START WITH FIRST KENYAN MULTIPLICATION;

• 1ST YEAR (2 GROWING SEASONS) BASED ON ‘’PROOF OF CONCEPT’’;

• 1ST INVESTMENTS IN HARDWARE.

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2015 Realisation profitable potato chain

2015

• KICK OFF;

• STEP BY STEP + VARIOUS HURDLES (KEPHIS)

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2015 Realisation profitable potato chain + knowledge transfer

MAIN TOPICS SMALL HOLDER SHOWCASES

AT 2 CO-OPERATIVES

SMALL HOLDER CONSUMER POTATO SHOWCASES

TRAIN THE TRAINER INFRASTRUCTURE (7 LOCATIONS)

CASES (BUSINESS, SOCIAL + ENVIRONMENTAL)

YIELD BOOST EXPERIENCED BY SMALL HOLDERS IN PRACTICE

ON THEIR OWN LAND AND UNDER THEIR CONTROL

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2015 Realisation profitable potato chain + knowledge transfer

MAIN TOPICS SMALL HOLDER SHOWCASES

AT 2 CO-OPERATIVES

SMALL HOLDER CONSUMER POTATO SHOWCASES

TRAIN THE TRAINER INFRASTRUCTURE (7 LOCATIONS)

CASES (BUSINESS, SOCIAL + ENVIRONMENTAL)

YIELD BOOST EXPERIENCED BY SMALL HOLDERS IN PRACTICE

ON THEIR OWN LAND AND UNDER THEIR CONTROL

ACTIVITIES

6,000 NEW JOBS CREATED

Due to top quality input material, knowledge transfer and small holder automation, potato yields

per Ha will grow from a current 6 tonnes per Ha to 27 tonnes per Ha (for independent small

holders) and to 30 tonnes per Ha (for small holders that collaborate in a co-operative). As a result

of this efficiency boost, the amount of jobs at small holders will also grow. We structured the type

of jobs in two categories, namely potato growing and potato logistics

POTATO GROWING Potato growing includes activities such as planting, harvesting and fertilisation. We foresee the largest growth in jobs at harvesting (twice a year) and to a lesser extend at growing (realisation of planting beds).

POTATO LOGISTICS Potato logistics includes activities such as sorting, storing, packing and transporting. A growth in all such logistical activities is foreseen.

TOTAL IMPACT Taken the two growing seasons per year, we expect to realise at least a job creation of 50% at the small holders (6,000+ jobs), out of which at least 60% women.

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SOCIAL CASES Job creation

ELEMENTS 5 TIMES LESS LAND + 5 TIMES LESS WATER +

2 TIMES LESS FERTILIZER FOR SAME AMOUNT OF POTATO

INTRINSIC

Due to top quality input material, knowledge transfer and small holder automation, potato yields

per Ha will grow from a current 6 tonnes per Ha to 27 tonnes per Ha (independent small holders)

and to 30 tonnes per Ha (for small holders that collaborate in a co-operative).

This automatically results in efficiency improvements for the environment too: to realise a similar

amount of potato (kgs), we need up to 5 times less land and 5 times less water.

Moreover potato is the crop that – from all possible crops - that provides the highest nutrition

value for the smallest amount of water and the smallest amount of land needed.

ADDITIONAL

We will also introduce effective crop rotation programs, that will improve the quality of the soil over the years.

Moreover we will introduce the concept of potato beds. As a result less water is needed too

Finally we intend to optimise the use of fertilizers at small holders. We also foresee an optimised use of fertilizers, and for a similar yield of potato we expect to use 2 times less fertilizer.

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ENVIRONMENT + CLIMATE CASES (i) Efficiency improvement

ELEMENTS 90% REDUCTION OF DISEASES / VIRUSES

DISEASES / VIRUSES Currently it is estimated that 80% to 90% of all potatoes in Kenya suffer from viruses and

diseases. We expect that by using our input material at co-operatives we will lower this to 5%.

NUTRITION VALUE INCREASE

The current Kenyan potato cooking varieties having 12%-15% of dry matter content and as a result a low level of starch. We will also introduce fresh potato varieties having 20%-25% of dry matter content and as a result a higher level of starch.

Measurement of such varieties will be realised via realised placements on the variety lists and presence of such varieties in our demo fields.

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ENVIRONMENT + CLIMATE CASES (ii) Potato improvement

4 MAIN TOPICS

BASELINE STUDIES IMPACT CASES

Measurement starting situation

Measurement progress

1. INCLUSIVE BUSINESS CASES CO-OP SMALL HOLDERS

Measurement of actual business case, based on small holder business model from prospectus (yield, price, cost, profit etc.)

Goal : 940% growth in turnover + 550% growth in profit for co-op. small holders

2. ENVIRONMENTAL + CLIMATE CASES CO-OP SMALL HOLDERS

Goal intrinsic measurement: lowering of land and water and fertilizer need per kg potato by factor 4 / 5 for co-op. small holders

Goal intrinsic measurement + optimisation: lowering of fertilizer need per kg potato by factor 2 for co-op small holders

Soil improvement measurement (by ‘’CROPNUTS’’ = Crop Nutrition Services and similar services) due to adoption of crop rotation

Water efficiency measurement : adoption of potato bed

3. SOCIAL CASES CO-OP SMALL HOLDERS

Goal : measurement job creation of 3,000 people (>+60% female)

Measurement well fare growth (business case, microfunding, cash flow etc. combined in one)

Women participation measurement in small holder farming + knowledge transfer

Ultimately measurement women empowerment (and similar women occupation level of 60%).

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MAIN TOPICS IN CASES Inclusive, environment, social

4 MAIN TOPICS

BASELINE STUDIES IMPACT CASES

Measurement starting situation

Measurement progress

1. INCLUSIVE BUSINESS CASES CO-OP SMALL HOLDERS

Measurement of actual business case, based on small holder business model from prospectus (yield, price, cost, profit etc.)

Goal : 940% growth in turnover + 550% growth in profit for co-op. small holders

2. ENVIRONMENTAL + CLIMATE CASES CO-OP SMALL HOLDERS

Goal intrinsic measurement: lowering of land and water and fertilizer need per kg potato by factor 4 / 5 for co-op. small holders

Goal intrinsic measurement + optimisation: lowering of fertilizer need per kg potato by factor 2 for co-op small holders

Soil improvement measurement (by ‘’CROPNUTS’’ = Crop Nutrition Services and similar services) due to adoption of crop rotation

Water efficiency measurement : adoption of potato bed

3. SOCIAL CASES CO-OP SMALL HOLDERS

Goal : measurement job creation of 3,000 people (>+60% female)

Measurement well fare growth (business case, microfunding, cash flow etc. combined in one)

Women participation measurement in small holder farming + knowledge transfer

Ultimately measurement women empowerment (and similar women occupation level of 60%).

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MAIN TOPICS IN CASES Inclusive, environment, social