Process unsold mangoes into valuable new products to support smallholder farmers in Kenya
- Progress stage
- Jan 2023 to Sep 2024
The Kenya-based private entity Shambani pro intends to tackle smallholder farmers’ income loss by turning their second grade agricultural produce into into high value products (like oil). FID’s funding will enable to test two different business models in order to validate the most effective one.
On average in Kenya, the fruit and vegetable supply chain and smallholder farmers suffer up to 50% post-harvest losses. This amounts to an annual loss of around $1.1 billion. Mango is one of the key produce to suffer from post-harvest loss.
Annually, the mango industry yields 770,000 tonnes, predominantly harvested between December and February. This period witnesses a surplus causing an inundation of mangoes in markets, leading to drastically reduced prices. Consequently, some farmers contemplate discarding their produce due to exceedingly low market rates.
Research conducted by the University of Nairobi reveals an alarming discrepancy in compensation, with farmers receiving a nominal 3-7 cents per kilogram of mango while the same product fetches over 50 cents in market hubs. This economic disparity particularly affects smallholder mango farmers below the poverty line, depriving them of the opportunity to increase their incomes.
Shambani Pro's project consists in setting up micro-factories run and managed by women to collect unwanted mangoes that are unable to sell and process them into mango chips to be sold on international markets. Shambani Pro aims to sell these second-grade products at higher prices, and to promote the use of solar energy in the transformation units to reduce food waste.
The processing of the unsold mangoes is carried out at the Shambani Pro hubs. Once collected, the mangoes are then transported to the micro-processing units to be turned into chips and sold on international markets.
The processing of unsold mangoes will be carried out in two different ways:
- The first model directly involves smallholders farmers, who collect the mangoes and dry them into mango chips
- The second model involves operating hubs hold by women- and youth-led where pre-processing (drying of Mango) takes place, then subsequently be processed at the micro-factory
Involving small-scale producers in the creation of high-quality products will enable them to generate additional income.
FID’s funding will be used to measure the effectiveness of these two operating models, with the aim of extending the most effective model to several communities and selling these processed products on a wider range of markets.
This pilot will be tested during a year and aims to:
- Increase smallholder farmers’ income
- Strengthen smallholder farmers’ participation and decision-making
- Promote gender equality in smallholder farmers communities by encouraging young and female farmers’ participation in the value-creation process
- Increase youth and women farmers’ participation in agricultural activities
- Increase access to sustainable climate-smart tech innovation (solar-powered factory and solar drying)
- Create employment opportunities for women and the youth
- Promote a responsible and sustainable production, with a transparent value chain and an equal value distribution
Projects funded by FID