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Process unsold mangoes  into valuable new products to support smallholder farmers in Kenya

Progress stage
Jan 2023 to Jun 2024
  • Kenya
  • Economic Development
  • Jan 2023 to Jun 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.

Project deployed by:

Context

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.

Process unsold mangoes  into valuable new products to support smallholder farmers in Kenya

Innovation

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.

Expected results

In 2025, Shambani Pro validated a scalable and investable business model through a strong proof of concept. The company secured USD 150,000 from LIF and USD 170,000 from Gather, supporting its operational expansion. Commercially, it sold five tonnes of dried mangoes to local retailers and off-takers, generating USD 38,000 in revenue and significantly increasing smallholder incomes, with women’s earnings rising by 86%.

Operational capacity grew with the construction of three decentralized micro-factories and support for two farmer-owned facilities. The team addressed multiple technical and operational challenges, requiring adaptations to both machinery and group production models.

Next, Shambani Pro aims to develop a new membership model offering farmers guaranteed offtake, alongside formalized supplier contracts. Strengthening early marketing and buyer engagement will be crucial to securing consistent demand as the company scales and diversifies its market channels.

Shambani Pro

Shambani Pro

Shambani Pro is a Kenyan company incubated by Enviu East Africa, a Dutch venture studio specializing in social and environmental issues and markets development, with a particular focus on financial inclusion, circular economy and food security.

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