kellogg’s with smallholder farmers in northern - ahk...
TRANSCRIPT
Cornflakes made in Nigeria – How to link Kellogg’s with smallholder farmers in Northern
Nigeria
Background Information
• Saro Agrosciences Ltd is a leading marketer and distributor of Agro-input-CPP, Seed Fertilizer and Farm Machinery
• Our strategic direction is to empower 300,000 farmers with superior agro-input and knowledge that will enable them increase their yield and livelihood in a sustainable manner
• By so doing, we intend to strengthen the bond between us and the farmer that have been our dependable partner over the years
• The “Saro Golden Maize Club" provides the platform for actualizing this objectives
Saro Contract Farming
• The Saro contract farming model provides an agreement between Saro and the farmers to produce and supply quality maize that will serve as the feed stock for production of KelloggsCornflakes
• Member farmers must have undergone the GAP and FBS training of GIZ
SAS Management Accounts – Feb 2015
Value Proposition to the Farmer• Provision/access of total input of production-Certified
seeds, herbicides, insecticides, fungicides and fertilizers
• Increase in yield from national average of about 1.8-2 ton per hectare to 5-8 tons per hectare
• Increase farmers income and livelihood
• Extension services on Good Agricultural Practices and Financial/Business management (FBS)- delivered by our partner GIZ
• Guaranteed and fixed off-take prices that eliminates the risk of price fluctuations and market volatility
• Reduce exploitation by middle men
Value Proposition to Kelloggs &
Saro• Kelloggs
– Uninterrupted and regular flow of quality feed stock for production of cornflakes
– Protection from fluctuation/volatile market prices
– Quality assurance and tracibility
– Long term planning
– Dedicated supplier base
• Saro
– Generate good will for the organization
– Market access
– New product development and entrenchment
SAS Management Accounts – Feb 2015
Economies of Production
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