Sustainable fruit processing

Research indicates that 40-60% of Kenyan tropical fruits are lost due to poor postharvest handling, lack of storage technologies, lack of processing facilities, and poor market access. Goshen farm has leveraged on fruit value addition to contribute to  development of semi-Arid areas through planned strategies that helps provide higher employment opportunity and nutrition security. The strategy includes contracting the smallhodler farmers to grow fruit crops on offtaker contracts while also giving them extension services to help optimize their yield. The produce is then bought with the premium grade exported while the inferior quality is processed into dried healthy fruit snacks whose shelf life is an extra 18 months. Sustainable fruit farming  combined with value addition could be used globally as an alternative land use system for climate resilient fruit crops that are highly remunerative for replacing subsistence farming and thus alleviate poverty level in dry and arid ecosystems. 

In semi-Arid regions of Kenya like Machakos, Makueni, Kitui and Tana River fruits like mangoes contribute to over 40-60%  percent of the household income. Smallholder farmers suffer enormous volumes of post-harvest loss season after season because the crop matures all at the same time and they lack proper storage to sustain the fruit.The 2019 census indicates that the four counties have a population of over 3,760,000 people with at least 30% of these people growing fruit crops.This implies that over 1.2 Million Kenyans are losing 40-60% of their household incomes due to post harvest losses. The growing world population is in dire need of affordable, nutritious and most important safe food. Goshen farm is helping reduce this losses by creation of a structured and resilient market system for the smallholder farmers through contract farming with the produce being packaged for export while the rest is processed as value added fruit dried fruit snacks hence not only increasing shelf life but also reducing bulkiness as it becomes dry food with ability to transport the produce to anywhere in the world without need for any special storage hence an effective way of feeding people anywhere.

Goshen Farm Exporters Limited contracts the farmers at the start of the fruit season, farmers are given contracts stating the price for the produce. The farmers are taken through capacity building trainings to help them gain skills on good agricultural practices, sustainable production and small business skills. Farmers trainings entails training  on scouting, pruning, pest management, easily adoptable climate smart technologies like use of polymers for water retention and proper record keeping skills for change of perception from engaging of farming as a social to a  commercial activity. The farmers harvest is projected from the onset to help the company project its harvest volumes. The premium produce is sold fresh for export while the rest is processed into value added dried fruit snacks. Once the produce is picked from the farm it is transported to the processing warehouse where it is kept in a cold chain for preservation. Thereafter the produce is sorted accordingly then the grade two produce sliced then dried with an LPG powered energy efficient dryer into dried snacks. 

Currently the value addition of tropical fruits solution serves over 4200 smallholder farmers in four regions namely Makueni, Machakos, Kitui and Tana River counties. The farmers are clustered in small groups of 20-30 people. The farmer database is managed through use of technology by using the Digifarm platform by Safaricom to manage activities including traceability, harvesting and collection of produce. Payments to the farmers is also made through the digital platform with the farmers accessing payments through the mobile payment solution M-Pesa. This has helped in inclusion of the farmers access to formal banking. This also helps them to build an history and they are  able to access third party input financing though credit e-voucher inputs through the Digifarm Platform's i-procure service where farmers can borrow inputs only on Digifarm certified stores with repayments being made after receiving their final dues from Goshen. The Certification of the stores helps farmers gain confidence that they are buying genuine and quality  inputs.

Support of small-scale producers with access to inputs and capital is being done through linkage to third-party financiers like Digifarm to help them access quality inputs on credit.Increased inclusion into formal banking though transacting through Mobile money platform M-Pesa also helps them build a credit history that enables them to borrow. Free extension services and trainings helps to develop knowledge to improve yields while sustainable productivity of land is achieved though trainings on climate smart agriculture including use of PET bottles as modified drip irrigation Kits and dissemination of soil care management skills through a partner organisation called Kofar Kenya. 

Goshen Farm Exporters Limited has taken an innovative approach through use of a bi-partisan model that takes care of premium grade fresh produce which is packaged and sold as a premium export product while processing the rest into premium value added natural fruit snacks. The innovative approach is focused on strengthening the production by sustainably leveraging on capacity building to improve the farming skills, business skills and sustainable soul care skills of the smallholder farmers with key focus on improving their incomes for purposes of improving their livelihoods. On the fresh produce segment Goshen faces competition from established players like AAA Growers, Vegpro and Sunripe among many others who have dominated the industry for a long time.In the value added segment Goshen faces competition from the three players Azuri Health, Healthy U and Bunton and Bamber Ltd.This is because the industry is still a Blue Ocean. At the moment Goshen finds itself in a unique position since the industry in Kenya does not yet have a company processing fresh produce and also drying the dried fruits into value added snacks. Goshen's unique proposition is the ability to create a strong smallholder production model while leveraging on technology for efficient management of the farmers and by simultaneously giving them access to third party agri-fintech financing thus boosting production. Value addition also boosts the company's ability to create a strong and sustainable business model where food losses are reduced through processing . 

Goshen Farm leverages on an existing technology called Digifarm Enterprise. This is a mobile technology platform which manages and finances large groups of smallholder farmers in value chains.The platform replaces pen and paper based management systems with real time big data, to reduce transaction costs and enable the efficient inclusion of smallholder farmers in global value chains. The technology solution is used to manage the over 4200 smallholder farmers including payments and also access to credit.

https://twawezalive.safaricom.co.ke/digifarm/?c=2

Farming in Africa has for the longest time period been characterized by low incomes brought about by low productivity and efficiency. The low productivity and efficiency is brought by low investment in capital infrastructure by the fact that the farmer is a small producer with limited resources. Goshen farm's ability to contract the smallholder farmers and helping them access resources through third party financing helps the farmer have access to capital to increase investments hence higher productivity and efficiency resulting directly to higher output which automatically triggers higher incomes when Goshen comes in to purchase the produce as an offtaker.

Currently Goshen is directly working with over 4200 farmers with an expected increase of 20 % this year to increase the numbers to about 5500 by end of next year with a projected increase to 10,000 smallholder farmers in the next 5 years

Goshen plans to process 1400 metric tonnes of tropical fruits in the next one year with a projection to handle 2500 metric tonnes by the end of five years. This will be achieved through Goshen Farm entering a fundraising phase to garner resources to enable it modernize its processing factory and acquire British Retail Consortium Certification to enable it to be able to export produce to all global destinations. The projection is to export at least 200 Metric tonnes of dried tropical fruit products an estimate of 60 twenty foot containers.These are estimated to be 5,000,000 packets of dried fruit. The aim is to have at least 5,000,000 million frequencies of Goshen product being consumed globally by 2025.

Goshen's biggest challenge is access of premium markets like the US and Europe for its value added products. Certifications and infrastructure are a big requirement. Barriers include the high cost of setting up food processing infrastructure including state of the art machinery meaning access to capital to be able to undertake the expansion is a challenge. The state of the art processing factory which will then be certified for the dried fruit snacks to access global retail market. Giving the company the ability to process 11-15 Metric tonnes of produce per day. 

Goshen Farm plans to overcome the challenge through opening itself for fundraising of capital expenditure. Barriers to market entry will be a thing of the past once the company acquires certifications to enable the produce access the markets.

Goshen farm has 31 permanent members of staff working on the solution. The company has 25-30 casual members of staff working on production on a weekly basis. 

Yes. Goshen farm has a well able team to deliver the solution. The team is headed by Alex Mutua Muli a graduate of Moi University School of Business and Economics and an MBA holder from United states International University Africa in Nairobi. Alex also holds a postgraduate certificate in Business Development with Innovations from Frankfurt School of Finance and Management. Alex has a 10 year experience having co-founded the company and is actively involved in its day to day operations.He is also a board member of Africa Agribusiness Academy and Fresh Produce Consortium of Kenya.  In the team we have two General Managers, Augustine Oloo is the General Manager Technical Operations. He works with a team of 19 members of staff including a food safety manager, Technical Field Manager and Production manager.  Technical operations entails food production at farm level, processing and also distribution logistics.Evans Odero is the General Manager Finance and Administration. Augustine Oloo has a 14 years experience in Food processing with a Diploma in Food Science and a Bachelors Degree in Food Science and Technology from Egerton University. Evans Odero has a 9 year experience in finance having worked previously for Pricewaterhouse Coopers Kenya.  He works with a team of 12  members of staff to strategically oversee the finance arm and administration arm of the company. 

Goshen Farm exporters works with the Kenya Industrial Research and Development Institute to carry out product development. Goshen also works with USAID's Kenya Crops and Dairy Market Systems Development( KCDMSD) to offer capacity building trainings to farmers. 

Goshen business model is the market intermediary model . Goshen currently works with over 4000 producer customers, having paid over $ 435,000 in the last financial year 2019 for their produce. These are key beneficiaries of the solution as they have been able to realized increased incomes. Goshen procures the produce value adding it before selling it further to wholesale buyers and retailers. Goshen provides its user customer with value added and healthy fruit snacks offering quality , safe , natural fruit snacks to the customers. Goshen's revenue is from simply the value addition. 

I am applying to Solve to learn that is to access training and mentors that help me fulfil my potential and purpose. Solve will also provide a platform where I can promote my business to investors, clients and partners while also I  benefit from online support to grow the  business.

Goshen would like to scale up its product distribution especially to global markets using efficient distribution channels. Goshen would also appreciate partnership in linkage to potential investors through access to efficient blended financing platforms. Goshen is setting pace in innovation of sustainable value added business models, Goshen would love partnership to help it grow its talent and employee retention as its cost of trainings for any innovative company can he exorbitant. Goshen would also like a partnership to expose it to new and merging markets through media exposure and potentially access to trade fairs.

Goshen owuld like to partner with MIT initiatives to develop a tailor made lean manufacturing system that can be used to manage production efficiencies. 

Goshen deserves the Future Planet Capital Prize for its innovative solution of creating a sustainable business model focused on resilience to ensure that the company develops into a leading producer of dried value added natural food snacks while reducing food losses through value addition to help guarantee future generations of safe and quality food grown by African farmers for the world.