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Technoserve’s Inclusive Business Plan (IBP) Approach: Delish and Nutri Kenya

 

An Inclusive Business Plan is a roadmap for agribusinesses to invest in new services, products, and assets that drive the inclusion of smallholder farmers.

TechnoServe has run Inclusive Plans with agribusinesses across Africa, South Asia, and South-East Asia across a wide range of value chains

An inclusive Business Plan takes between (3-6 months)

Key elements of an Inclusive Business Plan

  • Understand growth levers and constraints in the business
  • Identify inclusive sourcing opportunities with the potential to drive growth and profitability
  • Quantify costs and financial benefits for business and smallholder farmers
  • Assess TA funding contribution based on commercial risk and smallholder impact
  • Design high-level solutions for each inclusive sourcing initiative, including roles and responsibilities, implementation timelines, and risk mitigation measures

Business Overview

Delish & Nutri is a groundnut processor and brand based in Nairobi, Kenya.

  • Increasing market share projected to continue growing: expansion to new markets, raising brand awareness, and new products. Project growth of >2x for peanut powder from 2022-24.
  • Goal to increase sourcing volumes by 3x by 2024.

Products and customer base

  • Retail products for distribution across Kenya:
  • main: peanut powder; roasted peanutS
  • new: peanut butter; bio-fortified high iron kidney beans
  • in development: RUSF, bulk raw peanut
  • Target market: low & middle class  households

IBP opportunities

  • Mitigate price fluctuations & disrupted supply of imported peanut (Malawi) by shifting to local sourcing.
  • Improve quality & volumes of local supply to meet company requirements and growth goals.
  • Increase farmer incomes via increased yields, reduced post-harvest losses, assured market.

Key elements of the IBP:

  • Establish one-stop shops for farmer agricultural needs (“hubs”) in 2 production regions.  Provide quality seed, agronomic training, threshing services, aggregation & market access.
  • 2 different agro-ecological zones to cushion against climate risks and seasonality of production.
  • Contract 300 farmers and 30 seed multipliers.