Fruit farmers squeeze cash from Coca Cola
By WINSLEY MASESE, wmasese@ke.nationmedia.com
Posted Friday, July 29 2011 at 23:36
Fruit farmers in parts of Rift Valley and Central Kenya contracted by a multinational firm, earned Sh150 million in 2010 from their deliveries.
This was part Coca Cola company’s strategy to expand and consolidate its new juice market share.
Lionel Marumahoko, the company’s general manager for still beverages in East and Central Africa, said that this would see a reduction of losses farmers incur as a result of wastage.
“This change will deliver significant cost efficiencies as well as enhance our responsiveness to ever changing consumer taste needs,” he said.
The company imports the raw materials that go into making the different varieties of juice.
Becoming the hub
Under Project Nurture, the company contracts local farmers to provide raw materials with each region with strengths in the production of a given product becoming the hub.
Mr Marumahoko said it would make its manufacturing plant, Beverage Service Kenya, a key production unit for the export of Minute Maid brand of juices and juice drinks. This way, farmers’ incomes will improve and eventually cascade to their living standards.
He said that mango juice produced locally would be imported to the region as well as the Common Market for Eastern and Southern Africa (Comesa).
The firm will also rely on other regional partners to supply it with juice brands whose raw materials are not produced locally.
Undergo training
The Sh1.05 billion project funded by Coca-Cola, TechnoServe and the Bill & Melinda Gates Foundation targets 54,000 mango and passion farmers in Kenya and Uganda.
“This change will deliver significant cost efficiencies as well as enhance our responsiveness to ever changing consumer taste needs,” he said.
The company imports the raw materials that go into making the different varieties of juice.
Becoming the hub
Under Project Nurture, the company contracts local farmers to provide raw materials with each region with strengths in the production of a given product becoming the hub.
Mr Marumahoko said it would make its manufacturing plant, Beverage Service Kenya, a key production unit for the export of Minute Maid brand of juices and juice drinks. This way, farmers’ incomes will improve and eventually cascade to their living standards.
He said that mango juice produced locally would be imported to the region as well as the Common Market for Eastern and Southern Africa (Comesa).
The firm will also rely on other regional partners to supply it with juice brands whose raw materials are not produced locally.
Undergo training
The Sh1.05 billion project funded by Coca-Cola, TechnoServe and the Bill & Melinda Gates Foundation targets 54,000 mango and passion farmers in Kenya and Uganda.
Farmers, with TechnoServe’s assistance, will also undergo training on some of the best farming practices, geared towards getting the right quality of the produce.
As a result of poor storage and handling of fruits and fresh produce, Kenyan farmers lost about Sh40 billion in 2010 and the latest approach is meant to minimise the wastage.
The company will also diversify to other products in future, such as avocado and coconut, depending on emerging consumer needs.
As a result of poor storage and handling of fruits and fresh produce, Kenyan farmers lost about Sh40 billion in 2010 and the latest approach is meant to minimise the wastage.
The company will also diversify to other products in future, such as avocado and coconut, depending on emerging consumer needs.
