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Innovations

Jungle Nuts implements a farmer-clustering model and farmer-management system to source more, traceable high-quality macadamias.

Farmer Clustering Farmer Management System

Who are they?

Jungle Nuts is a leading nuts processor that sources nuts from over 33,000 smallholder farmers in Kenya to produce five nut-based products: macadamia nuts, oil, cashew nuts, butter, and bio-briquettes.

About the SDM

Together with Intersnack and FairMatch Support, individual outgrower farmers scattered in seven different regions of Kenya are organized into clusters to help create a more effective and efficient engagement service-delivery mechanism.

How it works

The clusters take over sourcing and service-delivery operations previously carried out by Jungle Nuts and its partners. Compared to traditional Kenyan cooperatives, the clusters have the advantage of functioning as legal entities, thereby avoiding some of the complications arising frequently in cooperatives (e.g., high membership costs for farmers, debts, or other financial risks).

The cluster model is enabled and supported by Jungle Nuts’ M-shamba system, which traces the quality and quantity delivered by each farmer and digitizes payment and credits to smallholder farmers.

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Key Outcomes

Using the M-shamba system, Jungle Nuts is able to make sourcing and service decisions based on real time information and farmers benefit from almost instant payment and credit, increased transparency, and up-to-date market information.

This comprehensive service package has led farmers to sell an increasing share of their production to Jungle Nuts, improving capture rates from 30 to 50% of the farmers’ production.

Additional Resources

Insights report 2020 front page
Service Provision as a Viable Business: Insights Report
Learn about how our partners are getting sustainable returns for their business, while empowering farmers through service delivery.
Download
191211 webinar closing the smallholder finance gap final version
Webinar - Closing the smallholder finance gap
IDH and The Learning Lab invite three very different organizations we have worked with to share key insights on smallholder finance. 
Download
Sorghum
Insights Brief 2019
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SDM Case Study: Exportadora de Café California, Mexico