Syngenta establishes key partnerships to serve 100,000 smallholders in Kenya enabling them to purchase input packages.
Who are they?
Syngenta is a global producer of high-quality seeds and crop protection products.
About the SDM
In this partnership-based SDM, farmers receive a full range of services that include training, finance (loans), crop insurance, access to a package consisting of hybrid seeds, fertilizers, and crop protection, and market linkages.
How it works
Tomato and potato farmers in Kenya can significantly increase their yields (and incomes) if they use certified hybrid seeds and apply good quality fertilizers, insecticides, and fungicides. However, their yields remain low because the majority are currently unable to afford these products.
Syngenta has launched the Mavuno Zaidi project in Kenya to work with tomato and potato farmers to address the affordability roadblock. The project currently works with about 26,000 farmers with the goal of reaching 100,000 farmers in the coming years. Syngenta has partnered with fertilizer providers, financial service providers, and offtake intermediaries to establish a partnership-based SDM to engage with these farmers.
Through the SDM they receive a full range of services including training, finance (loans), crop insurance, access to a package consisting of hybrid seeds, fertilizers, crop protection, and market linkages. Without the complementary services provided by other partners, Syngenta products would be out of reach for most farmers in the SDM. While setting up the SDM is a cost to Syngenta, they are recovered through their revenues from sales of hybrid seeds and crop-protection products to farmers.
An ecosystem of partners is needed to deliver the services and Syngenta plays a key facilitating and coordinating role in this ecosystem. Playing this role requires investments on the part of Syngenta as shown here.
It costs Syngenta about USD $62 to bring a new farmer into the SDM which lowers significantly after the first two harvest cycles as they are trained and self-sufficient at this point. As a result, Syngenta is able to break even and make a profit on a farmer who continues in the SDM into year two (third harvest cycle onwards).