Adefunke Desh is an agribusiness that specializes in the cultivation, production and trading of animal feed and essential human food commodities for local and international companies in the food and beverage sector. The company promises to deliver safe, high-quality pre-processed grains that meet buyers’ needs while creating impact at farm level through providing farmers with fit-for-purpose service packages allowing them to invest in and expand their farms. 70% of grains is sold at a premium to food and beverage companies with the balance sold to feed producers. Adefunke Desh supplies the highest quality grains that meet strict international food safety requirements to producers worldwide including Cadbury Plc, Nestlé Plc, Nigerian Breweries Limited, Guinness Nigeria amongst others.
Poor quality of grains that fails to meet the food safety standards set by most international buyers remains a challenge for grain traders including Adefunke Desh. This is mainly due to poor farming practices adopted and post-harvest handling of grains. In turn, this hinders access to premium markets and affects both the traders (SMEs) and smallholders’ opportunity for commercialization and sustainability.
Nestlé, a key off takers of grains from Adefunke Desh, is keen to promote inclusive development of four key value chains in Nigeria: maize, rice, sorghum, and soybeans. To this end, Nestlé is working to enhance the commercialization of African SMEs, in turn improving agricultural productivity and livelihoods of smallholder farmers. Nestlé’s ambition is to increase its local grain sourcing volumes by 75% annually through working with four local SMEs, including Adefunke Desh, and scale-up farmer numbers from the current 5,000 to 20,000 in five states in Northern Nigeria.
This SDM study sought to understand how Adefunke Desh could optimize it business model to meet the quality requirements of Nestlé while contributing towards improving the livelihoods of 3,800 farmers.