Contract farming is an important aspect of agriculture in Kenya. It involves an agreement between a farmer and a buyer, where the farmer agrees to produce a certain crop on behalf of the buyer. In return, the buyer provides the farmer with inputs such as seeds, fertilizers, and pesticides, and buys the produce at a pre-agreed price. This type of farming has gained popularity in Kenya as it provides farmers with a secured market and reduces the risk of crop failure due to market uncertainties.
There are several contract farming companies in Kenya that operate in various sectors such as horticulture, floriculture, pyrethrum, and tea. These companies offer different services to farmers such as training, inputs, and technical assistance. In this article, we will highlight some of the leading contract farming companies in Kenya.
1. VegPro Group
VegPro Group is a Kenyan company that specializes in the production and export of fresh fruits and vegetables. The company works with over 7,000 small-scale farmers across the country and provides them with inputs, training, and market access. VegPro Group has partnered with major supermarkets in Europe such as Tesco, Sainsbury’s, and Carrefour, and exports more than 25 different types of vegetables and fruits.
2. Finlays
Finlays is a global company that has been operating in Kenya for over 100 years. The company specializes in the production of tea, flowers, and fresh produce. Finlays works with small-scale farmers and provides them with training, inputs, and market access. The company has a tea processing factory in Kericho and a flower farm in Naivasha.
3. Pyrethrum Board of Kenya
The Pyrethrum Board of Kenya is a state corporation that was established in 1933 to promote the production of pyrethrum, a plant used in the production of insecticides. The board works with small-scale farmers and provides them with inputs such as seeds and fertilizers. After the harvest, the board buys the pyrethrum from the farmers at a pre-agreed price.
4. East African Growers
East African Growers is a horticultural company that works with small-scale farmers in Kenya and Tanzania. The company provides farmers with inputs, training, and market access. East African Growers exports fresh fruits and vegetables to Europe, the Middle East, and Asia.
In conclusion, contract farming in Kenya has provided a viable option for small-scale farmers to access a secure market and reduce the risk of crop failure due to market uncertainties. The above mentioned and other contract farming companies in Kenya have played a pivotal role in supporting small-scale farmers in the country. Through partnerships, training, inputs, and market access, these companies have contributed to the growth of the agriculture sector in Kenya, and ultimately, the overall economy of the country.