20100122
allafrica

Nairobi — Over 50,000 fruit farmers in Kenya and Uganda are expected to increase their yields and double their incomes in four years, following the signing of a $11.5 million (Sh862.5 million) partnership deal between TechnoServe and two other organisations.

TechnoServe, a non-government organisation that helps farmers find markets, has received a donation of $7.5 million (Sh562.5 million) from The Bill & Melinda Gates Foundation, $3 million (Sh225 million) from Coca-Cola Company and $1 million (Sh75 million) from Coca-Cola Sabco for the four-year project.

The money will go into training farmers to improve quality, increase production and help them form farmers groups. TechnoServe will also help the farmers to get credit.

Mr Lionel Marumahoko, Coca-Cola East & Central Africa general manager in charge of non-carbonated beverages, said yesterday that the partnership seeks to enable smallholder mango and passion fruit farmers to participate in Coca-Cola's supply chain for the first time.

"The project aims to create new market opportunities for local farmers whose fruits will be used for Coca-Cola's locally produced and sold fruit juices," he told reporters in Nairobi.

Bill & Melinda Gates Foundation programme officer Richard Rogers said that as global and local demand for fruit juice grows, there is critical need to increase production.

While Kenya has tremendous potential to benefit from this demand, many multinational companies currently import fruit juice concentrate. This is due to lack of sufficient local fruit supply, despite locally produced concentrate costing an average of 33 to 50 per cent less than imports.

Mr Rogers said that the foundation has committed more than $1.4 billion (Sh105 billion) focused on sub-Saharan Africa and South Asia, to strengthen the entire agricultural value chain from seeds and soil to farm management and market access to make progress against hunger and poverty sustainable.

TechnoServe country director Fred Ogana said that the investment would drive momentum towards reducing poverty in Kenya by helping entrepreneurial farmers connect to markets.