Potato value chain financing launched
THE potato value chain financing facility, which aims to boost productivity and expand production, has been launched with backing from Government and buyers.
It will enable farmers to access loans and equipment for hire from AFC Holdings.
Under the facility, the private sector will also support production of their raw materials.
The scheme is anchored on tripartite arrangements involving the bank, farmers and buyers. It is supported by the Government through a performance guarantee to ensure farmer-friendly interest rates. It will also ensure full recovery of any support given by the bank on the cost of inputs.
Considering the complexity surrounding the perishability of potatoes, the facility will be accessed by farmers with contracts or off-take agreements with registered buyers including potato processors, fast food outlets, supermarket chains, seed houses and distributors of fresh produce.
Officially launching the potato value chain at Parklands Farm in Norton on Tuesday, Lands, Agriculture, Fisheries, Water and Rural Development Permanent Secretary, Dr John Basera, said the scheme was a great initiative.
“This is a very exciting day whereby we are launching the potato value chain model.”
Buyers of agricultural commodities are now compelled to produce at least 40 percent of their requirements locally rather than through imports.
‘’ This model is a game-changer in terms of crowding in the participation of the private sector and availing finances to the farmers,” Dr Basera said.
He said the programme entailed supporting development financing, which was key to infrastructure in terms of irrigation rehabilitation and equipment.
“The AFC Land Bank is indeed strategic in supporting such an initiative because we believe that they are now a one-stop-farmer-shop to everything with regards to agricultural production,” Dr Basera said.
Host farmer Mr Ronald Museka said he was happy with the project.
“I am very excited about this launch because it is something that we have been pushing for a very long time to have a facility that supports farmers, especially potato farmers.
“We believe potatoes are a strategic product. We need the facility to increase production and this will change a lot of things especially in terms of business,” he said.