AgricultureSectorInKenya

ByMucaiKunyiha–GroupM.DCooperK-BrandsLimited

1

The Cooper’s Story •  Founded in 1852 •  In Kenya since 1906 •  1959 – Wellcome Trust •  Local company in 1990 ▫  1st & 2nd generation family

business

Agriculture •  51% of GDP: ▫  26% directly ▫  25% indirectly.

•  60% of employment •  65% of exports. •  Big 4 Agenda

Therearegoodreasonstoinvestinagriculture

•  1outof2Kenyansmakealivingfromagriculture

•  1outof4Kenyansownacow

•  2.3%ofbudget•  4.5%inSSA•  10%inAsia

Agricultural GDP

4

Crops 80%

Animal Production 14%

Forestry & Logging 4% Support Activities

2%

Source: KNBS 2017

Trends in crop production between 2015 - 2017

0 200 400 600 800 1000 1200 1400

Tea

Coffee

Cut Flowers

Sugarcane

Amount in Millions of Euros

Crop

Crop Production in Millions of Euros

2017 2016 2015

5

Livestock Production

6

Cattle & Calves

Goats & Sheep

Milk

Chicken & Eggs Others

Source: KNBS 2017

Poultry and Cattle Distribution in Kenya

•  Cattle•  Indigenous–14million•  Exotic–3.2million

•  Poultry•  Layers–2.5million•  Broilers–4million•  Indigenous–22million

•  Pigs–334,000•  Shoats–44million•  Camels–2.6million•  Donkeys–1.8million

The Dairy Sector

•  Percapitamilkconsumptionfrom110litrestodayto22olitresby2030.•  20%ofmarketedmilkisprocessedthroughformalchannels•  80%tradedthroughinformal

EmergingIssues:Practicalities and Realities

9

42%ofKenya'spopulationisunder15years

Ayounggrowingpopulationportendseverincreasingdemandforfood.ANDforthethingsthatcreatemorefood

Population

11

The Population Challenge

Productivity Challenge: Maize

0

100

200

300

400

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US

D/to

nne

Maize – Producer Price (US$/ton)

Kenya South Africa Zambia

0

1000

2000

3000

4000

5000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US

D/to

nne

Chicken – Producer (US$/ton)

Kenya South Africa Zambia

Source: FAO

Cows v Milk Production

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

0

5000

10000

15000

20000

25000

30000

35000

40000

45000 19

61

1963

19

65

1967

19

69

1971

19

73

1975

19

77

1979

19

81

1983

19

85

1987

19

89

1991

19

93

1995

19

97

1999

20

01

2003

20

05

2007

20

09

2011

20

13

2015

Head H

g/A

n

Kenya - Yield , Hg/An South Africa - Yield , Hg/An

Kenya - Milk Animals South Africa - Milk Animals

14

15

16

17

•  48%ofhouseholdincomegoestofood

•  Illness,funerals,repairsetchavedisproportionateimpactonconsumption

Wheredoyoufitinthefarmer’sconsumptionpatterns?

Consumption

Mobile & Internet 2017

•  51millionusers•  41millionmobilesubscriptions

MobileMoneyRules!•  28millionusersubscriptions•  540milliontransactions•  Over$16billiontransferred

Legal and Environmental

•  Newproductapprovals:12–48months

•  Globalstandarddossiers•  WHOcGMPrequirements•  Fastchangingenvironmente.g

plastics,KVB