Posted 06/04/2014 by admin in Entrepreneurship

AGRIBUSINESS: What can Kenya Learn from Israel?




hat exactly is Agribusiness? In agriculture, it includes crop production, seed supply, farm machinery, marketing and retailing and agrochemicals. Agribusiness is one of those dormant powers that could shake Kenya and transform the rural economy as a job incubator for the youth.

Agriculture in Israel.
The Israeli economy has a highly established industry. They are one of the higher exporters of garden-fresh products and they are the worlds leader in agriculture in technologies despite their disadvantage of location and in general the land not being the best for agriculture (More than half the area is desert and there is lack of water).
Israel is homespun to 2 inimitable types of agricultural communities – Kibbutz and Moshav.
The Kibbutz is community in which the community owns production and income is distributed equally distributed. The Moshav are a co operative village whereby each family maintains their own household and works on their own land individually.

Kenyans can learn from these corporative ways of framing by getting smallholder farmers to farm in groups and revive the marketing cooperatives. This will improve the farmers value system as working in a team always leads to better results and returns in the long term. Another advantage of group farming is the whole concept of farm management. This means that the group can enter into contracts together with potential buyers and then supply their products throughout the entire year. This is advantageous, as it will ensure better prices, introduce stable income and reduce rural poverty.

There is an immediate and urgent need for farmers to know that farming is a business. It requires all the proper planning and the details of supply chain are key answers to increase yield and returns. There is an important need for farmers to understand the market before getting onto the fields to produce. It should be emphasized that since its easy to produce money in the Kenyan farming system, there is scope for exportation.

Image sourced from: http://www.trade-it.co.uk/


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