Have you ever heard about the term “Value Addition” in agriculture and wondered what it means and where to start? In simple terms, Value addition refers to changing raw agricultural products into something new.
It’s achieved either through processing, cooling, pasteurization, drying, packaging, extracting or any other process that changes raw agricultural commodity into new product. Some good examples include turning raw milk into yogurt through fermentation or using raw potatoes to make chips and crisps.
As a farmer/producer/trader looking to start an agribusiness In Kenya or expand your revenue stream, value addition is the way to go.
Why value added agriculture is important in Kenya?
Adding value to agricultural products is a worthwhile endeavor because of a number of reasons below:
- Increased profit margins.
- Opportunity to open new markets.
- New Job creations along the agricultural value chain.
- Reduces agricultural losses due to product quality deterioration.
- Reduction of post-harvest loss especially in horticulture
- Increases product storability and shelf-life.
- Utilization of commercial insects eg making cricket biscuits.
- Processing ease packaging and transportation of agricultural products.
- Aid in agricultural waste management eg making briquettes from fruit peels.
Main value addition opportunities in Kenyan Agriculture
Dairy: One can focus on making Yoghurt, Cheese, Butter, Biogas
Horticulture: Focus on Juice, Jam making, fruit paste and fruit drying
General: Making crisps (banana and potatoes), Making cricket biscuits, Oil pressing, make flower vase spoons, necklaces, bracelets, candle holders from animal horns and bones, turning hides and skin into leather for making shoes and coats.
Wondering how to market your value added products?
Most consumers fear trying new things in the market. This is because some markets are so dynamic and it calls for both entrepreneurial skills and experience to master it. The important thing is to master the 5Ps of Marketing i.e developing a clear understanding of the Product, Price, People, Place and Promotion strategy that are will drive your agribusiness. We shall in detail issues to do with marketing in the upcoming article.
Challenges facing Agriculture value addition in Kenya
- Inadequate capacity building across Kenyan borders.
- Fear among consumers against new products, cultural concerns.
- Inadequate finances, some innovations may require huge funding.
- Innovation gaps, few innovations available to enrich value addition.
- Marketing challenges, a lot of product awareness is required.
- Local Unavailability of required equipment.
- Lack of motivation among the innovative group/persons
Role of Youth in Agribusiness and Value addition In Kenya
Youth have critical role to play as far as value addition is considered. Our youth are so important because they are our future.
In Kenya, the youth comprises 64% of the population with the majority being underemployed and unemployed. Some people have likened the youth crisis to a time bomb waiting to explode. However, the potential of the youth in Kenya can be tapped by attracting them into agribusiness and specifically in value addition. The youth are both innovative and creative.
They are the ones who will grow up to work in the agriculture industry and advocate for all of its noble causes. They will become farmers, ranchers, business leaders and lawmakers.
Youth need support from agro-producers, business leaders, legislatures and trainers. With lots of support and encouragement, Kenya’s youth will grow up to lead agricultural value addition in the right direction which will allow it to prosper for many years to come.