NExT Kenya: Business skills training for Flamingo extension staff

In December 2020, extension staff of Flamingo Horticulture Kenya Ltd, a large grower with various production sites (vegetables and flowers), participated in COLEACP training to assist the company’s outgrowers with book keeping and cost-benefit calculations. This was the second step in a series to introduce the concept to the small-scale outgrowers, which began in 2019. The training took place at the production areas in Nanyuki, Kenya, while Covid-19 measures were in place and strictly adhered to throughout the training.

“This training will impact positively on the relationship between the farmers and the company because farmers will understand their income levels and therefore not blame the company. Farmers will be able to calculate their breakeven points and make informed decisions.”

– Flamingo extensionist

“The training has strengthened the need for thorough book keeping to help understand my farming as a business. I now have a deeper understanding on costs I had not given a thought to before, but are equally important. Yes, it will improve my relationship with Flamingo because it will increase interaction and to understand better the company needs in terms of quality and quantity of produce, and it will also reduce misunderstanding especially on financial matters.”

– Flamingo outgrower

Support on business skills to improve overall business performance is provided through the Fit For Market programme. This support is on two levels: to exporting companies, and via these companies to their outgrowers. Capacity building for small-scale farmers is provided by the technical staff of the company, and sometimes also by extension staff working for NGOs, cooperatives and government services.

Many Kenyan vegetable exporters work with a number of outgrowers organised in groups, and often pre-finance one of the major costs of production, the seeds, and sometimes also other inputs such as fertilisers and crop protection products. They also provide harvesting containers and transport to the packhouse. Companies also provide technical advice to outgrower groups, and assistance with international standards (e.g. GLOBALG.A.P. certification).

Cost-benefit analysis training was provided to the extension staff of Flamingo Horticulture Kenya Ltd working with outgrowers for the production of fine vegetables. The training aimed to build the capacities of extension staff with the necessary background to coach farmers to use their land and resources as a business, with practical examples of cost-benefit analysis and record-keeping for producers. It will enable them to calculate the profitability of each plot/crop, helping farmers to gain insight into their activities and stimulating them to consider their farm cashflow as separate from their household spending. Throughout the sessions, some testimonies were provided of how farmers had lost entire crop cycles because of poor cashflow management. This training should help them to invest in production, plan for the future, and avoid cashflow problems during key production periods. It also aims to introduce farmers to the critical difference between cashflow and profitability.