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I’m Joab Katonya, an Organic Farming Specialist, a trainer and an entrepreneur of organic farm inputs from Nairobi. I want to start an organic fertilizer farm and fertilizer depot at Loitoktok in Kajiado County to supply organic fertilizer market in Loitotok and surrounding towns including Taveta irrigation schemes and other farming areas of Kenya. This is just a starting point, but would like to spread OGA depots across the country when I get financial support.

Budget Breakdown (approx)

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Problem Statement

I love organic farming from the practical point of view in that, no matter who you are in this country you need to eat healthy non-toxic and non-chemical foods grown organically. Our country has practiced chemical farming for over five decades since independence and the consequences have been devastating, not only to our health but also to our environment. In many parts of Kenya farms have been degraded immensely to a point of no productivity due to excessive chemical infusion into the soil causing damage to the eco-system and affecting food security in the country.

I have done extensive research on the benefits of organic farming in two Counties of Kajiado and Bomet and the results were very phenomenal. e.g. in Kamongil village Bomet County, using the world class unique liquid organic fertilizer we effectively managed to repel the dangerous Fall Army Worms from maize plants and made a bumper harvest from a heavily infested area, as you can see in my pictures. In Kajiado we managed to grow organic tomatoes also without any attacks from harmful insects and diseases. The fertilizer is non-toxic, non-chemical, resists pests and plant diseases and boosts food production.

After these demonstrations, the demand for this liquid organic fertilizer became very high, but a place of supply or a depot was absent. We all know that the need for organic foods in the country is growing rapidly following many health cases attributed to consuming chemically grown foods. Owing to the short supply of organic fertilizers across the country, I feel compelled to make this fertilizer available by opening several depots across the country. That is why I plan to start with one depot and expand when you fund my project. I shall have a variety that will be directly imported from China, Ukraine, and the USA.

I believe I’m well suited and versed to run these depots and the tomato farm because I have run demonstration farms and trained many farmers across the country successfully. Before this fertilizer was used, it had to be approved by KEPHIS in conjunction with Kenyatta University at a Thika farm and the results were successful. I have attached the photos for you to see.

I plan to set up the farm and the fertilizer depot at Loitoktok which will serve all the farmers of neighboring towns of Taveta, Rombo, Kimana, Isinet, and the outskirts. The land is readily available and easy to rent. I have identified 3 x 2acres shambas = 6 acres, I can rent at Ksh50,000 per acre per season.

There is a high chance that this project will succeed because awareness seminars to farmers have been done sporadically and competition for the fertilizer is zero apart from chemicals. On the other hand, the demand for organically grown tomatoes in the local and global markets is high. Once the tomatoes are mature for harvest, buyers, from the cities of Nairobi and Mombasa readily come calling. Farmers will also flock the depot for this extra-ordinary fertilizer for them to practice organic farming.

Photos About the Project
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Project Details

As agriculture is one of the dominant economic sectors in Kenya and is likely to dominate the economy for the coming decades, especially when the challenge for food security is a top priority of the economy, the challenge is expressed in terms of growth in agricultural productivity which is directly related to, among other factors, improved application, and usage of agricultural inputs. Putting organic fertilizers at the forefront for sustainable agriculture is therefore inevitable.

My project aims at spreading the gospel of organic farming across the country. The farm produce will target three primary markets:

  • Large city markets of Nairobi and Mombasa
  • Large Tourist hotels and Lodges across the three famous Tourist Counties of Kajiado, Taita-Taveta, and Mombasa
  • Access to high-value global markets abroad for organic produce

With the diverse market choices above, you can be assured that your money will finance a project with realistic chances of succeeding because there are sufficient buyers, and the organic foods can definitely fetch good prices.

Value for Customers

With this organic farm and fertilizer depot project, I hope to satisfy my customers fully. In food production, my planned measure will curb wild animals from neighboring national packs, against invading the farms in the night, spoiling and destroying the plants. And, by the use of this organic fertilizer, I will manage to resist various harmful insects and diseases which affect tomato production. Your timely funds, therefore, will provide not only for the Organic Fertilizers but also for fencing materials that will keep wild animals at bay. We shall be able to produce high-quality organic tomatoes suitable for healthy human consumption locally and for export.

Marketing Plan

Across the country, markets are flooded with chemically grown produce. Urban areas are affluent areas with high consumption of fruits and vegetables. My market research has shown that almost every home has no choice but to consume chemically grown foods because there is no available organic alternative. It is obvious that our organic produce will enjoy high demands right from the beginning. Many overseas countries have already banned imports of chemically grown produce from Africa but readily allow organic foods. This gives us the advantage to exploit international markets and fetch good prices. My Organic farm will not only supply local markets but also overseas markets.

To emphasize the benefits of consuming organic foods and the dangers of consuming chemically grown foods. Publicity on the available organic foods at various spots in towns and cities specifying the unlimited health benefits contained shall be our major strategy across the country, together with diversified publicity on social media, Radio and national as well as vernacular TVs.

Since Organic fertilizer shops are rare in this country, we shall be privileged to exploit the local market areas. Our sales projections for the first year are around Ksh.10million. We project a growth rate of 15% per year for the first four years.

Organic Farm Project Cost Structure

My farm project is scalable because only a minimal percentage of the start-up costs are fixed. For example, although my plan is to start with 6 acres, the farm can scale up to even 20 or 50 acres as time goes. This will, of course, increase the cost of running the farm which forms a significant portion of the budget. We will be needed to add more workers, spend more on water and fertilizers and maintenance costs.

For the budgeted 6 acres, the project can breakeven with the first two sales at four months at a market price of ksh4,000 per crate. This price is fair, considering tomatoes fetch as much as Ksh6,000. Per crate and can produce at least 200 crates per acre per season.

Organic Fertilizer Depot Cost Structure

With a start-up of 500 bottles of liquid organic fertilizer at a cost of Ksh.2,850.00 per bottle in the Depot stock, and selling at Ksh4,000 per bottle, will draw a total profit of Ksh.575,000.00

Profit Margin

If I sell the tomatoes in the fourth month, at Ksh3,000 per crate, the expected total production of 1200 crates will fetch Ksh3,600,000. The next season, the profits will be higher because the costs of construction and other startup costs will not be there.

Results

This funds will help to achieve the following results:-

Achieve Improved financial status.

Achieve Improved food production for agro-business.

Be able to help eradicate poverty.

Be able to enhance organic farming and help Preserve the environment.

Enable to access high-value export markets.

Be able to make available the much needed organic fertilizers suitable for organic farming across the country.

Be able to reach thousands of small-scale farmers across the country, with organic farming skills and information.

Our sincere prayer is that this Proposal meets your favorable consideration. I must assure you of my continued efforts to manage this business profitably.

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Aspect

What are we gauging?

Max Points

Maximum Points Available

Project Score

Points earned by this proposal

1. Prose

Available Points: 10%
This project Scored

8%

2. Investor Confidence Boost

Available Points: 15%
This project Scored

12%

3. Acceptable contingency budget

Available Points: 5%
This project Scored

0%

4. Plan B

Available Points: 10%
This project Scored

5%

5. Scalable

Available Points: 10%
This project Scored

0%

6. Standardized

Available Points: 10%
This project Scored

10%

7. Realistic

Available Points:10%
This project Scored

7%

8. Return on Investment

Available Points: 10%
This project Scored

6%

9. Market

Available Points: 10%
This project Scored

7%

10. Intrinsic Value

Available Points: 10%
This project Scored

10%

TOTAL

65%

Total points this project scored out of a possible 100
To learn why this proposal got this score, read the detailed scorecard article. Remember, the scorecard evaluates the information in the proposal. The project initiator can improve the score by adding or changing information in the proposal.

Project Location

Comments

  • JOAB

    This is a lucrative project in the sense that it will boost food production and promote food security in the country. Moreover, the communities will experience the wellness of health, and less of chronic non-communicable diseases like cancer, diabetes, arthritis, and high blood pressure, believed to have been caused by the consumption of chemically grown foods.

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