Twiga-Improving Market Access for Farmers in Kenya

Twiga-Improving Market Access for Farmers in Kenya
Case Code: ITSY133
Case Length: 16 Pages
Period: 2012-2020
Pub Date: 2023
Teaching Note: Available
Price: Rs.400
Organization: Twiga
Industry: Food & Beverage
Countries: Kenya
Themes: Supply Chain Management, Entrepreneurship
Twiga-Improving Market Access for Farmers in Kenya
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

An Idea is Born

Brooke, raised in Texas, was educated at Princeton. He joined Oxford to pursue his doctorate degree. He was in Kenya in 2008 as a social economist to conduct research on how religion affected the purchasing and credit decisions of small business owners in Nairobi. At that time, he interacted with some of the vendors and Mama Mbogas in the agricultural produce market. He found that the vendors were not getting good quality stock..

‘Twiga’ Takes Off

Brooke and Njonjo chose one produce, banana, to build the distribution network. In the beginning they started taking orders from the vendors by convincing them that they could get fresh produce delivered to them at a lower price..

The Business Model

Brooke, while doing his research, gained a thorough understanding of the informal retail in the country, while Njonjo knew the intricacies of distribution all over the continent due to his association with Coca-Cola’s structured the retail process . They took about 18 months to start the venture..

Improving Livelihoods

Among the staff at Twiga’s collection centers were agronomists who provided advice and service to farmers on achieving higher crop yields, adopting sustainable agriculture methods, etc. Twiga planned to add agricultural inputs, distribution networks, and financial services and develop the collection centers as access points for other basic goods..

Driving Food Security

According to experts, Twiga had transformed agriculture in Kenya and the benefits were reaped by all the stakeholders. The farmers were offered a guaranteed offtake along with transparent prices. Twiga’s platform aggregated the purchasing power of farmers across the country. This allowed them to access markets at better prices..

Looking Ahead

Twiga planned to use the US$ 30 million from Goldman Sachs (US$ 6.25 million in convertible debt and US$ 23.75 equity) to develop a distribution center in Nairobi for agricultural produce as well as FMCG goods..

Exhibits

Exhibit I: About Kenya
Exhibit II: Twiga – Funding
Exhibit III: Twiga – Core Values

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