Maize (Kenya’s staple crop) and its products’ prices widely fluctuate throughout the year. It’s caused by supply that’s heavily dictated by the seasons. Farmers lack production support which results in very low productivity rates, at less than half of potential yields. The supply chain from the farmers to the customer is also long with 7-8 players, squeezing profit margins. Output quickly runs out before the next harvest and prices gradually rise until stocks ran out, forcing processors to import at even higher prices.
Afro Circus Manufacturing Company (ACM Co) LTD has a solution to these problems. It will reduce the supply chain to 4 players by first sourcing maize directly from farmers. It will do so via farm contracts with pre-set prices, coupled with extension via farm visits and a USSD based extension support system. It will also have a sales team that sales directly to SMEs via a Dealer management system (DMS). These will ensure stable input costs and output prices.