SokoShambani: A Market-Driven Approach to Developing Agri VAS

At a recent mobile agriculture networking event in Nairobi, I met Stephen Kimiri of SokoShambani (Swahili for Farmer’s Market), a mobile service supporting small-scale potato farmers in Kenya with market prices and buyer/seller matchmaking.  What I found most interesting about SokoShambani was their market-driven approach to developing their concept.  When developing any new product or service, the conventional approach is to study your target market and design for those users.  In the case of developing Agri VAS (Agricultural Value Added Services), that means poor rural smallholder farmers.  SokoShambani went a bit further- while they’re definitely keeping the small-scale potato farmer in mind, their approach when developing the service was more focused on the large market entities driving the potato value chain.  As Stephen explained when we met, “We’re answering the question, ‘What challenges are faced by the fast-food industry as a result of the small-scale potato farmers suffering certain challenges?’. Due to the inter-dependencies of these challenges, the solution is best dictated by the market which would be able to finance the solution.”

SokoShambani’s research revealed that while 90% of Kenya’s potatoes are grown by millions of smallholders, a small number of large market entities, like fast food chains and potato chip/crisp companies consume more than 65% of the potatoes reaching the market.  Further, 40% of the annual harvest is lost to spoilage and doesn’t even reach the market.  Having such a small number of dominant buyers (with steady and predicable demand), an inefficient supply chain (high level of waste) and large number of smallholder participants is what makes this value chain particularly “ripe” for intervention.

By focusing their approach on the few large market entities, SokoShambani has fewer requirements and needs to cater their interventions towards, thereby simplifying their intervention.  The support they provide to smallholder potato farmers is targeted on just a few quality and quantity standards of a few buyers.

Their buyer/seller matchmaking pilot currently services 127 farmers and 15 restaurants by leveraging mobile Twitter accessible on the 8988 short code in Kenya or @ViaziNarok.  In addition to scaling up to a true mobile service (independent of Twitter), future plans for SokoShimbani include more holistic support for potato farmers, such as financing, inputs and agriculture information and advisory services.

What we can learn from this example is that a market-driven approach means more than simply understanding the user and their needs.  A more holistic approach requires a solid understanding of the value chain and who the key drivers are.  While supporting the smallholder farmer is key, that support must be aligned with the needs and demands of the value chain drivers.

Are you in the research or design stage of developing an Agri VAS or expanding into new value chains?  What approaches are you taking? We’d love to hear your views in the comments section below (or email us at [email protected]).

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.