FINTEA GROWERS COOPERATIVE UNION LTD

KERICHO , KENYA

DIVERSITY OF COOPERATIVES AND THEIR

ABILITY TO EMPOWER GROUPS TO HAVE A

GREATER CONTROL OF THEIR LIVES

(Benefits of Cooperatives to smallholder

farmers)

Presentation by ERIC TOWETT-CHAIRMAN CHEPCHEB

OUTGROWERS COOPERATIVE SOCIETY LTD to the

World forum in Lille-france, on cooperatives

on 15th of November 2012

Presentation Outline

Introduction.

Diversification.

Challenges.

Benefits.

Fintea Union comprises of five

Cooperative Societies: Kokchaik

Chesetekaa, Chepcheb, Ainamoi and

Kapkap all registered with the Ministry of

Cooperative Development and Marketing.

The picture shows co-op members

meeting.

Introduction

Co-operative members meeting (AGM).

Chepcheb Cooperative

Kapkap Cooperative

Kokchaik Cooperative

Chesetekaa Cooperative

Ainamoi Cooperative

FINTEA UNION

.

Background information

The project’s objectives include;

• Processing of tea, thereby improving

livelihood of small scale tea farmers

• Organizing farmers into Cooperative

Societies

• Organizing for the certification of the

societies

• Accessing, maintaining and widening

premium markets

A farmer transporting green leaf to a buying centre for weighing.

Weighing of green leaf in a buying centre.

Weighing of green leaf in a buying centre.

Certifications

The union is currently certified under:-

• Fairtrade 2nd grade producer

organization.

• Rainforest Alliance.

Our products

We have two Marks:-

• Bondet

• Masingi

Our products (cont.)

• Direct sales to the European

markets.

• Through Mombasa Auction house (

facilitated by the processor)

Market for our products,

Women participation

Current situation

Low sales through Fair trade with the

rest going through Mombasa auction.

Two major buyers under Fair trade;

Cooperative Group and Salisbury

Low percentage of fair trade sales.

Comparatively better prices for the

production.

Diversification

Kericho is a highly potential area for a

number of agricultural enterprises to be

undertaken; Crop farming and animal

husbandry

Through the Union we have introduced

additional products to our farmers

These products will be available in the

supermarkets here and elsewhere soon.

Fine beans

Training farmers on use of personal protective clothing (PPEs)

Co-op strategic plan development session

Future plans

• In an effort to enlarge our markets we

appeal through this conference and the

use of other electronic media to the

individual consumers and the Consumer

Cooperative Societies to buy our products,

in so doing they will be improving the lives

of over 11,000 small scale farmers and

their dependents.

• It is our dreams that we will be having our

brands in the shelves in all major

supermarkets in the entire European

market in the near future both for tea and

diversified products. The blend 99 package

in the British market gives us a lot of hope

and we encourage the purchase of these

brands.

Future Plans(cont)

Future Plans(cont)

• We have identified projects that we

will utilize the premium received on,

though most of these projects

require more capital outlay than the

available premium.

Major challenge

The union is still relying on one

processor with a limited tea processing

capacity. During peak seasons we exceed

their capacity to process, this situation

limits our overall performance.

Weather associated risks are other

challenges. This include; drought and hail

• Service Delivery - Processing of tea

• Pooling of resources

• Technical support from the Project and

Finlay (K)Ltd -(Processor)

• Improved prices and timely payments

• Collective bargaining for improved prices

and other conditions

Benefits

• Knowledge derived from Fair trade

training,

• Opportunity to attend international trade

fares, expo’s and conferences,

• Access to the niche markets,

• Premiums and hence reduction in

poverty,

Benefits(Cont)

• Ripple effects-employments /job

creations,

• Role of players in marketing of our

products.

• Water and environmental

conservations

• Good Agricultural practices- safe use

of pesticides and herbicides

Benefits(Cont)

THANK YOU

CHAIRMAN-CHEPCHEB COOPERATIVE SOCIETY LTD

Eric Towett