Post-harvest grain losses in the developing world lead to lower incomes and food insecurity among smallholder farmers. This problem is particularly acute in Sub-Saharan Africa, where post-harvest losses are estimated at US $1.6 billion per year, or about 13.5 percent of the total value of grain production. Insufficient on-farm storage often forces farmers to sell their crops right after harvest, causing a surge in supply that lowers prices for their maize. While private sector solutions to post-harvest losses exist, they are often too expensive or not accessible to smallholder farmers across the developing world.
The AgResults Kenya On-Farm Storage Pilot is a four-year, US $7.75 million pull mechanism designed to incentivize private sector companies to develop, market, and sell new, or redesigned, on-farm storage devices to smallholder farmers. The pull mechanism is technology, marketing, and distribution agnostic. Instead, companies are encouraged to consider cost and storage effectiveness for smallholder farmers, and the economic benefit to smallholder farmers and beyond.
The pilot targets two regions in Kenya: 1) The Rift Valley where 60% of the country’s maize is produced; and 2) The Eastern Region, the third largest maize-producing region in the country but experiences losses due to the large grain borer. The large grain borer is a pest that infests in grains, particularly maize, and is heavily present in the Eastern Region of Kenya.
The pilot is managed by Agribusiness Systems International (ASI).
The pull mechanism is comprised of performance-based grants provided to companies based on verified sales of approved storage devices that meet the sales threshold of 21,000 MT. The sales threshold is calculated based on the useful life of a device. The number of devices are adjusted to reflect the number of smallholder farmers in each region.
Prize Competition Inspires Development of Affordable Technologies for Smallholder Farmers (Via USAID Feed the Future)