Potato brokers lose out to technology

Farmers push a bicycle loaded with bags of potatoes along a dilapidated section of Landi-Kamarani road in Turi, Molo. Farmers say that upon harvesting, they are at the mercy of the brokers who buy the potatoes cheaply but sell them at fortune in Nairobi. Photo/SULEIMAN MBATIAH 

In Summary

• James Muriuki, a processor of frozen chips who supplies The Hilton, Mayfair, Mercury, and The Lord Errol among other top hotels, has subscribed to this platform and says that it has enabled him stabilise his business.
• The buyers in Nairobi are now able to negotiate for a price with the farmers after which they can arrange for transport. For instance they use the trucks coming back to Nairobi after transporting cargo upcountry.

By ALLAN OLINGO
More by this Author

For many years, Nairobi brokers have taken advantage of farmers and buyers alike, but a new SMS service puts power back where it belongs.

At Nairobi’s Wakulima Market, as fresh potatoes from Narok arrive, the hand cart boys are at hand, working their magic, transferring sacks from the vehicles to the various weighing sections.

Money changes hands and the lorry heads to the parking lot. Unknown to many, the man pocketing the money isn’t the farmer. He is a broker — the kingpin in this business.

Back in Narok, the farmers are languishing in poverty, struggling to make ends meet as they break their backs over the land, preparing for the next batch of potatoes to be collected in a few weeks’ time.
 
Boon for middlemen

Ledama Nchoko, a farmer at Kiriri sub location in Narok County decries the persistent poor prices that they are subjected to.

“It costs a fortune to buy the seeds, fertilisers, pesticides and the overall planting and taking care of these potatoes,” he says.

Nchoko says that upon harvesting, they are at the mercy of the brokers who buy the potatoes cheaply but sell them at fortune in Nairobi.

“I am forced to sell a bag of 180 kilos for just Sh1,800. We know that once they get to Nairobi, the brokers divide them into two 90Kg bags and sell them at Sh3,500 each making Sh7,000,” he says.

Back at Nairobi’s Wakulima market, the brokers who own the trucks call the shots. They dictate to buyers (restaurants and small scale business people) how much the bags will cost.

On average, depending on the size and quality of the potatoes, the prices range between Sh3,400 and Sh4,200 a bag.

This skewed chain which favours brokers could soon be a thing of the past with the introduction of Sokoshambani, a tool that deploys a free SMS service that runs on the 8988 short-code.

Made possible by Twitter, the short code enables small-scale farmers to access markets, price intelligence and sell their produce directly to markets.

Stephen Kimiri, the man behind the platform says that it gives the two main players; the fast-food restaurants and the small-scale potato farmers leverage over the brokers.

“In this market, it is the brokers who do little yet benefit a lot, but with Sokoshambani, both parties benefit as the farmers are able to sell at a cost higher than what the brokers buy from them while the buyers are also able to buy at a cost lower than what the brokers sell to them,” Kimiri shares.

Kimiri says that the farmer and vendors subscribe to the short-code and are able to communicate directly via-text message.

“Through this they are able to trade directly while sharing farming intelligence, market reports and updates while controlling quality of the produce,” he says.

Cut them out
In Nairobi, most restaurants depend on Wakulima Market for their potatoes but with the use of this tool, they are able control the prices at which they buy from the farmers.

“Restaurants and hotels need potatoes and have had to contend with the fluctuating prices that are set by brokers.

This means that the high potato prices from unscrupulous suppliers affect overall profit margins. With Sokoshambani, this will change,” says Kimiri.

James Muriuki, a processor of frozen chips who supplies The Hilton, Mayfair, Mercury, and The Lord Errol among other top hotels, has subscribed to this platform and says that it has enabled him stabilise his business.

“The platform has enabled me to have quality potatoes which most hotels are looking for. Most farmers do not understand that restaurants and hotels require fresh potatoes for quality chips and for a longer shelf-life for storage,” he shares.

“Through Sokoshambani, we are guaranteed that we will have quality potatoes because the farmers have committed themselves to that.

This is not the case with buying directly from the market because you have to take what is available, even if it is not the quality you are looking for.”

The buyers in Nairobi are now able to negotiate for a price with the farmers after which they can arrange for transport. For instance they use the trucks coming back to Nairobi after transporting cargo upcountry.