ABOUT KUKUDEAL

 

During the RIU (Research Into Use) program Muvek piloted a business oriented Farmers Support Unit named “KukuDeal”) for aim of strengthening the development of the poultry industry during and after RIU’s exit. The unit was designed to address sub-sector development challenges at national scale in this way:

 

  • 1.  Piloted the indigenous poultry contract farming model directly with smallholder’s rural farmers. The contracts provide all the necessary inputs and support to enable farmers to stabilize and synchronism production so as to meet the market demand (quality, quantity and timeliness);

  • 2.  Formed a network to support national market development and marketing of poultry by coordinating and handling linkages between poultry producers, buyers and other relevant stakeholders including processors. The network also works with relevant stakeholders to pioneer the development of the poultry sub-sector in the country;

  • 3.  Formed a team that continues to broker linkages and coordinate demand and supply of inputs and services between farmers and suppliers. During the RIU program it became clear that both farmers and poultry service providers were overwhelmed with the process of coordinating input/service orders and distribution to different farmers who are geographically dispersed and in remote areas. Most farmers placed individual orders which were usually very small and only depended on when they had access to money. This created difficulties in deliveries, as transportation costs would be higher for individual smaller orders. The unit has therefore established a network of service providers and distribution points to ease transportation and distribution of inputs to rural areas through both public and private transportation channels. The points are also be marketed as collection centres for local buyers, where farmers can easily connect with potential buyers.

  • 4.  Piloted the information and communication system for supporting technical information needs between sources of information and users. Here the unit works to explore uses of ICTs to increase farmers’ access to poultry information and other services.

Here and now, Muvek has registered “KuKuDeal” as one of her Trading Companies and we believe the unit will create a lasting foundation for developing the subsection national level while maximizing the impact and inclusiveness of rural smallholder’s farmers. This is important because rural producers still require support in terms of coordination, managing market access, policy influence, research and development. KukuDeal will also continue to collect lessons on the model and promote its adoption in other regions and in other agricultural commodity chains. KukuDeals’ intention is to build a profitable poultry business along the entire poultry value chain to export level, then distribute shares to stakeholder organisations like for producers, breeders and feed manufacturers, etc. Muvek is currently working with other actors to develop such organisations as it did to develop the Tanzania Poultry Breeders Association.

 

Muvek is now investing about 1.1Mil USD to establish a feed plant under KukuDeal, out of which, USD 0.8mil is a commercial loan. The plant is meant to ensure availability of quality feeds as KukuDeal runs the poultry contract farming scheme. We are also in the process of mobilizing resources sufficient to; (i) Expand the production contract scheme and involve more farmers; (ii) Invest in poultry meat processing; and (iii) Invest egg sorting, grading and packaging. It is therefore KukuDeal’s vision to improve the production, quality and value of rural poultry products to international competitive standards.

 

In all its work Muvek’s ambition is grounded in supporting the private sector towards increasing investment in using new knowledge, sourcing technology and consequently promote rural innovation and growth.


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