Fast-moving consumer goods manufacturer Bidco Africa is inviting small-scale farmers to supply it with 18,000 tonnes of sunflower and soybeans every year.
The manufacturer is currently producing half of the edible oil products it is capable of producing, owing to a low supply of raw sunflower and soybeans.
Bidco needs 36,000 tonnes of raw sunflower and soybeans every year to maintain full production of its edible oil brands. However, the manufacturer is currently only receiving about half that amount, owing to a shortfall of contract farmers available to supply it with oil seeds.
With the company aiming to double its turnover from the current $500 million to $1 billion within the next five years, Bidco is turning to small-scale farmers to secure the additional 18,000 tonnes it needs to boost production of edible oils.
Bidco is the leading edible oils manufacturer in Kenya. Some of its well-known edible oil brands include Elianto, Kimbo and SunGold.
“We source most of our soya and sunflower seeds from a network of over 25,000 small-scale contract farmers across the Rift Valley, Western, Nyanza and Meru regions.However, there remains far bigger scope for us to sign-on thousands-more, particularly the youth and women whose participation in agribusiness remains low in this country.”,said John Kariuki, Bidco Africa’s head of agribusiness development.
Bidco will sign-on the small-scale farmers through exclusive off-take agreements. The agreements are contracts that will specify the crop type, standard of quality, quantity to be supplied, price per unit and the mode of payment to be used to compensate the farmers. Bidco will also provide the farmers with technical support.
“We have no minimum acreage requirements for the small-scale farmers we sign-on as contract farmers. The farmers only need to provide us with their personal details such as, farm size, their crop of interest and bank account details to be considered.”, Mr. Kariuki added.
Farmers interested in signing-on as contract farmers are asked to fill in an Expression of Interest Form available on Bidco’s website.