Peacock agri tech ais 2021 - one year on template[2] - read-only

Peacock agri tech ais 2021 - one year on template[2] - read-only

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  1 Business opportunities inthe livestock sector in Kenya Dr Christie Peacock CBE Founder & Chairman Sidai Africa Ltd
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  Opportunity from growingdemand for animal products but low productivity of sector  Increase in demand for meat, milk and eggs from rapidly growing urban population  Large and growing livestock population valued at $4.4bn  Largest dairy herd in east and southern Africa  Commercial poultry farming growing rapidly with an urgent need for sector to become more efficient and competitive But sector suffers from….  Low productivity, big gap between actual and potential yield, unstable farm incomes, inefficient input and output market linkages  Limited interventions to improve sustainability of industry, where UK have comparative advantage (‘000’s) Figure 1: Kenyan livestock population 2009* Bee hives Goats 31,827 Pigs Donkeys Cattle 27,740 Chicken Sheep Camels 17,129 17,467 *Source: KNBS, Kenya Population and Housing Census, Vol. II, Table 11; unpublished records, Animal Production Division, MLD ** Benhke and Muthami (2011) 2,971 1,832 334 1,842 2
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  3 Key facts • 300,000+regular customers • 2,500 stockists supplied & 50 distributors • 25 Sidai Branded Products in market • Regular farmer training • $6m commercial capital raised • Over 8m livestock vaccinated • Tablet-based field staff/CRM management system Sidai is a UK company operating as an input distribution and service delivery company focused on Herd Health (vaccines, feeds & hygiene) increasing the productivity and profitability of livestock keeping Addressing 3 pillars Access to Quality Products Knowledge Devenish Nutrition (UK) invested in Sidai in 2019 and now supplies premixes and technical support to support manufacturing of Sidai feeds Sidai Beef Mineral Sidai Dewormer (Albendazole 10%) Sidai Dewormer (Levamisole 1.5% B.P. & Oxyclozanide 3% B.P.) Sidai Dairy Mineral Sidai Dewormer (Albendazole 2.5%) Sidai Dewormer (Levamisole 3% B.P. & Oxyclozanide 6% B.P.) Sidai Poultry Vitamins Sidai Mineral Block Sidai Milking Salve 6 Sidai Ultradip™ Acaracide Sidai Camel Mineral Sidai Products www.sidai.com
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  Market Potential –Input Market  The agricultural input market in Kenya has a value of ~US$1 billion Most valuable and fast-growing product categories  Animal feed and minerals ($350m)  Veterinary pharmaceuticals ($50m)  Crop Protection Products ($150-$200m)  Fertilizer ($300m+) • Vaccines potential ~$200m Urgent need for the ‘next generation’ of greener more sustainable products to enter Kenya market Category US$ million Source Feeds 320 Unga Feeds Minerals 20 Industry research Animal Health Products 50 Industry research AI 11 Makoni, Hamudikuwand a & Chatikobo (2015) Vaccines 13 Makoni et al (2015) Crop Protection Products 158 Pest Control Products Board Seeds 60 Kenya Markets Trust Fertilizer (private sector) 325 Best estimate* Total 947 Table 1: Agricultural Inputs Market in Kenya 4
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  Technology for production,food safety & sustainability • Farm assurance and food safety schemes • Pharmaceutical quality testing • Simple, affordable antibiotic residue tests (meat, milk) • Animal feed quality tests • Packaging improvements • Solar milk chillers • Solar cold chain technology and monitoring systems • Small milking units • Housing technology • Cheap animal ID and functional data recording systems (for traceability, trade, insurance) • Cheap environmental & animal sensors & monitoring systems • Telemedicine innovation • Farmer-market digital platforms • Farmer data and loyalty programmes systems • Affordable point of care disease diagnostics • Multivalent, thermostable, vaccines + • Disinfectant & hygiene products • New tick control & internal parasite products • Smaller cattle breeds (Jersey?) • Dual-purpose lower input chickens • Dairy goats •Sustainability •Biomass enhancement •Insect protein & other novel feeds •Commercial forage production and conservation systems inc irrigated forage •Quality - nutrient enrichment •Pro/pre-biotics (antibiotic free production) •Omega-3 enrichment (boost human health) •Organic selenium (boost human immunity) •Fat-coated urea (soya substitute, safer drought supplements etc) •Drought feeds Animal Nutrition Animal Health & Genetics Supply chain integrity & post-harvest processing Precision farming 5
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  How to enterthe Kenyan smallholder market? 6 4. Stimulate Demand Marketing (radio, social media) and Farmer training (groups, co-ops & online) NB Foreign companies consistently underestimate the investment required in marketing. Need to take long-term view of returns Sidai able to help market entry [email protected] 3. Supply of products Local networks and relationships are key, investment in local representation pays off Prices must be competitive Pack sizes/products specs right for market Market entry incentives to retailers and distributors Technical backstopping essential 2. Market positioning Unique product at premium price for niche, more commercial, market? or Product for mass market (competing against Chinese, Indian prices) 1. Understand the market Customer needs, price sensitivity Competitive landscape Regulatory environment