Kenya: Pwani Feeds
This case study describes the success story of Pwani Feeds, a leading feeds manufacturing company in Kenya. Shem Mwaura, the CEO of Pwani Feeds, is a Kenyan entrepreneur. Before establishing Pwani Feeds he worked in a mill and set up groceries and cereal shops with his wife.
In 1995 he resigned from his job to open his own business as an egg and feeds trader in Thika, Central Kenya northern of Nairobi (see map below).
The original business model was based on two ideas: Firstly, collecting eggs from local farmers and selling them on the market in Mombasa. Secondly, at the same time supplying these farmers with feeds. After three years Mr. Mwaura extended his business by producing and selling his own animal and poultry feeds. A factory was set up in Mombasa and feeds production experts were recruited to develop high performance feeds.
Pwani Feeds built up egg collection centres in the Coastal Region and developed a unique ‘Delivery Route Business Model’ for the Central Province. Pwani guaranteed farmers the same price as other middlemen, while providing additional services for free. The farmers benefitted mostly from Pwani Feeds’ direct delivery of feeds, which saved them time and transport costs. Furthermore advisory services (record keeping, animal health care, demonstration farm) were provided for free. In 2006 the business model was expanded to fattening bulls for sale.
The socio-economic value of this case lies mostly in the creation of 300 jobs in two factories, thereby alleviating poverty as well as improving gender equality because 70% of the Kenyan poultry farmers are women.
Please find more pictures of this case in the Gallery.
Find out more about Kenya and Kenyan agriculture: http://www.fao.org/countryprofiles/index.asp?lang=en&ISO3=ken