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    Report: Kenyan millennials and Gen Zs want more media coverage on money and empowerment

    Report: Kenyan millennials and Gen Zs want more media coverage on money and empowerment

    Former Head of Public Service Joseph Kinyua takes over as KCB Group Chairman

    Former Head of Public Service Joseph Kinyua takes over as KCB Group Chairman

    Isuzu East Africa launches special edition D-Max in honor of Eliud Kipchoge

    Isuzu East Africa launches special edition D-Max in honor of Eliud Kipchoge

    KCB Group shareholders to pocket KES 3.2 billion final dividend

    KCB Group shareholders to pocket KES 3.2 billion final dividend

    KCB Group PLC reports KES 9.8 billion profit after tax in Q1 2023

    KCB Group PLC reports KES 9.8 billion profit after tax in Q1 2023

    Kenyan students win global tech prize with hearing app

    Kenyan students win global tech prize with hearing app

    OpenAI leaders call for coordination and safety in superintelligence development

    OpenAI leaders call for coordination and safety in superintelligence development

    Google adds 8 new African countries to its Flood Hub platform

    Google adds 8 new African countries to its Flood Hub platform

    Safaricom to carry out system maintenance for 5 hours on Saturday night

    Safaricom to carry out system maintenance for 5 hours on Saturday night

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    Apple unveils 14-inch and 16-inch MacBook Pro with M2 Pro and M2 Max chips

    Apple unveils 14-inch and 16-inch MacBook Pro with M2 Pro and M2 Max chips

    Complete list of Macs that will run macOS Ventura

    Complete list of Macs that will run macOS Ventura

    Apple unleashes new MacBook Pros with powerful chips, more ports and a notch

    Apple unleashes new MacBook Pros with powerful chips, more ports and a notch

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    Lenovo X1 Carbon 5th Generation Review: just good enough

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    Google unveils new Pixel devices with foldable phone and tablet

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    Xiaomi launches Redmi Note 12 Series in Kenya, starts at KES 21,999

    TECNO announces pre-orders for its first foldable smartphone in Kenya

    TECNO announces pre-orders for its first foldable smartphone in Kenya

    Oppo Reno 8T 5G launched in Kenya for KES 49,999

    Oppo Reno 8T 5G launched in Kenya for KES 49,999

    Samsung’s Galaxy S23 Unpacked event: All you need to know

    Samsung’s Galaxy S23 Unpacked event: All you need to know

    TECNO launches PHANTOM X2 Series with retractable portrait lens in Kenya

    TECNO launches PHANTOM X2 Series with retractable portrait lens in Kenya

    Samsung’s first 2023 Galaxy A series phone comes with 5G, and it’s cheap

    Samsung’s first 2023 Galaxy A series phone comes with 5G, and it’s cheap

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Home Startups

Twiga Foods invests $10 million to farm and distribute agricultural produce to traders

Brian Murimi by Brian Murimi
May 16, 2022
in Startups
Reading Time: 2 mins read
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Twiga Foods invests $10 million to farm and distribute agricultural produce to traders
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Twiga, a B2B e-commerce food distribution network, has announced the establishment of Twiga Fresh, a new subsidiary that will harvest and distribute its own agricultural goods to traders.

Twiga stated that it has began producing horticulture products such as onions, tomatoes, and watermelons on its 650-hectare (1,606-acre) area, with a projected annual output of 150,000 tons of fresh produce. Twiga has already put $10 million into the new enterprise, which will be supported by debt from development finance organizations.

Twiga has employed technology to connect smallholder farmers with informal merchants from its inception, providing producers with access to new markets and a huge pool of clients while optimizing the food supply chain in its markets. However, Twiga claims that they have had to deal with traceability issues, stock outs, and price fluctuation along the way, making it difficult for the company to deliver on its promise of affordability and food security. Twiga Fresh, the company’s newest addition to its private label division, aims to improve production control.

Since launch, Twiga has used technology to link smallholder farmers with informal traders, giving the producers access to new markets and a large pool of clients, all while optimizing the food supply chain in its markets. However, along the way, Twiga says they have had to deal with traceability challenges, stock outs and price volatility – which have made it hard for the company to deliver on its promise of affordability and food security. With Twiga Fresh, the latest addition to its private label business, they project a better control of production.

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“The volumes for other fresh products were low because we made a decision not to scale fresh produce where we did not have traceability from a food safety standpoint,” Twiga CEO and co-founder Peter Njonjo said.

Twiga said it will continue to source some produce from partner farmers, such as bananas, where the value chains are more “established and efficient,” to service the 45,000 traders it serves each month.

Because most large-scale horticultural firms in the East African country export their crops, the company claims its farm is one of the largest commercial fresh produce establishments targeting the domestic market.

“Most of the Africa based investment in modern commercial farming has been made in the export-oriented industry over the years because of the low formality of the domestic food market. This has led to decreasing productivity of local farming, which has impacted both quality and pricing in the market,” said Njonjo.

Twiga intends to launch operations in Uganda and Tanzania soon, and is also looking into other markets in Central and West Africa.

Tags: StartupsTwiga Foods
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Brian Murimi

Brian Murimi

Brian is the founding geek at the Netick. A tech enthusiast skilled in journalism, media relations, multi-platform broadcasting, and social media. Write to him via bryanmurimi@gmail.com

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