Cornflakes made in Nigeria – How to link Kellogg’s with smallholder farmers in Northern

Nigeria

Background Information

• Saro Agrosciences Ltd is a leading marketer and distributor of Agro-input-CPP, Seed Fertilizer and Farm Machinery

• Our strategic direction is to empower 300,000 farmers with superior agro-input and knowledge that will enable them increase their yield and livelihood in a sustainable manner

• By so doing, we intend to strengthen the bond between us and the farmer that have been our dependable partner over the years

• The “Saro Golden Maize Club" provides the platform for actualizing this objectives

Saro Contract Farming

• The Saro contract farming model provides an agreement between Saro and the farmers to produce and supply quality maize that will serve as the feed stock for production of KelloggsCornflakes

• Member farmers must have undergone the GAP and FBS training of GIZ

SAS Management Accounts – Feb 2015

Value Proposition to the Farmer• Provision/access of total input of production-Certified

seeds, herbicides, insecticides, fungicides and fertilizers

• Increase in yield from national average of about 1.8-2 ton per hectare to 5-8 tons per hectare

• Increase farmers income and livelihood

• Extension services on Good Agricultural Practices and Financial/Business management (FBS)- delivered by our partner GIZ

• Guaranteed and fixed off-take prices that eliminates the risk of price fluctuations and market volatility

• Reduce exploitation by middle men

Value Proposition to Kelloggs &

Saro• Kelloggs

– Uninterrupted and regular flow of quality feed stock for production of cornflakes

– Protection from fluctuation/volatile market prices

– Quality assurance and tracibility

– Long term planning

– Dedicated supplier base

• Saro

– Generate good will for the organization

– Market access

– New product development and entrenchment

SAS Management Accounts – Feb 2015

Economies of Production

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