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Transport/brokerage of fresh produce
FRM2011
#1 Posted : Monday, March 04, 2019 3:51:10 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,397
Hallo Wazuans,

I am trying to set up a relative in this business. Buying fresh produce from the farms and deliver to the city using a canter.

My questions;

1. Has anyone here ever done this business ?

2. I am told onions and carrots are safer because of a longer shelf-life as opposed to cabbages/tomatoes.

3. Is marigiti the real deal or the estate markets ? Githurai, Kawangware, Rongai, Ngara e.t.c.
Gathige
#2 Posted : Friday, March 29, 2019 2:28:26 PM
Rank: Veteran


Joined: 3/29/2011
Posts: 2,090
FRM2011 wrote:
Hallo Wazuans,

I am trying to set up a relative in this business. Buying fresh produce from the farms and deliver to the city using a canter.

My questions;

1. Has anyone here ever done this business ?

2. I am told onions and carrots are safer because of a longer shelf-life as opposed to cabbages/tomatoes.

3. Is marigiti the real deal or the estate markets ? Githurai, Kawangware, Rongai, Ngara e.t.c.



@FRM2011, The best would be to have the relative start at the bottom of the pyramid and learn the ropes. Most markets are controlled by cartels. Let him/her identify a suitable market, set up a kibanda there and learn how it works.
"Things that matter most must never be at the mercy of things that matter least." Goethe
FRM2011
#3 Posted : Friday, March 29, 2019 4:33:41 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,397
Gathige wrote:
FRM2011 wrote:
Hallo Wazuans,

I am trying to set up a relative in this business. Buying fresh produce from the farms and deliver to the city using a canter.

My questions;

1. Has anyone here ever done this business ?

2. I am told onions and carrots are safer because of a longer shelf-life as opposed to cabbages/tomatoes.

3. Is marigiti the real deal or the estate markets ? Githurai, Kawangware, Rongai, Ngara e.t.c.



@FRM2011, The best would be to have the relative start at the bottom of the pyramid and learn the ropes. Most markets are controlled by cartels. Let him/her identify a suitable market, set up a kibanda there and learn how it works.



He started like you said. Interestingly, within the estates, there are no cartels. He is doing very well currently delivering potatoes to the city. They are in short supply and prices have spiked.
Chaka
#4 Posted : Friday, March 29, 2019 6:11:00 PM
Rank: Elder


Joined: 2/16/2007
Posts: 2,102
Nice...does he have a canter or he hires transport?

FRM2011 wrote:

He started like you said. Interestingly, within the estates, there are no cartels. He is doing very well currently delivering potatoes to the city. They are in short supply and prices have spiked.

Gathige
#5 Posted : Friday, March 29, 2019 7:24:58 PM
Rank: Veteran


Joined: 3/29/2011
Posts: 2,090
FRM2011 wrote:
Gathige wrote:
FRM2011 wrote:
Hallo Wazuans,

I am trying to set up a relative in this business. Buying fresh produce from the farms and deliver to the city using a canter.

My questions;

1. Has anyone here ever done this business ?

2. I am told onions and carrots are safer because of a longer shelf-life as opposed to cabbages/tomatoes.

3. Is marigiti the real deal or the estate markets ? Githurai, Kawangware, Rongai, Ngara e.t.c.



@FRM2011, The best would be to have the relative start at the bottom of the pyramid and learn the ropes. Most markets are controlled by cartels. Let him/her identify a suitable market, set up a kibanda there and learn how it works.



He started like you said. Interestingly, within the estates, there are no cartels. He is doing very well currently delivering potatoes to the city. They are in short supply and prices have spiked.



In that case,sky is the limit. Was at a market over the weekend and a tomato was retailing at 15 bob a piece. I chatted a green maize guy who told me he sources from Malawi/TZ border and was amazed.
"Things that matter most must never be at the mercy of things that matter least." Goethe
Chaka
#6 Posted : Saturday, March 30, 2019 11:05:48 AM
Rank: Elder


Joined: 2/16/2007
Posts: 2,102
The hustles guys do cannot be taught in a classroom..Applause Applause
Gathige wrote:

In that case,sky is the limit. Was at a market over the weekend and a tomato was retailing at 15 bob a piece. I chatted a green maize guy who told me he sources from Malawi/TZ border and was amazed.

FRM2011
#7 Posted : Saturday, March 30, 2019 5:21:59 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,397
Chaka wrote:
Nice...does he have a canter or he hires transport?

FRM2011 wrote:

He started like you said. Interestingly, within the estates, there are no cartels. He is doing very well currently delivering potatoes to the city. They are in short supply and prices have spiked.



Own canter but bought on credit. The numbers have shocked me. The supply chain of foodstuffs in Kenya is so messed up. The transporter/broker sits at the top. The producer sits at the bottom.
Gathige
#8 Posted : Saturday, March 30, 2019 6:27:55 PM
Rank: Veteran


Joined: 3/29/2011
Posts: 2,090
FRM2011 wrote:
Chaka wrote:
Nice...does he have a canter or he hires transport?

FRM2011 wrote:

He started like you said. Interestingly, within the estates, there are no cartels. He is doing very well currently delivering potatoes to the city. They are in short supply and prices have spiked.



Own canter but bought on credit. The numbers have shocked me. The supply chain of foodstuffs in Kenya is so messed up. The transporter/broker sits at the top. The producer sits at the bottom.


Very true. Twiga foods ( twiga.ke) is trying to revolutionalize these supply's chain and is likely to be the Mpesa of groceries retail in Ke. It isn't one very lucrative sector with good returns. Just imagine almost every household uses either an onion or a tomato in any one day making anyone along that supply chain a beneficiary. The trick is always how to reach the consumer fastest and reducing the number of agents/ brokers along the chain.
"Things that matter most must never be at the mercy of things that matter least." Goethe
Chaka
#9 Posted : Sunday, March 31, 2019 8:59:49 AM
Rank: Elder


Joined: 2/16/2007
Posts: 2,102
Correct..I read somewhere that if farming was lucrative,all brokers would be farmers..How did your relative manage to get a loan for the canter?Lenders insist on checking cash flow before lending ,i,e unless he was doing something else before..
FRM2011 wrote:

Own canter but bought on credit. The numbers have shocked me. The supply chain of foodstuffs in Kenya is so messed up. The transporter/broker sits at the top. The producer sits at the bottom.

Eavns
#10 Posted : Sunday, March 31, 2019 9:30:53 AM
Rank: New-farer


Joined: 9/25/2017
Posts: 45
This brokers are so bad to the extent that if you load your produce on a lorry and take them to Githurai for example I hear you can't sell anything without their intervention,your produce will lot as people watch. I'm hoping Twiga foods will be able eliminate them from the chain.
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