FoodFlow Impact Report 2021

SHIFTING THE PARADIGM FOR EAST AFRICA’S FOOD SYSTEM
IMPACT REPORT 2021
A venture building
program by:
Our partners:

Dearreader,
It is our pleasure to present the FoodFlow 2021 impact report, that details the challenges faced, progress made and
impact created. Woven into our report, we showcase our ventures and their impact on food systems in East Africa.
Our ambition? To showcase 0% post-harvest food loss in horticultural value chains of avocados, mangoes, and
green beans. We have built an ecosystem of interlinked, scalable, and sustainable business interventions that prove
0% food loss can be a reality in Africa. If we can achieve this in Kenya, what of the other 54 African countries? We
need to continue our effort, grow, scale the ventures and expand across value chains in the continent.
In the face of a global pandemic, social unrest, resource distribution woes, and policy shifts concerning climate
change, the FoodFlow Program continues to play a critical role in creating opportunities across the Food Systems
value chain in Kenya.
Despite a year, characterized by uncertainty and disruption, we moved forward with cautious optimism and were able
to sustain our operations, retain our program and venture staff as well as support our engagements with smallholder
farmers and suppliers. With support from the local government, our efforts are now classified under essential services,
a testament to the value we bring to local communities in Kenya.
At the end of this report, you will find a sneak preview of what we will be up to in 2022.
We take this opportunity to thank our stakeholders: The FoodFlow team, ventures, partners, funders, and ecosystem
conveners. The report invites engagement and questions. Contact us to discuss how we can work together.
The Enviu team
Stay tuned and subscribe: foodflow.enviu.org linkedin.com/company/FoodFlow Subscribe to our newsletter here
1

TABLE OF CONTENTS
01
INTRODUCTION
P3 – P6
OUR THEORY OF
CHANGE
P7 – P9
02
03
VENTURES
P10-P23
COLD STORAGE P13-P15
LOOKING
FORWARD
P24 – P25
04
05
TOGETHER IS
MORE
P27
OUR TEAM
P26
06
MARKET LINKAGE
P16-P18
PROCESSING
P19-P21
URBAN DISTRIBUTION
P22-P24
2

INTRODUCTION
“For every mango you eat,
one has been wasted.”
- Ellen MacArthur Foundation
3

THE POTENTIAL OF A SUSTAINABLE,
0% POST HARVEST LOSS FOOD SYSTEM
INTRODUCTION
14 million
people, 1/3rd of the
Kenyan population is
food insecure
40-50%
of food produced is lost
due to supply chain
inefficiencies
ELIMINATING POST
HARVEST FOOD-LOSS IS
KEY TO SOLVING
THESE ISSUES.
BY INNOVATING THE
SUPPLY-CHAIN WE CAN…
INCREASE AMOUNT OF FOOD
flowing to markets, improving
food security
ENSURE FAIR VALUE
distribution across actors
INCREASE INCOME AND
economic livelihood of
smallholder farmers
90% of all food is produced
by smallholder farmers
on average living on
$1.4 per day
PREVENT NEGATIVE IMPACT
on climate change by saving
resources such as water and
avoid GHG emissions
4

THE MAJORITY OF FOOD IS
LOST POST-HARVEST
INTRODUCTION
• Long trading chain which is dominated by brokers
• Transport damages
• No cold storage along the chain & no financial products available to stakeholders in the chain
39%
37%
20%
5%
Production
Handling & Storage
Distribution & Market
Consumption
• Lack of professional farming practices & regional market information
5

INTRODUCTION
WE ARE SHOWCASING THAT A 0%
FOOD LOSS CHAIN IS POSSIBLE
We believe smart business innovations are the answer to
making horticultural value chains more sustainable.
By storing fruits in our cold rooms, finding buyers through
market linkage activities and working with a processor to
offtake the rejects we have managed to offtake and use
100% of the farmers’ produce - increasing food security
and farmer resiliency.
6

THEORY OF CHANGE
OUR GOAL IS TO
DRIVE SYSTEMIC
CHANGE
WE’RE DRIVING THE PROFESSIONALIZATION
OF FOOD CHAINS. IMPROVING THE VALUE
CHAIN WILL LEAD TO…
100% RESILIENT
FARMERS
Climate change
adaptation and mitigation
100% ACCESS
TO FRUITS & VEGETABLES
FOR CONSUMERS
FAIR DISTRIBUTION
OF VALUE ALONG ALL
ACTORS IN THE CHAIN
s
Urban Distribution
7

THEORY OF CHANGE
WE BELIEVE BUILDING VENTURES IS KEY
TO DRIVE MARKET CHANGE AND BUILD A SUSTAINABLE SYSTEM
8

THEORY OF CHANGE
WE’RE ACTIVATING ACTORS ALONG THE
CHAIN TO AT DIFFERENT LEVELS TO MOVE THE SYSTEM FORWARD
processing
40% income
increase for
farmers
~99% reduction
of post harvest
food loss
Formal employment;
Better opportunities
for youth and women
Currently working together with strong impact
focused partners to amplify our impact
Players active in the larger market starting to
acknowledge us, take note, want to
collaborate – start of market change
Transparency of
value distribution
9

THE SOLUTIONS WE HAVE BUILT ALONG THE
CHAIN OF MANGOS, AVOCADOS, BANANAS & GREEN BEANS,
REDUCING AND REUSING LOSSES
AGGREGATION
& SORTING
TRANSPORT &
WHOLESALE SALES
SALES TO
RETAIL MARKET
VENTURES
SokoFresh: Cold
storage as a service
• Type: Ideation
• Status: Scaling
• In a nutshell:
Providing farmers and
aggregators with access
to solar powered cold
storage for professional
produce aggregation
Processing as
a service
• Type: Replication
• Status: Piloting
• In a nutshell:
Solar powered processing
of unsold, 2 nd grade or
reject produce to
increase shelf life and
prevent losses.
SokoLink: Market
linkage
• Type: Ideation
• Status: Piloting
• In a nutshell:
Enabling farmer – buyer
direct linkages through a
tech platform, seamlessly
integrating smallholders in
Kenya into professional
value chains
Taimba: Urban
distribution
• Type: Supporting
• Status: Scaling
• In a nutshell:
Delivering produce from
farmers directly to mama
mboga’s and local retail
10

THE VENTURES WE BUILD WILL CONTINUE
TO GROW AND EXPAND, ENSURING THAT IMPACT CONTINUES TO MULTIPLY
~2034
Full Impact of the
program when scaled
100,000+
200,000+
1.3 billion+ USD
10.000+
VENTURES
2024
Impact of showcase
continuing
11,500
3000
4 million USD
2021 540 141 187,000 USD
1200
380
2020
24 3
4000 USD
14
Baseline
start of FoodFlow program
0 0 0 USD
0
# Smallholder farmers
with a 20% income increase
Tons of vegetables
and fruits loss reduced and
traded
Financial benefit
for society
People employed
/ jobs provided
11

VENTURE UPDATES
12

COLD STORAGE
MAINTAINING PRODUCE FRESHNESS THROUGH
A SOLAR POWERED COOLING SERVICE
BUSINESS STAGE
Scaling
FOUNDED
2019
# OF COLD STORAGES
9 storages
COLD STORAGE
HOW IT WORKS
Cold Storage extends shelf-life,
eliminates produce weight loss and
enables bulk aggregation over
several days. SokoFresh’s
innovative and circular business
model unlocks the benefits of cold
storage at first mile through a Cold
Storage As A Service offering to
small holder farmers and buyers.
This service drastically reduces
post harvest losses in horticultural
produce.
IMPACT AMBITION IN 3 YEARS
• 190 cold storages that can
reach over 152,000 farmers
• Storing 500,000 kg produce
at any single time
• Offsetting 121 tons of CO 2 eq
per year through the use of
renewable energy only
• Increase farmer income by
40%
FUNDING RAISED
$1.1 million
VALUATION
$3 million
ADDITIONAL BENEFITS
• Fair value chains in rural
communities.
• Providing small holder farmers
with access to climate-smart
innovations that will empower
their livelihoods.
13

COLD STORAGE
2019
Feasibility study
SokoFresh
Incorporated
2020
NOV 3 rd storage
added + testing
market linkage
2021
JAN - OCT First
2 cold storages
piloted with bus
model
1,000
FARMERS ONBOARDED
SEPT 1,000 farmers
onboarded + over 20
off-takers engaged
JUNE Active in
avocado, mango
& green beans
OCT 141 tons of
produce stored
cold + Started in
bananas
NOV 6 additional
storages arrived
2022
Secure first
equity round
Add 21 cold
hubs
2023
Grow to 3,000
farmers
Add 50 cold
hubs
Access blended
finance
Click here to watch the video made by
PREO/UKAID!
14

“This piece of land is one acre where I live with my
daughter and my two children. I grow maize, beans,
bananas, and avocado. Avocado occupies the largest
area because it gives me good returns when I sell the
harvest. I have about 15 trees and still planting more.
Out of the 15, I harvest from 10. The other five are not
yet mature.”
ESTHER IS A SMALLHOLDER
FARMER IN MURANG’A COUNTY
COLD STORAGE
“Things have really changed because
SokoFresh’s price is about four times
more than the middleman.
SokoFresh buys at 65 a kilo and they are very
transparent. A kilo holds an average of 5 fruits, and I
harvest an average of 600 kilos from the trees in a
season. Brokers used to buy avocado fruits at 3
shillings per piece, we barely made anything out of the
crop. SokoFresh also conducts frequent training
sessions where we learn how to take care of crops to
get quality fruit.”
“I now carry out activities that were previously
challenging. From the proceeds, I buy fertilizer to use
on maize, and purchase other farm inputs. I also assist
other family members when they have financial
challenges.”
“I want to plant and graft more avocado trees, sell
more volumes to SokoFresh so that I earn more to
fend for myself and my family better.”
15 13

MARKET LINKAGE
MARKET LINKAGE
A DIGITAL MARKET LINKAGE PLATFORM THAT
CONNECTS SMALL FARMERS DIRECTLY TO BUYERS
HOW IT WORKS
The market linkage platform is an
online marketplace that connects
small holder farmers to buyers
through efficient operations and
ensuring fair distribution of income
along the supply chain. This results
in farmers earning more income,
reduces inefficiencies in the supply
chain, and drastically reduces food
loss.
IMPACT AMBITION IN 3 YEARS
• Trading 400,000 tons of
produce and connecting 34,000
farms to fair markets,
• Realizing increase in income of
up to 50%.
• Save 152,000 tons of produce
from ending up in landfill, which
means over 91,000 tons of
CO 2 eq avoided
BUSINESS STAGE
Growth
FOUNDED
2021
KGS OF PRODUCE TRADED
170,000 KGS
$ OF PRODUCE TRADED
70,000 USD
ADDITIONAL BENEFITS
In addition to small holder farmers,
the platform supports the growth of
entrepreneurship by creating jobs
for women and youth.
It will also provide add-on services
to the agricultural industry by
providing credit services, input
support, trainings etc. through its
platform partners.
16

MARKET LINKAGE
2020
DEC First pilot
trade with
avocado’s
executed
2021
JULY Trialed
and entered the
banana value
chain
JUNE Food loss
reduced from an
average of 40% to
2% on every trade
OCT 90 tons of
produce traded
OCT Entered 4 value
chains: Avocados,
mangoes, bananas,
and green beans
NOV Tech
platform launched
internally
2022
DEC Raised initial
250K to build
concept tested
USSD solution
available to
access platform
Secure 200k
EUR in funding
Phase 2 Technology
solution launched for
third party use
2023
Concept at 100%
commercial
viability
17

MARKET LINKAGE
“I started working with SokoFresh in 2019. I was
approached by a staff member when they had just started
operations in Muruka. After getting registered as a farmer,
over time I began assisting him to source avocados from
farmers, then I was onboarded as an agent too. I scout for
fruit before harvesting to make sure we meet the quality
and quantity of order. I work closely with farmers,
harvesters, and the company. I love this work, I get
decently paid for it.
I want to get more farmers onboard because we are always
getting enquiries from new farmers. Onboarded farmers are
always looking forward to the next purchase by SokoFresh
because of their good price and transparency. SokoFresh
accounts for every gram unlike brokers who use false
weights A farmer who has tasted of SokoFresh never looks
back.
I’m also glad that now I get to sell all produce including
second grade produce, which previously went to waste.
Even the price they offer for second grade used for
processing is better than broker’s price for first grade. I live
with my 6 children and my wife on the farm. All my children
are over 14 years of age.
Due to the high returns, I was able to transfer
my youngest child to a private school, and
comfortably afford the fees.
I have learnt a lot about avocado diseases and pests and
how to manage them organically. I now add manure to the
fruit trees, something that I previously didn’t do. I’m a better
farmer because of the training.”
PAUL IS A SMALLHOLDER FARMER AND
AN AGENT FOR SOKOFRESH 18 13

PROCESSING
FIRST MILE SOLAR POWERED PROCESSING AS A
SERVICE TURNING WASTE TO VALUE
BUSINESS STAGE
Ideation
FOUNDED
2021
CROPS PROCESSED
Avocados
PROCESSING
HOW IT WORKS
Processing of unsold, 2 nd grade or reject
produce ensures that no produce goes to
waste, and that value is added through
the processing activity. Our processing
as a service concept, at farmgate,
enables farmers to get the maximum
value for their reject produce, and lowers
the threshold for farmers and farmer
groups to deliver left-over harvest to our
local processing sites. This service is the
final link to reduce post-harvest losses
in horticultural produce to 0% and
provides an increased and more
consistent income for the farmer.
IMPACT AMBITION IN 3 YEARS
• Off taking all grades of
rejects as well as waste
produce, truly 0% food loss.
• Additional revenue stream for
farmers, increase income
with another ~40%
• Over 200 women employed
into a male dominated value
chain by forming women run
and led aggregation sites
ADDITIONAL BENEFITS
• Shortens the value chain
• Builds credit capacity through recorded
consistent income.
• More formal employment opportunities
through establishing of the processing
site at village level, with a focus on
inclusion and empowering of women
• Easier produce traceability since
processing happens at the local level
19

PROCESSING
2021
APRIL Start
ideation and
planning of first
facility
5000 liter of
oil pressed
Oil pressed
equipment Purchased /
arrival of first equipment
1200 trained
farmers
Processing as a
service/ farmer preprocessing
Business model
validated
2022
Processing venture fully
registered as a business
Become active
in an additional
value chain
2023
Secure additional
(grant) funding
Provide 200 female farmers
with jobs at predominantly
female run processing and
aggregation sites
Reach unit
profitability
Scale to
new region
20

Meet James Kamau! James engages with different offtakers
within his region and helps them identify and source
from other small holder farmers.
We met James at one of our farmer engagement sessions,
where we pitched to farmers the benefits of value addition to
their grade 2,3 produce otherwise known as rejects within the
supply value chain. This concept resonated with James and he
become part of the first group of participants in our pilot!
PROCESSING
“In my work as a farmer lead, I visit so many farmers like me,
whose livehood depends on what they can sell from their
farms. I also get to see the amount of produce that is rejected
which results to us either selling at throw away prices to
whichever offtaker we can get or just discarding it. This has
always broken my heart.
When I attended the Sokofresh farmer engagement session
on value addition and they explained to us:
By taking a couple of hours out of our days and
dedicating it towards drying our rejected
avocado produce we can add value and double
the amount of money we sell the avocados for.
This seemed very doable because it entailed simple tasks
such as harvesting, ripening, washing, slicing and drying the
produce through naturally available solar.
I thought to myself, wow this is great! I also thought that as a
farmer lead, I could help the more elderly farmers who are not
capable of taking part in these pre-processing activities by
offering my premises and drying their produce on their behalf
for a small fee. This could be a great opportunity for other
young farmers as well.”
JAMES IS AN AVOCADO SMALLHOLDER FARMER & A
LEAD FARMER IN HIS COMMUNITY IN EMBU, KARURUMO 21

URBAN DISTRIBUTION
URBAN DISTRIBUTION
A MOBILE-BASED CASHLESS PLATFORM THAT
CONNECTS FARMERS DIRECTLY TO RETAILERS
HOW IT WORKS
The Taimba platform simplifies the
farm to market business models for
farmers by sourcing directly from
rural small-scale farmers and
creating direct linkages to urban
markets, such as mama mboga’s,
using a B2B platform. This model
removes the middlemen and returns
a larger share of the value back to
the farmer.
IMPACT CREATED FOR MAMA MBOGA’S
• 14% savings on purchase of
produce
• On average 3.4hrs of their time
saved
• 24% increase in their revenues
BUSINESS STAGE
Scaling support
FOUNDED
2017
MAMA MBOGA’S SERVED
634
ENVIU & TAIMBA
Our collaboration focused on support
in scaling Taimba’s operations and
making them sustainable, by
integrating cold storage into their
trading chain. This led to the reduction
of food loss, an increase in income for
farmers and time saved for mama
mboga’s. After finalizing the project,
SokoFresh and Taimba are still
actively trading.
22

Brian Ruto, part of the Taimba team, delivers produce to
Esther, one of the local food sellers known as a mama
mboga.
URBAN DISTRIBUTION
“I source all my fruits and vegetables from Taimba,” Esther
says confidently. “You can confirm with Ruto, I always buy
from him. Si ndio Ruto (Is it true Ruto)?”
Brian Ruto confirms with a smile. “I am a sales
representative with Taimba in charge of the Kiambu Route,
of which Esther Njeri is one of my good customers.”
“I buy from Taimba because they are fairly priced and bring
to us produce that is of good quality,” Esther continues.
“The most important thing is that they deliver on time. I no
longer have to worry about waking up early in the wee
hours of the morning to go the market myself to make
direct purchases and that time is now better-used bonding
with my family.”
“I am grateful for health and a job at Taimba at a time
when things are difficult for many people across Kenya,
and that is why I continue to serve with a smile even when
business is not very forthcoming,” says Brian. “My hope for
the future is that this pandemic unites us as a people
across the globe..”
Esther is also very hopeful for the future: “This current
situation is not permanent and I believe it shall pass. My
ambition is that if my business goes back to normal, I can
start saving again and enable my children to go to a better
school. My husband and I are also working towards
purchasing a plot so that we can eventually settle in our
own home.”
23

LOOKING FORWARD
24

IN 2022, WE’RE GOING TO…
LOOKING FORWARD
…BRING OUR
EXISTING VENTURES
A LEVEL HIGHER
Cold Storage is set to close its first
equity round in 2022. This will be the
start of rapid expansion of
SokoFresh!
Market Linkage has moved out of
proof of concept and is now ready to
scale as a full-fledged business
intervention of SokoFresh. We will
need to raise funds for scaling.
…EXPLORE WHAT’S
NEXT FOR
FOODFLOW
We are keen to lengthen the runway
of the current FoodFlow 0% Post-
Harvest-Loss program so processing
has another year to grow, and
perhaps start another venture!
Replicate the 0% Post-Harvest-
Loss vision to a second East African
country, and kick off a similar impact
program there
We are currently preparing to spin
off Processing as its own separate
venture, apart from SokoFresh.
Focus more on the farmer side, at
what’s happening ON the farm, and
prepare a new programmatic focus
that looks at increasing resiliency for
farmers in a planet positive way
25

OUR TEAM
MEET THE
FOODFLOW
DREAM TEAM!
The FoodFlow team exists of a
energetic group of professionals
that are driven to make the food
sector more sustainable.
Together, we have what it takes
to launch disrupting start-ups:
analytical minds, rich experience
in business model validation and
start-ups, deep knowledge of
and network in the food, farming
and circular economy and of
course… the hands-on
entrepreneurial spirit.
Terry Kuria
Finance Lead
Michiel Elich
Enviu Executive
Board
Ngina Kabicho
Venture Builder
Associate
Eveline Jansen
Program Manager
of FoodFlow
Hope Bii Njuguna
Program
Associate
Paul vd Linden
Director Enviu
East Africa
Ruth Wanjiku
Export
Operations
Arpana Philip
Sr. Venture
Builder
Rachael Kirui
Content
Creator
Lynn Bonitor
Venture
Builder
Nava Verboom
Marketing &
Communications
26

TOGETHER IS MORE
WE WOULD LIKE TO THANK OUR PARTNERS
FOR THEIR CONSTRUCTIVE COLLABORATION
SUPPORTING PARTNERS
PROJECT AND BUSINESS PARTNERS
27

“To change something,
BUILD A NEW MODEL
that makes the existing
model obsolete.”
-Buckminster Fuller
Contact us for more information:
Eveline Jansen
Program Manager FoodFlow
eveline@enviu.org
Website: foodflow.enviu.org
LinkedIn: FoodFlow (a program by Enviu)
Subscribe to our newsletter here
A venture building
program by: