Meet the producers
Homegrown Kenya
Homegrown Kenya Ltd is a large-scale plantation that grows and processes flowers and vegetables for export. It also buys vegetables from local outgrowers for processing and export. Homegrown was certified to supply Fairtrade flowers in 2007 and had their certificate extended to export Fairtrade vegetables under new standards in April 2010.
Outgrowers are small-scale farmers who have mostly organised themselves into self-help groups or farmers’ associations but don’t have the systems and structures in place to be certified under the Fairtrade standards for small producer organisations. The new standard enables outgrower groups to access the benefits of Fairtrade by supplying Fairtrade certified plantations.
Homegrown and Fairtrade
After certification for Fairtrade flowers in 2007, Homegrown’s customers now include the Co-op, Marks & Spencer, Next, and Sainsbury’s. In April 2010, Homegrown became certified to supply Fairtrade vegetables (fine beans, boston beans, extra fine beans, runner beans, garden peas and mangetout) grown on its own farms and sourced from outgrowers. Initially Homegrown will supply Fairtrade buyers with boston beans, fine beans and extra fine beans produced exclusively by its outgrower partners.
This development comes as a result of a review of Fairtrade standards for vegetables. Until September 2009, suppliers of Fairtrade vegetables had to meet the Fairtrade standards for small producer organisations. This meant that most vegetables producers from Africa weren’t eligible for certification as the producer models in African supply chains didn’t fit with Fairtrade standards.
Because export produce has to meet strict rules for freshness and quality, many vegetable farmers in Africa either sell their produce to larger plantations that can invest in the necessary equipment and certifications or sell directly to exporters. Many of these producers are small-scale outgrowers who are either not organised into groups or whose structure doesn’t meet the Fairtrade criteria for small producer organisations. To overcome this, Fairtrade has developed a new standard to allow outgrowers into the Fairtrade system and access to the benefits of Fairtrade. Plantations must source a percentage of vegetables from outgrowers, starting with 10% in their first year of certification for vegetables, 20% in the second, increasing the percentage in line with an agreed sourcing plan.
Plantations must support outgrowers in forming self-help groups if they haven’t already done so. Over time, plantations must provide support and training so outgrowers can set up the systems and structures necessary to become certified in their own right under the Fairtrade standards for small producer organisations.
Outgrowers
Homegrown buys vegetables from small scale farmers from 10 areas in the higher rainfall areas in Kenya. 23 groups in Mweiga and 11 in Meru have been identified to supply Fairtrade beans. Each group has a membership of between 2 and 20 farmers, representing a total of 343 farmers. Farms are up to 5 acres (2ha) and use family labour and seasonal casual labour. Homegrown gives the groups the necessary technical support and training to ensure their produce is grown to the high standards demanded by their customers. This includes providing seeds and chemicals at subsidised prices.
Stephen Kairu is a member of Mwamba outgrowers, a group of 10 farmers from the Mweiga group formed in March 2008. He lives with his wife Mercy Nyambura, and two daughters as well as his mother and sister and her two children. His daughters are Joan Wanjiri, 4, who goes to nursery and Mary Wangechi, 7, who attends primary school. Stephen rents four acres (1.6ha) of land and grows vegetables on three of them. His main cash crops are fine beans, garden peas, and baby corn, which is planted between the fine beans to maximise land use. Maize, bananas, cabbage, and spinach are grown for home consumption and cows are kept for their milk.
The global recession has seriously affected farmers’ incomes with dramatic rises in the cost of food and farm inputs like fertilisers. But Stephen cites the lack of water as the major problem for farmers and the wider community. They get their water from the Ewaso Nyiro River which flows down from Mt Kenya to water the dry plains that stretch east from the Great Rift Valley. In 2009, the river dried up when the rainy season from March to June produced very little rain, causing severe drought in the region. However, the traditional long rains started early in 2010 and there is now more than enough water for production.
Stephen says the farmers’ main problems are caused by their production being affected by unfavourable weather and changes in consumer demand that make their markets unstable, create insecurity and make their incomes unpredictable. He says: ‘If there were no financial difficulties we would spend money on development and we would be trying to develop the community around here.’
Stephen dreams of owning his own farm and a better life for his children. Primary education is now free but few children continue into secondary education because it is expensive. He says: ‘I would really like to invest in my children, particularly in their education. I would really like to give them the best education possible. And then they can go to greater heights.’
The additional benefits of selling their vegetables on Fairtrade terms can help outgrowers like Stephen invest in their families and communities. He has this message for UK vegetable shoppers: ‘The vegetables that we are growing are very healthy. We use fewer chemicals because that is best for human consumption.’
The benefits of Fairtrade
Fairtrade certification for Homegrown flower farms and packhouses ensures the workers have the right to core labour standards including the right to join a trade union, the right to collective bargaining, freedom from discrimination, decent employment conditions, a safe working environment, and no forced labour or child labour. The workers also receive the Fairtrade premium, an additional sum for them to invest in projects of their choice to improve the quality of their lives and invest in their futures.
Under the Fairtrade vegetable certification, the benefits to outgrowers include:
• payment of at least the Fairtrade guaranteed minimum price, which is calculated to cover costs of sustainable production
• the additional Fairtrade premium to invest in business and community improvements of their choice
• payment within seven days (instead of up to three weeks)
• support to build and strengthen the capacity of their farmers’ organisations.
The Fairtrade premium
The Fairtrade premium from sales of Homegrown products can only to be used to fund projects selected by workers employed on the flower and vegetable farms and the packhouse in Nairobi. It is administered by a Joint Body made up of elected workers and one or more management representatives. The management members use their skills and experience to guide the Joint Body in project management, finance, accounts, and administration, while the overall decision-making power rests with the elected members. The company appoints Fairtrade Officers at head office and at each farm to liaise and communicate with workers on Fairtrade related matters.
The vegetable outgrowers will receive their first premiums in spring 2010. Members will decide democratically how to invest the premium and an elected committee will manage the fund. They have identified several areas for investing the Fairtrade premium to benefit their communities:
• construction of local schools: secondary schools are often too far for children to attend daily so they have to be sent away to stay with relatives or friends
• water conservation projects: improve irrigation schemes to reduce waste by run-off; replace water channels with pipes; dig water pans to collect rain water and run off from the fields (requires the hire of expensive diggers)
• construction of a clinic: improve access to medical treatment
• electricity provision: most homes don’t have electricity and use kerosene lamps for lighting
• training centre: for computer skills, adult literacy etc
• infrastructure: construction of new roads and improvements to existing roads damaged during the rainy season.
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