We believe the social innovation approach answers the farmers’ need for support across the value chain without eroding Kulika’s mission or creating competition with the local community since our solutions are very locally specific.
What Kulika will do in the New Social Innovation Model.
The new social innovation business model entails the following in order to achieve the vision and mission of Kulika Uganda;
Working with Farmers as Partners.
We believe that working with the farmers as partners will enable them earn daily income in each business activity they participate on, increase their income thus improving their livelihood.
Our emphasis is in documenting the whereabouts and progress of Kulika alumni, building on the tracer studies, to enable closer working together. We will identify those that actively wish to seek partnership with Kulika and assess them according to a grading system that assesses the extent to which they follow Kulika principles in all their farming activity. For motivated KFTs Kulika will provide refresher and business skills training. Less qualified farmers will be offered appropriate training to move them up the grades. Trusted, top grade farmers will be able to apply for loans at competitive rates on the basis of their approved business plan provided it enhances the community wellbeing rather than exploits it. Kulika will support the farmers through all aspects of the business development, learning with them as difficulties arise, using the CCB model. Careful assessment, long-term relationships and active support will minimize the risk of default. Through this process knowledge will be built and satellite centres of excellence will be developed. All involved will benefit economically as well as socially, whilst promoting Kulika’s profile widely.
Marketing and Market Development.
Having noticed that farmers face the enduring challenge of where to sell their products, our social business innovative idea will focus on working with farmers to find the market for their produce. Kulika Uganda will be the market for the famers produce when its enterprises are fully developed and expanded. Farmers will be suppliers of raw materials to support the expanded enterprises at Kulika training Centre. Accredited farmers in category K.5 will be considered as out growers and producers and will directly be eligible to supply their products to Kulika existing customers. By this Kulika will act as a market facilitator for the farmers.
Business Incubation.
Kulika Training Centre at Lutisi will be developed into a model business as well as a model farm – a centre of excellence. All the enterprises at KTC will become learning area for aspiring entrepreneurs. Honey, wine, poultry and briquettes producers will learn market-driven best practices in how to process, package and market their product locally and achieve quality standards that give them entry to the KATU brand. Profits will be used by Kulika to increase their work of training and support of farmers in growing, value addition and marketing, and business loans to transform livelihoods.
Roadside Market at Lutisi Centre
Once the roadside Market is completed, it is unlikely that the Kulika Centre will produce enough surplus vegetables and fruit to keep it stocked and so it presents an excellent opportunity to pilot the new business model. There are around 20 Key Farmer Trainers (KFT) within a 5km radius of the centre and these will be the target producer group.
Preparation
An experienced Kulika representative will visit each of the KFTs to assess farmers’ current practice using the K.1 to K.5 scale and their level of interest in the project.
Refresher training, at subsidised rate, will be offered at the Kulika Centre for those farmers keen to participate. This training will introduce business skills as well as up-dating EOA methods and extension training practice. A CCB approach will be used to fully engage the farmers in planning their growing schedule and resolving questions and challenges as they arise. This includes selection and allocation of produce to grow, packing and transport to the market stall. Each farmer will be asked to identify two contact farmers in their own neighbourhoods who they will work with and teach to grow the selected products for the market stall.
Quality Assurance
The choice of farms may be restricted to a 5km radius to allow daily inspection of the growing sites, in the first instance, to ensure the food can be marketed as organic and that Kulika practices are being used. Records will be maintained and used in a research and evaluation process.
Benefits of the Model
- It will ensure a reliable supply of organic produce for the roadside market.
- It will be an opportunity to trial the K.1 to K.5 scale criteria for wider use.
- It will be a demonstration of the new business model in practice and an opportunity to refine it.
- Training materials will be developed with the farmers for local and wider use, contributing to the revised curriculum.
- The Kulika Training Centre’s visibility and impact in the locality will be increased and farmers will see the benefit of EOA and collaboration.
- It will provide a case study to illustrate the new business model.
Conclusion.
This model is significantly different from the traditional NGO approach and will also strengthen our existing food security programs within the communities we serve. It would contribute to a greater degree of success for our funding applications, making them more attractive to funding organisations that are geared towards skilling Uganda. Whilst Kulika’s unrestricted budget could be used to finance loans, there is strong likelihood that funders would provide incubation resources, especially ones that are sustainable.