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M-Farm: The Digital Agriculture Marketplace in Kenya












                                                                                             A Student Multidisciplinary Applied Research Team (SMART) Project










                                                                                                                                                                                                       Yifan Liu , Yichen Shi , Shayna Krasnoff                                                                     3
                                                                                                                                                                                                                                                                 2
                                                                                                                                                                                                                               1

                                                                                                                                                                                                                                 Team Leader: Lin Fu                                      4


                                                                                                                                                                                                                    Faculty Advisor: Ralph Christy                                                     5







                                                                                                                                                                                                                                                                                                                                                                     PAIN POINTS IN                                                                                      M-FARM'S



                                                                                                                                 M-Farm Overview                                                                                                                                                                                                                       SUPPLY CHAIN                                                                                       OFFERING





                                                                                                                                                                                                                                                                                                                                                          Lack of stable market                                                                       Provide a mobile service

                                                                                                                                                                                                                                                                                                                                                                                                                                                       and digital marketplace
                                                                                                                                                                                                                                                                                                                                                         and fair prices among

                                                                                                                                                                                                                                                                                                                                                                                                                                                         to connect buyers and

               M-Farm, founded in 2011, is one of the leading digital agricultural marketplaces in Kenya.  Since                                                                                                                                                                                                                                                     small farmers                                                                                          farmers




               resuming operations in 2019 after a two-year suspension, they are exploring new directions and




               seeking venture capital.  The objective of this project is to identify strategic options for the


                                                                                                                                                                                                                                                                                                                                                             Informal nature of                                                                           Vertical integration in
               company’s expansion.  M-Farm has been:                                                                                                                                                                                                                                                                                                                                                                                                    supply chain to control

                                                                                                                                                                                                                                                                                                                                                            aggregation among

                                                                                                                                                                                                                                                                                                                                                                                                                                                                the movement of

                                                                                                                                                                                                                                                                                                                                                       many levels of brokers
                                                                   • Committed to improving efficiency in the agricultural supply chain.                                                                                                                                                                                                                                                                                                                                    produce





                                                                   • Building a solid network of 40,000 farmer users.





                                                                   • Exploring the B2B market.                                                                                                                                                                                                                                                                Lack of control for                                                                         Quality control through



                                                                                                                                                                                                                                                                                                                                                          buyers over sourcing                                                                                     M-FARM vertical
                                                                   • Standardizing distribution of produce to wholesalers.                                                                                                                                                                                                                                                                                                                                   integration to ensure


                                                                                                                                                                                                                                                                                                                                                                 and consistency
                                                                                                                                                                                                                                                                                                                                                                                                                                                              quality and reliability











                                                                                                                                                                                                                                                                                                                                                                                    Research Methods

















                                                                                                                                                                                                                                                                                                                                                                               • Informational interviews with




                                                                                                                                                                                                                                                                                                                                                                                      Linda (CEO of M-Farm) and




                                                                                                                                                                                                                                                                                                                                                                                      experts  from other B2B digital




                                                                                                                                                                                                                                                                                                                                                                                      agriculture platforms










                                                                                                                                                                                                                                                                                                                                                                               • Literature review










                                                                                                                                                                                                                                                                                                                                                                               • Secondary data analysis


















                                                                                                                                                                                                                    Analysis & Findings










                                                                                                      COVID-19  Impacts:                                                                                                                                                                                             Strengths








                                            Regular Services                                                                                                   Ministry of Agriculture (MoA) Commitment                                                                                                          •Focus on wholesale market moving large quantities is unique




           • Increased licensing requirements for                                                                                                            • Schools shut down under COVID-19                                                                                                                  •Offer platform to cooperatives, they can strengthen




               transport between counties and across                                                                                                             requirements                                                                                                                                        themselves



               borders                                                                                                                                       • Project stalled until April 2021                                                                                                                  •Experience working with government





           • Increase in feeds prices drives egg and                                                                                                         • Prioritize human and financial                                                                                                                          Weaknesses



               poultry prices up                                                                                                                                 resources

                                                                                                                                                                                                                                                                                                                 •Resources focused on MoA, success completely dependent on


           •Suspension of regular services, all funds                                                                                                        • Rising cost in labor and operations                                                                                                                   schools open



               for MoA commitment                                                                                                                                for trainings


                                                                                                                                                                                                                                                                                                                 •Lack of clear strategic plan for future









                                                                                                              Conclusions: Strategic Options











                                     New Service                                                                                                              New Market                                                                                                    Existing Market











                                                                                                                                     • Hotels
        • For Farmers                                                                                                                                                                                                                            • Vertical integration in supply chain


                                                                                                                                     • Government institutions
                       -Provision of farm inputs                                                                                                                                                                                                     with cooperative societies


                                                                                                                                     • Cafeteria in universities
                       -Technology advisory & support                                                                                                                                                                                            • Strategic partnerships with


                                                                                                                                     • Hospitals
                       -Provision of household goods                                                                                                                                                                                                 universities, agricultural institutions,


                                                                                                                                     • Large events’ food vendor                                                                                     local governments, etc.




                                                                                                                                     • Small and middle size
        • For Buyers                                                                                                                                                                                                                             • Introduce advanced agricultural


                                                                                                                                              restaurants
                       -Traceability of products                                                                                                                                                                                                     techniques and offer timely market


                                                                                                                                     • Individuals with a large
                       -Processed/semi-processed food                                                                                                                                                                                                intelligence to farmers


                                                                                                                                              quantity of demand















                                                                                                                                                   Acknowledgements


                                                                                                                                                   We would like to express our great appreciation to Dr. Lin Fu, our team leader, for her professional


                                                                                                                                                   guidance and valuable support and to Dr. Ralph Christy and Dr. Ndunge Kiiti for their useful and


                                                                                                                                                   constructive suggestions during the planning and development of this research work. Special



                                                                                                                                                   thanks to Mr. Viral Dodhia (Twiga Foods), Professor Grace Kabuye (Educator), Mr. Dongyu Liu


                                                                                                                                                   (Meicai Co.) for providing insightful information on the industry.



                                                                                                                                                   Affiliations


                                                                                                                                                   1,2  Cornell Institute for Public Affairs


                                                                                                                                                   3 SC Johnson Graduate School of Management


                                                                                                                                                   4,5  Charles H. Dyson School of Applied Economics and Management
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