Grantee: Kaderes Peasants Development (KPD) PLC
Project name: “Warehouse for the Poor (W4P)”
Grant amount: £450,000
Project start date: 1st December 2014
Project duration: 3 years
Countries benefiting: Tanzania (primary); and Kenya
Description of the organization:
Kaderes Peasants Development (KPD) PLC is a public, limited for-profit company registered in Tanzania, and is currently owned by 681 shareholders who are mainly local smallholder farmers from Karagwe and Kyerwa districts. Its core business activities are the processing, marketing and export of both fair trade and organic coffee (primarily to the European market) and beans for the World Food Programme (WFP) in Tanzania. KPD is the offspring of a local Tanzanian NGO, Karagwe Relief and Development Services, whose main objective is to empower farmers and give them training in sustainable farming methods.
Currently there are no automated warehouses in the Kagera region of Tanzania, and as a result farmers often sell their product post-harvest at sub-optimal prices. KPD’s Warehouse for the Poor (W4P) project will create an automated warehouse in Kagera in which agricultural products of smallholder farmers will be deposited. With W4P, farmers will receive warehouse receipts as proof of ownership of their products upon deposit. They will also be able to obtain credit against their inventory at affordable interest rates; loans will be provided by a partner financial institution in Tanzania. The agricultural products will remain the property of the farmers who will be encouraged and assisted to market their crops during and after the season through cross border trade (structured trade) and to other national, regional and international buyers like the World Food Programme in Nairobi and/or Dar es Salaam, which will guarantee the farmers a reliable market opportunity in the event of them not being able to market their products themselves. W4P farmers benefit from the aggregation, grading and marketing services provided by the W4P warehouses.