OPILICOS FARMS

By the year 2000 it was estimated that absolute poverty had risen to 1.5 billion people- a quarter of the world's population.Poverty in Kenya is widely spread. The best pathway out of poverty is a well-paying job. To kick start job growth, we should invest in job creation strategies that create jobs and boost our national economy. Agriculture is a major driver of the Kenyan economy and the dominant source of employment. .The FAO reports that more than 70% of Kenya's rural population is employed in the agricultural sector, accounting for 40% of its total population (2018). It therefore plays a key role in poverty reduction. Despite several interventions, creation of adequate, productive and sustainable employment continues to be the greatest economic challenge for Busia county. I want to use commercial greenhouses tomatoes farming as a job creation engine- to reduce income poverty levels- in Busia county.

There are-on estimate around- 364 million Africans between the ages of 15-35. By 2045, the number of African youth is expected to double. 10-12 million new young workers seek employment every year. Urbanization with delayed industrialization has led and will continue leading to “jobless growth” .Up to 60% of Africa’s unemployed are young adults, this proportion is growing every year and it’s obvious that Africa’s youth are better educated but to many lack business skills.Therefore, Rural transformation requires that new and profitable ventures be initiated rapidly and widely focusing on the main economic activities that can both feed and support these populations.Today and for many years to come Agriculture is and will remain to be the most important economic sectors and the largest employer in Kenya and Africa in general. Agricultural development remains the main catalyst for(I)Economic Progression(ii)Employment Creation(iii)Food Security and Safety(iv)Poverty Reduction.The Kenya Vision 2030 has identified agriculture as one of the six key economic sectors expected to drive the economy to a projected 10 percent economic growth annually. This level of growth will be crucial for attaining the Sustainable Development Goals (SDGs) 1 and 2 of ending poverty and hunger respectively.   

My solution is about commercial tomatoes greenhouses farming as a job creation engine in Busia county.  Greenhouse tomatoes farming has the potential of achieving higher yields on the same size of land, compared to open-field farming. These greenhouses first of all have the benefit of producing vegetables outside of the regular production seasons, allowing for sales during months in which supply is low. In Busia county, tomatoes production in the rainy seasons is not possible, as crops are destroyed from intense levels of rainfall.During these periods, tomatoes production is only possible in greenhouses. Better quality produce can be grown in the greenhouse, compared to open-field production, which is a result of the control that the farmer has over the growing environment of the crops.  Greenhouse production therefore allows for more efficient land use-yields per square meter to be ten times larger compared to open-field production. By use of Greenhouse technology,the farm will be producing high quality, nutritional, hygienic and fresh tomatoes throughout the year at affordable prices and discount offers, There by attracting year round customers & creating job employment opportunities for youths(both literate-30% and non-literate-70%) in busia county to work as daily workers in the greenhouses.

The overall objective of the innovation is in accordance with the Government agricultural policy of increasing food production and diversification of the present farming system so as to attain sustainable food security and subsequent poverty reduction.The target population of the solution are the communities residing in Busia county.  Due to high consumer demand,the county is forced to import tomatoes that could have been produced in the region. The county Government of Busia reports that tomatoes are one of the major vegetable imports.Greenhouse technology has been posted to be a cost-effective solution to address the issue in tomato cultivation in Busia county. With availability of funds, I will start greenhouse production of tomatoes on commercial basis, raising hopes that the popular vegetable will become available throughout the year at affordable prices.Residents have for the last three months been forced to dig deeper in their pockets to enjoy a meal flavoured with tomatoes.Commercial tomatoes greenhouses farming can help to alleviate poverty at the level of poor house holds, by providing employment opportunities(by year 2030 4,080 youths will have been employed on permanent basis earning between $141.66-$188.88 per month) thereby reduction in income poverty-families will have money to meet other basic needs.

Solve is seeking solutions to critical global challenges. Creation of good jobs through commercial tomatoes greenhouses farming for the marginalized communities in Busia county relate to the challenge of creation of good jobs & inclusive Entrepreneurship

Tomatoes are in high demand.Tomatoes production in Busia county is still very much dependent on rainfall and is on the open field (Government of Kenya). Long term agricultural production is under threat because of; pests and diseases that can have a devastating effect on crop production, changing precipitation patterns. Third, extreme rainfall during the rain seasons around April and November has the ability to destroy tomato fruits . As a result, tomato production in these periods is very low and prices increase. Among others, due to these challenges, the county is forced to import tomatoes that could have been produced in the region. The county Government of Busia reports that tomatoes are one of the major vegetable imports.Greenhouse technology has been posted to be a cost-effective solution to address the issue in tomato cultivation in Busia county. Greenhouse tomatoes farming has the potential of achieving higher yields on the same size of land, compared to open-field farming. These greenhouses first of all have the benefit of producing vegetables outside of the regular production seasons, allowing for sales during months in which supply is low. Better quality produce can be grown in the greenhouse, compared to open-field production, which is a result of the control that the farmer has over the growing environment of the crops. By use of Greenhouse technology,the farm will be producing high quality, nutritional, hygienic and fresh tomatoes throughout the year at affordable prices and discount offers, There by attracting year round customers.

Tomatoes farming will be under greenhouses. Kenya has started greenhouse production of tomatoes, raising hopes that the popular vegetable will become available throughout the year at affordable prices. According to the Kenya Horticulture Development program (KHDP); the greenhouse tomatoes project, is one of the activities the programme is supporting to help increase the incomes of rural house holds. If the concept is widely embraced, Busia county could start enjoying year-round supply of high quality tomatoes, which currently get damaged during the wet seasons, pushing prices through the roof. Growing crops under greenhouse has many advantages, among them the ability to produce huge quantities on a small piece of land and continuous harvesting. One plant has a potential of up to 15 kg by the time it has completed it's full cycle- recommended at one year. Less labor is employed in a greenhouse, while exposure to chemicals toxins associated with application is minimized or eliminated altogether. It's a good farming practice for the conservation of environment. Planting materials for the greenhouse tomatoes production have been specially developed as high yielding. The introduction of greenhouse tomatoes in Kenya Heralds what could be a major shift from open pollinated farming to hybrid high yielding methods, which if adopted in other sectors could lead to massive improvements in crop production, out put, incomes and ultimately self sufficiency in food production

According to the Kenya Horticulture Development program (KHDP); the greenhouse tomatoes project, is one of the activities the programme is supporting to help increase the incomes of rural house holds, is borrowed from Israel, where the country has most of its agriculture under greenhouse due to scarcity of water and land. It's also widely practiced in the United States of America. If the concept is widely embraced, Kenya could start enjoying year-round supply of high quality tomatoes, which currently get damaged during the wet seasons, pushing prices through the roof.

The agricultural sector is the main source of income in the county.The reduction of poverty and hunger, equity in income distribution and human resource development remain major challenges in Kenya. According to the 2019 Kenya population and housing census, the population of Busia county was estimated to be 883,681 with females 52.3% and males 47.7%. The population is largely rural. Approximately 64% of the population lives below the poverty line, making Busia one of the counties with the highest poverty incidences in the country. Majority of these people are found in the rural compared to the urban areas (64% and 36% respectively). The Human Development Index(HDI) that measures the quality of life is relatively low in the county (0.42) compared to the national HDI of 0.52(Gok,2013b). The low HDI is as a result of low literacy level i.e people who can read and write, which stands at 75%, high income inequality (Gok, 2013a), that may be partly as a result of the high unemployment levels in the county which is at 70%(Gok,2013a). Agriculture is a major driver of the Kenyan economy and the dominant source of employment.The FAO reports that more than 70% of Kenya's rural population is employed in the agricultural sector, accounting for 40% of its total population (2018). It therefore plays a key role in poverty reduction. In a greenhouse, anyone can work effectively irrespective of there educational background or no special/specific skills will be required. This will suit well the communities residing in Busia county as the majority are iliterate(75%). Commercial tomatoes greenhouses farming can help to alleviate poverty at the level of poor house holds, by providing employment opportunities thereby reduction in income poverty-families will have money to meet other basic needs.

Every house hold uses tomatoes and the demand is high than the supply of the commodity. By year five of operation, the farm will be owning and operating 600 tomatoes greenhouses thereby producing 390,000 tonnes of tomatoes (i.e 13x1000xksh50per kg x 600).This will enable us stabilize the continuity of supplies in the market compared with the fluctuating way of supplies due to lack of products. By stabilizing the supplies we will have secured a guaranteed market for our products. More than a third of Kenya’s youth eligible for work have no jobs. Census data of 2019 shows that 5,341,182 or 38.9 percent of the 13,777,600 young Kenyans are jobless, further widening the gulf between the rich and the poor.The youth in Kenya are defined as persons aged between 18 and 35 years. This population has a significant challenge in the nation at large as it has resulted in unemployment, increased crime, drug and substance abuse, health issues and other symptoms of social disorder due to unfulfilled needs. Limited involvement of youth in gainful employment and economic participation as well as their exclusion and marginalization from decision making process and policies is a threat to the stability of the nation. By year five of operation, the farm will be owning and operating 600 tomatoes greenhouses,thereby creating 1200 job employment opportunities for the youths in Busia county. Each greenhouse will be employing two youths equally from both genders and earning between $141.66-$188.88 per month.

Commercial tomatoes greenhouses farming is a viable and profitable venture. Extra revenue generated will be used as follows;Although ideally it would be better to get the entire world to aplace of self-sustainability,it is not something that will happen overnight.In the meantime it is important to lend a helping hand.Majority of the people in Busia county cannot afford to buy food for their families.The farm will be making food donations to the most vulnerable families.Education is the best weapon against poverty and hunger.It is especially powerful in under-developed countries.Education means better opportunity and more access to income and food.The farm will be supporting access to education for the county children's through the following project's: In Many primary schools,buildings are dilapidated and few desks are found in the classes. The farm will intervene by donating new desks and construction of new classrooms.Poverty is rampant in our rural area until a few parents have the ability to pay school fees.The farm will be operating students busary kit for helping parents in paying school fees.Sanitary towels will be offered to support the girl child enrollment in schools as it has been reported that the majority don't attend classes during their monthly periods.Majority of the students attend school with torn-out uniforms,the farm will be donating new school Uniforms. The main source of drinking water in the county is borehole (46%) . The farm will aid in helping the communities acces safe and clean drinking water by drilling water boreholes in the region.

Greenhouse technology requires initial huge investment in capital,and raising the required funds  won't be that easy/cheap.We are new commercial tomatoes greenhouse farm in Kenya; it might take some time for our organization to break into the market and gain acceptance especially in the already saturated and highly competitive commercial farming industry. Just like any other business, other major challenge we are likely going to face is economic downturn which will affects the purchasing and spending power. Another challenge that may likely confront us is the arrival of a new commercial greenhouse farm in the same location where our Target market exists and who may want to adopt same business model like us.

Due to the huge capital investment requirements for starting off the commercial tomatoes greenhouses farms,we will seek donor grant funding.Tomatoes are not branded products; hence what usually matters is effective positioning and timing.We will perfect our sales and marketing strategies first by networking with agriculture merchants and companies that rely on tomatoes as raw material i.e, who are likely to become our customers. We will introduce our business by sending introductory letters along side our brochures to stakeholders in the agriculture industry, hotels and restaurants and agriculture produce merchants etc. We shall also advertise our business and agriculture produce in agro-allied and food related magazines and websites. We shall list our commercial greenhouse farms on yellow pages ads. We intend to be attending related Agriculture and food expos, seminars and business fairs etc. We shall also leverage on the internet to promote our business. Engage in direct marketing and encourage the use of word of mouth (referrals).  There's hardly anything you can do as regards this challenges other than to be optimistic that things will continue to work for your good.

By year one of operation the farm will be owning 40 tomatoes greenhouses. Each greenhouse will be employing 2 people as daily workers on full time basis. Therefore 80 employees will be employed on full-time basis, and by year ten of operation( by year 10 the farm will be owning & operating 2,040 tomatoes greenhouses)4,080 staffs will be employed on full-time basis. Each new farm acquired will be employing 3 office administrators on full-time basis.

Opilicos farms will lead the team in implementation of the project. Opilicos farms is a private registered agro-allied farm that is owned by COSMAS OPILI ODHIAMBO and family. The farm is fully and single handedly managed by the owner and his immediate family members at least for aperiod of time.Before starting Opilicos farms, Cosmas Opili Odhiambo was Assistant Managerial Accountant of a renowned water company in Taita taveta county (Tavevo water & sewerage company). I worked in the company for well over 7 years before resigning to start my own commercial farming business.I  was able to master financial management, staff recruitment and organization management skills among other things necessary to give the firm good commendation from our clients. My  managerial skills will also help in putting together a workforce for over 5 years, which will also help me to coordinate the team work in most aspect of the farm.I am the General manager of the farm overseeing the day to day activities of the business. 

Due to the magnitude of the project, Opilicos farms will be in partnership business with Ikonzo Community based organisation. We will take management of the project on a 50:50 basis. Ikonzo Community based organisation is based in our rural areas (Ikonzo & Namwitsula sub-locations,Butula sub-county,Busia county). Its led by twenty five(25) highly educated youthful leaders (90% of the members hold high level learning Degrees,certificates & diplomas). The maturity of thinking they will be bringing on board will be of great help in the success of the project

Food(tomatoes inclusive), is central to human well-being: it provides the body with nourishment, offers livelihoods that lift people out of poverty, and brings communities together.Kenyans have for the last three months been forced to dig deeper in their pockets to enjoy a meal flavoured with tomatoes. consumers have been forced to part with between ksh10 to ksh15 for one tomato up from ksh 5 or ksh 3 over two months ago.The traders attributed the increased cost to reduced supply in the market and transportation challenges.By use of greenhouse technology,the farm will be producing on commercial basis high quality, nutritional, hygienic and fresh tomatoes throughout the year at affordable prices and discount offers. The introduction of greenhouse tomatoes in Kenya Heralds whatcould be a major shift from open pollinated farming to hybrid high yielding methods, which if adopted in other sectors could lead to massive improvements in crop production, out put, incomes and ultimately self sufficiency in food production.Planting materials for the greenhouse tomatoes production have been specially developed as high yielding. By 2030, the farm will be owning and operating 2,040 tomatoes greenhouses, each greenhouse will offer job employment opportunities for two youths residing in Busia county. Therefore 4,080 job employment opportunities will be available for the youths in the county.

After one year of operation,I will seek aloan of $1,347,838.64 from kenya's Youth fund(fund establish & financed by Gok).The loan attracts a 5%interest,and will be paid in 60(5yrs)monthly stalements of $23,587.18.The funds would be used in constructing 160 more tomatoes greenhouses in four new farms(each farm will be established in an acre piece of land & will accommodate 40 tomatoes greenhouses measuring 8m x 30m).In the end of second year of operations,I will seek $2,021,757.97 funding from my bank.The loan attracts a18% interest,and it will be paid in 60(5yrs)monthly installments of $39,761.24.The loan amount will be used in construction of 240 more tomatoes greenhouses in 6 new farms.In the end of third year,the farm will use it's revenue base to fund $673,919.32 for the construction of 80 more tomatoes greenhouses in two new farms.At the end of fourth year of operations,the farm will use it's revenue base of $673,919.32 for the construction of 80 more tomatoes greenhouses in two new farms.In the fifth year end,the farm will again use it's revenue base of $673,919.32 and construct 80 more tomatoes greenhouses in two new farms. By this time the farm would have cleared the loan from youth fund.Therefore the farm will seek for extra funding of $2,021,757.97 in the end of year six of operations.The loan amount attracts a 5%interest.The loan amount plus interest will be repaid back in 60(5yrs)monthly installments of $35,380.76 per month.The loan funds will be used in establishment of 240 more tomatoes greenhouses in six new farms.

No matter how fantastic your business idea might be, if you don't have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting tomatoes greenhouse farming.Initial real investments are prerequisites for a start-up to attain further development, and they have strategic importance as a consequence. Initial investing establishes firm readiness to generate or add value, and therefore doing business.initial and early real investing is of extreme importance for growth, development and success of a new venture is not possible until real investing occurs. OPILICOS FARMS is not in a position to finance the project due to it's high initial capital investment requirements, that's why the project is soliciting grant funding assistance for a period of 36 months. Thereafter the project will be in position to finance it's operations from the proceeds of the farm. The funds the project is soliciting from Solve community amounts to $6,347,357.27.

Poverty in Kenya is widely spread. It is a daily cloth for the majority of people who live in rural areas .Our rural areas transformation requires that new and profitable ventures be initiated rapidly and widely focusing on the main economic activities that can both feed and support these populations. The establishment of the Tomatoes greenhouses farm as per the request,  will fit right for our rural areas.Today and for many years to come Agriculture is and will remain to be the most important economic sectors and the largest employer in Kenya and Africa in general. Three out of four poor people in developing countries live in rural areas and most of them depend directly or indirectly on agriculture for their livelihood. Agricultural development in our rural areas remains the main catalyst for (I)Economic Progression (ii)Employment Creation(iii)Food Security and Safety(iv)Poverty Reduction.

MIT faculty or Initiatives or solve members. I seek their partnership in amanner that by offering both financial & technical assistance/support we transform Busia county levels of youth unemployment.