East African Breweries Limited (EABL) has paid Sh1.5 billion to 60,000 sorghum farmers in the region this year. The farmers who are small-scale growers are contract by the brewer to ensure steady supply of the raw material to its manufacturing plants.
The company says it is looking to increase the supply of sorghum going forward following the opening of its new plant in Kisumu, which is complete and is set for commissioning later this year.
It has therefore contracted additional growers in western to supply sorghum to the new plant.
“We are very proud to welcome the new 15,000 farmers contracted to supply our Kisumu brewery into our ever-expanding value chain,” said EABL chairman Charles Muchene in the brewer’s annual report. “These farmers will help us realise our vision to support in delivering over 100,000 jobs to the communities across the western Kenya region.”
The EABL, which started using sorghum as a raw material for the production of its low-priced Senator Keg in 2009, has been eyeing to increase local sourcing of raw material, which currently stands at 80 per cent.
“Under this programme, EABL has managed to develop a network of more than 60,000 farmers supplying the company with 80 per cent of raw materials,” said the brewer.
“In return, EABL provides farmers with free inputs (seeds), fertilisers, extension services and other technical and financial support needed for farming.”
RELATED ARTICLE: Kenya Breweries Limited introduces a mobile app to manage sorghum production by contracted farmers
RELATED ARTICLE: KBL to distribute grain threshing machines to entice Nyanza farmers into sorghum farming
RELATED ARTICLE: Beer maker contracts 500 Kisumu farmers to grow white sorghum
The contract farming guarantees farmers purchase of their harvests but also helps the brewer cut costs.
“Through these initiatives and the direct payment of Sh1.5 billion to the farmers, EABL has played a part in local wealth creation.
“We have created value directly to local economies and have built capacity among the communities we work in,” says the brewer.
The brewer has contracted farmers in Migori, Homa Bay, Kisumu, Siaya and Busia to grow white sorghum, the main raw material for making its low-priced Senator Keg.
“To ensure enough sorghum supply, KBL will be providing sorghum seed and donating tractors, with the aim of supporting farmers deliver quality crop,” the brewer said.
EABL is Nairobi Securities Exchange-listed brewer and is majority-owned by British multinational Diageo.
Related posts:
- How former tailor grew to become a regional trader in sorghum Beatrice Nkatha, Demostrates how mechanism has improved Sorghum delivery. A former tailor who found the...
- East African Breweries Limited looking for 45,000 more farmers to grow sorghum East African Breweries Limited (EABL) is currently looking for over 45,000 farmers across the country...
- Government’s maize flour blending policy to reduce shortage and promote sorghum, millet and cassava farming A proposal by the ministry of Agriculture to push millers to blend maize flour with...
- Kenya Breweries now targets the youth with sorghum farming Kenya’s number one beer maker, Kenya Breweries Limited (KBL), is targeting the youth in a...
- Government asks farmers to grow millet, sorghum, cassava and amaranth for blending with maize flour The Kenyan ministry of agriculture has urged maize farmers all over the country to plant...
- Team of agricultural graduates in Busia County training farmers on crops production for food security Youth tending to his zucchini crops. Agronomical support is key in crop production and food...