FarmBizAfrica launches weekly market prices to help farmers earn more

“These studies have all measured the actual results of published prices, not theory,” said Jenny Luesby, Chief Information Officer and cofounder at FarmBizAfrica. “Published prices increase trust and increase trade.”

The FarmBizAfrica service has launched with 14 commodities, giving the prices lorries charge on arrival at the markets, and the prices wholesalers charge to stallholders and retailers.

“For me as a farmer, it will help me negotiate better with aggregators and buyers who come to my farm and sell the potato at Wakulima market in Nairobi,” said Janet Gichuhi, a potato farmer based in Nyeri county.

“If they are selling it at say Sh7000 per 90kg bag, as published by FarmBizAfrica, why should they be paying me just Sh3000 for the same? Adding the cost of fuel and other stuff, I know they could be spending more, but at least it should be more than half of what they are selling. So this will go a long way in helping negotiate,” she said.

Many farmers were of the same view.

“It shall make a great deal on negotiations that happens at the farm gate. I hope it breaks the middle person price knowledge monopoly,” said Felix Jomo, one of the farmers who spoke to FarmBizAfrica..

Stallholders have also welcomed the new prices.

“This is great, I hope FarmBiz keeps the trend because I will be now able to know whether I need to just pay Sh20 fare and get to Marikiti and buy my groceries or should I buy at my local vendor. The few coins make a difference because the cost of living is quite high at the moment,” said Shebah Karari, a resident of Ngara, Nairobi.

According to Jenny, “generally, it can be middlemen who most resist open and transparent pricing, but then they are left running businesses where no one they are sourcing from trusts them. That ruins deals, sees farmers switching to other buyers, and makes for often dissatisfied trading relations.”

“In fact, in every single market where open pricing has been embraced it has also changed attitudes to middlemen. Then, they become essential links to market, finding sellers become easier and their role becomes much more highly valued, organising the flows of food, reaching into inaccessible areas, grading the produce, and providing a ready market.”

“Messing up trust and running on hidden pricing makes markets sticky, and stops farmers planning well,” she said.

The new price service is initially covering tomatoes, sukuma wiki, potatoes, onions, garlic, chillies, cabbage. green and red capsicum, avocados, mangoes, oranges, watermelon, pineapple and omena, with the weekly prices published every Monday morning.

The prices are free to everyone with FarmBizAfrica encouraging consumers, farmers, middlemen and agribusinesses to sign up through simple steps to fully access it.

The research has found that without a price service, farmgate, wholesale and retail markets are hindered by high transaction costs, intermediary margins, and fragmented market linkages, while published prices see farmers earning 6 to 8 per cent more, consumer prices falling by as much as 4 per cent, and traders up to 8 per cent better off on saved haggling time, reduced disruption and greater volumes.

Price volatility is also reduced.