From farming to agro-processing. It is not easy, but it is doable !

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Source:

https://www.youtube.com/watch?v=8qixltpA2zc

Duration: 

16:26:00

Year of Production: 

2023

Source/Author: 

Utmost Precision
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With a start in farming of strawberries where they had up to 90% for fresh fruit market but bad weather this turned to 90% of rejects. This led to the idea of fruit preserves which is generally to preserve the products into the next value add.

Due to customer preferences shifting towards low-sugar jam, VG Foods undertook a thorough reevaluation and began designing low-sugar jam as a response. This marked the beginning of their journey in manufacturing, gradually transitioning towards commercialization. They sought to understand what it would take for customers to accept low-sugar jam and received positive reviews for their strawberry jam, which encouraged them to expand their product line to include other fruits.

VG Foods aims to become the leading producer of raw materials for the yogurt, pastry, and juice industries. They aspire to be at the forefront of innovation and technology, driving the growth of target fruits and producing high-quality, stable products for the market.

Value Addition

Value addition is a key focus for VG Foods. Their extensive experience in farming, coupled with their close association with firms like Real IPM and Amiran, allows them to address the challenges faced by farmers and provide effective solutions. By analyzing farming challenges on-site, they can offer valuable expertise. As an entrepreneur transitioning or pivoting from one business to another, it is crucial to establish a sound business model, vision, and partnerships to ensure a successful transition. Effective record keeping enables informed decision-making and provides a competitive edge in the market. Joining associations like the Kenya Association of Manufacturers and the Export Council can facilitate access to markets, customer networking, and valuable training and workshops to enhance product improvement and ultimately boost sales.

Product Development

For successful product development, it is essential for a manufacturer to understand and consistently meet customer needs. VG Foods has formed partnerships with local customers to utilize locally grown fruits instead of relying on imports. Understanding the customer’s desire for low-sugar options was pivotal in their product development, resulting in high fruit content with over 60% fruit in their products. They also offer smaller portion sizes for convenient consumption.

 

 

Sequence from Sequence to Description
00:0001:12Introduction
01:1302:32It started of as farming of strawberries where they had up to 90% that they could get to the fresh fruit market but with bad weather this turned to 90% of rejects. This led them to the idea of fruit preserves which is generally to preserve the products into the next value add starting off with jam.
02:3303:56With most of their customers not liking jam with a lot of sugar led them back to the drawing beard hence the designing of low sugar jam. Thus the beginning of their journey in the manufacturing slowly transitioning to commercialization of their products. to understand what it will take for customers to accept low sugar jam and with positive reviews on strawberry jam they got all of their other fruits into production of jams.
03:5705:26They are very keen on the crops that grown in Kenya and they have experience growing with their experience in the farm they are able to mitigate the challenges a farmer will ordinarily face and pin point different solutions. They have associations with firms like Real IPM and Amiran that can offer them with solutions by coming to the farm analyzing the challenges well.
05:2706:54As an entrepreneur transition or pivoting from one business to another you need to get your business model, vision and partners right to see you through the pivoting. Also record keeping is key to enable making informed decisions on the next moves you will be taking that will give an edge compared to your competitors.
06:5508:24The need to leverage on availability of institutions that can wok with them to be able to grow production, quality and sustain quality as they grow significantly to a level of selling commercially to customers. They have grown from working with produce from their own farms to now having 50 farmers working for them on different variety of fruits as their production increases.
08:2509:00For entrepreneurs that would like to access some of the markets as a manufacturer its good to join the Kenya Association of Manufactures to meet customers. The Export Council comes on board in terms of export market and they offer trainings and workshops for you to be able to improve your products and eventually sell them.
09:0110:10A manufacturer needs to understand what really the customer wants and meet those needs each and every time and keep up a review that will enable you to tweak a couple of product aspects to meet those needs. They have partnered with local customers in production so that they use the fruit locally instead of them importing.
10:1111:14Understanding what the customer needed in terms of low sugar was key to their development with their products having high fruit content with more than 60% fruit. They also have smaller portions for quick consumption.
11:1512:45In the farm there are many loses which can lead to transitioning to manufacturing leveraging every produce from the farm thus reducing food loss and food wastage. Hiring training and retaining skilled labor is also a challenge because of seasonality.
12:4613:44To overcome the labor challenge they have been able to get a hiring firm that does that. Matters production market entry is a challenge customers are hard to get thus need to constantly educate and reach out to them.
13:4515:08VG Foods intends to be the leading producer of raw materials for yorghurt, pastry and juice industries. Also to be leaders in innovation and technology that leads to the growth of target fruits and production of quality stable products in the market.
15:0916:26Summary

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