Why not app your agribusiness

The limited use of information technology in agribusiness is something Stefano Carcoforo has experienced first-hand.

The 28-year-old engineer first got into agribusiness in 2012, partnering with urban planner Nicole Galletta to sell software to agricultural suppliers through their company iProcure Ltd.

The venture ended in disappointment, but the two had learned a lesson, which saw them change course.

“We ended up diverting from the original idea. We found that the way to go was to distribute inputs to farmers,” Carcoforo said during an interview with Seeds of Gold at his GHB office in Hurlingham, Nairobi, which he runs with colleagues Patrick Wanjohi, a bespectacled 25-year-old information technology graduate, and Charles Njihia, a software engineer.

After incorporating the software dubbed iProcure, which they had earlier sought to sell into their new venture, they supplied fertiliser, feeds, machinery, animal supplements, seeds and tools to farmers in Siaya and Nakuru.

Carcoforo, the co-founder and director of the company, said that despite the initial disappointment, fast uptake of their product has given them a competitive edge over other suppliers. “Our logistics costs are low. The software allows us to run a lean operation and keep processes streamlined.”

“It tells us when inventory levels are low and the demands on the ground. It also works with historical data and seasonality. So, it can tell you what to stock heavily and which inputs are not moving fast.”

Using technology means they don’t need to incur the costs of warehouses and storage units. “We partner with wholesalers and transporters to ensure farmers get inputs on time.”

iProcure emerged third at the Global Innovation through Science and Technology Startup Boot Camp, East Africa last year, taking home a Bronze Award of Excellence, after two Tanzanian groups. “The judges liked the fact that we were addressing one of the biggest issues concerning food security; getting farm implements to farmers,” Carcoforo said, averring that the problem is not unique to Kenya.

Ms Saida Nyambura, who manages the information technology wing at Farm Shop, a local franchise of agro-dealers lauds iProcure. “It has made our work easier in making orders, establishing sales and keeping an eye on product levels. Through the system, any of our franchise shops can place their orders when needed and we can dispatch these to the shops. When your products go down, the system alerts you; you don’t have to run around with store cards anymore.”

Saida identified some of the challenges she has encountered with the system. “We had difficulties linking data from one end to another three months ago, but this was shortly after our pilot. The problem was sorted out.” She notes that many in the industry think such programmes are meant for banks and corporates, which is wrong.

Prof Abel Kinoti, Dean at Riara University’s School of Business said iProcure team should harness the potential of their initial software undertaking. “They could either set up a parallel system as a model for other suppliers to understand its use, or sell to a prominent distributor group.”

He averred that the group might find it interesting to explore their penetration strategy. “They should sell it to a few prominent groups, even at a subsidised cost. These can then prove the software’s value and relevance to others. They have to target the early adopters, that small section of the group who are technologically conscious, are competitive and are in the lead. Then the early majority, the late majority and the laggards will follow after.”

However, facing challenges selling the product, the team has since been phasing out its software arm. “Software is a tough sell, especially in Kenya. We sold the system to about 15 distributors but the use was sporadic. Since we charged clients based on usage, this meant the returns were low.” If the positive reviews the software has garnered from some of its clients are anything to go by, they might be giving up too early.