Distribution and supply Chain Management

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Distribution and supply Chain Management
Importance in the African Continent

• Pesticide use in Kenya is only slightly older
  than 100 years

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Distribution and supply Chain Management
Importance in the African Continent

• The main widely used pesticide were use in 1906
  for tick control on livestock

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Distribution and supply Chain Management
Importance in the African Continent

• Due to over use of the products and in wide
  areas, resistance set in and has continued to
  develop and thereby herald the introduction of
  newer molecules.
• Currently new molecules are a mirage

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All over the world and particularly in the
sub-sahara Africa, it is the over use of land
with one crop over a period that has helped the
multiplication of pests in a given commercial
region for both crop animal industry.
Distribution and supply Chain Management
Importance in the African Continent
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Distribution and supply Chain Management
Importance in the African Continent
The advent of colonial regimes in Africa and the
transition to internal independence self
governance have played havoc to the status of
supply and distribution of any intervention
chemicals in Africa
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Independence in Africa started with Liberia in
1847. Most of self governance happened between
1951 (Libya) and 1975 (Angola).
Distribution and supply Chain Management
Importance in the African Continent
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Where liberation was followed by civil war,
little can be said about commercial activity in
agriculture except by government managed systems.
It will be a few years before a vibrant
agribusiness can arise.
Distribution and supply Chain Management
Importance in the African Continent
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Where liberation was followed by some resemblance
of peace, commercial activity in agricultural
systems have evolved though partly also
complicated by aggressive land subdivision
resulting to subsistence farming.
Distribution and supply Chain Management
Importance in the African Continent
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Distribution and supply Chain Management
Importance in the African Continent

• Independence land subdivision subsistence
  farming
• These is not an economic venture
• Distribution and mounting a supply chain into a
  subsistence livelihood is the main challenge
  which Governments have continued to battle with.
• Governments are never the best agents of change
  from a social to a commercial system

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Distribution and supply Chain Management
Importance in the African Continent

• Where Governments are still supporting the
  subsistence farming, the supply chains are
  heavily dependent on Government tenders and
  supply systems
• Characterized by
• Inefficiencies
• Wastage / pilferages
• Slow development

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Distribution and supply Chain Management
Importance in the African Continent

• Governments are never the best agents of change
  from a social/ subsistence to a commercial
  system.
• Credit must be given to private entrepreneurs and
  None Governmental Organizations (NGO), that have
  mounted programs that try to reverse the
  objectives of activities in the rural area into
  commercial activities.
• Example in Kenya

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Distribution and supply Chain Management
Importance in the African Continent

• Example in Kenya
• Milk production in 1963 ( immediate post
  independence period) was just under 800 mio Lt.
  In 2012 the production stood at 5billion lt.
• This story is the same for maize, wheat and meat
  products
• It is this kind of economically viable production
  systems that become indicators for where Supply
  and Distribution systems will thrive.

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Pesticides Manufacturers all over the world
formulate pesticides targeting markets where
usage is economically viable for business of
pesticides.
Distribution and supply Chain Management
Importance in the African Continent
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Distribution and supply Chain Management
Importance in the African Continent

1. Manufacture of Pesticides in the sub-sahara
   Africa is mainly happening in South Africa.
2. In the east, central and western Africa,
   Pesticides are mainly imported ready for use (or
   for easy dilution just before application)

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Distribution and supply Chain Management
Importance in the African Continent

• The distribution and supply chain management of
  pesticides has several challenges
• 1.1 Registration
• - Pesticides are regulation in
• - varying degree and intensity.
• - Operation in more than one country in eastern
  Africa have the task of identifying the
  regulatory requirements and comply.

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Distribution and supply Chain Management
Importance in the African Continent

• 2. Safety the use of pesticides requires a level
  of safety measures initially dictated by the
  level of toxicity of the products but further
  dictated by the consumers. Where the use of the
  pesticide is of international commercial level,
  the safety requirements may be dictated by
  authorities well beyond the registrants in the
  local individual countries.

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Distribution and supply Chain Management
Importance in the African Continent

• 3. Proper use the level of literacy is paramount
  in the interpretation of what are the appropriate
  methods of handling a pesticide. It is this not
  just whether the labels are appropriate but
  beyond the label, the question of internalizing
  the need to properly use and apply the pesticide
  is related to level of literacy in the region.

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Distribution and supply Chain Management
Importance in the African Continent

• 4. Affordability the poverty index in the region
  is quite high compared to other regions in the
  world. This dictates the land use parcel size and
  crop type. In terms of distribution of the
  pesticides, the smaller the parcels of land the
  smaller the pack sizes that are used to deliver
  the pesticides to the farms.  

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Distribution and supply Chain Management
Importance in the African Continent

1. The stake holders have a reason to look for
   platforms for decision making
2. To find the most efficient Chemical production
   systems closer to the industry.
3. The most economical distribution systems
   passing the advantages to the farmer
4. Finding the safest methods of operating with
   chemicals as the necessary evil for now

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Distribution and supply Chain Management
Importance in the African Continent

1. Speaking for Africa today
2. Collaboration with India and China is currently
   the most sexy business lifestyle.
3. Managing to find partners where quality will be
   assured is the main challenge that new
   partnership seekers have to contend with.
4. Business is a love story (Not a marriage) one
   has to be always ready to change with the
   business trends when the tide changes (They
   always change).

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Distribution and supply Chain Management
Importance in the African Continent

• Use this forum wisely and may all our businesses
  thrive in 2013 going forward.
• END !