30th July 2015….. Agriculture continues to be an integral part of the Kenyan economy and investment in the sector is therefore not only critical for economic development but for providing the rural communities, majority of who depend on the sector, with enhanced quality of life by increasing their incomes through increased production and better access to markets.
John Deere understands the importance of food security and the importance of having a sustainable agricultural sector. Given the importance of the smallholder farmer in Africa, “John Deere aims to assist in creating a system whereby smallholder farmers can improve their efficiencies at all levels: efficiency in input procurement, production efficiency through access to new technology (seeds, fertilizer and mechanization) as well as efficiencies in the marketing of agricultural commodities,” says Jacques Taylor, Managing Director (John Deere Financial Sub Saharan Africa).
Speaking at the Kitale Out Post Event, Chase Bank Kenya’s Head of Agri Business Samuel Ndonga said “Chase Bank has identified access to quality inputs, good agricultural practices (GAPs), mechanization, post-harvest management solutions and access to fair markets as the critical areas that need interventions and has partnered with various organizations from the private sector, non-governmental organizations and government agencies in order to bring sustainable solutions that are aimed at bringing economic transformation to rural communities.”
The collaboration with John Deere Financial is aimed at bringing mechanization solutions that include tractors and implements to farmers at competitive interest rates with the sole purpose of enabling them to maximize their yields per acreage by moving from traditional to mechanized agricultural production.
In a world that is becoming increasingly food-insecure, due to population growth, climate change, volatile food prices, unequal food access, and inefficient supply chains, it is essential that solutions are found to feed over 9.5 billion people by 2050. Throughout modern history it has been shown time and again that agricultural technologies are at the heart of greater yields and thus food productivity growth.
John Deere understands that the smallholder farmer might not be able to afford or justify the expense of the required capital investment in technology. “With innovative finance solutions, John Deere aims to support the existing emerging commercial and -contractor segment and to develop new contractors to serve the smallholder farmer, allowing the small holder farmer to have access to mechanization technology via a contractor model,” says Taylor.
In response to this market gap, John Deere Financial, working in collaboration with Chase Bank and the local John Deere dealers, has developed an innovative finance solution focusing on emerging commercial farmers and emerging mechanization contractors that offers improved access to credit and addresses the cost of credit. This finance solution, that facilitates access to mechanization for smallholder farmers, is expected to aid farmers in achieving improved cultivation practices, higher yields, and ultimately increased household incomes.
To further support emerging commercial farmers and emerging contractors, John Deere and Mascor offered the first Dealer Outpost Day in Kitale supported by various Agricultural stakeholders who included Bayer, Monsanto, CGA, YARA, Kenya Seed and Soil Cares. This day offered operator training, an in-field demo experience, business training (including cash flow management), agronomic skills and a finance solution offering through Chase Bank to equipment purchasers.
Mascor, as one of the registered John Deere dealers in Kenya, believes that mechanised solutions are the only way to meet the world demand for food. To effectively utilise the potential of mechanisation farmers need access to reliable, efficient back-up service, parts and training. Through Chase Bank and John Deere’s collaboration we can ensure that emerging commercial farmers and part time contractors do not only have access to new technology, but also the back up and support from Mascor to make it work sustainably.
For Information contact:
Head of Brand, Chase Bank
Head of Marketing, Chase Bank
About Deere & Company
Deere & Company (NYSE: DE) is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land - those who cultivate, harvest, transform, enrich and build upon the land to meet the world's dramatically increasing need for food, fuel, shelter and infrastructure. Since 1837, John Deere has delivered innovative products of superior quality built on a tradition of integrity. For more information, visit John Deere at its worldwide website at www.Deere.com
About Chase Bank
Chase Bank (K) Ltd was incorporated in 1995. The Bank received awards for being the Best SME Bank 2013, Fastest Growing Bank in Kenya in 2009 and 2010, as well as a special award for product innovation, at the Banking awards 2011 and 2013 in recognition for their role in creating innovative products for the SME market.
Chase Bank places a keen focus on the SME and the provision of innovative products for this ever growing market. The Bank, modeled around relationship banking provides its customers with value added services like Bank Assurance, Bank Brokerage, and off shore investment opportunities with the aim of improving their overall customer experience.