Groundnut Value Chain Development Project
Strengthening the groundnut value chain from farm to market through quality systems, certified aggregation, and export market access for member farmers.
Programme photo
Programme Objectives
- Establish export-grade groundnut aggregation centres at 15 district associations
- Implement aflatoxin management protocols meeting EU and Asian import standards
- Negotiate direct supply contracts with export traders and processors
- Provide input financing to ensure adoption of certified groundnut seed varieties
Groundnuts are among the most important income crops for NASFAM member households in the Central Region, yet the value farmers capture from groundnut production has historically been constrained by fragmented supply, inconsistent quality, and limited direct access to export buyers who offer premium prices for well-graded, low-aflatoxin produce. The Groundnut Value Chain Development Project addresses these constraints at every stage of the value chain.
Aggregation centres established at 15 district associations are equipped with solar-powered grain cleaners, moisture meters, and aflatoxin testing kits. Certified quality officers at each centre assess incoming groundnut lots, segregate by grade, and maintain traceability records linking each batch to its originating farmer group. This traceability system is a requirement of several export markets and has been a key enabler of direct buyer relationships.
The project has facilitated direct contracts with export trading houses for export-grade groundnut lots, eliminating several intermediary layers that previously absorbed value between the farmer and the end market. Participating farmers who produce export-grade lots receive prices that are on average 28% higher than prevailing district market rates, with payment made directly to group bank accounts within a defined number of days of delivery.
Input financing through a collaborative arrangement with a rural financial institution provides participating farmers with access to certified groundnut seed on a repayment plan structured around the harvest cycle, removing the upfront cost barrier that previously prevented widespread adoption of higher-yielding, aflatoxin-resistant varieties. Repayment rates have been strong, supported by the guaranteed offtake arrangements that give farmers confidence in their expected income at harvest.
Programme Partners