LishaBora Hydroponics
Agriculture to End Poverty
www.lishabora.com
Graham Benton
Managing Director
[email protected]
Skype: grahamgoslingbenton
Kenya: +254 (0) 703 748 516
US: +1 (610) 836 2402
Our Vision
LishaBora believes in the elimination of poverty
through innovation and education in the dairy
sector in Kenya. We believe poverty is systemic
and is created by the systems in which farmers
operate. That many of the 1.8 million dairy
farmers earn less than 2.00 USD a day is
attributed to the low quality and high cost of
dairy feed currently available in the market. A
much more nutritious and affordable product is
possible. LishaBora is disrupting the product,
distribution model, and supply chain of the
dairy industry in Kenya. We create dairy feed
that is nutritious and affordable in order to raise
the amount of milk produced by smallholder
dairy farmers. We envision an Africa with a
strong dairy sector that not only feeds the
communities in which we operate, but an
Africa that feeds the world.
Customer Problem
Low Quality Feeds
1/3rd
What Kenyans’ feed
their cows is is more
often bellow
national standards
then above them.
The low quality and
high cost of these
unregulated feeds is
the primary reason
for low milk yields.
Farmers are
producing an
estimated 1/3rd of
their potential. This
lost potential
represents over
1,000 USD per cow
per year.
The Product
LishaBora sells barley fodder grown in greenhouses to smallholder dairy
farmers to replace current high cost, low quality feeds.
Natural Organic Plant
More Palatable
High Level of Nutrients
and Protein
Results in Higher Milk
Production
Hydroponics: The growing of
plants without soil.
Ratio of 1 Dry Product: 2
LishaBora’s Fodder
Cow’s eating 8-10 Kgs of
LishaBora’s Fodder per day
Market Potential
1.8 million
Number of smallholder farmers with 2-3 cows in Kenya in 2008.
With population growth at 2.7% annually, this number has only
gone up
80%
Percent of milk produced on the formal market by smallholder
farmers
70%
Estimated percent of total milk production that is represented by
the informal market, which is almost entirely smallholder
production
5%
1.2 billion USD
East Africa and
Beyond
Percent of the GDP represented by the milk production of
smallholder farmers.
Smallholder farmers collective purchasing power for feeds annually.
With Tanzania, Uganda and Rwanda apart of the Eastern African
Community with Kenya transferring LishaBora’s scalable business
model can be done with minimal barriers to entry.
Traction
Payback
✔
We have proven we are able to build an
affordable system that has a payback of less
than two years.
Impact
✔
We have proven that the fodder increases
smallholder milk yields and reduces their costs.
✔
We have proven that people are willing to buy
the product and use it on a daily basis, paying
monthly.
✔
We have proven that we can distribute this to
farmers who pick it up from central locations.
Market
Distribution
Yields
✔
We are working to get yields of 6 kilograms of
fodder from 1 kilograms of seed. We have
achieved 90% of this but not consistently.
Impact Example
19% Increase in Profit
Dairy Meal– 1.17 USD
Milk Sales – 3.23 USD
Profit – 2.07 USD
Fodder – 1.20 USD
Milk Sales – 3.66 USD
Profit – 2.46 USD
Business Model
Product
•
•
Our fodder is grown in our off-grid system where barley seeds are germinated, planted and grown for nine days
We continue to own and operate the systems while farmers buy the fodder in amounts based on their needs, giving our
systems less then two year pay-back at scale.
•
By operating in a low cost environment, we are able to sell a more nutritious product at 0.15 USD a kilogram versus
0.30 – 0.45 USD a kilogram for other concentrate feeds at a 50% gross margin.
We are selling to smallholder farmers with 2-10 cows and helping them meet their targets of milk production
Sales
•
•
•
Greenhouses are based close to the farmers reducing last-mile distribution costs for the farmers
Fodder is picked up at the greenhouse or at ‘drop points’ in nearby surrounding areas such as dairy collection centers,
this does not add any cost to the farmer and does not change what they need to do in a day.
Marketing
•
•
•
We are creating a ripple effect in nearby communities by word of mouth of increased milk production
As we scale we will use local sales teams as well as partnering dairy cooperatives and associations
When we reach 30 systems and meet the needs of 2,000 farmers, we will be able to sustain our own growth in Kenya
Technology
•
•
•
We are developing a fully off-grid and low cost hydroponic system that will require inputs only once every few months
By using only local materials and simple technologies, we can ensure operating in remote communities continuously
As we scale, we will incorporate remote monitoring and automation, allowing us to collect data and monitor all our
systems using a computer.
Distribution
Competitive Advantage
Ownership
Innovation
Quality
We are the only
hydroponic company
in Kenya that sells
barley fodder. Other
hydroponic
companies sell the
systems to the farmers
which are costprohibitive.
Systems sold by other
companies are
expensive and over
engineered. We are
innovating at as low
cost as possible to be
able to offer our
product at a
competitive price.
We offer a final, high
quality product for a
set price. Other
hydroponic
companies require
the farmer to source
the seeds, water and
nutrients to grow their
feed.
Cow Feed Concentrates
Home Grown Fodder
LishaBora’s Fodder
Timeline
Piloting
Commercial
Proof
Scaling
Regional
Jan 2015- Today
2016
2017-2019
2020
Exits
Proven market, impact
and distribution
Continue to develop
and standardize
greenhouse and
hydroponic design.
One Greenhouse Selling
70 Kgs to 7 Customers
Target Dates
Potential Annual
Additional Number of Small
Revenue by
Customer
Holder Farmers
LishaBora (USD) Income (USD)
1 Year Projection
October 2016
688,285.71
3 Year Projection
October 2018
3,504,000.00
5 Year Projection
October 2020
62,571,428.57
335,539.29
550
1,708,200.00
2800
30,503,571.43
50,000
5,000 – 15,000 USD Greenhouse Cost to Produce
500 – 1,500 Kilograms of Fodder
1. Being bought
out by large
conglomerate
2. Merging with other
Service/rural
distribution
Company
3. Merging with
feeds Producer
20,000 USD Greenhouse
to Produce 2,000 Kgs
Social and Environmental Impact
Environmental
Social
Increasing Yield
Reducing Costs
Women
.62 Kilograms
We have seen an
increase between 12%
and 25% in milk yields. This
often represents a much
larger increase of gross
margin received by the
farmers
Farmers have seen a
cost reduction of up to
15% over traditional
feeds. This helps further
increase the
profitability of
smallholder dairy
farming
As women are the
primary owner of cows,
extra income will feed
in socio-economic
benefits such as school
fees and health
insurance.
Amount of carbon
produced from one
kilogram of Dairy Meal.
We have no industrial
processes and operate
off grid resulting in our
product having a low
embodied energy.
The Team
Graham Benton
Managing Director
Niraj Varia
Angel Investor and
Primary Advisor
David Lipinski
Director of
Technology
Elizabeth Magnussen
Director of
Operations
Engineers Without
Borders
American Expat
Kenyan
Canadian
Canadian
Organization
•
•
•
Four years
experience with
smallholder
farmers
Field Director of
Takamoto
Biogas
•
•
•
MD of Takamoto
Biogas
Over five years in
social impact sector
Investment Director
and NovaStar
Ventures
•
•
Bachelor in
Biosystems
Engineering
One year
experience with
MacDon
Industries
•
•
Bachelor in
Chemical
Engineering
Four years
experience with
Agrium Inc. in
Canada
•
Driven to proved
early stage capital
and human
resources
Provides logistical
and business
support in order to
help see business
succeed.