Durabilis. Geneva, 3rd October 2014

Transcription

1 Durabilis

2 Agenda 1 Durabilis 2 Our shared value model 3 Our experience in the field 4 Conclusions 2

3 1 Durabilis 3

4 We se attractive business opportunities in agro value chains that have a positive impact on people s lives Unlike a typical business, we create measurable social impact alongside a financial return Unlike a charity organisation, we aim to generate our social impact through the businesses we run Key Figures 2013 million turnover 20 tonnes fruit & vegetables exported 2800 million drinks for the BoP 110 tons white rice for the BoP 80 workers 2290 FTE jobs 700 smallholders

5 3 key Business Units FairFruit Vegetables Mangos Linking farmers to high value markets Barajii Beverages Processed foods for the Bottom of the pyramid Terral Rice Local rice for local consumption

6 2 Our shared value model 6

7 We link people to formal economies by investing in and managing sustainable agro & food businesses in low income countries Mission statement 7

8 We create jobs and we provide farmers and other supply chain partners with a better income Impact ambitions 8

9 Work and Trade alone do not necessarily lead to poverty reduction We therefore need to rethink our relationship with our workers and suppliers How to create Shared Value? 9

10 We see attractive business opportunities by growing sustainable agrovalue chains with considerable positive impact on people s lives Forward-looking customers are willing to invest in their future supply In return, they ask for impeccable quality Leadership in quality food products in attractive markets Competitive supply chains which satisfy new market requirements Broadening scope, addressing 4 needs in developing countries: access to markets The demand for increased food safety & social responsibility Must be addressed through collaboration Which in turn drives efficiency and effectiveness access to capital access to knowledge Qualitative jobs Empowering employees, farmers and other supply chain partners 10

11 3 Our experience in the field 11

12 Vegetables 130 smallholders 8 years experience in trimmed and washed peas & beans from Guatemalan smallholders Premium price from meeting strict requirements for high-end markets: BRC, GLOBAL.G.A.P., BSCI, FLO, Fairtrade USA 12

13 Mangos 60 Nucleus farms serve as learning and extension centres smallholders 6 years of selling mangoes to the ready-to-eat market segment in Europe 13

14 606 Solid social responsibility policy and management workers 268 FTE jobs Highest quality beverages in the sachets market 14

15 60 Fresh long grain rice from smallholders to Dakar s urban Base of the Pyramid market smallholders Local rice consumption stimulated by national and international authorities 1

16 Conclusions 16

17 Lessons learned Value added helps Margin allows long term vision It s a chain exercise Matching volumes Enabling prices Working capital Rather sales programmes than spot market Contracts with both suppliers & customers It s crucial to use the right incentives Certification Timing Quality It takes time to build a viable supply base Trust Performance Logistics Make sure to have a sponsor Either consumer, customer donor, or shareholder 17

18 Challenges How to measure the impact of inclusiveness Number of farmers? Farmer income? Profit? ROI? Improved yield? Quality? Farmer satisfaction? Household parameters? Soil health? Farmer interviews? high expectations from SENSEMAKER How to engage the downstream chain actors? Price vs. impact business case 18

19 Thank you! 19

20 Lessons learned Value added helps It s a chain exercise Rather sales programmes than spot market Crucial to use the right incentives It takes time to build a viable supply base Costs are higher, make sure you have a sponsor Margin Matching volumes Enabling prices Working capital Quality, food safety & SR requirements Contracts - Suppliers - Customers Certification Timing Quality & food safety Trust Quality & food safety Logistics Either consumer, customer or donor 20

21 Challenges How to measure the impact of inclusiveness How to engage the downstream chain actors? Number of farmers? Farmer income? Profit? ROI? Improved yield? Quality? Farmer satisfaction? Household parameters? Soil health? Farmer interviews? high expectations from SENSEMAKER Price vs. impact business case 21

22 As impact investing company Durabilis invests in and manages agribusiness value chains with the aim to stimulate sustainable development, linking smallholders to formal economies. Engaging with smallholders has always been at the core of the business. Durabilis has a long experience in Guatemala working with +/- 100 smallholders (peas and beans). This experience has led to expand business activities to work on mangoes and rice in W-Africa. Bert will bring concrete cases, what are the incentives to engage with smallholders. How has their business evolved. What works, what did not. What goes well, and what are the bottlenecks and challenges? (for export markets challenges are related to food safety and supermarkets losing trust in smallholders, for rice for example for the local market the challenges remain good production (quality and volumes), steady supply etc. One of the big challenges for the organisation is to measure what they do. What is the impact on the livelihood of smallholders? Durabilis is developing together with VECO a framework to measure (using the Sensemaker methodology) 22