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Agri11 workshop v-tbtc

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  • 1. The Better Trading CompanySmall Scale Farmer Chilli Business ModelOctober, 2011
  • 2. What’s The Presentation About ? Overview and Learnings from small scale Tabasco chilli farmer model in Zimbabwe Sustainable commercial farming model for small rural farmers Holistic Business Model Critical for Success  Key Elements
  • 3. BACKGROUNDThe Better Trading Company is a dynamic, for-profittrading company that acts as an ethical agent. We connectleading retailers and markets with exceptional horticulturaland agricultural entrepreneurs in Southern and EasternAfrica.Better Agriculture is a dedicated agricultural consultancycompanyShell Foundation partners in East and Southern Africa
  • 4. Tabasco Chilli Project Example Awarded the Technoserve “ Agri-Innovation Business Model Award” August 2011 2010 growing season pilot project 2011 growing season increased to 230 farmers Both rain and irrigation assisted plantings Approximately 75 % women growers 2012 target of 700 farmers producing 650 t
  • 5. Better Business ModelKey Project Points Provided rooted seedlings (better crop establishment) Provided fertilizers and chemicals Provided training and agronomic consultancy Signed contracts with growers Set price and payment terms Input finance recovered from crop deliveries Revolving grant fund established to continue to provide crop finance next season Growers organised into small “self policing” teams Grinding and transport provided
  • 6. Results and SuccessesMinimum producer price $/kg 0.50 Expected yield kg/ha 5,000Producer costs $/ha $843 Gross Return $/ha $ 2,500Profit/(loss) $/ha $1,657 $ return: $ invested - 2.97Break-even yield ton/ha 1,686 Return to family labour $/day $5.71
  • 7. The Better• Measure, Monitor and Report• Comprehensive baseline study completed• Focus on economic, social and environmental issues• Measurement of impacts - New farmers - Jobs - Livelihoods improved - Financial impacts - Health• Revolving Grant growing fund for growers• Reported to board and Shell Foundation
  • 8. Learnings and ChallengesLearnings Holistic model essential for success Trust and support of community Cropping finance (revolving grant) Regular cash payments Training and agronomy supportChallenges Side marketing Identification of suitable growers Securing revolving grower input fund
  • 9. The Future – Vision and Goals• Scale up project 700 farmers in 2012• Application of model and learning in other cropping sectors• Regional possibilities
  • 10. Contact Details Stephen Wormald- stephen@thebettertradingcompany.com- Office +27-21-4471995 Nigel Dorward- nigel@thebettertradingcompany.com- Office +27-21-4471995