How to source from small-scale agricultural producers <br />Dr Lea Borkenhagen  and  Jo Zaremba<br />
Take Home Messages<br />Having smallholders in supply chains is now core business<br />It is doable and you can make it ha...
Outline<br />Drivers changing sourcing practice<br />What smallholder agriculture can do for your business<br />What your ...
Abbie Trayler-Smith<br />Drivers changing  sourcing practice<br />
Drivers changing sourcing practice<br />Consumers <br />Managing risk in the supply chain<br />Reducing Rising Costs<br />...
What smallholder agriculture can do for<br />your business<br />
Smallholder agriculture and your business<br />New sources of supply<br />Productivity increases<br />Transparency<br />De...
Smallholder agriculture continued<br />Consumer satisfaction<br />Brand<br />R&D<br />Company change<br />
What your business can do for development<br />
What your business can do for development<br />Investment in smallholder agriculture pays<br />Small corporate investments...
Case Studies<br />
Body Shop – The company & Market<br />Started 1976<br />Ethical values and community trade<br />BRAND depends on traceabil...
Body Shop – Business Model<br />Manufacturing –commercial contractors required to meet ethical codes of conduct, including...
Body Shop – Outcomes & Benefits<br />Producers:<br />Direct benefits to producers & families:  fair price (income); foreca...
Plenty Foods – The company & market<br />
Plenty Foods – Business Model<br />Manufacturing / Processing<br />Fully owned by Plenty Foods<br />Sourcing<br />Majority...
Plenty Foods – Outcomes & Benefits<br />Producers<br />Guaranteed floor price<br />Capacity building; access to services; ...
Oxfam and Marks & Spencer: Finding Common Ground<br />
Oxfam & Marks & Spencer: Mali Cotton Initiative<br />Oxfam:<br /><ul><li>Targets 70% of 8,250 farmers at sustainable yield...
Promoting rural women’s empowerment
Increasing farmer organisations’ autonomy & effectiveness</li></ul>Marks & Spencer:<br /><ul><li>80 tonnes in 2007, 160 in...
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How to source from small scale agricultural producers

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How to source from small scale agricultural producers

  1. 1. How to source from small-scale agricultural producers <br />Dr Lea Borkenhagen and Jo Zaremba<br />
  2. 2. Take Home Messages<br />Having smallholders in supply chains is now core business<br />It is doable and you can make it happen<br />
  3. 3. Outline<br />Drivers changing sourcing practice<br />What smallholder agriculture can do for your business<br />What your business can do for development<br />Examples: Body Shop, Plenty Foods, Marks & Spencer<br />
  4. 4. Abbie Trayler-Smith<br />Drivers changing sourcing practice<br />
  5. 5. Drivers changing sourcing practice<br />Consumers <br />Managing risk in the supply chain<br />Reducing Rising Costs<br />Others are doing it<br />Governmental Policy<br />
  6. 6. What smallholder agriculture can do for<br />your business<br />
  7. 7. Smallholder agriculture and your business<br />New sources of supply<br />Productivity increases<br />Transparency<br />Development costs offset<br />
  8. 8. Smallholder agriculture continued<br />Consumer satisfaction<br />Brand<br />R&D<br />Company change<br />
  9. 9. What your business can do for development<br />
  10. 10. What your business can do for development<br />Investment in smallholder agriculture pays<br />Small corporate investments can support large-scale change <br />Getting it right for women is critical<br />Long term gains: more political stability, better opportunity for business<br />
  11. 11. Case Studies<br />
  12. 12. Body Shop – The company & Market<br />Started 1976<br />Ethical values and community trade<br />BRAND depends on traceability & quality = ethical reputation<br />65%+ “wet product” contains CT ingredients<br />31 suppliers in 23 countries<br />>25,000 direct beneficiaries<br />
  13. 13. Body Shop – Business Model<br />Manufacturing –commercial contractors required to meet ethical codes of conduct, including FAIR PRICE<br />Sourcing – all CT ingredients traceable to Body-shop-nominated producer groups (E.g. ethanol from CADO)<br />Supplier assessment to assess ‘fit’: <br />Community organisation<br />Community needs<br />Direct benefits<br />Commercial viability<br />Environmental sustainability<br />Work WITH communities to develop capacity / avoid ‘dependency’<br />
  14. 14. Body Shop – Outcomes & Benefits<br />Producers:<br />Direct benefits to producers & families: fair price (income); forecast demand; community fund projects<br />Company:<br />Sustainable, dependable, quality ingredients<br />Customers:<br />Products meeting their expectations in terms of ethics & quality<br />“If you can’t hear the voice of the farmer in everything that you do then what you are doing is wrong.” Anita Rodrick<br />
  15. 15. Plenty Foods – The company & market<br />
  16. 16. Plenty Foods – Business Model<br />Manufacturing / Processing<br />Fully owned by Plenty Foods<br />Sourcing<br />Majority of inputs directly from farmers<br />Additional ingredients (sugar / coconut / vitamins etc.) from market<br />Production<br />Forward contracts / guaranteed floor Price<br />Multi-stakeholder approach (Government, NGOs; Business)<br />Farmer organisations or individuals<br />Facilitate Service provision (loans; insurance)<br />Input provision, training, capacity building<br />
  17. 17. Plenty Foods – Outcomes & Benefits<br />Producers<br />Guaranteed floor price<br />Capacity building; access to services; viable business<br />Company:<br />Reliable supplier base (quantity; quality; price)<br />‘Image’ - Trust bt. company & producers<br />Brand reputation/vision & objectives<br />Customers:<br />Trust in company<br />Reliable, quality, price worthy<br />products<br />‘Farmers interests are absolutely our interests – we are committed <br />to their profitability.’ <br />Mohan Rattwate, CEO<br />
  18. 18. Oxfam and Marks & Spencer: Finding Common Ground<br />
  19. 19. Oxfam & Marks & Spencer: Mali Cotton Initiative<br />Oxfam:<br /><ul><li>Targets 70% of 8,250 farmers at sustainable yields by 2011 (est. 600kg/ha)
  20. 20. Promoting rural women’s empowerment
  21. 21. Increasing farmer organisations’ autonomy & effectiveness</li></ul>Marks & Spencer:<br /><ul><li>80 tonnes in 2007, 160 in 2008 and 120 in 2009 for Childrenswear
  22. 22. Promoting sustainable cotton & committing to Fairtrade cotton
  23. 23. Partnerships with Oxfam and Helvetas</li></li></ul><li>Oxfam & Marks & Spencer: Clothes Exchange Programme<br />Since launch in January 2008 <br /><ul><li>saved over 2000 tonnes of M&S clothing from landfill
  24. 24. raised over £2 million for Oxfam.</li></li></ul><li>www.oxfam.org.uk/business<br />email betterbusiness@oxfam.org.uk<br />

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