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Report from Cambodia Visit

  BOP Lab Dialogue 05/09/2011
contents
• CEDAC and Farmer Community
• KAMONOHASHI and Community Factory
• Symposium 19th and 20th
  – iDE Cambodia
  – Impact Investment Exchange Asia
CEDAC and Farmer Community
Background of CEDAC
• Set up 2007, started with 7 employees
• Main Goals: reconstruction of infrastructure, poverty
  reduction, sustainable agriculture.
• Today CEDAC has around 300 employees, working in 1,200
  villages in 20 provinces.
• CEDAC marketing support to farmers started in 2004
• First shop opened originally it focused on organic rice
• Expansion of marketing activities in 2008 by setting up CESE
  to increase organic rice trade, diversify products.
• In 2009 CEDAC SAHAKREAS was registered as a Trade and
  Exporter of rice. Today there are 11 CEDAC shop in Phnom
  Penh.


                              *Quoted from the documents of the Conference
Structure of SKC’s Business Model                   Local Markets


  CEDAC                                                     CEDAC Shops

   Empowerment
                                          SKC
 Community Mobilize          Processing
                             Packaging
                                                         Foreign Markets
 Farmer Federation                                            Currently US only



                      Fair Price Negotiation with   Other NGOs & SEs
                           Federation Leader
Farmers

                  Farmer Community
Social and Economic Impacts
• Ca. 3,000 farmers deliver directly to CEDAC.
• Price 10% higher than average and stable linkage
  to market.
• Ca. 25,000 households benefit indirectly of
  CEDAC price policy and group forming.
• Farmers and Consumers are aware of health
  benefits of organic products & environment.
• Profit will be shared or returned to development
  activities.

                         *Quoted from the documents of the Conference
Notes from Farmer Community
•   2.5 hours from Phnom Penh
•   100 households 400-450 people in community
•   60% mobile, 90% microfinance, no PC.
•   Key Findings
    – Additional Investment Needs
    – Community willing to lend money to harvest more
    – Rely on MF because of the payment delay
    – People unwilling to be in the community
Challenges
• Producer Group functioning and registration.
• Capital for procure organic paddy rice.
• Comparison of prices with other traders (higher prices
  after CEDAC higher).
• For the export markets neighbor countries are more
  competitive (cost, missing infrastructure)
• Other organization distribute pesticides, chemical
  fertilizers and seed for free.
• Certification process is very costly.
• Missing support for awareness rising on food security.

                            *Quoted from the documents of the Conference
KAMONOHASHI
and Community Factory
Structure of KAMONOHASHI
And its CF business
                                          Local Markets
          Police Empowerment

                Saving Children               Foreign Markets

                    KAMONOHASHI
Community Factory
                      CF Business
                Research on Employee   Future collaboration
                   Empowerment
                 Community Mobilize
                                       with Companies??
Notes from KAMONOHASHI 1
• Main Figure
   – Targeting Only “Bottom” of the
     Pyramid
   – Research on income, family condition,
     or household spending
   – Monthly Income $32- 48 ($1/D)
   – + Bonus Scheme
• Profit??
   – Deficit balance of CF (50%??)
   – 20-30% non-normal manufacturing
     costs (Empowerment, Community
     Mobilizing)
   – Planning to divide the cost from CF
     balance
Notes from KAMONOHASHI 2
• Production and Marketing
   – 2% defective rate
   – Main market: Local Market for Souvenirs
• Challenge:
   – Quality Management
   – Marketing or Production: Production is challenging
• Collaboration with Business
   – 40%??
   – Get Know-how of CF
   – Collaborate with Business in CF
Rin-san’s situation
• Rin-san working for KAMONOHASHI CF business.
• One elder sister working for framing and occasionally fishing,
  crafting or other works.
• One child aged 4-5?? No work.
• Both parents have died for cancer.
• Rin-san $30-40 per month.
• Sister $30?? With high volatility.
• No mobile. TV, but no electricity. Battery charged on the street.
• Small saving, but mainly for seasonal event ex Obon.
• Sister wants to work at CF.
• Do not work at the city.
• Satisfied with the situation where all family can live together??
Conference on
 “Social Enterprise: Developing the social economy and
generating sustainable and creative solutions to poverty
                  and social exclusion”

              1. iDE Cambodia
     2. Impact Investment Exchange Asia
iDE Cambodia
International Development Enterprise
• 1. Igniting the Sanitation Market: socially
  designed toilets for the rural poor
• 2. Farm Business Advisor Program (FBA)
1. Igniting the Sanitation Market: socially
        designed toilets for the rural poor
• Sanitation Marketing
  – Develops sustainable business that create demand for
    sanitation products and services.
  – Supplies those products and services t better serve
    the needs of low-income households.
  – The marketplace for sanitation existed already, there
    were suppliers and demand from customers.
  – YET, In Cambodia above 80% of the rural population
    did not have a latrine = HUGE Market Potential
  – And after ODF-still a need for Markets

                           *Quoted from the documents of the Conference
Sanitation Marketing Pilot Program
• The project was supported by both WSP and
  USAID with over a 21-month period.
• The project target was to sell 10,000
  household latrines in two provinces using a
  market based approach with no sanitation
  hardware subsidy.




                       *Quoted from the documents of the Conference
Program Phases
• Phase 1: Research & Design
   –   Human Centered Design
   –   Supply & Demand Studies
   –   No option between $0 and $100+
   –   The Easy Latrine
• Phase 2: Proof of Concept/ Refinement
   – Actively do Sales and Marketing
     Distribution/transportation work with local government.
• Phase 3: Full Market Launch
   – Demand creation
   – Profit Drives Motivation
   – Failure IS an option

                                *Quoted from the documents of the Conference
Results (or Impact)
• 22,000 latrines sold in 16 month
• Sales in over 1,00 villages (Ripple Effects)
• 16 entrepreneurs trained, 8 copies, 39 other value
  chain enterprises benefited
• 83-93% “Extremely” Very Satisfied
• Easy Latrine owners tend to be poorer than non-latrine
  owners (targets lower-middle income)
• Bottlenecks: transportation and stock investments
• 167% avg: increase in sales over base rate
• 111% avg: increase investment in sanitation

                           *Quoted from the documents of the Conference
2.Farm Business Advisor Program
• The aim of the FBA franchise is to facilitate a
  sustainable, demand-driven system to deliver
  productivity-enhancing products and services
  to smallholders in Cambodia.
• Winner of the Nestle’ Prize for Creating
  Shared Value (CSV) 2010.
Objectives    Business Proposition            Sustainability



                                                            Farmer
                                                            Clients
Agricultural
                                            FBA
 Products
                                         Franchises

                                                            Farmer
                                                            Clients
                  Franchisor                 FBA
Information
                                          Franchises



                                                                Farmer
                                             FBA
  Credit                                                        Clients
                                          Franchises



                            *Quoted from the documents of the Conference
Farm Business Advisor Program
• FBAs are independent micro-entrepreneurs
  who provide high-quality agricultural products
  and advice to small-scale farmers with a
  customer first orientation.
• Franchise not just to sell, but enable BOP to
  become more effective.
• Farmer clients might lack at good quality
  inputs, irrigation, credit, know-how, and
  market information.

                       *Quoted from the documents of the Conference
2. Impact Investment Exchange Asia
• IIX is itself a Social Enterprise with a social
  mission:
    – To provide Social Enterprises in Asia with greater
      access to capital, allowing them to more rapidly
      expand the impact of their activities.
•   Exchange Platform for Shares and Bonds.
•   Requirement for listing.
•   Reporting obligation of Social Enterprise.
•   2012, Social Stock Exchange will open??
Check Website!!
Thank you!!

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カンボジア報告用Ppt

  • 1. Report from Cambodia Visit BOP Lab Dialogue 05/09/2011
  • 2. contents • CEDAC and Farmer Community • KAMONOHASHI and Community Factory • Symposium 19th and 20th – iDE Cambodia – Impact Investment Exchange Asia
  • 3. CEDAC and Farmer Community
  • 4. Background of CEDAC • Set up 2007, started with 7 employees • Main Goals: reconstruction of infrastructure, poverty reduction, sustainable agriculture. • Today CEDAC has around 300 employees, working in 1,200 villages in 20 provinces. • CEDAC marketing support to farmers started in 2004 • First shop opened originally it focused on organic rice • Expansion of marketing activities in 2008 by setting up CESE to increase organic rice trade, diversify products. • In 2009 CEDAC SAHAKREAS was registered as a Trade and Exporter of rice. Today there are 11 CEDAC shop in Phnom Penh. *Quoted from the documents of the Conference
  • 5. Structure of SKC’s Business Model Local Markets CEDAC CEDAC Shops Empowerment SKC Community Mobilize Processing Packaging Foreign Markets Farmer Federation Currently US only Fair Price Negotiation with Other NGOs & SEs Federation Leader Farmers Farmer Community
  • 6.
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  • 9. Social and Economic Impacts • Ca. 3,000 farmers deliver directly to CEDAC. • Price 10% higher than average and stable linkage to market. • Ca. 25,000 households benefit indirectly of CEDAC price policy and group forming. • Farmers and Consumers are aware of health benefits of organic products & environment. • Profit will be shared or returned to development activities. *Quoted from the documents of the Conference
  • 10.
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  • 13. Notes from Farmer Community • 2.5 hours from Phnom Penh • 100 households 400-450 people in community • 60% mobile, 90% microfinance, no PC. • Key Findings – Additional Investment Needs – Community willing to lend money to harvest more – Rely on MF because of the payment delay – People unwilling to be in the community
  • 14. Challenges • Producer Group functioning and registration. • Capital for procure organic paddy rice. • Comparison of prices with other traders (higher prices after CEDAC higher). • For the export markets neighbor countries are more competitive (cost, missing infrastructure) • Other organization distribute pesticides, chemical fertilizers and seed for free. • Certification process is very costly. • Missing support for awareness rising on food security. *Quoted from the documents of the Conference
  • 16.
  • 17. Structure of KAMONOHASHI And its CF business Local Markets Police Empowerment Saving Children Foreign Markets KAMONOHASHI Community Factory CF Business Research on Employee Future collaboration Empowerment Community Mobilize with Companies??
  • 18.
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  • 22. Notes from KAMONOHASHI 1 • Main Figure – Targeting Only “Bottom” of the Pyramid – Research on income, family condition, or household spending – Monthly Income $32- 48 ($1/D) – + Bonus Scheme • Profit?? – Deficit balance of CF (50%??) – 20-30% non-normal manufacturing costs (Empowerment, Community Mobilizing) – Planning to divide the cost from CF balance
  • 23. Notes from KAMONOHASHI 2 • Production and Marketing – 2% defective rate – Main market: Local Market for Souvenirs • Challenge: – Quality Management – Marketing or Production: Production is challenging • Collaboration with Business – 40%?? – Get Know-how of CF – Collaborate with Business in CF
  • 24.
  • 25.
  • 26. Rin-san’s situation • Rin-san working for KAMONOHASHI CF business. • One elder sister working for framing and occasionally fishing, crafting or other works. • One child aged 4-5?? No work. • Both parents have died for cancer. • Rin-san $30-40 per month. • Sister $30?? With high volatility. • No mobile. TV, but no electricity. Battery charged on the street. • Small saving, but mainly for seasonal event ex Obon. • Sister wants to work at CF. • Do not work at the city. • Satisfied with the situation where all family can live together??
  • 27. Conference on “Social Enterprise: Developing the social economy and generating sustainable and creative solutions to poverty and social exclusion” 1. iDE Cambodia 2. Impact Investment Exchange Asia
  • 28. iDE Cambodia International Development Enterprise • 1. Igniting the Sanitation Market: socially designed toilets for the rural poor • 2. Farm Business Advisor Program (FBA)
  • 29. 1. Igniting the Sanitation Market: socially designed toilets for the rural poor • Sanitation Marketing – Develops sustainable business that create demand for sanitation products and services. – Supplies those products and services t better serve the needs of low-income households. – The marketplace for sanitation existed already, there were suppliers and demand from customers. – YET, In Cambodia above 80% of the rural population did not have a latrine = HUGE Market Potential – And after ODF-still a need for Markets *Quoted from the documents of the Conference
  • 30. Sanitation Marketing Pilot Program • The project was supported by both WSP and USAID with over a 21-month period. • The project target was to sell 10,000 household latrines in two provinces using a market based approach with no sanitation hardware subsidy. *Quoted from the documents of the Conference
  • 31. Program Phases • Phase 1: Research & Design – Human Centered Design – Supply & Demand Studies – No option between $0 and $100+ – The Easy Latrine • Phase 2: Proof of Concept/ Refinement – Actively do Sales and Marketing Distribution/transportation work with local government. • Phase 3: Full Market Launch – Demand creation – Profit Drives Motivation – Failure IS an option *Quoted from the documents of the Conference
  • 32.
  • 33. Results (or Impact) • 22,000 latrines sold in 16 month • Sales in over 1,00 villages (Ripple Effects) • 16 entrepreneurs trained, 8 copies, 39 other value chain enterprises benefited • 83-93% “Extremely” Very Satisfied • Easy Latrine owners tend to be poorer than non-latrine owners (targets lower-middle income) • Bottlenecks: transportation and stock investments • 167% avg: increase in sales over base rate • 111% avg: increase investment in sanitation *Quoted from the documents of the Conference
  • 34. 2.Farm Business Advisor Program • The aim of the FBA franchise is to facilitate a sustainable, demand-driven system to deliver productivity-enhancing products and services to smallholders in Cambodia. • Winner of the Nestle’ Prize for Creating Shared Value (CSV) 2010.
  • 35. Objectives Business Proposition Sustainability Farmer Clients Agricultural FBA Products Franchises Farmer Clients Franchisor FBA Information Franchises Farmer FBA Credit Clients Franchises *Quoted from the documents of the Conference
  • 36. Farm Business Advisor Program • FBAs are independent micro-entrepreneurs who provide high-quality agricultural products and advice to small-scale farmers with a customer first orientation. • Franchise not just to sell, but enable BOP to become more effective. • Farmer clients might lack at good quality inputs, irrigation, credit, know-how, and market information. *Quoted from the documents of the Conference
  • 37. 2. Impact Investment Exchange Asia • IIX is itself a Social Enterprise with a social mission: – To provide Social Enterprises in Asia with greater access to capital, allowing them to more rapidly expand the impact of their activities. • Exchange Platform for Shares and Bonds. • Requirement for listing. • Reporting obligation of Social Enterprise. • 2012, Social Stock Exchange will open??