2. contents
• CEDAC and Farmer Community
• KAMONOHASHI and Community Factory
• Symposium 19th and 20th
– iDE Cambodia
– Impact Investment Exchange Asia
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.
7.
8.
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.
11.
12.
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
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.
19.
20.
21.
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??