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Phase 1 involved pilot projects in Tanzania and Azerbaijan to understand challenges in developing new smallholder supply chains. These pilots highlighted issues like side selling, need for consistent supply, and challenges reaching marginalized producers.
Phase 2 looked closely at three existing Unilever supply chains and external research to identify success factors. These included financial arrangements benefiting farmers, transparency, extension services, and alignment between procurement, suppliers and sustainability teams.
The program distilled lessons into guidance for companies on relationship-based, inclusive procurement
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Presentation given in November 2013 as part of a series of internal seminars given by the Nutrition and Marketing Diversity team at Bioversity International.
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For more information about Bioversity International research on diet diversity for food and nutrition, please visit our website: http://www.bioversityinternational.org/research-portfolio/diet-diversity/
Business Strategy-I had to coach and work with 5 underclassman to come up with a business strategy to make $50 million in 4 years while leaving a minimal environmental footprint
Inclusive Business Strengthening Supply ChainsExternalEvents
the study shows the role of SNV Netherlands Development Organisation, their Inclusive Business Approach and cases of tea and cassava in Vietnam, rice in Lao and vegetables in Cambodia. An overview of contract farming in Cambodia is also discussed.
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Market led extension is a tried between Fishers, Extension and Economics. The way the interact perfectly there will be a positive upliftment of famers.
Business Strategy-I had to coach and work with 5 underclassman to come up with a business strategy to make $50 million in 4 years while leaving a minimal environmental footprint
Inclusive Business Strengthening Supply ChainsExternalEvents
the study shows the role of SNV Netherlands Development Organisation, their Inclusive Business Approach and cases of tea and cassava in Vietnam, rice in Lao and vegetables in Cambodia. An overview of contract farming in Cambodia is also discussed.
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This Briefings was co-organised by CTA, the European Commission / DEVCO, the ACP Secretariat, CONCORD and the Fair Trade Advocacy Office.
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Market led extension is a tried between Fishers, Extension and Economics. The way the interact perfectly there will be a positive upliftment of famers.
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Ever scratched your head trying to find safe excreta disposal solutions for pour flush latrines in congested urban slums, remote locations, high water tables, rocky ground and no-network areas? Well, this webinar could have the answers you've been looking for.
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For both the presentation and the audio, visit our YouTube channel: https://youtu.be/j04tGVNP6Xg
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Donate Us
https://serudsindia.org/how-to-donate-to-charity-during-this-holiday-season/
#charityforchildren, #donateforchildren, #donateclothesforchildren, #donatebooksforchildren, #donatetoysforchildren, #sponsorforchildren, #sponsorclothesforchildren, #sponsorbooksforchildren, #sponsortoysforchildren, #seruds, #kurnool
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Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
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Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
This session provides a comprehensive overview of the latest updates to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly known as the Uniform Guidance) outlined in the 2 CFR 200.
With a focus on the 2024 revisions issued by the Office of Management and Budget (OMB), participants will gain insight into the key changes affecting federal grant recipients. The session will delve into critical regulatory updates, providing attendees with the knowledge and tools necessary to navigate and comply with the evolving landscape of federal grant management.
Learning Objectives:
- Understand the rationale behind the 2024 updates to the Uniform Guidance outlined in 2 CFR 200, and their implications for federal grant recipients.
- Identify the key changes and revisions introduced by the Office of Management and Budget (OMB) in the 2024 edition of 2 CFR 200.
- Gain proficiency in applying the updated regulations to ensure compliance with federal grant requirements and avoid potential audit findings.
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3. SUNRISE
Goal
• The goal of Sunrise is to learn how to do
business with smallholders in a way that it
improves their livelihoods
Objectives
• To understand the roles, functions and power
dynamics in supply chains currently sourcing
from smallholders
• To use the outputs from this to deliver tools
and guidance applicable to Unilever
procurement, other similar companies and
their suppliers that can improve smallholder
livelihoods
• A joint programme between Unilever
and Oxfam bringing together the
development aims of Oxfam with the
sustainable sourcing efforts of
Unilever
• Research and thinking on what a lead
firm can do to achieve better
livelihoods for smallholder farmers
• Outputs used to inform Unilever’s
business model and Oxfam’s
development model
• Began in July 2010 and ended in
January 2015
4. TIMELINE
2010-12
2010 - MoU
signed for a
five-year work
programme
Practical
learning
based pilot
projects
Strategic review
end of 2012
Shift of focus
to learning
from existing
supply chains
within and
outside
Unilever
Roll out of
Enhancing the
livelihoods of
smallholder
farmers: Guide for
Procurement and
Engaging the
private sector:
guide for NGOs.
Phase one
Phase two
2012-14
5. STRATEGIC FIT
Oxfam’s aim for encouraging private sector investment in
smallholder agriculture is to reduce poverty, reduce smallholder
risks; develop viable sustainable livelihoods; promote women's
empowerment and so strengthen the role of smallholders’ in the
future of agricultural development.
Unilever is committed to sustainable sourcing, improving the
livelihoods of smallholder farmers, especially women and to
contributing to food security. The Unilever Sustainable Living Plan
set a goal to show evidence of improvement of the livelihoods of at
least 500,000 smallholder farmers in the supply network by
helping them improve their agricultural practices and thus enable
them to become more competitive.
8. PRACTICAL PILOT PROJECTS
• Based on vegetables for dehydration
for use in Knorr products. Feasibility
took us to Tanzania and Azerbaijan
• Insight: Greenfield new developments
with local partners are not a resource
effective scalable model for future
value chain development given
ambitions for Sunrise
Commercial issues
Side selling can be a key issue if alternative markets
exist for raw material
Processing to international standards is limited outside
developed countries
Need for constant supplies requires a mix of large and
small scale suppliers
Industrial scale plant investment not viable solely based
on Unilever volumes
Development issues
Processed markets represent a lower value,
commoditised offer relative to fresh markets, for
smallholders, unless graded prices or seasonal average
price exists
Commercial ‘drivers’ are gender blind, resulting in
unequal opportunities for women unless adapted
Creating income gains with acceptable risks for
smallholders requires a mix of accessible markets
To reach marginalised producers requires household
and market system investment
9. KEY LESSONS FROM SUNRISE PHASE I
• Avoid optimism bias at the research stage
• Starting a new smallholder supply chain with a combination of
commercial and social-impact objectives is complex.
• Participants need to carefully consider a wide range of issues and
consider both positive and negative factors likely to impact on the
supply chain proposed.
• Assess the impact of the proposed buying model
• The buying model has an enormous domino-like effect on the
dynamics of the supply chain.
• For example, a surplus-buying model can be established more
quickly than a contract-buying model, can develop a broader
market and can increase the number of farmers involved in the
long term.
• On the other hand, a contract-buying model offers more scope for
specific produce requirements to be met, and can also provide a
framework for all parties to justify upfront investments.
10. • Invest strategically in greenfield sites
• Greenfield projects afford a great degree of freedom to design a
supply chain “from scratch.”
• Project leaders must strike a strategic balance between factors
such as direct control and innovation on the one hand, and
outsourcing and efficiency on the other hand
• Leave room for trial and error
• In supply chains where new approaches are being introduced and
where innovation and learning are critical, there must be room
for trial and error.
• Experimentation enables current understanding to be challenged
and improved.
• Agree on how systemic the approach will be
• Systemic approaches seek to address problems by dealing with
their root causes rather than just addressing symptoms.
• Project teams taking this approach must make this choice clear
upfront, and get all partners’ agreement on it.
11. • Make objectives crystal-clear
• When two organisations are highly motivated to collaborate, there
is a danger of avoiding the difficult and sensitive conversations
needed to identify differences in objectives, drivers, priorities and
agendas.
• Define “success” carefully
• In a project that entails collaboration between a business and a
development organisation, establishing success criteria becomes
exceedingly complex.
• It is important to ensure that the outcome measurements
selected match the objectives of the project.
• Agree on an exit strategy for all parties
• In the event that the project needs to be disbanded, all parties
need an exit strategy.
• Formulation of such a strategy is best done at the start of the
project, rather than when the first cracks appear.
• That way, each partner organisation understands from the outset
what pathways are open to them as the project evolves.
13. PHASE 2
Looked in depth at three
Unilever supply chains already
sourcing from smallholders,
carried out research on what
others are doing to identify
common success factors
Guidance for lead
firm procurement
operations & NGOs
External
research
Unilever
cases
Practical
projects
14. UNILEVER CASES
Tea in Kenya, tomatoes in India and black soy beans in Indonesia
Critically there has also been a commercial basis for Unilever engagement; a development
opportunity for government and NGO agencies and a market opportunity for suppliers, farmers
and input providers = MUTUAL BENEFIT
Common success factors emerging from the cases :
• Financial arrangements that allow smallholders to participate without having to rely heavily
on credit from external providers, primarily because of quick payment and pre-payment for
their crops
• Transparent pre-harvest price negotiations and guarantor role of buyer
• Partnership models that provide extension services, training and inputs directly to farmers
• Internal structures within Unilever that see procurement, supplier development and
sustainability functions working hand in hand
• Key role for leadership in generating commitment and trust, and bringing together the actors
needed to succeed with a fragmented supply base
15. EXTERNAL RESEARCH
What can lead firms do to influence the trading relationship between primary producers
and their direct buyers? and what does it take for such approaches to succeed?
Assumptions:
Lead firms are rarely, if ever, in a direct trading relationship with smallholders; the relationship is
mediated by one or more levels of trader and supplier. It is their actions that will make or break
attempts at inclusive business.
By adapting aspects of procurement, lead firms can support suppliers to trade with smallholders
And in doing so lead firms and suppliers can reconcile inclusion of smallholders with commercial
drivers
16. INTERCONNECTED SUCCESS FACTORS
1 A clear business strategy for inclusive procurement
2 Alignment of the lead firm’s procurement practice with
strategy
3 A relationship-based procurement model
4 Tailoring the approach to product and supply chain
structure
5 Pilots that are implemented with a view to scale and
mainstream business
17. PHASE II: SUCCESS FACTORS FOR LEAD
FIRMS TO SHAPE INCLUSIVE PROCUREMENT
A clear business
strategy for inclusive
procurement
A clearly defined
business case makes
the difference
between inclusion of
smallholders via ad
hoc projects, and
inclusion through the
commercial
operations of the
company.
A clear business case
exists when value is
generated for the lead
firm, supplier and
smallholder.
For the lead firm, the
value proposition may
be security of supply,
or brand &
reputational value.
Alignment of the lead
firm procurement
practice with strategy
Embedding the
‘inclusive
procurement’
strategy into the core
procurement
function, and aligning
policies with this
strategy, to ensure
consistency of
messages to
suppliers.
A relationship-based
procurement model
Full supply chain
visibility for lead
company buyers right
through to primary
production, to
understand the
consequences of
buying decisions.
Collaboration and co-
investment with
suppliers, supported
with buyer education
and incentives, even
when dealing with
preferred suppliers.
Transparency and
risk sharing all along
the chain, including
producer
organisations
Tailoring the approach
to the product and
supply chain structure
Companies and
their suppliers need
to adjust and tailor
their strategy based
on specific factors
related to the
product and supply
chain.
There may be
greater business
rationale for niche
high-value products
than for
commodities.
Pilots that are
implemented with a
view to scale and
mainstream business
Giving pilot
interventions time
to be successful,
with patience,
persistence, access
to know-how,
learning and
adaptation.
Even with enablers
in place, getting
from pilot to
commercialisation
can be hugely
challenging, and
failure is under-
reported.
19. GUIDE FOR PROCUREMENT: PURPOSE
Support buyers and suppliers on how to improve their
impact on the livelihoods of smallholder farmers by:
• Creating a common language
• Orienting companies to the basic risks, strategic
options, and common success factors
Which should help buyers and suppliers explore
opportunities to:
• Reach more smallholders by expanding or
developing new sourcing arrangements
• Improve outcomes in existing sourcing
arrangements by developing programmes that
increase benefits and impact and improve
commercial performance
And ultimately to make sensible decisions about if
and when investing in smallholder sourcing is a
good choice for the specific context being looked
at
20. How can NGOs work effectively
with companies?
6 November 2014
Lessons from Oxfam-Unilever Project Sunrise on inclusive
business models with smallholder farmers
21. Page 21
About this presentation
Objectives
• Share lessons from Project Sunrise on inclusive
business models
• Offer guidance on strategic considerations in NGO-
corporate partnerships
For whom?
• NGO practitioners in private sector partnerships
• Governments and donors that support PPPs and NGO-
corporate partnerships
22. WHAT HAVE WE LEARNT
FROM PROJECT SUNRISE
ABOUT
NGO-CORPORATE
PARTNERSHIPS?
23. KEY MESSAGES
• Clarify mutual expectations in the corporate-NGO partnership
• Is it an implementation partnership or a learning partnership? Be clear on each
partner’s skills & capabilities
• Partners should manage mutual expectations and continually clarify roles
• Go beyond the buy
• Lead firms can drive best practice in buying, and also in investing in smallholder
capacity
• Sharing the benefits, costs, and risks, e.g. Farmer field schools, pre-harvest
payment, cost-plus pricing
• Look for the women
• Lead firms can identify the women hidden in the supply chain, and target
interventions directly to them. E.g. Separate remuneration for women’s activities,
organising women’s groups
• Think twice before going greenfield
• Building new supply chains with smallholders requires rigorous analysis & risk
management/sharing
• Deepening social impact in existing supply chains with smallholders may work
better