2. Origin of the concept: evolving approaches
• Only business can create prosperity
• Healthy businesses need a healthy
community
3. Enhancing productivity in Kenyan tea
Yield
improvements
brought by
Farmer Field
Schools up to
36%; key value
driver for the
business case
4. Building clusters and framework conditions:
Kenya tea
•
•
•
•
Upscaling and embedding
of new extension structure
for 3,900 buying centres
servicing 117,000
smallholders directly
40% of training oriented to
improved tea performance
but also to diversification
Embedding in new cluster:
15 out of 24 topics
addressed by Ministry of
Agriculture, Livestock,
Equity Bank and others
Effect: increased income,
improved nutrition and
livelihoods
Composition FFS trainings
Tea related training
Sustainable agriculture
Organisation & Finance
Diversification
28%
39%
18%
15%
5. UGANDA SMALLHOLDER COFFEE YIELDS COULD BE DOUBLED
THROUGH IMPROVED AGRONOMIC PRACTICES
Yields could double *
Kg green coffee per hectare
Through improved agronomic practices
Incremental costs
USD/farmer, Av 10
year
Tree rejuvenation (stumping/pruning)
Fertilization
$54
•
Gradual replanting
$15
•
Integrated pest management (IPM),
e.g., to control Twig Borer
$0
•
Optimized intercropping
$0
•
1,000
•
•
1,500
Current
Potential
Total cash costs
$74
•
Overall farm management (labor)**
$46
656
474
Robusta
Arabica
* According to stakeholder interviews and ongoing projects (e.g., HRNS)
** Typically family labor, so not a cash cost
Source: UCDA; IITA; AMITSA; literature review; interviews with farmers, Ministry of Agriculture, and coffee projects; TNS analysis
$5
6. Challenge to find $70 mln to pay for upfront
training
Possible funding : temporary increase of coffee tax (3.5%);
7. The business case in cocoa: mobilizing services
& providing access to finance & inputs
Source: KPMG
Farmers: upside
mainly from GAP
and input usage
Traders: pay-back period
less than 4 years
8. The awakening potential of Africa?
• Africa’s 7 fastest growing economies
(Ethiopia, Mozambique, Tanzania, Ghana,
Congo, Zambia, Nigeria) are among the Top10 fastest growing economies in the World
• Africa has 60% of world’s unused arable
land; of 83.2 million ha earmarked for
agricultural investments 56.2 million are in
Africa
• 9 out of 10 poorest countries in the World
are in Africa (Congo, Zimbabwe, Burundi,
Liberia, Eritrea, Central African Republic,
Niger, Malawi, Madagascar
9. Introduction into today’s program
Part 1
Hamish Taylor, Symrise: Partnering our way to sustainable
vanilla
Rahul Gopinath, Armajaro, Access to agro-inputs and
innovative finance in cocoa
Part 2
Arne Cartridge, WEF / Grow Africa, An African-owned,
country-led and market based partnership platform
Justin Sherrard, Rabobank International, ‘Great idea, but
is it bankable? How to finance shared value creation in food
& agri supply chains’
10. Teasers
• How far can we stretch the private sector business model
towards delivering public goods?
• How do we know whether these projects are not CSR but
are truly embedded into the Profit &Loss account?
• Is our SVC model the right value proposition to Africa
when compared with the business propositions of
investors from China, India and Brazil?
