NGO Social Enterprise – an international development organisation iDE develops enterprises and market systems that deliver sustainable social and economic benefits, enabling the rural poor to increase their income and improve their quality of life A value chain approach to economic development • Farmers are CLIENTS (not ‘beneficiaries’) • Key goods and services are supplied by private sector – not projects, NGOs etc Lors Thmey is an agricultural service company that creates extraordinary value for our smallholder clients through high quality advice, products, and service. Lors Thmey Transforming Farmers Through Service and Technology Farming is a Business… Two thirds of all vegetables consumed in Cambodia are imported from neighboring countries Average Rice Yield is 2.8 Photo: Nestlé – Sam Faulkner t/ha Market gap • • • • • • Lack of good quality inputs Lack of agricultural know-how Poor water control Poor access to credit Poor access to market information Current input sellers are ‘passive’, immobile, sell multiple product types, low specific knowledge Farm Business Advisors Bundle technical advice with good quality agricultural inputs to create a profitable enterprise Farm Business Advisor Farm Business Advisor Farm Business Advisor Organize and support the FBAs as franchisees linked to a central franchisor 7 Farm Business Advisors Bundle technical advice with good quality agricultural inputs to create a profitable enterprise Farm Business Advisor Agricultural Input Suppliers Credit Sources Farm Business Advisor Farm Business Advisor Information Sources Organize and support the FBAs as franchisees linked to a central franchisor 8 FBA Training • 40 days in first year (weekly) • Agronomy and Sales techniques • 50% of costs • Internal and through companies • Introduce and demonstrate new technologies • Lower the risk for farmers to try Improved Profit Lors Thmey Technology Farmer Practice • Increased profit • Improved environmental and personal safety Information Brokering Where do we work ? 50 FBAs 7 Commercial Agronomists 100 FBAs (250 in 2014) 20 Commercial Agronomists (15 interns) Finance and Number of Clients 2009 2013 Who funds ? Effect of the Farm Business Advisor Program on iDE-Cambodia • Transition : iDE (NGO) Lors Thmey (business) Effect of the Farm Business Advisor Program on iDE-Cambodia • Changed recruitment criteria – favour private sector • Introduced Sales Teams and incentives program • Strict Performance Management • Client focus – FBAs and farmers Who are we reaching? Half of all FBA clients come from the poorest third of the population 35% of vegetable growing activities are done by women 79% of vegetable marketing is done by women Farmer Income +$268/year (+ 30%) FBA Income +$650/year (+ crops) 19 How can social enterprise be scaled up and replicated to meet the needs of 100,000 farmers? What is needed, what are the challenges and what are the opportunities?