Portfolio SNAPSHOT APRIL 2012 The agribusiness portfolio The Business Innovation Facility and Innovations Against Poverty have a range of projects in the food and agriculture sectors which engage farmers. Some projects are focused on sourcing specific crops from farmers, or helping them to supply their produce into higher value markets. Others involve selling services to farmers to boost their production, including weather forecasts and agronomic advice. A third group are focused on the processing and retail of products originating with producers down the value chain. BUSINESS INNOVATION FACILITY INNOVATIONS AGAINST POVERTY Bangladesh Ghana Agora stores: Agora is an expanding chain of retail outlets in Bangladesh, run by Rahimafrooz Superstores Ltd. As it expands, the company aims to build the capacity of small and medium fresh produce suppliers to develop robust supply chains. Many of these suppliers procure produce from some of Bangladesh’s poorest districts. Global Sourcing and Supply (GSS): GSS aims to bring local farming communities into the profit streams generated by oil and mining activities in Ghana through the supply food to the employees. GSS plans to build local capacity and source this food from low-income farmers living near mines and drilling areas. The Environmental Research and Analytical Service (ERAS): This project aims to increase the incidence of soil testing at the village level, by creating viable private sector supply chains that give smallholders access to affordable and effective soil testing services. Soil testing is an essential tool for smallholder farmers to increase their harvests and produce higher quality crops. Ignitia: Ignitia is a business venture to distribute daily weather forecasts and early warning information to 90,000 smallholder farmers. Farmers pay a small price to receive a daily text message with a weather forecast tailored to his or her specific location. This information can help them to be more agriculturally productive, more food secure and better able to plan for disaster risk reduction when hit by natural hazards. Shiblee Hatchery & Farms: Shiblee Hatchery & Farms plans to engage 100 landless families as fish farmers of cagecultured tilapia. They also run a supply network, delivering chemical-free fish and meat products to high-end clients in Dhaka. This project aims to roll out a business model based on a contract farming approach to production, and secure investment to finance the farmers’ investment. India MCX: MCX’s Gramin Suvidha Kendra (GSK) Initiative uses the postal network to reach out to farmers and provide them with expert advice on agricultural inputs, farming problems, warehousing and financing information for their produce, as traded on MCX. mKRISHI: The mKRISHI initiative of Tata Consultancy Services offers personalised services in local language to farmers on their mobile phones. Farmers in remote areas will be able to connect to their traders, access quality agricultural inputs, find advice on farming practices and get information on market prices, weather and other essentials for improving yields. India, Sri Lanka, Indonesia Lotus Foods: This initiative is focused on the distribution and sale of organic, fair trade heirloom rice. It aims to establish new value chains based on the System of Rice Intensification (SRI) cultivation methods, which involves a set of practices for managing plants, water and soil that is accessible to even the most resource-limited farmers, allowing them to achieve higher yields with less water, less seed and no agrochemicals. Snapshots provide real-time information on the project portfolio for the Business Innovation Facility and Innovations Against Poverty. BUSINESS INNOVATION FACILITY CONTINUED INNOVATIONS AGAINST POVERTY CONTINUED Malawi Mozambique Afri-Nut: Afri-Nut, a Malawian start-up, has the first processing facility in Malawi that can produce processed peanut products such as blanched nuts and peanut paste. International Development Enterprises (IDE): This farm advisors network provides high quality agricultural products and advice to small-scale farmers. IDE aims to deliver irrigation products and other essential inputs to the rural poor, allowing them to increase their yields and incomes in a cost-effective and sustainable way. Malawi Mangoes: Malawi Mangoes plan to implement the first large scale fruit processing facility in Malawi, powered by solar and biomass/biogas, that will convert the fruit into concentrate and pureé. The company aims to generate over 1,000 jobs in farm work and at their processing plant. MicroVentures: This project develops market linkages between smallholder farmers and Malawian wholesalers, retailers and food processors. It focuses on 850 women who are already loan clients of MicroLoan Foundation, enabling them to sell into value-added markets. Zambia Imagine Rural Development Initiative (IRDI): The project aims to significantly increase the number of Zambian farmers growing moringa crops – a flowering plant that can be processed into a number of marketable products – and establish moringa as a sustainable income generation crop. IRDI will provide seedlings and skills to farmers and process a range of products for sale. Universal Industries: This project creates a new supply chain and business model, sourcing fresh cassava root from local smallholder farmers for high quality cassava flour. Universal aims to engage 7,000 smallholder farmers. Nigeria AACE Foods: AACE Foods is a start-up company establishing a value chain for locally sourced, processed and distributed foods for business-to-business and business-to-consumer sales. Products, such as fresh ginger are sourced directly from farmer groups. Zambia Sylva Foods: Sylva Foods is a domestic SME that aims to grow demand for and increase sales of traditional Zambian foods and beverages based on an inclusive local sourcing model. Sylva is extending its supply chain to directly source produce from smallholder farmers in rural communities across Zambia. Tata Tannery: This project aims to better integrate small-scale farmers and intermediaries into the Tannery’s value chain. Currently, farmers merely sell their cattle to the abattoirs for slaughter but do not receive any extra compensation for their hides. By directly working with farmers, abattoirs and its intermediary, Tata aims to build capacity and create incentives to produce and supply more and higher quality hide. The Business Innovation Facility and Innovations Against Poverty support companies as they develop or grow inclusive businesses. The Business Innovation Facility provides technical support and Innovations Against Poverty provides financial assistance. Inclusive business is profitable, core business activity that also expands opportunities for people at the base of the economic pyramid: either as producers, suppliers, employees, distributors, or consumers of affordable goods and services. For further information and to view other Snapshot documents, go to: Practitioner Hub on Inclusive Business: www.businessinnovationfacility.org We welcome feedback on our publications – please contact us at enquiries@businessinnovationfacility.org The Business Innovation Facility is a pilot programme funded by the UK Department for International Development (DFID), implemented by a management alliance led by Pricewaterhouse Coopers LLP in collaboration with other leading international institutions, operating in five countries. Innovations Against Poverty is a programme funded by the Swedish International Development Cooperation Agency (Sida) and implemented by by Pricewaterhouse Coopers (Sweden). It is a part of Sida’s Business for Development programme, which contains proposals for new forms of dialogue and collaboration with industry. The views presented in this paper are those of the author(s) only y do not necessarily represent the views of the Business Innovation Facility, Innovations Against Poverty, our funders or project partners, and do not constitute professional advice.