Strategic CSR and Business Development Case...

BY KENYA BIXA LTD

Strategic CSR and Business Development

Case Study (2011-2013)

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Kenya Bixa

ISO 9001 and ISO 22000 Certified company based in South Coast whose core business is processing of Nor-bixin and bixin powder with annual turnover of 120 Tons established in 1979.

CSR

Community Water borehole

Labour

Child labour: Sensitization throughout the supply chain

Health and safety

Risk assessment

First aid kits

Health and Safety Committee

Environment & Energy

Bio – gas and biomax manure Plant

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Child labour used to exist at the farm level integrated as a cultural value.

Conducted 10 sensitization meetings Outcome Most of The children attend school

Business benefits:

Assurance of better working condition through the supply chain and cordial relationship with the suppliers and the farmers and Compliance with Global Legal requirements on child labour

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Current contracts

farmers appx. 350.

Bixa acreage of 1,750.

Annual seeds collected

1200 Tons.

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200

400

600

800

1000

1200

1400

2010201120122013

Contract

farmers

Seeds in

Tons

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Contract farmers Parameters Output

Acreage 250 trees per acre Given free by KBL

Harvest 2 times per year 16kgs per year per tree

Revenue Kshs. 40 per kg Kshs. 160,000 per year per

Acre

5 acres Kshs. 160,00 x 5 Kshs. 800,000

Expenses Appx. Kshs. 200,000 Kshs. 600,000

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Began business in 1986

Purchase 75% of our production.

2006 – 2009 we were not able to fully supply because there was very little raw material

we were unable to get substantial orders from Chr. Hansen

Through Susbiz programme secured a visit by Mr. Stevenson the Global Sourcing director

2013 to sign contract of 50 Tons because of

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30

40

50

60

70

80

90

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SALES IN TONES

Tones

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Cost of installation 4,188,414.00

Operation Expenses and payback period Since

Diesel Consumption Norbixin

Powder

Norbixin

Powder/ Ltr

Diesel savings

per year

Savings in

Ksh

YEAR Litres Cost Kgs Kg/Ltr Lrs

2008 11,500

577,875.00 32,684

2.84

2009 6900

376,050.00 20,098

2.91

2010 17650

1,155,898.00 34,965

1.98

2011 0 - 20,935

8,051.92 748,831.35

2012 0 - 23,538

9,053.08 887,201.84

2013 61,600

23,692.31 2,440,307.93

Average savings per Year 1,358,779.00

Recovery period Cost of project/ / annual savings 3 Year

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Provision of full equipped First

aid kits

Trained committee

Emergency preparedness and

pictorial signs in place

Training on proper use of PPE

Conducted risk assessments

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THE END

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