Linking Small Farmers with

Agribusiness: Niche Markets and

Branding

Shadel NyackCompton

Managing Director

Belmont Estate, St. Patrick

Grenada, West Indies

Small island economies: from vulnerabilities to opportunities

Building resilience of SIDS through trade and agribusiness development

Brussels

July 11th, 2014

Vulnerability of SID States

SIDS are more vulnerable and fragile

economically and face greater risk of

marginalization and economic and

environmental shock because of geographic

limitations, under-diversified economic

structures and environmental factors.

Constraints of SID States

51 small island developing states.

Low availability of resources.

Small but rapidly growing population.

Remoteness

Susceptibility to natural disasters.

Excessive dependence on trade

Vulnerability to global developments

Role of Agribusiness

Drive rural development

Increase agricultural productivity

Meet Social Goals – Poverty Reduction

Economic Growth

Environmental conservation

Niche Marketing & Branding

Niche Marketing

Supplying goods or services to

segment or target group outside

of mainstream

Or a small scale business that

provides specialty item for a

limited group

Allows more direct

communication & interaction

between producer & consumer

Tool to break into or create a

larger market

Niche Marketing Steps

• Identify market needs

• Adjust to meet market needs

• Do long term goals provide

for niche market

• Determine required

resources

• Create marketing plan

• Prepare for niche market

demands

Niche Marketing & Branding

Branding Strategies

Communicate meaningful differences from competitor

Develop products around company’s core strength

Target diverse markets & offer a portfolio of brands

Brands must fit investors’ appetite for risk

Build capacity – use infrastructure of existing organizations & use outside expertise

Branding Objectives

• Differentiated product

• Greater price control

• Reverse the balance of

power between producer

countries and major

supermarkets

• Added value for producers

• Make supply chains

sustainable & profitable

Agribusiness Challenges

For Small Farmers

• Achieving food security & agricultural raw

products despite demographic growth & and

climate change

• Lack of information

• Lack of skills

• Insecurity

• Insufficient Resources

Improving Quality

Challenge Lack of capital and organization

Strong dependence on imported

seeds, mostly of poor quality & expensive

Inadequate planting material

Widespread use of chemicals

Improper post harvest selection

Inadequate pest & disease control

Shortage of adequate labour

Inaccessible-remoteness of farms to markets

Best Practice Initiative: Goodfellow Farm Nassau,

Bahamas

5 acres, wide variety, pesticide free

salad greens, herbs, vegetables

Organic herb farm

Traditional farming methods

Specializing in high end greens

Use of hydroponics and soil based

farming methods and natural

fertilizers.

Innovative seedling pairings

Specialization of Product

Challenges

Increased commercialization puts emphasis on product specialization, but not confined to the production of high value crops.

Transition cost variable inhibits small farmer.

Small farmer commodities are becoming differentiated because of particular requirements to meet quality, size and delivery standards.

Best Practice Initiative

Jamaica Exotic Flavours and

Essences Company Ltd.

Produce domestic agriculture base

flavours, essence and purees.

Use of lower quality ‘reject’ fruit and

vegetables to produce value added

processed products.

Created to improve production capacity

through adoption and application applied

technology.

Developing local expertise through the

Spinning Cone Technology.

Partnered to develop line of cosmetics

using local purees and essences.

2009-2010 JEFE successfully produced

and marketed 47,526 kg. of puree and

2,281 kg. essence valued at $4.5 million

JEFE Ministry Paper 2009-10

Product Differentiation

Challenges

Inability to keep up with

increasing consumer

demands for new products.

Lack of technology and

modern production

processes.

Lack of Public Private

Partnerships.

Best Practice Initiative:

The Grenada Chocolate

Company, Grenada Specialized in artisan organic dark

chocolate production

Collaborated with small cocoa

farmers & started Co-op of organic

cocoa farmers – bean to bar

Associated with local farmers to

convert to organic & become certified

Use of solar-electric powered antique

machines & fair transport

Developed specialized niche market

locally & internationally for product

Belmont Estate, Grenada

Agri-tourism Enterprise

Premiere agri tourism attraction.

Unique 17th century, 400 acre plantation integrating: Organic farm

Local culture

History

Traditions

Cuisine

Commenced Tourism component of the business in 2002.

Product offerings: Organic farm – cocoa, nutmegs, spices,

fruits & vegetables

Restaurant

Various tours

Organic dark chocolate

Heritage museum

Gardens

Cultural Entertainment

Plant nursery

Bon Bon & chocolate shop

Goat Dairy – producing goat’s cheese

Craft Market

Exotic & Farm Animals

Gift Shop

Credit Union

Co-operative of Organic Cocoa Farmers

Components of Belmont Estate

Agri-Tourism Concept

Rural/Natural Environments

Functioning Estate of over 400 acres

Agricultural Products/Services

Organic cocoa, nutmeg and mace, spices

Other fruits & vegetables

Tourism Products /Services

Restaurant, Café, Museum, Tours, Events, Conferences

Community

Environment, Charity, Partnerships, Farmers’ Co-op, Credit Union

Farm Commodities, Processing, Packaging

Grenada Chocolate Factory, Grenada Goat Dairy, jams, sweets, pickles, spices

AGRITOURISM

Belmont Estate

Niches & Branding Strategies

Organic food production

Natural healthy foods

Fair Labour practices

First Fair Trade inspection this year

Historical, authentic, traditional, safe family environment

Environmental Stewardship

Community

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Belmont Estate - Results

Innovative farm products

Strategic partnerships – increasing capacity in the community with stakeholders

Increased Revenue – of overall business earning - 67% tourism, 33% farm

Product identified as best practices agri-tourism model in the region

Increased farm production

Increased tourism business in the rural north of Grenada

Increased business for other tourism stakeholders – Tour operators etc.

Strengthen rural community through job creation

Value added to farm and tourism industries on the island

Traceable farm to table enterprise

More foreign currency to local businesses

Conclusion

• Achieve economic gains & strengthen diversification strategy with sound inter-linkages between agriculture, industry, ICT, finance etc. Developing capacity of SIDS to diversify production, enhance productivity and add

value through quality niche products requires optimization of the use of indigenous capacities &

resources.