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Doing Better Business in Africa
Tabasco® & Other Market Driven Empowerment Models & Success Stories MARCH 5, 2013
Presented by Nigel Dorwardwww.thebettertradingcompany.com
Better Partners
• Born out of a shared vision with the Shell Foundation
• To create an ethical agent • Bridge the gap between markets
and developing world producers• Continued strategic partnership
provides: – Resources– Business know-how– Extensive worldwide network
Better Team
• African Agriculturalists– Committed to Africa– Skill set suited to Africa– Ability to understand BOTH ends of the
supplier/customer dynamic.
• Based in Harare, Cape Town, UK
What we do
• Own supply chain business – Trading Horticultural crops – primary production through to category managers at
supermarket level
• Consultancy business– Large Companies with CSR goals, Due Diligence for Financial Services and
NGO’s – Market evaluation– Production evaluation
What we do
Primary Production
Primary Processing
Training
Finance – Soft, Patient, Commercial and PE
Secondary Processing
Logistics
Marketing
Sales
Operations Management
Triple Bottom Line
• Crop and livestock production • Horticulture
– floriculture – vegetables – spices
• Citrus • Sub-tropical and deciduous fruit • Supply chain and logistics management specific to the
growth, harvesting and production of these products.• Project management• Project and investment due diligence
Better Agriculture
• 150 hectares large scale outgrower veg producers
• 600 tons fresh veg air-freighted into UK and EU supermarkets– Albert Heijn, Carrefour, Aldi, Rewe, ICA, ASDA
• Packed in our own packhouse
The Better Trading Company
Tabasco® Chilli
Awarded the Technoserve “ Agri-Innovation Business Model Award” August 2011
2010 growing season pilot project 2011 growing season increased to 230 farmers Both rain and irrigation assisted plantings Approximately 75 % women growers 2013 300 farmers producing 350 tons
• Why phased?– Reduce risk
• Markets need – REPLENISHMENT – FORECASTING – QUALITY ASSURANCE– PRICE EFFICIENCIES
• Suppliers/Growers need– SUPPLY PROGRAMME– LEAN SUPPLY CHAIN– PRICE EFFICIENCIES– TO BUILD TRUST
– Build resilient supply chains
– Grow retailer/supplier relationship
3 year plan
Pre – Planning– What does the market need?– What can we offer the market?
• Products• Technical Assistance• Logistics
– Build Concept models• Production timing and volumes• Logistics needs
– Inputs– Transport
• Personnel plans• Finance plans• Environmental plans• Community Upliftment plans
– Schools, Clinics, Community Centres, Life Skills Training
– Key Contacts• Supply Side• Market Side
3 year plan
• Phase 1• Set up GROWER GROUPS • Operations Begin
• Skills transfer
• Plant initial crops timeously• Low Care packing • Building and Testing Market
Linkages• Planning for Phase 2• Early stage Community Programme• Deploy Environmental plans
• ESTABLISH FEED-BACK LOOPS
Phased Approach
• Phase 2• Increase production relative to
supplier programmes agreed by market
• Low and Medium Care packing options
• Add relevant new product lines• Roll-out of Phase 1 in new
Geographies• Testing new and alternative products
for relevant production conditions• Early stage work on value add to
existing products– Dehydration– Canning– Preserving/Pickling
• Wider roll out of Community plans• Planning for Phase 3• IMPLEMENT LEARNINGS FROM
FEED-BACK LOOPS
Phased Approach
• Phase 3• Scale Up production relative to
supplier programs agreed by market and based on previous years performance
• Scope High-Care packing options where relevant
• Phase 1 roll out in new geographical locations
• Add relevant new product lines• Testing new and alternative products
for relevant production conditions• Continued work on ‘value add’ to
existing products– Dehydration– Canning– Preserving/Pickling
• Wider roll out of Community plans• CONTINUED DEVELOPMENT OF
FEED-BACK LOOPS
Phased Approach
Learning's and Challenges
Learnings Holistic model essential for success Trust and support of community Cropping finance (revolving grant) Regular cash payments Training and agronomy support
Challenges Side marketing Identification of suitable growers Securing revolving grower input fund Ensuring stable base prices
New Projects
• Always on the look out for new projects
• Listening to what our retailer partners want
• Working with our on-the-ground network
• Assessing how to connect more exceptional African entrepreneurs with markets
CONTACTS
• The Better Trading Company– Nigel Dorward
• [email protected]• Mobile +27 72 392 0721
• Better Agriculture– Mike Bailey
• [email protected]• Mobile +263 912 601 146
– Pete Caminada• [email protected]• Mobile +263 11 601 271
