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Posts Tagged ‘agriculture’
Establishing a Specialty Coffee Brand by Building Capacity of Farmers and Middlemen in Indonesia: New GIM Case Study Released

About the authors

Hidemi Yoshida is an associate professor of the Hosei Graduate School of Environmental Management and the Faculty of Humanity and Environment of Hosei University in Tokyo. Her research areas include microfinance, social entrepreneurship, and poverty alleviation through CSV (Creating Shared Value). She published the Japanese Version of the GIM Report “Creating Value for All: Strategies for Doing Business with the Poor”.

Agnes Rampisela is an associate professor of the Graduate School and the Faculty of Agriculture of Hasanuddin University in Makassar, Indonesia. She got her doctoral degree in Hydrology from Kyoto University, Japan, in 1992. She further enriched her experience at the Center for South East Asian Studies of Kyoto University as Visiting Research Fellow from 1996-1997. Her research areas include farming system, agriculture and community empowerment, and poverty alleviation. She contributes as an expert to several Japanese government projects in Indonesia and also conducts series of volunteer work especially under Lembaga Pelangi, an NGO which was established in 1996 under her initiative.

About the case study

P.T. Toarco Jaya, subsidiary of Key Coffee Ltd., a large Japanese company, established a brand of specialty coffee called “Toarco Toraja” by procuring Arabica coffee from Indonesian farmers, and by running its own coffee plantation in the country. Coffee trees that can produce high quality coffee are grown in the mountainous area, where people travel on foot or on horseback. In order to facilitate the collection of coffee beans, Toarco established purchasing stations close to farmers, and leveraged local collectors. After overcoming a number of barriers, such as the lack of farmers’ knowledge and skills, P.T. Toarco Jaya is now exporting 200-500 tons of coffee beans per year, while benefiting about 7,000 small-scale farmers as suppliers, and providing 53 full time and 900 temporary jobs at its Rainforest Alliance certified plantation. Today, Arabica coffee has become a reliable source of income for farmers, and Sulawesi is well-known for its coffee.

To download the Key Coffee case study from the GIM database, please click here.

 
GIM Releases New Case Study on Low-Cost Irrigation Systems in Rural Nepal

About the author

Sourav Mukherji is Associate Professor of Organization and Strategy at the Indian Institute of Management, Bangalore. An engineer from IIT Kharagpur, Sourav obtained his doctorate from the Indian Institute of Management, Bangalore. His major research interests are strategic and structural challenges faced by Indian firms competing in global markets. At IIM Bangalore, he teaches post graduate and doctoral level courses on Organization Design, Strategy Process, Organization Learning and Knowledge Management. Prior to joining IIM Bangalore as a faculty member, Sourav worked for the Boston Consulting Group as a strategy consultant, where he was involved in assignments concerning portfolio analysis, organization design, merger and acquisitions and market entry strategies for Indian and international firms. After completing his engineering, Sourav had worked with information technology firms like IBM and Oracle in various product management functions. As a doctoral student at IIM Bangalore he won the ‘Infosys Fellowship’, awarded for research in the IT industry. Sourav has presented papers in international academic conferences, spoken at national and international corporate forums and published in peer-reviewed journals on topics related to globalization of Indian organizations, outsourcing of knowledge intensive services, novel organization forms and knowledge management. He has also been involved in several consulting assignments, advising organizations on strategic and structural issues. At IIM Bangalore, Sourav was the Chairperson of Career Development and Placement activities during 2006-09. He is also a member of various committees that oversee ongoing programmes and new initiatives at IIM Bangalore. Sourav is among the board of advisors of an entrepreneurial venture in the information technology services sector.

About the case study

International Development Enterprise (IDE) is a development organization that operates in 11 countries worldwide with the aim of creating income opportunities for poor rural households in developing countries. IDE Nepal, an affiliate of IDE, was established in 1992 with the aim of developing low-cost irrigation technologies suitable for smallholders in rural Nepal. More than 80% of the people in Nepal are engaged in agriculture and a significant number of them have smallholdings. Typically, smallholder farmers are economically impoverished and belong to disadvantaged classes in the society. IDE realized that small holdings of these poor farmers can be effectively utilized for growing vegetables, if the farmers were provided with suitable technology for irrigation and water management and knowledge inputs for managing the vegetable farming process. IDE thus enhances farm productivity of poor farmers and increases their income by providing them with low-cost irrigation technologies and knowledge of farm management.

In order to ensure that increased farm productivity results in increased farm income, IDE links farmers to markets. Smallholder farmers are severely disadvantaged when it comes to accessing markets because of their weak bargaining power and information asymmetry. To overcome this disadvantage, IDE organizes the smallholders into communities and creates Marketing and Planning Committees that look after the interests of the farmer communities. Sooner or later, such communities mature into self-help groups empowering the rural poor to collectively bargain for their interests and rights. Today, IDE has started linking these communities with financial institutions and is in the process of enabling a credit model where the community can jointly provide guarantee to loans made to the individual member. IDE works closely with Nepalese government institutions for long term sustainability of its initiatives. It leverages the resources available with the government for implementing its programmes as well as focusing on developing capacity of government institutions so that the government can continue with the development initiatives even after completion of IDE’s projects.

Today, IDE Nepal operates in 22 districts in Nepal having reached more than 1.4 million poor farmers in 240,000 households in rural Nepal. Its programmes have resulted in the sale of 200,000 treadle pumps and 40,000 drip irrigation systems. It is estimated that IDE interventions have generated an additional income of US$150 per year for each of the 240,000 households whom they have reached.

To download the IDE case study from the GIM database, please click here.

 
GIM Releases New Case on Livelihood and Financial Inclusion in Rural India

About the author

With over eighteen years of work experience spanning sectors and development issues, Dr. Bimal Arora is associated with several organisations, including the UNDP and UNRISD and is on the Advisory Board of CSR International, UK. After spending six years in the UK, researching and consulting on Corporate Social Responsibility (CSR) and Inclusive Business Models, Bimal returned to India in 2009. Bimal has published several case studies on CSR and Inclusive Business Models. He is currently working on a book entitled ‘The Political Economy of Corporate Responsibility in India’ for publication by Chandos Publishing (Oxford). Bimal did his Master’s from the London School of Economics (LSE) and PhD from the Nottingham University Business School, UK (The International Centre for Corporate Social Responsibility (ICCSR).

About the case study

Bhartiya Samruddhi Finance Limited (BSFL) offers livelihood related products and services through the strategic concept of “Livelihood Triad” that comprises livelihood financial services (credit, savings, and insurance), agricultural and business development services, and institutional development services for low-income and poor groups. At present, BSFL has a customer base of approximately one million, half of whom are women, with 90% concentrated in rural areas. BSFL’s financial viability is proving to be attractive for investors: in 2009-2010, it had a Return on Assets of 3.9% and a Return on Equity of 32.7%. BSFL plans to expand its base to ten million by 2014 covering both urban and rural areas.

To download the BASIX case study from the GIM database, please click here.