Linking Small Farmers with Agribusiness: Niche Markets and Branding - - PowerPoint PPT Presentation

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

• f 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

• rganizations & 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

• f 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

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

• ptimization of the use of indigenous capacities &

resources.