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 Niche Marketing Steps • Identify market needs Supplying goods or services to • Adjust to meet market needs segment or target group outside • Do long term goals provide of mainstream Or a small scale business that for niche market provides specialty item for a • Determine required limited group resources Allows more direct • Create marketing plan communication & interaction between producer & consumer • Prepare for niche market Tool to break into or create a demands larger market
Niche Marketing & Branding Branding Strategies Branding Objectives • Differentiated product Communicate meaningful • Greater price control differences from competitor Develop products around • Reverse the balance of company’s core strength power between producer Target diverse markets & offer countries and major a portfolio of brands supermarkets Brands must fit investors’ appetite for risk • Added value for producers Build capacity – use • Make supply chains infrastructure of existing sustainable & profitable organizations & use outside expertise
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 Best Practice Initiative: Challenge Goodfellow Farm Nassau, Lack of capital and organization Bahamas Strong dependence on imported 5 acres, wide variety, pesticide free seeds, mostly of poor quality & salad greens, herbs, vegetables expensive Organic herb farm Inadequate planting material Traditional farming methods Widespread use of chemicals Specializing in high end greens Improper post harvest selection Use of hydroponics and soil based Inadequate pest & disease control farming methods and natural Shortage of adequate labour fertilizers. Innovative seedling pairings Inaccessible-remoteness of farms to markets
Specialization of Product Best Practice Initiative Challenges Jamaica Exotic Flavours and Increased commercialization Essences Company Ltd. Produce domestic agriculture base puts emphasis on product flavours, essence and purees. specialization, but not Use of lower quality ‘reject’ fruit and confined to the production vegetables to produce value added of high value crops. processed products. Transition cost variable Created to improve production capacity inhibits small farmer. through adoption and application applied technology. Small farmer commodities Developing local expertise through the are becoming differentiated Spinning Cone Technology. because of particular Partnered to develop line of cosmetics requirements to meet using local purees and essences. quality, size and delivery 2009-2010 JEFE successfully produced standards. 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 Best Practice Initiative: Inability to keep up with The Grenada Chocolate increasing consumer Company, Grenada demands for new products. Specialized in artisan organic dark chocolate production Lack of technology and Collaborated with small cocoa modern production farmers & started Co-op of organic cocoa farmers – bean to bar processes. Associated with local farmers to Lack of Public Private convert to organic & become certified Use of solar-electric powered antique Partnerships. machines & fair transport Developed specialized niche market locally & internationally for product
Belmont Estate, Grenada Agri-tourism Enterprise Premiere agri tourism attraction. Product offerings: Unique 17 th century, 400 acre Organic farm – cocoa, nutmegs, spices, fruits & vegetables plantation integrating: Restaurant Organic farm Various tours Local culture Organic dark chocolate History Heritage museum Traditions Gardens Cuisine Cultural Entertainment Plant nursery Bon Bon & chocolate shop Commenced Tourism component of Goat Dairy – producing goat’s cheese the business in 2002. 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 optimization of the use of indigenous capacities & resources.
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