A new report (pdf, 44 pages) by Harvard University and FSG Social Impact Advisors argues that the food & beverage industry plays a unique role in expanding economic opportunity because of its universality to human life and health. The industry operates at multiple levels of society where billions of people grow, transform, and sell food, particularly in developing countries where agriculture dominates all other economic sectors.
Yet a vast share of these workers cannot both satisfy their immediate consumption needs and earn sufficient income from food markets to improve their lives. The report provides insight into how pioneering large firms are breaking this dilemma and building economic opportunity around food & beverage value chains.
Case profiles listed in the report:
- Starbucks, Conservation International, USAID and Verde Ventures brought together a set of assets and capabilities to transform coffee production in Chiapas, Mexico. The results are enhanced livelihoods for coffee growers, protection of the biodiversity of the region through sustainable agricultural practices, and a specialty premium coffee for Starbucks
- Nestlé and UNDP in Pakistan are implementing a gender support program providing rural women in the Punjab province with training in livestock management and care. Over threee years, this program will create a cadre of 4,000 women livestock workers who can deliver primary livestock management, production, and extension services, earning up to $42 a month.
- Reliance Retail is sourcing fresh agricultural produce directly from thousands of farmers in Indian villages through a network of Collection Centers. Reliance provides a guaranteed market, reduces transaction costs, and trains the farmers in better and more sustainable farming practices. The company's initiative has brought higher incomes for farmers and reduced produce spoilage up to 35%, resulting in better quality products for Reliance retail stores.
- SAB Miller, Cargill, and the Morarka Foundation have been working with the government of the Indian state of Rajasthan and local subsistence farmers to support the development of a healthy and viable barley malt industry to supply local breweries.
- Unilever and Project Novella in Tanzania - Unilever has partnered with local organizations to establish a locally-owned supply chain for Allanblackia (AB) oil, a new raw material to be used in margarines and spreads. Calles Project Novella, the initiative is increasing income for farmers who cultivate AB tress, generating jobs in the AB supply chain, and preserving the biodiversity of the region.
- Danone Grameen is rethinking the entire value chain for yogurt production and marketing so that it employs and serves the poorest segments of society.
- The Coffee Group at ECOM, a leading agricultural commodities trader, has partnered with Utz Certified "Good Inside" to provide technical assistance and training to hundreds of Honduran coffee farmers, enabling them to produce high - and consistent-quality coffee through sustainable farming techniques.
- Coca-Cola Sabco is creating significant economic opportunities in Africa and Asia by providing the option to create and operate Coca-Cola Manual Distribution Centers (MDCs). MDCs account for more than 95% of the company's sales in many areas, and they have helped it to achieve double-digit sales growth since the model was implemented.
Comments