Flower Shop Business Planning Template

							AGRICULTURE –
AN AFRICAN OPPORTUNITY
Presentation to CBC FORUM – KIGALI

MAY 11, 2010
Presented by Nigel Dorward
www.thebettertradingcompany.com




                                     D
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        The Better Trading Company

The Better Trading Company is a dynamic, for-
profit trading company that acts as an ethical
agent.

We connect leading retailers and markets with
exceptional     horticultural and     agricultural
entrepreneurs in Southern and Eastern Africa.
          Better Team
• Zimbabwean Agriculturalists
   – Committed to Africa
   – Skill set suited to Africa
   – Ability to understand BOTH ends of the
     supplier/customer dynamic.


• What was happening in Africa?
   – Economics
   – Politics


• What were the opportunities?
           Better Team

• Offices in Cape Town, Harare & London
• Team experienced in:
   –   Agri-business
   –   Marketing
   –   Environmental impact
   –   Social Assessment


• On-the-ground presence
          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
                    Shell Foundation                 CSI, CSR discussions          Retailers



 Other Funders
  (From early                                   The Better Trading Company
    stage to
 private equity)
                                    Consulting                      Technical        Sales &
                             (Due diligence, market research)       Assistance      Marketing




Key
      Funds (Grant & revolving grant)
      Funds (Investment)                                    Pan African Projects
      Product
      Consultancy
      Product & Market Dev
           Better Process
• Our business model is simple
   – Identify demand
   – Match with quality product
   – Baseline study to support social and
     environmental practices
   – Build market relationships
   – Develop innovative products
   – Build track record as supply chain
     partner
   – Ensure commercial viability
   – Assess and measure impact on
     community and environment
• Our template for all projects
          Better Process
Standards & Accreditations
• Assess across three platforms:
   – Product
      • Premium quality
      • Meet EU retail and quality
        management requirements
   – Planet
      • Environmental aspects/project
        planning
      • Efficient use of natural resources
   – People
      • Provide jobs
      • Access to social services
      • ETI & ILO guidelines as a minimum
         The Better Flower Company
Better Product
• Began with creating sustainable solutions
  for harvesting flowers in Cape Floral
  Kingdom
• “Fynbos” is the name given to these
  flowers, shrubs and grasses from the
  region
• Focal product traditionally Protea
• Incorporate other cut flowers such as
  roses when not in season
          The Better Flower Company
Better Planet
• Harvesting in the wild can have a
  negative impact
• Assure that teams are trained in
  good practices
• Audited by local conservation
  authorities
• Provide Agulhas Biodiversity
  Initiative with viable commercial
  solutions
• In turn, ABI assures our efforts are
  conservation compliant
         The Better Flower Company
Better People
• Recognised economic stresses
  caused by seasonal growth of
  Protea
• Began incorporating Kenyan roses
  in the off-season
• Allows for jobs and livelihoods for
  pickers, pack-shed workers and
  their families to be sustained year
  round
• Always looking for more sources to
  positively impact more communities
                    Shell Foundation                 CSI, CSR discussions          Retailers



 Other Funders
  (From early                                   The Better Trading Company
    stage to
 private equity)
                                    Consulting                      Technical        Sales &
                             (Due diligence, market research)       Assistance      Marketing




Key
      Funds (Grant & revolving grant)
      Funds (Investment)                                    Pan African Projects
      Product
      Consultancy
      Product & Market Dev
           Better Agriculture

• 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

• Rwandan Agriculture
    – Opportunities
    – Comparative advantages
       • Regional
       • Pan African
       • International
•   Goals of the Government of Rwanda
•   Needs of the Rwandan Farmers
•   Needs of Rwandan Traders
•   Needs of Rwandan Consumers
              Hub and Spoke
3 year plan
•   Why phased?
     – Reduce risk
         • Retailers 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
              Hub and Spoke
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
Phased Approach
              • Phase 1
              •   Set up Hubs with growers
                  experienced in export production
              •   Engage existing small holder
                  schemes (Spoke) to work with the
                  Hubs
              •   Begin Skills transfer from Hub to
                  Spoke




              •   Plant initial crops timeously
              •   Low Care packing
              •   Building and Testing Market Linkages
              •   Planning for Phase 2
              •   Early stage Community Programme
              •   Deploy Environmental plans
              •   Baseline Studies
              •   ESTABLISH FEED-BACK LOOPS
Phased Approach
            • Phase 2
            •   Spoke production relative to supplier
                programmes agreed by retailers




                  .
            •   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
            •   Review Baseline Studies
            •   Planning for Phase 3
            •   IMPLEMENT LEARNINGS FROM FEED-
                BACK LOOPS
Phased Approach
           • Phase 3
           •   Scale Up Hub and Spoke production
               relative to supplier programs agreed
               by Retailer 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
           •   Review Baseline Studies and build on
               knowledge base
           •   CONTINUED DEVELOPMENT OF FEED-
               BACK LOOPS
          Case Study

• TBTC secured a contract to supply Chillies to Tabasco®
• Final Project Due Diligence completed
• TBTC identified key partners
   – Growers
   – Service Providers
• TBTC developed the plan in a phased approach
• TBTC raised project funding
•   2009
     – Planted crop on „Hub‟
          • Skilled large scale farmer
            ideally located to small holder
            farmers
          • Aligned with the goals of
            developing ethical value chain
     – Roll out of Extension services
     – Planning Logistics needs for next
        phase
     – Identifying individual farmers from
        small holder sector – „Spoke‟
     – Adapting to specific needs of
        production region
•   2010
     – More work on crop planted on
        „Hub‟
     – Field days held with Small Holder
        farmers
          – Bedding down the concept of
              Hub and Spoke value chain
          – Training
          – Explaining roles and
              responsibilities in relationship
          – Education on needs of
              various role players in supply
              chain

       BUILDING RELATIONSHIPS
         GROWING THE IDEAS
•   2010
     – Identifying actual Small Holder
        farmers
     – Preparing for production
          – Seedlings
          – Other Inputs
          – Labour Planning
          – Logistics Planning
          – Deploying Extension Officers
       Better Skills

Fit For Purpose Team
• Key retailer relationship
  management
• Extensive agricultural
  knowledge
• Supply chain management
• Innovation and product
  development
• Integrated project
  managers
          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
      • nigel@thebettertradingcompany.com
      • Mobile +27 72 392 0721

• Better Agriculture
   – Mike Bailey
      • mike.bailey@thebettertradingcompany.com
      • Mobile +263 912 601 146

   – Pete Caminada
      • pete.caminada@thebettertradingcompany.com
      • Mobile +263 11 601 271
          Better Tea Tree Oil
• Operated by Earthoil and part
  financed by TBTC
• 500 small scale subsistence
  farmers near Mt Kenya
• Grow high value organic oil crops
• Community Trade Status
• Sold to the Body Shop
• Only leaves used in oil production,
  wood used for cooking fuel –
  sparing indigenous trees
• Baseline study promoted positive
  changes
          Better Rooibos Tea
• Working with Cape Natural Tea
• Introducing Rooibos to marginal
  agricultural land
• Elim, Southern Cape, South
  Africa
• First harvest yield exceeds
  averages
• Managing bridging finance and
  co-investments
• Cultivation has lesser impact
  than other agricultural activites
          Better Rooibos Tea
• Provides much needed income
  diversification and black
  empowerment in tea industry
• Significant impact on livelihoods
• Motivating workers to be
  entrepreneurial and start their
  own businesses
           Better Cherry Peppers

• In partnership with Carara Agro and The Natal Pepper
  Company
• Developing range of value added peppers – pickled and
  stuffed
• Fast growing segment in UK market
• Environmentally friendly crop as little water, pest control
  or fertilisation
• Labour intensive during planting and harvesting seasons
• Value-add near to source provides jobs
• Provides jobs to outlying communities
          Better Chillies

• Working in partnership with Elephant Pepper and
  McIlhenny & Co
• Managing production of Tobasco® Chillies in Zimbabwe
• Grown in a mixed large/small farm model
• Central hub provides supplies, expertise, as well as
  aggregates, packs & ships the product for small out-
  growers
• Environmentally friendly crop requires little water, pest
  control or fertilisation
• Harvested continuously for six months provides jobs for
  a good part of the year