Events

GADCO Farmer

Your Coffee, Their Lives, Our Planet

I recently attended a conference on “Sustainability as a key factor for mitigating risk in agricultural supply chain finances,” co-hosted by the Rainforest Alliance and Citi Foundation. A pretty specific topic, for sure, and you may be asking yourself, “how many people are there trying to figure that out?”

Well, you’d be surprised. There were at least 80 people there, and potentially many more that would have come if they could. Why, you may ask?

A simple answer, really: a lot of the things that people consume come out of the ground – coffee, tea, chocolate, cotton, and almost everything we eat. What many don’t realize is that in the majority of the world, the people who grow the stuff we consume are among the world’s poorest, and the way commodities are produced is having a bigger and bigger impact on the environment. Our global supply chains now matter more than ever.

Most of the world’s poor are small scale farmers. And a major reason they remain poor is because they struggle to get their products to market. Even when they do, because of a multitude of reasons – lack of transportation infrastructure, lack of access to capital, lack of accurate market information – they are often abused by exploitative middle men in the process and fail to capture the true value of what they produce.

A Western Seed customer

At the same time, conventional agricultural practices are creating a perfect storm of environmental challenges: decreasing water tables, loss of arable land, deforestation, loss of habitat, and pollution from pesticides and fertilizers.

People need the stuff that comes out of the ground, but we also need to get it in a way that enables producers to have stable and adequate incomes, and that creates the environment to sustain life in the long-term. Without both conditions, the system cannot be considered sustainable. One of the best ways to achieve both is to develop new supply chains and new business models that fairly compensate farmers and reward sustainable agriculture. At the most basic level, engaging smallholder farmers – farmers with tiny plots of land – in global agricultural supply chains may be one of the most powerful ways to reduce global poverty and ameliorate environmental degradation.

So things like Fair-Trade, organic, and certified sustainable are not just hip new ways to show you care – they are actually the beginning of an effort to transition our agricultural systems into a means to meet customers’ needs, but also to address critical social and environmental issues.

What’s exciting is that major brands and retailers— Wal-Mart, Coca-Cola, Pepsi, Starbucks, Unilever –recognize the value of sustainable supply chains (short hand for this effort). But huge challenges stand in the way of improving these practices, especially among the millions of disaggregated smallholder farmers. OK- reality check – it’s anything but simple. Tensie Whelan, who leads the Rainforest Alliance and co-hosted the event, mentions the growing role of companies in her blog on the event:

Hundreds of companies are working with civil society (and occasionally, governments) to help millions of producers to invest in sustainable practices-helping them to become more viable small businesses and, not incidentally, more stable long-term suppliers.

___

A few weeks ago I joined these 80 people from companies, financiers, foundations, non-profits, and academics, because Acumen Fund has developed a portfolio of companies dedicated to improving farmer productivity, and we’ve begun to find innovative business models that we think will contribute tremendously to the advancement of socially and environmentally sustainable agriculture. Companies like Global Easy Water Products, which distributes low-cost irrigation technology tailored to small-holder farmers in India, and Western Seed, which sells high-quality hybrid seeds to farmers in Western Kenya who for generations have used farm-saved varieties.  Or companies like GADCO, one of Acumen Fund’s newest investments from our new operation in West Africa, which engages smallholder farmers in Ghana in the production of rice for local markets, increasing their productivity through improved inputs and linking them to a higher value market by managing the whole supply chain.

I was there to better understand how we can partner with companies, NGOs, and multilaterals to make sure that these innovations truly achieve scale, both for individual companies in our portfolio, and for the broader network of global supply chains.

My big ‘Aha’ at this conference is that a challenge this complicated takes the networks, expertise, and capital of a whole constellation of actors. Acumen’s niche here is, I believe, in finding and supporting innovation in the sector, and whenever it makes sense, to be a great partner to those organizations who need this challenge addressed in bold, new ways:  to corporations who know they must move in the direction of sustainability for a myriad of reasons, and to foundations (such as the Bill & Melinda Gates Foundation, which helped us launch our agriculture portfolio), who have made it their business to tackle the world’s biggest challenges.

Making sustainable supply chains the new norm and not just a niche or fad will require tremendous effort on the part of these diverse actors, and the creation of whole new systems that can support, expand and monitor sustainable practices. In all of this Acumen Fund aims to be a source of innovation through the business models we invest in. And always, we strive to be a champion for entrepreneurial solutions and for the entrepreneurs themselves, recognizing that transforming markets and raising standards can just as easily create new barriers for farmers and entrepreneurs that are already struggling.

At this event, I was humbled by the complexity of the issue and impressed by the commitment and expertise of all those gathered. I left convinced that Acumen Fund and our agriculture portfolio has a unique role to play through our continued investments in enterprises that unleash new ideas for a system that must evolve – for producers, for the planet, and for all those who consume and know they must do so in ways that are sustainable. That is, for you and me.

Yasmina Zaidman is Director of Communications at Acumen Fund. Yasmina works with diverse audiences and strategic partners in the international development, philanthropic, academic and corporate sectors to share insights and replicable models from Acumen Fund’s investment portfolio.

Comments

Four Emerging Leaders Building the Future of Pakistan

With 60% of Pakistan’s population living under less than a dollar a day, the external narrative of Pakistan is characterised by what the country lacks; a lack of security, a lack of women’s rights, a lack of access to education, and the list goes on. What this narrative ignores are the individuals who work tirelessly to plug those gaps. From human rights to education to food security, Acumen Pakistan Fellows are affecting change through organizations committed to tackling poverty. Their work is truly inspiring, promising a hopeful future for Pakistan. Here are four fellows that are building this future for Pakistan and come together periodically to share learning experiences and grow as leaders. Through five seminars, the fellows have strengthened skills of adaptability, communication, empathy and problem solving through listening. If you are committed to creating change in your community, apply now to be an Acumen Pakistan Fellow. The deadline is 29 September. [Read More]

Acumen Partners with AlphaSights to Better Access Global Expertise

In our work investing in social enterprises that deliver critical goods to the poor, there is a substantial amount of work to evaluate each investment opportunity. A critical part of the diligence process, particularly when it comes to emerging markets, is speaking with industry experts who can provide reliable information about sector trends, market dynamics and public policy – all of which affect our evaluation of potential investment opportunities. [Read More]

DE-BUNKING THE BURDEN MYTH: IMPACT DATA GOES LEAN

Our manifesto begins, “it starts by standing with the poor.” Yet for good reasons, the sector has found it challenging to measure which customers are actually being served through social impact investments – getting accurate data on incomes is notoriously difficult and the logistical challenge and cost of conducting surveys in person prohibitive. [Read More]

Questions for Aspiring Leaders

Bavidra Mohan, Acumen’s India Fellows Manager, attended this years Aspen IDEAS festival as a Scholar. The Scholarship program was established to invite guests from around the world to bring a diverse set of experiences, voices and perspectives to the rich conversations that take place at the IDEAS festival each year. [Read More]

Give Impact Investing Time and Space to Develop

Impact investing has captured the world’s imagination. Just six years after the Rockefeller Foundation coined the term, the sector is booming. An estimated 250 funds are actively raising capital in a market that the Global Impact Investing Network estimates at $25 billion. Giving Pledge members described impact investing as the “hottest topic” at their May 2012 meeting, and Prime Minister David Cameron extolled the potential of the sector at the most recent G8 summit.  Sir Ronald Cohen and HBS Professor William A. Sahlman describe impact investing as the new venture capital, implying that it will, in the next 5 to 10 years, make its way into mainstream financial portfolios, unlocking billions or trillions of dollars in new capital. [Read More]

10 Books We’re Reading This Summer

What are you reading? It is a common question here at Acumen, an organization full of avid readers constantly trading favorite book titles that discuss leadership, impact, development and branding. Here are 10 stellar books we’re reading this summer. These books and others provide a framework of thinking, a spark of new ideas, a platform for debate. So, what are you reading? [Read More]

How Acumen Brought Back my Fire

Eda is an East Africa Regional Fellow from Nairobi, Kenya and is the Founder and Director of Halisi Trust, an organization that seeks to challenge the vices that plague society and encourage transformational development in Kenya’s youth. When Eda applied for the East Africa Fellows Program, she felt disillusioned and stuck. Below, Eda discusses how Acumen’s Regional Fellowship Program brought back her fire. Now, Eda has engaged nearly 6,000 people through outreach events and the Mkenya Halisi movement continues to grow. Acumen is currently accepting applications for the next class of East Africa Fellows. APPLY TODAY! [Read More]

Imagining the world as it could be

Christine Gitau is an East Africa Fellow and an enterprise coach at Craft Afrika, which provides business support services to craft entrepreneurs, enabling them build viable and thriving businesses in Kenya. At Acumen we often use the term “Moral Imagination” when talking about leadership. Christine wrote a reflection on how this concept has shifted her thinking. We could not be more proud of what she is building! [Read More]

How two Acumen Fellows are disrupting the education model in India

Whether its running youth soccer programs, providing vocational training services, or transforming the education system in India, Acumen India Fellows are driving real change in their communities.  Abbas Dadla and Abhilasha Sinha are India Fellows who are addressing the teacher shortage in India through the use of technology and peer collaboration. Find out what they are building below.  If you have grit, resilience and a commitment to creating change in your community in India, East Africa or Pakistan, we encourage you to apply for the Regional Fellowship Program! [Read More]