Tuesday 6 November 2012

Vredeseilanden and Colruyt team up with farmers of Benin to increase the quality of rice (case on principle 2)



“For me the most important thing I would identify in a collaborative process is that it contributes to an on-going joint reflection on how to improve sustainable sourcing."

By Mieke Lateir, Vredeseilanden Program Advisor



Summary
36 tons of rice at the supermarket is merely the tip of the rice mountain. The story began eight years ago when Vredeseilanden was looking for a way to improve the quality of the rice produced in Benin and improve it on to a more competitive level, especially when compared to imported Asian rice. 
The potential was there, but the rice from Benin did not have the best reputation. The farmers decided to challenge themselves, with the support of Vredeseilanden, to respond to Western consumer quality standards in order to improve their rice quality in general.  Rice was purchased by Colruyt and rice importers such as Boost Nutrition. By exporting, Benin farmers had to build a network of cooperatives and to think commercially for their own market.  This meant that purchasers were also faced with the realities of dealing with small-scale producers.

At the end of 2006, two employees of the rice project in Benin were flown to Belgium to follow an internship at Colruyt.  They made acquainted Colruyt headquarters with the internal control systems in Benin and showed how the distribution and marketing was done.  The knowledge of the rice importer and processor, Boost, had been a great motivator for farmers to improve the quality of their rice. Moreover, the farmers' organisations had decided to work towards FLO certification.  

The Challenge

One of the main challenges was the organisation of the farmers in order to respond to the demands of the market, both internationally and locally.  Most farmers had been working in the cotton sector- a sector which has been coordinated by the state (state authorities providing seeds, inputs and then also buying the product at the end of the chain).  This meant not only meant a shift in thinking but also an overview of the necessary technical procedures required to respond to quality requirements.   One of the important decisions was the choice of the variety of rice – it should respond to foreign consumers taste but at the same time remain viable for the local market.  Vredeseilanden organised a visit to Nigeria, an important market, in order to exchange with consumers there and understand their demands. It quickly became apparent that a change of the variety was required. The one they were using was not suited to Nigerian cooking methods.

Dealing with international quality standards proved very demanding and often difficult to reach for small-scale farmers, yet it was a crucial part of the collaborative process.

When engaging with several persons at different levels of the organisations and companies involved, it’s important to not only succeed within the case but to provide leverage for further progress. For Colruyt the parties involved were numerous: rice purchasers, those responsible for sustainable development, the CEO, the personnel as a whole. At Boost, there was the export and industrial sales manager, the quality manager and technical staff; while at the farmer’s level it was not just the farmers directly involved in two villages, but also the higher farmer organisation who demanded to be involved in key decision moments and capacity building sessions. At the top of the pyramid, the national rice farmer’s organisation also wished to gather and build evidence from the case study for its political work.

With so many involvements, it was vital to recognise the expertise and added-value of the different actors involved and attribute clear roles, including one for Vredeseilanden.

It’s important to allow space to get to know each other’s reality, to create respect and confidence. Regular trips are now in place so that people from Benin can visit the partners here in Belgium and vice versa.  In the end collaboration processes are always built on the people involved.

The Approach

Vredeseilanden enlisted the support of the Farmer Organisation on the ground in setting up quality procedures and supporting farmer’s methods of information gathering in order to make profound decisions.  Boost was important in providing support for quality procedures and making them feasible for the farmers. Boost Nutrition also added a processing procedure at the end of the chain in order to eliminate quality failures.  Colruyt created the market for the product and engaged a fair trade relationship with small-scale farmers. They showed a great deal of patience in order to make the project successful.

But the biggest job was done by the farmers themselves who succeeded in delivering a quality product to the volumes required and succeeded in receiving Fair Trade certification.  Their enthusiasm within a challenging context has been at the forefront of moving them and the other partners forward.
Fair Trade certification was used as leverage tool for the farmers. It enabled them to install the necessary procedures for better quality (via an internal control system) and to respond to social and ecological criteria. The Fairtrade certification guarantees the long term fair price for the farmers.

Apart from the direct interventions within this chain, the case was also important as a learning process towards integrating sustainability in sourcing policies. 

The collaborative advantage

It is important to understand the realities for all stakeholders and to create a feeling of respect and confidence as this ensures all are able to move at the same pace and allow for each other’s demands.
Undoubtedly the expertise of different actors involved makes it a more interesting experience. Problems can no longer be solved in isolated settings - joint expertise leads to bigger impacts and to a more competitive chain.  Contributions to a joint reflection process on sustainable sourcing  eventually lead to a much broader impact than the case itself. Colruyt and Vredeseilanden are now working on the analysis of a product that’s already on their shelves. The next step is to improve inclusiveness for small farmers and enable more sustainable sourcing.

Future Steps
  • Direct impact: improving the processing of the rice
  • Indirect impact: broadening the Vredeseilanden rice project towards other West-African countries
  • For Colruyt: moving towards sustainable sourcing
Conclusions

Max Havelaar labeled rice can be seen at Colruyt, Okay and Spar. It will be sourced from less than 1% of the total annual production of rice farmers taking part on the project, as part of the harvest is consumed by the producers and another part is sold into the local markets.

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