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