This document discusses how businesses can source from smallholder agricultural producers in a way that benefits both businesses and development. It provides examples of companies that have successfully implemented smallholder sourcing models, including The Body Shop, Plenty Foods, and Marks & Spencer in partnership with Oxfam. Sourcing from smallholders can provide new supply sources, increase productivity, and boost brands through transparency and promoting development. Smallholder sourcing requires investment but pays off through more stable supply chains and political systems as well as future business opportunities.

1. How to source from small-scale agricultural producers Dr Lea Borkenhagen and Jo Zaremba

2. Take Home Messages Having smallholders in supply chains is now core business It is doable and you can make it happen

3. Outline Drivers changing sourcing practice What smallholder agriculture can do for your business What your business can do for development Examples: Body Shop, Plenty Foods, Marks & Spencer

4. Abbie Trayler-Smith Drivers changing sourcing practice

5. Drivers changing sourcing practice Consumers Managing risk in the supply chain Reducing Rising Costs Others are doing it Governmental Policy

6. What smallholder agriculture can do for your business

7. Smallholder agriculture and your business New sources of supply Productivity increases Transparency Development costs offset

8. Smallholder agriculture continued Consumer satisfaction Brand R&D Company change

9. What your business can do for development

10. What your business can do for development Investment in smallholder agriculture pays Small corporate investments can support large-scale change Getting it right for women is critical Long term gains: more political stability, better opportunity for business

11. Case Studies

12. Body Shop – The company & Market Started 1976 Ethical values and community trade BRAND depends on traceability & quality = ethical reputation 65%+ “wet product” contains CT ingredients 31 suppliers in 23 countries >25,000 direct beneficiaries

13. Body Shop – Business Model Manufacturing –commercial contractors required to meet ethical codes of conduct, including FAIR PRICE Sourcing – all CT ingredients traceable to Body-shop-nominated producer groups (E.g. ethanol from CADO) Supplier assessment to assess ‘fit’: Community organisation Community needs Direct benefits Commercial viability Environmental sustainability Work WITH communities to develop capacity / avoid ‘dependency’

14. Body Shop – Outcomes & Benefits Producers: Direct benefits to producers & families: fair price (income); forecast demand; community fund projects Company: Sustainable, dependable, quality ingredients Customers: Products meeting their expectations in terms of ethics & quality “If you can’t hear the voice of the farmer in everything that you do then what you are doing is wrong.” Anita Rodrick

15. Plenty Foods – The company & market

16. Plenty Foods – Business Model Manufacturing / Processing Fully owned by Plenty Foods Sourcing Majority of inputs directly from farmers Additional ingredients (sugar / coconut / vitamins etc.) from market Production Forward contracts / guaranteed floor Price Multi-stakeholder approach (Government, NGOs; Business) Farmer organisations or individuals Facilitate Service provision (loans; insurance) Input provision, training, capacity building

17. Plenty Foods – Outcomes & Benefits Producers Guaranteed floor price Capacity building; access to services; viable business Company: Reliable supplier base (quantity; quality; price) ‘Image’ - Trust bt. company & producers Brand reputation/vision & objectives Customers: Trust in company Reliable, quality, price worthy products ‘Farmers interests are absolutely our interests – we are committed to their profitability.’ Mohan Rattwate, CEO

18. Oxfam and Marks & Spencer: Finding Common Ground

20. Promoting rural women’s empowerment

22. Promoting sustainable cotton & committing to Fairtrade cotton