| As the son of farmers, a former farmer myself, and one who worked his entire life with farmers, there is nothing more natural, pleasant, fun, and easy for me than talking with farmers. I empathize with farmers; I understand them well, their pain, troubles, problems, hopes, and dreams. Empathy is a required and essential “commodity” and a needed ingredient to work together effectively. And effective cooperation, based on mutual trust and respect, is a prerequisite for changing farmers’ harsh reality. Note, the WHY, which we discuss in our meetings, are the farmers’ DREAMS. REALITY CHECK AND THE STARTING POINT This week I was in the Keur Mvire village in the Niayes region in Senegal. As I stroll around the mango orchards, I observed the gorgeous, stunning, perfect Kent variety mangoes. If exported when perfectly mature, each mango holds the potential to improve the farmer's livelihood and provide healthy food and happiness to the lucky consumer who will enjoy its fantastic taste. In the Niayes region, the soil is sandy, and the weather is hot and dry for most of the year. I asked the farmers, “When the harvest comes, how many fruits out of ten will you market?” The farmers were unsure about the exact answer; one said, “The fruit flies “steal” from me seven fruits so that I can market only three." Another farmer said, “The fruit flies leave me only two fruits to market.” A third farmer said, “The fruit flies “steal” nine fruits, leaving me with only one fruit to market.” In my head, this immediately translates to 70% to 90% fruit loss! The farmers look very upset and angry with the fruit loss caused by the fruit flies. The exact numbers, i.e., loss of 50% to 90%, I hear from other mango growers in different places in Senegal, Africa, and Asia. What is the impact of such high fruit fly infestation on the farmers' financial performance and livelihoods? Let’s assume for a moment that if a farmer had harvested and exported all his fruits and sell them to the best export markets, for the best price, he would fetch 1,000$ per hectare. Hence, 1,000$ is the farmer’s maximum potential income per hectare. But, in reality... 1) Because of the high fruit fly infestation, the mango growers harvest their produce early in the season before reaching its full size and maturity. Meaning, the farmer is losing at least 10% of the fruit size and weight. Now we are down to 900$. 2) Although harvesting early, fruit fly infestation is 50% to 80%. Even with "only" 50%, the farmer potential is now down to 450$. 3) Because of the high infestation, marketing is limited to(almost only)the low price local markets. Meaning, 20% to 80% (average 50%) lower price per kg versus export markets. Now the farmer’s potential is down to only 225$. When we combine the above numbers, we see that practically farmers lose over 70% of their current potential income. Regardless of his high losses, the farmer’s 100% investment per hectare remains unchanged. We should add to the above losses that the yield those farmers receive is only 5% to 25% of advanced mango growers’ (e.g., 0.3 to 10 tons/ha., VS. 30 to 60 tons/ha.). If we calculate the low yield (average 90% less than advanced farmers) together with the rest of the losses, we will see that the farmer loses 90% and up to 99% of his income! WHY is the difference in yield so big? Because which investor will invest in a business that is regularly losing over 70% of its potential income and can't get quality produce for high-value export markets (because of fruit flies)? TAILOR-MADE BUSINESS MODEL The Green Valley program and business model are now very different from how it started four years ago and even only a year. WHY? This results from our field experience, which includes discussions with farmers and stakeholders, fieldwork, and constant improvements, during that period. We translated the consolidated experience into practical changes to help the model better suit the reality of African farmers and stakeholders. “TURNING LEMON INTO LEMONADE” Like other emerging markets, Africa is full of limitations and challenges (problems) for foreign business partners, such as Green Valley. I found out that the best way to cope with the above is by looking for the upside in every "limitation," "problem," and "challenge." Hence, in its updated, current configuration, the Green Valley program and business model “confront” the shortcomings and weaknesses of the African agro-sector, the way a chef would "turn a lemon into lemonade." The “lemonade” Green Valley creates is a sustainable advantage for African mango growers, value chain partners, and involved stakeholders. As a result, this year, I see a clear and noticeable difference in the responses we receive from the farmers, value chain partners, and stakeholders. |