The Holistic Approach

Tanzania’s smallholder farmers know how to survive. Oxen pull plows through dark and rich volcanic soils. Seeds are scattered by hand and weeds are removed by long-handled hoes. Chemical fertilizer is used sparingly and manure is scattered liberally. Fungicides and pesticides are sprayed from backpacks by young men in t-shirts and sandals. When one crop fails, another is planted to take its place. Their work is patient, it is adapted to the land, and it is utterly and truly human.

Harvest brings its fruits, which in turn draw the middlemen. Armed with rusty trucks, they traverse the farmlands trading cash for sacks of produce. The farmer, isolated from the large markets and devoid of concrete market information, can accept their price or risk waiting for another trader to come along. Debts weigh heavily in their minds, as does the promise of instant liquidity. There are few alternatives, so they accept.

With the surge of the harvest’s supply, prices fall. Clever agents and middlemen rush to buy, then hoard supplies in silos. Prices go up eventually, sales are made, and the profits do not return to the farmers or their farms. Instead, urban houses are expanded, cars are purchased, and warehouses are expanded close to town. The farms and rural infrastructure stays the same, with gradual improvements easily erased by losses in the next season.

We asked, “Is this system necessary?” In March, a focus group of 15 local oil mills and farmers told us, “No”. We proposed the creation of a network of rural storage sites where sunflower farmers could bring their harvest. When the gunny bags are checked in, oil mills could then negotiate directly with its respective owner. The middleman is removed and the farmer is able to capture a larger profit margin. Higher profits mean higher incentives to produce. Traceable supply streams mean the oil mills know where to focus on outreach. The system becomes more efficient and economic resources are shifted towards rural areas.

This is just one example of where we seek to understand our environment and innovate solutions with its stakeholders. Though we are far from such a vision of a reformed supply chain, we think into the future and beyond the fields. We recognize that success goes beyond good seeds. We must be thoughtful and aware of how we can serve our customers in all aspects of their business. It will profit both us and our community in the long-term.

-Gordon Day