The challenge of sustainable smallholder models
Eagle Extra Lager has long been a SABMiller success story and a source of company pride. It is the result of extensive collaboration between Nile Breweries Ltd and the Government of Uganda to develop a high-quality clear beer, affordable to lower income consumers and made from home-grown raw materials.
Eagle Extra Lager is an award-winning and top-selling brand that offered, at its peak, direct financial benefits to over 8,000 farming families. However, this has not been without its challenges. It can be difficult to match harvest yields with the brewery’s requirements – a problem exacerbated currently by an increase in excise duty, which has led to a fall in sales.
During 2007/08 we collaborated with farmers, our seed supplier and the government to come up with a sustainable solution to this issue and to establish mechanisms to help manage the relationships.
Local purchasing in Ecuador
Ecuador is seeing significant changes to its agricultural patterns as a result of intensive exports, production deficits in neighbouring countries and a demand for crops such as maize for biofuel. As a consequence, the availability of rice – one of the main ingredients in the beer produced by Cervecería Nacional – has fallen.
Working with the Ecuadorean government, the business has established a smallholder programme that provides the company with a stable source of rice for its beer while offering farmers the security of a ready market and a predetermined price. Over 30 farmers have joined the scheme and 1,700 labourers have directly benefited from employment. The aim is to increase the numbers involved sixfold and provide a level of income in excess of the minimum agricultural wage set by the government.
Enterprise development in Uganda 00:02:57
This films shows how SABMiller is encouraging enterprise development in its value chains in Uganda through working with smallholder sorghum farmers