Working with barley farmers in India
SABMiller India has been working with the government and Cargill India Inc since 2005, and more recently with the Morarka Foundation, to improve the barley supply chain in India. Saanjhi Unnati (’Progress through Partnership’) is a project with farmers in Rajasthan that provides the company with a reliable source of good quality barley, while guaranteeing a market for the crop at a price in excess of the ‘Mandi’ (the wholesale market price). This benefits farmers and the local community in maximising land use and securing income.
During 2008 the number of farmers enrolled in the project has increased to 6,024 and the amount of barley sourced locally has grown to 16,000 tonnes.
The project has proved encouraging and the next steps are to finalise the details of a new micro-finance scheme, begin a social impact exercise and start a new round of seed trials.
The challenge of sustainable smallholder models
Eagle Lager has long been an 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. It is now an award-winning product and top-selling brand offering, 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.
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