Facilitators for Change Ethiopia (FCE)

Sharp plant and sales strategy for social soy bean chain

About FCE/Harbu

Facilitators for Change Ethiopia (FCE, 1997) is a local NGO and works not-for-profit. It has its focus on community development and food security. Harbu is a microfinance institute derived from FCE since 2005. It supports the Self Help Groups (SHGs) from FCE, but is not limited to that. FCE introduced the production of soy beans in the Jimma Zone in 2006 to solve the existing soil problem, to raise income and to improve daily diets of the Jimma inhabitants. FCE's main activities are training farmers and their organisations in production and training the women's SHGs in Jimma town to be involved into processing soy bean into soy milk. The social impact of FCE is:

• local employment and  income generation for 400 farmers
• community involvement for 160 women, of whom 13 women into soy milk
• improving quality of life, especially nutrition
• positive environmental impact, diminishing soil erosion

Business case

First, FCE and Harbu were looking for a marketing and sales strategy for their soy bean and their products. Also, the supply chain has to be finished. Last, FCE was looking for feedback on the business mentality within FCE itself. FCE and Harbu asked SharePeople for experts in sales, supply chain and organisational management to help them with this questions. Janne Teerink (Accenture), Jasper van Schaik (Rabobank International) and Lobke Smeels (Twynstra Gudde) were matched with the 4 people team of FCE and Harbu.

Results

Analysis

The team investigated three areas: the marketing and sales strategy of soy milk in the Jimma area, the supply chain and the commercial potential of this supply chain.

Advice

After market analysis at Jimma's highest potential tartet group for soy milk, the well known Jimma University, a presentation and market survey was done in the auditorium of the University. It was a great opportunity to negotiate with the direct market of soy milk: the students. Concerning implementing the supply chain, a concrete organization structure for the Women's Self Help Group has been set up. Also, recommendations for the supply from farmers to processors were given, including height of premium, when prices will be paid and when products will be delivered. Finally, the chain is calculated and although the supply chain has a capital intensive start, it is commercially viable in 2 years time. This is the example of a true social ánd commercial business. An example of the advice of the team is that the new soy milk has to be marketed as a product of national pride. Therefore, an idea is to link it with the internationally famous. An example of this is presented in the picture on the right.

Social impact

The recommendations of the Dutch professionals will be implemented in 2009. Expected is that as a result 400 farmers and 13 women in 1 Self Help Group will have a better income.

Impact on the overseas partner

For the Ethiopian team the advice has a great impact

‘The programme staff is now well equipped with business undertakings and can perform similar business cases. Therefore, the multiplier effect to other projects and target groups is high.' (Bekele Mosisa , CEO of FCE)

Another insight was that:

‘The Dutch team members are good in investigating and getting more information. They do not jump directly into action and they took more time to investigate the issue.' (Bekele Mosisa , CEO of FCE)

Impact on the European professionals

For the Dutch team it was great to work together, from consultant to HRM to bank specialists. The best insight was that keep asking questions is very important to find ‘the question behind the question'. It was a great opportunity to work on a business cases and to be ‘with your feet in the mud'.

Follow up

First of all, the soy milk processing plant will be built: the machine is there and a small building and roof will be built. Then the business will come into action and the organisation of women, processing the soy beans, will be formed.

Click here for the weblog 'DCDL Ethiopia 2008'

Related business cases

• Dorze Lodge, 2008, SharePeople Group Program, Ethiopia
• EMPPA, 2008, SharePeople Group Program, Ethiopia
• Facilitating Farmers' Access to Remunerative Markets (FFARM), 2008, SharePeople Group Program, Ethiopia