In this week’s case study, we explore the business case for smallholder sourcing models and discuss some of the issues and challenges agri-SMEs are likely to encounter when introducing inclusive sourcing strategies.
With support from AgriFI, horticultural exporter Vert Limited, has successfully developed a financially viable and inclusive sourcing model which ensures sustainable supply whilst offering profitable opportunities for smallholder farmers.
Whilst in its early days Vert sourced exclusively from commercial farms and its own company farm, it has, over time, recognised the social and economic value in smallholder integration and invested in a carefully managed transition towards inclusive sourcing.
Vert Limited has allocated most of its AgriFI funding towards developing and strengthening its out-grower scheme, offering three key services: extension support, smallholder farmer certifications, and guaranteed offtake. To date, the company has registered over 3,000 mango growers across Kenya, employing a network of Extension Officers in six counties to provide agricultural support services to its out-growers.
Read or download the full case study for more information on how Vert’s adaptive management style has enabled the company to adjust and refine its strategy for smallholder farmer inclusion which complements its commercial strategy and makes good business sense.