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Africa’s small farmers

Africa’s small farmers. Argan oil in Morocco. 33million small farms in Africa; small farms make up 75% of global poor . More than 70% of Africa is rural smallholders. Called “Liquid Gold” in the cosmetics industry. Retails for ~$1000/L.

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Africa’s small farmers

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  1. Africa’s small farmers Argan oil in Morocco 33million small farms in Africa; small farms make up 75% of global poor More than 70% of Africa is rural smallholders Called “Liquid Gold” in the cosmetics industry Retails for ~$1000/L Great wealth is created from Africa’s vast natural resources, but producers see very little of it Less than 3% of sale price goes to producers Producers lack skills, machines, and Financing for value added services Even multinationals with extensive resources (Mars, Nestle) have difficulty sourcing from small farmers No Moroccan brands selling abroad Small farmers lack the training, technology, and investment for high and steady yields Given the rural/urban population distribution in Africa, a successful poverty eradication strategy must give priority to smallholder agriculture. – Harris Mule, IFAD

  2. Current Argan Oil Value Chain Major Beneficiaries International buyers Farmer family Middle man Cooperative International markets fruit oil in bulk fruit final product harvest fruit from tree transport to cooperative shell nut press oil add value sales Customers Large margins; beautiful skin Large margins from sale Very limited income from sales Transport of heavy fruit, increasing cost Production capacity limited Equipment under-utilized Skills and assets to participate in higher margin activities missing Barriers for small farmers Jamela’s Argan Oil Value Chain Major Beneficiaries Farmer family Decentralized nut cracking Central processing facility International markets Farmer family final product almond fruit press oil add value harvest fruit from tree Customers shell nut Increase capacity Increase utilization rate of equipment Build skills and assets to produce final goods Increase value capture in international markets through selling final goods Normal margins from sale Increase farmer income Increase tree replanting Increase production capacity Reduce cost through only transporting almonds More trees and increased income; Feel good purchase Benefits

  3. Jamela addresses the systemic causes of rural poverty… 2 allowing farmers to take advantage of their natural wealth… or or or 1 Income from Argan oil Traditionally $673-864 Moroccan poverty line $1,870 with Jamela $2,639 3 and create an African luxury brand... …the first in our line.

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