LIAN PEANUT BUTTER BUSINESS LINKAGE WITH SMALLHOLDER FARMERS IN GROUNDNUTS VALUE CHAIN AND MARKET PROVISION THROUGH FACTORY UPGRADE
By upgrading our factory to meet the required peanut processing standards, we plan to create over 100 jobs for the youth in the value chain.
I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.
Blue Cloud Limited
Growth (the pilot has already launched and is starting to expand)
Annual budget in 2017 (USD)
Number of beneficiaries impacted so far
Secondary Focus Area
Headquarters location: Country
Headquarters location: City
Location(s) of impact
Malawi: Blantyre, Lilongwe
Problem: What problem is this initiative trying to address?
Smallholder farmers contribute over 85% of the groundnuts produced in Malawi. Less than 30% of the total harvested undergoes industrial processing. Due to limited processing capacity and and poor storage facilities amongst smallholder farmers, post harvest losses are high. Access to markets that offer good prices for the harvest is another problem the farmers face. Middlemen take advantage as a result, offering low price for the produce.
Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?
Liniking with smallholder farmers provides them with a ready direct market for their produce, with better prices offered and already agreed, earning the farmers better income, hence improve their social economic lives. As a business, we are assured of having enough raw groundnuts to run our peanut butter production season according to the required capacity. By adding value to the groundnuts, we increase the shelf life of the end product and help reduce the post harvest losses the farmers might face. Our focus in the linkages is with youth and women farmers. This has attracted a good number of youth to the farming business, thereby creating jobs in that form. The linkages have also enabled us to promote Good Agricultural Practices (GAP) with the farmers we work with, thereby ensuring quality of the the groundnuts produced, eliminating preventing and reducing toxins and conserving the land
Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work
To date, the business has created 9 jobs for the youth and women, improving their standard of life, making a contribution to SDG number 10, reduced inequality and SDG number 8, decent work and economic growth.
Currently, we are working with 6 farmers who supply us with raw groundnuts. These Farmers are able to support their families through the income realised in the farming business. These farmers practice the Good Agricultural Practices we have shared with them, and so help conserve land, preserve the environment, and promote High yields
We have also created links with youth SMEs, 5 in total, who buy our product at wholesale and sale at retail price, at a profit, thereby improve their standard of living.
Through the product, we have helped improve the health and nutrition of our customers. Lian peanut butter has potassium and proteins, and contains fiber, magnesium and health fat.
Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?
The capital source for the business was through personal savings. At the moment, the financial sustainability is complimented from sales of the the product.
Moving forward, we have plans to incorporate Lian Peanut Butter as a private company with limited liability, with the registered capital divided into shares.
30% of annual budget is from individual capital. 70% is from sales.
Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?
Smooth, well blanched and roasted peanuts with Aflatoxin tested and kept to the acceptable level.
Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.
A passion for nutrition, and the desire for food processing brought into existence Lian Smooth Peanut Butter. Malawi is blessed with vast agro endowment but little undergoes processing. Though the raw produce is there, most of the end products are imported. Quality is compromised. Most of the peanut butter found in that time was hard that it torn the bread when spread on it, and others added soy to the product. Our desire for smooth peanut butter, easy to use and spread, processed from groundnuts with no soy added led us to develop the product branded Lian Smooth Peanut Butter. In addition, the desire to transform the nation's health by providing nutritious foods, taking maximum advantage of the country's agro endowments inspired us as well
Where did you hear about the Nestlé Creating Shared Value Prize?