The following paragraphs are from this month’s Harvard Business Review. As we consider BAM, we might learn from this pattern of business.
How might something similar might be done on a smaller scale?
Consider the Integrated Tamale Fruit Company (ITFC), a nucleus-and-outgrower organization in Ghana’s poor northern region that exports organic mangoes directly to the European market. ITFC has its own 400-acre, professionally run commercial farm, but it also works with more than 1,200 smallholder farmers in the surrounding area (the “outgrowers”). In exchange for an interest-free, in-kind loan and extensive training, the smallholders agree to grow mangoes on an acre or two of their land using organic techniques and to sell them through ITFC’s marketing channels. The proceeds are used to repay the loans. By nurturing this cluster of farmers, the company can operate at greater scale without the tedious and uncertain process of assembling acreage in an area with communal and chieftaincy-organized land use.ITFC’s efforts, which have led to transformational income growth for local farmers, have attracted the attention of development agencies such as the African Development Bank and the U.S. government’s Millennium Challenge Corporation, as well as the Ghanaian government. These organizations have stepped in to bolster and expand the cluster scheme and to finance improvements in rural roads.source: https://hbr.org/2016/12/mapping-frontier-economies?referral=00202&cm_mmc=email-_-newsletter-_-weekly_hotlist-_-hotlist_date&utm_source=newsletter_weekly_hotlist&utm_medium=email&utm_campaign=hotlist_date&spMailingID=15997688&spUserID=Mjg3NjIwMDQwMDA1S0&spJobID=904641162&spReportId=OTA0NjQxMTYyS0