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  • 2012

    This example of autonomous development, i.e. without the aid of an NGO, shows that ‘inclusive business’ makes sense to many medium-sized companies and is profitable to them. Floralp, an Ecuadorian gourmet dairy company focused mainly on aged cheeses with over US$ 12 million in revenue (2010), started including small-scale producers in their value chain in 2003, unaware that in later years this initiative would be referred to as an Inclusive Business model. Whereas traditionally the company worked with medium-size farmers, it decided to invest in working with small-scale milk producers and their associations, offering them training, financing and technical assistance. Floralp itself has benefited from its diversified supply chain and increased loyalty from suppliers, whereas the 500 dairy farmers have benefited from an increase in average yields from six to eleven litres per cow; a price increase of their milk of almost 80%, leading to monthly incomes improving from US$120 to US$258. Once Floralp realised this business model worked, they have continuously looked for new ways of making their business more inclusive. In response to opportunities such as illustrated by the Floralp example, the Ecuadorian Government initiated a national Programme for Rural Inclusive Business (PRONERI) with technical assistance from SNV.

    See also: Inclusive Business at SNV

    Document language: 
    English
    Year: 
    2012
    Region: 
    Asia, World
    Country: 
    Ecuador
    Sector: 
    Agriculture
    Service: 
    Inclusive Business
    Topic: 
    Inclusive Business
    Author: 
    Solange Hai
    Publisher: 
    SNV
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