Why Sharing Economic Growth with the Community Is Good Business

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A new inclusive ecosystem is lifting a million farmers out of poverty. It's also expanding the market reach of a large global enterprise.

The world’s 550 million smallholder farmers are amongst its poorest inhabitants, eking out a subsistence on farms smaller than 10 hectares. With minimal financial resources, they face unending challenges from weather, disease, pests, weeds, uncertain prices, and highly seasonal growing conditions.

Problems arise during the dry season when grass growth is insufficient to feed the herd. The ranchers keep their animals alive by feeding them stubble from other crops, supplemented with minimal amounts of expensive grass bales. The animals lose up to 90 kg during the dry months, and produce 50% less milk. They are also more likely to fall sick and less likely to breed.

A third challenge was the under-capitalization of the ranchers, who would need machines to help plant the corn, and to harvest and silage it. DKsilos worked with local banks to develop a leasing model that gave ranchers access to machinery without front-end investment. Some ranchers also used the availability of financing to purchase the equipment and, when not being used, rent it to neighbors. These options expanded the market for local equipment distributors.

 

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Must remember to give back to the communities that give so much to us. Reinvest in your customers.

Investing back into the community that supports you is every business' responsibility. Working to directly benefit your town or city is always good practice, but your company will benefit internally as well. Check out this article for details on why!

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