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Project:

New Business Models for

Sustainable Trading

RelationshipsSeries:Case Study Series

Authors:

Abbi Buxton and Bill Vorley

Paper:

The Ethical Agent:

fresh fiowers in Kenya

This paper is part of a publication series

generated by the New Business Models for

Sustainable Trading Relationships project.

The partners in the four-year project - the

Sustainable Food Laboratory, Rainforest

Alliance, the International Institute for

Environment and Development, the

International Center for Tropical Agriculture,

and Catholic Relief Services - are working together to develop, pilot, and learn from new business models of trading relationships between small-scale producers and formal markets. By working in partnership with business and looking across a diversity of crop types and market requirements - fresh horticulture, processed vegetables, pulses, certied coffee and cocoa - the collaboration aims to synthesize learning about how to increase access, benets, and stability for small-scale producers while generating consistent and reliable supplies for buyers.

The trading relationships tool and survey

discussed in this paper was developed in collaboration with Kent Business School,

Oxfam and Unilever. The full citation for that

work can be found in the References section.

For further information see:

www.sustainablefoodlab.org/projects/ ag-and-development and http://www.linkingworlds.org/

Please contact Abbi Buxton at

abbi.buxton@iied.org if you have any questions or comments.

ISBN 978-1-84369-864-7

Available to download at www.iied.org/pubs

© International Institute for Environment and

Development/Sustainable Food Lab 2012

All rights reserved

Abbi Buxton is a researcher for the

International Institute for Environment and

Development. abbi.buxton@iied.org

Bill Vorley is a principal researcher for the

International Institute for Environment and

Development. bill.vorley@iied.org

1

Chapter title 1

The Ethical Agent:

fresh fiowers in Kenya

Table of contents

Acronyms and abbreviations

_______________2

Executive summary ________________________3

1.

Introduction

____________________________4 2.

Growing fiowers in Kenya ________________6

3.

The fiower team ________________________10

4.

Project implementation and the role of

the ethical agents _______________________12 5.

Developing a unique product ____________14

Adapting the business model/product

proposition ���������������������������17

Adapting product certification �������������17

New product development/innovation ������186. Building capacity to supply the retail

market _________________________________20

Managing 'transparency' in

communications ���������������������20

Building trust and relationships between

buyer and supplier �������������������20

Providing access to market information

����21 Developing systems and logistics ����������21

Building skills

7.

Monitoring development impact _________22

Trading relationships survey: baseline

results and analysis ������������������23

Concluding remarks ����������������������29

8.

Conclusions

____________________________30

Annex ____________________________________33

New Business Models publications

_________34

2 The Ethical Agent: fresh flowers in Kenya

2 CSR

Corporate social responsibility

IIED International Institute for

Environment and Development

NGO Nongovernmental organization

RA Rainforest Alliance

SAN Sustainable Agriculture Network

SME

Small and medium sized enterprises

Acronyms and abbreviations

3

Executive summary

The Kenyan Fresh Flowers project was a pilot

study investigating whether small or medium sized enterprises (SMEs) working with small- scale farmers could sell direct to modern retailers such as UK or US supermarkets.

Working with an existing Kenyan SME, Wilmar,

which already had a track record in supplying flowers for the wholesale export market, IIED used an 'ethical agent' model to support the development of a value chain capable of opening this higher risk, higher reward market to small growers and suppliers.

An ethical agent is ideally a person, or team of

people, with both development and commercial experience. They work both upstream andquotesdbs_dbs3.pdfusesText_6