Time to grow!

Yesterday, I proudly witnessed the signing of a Memorandum of Understanding (MoU) between the Department of Social Welfare and Development (DSWD) and one of my project partners, Bote Central Coffee company.

The objective of this partnership is to harness Bote Central's expertise in urban coffee retailing to provide sustainable self-employment assistance to the beneficiaries of DSWD's "conditional cash transfer" program. The program provides the poorest of the poor with financial assistance over a 5-year period. To make the intervention sustainable, DSWD provides additional assistance through its Sustainable Livelihood Program.

In 2007, Bote Central approached me with a crazy idea: enable farmers in the coffee growing areas to roast their green coffee beans through a community-based coffee roasting facility! Bote Central's idea of enabling coffee farmers to add value to their green coffee beans, thus making them earn more money, was very well in line with the objectives of the Strategic Corporate-Community Partnership Program, or SCOPE. The project was sealed and three communities (Luzon, Visayas, Mindanao) were provided with a roasting facility to trial test the approach of farmer empowerment through:

• increased income from product diversification (selling roasted, ground, or brewed coffee in their community is now an alternative to selling green coffee beans at a low price.)
• quality improvement (farmers able to drink their own coffee will eventually get a taste for good vs. bad quality! Corresponding higher or lower prices for good or bad quality beans is another incentive to raise quality awareness.).
  

At the same time the roasting facility proved itself useful in the urban areas such as supermarkets, the wet-markets, or small cafes in Metro Manila. Freshly roasted and brewed coffee served per cup became an alternative to the instant coffee products in the market - at a competitive or even lower price! The businesses are doing fine, providing a low-cost coffee alternative to cab drivers, office workers, or house-wives for their caffeine kick.

This is innovative model has been picked up by the DSWD as one of the enterprises which can provide self-employment to its CCT beneficiaries. The first pilot has been started in Pasay City last September, with 12 women enrolled in the CCT program. Their testimony before DSWD secretary "Dinky" Soliman was promising: since they sell brewed coffee at their snack stalls, they attract more customers, sell more and increase their income! A good start!

And while local coffee is consumed in Metro Manila, the farmer in the rural areas will feel the impact of increased demand for his coffee beans next time a trader knocks on his farm gate. If the farmer has access to a community-based roasting machine, he can either sell none of his harvest or all of it, depending on the offer... he now has the bargaining power to do so.

Why am I proud of this development? For two reasons.

First, I'm happy to see that an innovative approach to meaningful economic development and income generation, one which SCOPE supported when their was no blue print for it yet, is taking off and gaining recognition on a national level!

Second, I am happy to see institutions like the DSWD acknowledging the necessity and benefits of engaging the private sector in their efforts to provide jobs and income. As Executive Assistant Georgina Ann Hernandez said, it is time to bridge the gap between the private sector and organizations providing social preparation through a "market first" approach. She said, "before we go into product development we'll make sure there is a market".

That is exactly what we do through SCOPE! On an individual company basis, we embed small-scale producer groups into its value chain. On average, we work with 10 to 20 people. I've always wondered how SCOPE can reach more people. I found the answer yesterday: by illustrating our approach on a small scale, proving our case, and handing it over to facilitators who can role it out nationwide.

It's time to grow! Thank you, Bote Central and DSWD!