Provide sustainability platform for smallholder farmers

This case study is part of decarbonization best practices shared with AB InBev Eclipse sustainability program’s community. Discover more about the Eclipse program here.

In the fast-paced, digitally driven world, new opportunities constantly beckon. However, this presents a significant challenge for economies and communities reliant on small-scale agriculture.

The future of farming is facing several threats:

• Succession crisis: Younger generations are increasingly reluctant to take over family farms

• Access barriers: Aspiring farmers face hurdles in securing land and investments

• Knowledge gap: The loss of traditional farming knowledge threatens sustainability

With over one-third of the world's population engaged in agriculture, and farmers providing essential raw materials for countless industries, this challenge cannot be ignored.

Symrise is committed to bridging this gap and securing a sustainable future for farmers and the communities they serve.

Specifically, the northern Indian state of Uttar Pradesh, often called the "Heartland of India," is home to both the iconic Taj Mahal and a population of 240 million people. A significant 66% of this population relies on agriculture for their livelihood. Within this state, an estimated 750,000 to 1,000,000 farmers cultivate mint.

While mint serves as a summer cash crop, rotated with rice, potatoes, and wheat, a remarkable 75% of India's total mint production originates from these smallholder farmers.

Given this significant contribution, it's unsurprising that numerous projects are already underway to enhance the quality, productivity, and income of these farmers. However, while some pilot projects have yielded positive results for select farmers, the valuable insights gained have yet to be widely disseminated.

The challenges faced by these farmers are multifaceted. Declining groundwater levels and erratic weather patterns necessitate climate-smart farming practices. Additionally, the limited availability of modern processing technologies hinders efficiency. Labor shortages, particularly among women and young adults, exacerbated by conservative social attitudes and a lack of mechanization, further complicate the situation.

To improve the long-term income and livelihoods of these mint farmers, it's imperative to provide them with access to essential support, including climate-smart farming techniques, advanced processing technologies, and opportunities for socioeconomic development.

Bridging the Gap (BTG) is a comprehensive platform designed to support a portfolio of groundbreaking sustainable development projects initiated by Symrise and its partners worldwide.

BTG aims to foster sustainable supply chains and promote a future where smallholder farming is both resilient and economically attractive for generations to come. By implementing community-based interventions and encouraging regenerative agricultural practices, the program contributes to environmental, social, and economic sustainability.

The shared goal of all partners is to secure a sustainable future for farmers, their communities, the business, consumers, and the planet.

Since 2020, Symrise has partnered with private organizations and non-profits to expand upon the initial Shubh Mint program, which was launched in 2017. Both partners source mint oil from smallholder farmers in Uttar Pradesh, a region plagued by low productivity and inconsistent quality due to a lack of knowledge and sustainable farming practices.

To address these challenges, these partners have joined forces to form the Bridging the Gap project collective. Building on the success of Shubh Mint, the collective has trained and supported over 27,000 smallholder farmers in Good Agricultural Practices (GAP), reducing production costs, improving access to quality planting material, and doubling farmers' income from mint oil.

The Bridging the Gap project aims to further empower these farmers by providing access to:

• Climate-smart farming techniques

• Water-efficient irrigation technologies

• Strengthened farmer producer companies and self-help groups

By doing so, the project seeks to improve mint yields, quality, and transparency in the supply chain, while reducing the number of intermediaries.

Ultimately, the goal is to bridge the generational gap in farming and ensure a sustainable future for Uttar Pradesh's mint farmers.

Symrise is committed to explore new opportunities to engage with customers and local communities in the sustainable sourcing of strategic crops, also engaging with non-profit and private partners whenever possible.

Symrise believes in solutions that sustain the entire value chain, securing a better future for farmers as well as a long-term supply for high-quality and sustainable products for us and for business partners.

Sustainability impact

Climate

Scope 1-3 2.5 tons of CO2e were saved through this initiative.

Climate smart agriculture technologies piloted in the first phase (in 2020) will be scaled up for the next phase starting in 2024. Lessons learnt from the first project show the importance of a whole farm approach for farmers' income and farm sustainability, which will be intensified in the next phase. The new project will reach out to 10,000 farmers and will combine interventions that strengthen resilience “on farm” with activities “off farm” that improve livelihoods and create financial resilience.

Nature

26% reduction in water consumption was achieved through this initiative.

BTG promotes biodiversity by encouraging diverse crop cultivation, preserving genetic diversity, and enhancing ecosystem resilience. Regenerative agriculture techniques improve soil health, reduce erosion, and enhance water retention. Efficient irrigation methods conserve water resources. By reducing harmful chemical use and promoting carbon sequestration, the project contributes to climate change mitigation and biodiversity protection.

Social

Specific focus is given to strengthening the economic empowerment of women in the farming communities. Farmer Producer Centres are used to improve transparency and build capabilities within the community so that the project becomes self-sustaining. Digitalization and new technologies piloted in collaboration with CIMAP (Central Institute of Medicinal and Aromatic Plants).

Business impact

Benefits

• Increased mint yield and reduced costs: Up to a 32% increase in mint yield versus control group and a 20% decrease in production costs, leading to a significant boost in farmers’ net income.

• Empowering women: 430 Self-Help Groups established to empower women.

• Strengthening farmer organizations: 5 Farmer Producer Companies established to provide ongoing support to their members.

• Financial access and capacity building: Linkage with financial institutions to secure lower interest rates and capacity development of Farmer Producer Companies in administration, management, and business development.

• Sustainable irrigation solutions: Solar-powered irrigation and drip irrigation systems to reduce cultivation costs by up to 20-23% and water consumption by up to 40%, while increasing yields kg/ha by 32% versus control group.

Further results included:

• Improved farmer's income of 42%

• 26% reduction in water consumption

• 27686 consumers reached whose access was improved

• 13836 people qualified in training courses

• 7 technologies transferred

Costs

Specific figures cannot be disclosed. Costs will vary based on local context and project activities.

Impact beyond sustainability and business

Co-benefits

Environmental Benefits:

• Biodiversity conservation: sustainable farming practices can help preserve local biodiversity by reducing the use of harmful pesticides and promoting agroforestry

• Soil health improvement: regenerative agriculture techniques, such as crop rotation and cover cropping, can improve soil health, reduce erosion, and enhance water retention

• Climate change mitigation: reduced water usage and carbon sequestration through sustainable practices can contribute to mitigating climate change

Social Benefits:

• Rural development: the project can stimulate rural economies by creating jobs and increasing incomes

• Gender equality: empowering women through self-help groups can lead to greater gender equality and social empowerment

• Community development: improved infrastructure, healthcare, and education facilities can enhance the overall quality of life in rural communities

Economic Benefits:

• Supply chain resilience: a more sustainable and resilient supply chain can reduce risks associated with climate change and market volatility

• Product differentiation: high-quality, sustainably produced mint can command premium prices in the market

• Brand reputation: positive associations with sustainability and social responsibility can enhance the brand reputation of companies involved in the project

Potential side-effects

• Overreliance on external support: excessive reliance on external support, such as training and financial assistance, could lead to dependency and hinder long-term sustainability

• Market fluctuations: fluctuations in global mint prices or changes in consumer preferences could negatively impact farmers' incomes

• Environmental risks: improper implementation of agricultural practices could harm the environment

• Social tensions: rapid changes in agricultural practices or community dynamics could lead to social tensions or conflicts

• Inequitable distribution of benefits: the benefits of the project may not be evenly distributed among all farmers, leading to disparities and social unrest

To mitigate these potential risks, it is crucial to build local capacity, diversify income sources, foster community engagement, and implement rigorous monitoring and evaluation systems.

Typical business profile

Partners who share mission and values, have a common business interest, and are committed to shared objectives. They should be involved in the project's community and willing to invest time or financial resources.

Approach

To effectively implement a project like this, careful planning and consideration are essential. Key factors include business priority checking, selecting the right crop, identifying suitable locations, and forging strong partnerships.

1. Needs assessment: conduct a thorough assessment to identify the specific needs and challenges of the target farmers

2. Partnerships: forge strong partnerships with local and international organizations, government agencies, and private sector entities

3. Capacity building: provide training and technical assistance to farmers on sustainable agriculture practices, financial management, and market linkages

4. Infrastructure development: invest in infrastructure, such as irrigation systems and storage facilities, to improve agricultural productivity

5. Financial support: offer financial incentives, subsidies, and credit facilities to encourage adoption of sustainable practices

6. Market access: facilitate access to markets for farmers' products through value-addition and marketing strategies

7. Monitoring and evaluation: implement a robust monitoring and evaluation system to track progress and identify areas for improvement

8. Community engagement: involve the community in decision-making processes and ensure their participation in project activities

Stakeholders involved

Internal Stakeholders

• Sustainability team

• Legal and Compliance team

• Finance team

• R&D department

• Supply Chain team

• Marketing and Communications team

Other stakeholders involved, can be internal or external:

• Project management team

• Agricultural experts

• Community development specialists

External Stakeholders involved

• Private partners: co-leading and co-financing the project. Will likely require involving similar departments as the ones mentioned in the internal section

• Non-Governmental Organizations (NGOs): providing expertise, resources, and support

• Financial institutions or governments (local or foreign to the site of investment): Financing the project and providing loans to farmers

• Smallholder farmers: primary beneficiaries of the project

• Local communities: affected by the project's implementation

• Government agencies: local, regional, and national government bodies and Regulatory agencies

• Research institutions: conducting research and developing innovative solutions

• Civil society organizations: can advocate for the project and mobilize community support

• Consumers: benefit from sustainable and ethically sourced products

Key parameters to consider

• Clear objectives: define specific, measurable goals

• Target beneficiaries: identify the specific farmers and communities to impact

• Geographical scope: determine the project's geographical area

• Sustainability assessment: evaluate environmental, social, and economic impacts.

• Stakeholder engagement: involve internal and external stakeholders

• Financial planning: allocate budget and identify funding sources

• Implementation and monitoring: develop a detailed plan, provide training, and track progress

Key success factors:

• Financial resources: sufficient funding to cover project costs, including training, infrastructure development, and operational expenses

• Technical resources: access to agricultural technologies, equipment, and digital tools

• Partnerships: strong collaborations with government agencies, NGOs, and private sector organizations

• Land and water resources: adequate land and water resources for sustainable agricultural practices

• Market access: access to markets for agricultural products, including both domestic and international markets

• Knowledge and expertise: access to knowledge and expertise in sustainable agriculture, supply chain management, and social impact

Implementation and operations tips

• Strong partnerships: build strong relationships with local and international organizations

• Community engagement: involve local communities in decision-making processes

• Capacity building: provide comprehensive training and technical assistance

• Data-driven approach: utilize data to monitor progress and make informed decisions

• Flexibility: adapt to changing circumstances and market fluctuations

• Continuous improvement: regularly evaluate and improve the project

• Long-term sustainability: develop a plan for long-term sustainability

• Ethical sourcing: adhere to ethical sourcing principles and fair-trade practices

• Transparency and accountability: maintain transparency and accountability

• Risk management: identify and mitigate potential risks