Danone-Ecosystems-Developing-Innovative-Business Approaches-to-Work-with-Small-Dairy-Farmers-in-a-Sustainable-Way

 
Danone Ecosystems – Developing Innovative Business Approaches to Work with Small Dairy Farmers in a Sustainable Way​


Jean-Christophe Laugee, Danone Ecosystem

Jean-Christophe Laugee, Danone Ecosystem

Jean-Christophe Laugée, Director at Danone Ecosystems told us about Danone’s approach to working with small dairy farmers in a sustainable way, meanwhile expanding Danone’s business into new markets. On focus was Indonesia, and Indonesian farmers were the approach target group. In general, Danone Ecosystems see a direct link between 1. achieving socio-economic impact, by targeting communities normally excluded from mainstream market approaches, and 2. maximizing consumption opportunities. In other words, generating social good makes good business sense as it increases market share for Danone and related profits generated from the sales of Danone products.

Following this philosophy, in Indonesia Danone Ecosystems targeted Indonesian farmers by offering them to buy cows using microcredit. The programme was achieved in partnership with KPSBU, the main dairy cooperative of Java. The farmers who accepted Danone’s offer were organised into self-help groups to share knowledge and technical skills, and learn together about feeding habits and medical services for cows. Because the programme contributes to sustaining milk supply in an area that is critical for the expansion of Danone’s business, it makes good business sense to Danone because. Meanwhile, Indonesian farmers have access to micro-loans and are more likely to stay in their communities and develop their herds. This is a clear contribution to local community development. In this way, business IS part of the solution to developing community livelihoods and agriculture market systems.

More about the initiative is here:
http://ecosysteme.danone.com/project/milk-farming-indo/

Listen to Jean-Christophe explaining what he means by ”co-creation” in social business and social entrepreneurship, and why forming strategic partnerships and alliances across sectors is particularly important to enabling the systemic changes we need today in our societies:

 

 

You can download Jean-Christophe’s presentation here.

This promotional video from Danone gives you an idea how the approach looks in practice:

And do not forget to share your thoughts and comments on our blog! :)

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