1. nigel@thebettertradingcompany.com Doing Better Business in Africa Tabasco® & Other Market Driven Empowerment Models & Success Stories MARCH 5, 2013 Presented by Nigel Dorward www.thebettertradingcompany.com

2. nigel@thebettertradingcompany.com Better Partners Born out of a shared vision with the Shell Foundation To create an ethical agent Bridge the gap between markets and developing world producers Continued strategic partnership provides: –Resources –Business know-how –Extensive worldwide network

3. nigel@thebettertradingcompany.com Better Team African Agriculturalists –Committed to Africa –Skill set suited to Africa –Ability to understand BOTH ends of the supplier/customer dynamic. Based in Harare, Cape Town, UK

4. nigel@thebettertradingcompany.com What we do Own supply chain business –Trading Horticultural crops – primary production through to category managers at supermarket level Consultancy business –Large Companies with CSR goals, Due Diligence for Financial Services and NGO’s –Market evaluation –Production evaluation

5. nigel@thebettertradingcompany.com What we do Primary Production Primary Processing Training Finance – Soft, Patient, Commercial and PE Secondary Processing Logistics Marketing Sales Operations Management Triple Bottom Line

6. nigel@thebettertradingcompany.com Crop and livestock production Horticulture –floriculture –vegetables –spices Citrus Sub-tropical and deciduous fruit Supply chain and logistics management specific to the growth, harvesting and production of these products. Project management Project and investment due diligence Better Agriculture

7. nigel@thebettertradingcompany.com 150 hectares large scale outgrower veg producers 600 tons fresh veg air-freighted into UK and EU supermarkets –Albert Heijn, Carrefour, Aldi, Rewe, ICA, ASDA Packed in our own packhouse The Better Trading Company

8. nigel@thebettertradingcompany.com Case Study

9. nigel@thebettertradingcompany.com Tabasco® Chilli Awarded the Technoserve “ Agri-Innovation Business Model Award” August 2011 2010 growing season pilot project 2011 growing season increased to 230 farmers Both rain and irrigation assisted plantings Approximately 75 % women growers 2013 300 farmers producing 350 tons

10. nigel@thebettertradingcompany.com Why phased? –Reduce risk Markets need –REPLENISHMENT –FORECASTING –QUALITY ASSURANCE –PRICE EFFICIENCIES Suppliers/Growers need –SUPPLY PROGRAMME –LEAN SUPPLY CHAIN –PRICE EFFICIENCIES –TO BUILD TRUST –Build resilient supply chains –Grow retailer/supplier relationship 3 year plan

11. nigel@thebettertradingcompany.com Pre – Planning –What does the market need? –What can we offer the market? Products Technical Assistance Logistics –Build Concept models Production timing and volumes Logistics needs –Inputs –Transport Personnel plans Finance plans Environmental plans Community Upliftment plans –Schools, Clinics, Community Centres, Life Skills Training –Key Contacts Supply Side Market Side 3 year plan

12. nigel@thebettertradingcompany.com Phase 1 Set up GROWER GROUPS Operations Begin Skills transfer Plant initial crops timeously Low Care packing Building and Testing Market Linkages Planning for Phase 2 Early stage Community Programme Deploy Environmental plans ESTABLISH FEED-BACK LOOPS Phased Approach

13. nigel@thebettertradingcompany.com Phase 2 Increase production relative to supplier programmes agreed by market Low and Medium Care packing options Add relevant new product lines Roll-out of Phase 1 in new Geographies Testing new and alternative products for relevant production conditions Early stage work on value add to existing products –Dehydration –Canning –Preserving/Pickling Wider roll out of Community plans Planning for Phase 3 IMPLEMENT LEARNINGS FROM FEED-BACK LOOPS Phased Approach

14. nigel@thebettertradingcompany.com Phase 3 Scale Up production relative to supplier programs agreed by market and based on previous years performance Scope High-Care packing options where relevant Phase 1 roll out in new geographical locations Add relevant new product lines Testing new and alternative products for relevant production conditions Continued work on ‘value add’ to existing products –Dehydration –Canning –Preserving/Pickling Wider roll out of Community plans CONTINUED DEVELOPMENT OF FEED-BACK LOOPS Phased Approach

15. nigel@thebettertradingcompany.com Learning's and Challenges Learnings  Holistic model essential for success  Trust and support of community  Cropping finance (revolving grant)  Regular cash payments  Training and agronomy support Challenges  Side marketing  Identification of suitable growers  Securing revolving grower input fund  Ensuring stable base prices

16. nigel@thebettertradingcompany.com New Projects Always on the look out for new projects Listening to what our retailer partners want Working with our on-the-ground network Assessing how to connect more exceptional African entrepreneurs with markets

17. nigel@thebettertradingcompany.com CONTACTS The Better Trading Company –Nigel Dorward nigel@thebettertradingcompany.com Mobile +27 72 392 0721 Better Agriculture –Mike Bailey mike.bailey@thebettertradingcompany.com Mobile +263 912 601 146 –Pete Caminada pete.caminada@thebettertradingcompany.com Mobile +263 11 601 271