LHG has been developing and piloting since 2008 an organic pepper production chain in São Tomé and Príncipe, a small paradise island off the coast of West Africa. We had previously published an article about the origins of this project, which you can (re)discover here.
How can you establish and sustain a farm located nearly 5,000 km from the mainland? Why is the format of the cooperative ? How can we train local farmers in the strict methods of the’organic farming ? What are the prospects for the business's growth? Gilles Talrich, President of the General Herbal Medicine Laboratory and the project's initiator, shares his valuable insights in this article.
The Cooperative: An Obvious Choice
The agricultural cooperative model has the advantage of allowing farmworkers to be both owners of their land and their own bosses. Thus, in order to bring farmers together To introduce them to pepper cultivation—which had been virtually nonexistent in the archipelago until then—the first step was to create an attractive environment for the local workforce by providing them with access to export markets and a processing center.
« Pepper must be processed to produce a high-quality, marketable product. This requires pooling resources, and the cooperative model is the one recommended for this type of initiative. We have farmers who are responsible for their land and their crops and who work together to export pepper. »
Choosing a cooperative is also a choice of consistency: the production volume of a pepper industry in a country the size of São Tomé and Príncipe is a drop in the bucket on a global scale. It is therefore imperative to offer a product of the highest quality that is valued at a price that is not correlated with international market prices, to make this business viable. « With the cooperative, we operate in a market where farmers and customers deal directly with each other. In contrast, in today’s pepper market, there are sometimes as many as 12 middlemen between the two parties. This economic balance allows us to offer workers a competitive wage, which motivates them to do a good job. »
To manage the operation and ensure its smooth functioning, LHG’s role encompasses many aspects: defining specifications and production volumes, setting up the necessary processing equipment, ensuring compliance with hygiene regulations, and overseeing pruning periods. This involvement continues even after the pepper has been harvested and processed, with the management of storage and the handling of export and import documents. As for the farmer training, we had to call in specialists: « We got help from the NGO, such as Agri Sud whose technical teams came to several EU-funded projects to train them in agroecology and cooperative management. »
Organic or nothing
Get involved in an organic approach It seems obvious. On the one hand, because the archipelago has very fertile volcanic soil and a tropical climate with abundant rainfall and sunshine—an ideal environment for this type of agriculture. On the other hand, because the small country simply lacks the financial capacity to purchase fertilizers or pesticides on a national scale. Finally, choosing organic farming also means being able to «pay farmers a premium» while remaining consistent: adhering to high ethical standards results in a flawless product So it's more expensive, but sold at a fair price. Producing and selling conventional pepper without organic certification makes no sense given such a low production volume.
To produce an exceptional pepper, the process involved select local varieties, select the most productive ones and with the best flavor.
« What gives our pepper its distinctive flavor is the volcanic soil, the fact that it grows in a pristine natural setting—uncontaminated and free from cross-pollination—and, above all, the a completely natural transformation process. »
A demanding undertaking that requires a long-term commitment: founded in 2008, it wasn’t until 2020 that the cooperative achieved a satisfactory level of industrial production.
An industry that benefits farmers—but not only them: the two processing centers located on the two main islands employ about 15 people, peaking in August when the number of workers reached around thirty. « It's important to know that everyone in the cooperative has an employment contract. We've really created something that meets the country's social needs. It's a sustainable agriculture. To farm organically, the farmer has to be happy to do it. Otherwise, it won't work. »
Small-scale production, great benefits
The decision to go organic and join a cooperative has created the conditions for positive synergies: « Organic farming is common sense because it involves compost and the use of legumes to fertilize the soil between the rows of peppers. Once explained, farmers embrace it without hesitation. The example is powerful when some see that they’re starting to make money, that they can buy a new car, install windows in their homes, and so on. They realize that organic pepper is profitable, so new members are joining the cooperative. »A valuable role that goes beyond mere business logic. The cooperative also manages advances and microloans, and organizes all a social worker centered on the cooperative members.
The business currently comprises approximately 350 farmers, with lots ranging in size from 500 m² to 1 hectare. The Company Hénaff contributes to the project by helping to pre-finance harvest campaigns, that is, by enabling each farmer to benefit from’a steady income. The pepper harvest season begins in April, and exports take place in November. Outside of this period, farmers are less active, but the cooperative system allows them to’be paid most often during the year. That is the principle of the agricultural pre-financing.
While the cooperative has now found its business model, this has not come at the expense of the farmers« way of life. “ Traditionally, he uses his land to feed himself. But if he plants oil palms, he can’t grow anything else. Pepper plantations, however, coexist very well with market gardening and vegetables. It was important to explain to him that we would be able to use his land to grow a crop that would bring him money, but that at the same time it wasn’t invasive—it wasn’t a monoculture. He could still grow other things to feed himself. We’re in sustainable agriculture. »
Building on the cooperative’s success, LHG is continuing its commitment in 2022 with the goal of expanding in the short term Red Pepper Production with a more distinctive, fruitier flavor, but much more complicated to produce. Another challenge: managing to harvest wild pepper (Piper borbonense). Some species grow in the forest and have an exceptional flavor. « It's a bit more complicated to produce, but we're working on getting it set up. I haven't given up hope of being able to produce it either. from the organic turmeric and ginger, because, once again, these are exceptional products. And since the growing season for these crops is different from that of pepper, farmers can earn additional income throughout the year. »
Continue to help local farmers, ensuring their long-term viability by diversifying crops—that is the goal LHG has set for itself for the coming years.
An approach that makes sense and embodies values: « The quality of a product can only be achieved through a fair trade for all stakeholders : producers, processors, distributors, and consumers. »
