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Integrated Tamale Fruit Company: Organic Mangoes Improving Livelihoods for the Poor

A021_itfc
Authors Robert Darko Osei
Lead Organization ITFC
Type of Organization MSME
Country Ghana (Sub Saharan Africa)
Business Sector Agriculture Food & Beverage
Role of the Poor Producer
Theme Environmental Impact Organic Civil Society-Business Collaboration
MDG 1: End Poverty and Hunger 7: Environmental Sustainability 8: Global Partnership
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Abstract The Integrated Tamale Fruit Company—operating in the Savelugu-Nanton District in Ghana’s Northern Region, an area of widespread poverty—cultivates certified organic mangos for local and export markets. To boost its power in the export market with higher production volumes, the company established a scalable business model that includes local farmers. Instead of acquiring a very large piece of land—physically and financially impractical—the company produces high volumes through an outgrower scheme, which started in 2001 and today includes 1,300 outgrower farmers. Each has a farm of about an acre, with 100 mango trees that supplement the nucleus farm of 160 acres. The company provides an interest-free loan to the outgrowers through farm inputs and technical services, and farmers start paying for the loan from selling mangos only after the trees yield fruit. This arrangement allows the company to reliably source a large volume of quality organic mangoes, and the farmers can enter mango production with long-term income prospects. The nucleus farm’s profits are on track to reach $1 million a year by 2010. The case examines the key challenges of the outgrower scheme and its implications for the company’s business.
Citation Osei, Robert D. "Integrated Tamale Fruit Company: Organic Mangoes Improving Livelihoods for the Poor." GIM Case Study No. A021. New York: United Nations Development Programme, 2008
Reference A021
Source GIM 2008
Type Case Study
Language English
Constraints Access to Financial Services Knowledge and Skills
Strategies Invest in Removing Market Constraints Leverage the Strengths of the Poor
Matrix_itfc