Grounded

🌱 Harvest Season in Full Swing at the Simalaha IFC Our regenerative vegetable farm in Zambia, the Simalaha IFC, is buzzing with activity as the harvest comes in! Thanks to the dedication of an incredible team of farmers and the outstanding Simalaha IFC management, we're seeing the fruits of their hard work in building soil organic matter. The result? Gorgeous, nutrient-rich vegetables that are thriving despite the region's worst drought in living memory. These crops are sold in local markets, where they’re meeting a critical demand for fresh produce. It’s a reminder of the power of healthy soil—once you enable life to thrive, it keeps giving back. What's even better, is that the farmers are able to make an income that's on average 3,5 times higher than what they were earning before joining this farm. Here's to resilient farming, thriving communities, and the promise of regenerative agriculture! 🌿 #regenerativeagriculture #itcanbedone #simalaha Commonland Daniel Fourie Muunga Mapenzi Habeenzu Derrick Mwiinga Nakamwi Manze Gijs Boers Lori Manthey

How does our model work? 1.       We invest in primary processors We support essential processing companies for high value commodity crops in Sub Saharan Africa (eg spices, coffee, tea, nuts). There is a high potential to increase quality in these companies, obtain certifications, and thus access higher margins. We do that by investing in a strong team, processing equipment and obtaining the right certifications. 2.       We train their suppliers (farmers) on regenerative agriculture methods Through agronomists/sourcing managers in the processing companies (and their teams), we introduce regenerative agricultural practices with the farmers that supply to the processors. A typical processor sources from around 2.000 smallholders. Given that most of the crops we purchase are grown on trees in agroforestry systems on which little to no inputs are being used, there is a high potential to increase yields if farmers start applying simple methods like making compost and growing cover crops. 3.       Monetize value created All in all, we can create so much more value in the chain (based on quality increases and higher production per farmer) that farmers can increase their income with roughly 2-3 times when practicing regenerative agriculture, whilst we can also rapidly grow margins and sales at a processor level. 4. Create a community of impact-driven investors We have established an evergreen investment facility. We target a modest IRR of between 5 and 10% for investors. The fund is registered as a cooperative in the Netherlands. Every dollar invested generates 1 dollar in annual sales in the processing companies, and roughly 0.70 cents annually that go into the hands of a farming household. If you want to know more, please reach out! Gijs Boers #regenerativeagriculture #foodsystemschange #systemschange #impactinvesting

Here is why we think a revolution in smallholder farming is on its way. Because there is a vast potential to increase income if you farm regeneratively. What drives this increase in income? 1) Higher yield. Most smallholders can afford little to no chemical inputs - so massive increases in yield are possible when regenerative practices (compost, cover cropping, mulching, no till) are applied. --> See our post from last week. 2) Higher quality and therefore higher prices. Regenerative farming practices produce crops which have less diseases, are stronger, more tastier and have longer shelf life. Especially in commodity markets, higher quality leads to higher prices - when processing and marketing is done well. Price premiums for organic can sometimes also be obtained (typically around 10%). 3) Lower costs. In some cases, cost reductions can be obtained (depending on the starting situation - this applies particularly when chemicals were used in the starting situation). In the chart below, you see results from: - Zambia (red bars). We compare a smallholder in a conventional system who is growing only chillies, with a smallholder in the Simalaha IFC outgrower system who is growing chillies regeneratively, in a rotation with beans and a cover crop. We also show the income of a farmer at our incubator farm - who receives intensive support and grows a range of different crops including vegetables for the local market. More info: https://lnkd.in/ezy-dfN9 - Tanzania* (green bars). We compare black pepper yields from a typical spice grower in the region, with what a farmer can achieve when practicing regenerative organic farming. - Uganda* (yellow bars). Conventional coffee income compared to regenerative organic coffee when done well. *Note that in reality these crops are grown in diverse agroforestry systems, and therefore the yield per acre is an extrapolation to be able to compare like-for-like systems. Commonland DOEN Participaties B.V. #regenerativeagriculture #income #smallholders

We've got some data on regenerative agriculture for smallholders! Let's start with yield - because the most commonly heard objective against regenerative agriculture is that it would decrease yields for farmers. This is not always true, it depends on the type of farming system, and especially the starting position of the farmer. Many smallholders have low-input low-output systems, and thus yield increases are quickly attainable when regenerative inputs are applied in the right way. In this chart, you can see the yield development of the Simalaha IFC Regenerative Farm run by smallholders, as a percentage of what farmers in the region typically produce in an industrial farming set-up. We've also added bars to show what smallholder farmers in an unsupported (and usually non-irrigated) set-up in that region typically achieve (around 25% of industrial farming yields). Some things worth noting: 🔹 Farm Setup & Support Unlike typical smallholder setups, Simalaha IFC farmers benefit from irrigation and ongoing support from our fantastic IFC management team. Farmers receive training in both regenerative farming techniques and business skills, empowering them to manage their land sustainably and effectively. 🔹 Improving Soil Health To address the poor, sandy soils in the area, each new farm block starts with at least one rotation of soil improvement practices only (no productive crops) like planting cover crops and applying biochar, manure, and compost. By focusing on soil health, we’re setting up a strong foundation for future yields. 🔹 Yield Results: Year-on-Year Progress Season 1 ('22/'23): After initial soil restoration, crop yields were variable as the land adapted to regenerative methods. Season 2 ('23/'24): We’re seeing significant improvement! Simalaha IFC yields now exceed typical unsupported smallholder yields in the region and, for some crops like onions, even outperform yields from industrial farms using synthetic inputs. 🔹 Diverse system Our approach integrates a diverse range of crops on each hectare, but we calculated yields here on a hectare-equivalent basis to compare crop yields directly with conventional mono-cropped farming systems. 💡 More to come Stay tuned for more insights – we’ll soon share data on profitability per hectare, to dive into the economic implications of regenerative agriculture for smallholders. We've also got data on soil health. :-) Great kudos to the team: Derrick Mwiinga Muunga Mapenzi Habeenzu, Nakamwi Manze, Daniel Fourie Lori Manthey Michelle Awuor Gijs Boers --> More info on the farm: https://lnkd.in/eVN2cYr5

Join Stephie Mendelsohn at the African Venture Philanthropy Association panel on Sustainable Finance: enabling entrepeneurial ecosystems in agriculture later today in Nairobi. #2024AVPAConference #regenerativeagriculture #makingitwork

🌱 Excited to share the latest from Grounded! Discover how we’re building strong regenerative rural economies in Africa. Check out our newsletter (https://lnkd.in/e2_xhqBr) for insights and updates! #RegenerativeAgriculture #ImpactInvesting

You know that feeling, when you’ve had the twenty-sixth big setback, and you think: “this is never going to work?”. We know that feeling very well. And we’ve often discussed whether we should give up on our work in the Simalaha conservancy in the south of Zambia, where the soils are poor, the rainfall erratic, and where it takes real skill and tenacity even to ensure access to (and functioning of) basic infrastructure such as water and electricity. However - we are seeing glimpses of success - and even more than that: we are seeing the start of an entirely new model for rural development. We know this newsletter is way too long - but we felt like we should share this story with you. Check it out in the link below! #regenerativeagriculture #zebrasnotunicorns #anewfutureforagriculture https://lnkd.in/e2_xhqBr

Join us on Tuesday 29 October at SOCAP Global in San Fransisco, where Renee Cheung, chairperson of our Investment Committee, will be joining a panel on "Regenerative Economies" along with Rex Raimond and Joachim Ewechu. The session will be interactive, and will shed a light on companies that deliver social, natural and human capital returns. We will discuss the specific needs and opportunities for a regenerative transition for smallholder farmers in East Africa. Location: Classroom Time: 0900 AM - 10.15 AM Join us! Transformational Investing in Food Systems SHONA Commonland Gijs Boers DOEN Participaties B.V. Willem Ferwerda Thekla Teunis https://lnkd.in/gtBbHEDg

Our 2023 Impact Report is out... After years of refining our model and learning from countless mistakes—enough to fill a book ;-) —we're excited to see our approach finally paying off. Here's a taster of what's in there: ☘️ Our perspective on the business case for Regenerative Agriculture for Smallholder Farmers 🔢 Our impact in Numbers 🌍 Our approach to measuring soil health in a pragmatic & cost effective way to be able to monitor progress ☕ Updates from our portfolio companies Happy reading! You can also find the report on our website, via this link: https://lnkd.in/eS8W-efi #regenerativeagriculture #zebrasnotunicorns #investinafrica Gijs Boers Stephie Mendelsohn Thekla Teunis

More than 100 people have registered for our Regen Ag webinar this afternoon at 3 pm CET. You can still sign up! We will cover the following three topics: 👨🌾 Who are the 'smallholder farmers' we work with? What kinds of challenges do they face? ☘ What regenerative agriculture practices do we implement with these farmers and what results do we see? 💰 How can the adoption of regenerative agriculture make a financial difference for smallholders, and what future do we see for regen ag in Sub Saharan Africa? Register here: https://lnkd.in/eaU6cekb #regenerativeagriculture #investinafrica #smallholders #zebrasnotunicorns