IMPACT  HIGHLIGHTS  (2015)  

800   686   $463K   35%  

Jasberry  Farming  Households  Enjoy  Increased  Income  

Farming  Households  Consume  Jasberry  Rice  

Total  Revenue   Gross  Profit  Margin  

$574K   $128K   146%   124%  

Value  Of  Total    Increased  Income  

Value  Of  Total    Health  Benefits  

YOY  Revenue  Growth  (2014-­‐2015)  

YOY  Revenue  Growth  (2015-­‐16)  

VISION              To  transform  the  quality  of  life  for  Thai  farmers    OBJECTIVE        To  provide  small-­‐scale  rice  farmers  in  Northeastern  Thailand  with  higher  income,  while  crea8ng  a                                              scalable  organic  supply  of  nutri8ous  rice    

Rice  cultivation  in  Thailand  plays  a  significant  role  in  the    economy,  food   security,   and   socio-­‐cultural   preservation.  Rice   farmers  make  up   one   out   of   every   four   Thais.   The   country   boasts   the   world’s  second   largest   exporter   of   rice.  Traditions   tied   to   rice   cultivation  strongly  define  the  country’s  cultural  identity.  In  the  Northeastern  region,   two   issues   potentially   threaten   the   sustainability   of   rice  cultivation.   First,  Thai   rice   farmers   are   among   the   poorest   in   the  world   and   earn   a   net   income   of   approximately  US$11.50/month/acre   during   the   6-­‐month   crop   season.   Other   crop   farmers   earn  roughly  ten  times  more.  This  low  income  affects  their  quality  of  life  and  exacerbates   rural   poverty.  Second,   farming  as   an  occupation  attracts   less   and   less   younger   generations,   who   typically   find  better   opportunities   in   urban   areas.  This   phenomenon   threatens  the   long-­‐term   viability   of   farming   as   a   career   option   and   the  general  sustainability  of  the  farming  sector.  

To   address   these   issues,   Siam   Organic   (SO)  introduced  and  popularized  Jasberry  rice  in  2011  in  Northeastern   Thailand.   A   new   Non-­‐GMO   rice  variety,   Jasberry   combines   the   great   taste   of  Thai  Jasmine   rice   with   the   nutritional   and   antioxidant  benefits  of  berries.  Working  with  two  cooperatives  in   the  Yasothon  and  Roi-­‐Et  provinces,  SO  provides  farmers   with   Jasberry   seeds   and   guarantees   a  premium   price   for   the   organic   crop   output.   In  addition,   the   enterprise   supplies   high   quality  organic   fertilizers,   facilitates   knowledge-­‐sharing  sessions,  and  supports   seed-­‐breeding  activities   for  these  farmers.  SO’s  holistic  support  allows  farmers  to  enjoy  better  yield,  lower  costs,  higher  prices,  and  greater   sales.   Together,   these   benefits   increase  their  overall  income.    

 FINANCIAL  HIGHLIGHTS  (2015)  THE  BOTTOM  LINE  

To   sustain   its   impact,   SO   operates   a   social   business  model.  The   enterprise   sells   a   range   of   products,   including   organic  Jasberry   rice   targeted   to  middle-­‐income   and   health   conscious   consumers   in  Thailand,  with   aspirations   for   international  markets.  In  the  current  global  context,  existing  rice  products  present  consumers  with  a  trade-­‐off  between  nutritional  value  and  taste.  Market  surveys   indicate  that  Thai  Jasmine  rice  provides  great  taste  but   low  nutritional  value,  while  brown  rice  offers   high   nutritional   value   at   the   expense   of   taste.  The   organic   Jasberry   rice   marries   both   positive   elements   of   rich  nutritional  value   in  tandem  with  superior  taste.  SO  charges  a  competitive  price  premium  and  distributes   its  products  via  retail  branches,  food  service  channels,  and  e-­‐commerce.  To  fuel  its  growth,  the  company  aggressively  expands  its  market  reach  by  tapping  into  the  Singapore,  Hong  Kong,  US,  EU,  Australian  and  New  Zealand  markets.  In  addition,  SO  invests  in  product  innovation  to  widen  and  deepen  its  product  mix.    

PROBLEM  STATEMENT   VALUE  PROPOSITION  

THE  BUSINESS  MODEL  

*Dollar  figures  are  in  USD.  Year  2015  refers  to  Jun’14  to  May’15,  while  year  2016  refers  to  Jun’15  to  May’16  **Financial  informaEon  includes  the  combined  expenses  of  both  Siam  Organic  and  Jasberry  Co,  adjusted  to  eliminate  the  effects  of  double  counEng.�

•  800   farming   households   each   benefit   from   increased  income  of  THB  97,213   and  170.3%   increase   in  profit/rai  from  Jasberry  rice  compared  to  the  closest  alternative.  

•  686   farming   households   consume   Jasberry   rice   and  experience  improved  health  

•  800   farming   households   enjoy   increased   prices   (about  92.4%  above  comparable  market  rates)    

•  460  farming  households  benefit  from  growing  seeds  in-­‐house,  which  translates   to   reduced  costs  of  US$252  per  farmer  per  year  

•  229   farming   households   enjoy   increased   yield*   in  Jasberry   rice,   averaging   12.5%   more   than   the   yield  outcome  of  white  Jasmine  rice;  on  average  farmers  enjoy  a  46.7%  year  on  year  increase  in  Jasberry  rice  yield  from  previous  year    

•  1,368  farmers  access  12  knowledge  sessions  

•  1200   farming   households   each   benefit   from   increased  income  of  THB  111,795  and  210.8%  increase  in  profit/rai  from  Jasberry  rice  compared  to  the  closest  alternative.    

•  1063   farming   households   consume   Jasberry   rice   and  experience  improved  health  

•  1200  farming  households  enjoy   increased  prices  (about  92.4%  above  comparable  market  rates)  

•  1200   farming   households   benefit   from   growing   seeds  in-­‐house,   which   translates   to   reduced   costs   of  US$252  per  farmer  per  year  

•  343   farming   households   enjoy   increased   yield,  averaging  15.0%  more  than  comparable  yield  outcomes;  on  average  farmers  enjoy  a  43.0%  year  on  year  increase  in  Jasberry  rice  yield  from  previous  year    

•  1,876  farmer  access  12  knowledge  sessions    

KEY  BENEFICIARIES  AND  IMPACT  AREAS  

SO’s  key  beneficiaries  include  Thai  rice  farmers  who  grow  Jasberry  rice.  They  experience  material  change  from  two  impact  areas:    •  through  increased  income  from  better  yield,  lower  costs,  higher  prices,  and  greater  sales;  and  •  from  improved  health  from  consuming  organic  Jasberry  rice.    

The  most   significant   impact  on   these   farming  households  derives   from   increased   income,  which  accounted   for  81.81%     of  all  impacts  that  they  experienced  in  the  current  season  (through  June  2015).    

Impact  Assessment  completed  by  Shujog  on  Oct-­‐2015  

Projections  indicate  a  93.1%  increase  in  total  net  impact  between  2015  and  2016,  mainly  because  of  the  increase  in  number  of  engaged  Jasberry  rice  farmers  and  the  year  on  year  increase  in  Jasberry  rice  yield.  Despite  the  concomitant  increase  in  costs,  analyses  predict  a  net  jump  in  SROI.  In  the  near  future,  SO  expects  to  expand  impact  in  three  ways.  First,  the  social  enterprise  seeks  to  utilize  its  existing  model  and  reach  out  to  more  cooperatives  in  Thailand.  Second,  SO  aims  to  expand  its  activities  for  currently  engaged  cooperatives.  These  efforts  include:  (i)  introducing  a  wider  range  of  financial  services  to  its  farmers  (e.g.  via  targeted  agricultural  lending  programs)  and  (ii)  building  other  revenue-­‐generating  models  for  the  cooperatives  (e.g.  via  value-­‐added   products   created   from   Jasberry   rice,   ecotourism   activities).   Third,   the   company   seeks   to   supply   Jasberry   to   other  underserved   populations   with   limited   access   to   nutritious   food,   such   as   underprivileged   children   as   part   of   a   donation  program.    

(Jasberry  Farmer  from  Yasothon  province):  “I  decided  to  join  because  people  told  me  that  there  is  a  guaranteed  market  and  higher  price…  they  believe  that  Jasberry  rice  commands  a  higher  demand.  There  is  also  better  nutrition.  I  do  not  know  exactly  why  but  it  can  release  the  pain  of  the  bone  and  joint  …  (Thereafter,)  I  have  recruited  about  three  to  four  other  friends.  My  friends  saw  the  results  at  my  farm  and  so  they  came  to  me  and  asked  me  about  it.  They  saw  that  I  have  a  better  price  and  better  quality  of  products.”  

(Jasberry  Farmer  from  Roi-­‐Et  province):  “The  most   important  change  for  me   is   improved  revenue  and  health.   I  hope  to  have  more  support  around  seed  breeding  and  the  extension  of  credit  to  purchase  organic  fertilizers.  If  I  do  not  have  to  buy  the  seeds,   I  have  more  savings  and  will  not  have  to  pay  cash  upfront.  This  allows  me  to  use  the  money  for  other  purposes.”  

SROI  (Social  Return  on  Investment):  A  measure  of  how  much  social  and  environmental  impact  (in  dollar  figures)  is  created  for  every  dollar  invested  into  this  program.  

*Analyses  are  performed  using  data  supplemented  by  SO  

1.6  SROI  18.2%    

Improved  health    

81.8%    Increased  Income  

Total  Net  Impact:  US$701,605  

2.3  SROI  

14.6%    Improved  

health     85.4%    Increased  Income  

Total  Net  Impact:  US$$1,354,943  

*Crop  yield  tends  to  sharply  increase  for  new  varieties  and  reach  a  plateau  in  mature  stages.  To  contextualize  analyses,  the  rice  industry  considers  Jasberry  rice  to  be  at  growth  stage,  and  white  Jasmine  rice  to  be  at  a  mature  stage.    

SOCIAL  VALUE  CREATED,  BY  IMPACT  AREA  (2015)  

SOCIAL  VALUE  CREATED,  BY  IMPACT  AREA  (2016)  (PROJECTED)  

KEY  INDICATORS  (projected,  2016)  

KEY  INDICATORS  (2015)