In several countries, SASI is supporting smallholder coffee producers in collaboration with the private sector.
Photo: © GIZ
Sustainable agricultural supply chains – transformative partnerships with the private sector
For GIZ, SASI is an integrated solution – for Germany’s Federal Ministry for International Cooperation and Development (BMZ), it is a coherent demonstration of a concept for agricultural supply chains. Innovative approaches are promoted with large-scale financing competitions, multi-actor partnerships, integrated development partnerships with the private sector (iEPWs) and branch initiatives. So far, SASI has mobilised around 73 million euros of private financing with more than 190 businesses in over 20 countries. From Veja through dm to Nestlé and Volkswagen, together with private sector partners, it is contributing to the sustainable transformation of global supply chains, including compliance with the European Union Regulation on Deforestation-Free Products (EUDR), which enters into force towards the end of 2025.
Framework conditions for sustainable agricultural supply chains
Strengthened and sustainable raw materials production in harmony with people and nature as well as a world-wide supply of safe and affordable consumer goods such as coffee, cocoa and palm oil requires secure and diversified access to raw materials. Long-time secure access to raw materials is key to the European economy’s competitiveness and is based on the interest the economy and producers share in making living and production conditions viable and resilient. To achieve this, collaboration between the private sector, politics, civil society and other actors is essential.
Germany’s Federal Government and the EU have introduced various regulations governing global supply chains to achieve sustainability goals. New legislation such as the German Supply Chain Act (LkSG), the Law on Strengthening Organisations and Supply Chains in the Agricultural Sector (AgrarOLkG), the EUDR, the EU Directive on Corporate Sustainability Due Diligence (CSDDD) and the EU ecology decree hold a claim to developing structures. They create more equal opportunities for the private sector in international competition and aim at a better implementation of due diligence.
SASI’s activities at a glance
In the context of the Due Diligence Fund (DDF) funding competition and the Human Rights and Environmental Due Diligence (HREDD) Support Fund coordinated by FairTrade, reg. Ass., commissioned by the BMZ, SASI is coordinating promising approaches to observing entrepreneurial due diligence and fair trade.
Examples of large-scale iEPWs include partnerships with Nestlé and Volkswagen. Nestlé and SASI are involved in improving the living conditions of 20,000 coffee producers in Côte d'Ivoire, Indonesia the Philippines and Thailand. Here, the focus is on a broad-based introduction of regenerative agriculture. For example, the producers are provided with training in finance management and income diversification. In East Africa, Volkswagen are supporting a SASI project on the introduction of e-tractors and decentralised energy supply in order to help farmers on their way towards more sustainable agriculture.
Furthermore, under the umbrella of SASI Multi-Actor partnerships such as the Forum for Sustainable Palm Oil, reg. Ass, and the Forum for Sustainable Cocoa, reg. Ass., as well as branch initiatives on the part of the German retail industry are working on promoting livelihood-supporting incomes and wages. The SASI-coordinated working group is campaigning for responsible business practices in global supply chains. ALDI Nord, ALDI Süd, dm, Kaufland, REWE Group and Lidl are promoting the group’s projects on the raw materials bananas and coffee via co-financing between 2021 and 2027.
Developing transformation together
The sectoral project Sustainable Agricultural Supply Chains (SV NA+), the global project Sustainability and Value Added in Agricultural Supply Chains (GV AgriChains) and the Fund for the Promotion of Innovation in Agriculture (i4Ag), including the fund single measure Sustainable Agriculture for Forest Ecosystems (SAFE), are part of SASI.
Cooperating with the private sector is key to introducing changes in production systems at local level and the supply chains of businesses. This is a win-win option for everyone involved: better living and working conditions at the beginning of the supply chain, sufficient raw material for the companies and advantages for consumers.
(GIZ)
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