Sun oil- Coastal Agro Business Ltd (CABL)

Sun Oil- Promoting sustainable livelihood for coastal marginal farmers and women through climate resilient agriculture like sunflower.

Problem:

The coastal zone of Bangladesh spans over 580 km of coastline and is prone to multiple hazards.  Cyclones, floods, tidal surges, periodic water-logging and land erosion are common throughout this region significantly shaping the lives and livelihoods of coastal communities. The region constitutes 32% of total land area in Bangladesh and hosts nearly 28% of the population. And, according to farmers interviewed in this region, due to negative impact of climate change, salinity in river and pond water has been increasing, rain patterns have also changed in the last decade. They noted dry spells, a reduction of winter season rainfall and a sharp increase and erratic pattern of monsoon rains. Increasing temperatures and erratic monsoon patterns negatively affect shrimp, agriculture (including rice) and homestead gardening. Rice farmers now struggle to predict rainfall patterns that resulting a large amount of agriculture land (approximately 70%) were fallow for 5-6 month and reduced national crop yields.

Solutions:

Considering the above facts and findings CABL with taking technical help from SME Café BD- an inclusive business accelerator, has been taken initiative for producing Sunflower oil from sunflower seeds in the Barguna District - southern coastal zone of Bangladesh under contract farming model that benefitted marginalized farmers by used fallow land and improves the farmer’s livelihood. Sunflowers are being promoted as a suitable crop for the conditions in Bangladesh’ coastal region, sunflower is one of the few suitable crops that can be grown when waters recede during the dry season and day by day Sunflower cultivation is gaining popularity among the farmers. Sunflower cultivation has slightly higher input costs but also generates better returns than other alternatives. It represents a reliable income source to support the livelihood of marginalized farmers. Under the contract farming scheme, Farmers commit to sell agreed amounts of sunflower seed of the specified quality to CABL and farmers are paid the current market price on the spot. Sunflower seeds are crushed and then pressed to extract the oil, which is then further refined and bottled. Finally, CABL markets the branded product “Sun Oil” through its own sales team.  

How will your solution change the world? Bangladesh is a potential market for essential commodities, including edible oils. The demand for edible oil in the domestic market is influenced by several factors. Edible oil is a crucial part of the local cuisine, but the insufficient local production with a steadily growing population and an improving economy makes edible oil market in Bangladesh a promising one, over that, change in the income band, rural to urban migration, awareness towards health-conscious lifestyle, and socio economic conditions also play vital role in shaping the demand for the edible oil. Considering the health benefit like lower cholesterol, good for digestion, prevent cancer, good for bone, nerve & mental health, good source of antioxidants and are stress busters, now a days of sunflower oil market demand has been growing at an even faster rate, estimated at 20% per year in Bangladesh.

A new application in Bangladesh.

The Sunflower oil manufacturing in Bangladesh is still in a nescent stages. Bangladesh encourages and supports investments from national and international organizations in edible oil processing, including the highly beneficial Sunflower oil. 

As a coastal region, the effects of climate change are increasingly unpredictable and the risk of natural disasters is high. Technology may help the farmers for reducing the climate risk by introducing smart Agriculture.

As the Bangladesh economy and the middle class grows, more consumers are choosing local/national and healthier alternatives. Coastal Agro’s Sunflower oil meets both criteria and the plan for next 12 months to make contract farming by 700 farmers and prodcue 60 000 ltr oil

By increasing production of Sun oil from sunflower seeds through procuring more quantity of seeds from more farmers, resulting contribute to sustainable economic development of coastal community.

Through our contract farming model, we will keep continue contact with farmers and through our sales and distribution team, we will sell our product.

Currently we are selling, yearly 36,000 ltr sun oil i.e. 1100 household and no's of contract farmers 400 

By next 12 months we will serve 2000 family and no's of farmers beneficieries will 700 . By next 3 years we will serves 9000 family and no's of farmers 2500

Having long experience in working with rural and coastal community.

The enterprise’s operational and revenue model is structured around the following core activities: 

Farmer network development and contract farming agreement: The enterprise has developed a network of 500 smallholder farmers from which it procures sunflower seeds. In its efforts to grow this network Coastal Agro continues to promote sunflower cultivation as a viable cash crop for the dry season.

Input and service delivery to farmers: Under the contract farming scheme Coastal Agro provides technical support and extension services to farmers including training on modern sunflower cultivation. 

Sunflower seed procurement and collection: Farmers commit to sell agreed amounts of sunflower seed of the specified quality.

Oil processing: Sunflower seeds are crushed and then pressed to extract the oil, which is then further refined and bottled. 

• Marketing, sales and distribution: Finally Coastal Agro markets the branded product “Sun Oil”  in two different prsentations (1L & 2L) through its own sales team (3 personnel). It has three different sales channels: 
  • Direct sales via phone-delivery and from the company headquarters to local businesses and consumers in Borguna (30%).
  • Wholesale to local retail shops. (50%)
  • Through distributors in Dhaka and Chittagong. (20%) 

Solve as an international platform it can help us: :

·         To receive a customized partnerships action

·         Be paired with a mentor 

·         Meet and connect with investors and cross-sector leaders

         Support to increase our exposure

·       Advance our solution through exclusive Brain Trusts

Need Strong management to achieve ambitious growth objectives

Need modern technology based agriculture facility for farmers

Solve can help  for the both case through developing organisational capacty and introducing technology