Against this background, Alizetics buys sunflower oilseeds from smallholders for onward selling (see graphic). By buying directly from smallholders in remote areas, working with the farmers’ community-based organisations to organise the end to end buying process, Alizetics provides smallholders with a transparent market, which allows them to generate a significant income from sunflower.
Three success factors positively influence Alizetics’ opportunity for market share and potential for growth:
- working closely with sister company Agrics and other suppliers of input seeds to smallholders increases the quality of the oilseeds;
- contracting large processing companies that have continuous high demand decreases risk and the need for advance financing;
- realising efficiencies in terms of organisational structure, logistics and storage keeps cost low.
Alizetics is currently active in the provinces of Shinyanga and Simiyu in northern Tanzania.