Over the past two years, IDH, Nature’s Pride and ICA Sweden have collaborated to pilot an innovative model to include smallholder farmers in the Nature’s Pride – ICA vegetable value chain.
Nature’s Pride, a leading European distributor of fruit and vegetables, sources mange-tout peas and sugar snaps from Asunción Export in Guatemala, and in turn supplies to ICA Sweden, the leading grocery retailer in the country.
Asuncion Export sources the crops from smallholder cooperatives and provides support to these cooperatives to grow and professionalize. For example, through training on good agricultural practices (GAP) and social certification, the installation of irrigation systems and of efficient cook stoves and water filters that benefit the community’s health. To cover the costs of the additional services provided to the cooperatives, ICA charges a premium on these vegetables in its stores (through leveraging a story), which are then channeled back to Guatemala.