SDM Case Study: Unilever, Tanzania

In Tanzania, IDH and Unilever Tea Tanzania are working on the Mufindi Outgrowers Project (MOG) since 2014. The objective of the project is to enhance the livelihoods of smallholder farmers in the villages surrounding Unilever Tea Tanzania (UTT) estates, as well as supporting the integration of the tea supply within UTT, through increasing tea productivity and quality, expanding the smallholder supply base and strengthening farmer organizations.

Our SDM analysis has found that quality bonus payments, coupled with training and strict quality requirements attract farmers to the SDM and improve loyalty rates. The service provision and commercial activities are closely integrated, which ensures internal alignment between activities and which allows UTT to use some of their resources and knowledge more efficiently.

Looking ahead, IDH and UTT are aiming to make the SDM sustainable and self-sustaining, without external funding. This will be addressed in the next phase of the MOG project, which will run from 2019-2020.

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