strategic csr and business development case...
TRANSCRIPT
BY KENYA BIXA LTD
Strategic CSR and Business Development
Case Study (2011-2013)
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Kenya Bixa
ISO 9001 and ISO 22000 Certified company based in South Coast whose core business is processing of Nor-bixin and bixin powder with annual turnover of 120 Tons established in 1979.
CSR
Community Water borehole
Labour
Child labour: Sensitization throughout the supply chain
Health and safety
Risk assessment
First aid kits
Health and Safety Committee
Environment & Energy
Bio – gas and biomax manure Plant
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Child labour used to exist at the farm level integrated as a cultural value.
Conducted 10 sensitization meetings Outcome Most of The children attend school
Business benefits:
Assurance of better working condition through the supply chain and cordial relationship with the suppliers and the farmers and Compliance with Global Legal requirements on child labour
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Current contracts
farmers appx. 350.
Bixa acreage of 1,750.
Annual seeds collected
1200 Tons.
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2010201120122013
Contract
farmers
Seeds in
Tons
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Contract farmers Parameters Output
Acreage 250 trees per acre Given free by KBL
Harvest 2 times per year 16kgs per year per tree
Revenue Kshs. 40 per kg Kshs. 160,000 per year per
Acre
5 acres Kshs. 160,00 x 5 Kshs. 800,000
Expenses Appx. Kshs. 200,000 Kshs. 600,000
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Began business in 1986
Purchase 75% of our production.
2006 – 2009 we were not able to fully supply because there was very little raw material
we were unable to get substantial orders from Chr. Hansen
Through Susbiz programme secured a visit by Mr. Stevenson the Global Sourcing director
2013 to sign contract of 50 Tons because of
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SALES IN TONES
Tones
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Cost of installation 4,188,414.00
Operation Expenses and payback period Since
Diesel Consumption Norbixin
Powder
Norbixin
Powder/ Ltr
Diesel savings
per year
Savings in
Ksh
YEAR Litres Cost Kgs Kg/Ltr Lrs
2008 11,500
577,875.00 32,684
2.84
2009 6900
376,050.00 20,098
2.91
2010 17650
1,155,898.00 34,965
1.98
2011 0 - 20,935
8,051.92 748,831.35
2012 0 - 23,538
9,053.08 887,201.84
2013 61,600
23,692.31 2,440,307.93
Average savings per Year 1,358,779.00
Recovery period Cost of project/ / annual savings 3 Year
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Provision of full equipped First
aid kits
Trained committee
Emergency preparedness and
pictorial signs in place
Training on proper use of PPE
Conducted risk assessments
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THE END
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