Profit Sharing & Partnerships

As a component of long-term sustainability and to impact the cashew sub-sector LEAD works directly with local farmers.

While farmer co-ops had been created in Guinea-Bissau in previous years, none had been created in a way that included farmer investment and ownership. Farmers would sign up to be on a list, but when it came time to sell their product, they wanted to be paid up front.

Many of these farmers didn’t understand investment. Not only were they limited in their ability to find others to invest in their businesses; many didn’t grasp the importance of investing in themselves and their own businesses.

Contrary to what many believe, farmers in Guinea-Bissau and Senegal have assets that can be used as a form of investment. Labor and raw material are two powerful assets. Farming families throughout rural West Africa have great potential but suffer from limited use of their own capital.

In working with the farmers LEAD invests with them. We provide and encourage farmers to invest graduating portions of their annual production. For example, in the first year they may sell 100% of their product. In year two they may opt to sell 90% of their product and invest 10% in processed food products to be paid back later with profit-share added on. In year three, they might sell 70% and invest 30%. In the end we would like to see them selling only 20% for cash flow and investing the rest to diversify and increase their income. This same opportunity is made available on a completely voluntary basis to processing companies.