Togo, l'agriculture biologique au défi du financement
Although still a small minority, Togolese authorities have encouraged the emergence of an organic farming (AB) sector focused almost exclusively on exports. We take a look at this with Gustav Bakoundah, founder of Label d'Or, a company that brings together hundreds of small producers. The company has implemented a monitoring system to oversee soil quality and input use. But despite its successes, the problem of financing remains.
“We have a responsibility to our producers”From the outset, Gustav Bakoundah set the tone. The Togolese entrepreneur is at the head of Label d'Or, a company he created in 2012. Initially, Label d'Or brought together a large network of farmers who specialized mainly in growing organically certified pineapples on small plots. Togo offers favorable conditions for the production of this fruit, guaranteeing a constant supply almost throughout the year. Annual pineapple production in the country amounts to more than 40,000 tons per year (2022), including more than 30,000 tons from organic farming. But smallholders are not always able to access the market. Label d'Or supports them in obtaining organic certification and provides them with technical assistance to improve their practices, in particular agroforestry. A method that allows beneficiaries to both find outlets and sustain their production. But projects often encounter financing problems.
FARM: What was your initial objective in founding Label d'Or?
Gustav Bakoundah: At first, we were mainly interested in pineapple production. Then came papaya and oilseeds like soybeans. We only grew and harvested them. In 2017, we started processing with the establishment of the Jus Délice factory. Every year, we produce 4,000 tons of organic juice there, which is destined for bottlers around the world. We also produce organic pineapple concentrate and pineapple puree for infant nutrition. For the moment, we are not very active in local and regional markets. We are in an organic sector, with high added-value products, so we promote them for export.
In February 2023, we launched a second processing unit. This time for shea butter. The potential is great; we can aim for 4,000 tons of organic shea butter annually with the Fairtrade label. The majority of production is also intended for export. We have developed a very robust internal control system that brings together around 100 technicians for approximately 12,000 producers across all sectors.
FARM: Is producing organically grown food a big challenge in a country like Togo?
Gustav Bakoundah: Togo is a small country; we can't compete with larger nations. We're playing the comparative advantage card. The country has chosen to support organic farming with niche sectors. In West Africa, Togo is among the leading exporters of organic-certified products to the European Union (see box).
But the challenge is complex. In Africa, there is often a productivity problem linked to the availability of labor. Farmers are often tempted to go for the fastest option. And the fastest option is low-cost pesticides. Sometimes they aren't even approved. They've officially been taken off the market but are still on sale, and farmers don't know it. We often face these types of problems. This is where Label d'Or's internal control system plays its role: we make sure we know the history of the plots of our producers and the treatments they have received. Field technicians ensure that no chemical inputs are used. Otherwise, the plots are excluded from our list. Sometimes, we even remove producers from our system. This constant monitoring allows us to maintain the organic integrity of our products.
FARM: What financial levers did you have to activate? What kind of difficulties did you encounter?
Gustav Bakoundah: The real problem in Togo, like other African countries, is that they are developing countries that are still in the construction phase. Financing is a big challenge. We have chosen slow individual growth, which allows us to reinvest gradually and little by little in our business. But at some point, there necessarily has to be financial support. The banks help us a little with working capital. But it is very difficult to obtain financing for investments. For the Jus Délice factory, for example, we did not have financial support locally. So we were forced to seekequity with the background Moringa who followed us (Equity: principle of equity financing which amounts to being supported by partners up to the value of the company – editor’s note). Today, we are looking for structural financing to develop the activity, release the necessary resources to diversify and create more added value with other sectors that we want to integrate. Either alone, on our scale; or by partnering with other processing plants.
FARM: What is your relationship with your producers?
Gustav Bakoundah: We have a responsibility to our producers. These are the people with whom we have built our approach, and we are committed to supporting their development and empowerment. There are two main challenges: volume. And quality. How can we ensure that farmers achieve self-sufficiency by producing enough while respecting organic farming standards? This is a central issue. We must help farmers earn money. From the moment they understand that what they earn can allow them to feed and care for themselves, but also to educate their children and even send them to university, they understand the challenges and are committed. Moving toward organic farming is a way to add value to our farms by avoiding pesticides while earning more.
Interview by FARM.
