Photo by UNDP
Sustainable food and cash crop production
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description
Undertake sustainable production of cash crops and food crops, especially coffee, tea, coconuts, nuts and oils crops, maize, sugar and horticulture.
Contribute to food security, reduce food costs and minimize environmental degradation.
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Average annual expenditure on food per capita of USD 729 million.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Photo by 3BL Media / Olivado
Case Study: Olivado Group integrates small scale farmers into international avocado value chains
Olivado Group, a major supplier of avocado and other edible oils worldwide, entered the Kenyan market in 2007 and Tanzania in 2018 with a unique inclusive business model involving a Fair Trade and Organic out-grower scheme offering a consistent sales channel to 7,000 smallholder farmers.