Introducing Novos Horizontes: Inclusive Business in Mozambique
Written by Janet Macharia, BoP Marketing Specialist.
Mozambique is a country that can be considered ‘challenging’ when doing business, especially after the currency drop last year. Also for the 2SCALE program, getting some of the partnership started was a challenge that we celebrated with a good success in 2016: signing the partnership with Novos Horizontes. In this blog post we will briefly introduce Novos Horizontes (referred to as Novos), their inclusive approach and the work that 2SCALE will be doing in 2017.
In the vast land of Mozambique is Novos Horizontes LDA, situated in a serene environment with empowering ability to the people of Rapale district in Nampula province. It was founded in 2006 as a private company dedicated to poultry feed processing, chicken production and processing. The company also engages in an out grower schemes involving 190 smallholder producers in chicken production as well as breeders, hatchery and abattoir that are available at Novos Horizontes farm. The company has grown steadily with 620 employees from 10 that started, this has improved standard of living for more than 1,500 families based in Nampula.
Novos primarily focussed on poultry, but has a far more elaborate vision that goes beyond just chicken. Because at the heart of Novos are the people: whether their employees, outgrowers, related distributors or their consumers. Their vision is that people joyfully develop their fullest potention and they are trying to reach that goal by nurturing fruitful work through integrating markets, supplies, holistic training and support. On top of that, Novos is planning to expand its business with other products, such as eggs and locally grown vegetables.
To run a successful business in Nampula, Novos Horizontes has integrated various aspects of poultry in its organisation. Firstly, they own their own hatchery to hatch chicks. Secondly, they work with a network of small holders chicken farmers (outgrower) to grow the small chicks to consumption ready. These 190 farmers are trained by Novos Horizontes and supplied with equipment, chicks and feed. For the latter, Novos needs significant amount of soy and maize. Together with 2SCALE, Novos is planning to increasingly source locally and improve the farm business of local soy and maize cooperatives.
The farmers that are part of Novos’ outgrowers program are able to receive support from Novos. With this ‘support package’ they’re able to run a small sized poultry farm. Some of the successful farmers are able to expand their farm from 400 chicken to 2.000 chicken in two years time! In five weeks the chicken are ready for consumption and Novos picks them up. In their abattoir, Novos turns the chicken into frozen chicken parts. These can be full chicken or chicken parts such as legs, heads and hearts. There’s not a single chicken part that doesn’t get sold!
After the production of the chicken, it’s time for sales and distribution. Currently, Novos has a strong focus on large size retailers and wholesalers that sell their chicken. Apart from that, Novos also has their own shops that sells chicken and eggs. Interestingly, most of these outlets are centrally located and are mostly suitable for the middle and higher class market. The Base of the Pyramid (BoP) consumers purchase their chicken often at open markets, butcheries and kiosks – so called ‘resellers’. These resellers purchase their chicken at the the large retailers, before bringing them to the open market.
Part of 2SCALE’s work will be to engage with the small/medium sized resellers together with the large retailers and Novos’ direct distribution. By collaboration and extending Novos’s marketing efforts, the goal is to increase the distribution reach of Novos’ products and supply more BoP consumers in the Nampula area. Just like the outgrowers, Novos will invest in training these resellers and ensuring they increase their sales and supply of their chicken items. This year Novos will start it’s activities in the retail market, soon more information will follow!