Hayleys-USAID “Out Grower” Program
A ground-breaking Private Public Alliance between the
United States Agency for International Development
(USAID) and Hayleys commenced in April 2008. It assisted
farmers in areas affected by conflict, to embrace innovative
agricultural practices in an effort to improve their incomes.
Hayleys initially introduced gherkins, jalapeno peppers and
pineapples to selected locations of the project areas,
facilitated technology transfers to farmers, provided
material inputs on credit and guaranteed prices to farmers
for their agricultural produce.
At the end of this pilot project, each of the 160 participating
farmers earned an average of Rs 45,000 per acre
(approximately $400) as additional net income for the twomonth crop cycle; a substantial supplement to subsistence
farming. Knowledge transfer and creation of market linkages
helped the farmers to increase their commercial farming
income through better utilization of their land resources.
The success of the pilot project led to a new alliance in 2009 between USAID, Hayleys and its
subsidiaries. This Sustainable Agriculture through Commercialization (SAC) Project links 3,600
conflict-affected farmers from different regions in the Eastern Province to a commercially viable
and sustainable agricultural programme that ensures a substantial increase in farmer incomes.
Through the project, Hayleys plans to buy farmer produce valued at $5 million (Rs 575 million)
thus ensuring an increase of almost 50 per cent in net income per farmer by 2012. An initial grant
of $1 million (Rs 113 million) by USAID was leveraged by nearly $3 million (Rs 323 million) in
investment by Hayleys and its subsidiaries; Sunfrost Limited and Hayleys Agro Farms (Pvt) Ltd.
The SAC project will link 2,500 gherkin farmers to a global supply chain through a farmer OutGrower system, utilizing the strengths of Hayleys in superior manufacturing, global marketing and
increased value addition to farmer produce in the Eastern Province. In addition to the links with the
global market, the project will empower local agricultural producers through production and
supply of high quality seed material.
2009 Global Development Alliance Award
Success of the project led to USAID awarding Hayleys “2009 Global Development Alliance
Award”. Hayleys Group was chosen from 700 such initiatives around the world to receive the
prestigious award due to the company’s commitment to the sustainable development
developme of rural
farm communities and for the project success.
The U.S. Government singled out this partnership as a model of how U.S. Government foreign
assistance can be maximized through greater engagement with the private sector.
Hayleys Chairman,
Mohan Pandithage and
USAID Sri Lanka Mission
Director, Rebecca Cohn
posing with USAID Chief
Operating Officer,
Alonzo Fulgham after
the awards ceremony
Expansion of “Out Grower” Program to Eastern Province
Hayleys extended a helping hand by developing the farming community of the eastern province
through the introduction of its award winning “Out
“Out-Grower”
Grower” program to uplift the living standards
of these rural communities.
A new programme was launched in partnership with the farmer
armer community in the Eastern
province, to produce 5,000 metric tons of Gherkin and 100,000 bushels of seed paddy in this area
by 2011. MOUs and purchase agreements entered into with members of the Akkaraipattu Seed
Producers Society Gherkin farmers envis
envisage
age that Hayleys Agro would introduce new technology in
agriculture and provide training and best practices to improve productivity and quality.
The company has also put in place a buy
buy-back
back arrangement, assuring farmers a consistent price for
seed paddy and
nd gherkins. Additionally, Hayleys contribute
contributes to capacity building, provides
provide
assistance on post harvest handling, market access and set up a seed paddy processing unit in the
Eastern province.
This programme is a win - win proposition for the agriculture sector of the Eastern province as it
will create opportunities for seed paddy farmers and gherkin farmers to earn higher incomes
through enhanced productivity.