Investing with impact and … blueberries
One of the investments made by the Asian fund described in the previous article was providing money to a Chinese company selling various products made of blueberries. Its operations were spread across the whole value chain – from cultivation to branding and marketing. And what about the impact investing?
In fact, when compared to other crops, blueberries have a relatively high value. For this reason, the company was able to lift many farmers out of poverty by teaching them how to grow blueberries and then supply them to the market. The financial outlook was also good since the consumption of blueberries in China was rising, as explained in an article on the INSEAD business school website.
Chance for poor farmers
The company was offering a specific kind of blueberries which were able to survive in the tough conditions prevalent in many parts of rural China. In these areas people are poor because crops such as rice are insufficient for families to make a living. Therefore, workers move to urban-based factories and leave the rest of the family behind.
By helping local farmers to cultivate a high-value crop, the company is delivering a positive social impact: incomes of local farmers can rise roughly eightfold. Furthermore, this model aimed at farmers in remote areas is scalable as a commercial business.
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