New impact Study released: Siatol in Burkina Faso

Abstract

I&P conducts once a year an in-depth impact study on one of the companies in portfolio so as to analyse its economic and social impacts. The study, conducted in partnership with the FERDI and (Im)Prove, focuses this year on Siatol, a company based in Burkina Faso and specialized in the production of soya oil. Founded in 2010 by Marcel Ouédraogo and supported by Sinergi Burkina since 2015, Siatol works with a network of more than 3,000 smallholder farmers.MethodologyThe study was conducted in February 2016 in Ouagadougou (where the factory and the office of Siatol are located), but also in the regions of Leo, Diébougou and Houndé, where the soya producers work.Surveys and interviews were conducted among 314 soybean farmers, 43 employees and 5 poultry farmers. Several institutional partners were also met to better understand the soy production chain in Burkina Faso.Main FindingsSiatol plays a key role in strucuring the soy production chain in Burkina Faso, by providing farm inputs to the producers and by creating an interesting local offer on the marketBy promoting soy crop, Siatol provides producers with an access to a new cash crop, as an alternative to cotton crop. 63% of the producers has never grown soy before Siatol, and 19 % of farmers were not growing any cash crop (cotton, soybean, sesame). Soy crops is likely to increase their income basis when compared to cotton or food crops (10% estimated income increase in comparison with cotton). Sales of soybean represent an income of €250/smallholder on averageSoy provides revenue diversification without threatening food consumption. Indeed, growing soybean reduces the need for farmers to sell their food crops on the market: the sales rate of maize decreased from 39% before growing soybean with SIATOL to 25% after.Siatol contributes to the greater productivity of the producers thanks to its mentoring and the quality of its farm inputs► Download executive summary on the I&P websiteAboutSiatolSiatol is a young soybean processing company founded in 2010 by Marcel Ouédraogo. Siatol processes soybeans into two high-value products: soya cake, sold to poultry producers, and soya oil, for household consumption. Siatol soya oil is known for its gustatory and nutritional qualities (the oil is made without GMO and is free of cholesterol). Siatol is the only company in Burkina to locally produce soya oil. ImProveSince 2009, (Im)prove supports social entrepreneurs in France and in emerging countries in the evaluation of their social impact and in the promotion of their model. (Im)Prove works with students from French business schools. http://www.im-prove.fr/Investisseurs & PartenairesInvestisseurs & Partenaires is an impact investment group dedicated to African Small and Medium Enterprises. Since its creation in 2002, I&P has invested in more than 50 companies, located in 15 African countries and operating in various sectors of activity (health, transport, microfinance...). These enterprises create local “added value” and long-term employment, and generate important social, environmental and governance impact. http://www.ietp.com/fr FERDIThe Foundation for International Development Study and Research (Ferdi), was created in 2003 on the initiative of the Cerdi (University of Auvergne and CNRS). Its purpose is to promote a fuller understanding of international economic development and the factors that influence it. It supports research activities that make use of the most modern and most directly relevant instruments of economics to study development, and seeks to strengthen the potential of the French-speaking world in this area.