Sustainability project

COSSMA: naturamus and Limbua have a special partnership. Can you reveal more about it?

Ralf Kunert: To be honest, we were lucky. In order to find a trustworthy sourcing partner for macadamia nuts, we found the “macadamia fans”, the predecessor organisation of Limbua at the exhibition “Biofach 2015”. Both of us, basically, share the same points of views: ethical sourcing, ecological sustainability, and transparency. Therefore, we decided to financially support on the one hand, and to source organic and fair-trade macadamia nuts on the other.

Matti Spiecker: The foundation of the “macadamiafans”/“Limbua” started in 2006 with an expedition around the globe to 40 social entrepreneurs. I visited “best practice” projects for sustainability in 25 countries in Asia, Latin America, and Africa. We founded “Limbua” with the aim of conflating the best results of these projects. Today, we see ourselves as an innovative interface between smallholders in Africa and critically asking customers all over the world.

What do you declare to be an “innovative interface”?

Matti Spiecker: By using a high degree of state-of-the-art technology, we enable direct support to smallholders. For example, we have established a bar code system ensuring the traceability of each nut package back to the farmer. If there is a problem regarding a batch, we can trace back the package to support the farmer. This way, we not only guarantee consistent premium quality, but also ensure complete transparency throughout the entire processing chain. We use a digital fingerprint payment system to make sure, all farmers get paid well and honestly. This improves the income of the smallholders while keeping the price performance ratio for our customers reasonable.

Ralf Kunert: We also declare to be innovative partners since both companieslive the idea of sustainability in a meaningful way. For example, Limbua operates modern and decentralised production facilities in the immediate vicinity of the 5,000 smallholders associated with Limbua. This reduces transport costs, saves energy, and preserves the freshness of the nuts. On top, both companies only trade with organically grown and processed products. That not only includes the protection of the environment but also stands for social responsibility.

How did this partnership grow?

Matti Spiecker: In the beginning, there was a large interest-free loan from the parent company of naturamus, WALA Heilmittel. With the help of this money, we could develop in the first hand. Although naturamus was a very small customer at that time, we were able to exchange ideas on various issues as well.

Ralf Kunert: naturamus grants an annual purchase guarantee for macadamia nuts. By doing so, we contribute to a sustainable source of income for the Kenyan smallholders, while Limbua can plan. In turn, we rely on a strong and long-lasting partner. However, Limbua and naturamus have come across with more. Both of us are “Fair for Life”-certified. The idea goes beyond Fair Trade initiatives and makes sure the agency of smallholders is strengthened. For each kilo of macadamia nuts, we support the local “Fair for Life” fund with an agreed percentage on the raw material price per kilo. A committee of Limbua employees and smallholders decides autonomously on how to spend the money. In 2018, for example, school utensils were purchased for children of financially disadvantaged families; in 2019, new seedlings and organic fertilisers were procured.

Why do you produce the oil in Germany, not in Kenya?

Ralf Kunert: It is completely in line with our philosophy to leave the added value in Kenya. We see this as an opportunity for endogenous growth. But we have found out that Germany is a highly interesting business place to trade not only oil but also press cake grounded into flour. We have, thus, decided to market oil and press cakes in Europe.

Matti Spiecker: We have made up our minds on how to diversify the portfolio of Limbua and naturamus on the one hand and on how to keep more created value in Kenya on the other hand. During a visit to Kenya in 2016, the idea of supporting the farmers by producing and providing pressed avocado oil was established.

How does this project look like?

Ralf Kunert: We have started to set up a production plant in Embu to press

avocado oil directly after the harvest takes place. To implement this construction project, we have arranged a loan from the “Deutsche Investitions-undEntwicklungsgesellschaft” (DEG) for Limbua.
Matti Spiecker: The DEG-loan helped us building the production plant without financial concerns. Since naturamus has given a purchase guarantee for the oil, we can concentrate on producing it. This is a good compromise for both, and, in return, we have worked out a profit share model. 

How close can this partnership be?

Matti Spiecker: I think the partnership thrives on working together equally. We are both independent companies. But it makes sense to work together in the field of oils. We market the nuts directly. In the case of oils, we have made the experience that customers often look for with a focus on companies with a wide range of oils.

Ralf Kunert: With business relationships it is like with other human connections: you should form them in a way both enjoy it, otherwise it will not work in the long run.

What do you need to know about the local legal situation?

Matti Spiecker: Of course, it is important to be familiar with the local situation and to build up a local Kenyan team that you can fully trust and that has experience with the local formalities. For new construction, for example, you need nine different permits. The property must be registered for the right use. Neighbours must be asked about the environmental impact as part of expert

reports, and much more. But with a good team, it is all manageable.

And where are the pitfalls in the cooperation?

Ralf Kunert: As always, they lie in communication. You cannot talk to each other enough to avoid misunderstandings. But this works very well for us.

Matti Spiecker: I agree with this, and, of course, there are still many pitfalls on the ground, so from my point of view the trusting cooperation with the farmers is the basis for everything.