"Commerce and philanthropy can go together just fine."
10 January 2024
Dutch global company East-West Seed is structurally contributing to development aid in the tropics. The seed breeder invests millions in training smallholder farmers in horticulture.
By the end of next year, the company expects to have trained one million smallholder farmers in the tropics. Although East-West Seed is one of the largest seed suppliers in the world, it remains virtually unknown in the Netherlands. From their Dutch office in a terraced house in Enkhuizen, the 89-year-old founder Simon Groot and his son Rutger call upon companies, governments, and activist groups to collaborate for greater global food security.
"We are a commercial enterprise whose mission is to improve the lives of smallholder farmers," says Rutger Groot. "Poverty is society's greatest enemy," Simon adds, sitting next to his son Rutger and quoting Jan Tinbergen, the Dutch winner of the first Nobel Prize in Economics.
A Livable Earth
"I am a true disciple of Tinbergen," Simon continues. With a sparkle in his eyes, he says, "Tinbergen's book is always here. I want the young people to read it." As evidence, an employee promptly presents three copies of Tinbergen's 'A Livable Earth': a well-thumbed, broken edition; a fresh reprint; and one for the photographer.
On the table in their small office lies a bunch of yardlong beans, a small prickly fruit, and two green, bubbled fruits about the length of a cucumber but twice as thick. "Those big ones are sopropos," Simon says. "I'm still searching for an etymologist who can explain the origin of that Surinamese name." "In English, they're known as bitter gourd," Rutger adds.
Number One in Papaya
Sopropos and yardlong beans illustrate why the renowned East-West Seed (EWS) is so obscure in the Netherlands. These are vegetables absent from almost all local supermarkets, except for ‘tokos’ (shops specializing in mainly Asian food products). "The sopropo is by far the most significant product in our vegetable seed range," explains Groot senior. However, the sopropo does not thrive in the Dutch climate. EWS distributes sopropo seeds to smallholder farmers in tropical countries across Asia and Latin America.
The same applies to yardlong beans. "We are the largest supplier of hosiery seed in Indonesia – the world's foremost hosiery producer," Senior remarks. Junior mentions the papaya fruit: "In papaya seed sales, we are number one globally." These are all tropical plants, also cultivated in greenhouses in the Netherlands.
Five Hundred Trainers
Operating in 75 countries, the company combines seed sales to smallholder farmers in the tropics with farmer extension training programs. In 10 major countries, including Bangladesh, the Philippines, Thailand, Indonesia, Nigeria, and recently Ghana, the company selects trainers who can, among other things, teach smallholder farmers the significant difference made by not scattering vegetable seeds loosely over the land but instead cultivating them with care.
Their foundation, the East-West Seed Knowledge Transfer Foundation, currently employs 280 such trainers. The program, which began in 2016 by retraining 12,000 smallholder farmers, now annually educates 150,000 farmers. "We are aiming for 500 trainers in five years," states Rutger Groot, president of the foundation. By the end of next year, he expects to have trained 1 million smallholder farmers in using the company's slightly more expensive but superior quality seeds.
Slavery or Agri-business
Why this focus on smallholder farmers? "There are 500 million smallholder farmers worldwide, producing 70% of Africa's food, for example. Helping them grow food more efficiently yields so many direct returns," Rutger explains. "If young people see that agriculture is not a kind of slavery but an agri-business from which they can earn, they will see a future for themselves," he continues. "Then they won't all feel compelled to flee desperately to Europe," his father interjects.
The duo recounts a series of anecdotes about the impact they've observed from their blend of commercial and private development aid. For instance, the refugee camp in northern Uganda housing 150,000 South Sudanese people, where EWS trained refugees. "There are now thousands of vegetable gardens there. The people have better food, sell half their produce, and have regained their pride," says Rutger.
Mango Leaf Seed Tray
Another instance: last year in northern Nigeria, a smallholder farmer initially refused to plant EWS' more expensive seeds in separate pots, simply because he lacked them. Rutger recalls, "I pointed him towards the mango trees. You can fold a bag from the leaves, and if you stick a stick through it, you have seed trays." The farmer was too busy for that. "Then the farmer's wife said she would do it. She's now running a commercially successful nursery for plants serving dozens of farmers in the area."
In 2019, Simon Groot won the World Food Prize, a prestigious American award. Microsoft tycoon Bill Gates spoke highly of him at the ceremony. There have been media reports suggesting Gates is sponsoring EWS. "No, we haven't received any direct funding from him," Rutger clarifies. "But I've had confrontations with his staff," his father adds. "They demanded that we be able to calculate in advance the economic growth our work would generate before they would sponsor us. I refused to do that. You can't calculate that in advance."
Tens of Billions of Euros
In hindsight, however, the impact often proves substantial. Simon notes, "A retired researcher from Wageningen is now calculating the added value of the improvements we've made in Indonesian horticulture. It turns out to amount to tens of billions of euros in extra gross domestic product." Simon again quotes Tinbergen and his recipe against poverty: "Market growth is the only growth that matters."
Impossible demands also arose from China, which demanded the genetic source material for improved vegetable varieties. "Then let's not," was Simon's response. How does East-West Seed justify working in dictatorially ruled countries such as Myanmar? "We don't work with governments, but with smallholder farmers," Rutger clarifies. "A universal value is that people need food and a decent income. We believe that commerce and philanthropy can perfectly coexist." Simon adds, "Private equity is primarily about money. We don't think that's the most noble motive in the world."
Family Business
EWS contributes 1.75% of its sales to the East-West Seed Knowledge Transfer Foundation, aiming to make smallholder farmers in the tropics more productive. Last year, EWS's turnover exceeded €180 million, resulting in a donation of over €3 million to the foundation. Since 1990, EWS has had a joint venture, Ewindo, in Indonesia with Enza Zaden, another large industry peer from Enkhuizen. Simon Groot admits he hesitated for a long time before investing in Indonesia due to the Dutch colonial past. He started EWS in 1982 after selling his stake in the family business Sluis & Groot, also a seed breeder and now part of Syngenta. He was almost 50 at the time.
Of the now 2,800 employees, only a few work in Enkhuizen, where the parent company is still based. Steering global operations is the new CEO, Jean-Christophe Filippi, from Bangkok. Filippi is the first non-Dutchman to lead the West Frisian seed company. Meanwhile, despite his advanced age, Groot remains actively involved with the company, albeit now only as "honorary chairman of the supervisory board." He has since passed the shares on to his four children. Together, the family holds a majority stake in EWS, with the remainder owned by local partners in the Philippines and Thailand, and a first-time employee.
Journalists: Vasco van der Boon and Frank Gersdorf
By the end of next year, the company expects to have trained one million smallholder farmers in the tropics. Although East-West Seed is one of the largest seed suppliers in the world, it remains virtually unknown in the Netherlands. From their Dutch office in a terraced house in Enkhuizen, the 89-year-old founder Simon Groot and his son Rutger call upon companies, governments, and activist groups to collaborate for greater global food security.
"We are a commercial enterprise whose mission is to improve the lives of smallholder farmers," says Rutger Groot. "Poverty is society's greatest enemy," Simon adds, sitting next to his son Rutger and quoting Jan Tinbergen, the Dutch winner of the first Nobel Prize in Economics.
A Livable Earth
"I am a true disciple of Tinbergen," Simon continues. With a sparkle in his eyes, he says, "Tinbergen's book is always here. I want the young people to read it." As evidence, an employee promptly presents three copies of Tinbergen's 'A Livable Earth': a well-thumbed, broken edition; a fresh reprint; and one for the photographer.
On the table in their small office lies a bunch of yardlong beans, a small prickly fruit, and two green, bubbled fruits about the length of a cucumber but twice as thick. "Those big ones are sopropos," Simon says. "I'm still searching for an etymologist who can explain the origin of that Surinamese name." "In English, they're known as bitter gourd," Rutger adds.
Number One in Papaya
Sopropos and yardlong beans illustrate why the renowned East-West Seed (EWS) is so obscure in the Netherlands. These are vegetables absent from almost all local supermarkets, except for ‘tokos’ (shops specializing in mainly Asian food products). "The sopropo is by far the most significant product in our vegetable seed range," explains Groot senior. However, the sopropo does not thrive in the Dutch climate. EWS distributes sopropo seeds to smallholder farmers in tropical countries across Asia and Latin America.
The same applies to yardlong beans. "We are the largest supplier of hosiery seed in Indonesia – the world's foremost hosiery producer," Senior remarks. Junior mentions the papaya fruit: "In papaya seed sales, we are number one globally." These are all tropical plants, also cultivated in greenhouses in the Netherlands.
Five Hundred Trainers
Operating in 75 countries, the company combines seed sales to smallholder farmers in the tropics with farmer extension training programs. In 10 major countries, including Bangladesh, the Philippines, Thailand, Indonesia, Nigeria, and recently Ghana, the company selects trainers who can, among other things, teach smallholder farmers the significant difference made by not scattering vegetable seeds loosely over the land but instead cultivating them with care.
Their foundation, the East-West Seed Knowledge Transfer Foundation, currently employs 280 such trainers. The program, which began in 2016 by retraining 12,000 smallholder farmers, now annually educates 150,000 farmers. "We are aiming for 500 trainers in five years," states Rutger Groot, president of the foundation. By the end of next year, he expects to have trained 1 million smallholder farmers in using the company's slightly more expensive but superior quality seeds.
Slavery or Agri-business
Why this focus on smallholder farmers? "There are 500 million smallholder farmers worldwide, producing 70% of Africa's food, for example. Helping them grow food more efficiently yields so many direct returns," Rutger explains. "If young people see that agriculture is not a kind of slavery but an agri-business from which they can earn, they will see a future for themselves," he continues. "Then they won't all feel compelled to flee desperately to Europe," his father interjects.
The duo recounts a series of anecdotes about the impact they've observed from their blend of commercial and private development aid. For instance, the refugee camp in northern Uganda housing 150,000 South Sudanese people, where EWS trained refugees. "There are now thousands of vegetable gardens there. The people have better food, sell half their produce, and have regained their pride," says Rutger.
Mango Leaf Seed Tray
Another instance: last year in northern Nigeria, a smallholder farmer initially refused to plant EWS' more expensive seeds in separate pots, simply because he lacked them. Rutger recalls, "I pointed him towards the mango trees. You can fold a bag from the leaves, and if you stick a stick through it, you have seed trays." The farmer was too busy for that. "Then the farmer's wife said she would do it. She's now running a commercially successful nursery for plants serving dozens of farmers in the area."
In 2019, Simon Groot won the World Food Prize, a prestigious American award. Microsoft tycoon Bill Gates spoke highly of him at the ceremony. There have been media reports suggesting Gates is sponsoring EWS. "No, we haven't received any direct funding from him," Rutger clarifies. "But I've had confrontations with his staff," his father adds. "They demanded that we be able to calculate in advance the economic growth our work would generate before they would sponsor us. I refused to do that. You can't calculate that in advance."
Tens of Billions of Euros
In hindsight, however, the impact often proves substantial. Simon notes, "A retired researcher from Wageningen is now calculating the added value of the improvements we've made in Indonesian horticulture. It turns out to amount to tens of billions of euros in extra gross domestic product." Simon again quotes Tinbergen and his recipe against poverty: "Market growth is the only growth that matters."
Impossible demands also arose from China, which demanded the genetic source material for improved vegetable varieties. "Then let's not," was Simon's response. How does East-West Seed justify working in dictatorially ruled countries such as Myanmar? "We don't work with governments, but with smallholder farmers," Rutger clarifies. "A universal value is that people need food and a decent income. We believe that commerce and philanthropy can perfectly coexist." Simon adds, "Private equity is primarily about money. We don't think that's the most noble motive in the world."
Family Business
EWS contributes 1.75% of its sales to the East-West Seed Knowledge Transfer Foundation, aiming to make smallholder farmers in the tropics more productive. Last year, EWS's turnover exceeded €180 million, resulting in a donation of over €3 million to the foundation. Since 1990, EWS has had a joint venture, Ewindo, in Indonesia with Enza Zaden, another large industry peer from Enkhuizen. Simon Groot admits he hesitated for a long time before investing in Indonesia due to the Dutch colonial past. He started EWS in 1982 after selling his stake in the family business Sluis & Groot, also a seed breeder and now part of Syngenta. He was almost 50 at the time.
Of the now 2,800 employees, only a few work in Enkhuizen, where the parent company is still based. Steering global operations is the new CEO, Jean-Christophe Filippi, from Bangkok. Filippi is the first non-Dutchman to lead the West Frisian seed company. Meanwhile, despite his advanced age, Groot remains actively involved with the company, albeit now only as "honorary chairman of the supervisory board." He has since passed the shares on to his four children. Together, the family holds a majority stake in EWS, with the remainder owned by local partners in the Philippines and Thailand, and a first-time employee.
Journalists: Vasco van der Boon and Frank Gersdorf
Read the full article: https://fd.nl/bedrijfsleven/1501882/commercie-en-filantropie-kunnen-prima-samengaan