World Monitor Magazine WM_Energy_ 2019_web | Page 42

Social responsibility Chilik Farmers project Beneficiaries of the Project: Amount invested: Small-scale farmers living in Yenbekshikazh district of Almaty region (approximately 2,000 farmers) Number of employees engaged in the Project: Direct involvement in the Project: 2 employees, however all PMK factory employees (600 people) have an opportunity to buy farmers vegetables during regular fairs, which we organize at the factory as well as organizing trips to the agribusiness centre in Chilik village. More than USD 1,200,000 (since 2011) Philip Morris Kazakhstan started a Rural Development Program in 2011. The program aims to improve the well-being of small- scale farming communities through introducing effective farm management techniques and innovative cash crop growing practices. An agribusiness center was opened in 2013 for farmers and the community to be a place for every farmer to ask for advice and get help. It is well-equipped with a demonstration field, training room, computer class and mini laboratory to do soil fertility testing and get advice on organic crops, safe fertilizers, rotations and other issues. Trainings: Since 2013, the agribusiness centre has offered nearly 60 training sessions for more than 1,500 farmers, organized together with experts from the University of Florida, University of Wisconsin, the Kazakh National Agrarian University and DAMU Entrepreneurship Development Foundation. A direct sales mechanism (exclusion of intermediaries in supply chain) to Arzan supermarket was implemented in 2015. In 2018, an agreement was signed with METRO supermarket chain, which allowed farmers to expand the geography of vegetable sales to other regions of Kazakhstan. These mechanisms help to increase profitability of farmers as well as provide an opportunity for 40 world monitor Almaty, Nur-Sultan, Semey, Pavlodar and Ust-Kamenogorsk citizens to buy fresh and local vegetables. Cooperation. In August 2017, the most active participants of the project created and officially registered a cooperative called ‘Chilik farmers’ (26 members). They receive relevant knowledge at the agribusiness centre on how to manage, organize logistics, keep financial records, etc. working in a cooperative. This mechanism helps to secure project sustainability in the long run – cooperative members are now running their own businesses, have regular meetings, sign contracts with supermarkets, decide on logistic options and develop future plans. The project received numerous awards from the Ministry of Religious and Civil Society Affairs of the Republic of Kazakhstan, the Akimat of Almaty Region, the European Business Association of Kazakhstan, the American Chamber of Commerce in Kazakhstan. In 2018 the project received a prestigious international award – The International CSR Excellence Awards in the ‘Social and Economic Development’ nomination. The prize was awarded by The Green Organization, a non-profit organization established in 1994. www.facebook.com/chilikfarmers