SEKEM Insight 02.12 EN

Nr. 113 - Februar 2012

Insight

SEKEM‘s Journal for Culture, Economy, Society and Ecology in Egypt

Editorial Dear Readers, this month we have changed the the numbering and naming scheme of all future issues of SEKEM Insight. We have done this to eliminate a long-standing problem in the assignment of individual issues to their months of publication.

SEKEM Minya

Code of Conduct

BioFach 2012

Renewed Optimism on SEKEM’s New Farm

SEKEM Reworks its Regulations

SEKEM und Helmy Abouleish to Join

Renewed Optimism on SEKEM’s Newest Farm in Central Egypt SEKEM’s new farm in Minya is the youngest member of the SEKEM family.

The two project managers Maximilian Philipp Boes and Soraya Abouleish tell about their renewed optimism after the Egyptian revolution.

So, this month we skip the number 113 associated with January and bring you the „February issue“ as it should be - at the beginning of the month of February.

Moreover, also in this month, we start a new series of articles aimed at introducing you to work at the different kinds of commercial ventures at the SEKEM initiative. We begin with SEKEM’s newest farm in Central Egypt, close to the town of Minya. Minya’s farm was founded in a dry riverbed some three years ago and has been left mostly unscathed by the revolution of 2011.

Our authors explain why the SEKEM Minya team is these days looking towards the future with renewed optimism and how the development of SEKEM’s latest “child” is proceeding with the aid of several European partners to the team.

Your Team of Editors Find SEKEM also on the Internet at:

Out of the gates of SEKEM Minya, the view passes over the green wadi - a dry river bed - at the bottom of which the fields of SEKEM’s newest farm are situated.

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n 2008 SEKEM acquired a piece of land in the Minya Governorate in Upper Egypt on which it intended to found a new farm. The facility was built within a river bed (wadi). The area that is situated between two mountain slopes was destined to assist in ensuring the reliable supply of high-grade organic raw materials to the initiative biggest firm ISIS. 2010 then saw the first harvest of dill on the new site that has since expanded into a fully-fledged farming business with

a number of full-time co-workers living and working on the premises.

After operations on the farm with a surface area of almost 2,000 feddan had to be interrupted for almost 5 months as a result of the economic impact of the Egyptian revolution, July 2011 saw the relaunch of regular farming operations. Today’s SEKEM’s „Minya Team“ running the site consists of the farm manager Arabi, who is working in Minya for the first time, SEKEM Insight | Februar 2012 | Page 1

Economy

seven engineers, five vehicle drivers, ten other workers caring to general agricultural tasks, and Abdallah, the cook and his assistant. To this group need to be added the German master technician Wolfgang Schulz, who has selflessly been supporting the technical development on SEKEM’s main farm for the past 8 years and who is currently responsible for the mechanization of the new site, and Simon Merckens, who is in charge of the production of bio-dynamic preparations and animal husbandry. Simon Merckens grew up in SEKEM and speaks fluent Arabic. Wolfgang Schulz has been taking care of juice production at ISIS since 2003 through August 2011. The project managers Philipp Maximilian Boes and Soraya Abouleish have been living on the farm since August 2011 and are today primarily concerned with the sustainable greening of the desert and community building activities.

SEKEM in Minya: A New Beginning SEKEM’s new farm is situated about forty kilometres from the city of Minya

Employees of SEKEM farm in Minya participate in their communal morning eurythmy.

in a dry, 18km long river valley, surrounded by sandstone mountains.

Numerous fossils of shellfish remind visitors of the once wet nature of the region. Of the approximately 2,000 feddan of the farm 515 (about 216 hectares) have already been cultivated in recent years. 320 of them are currently in use while the rest of the surface area houses buildings and other

infrastructure. The team initially started cultivating chamomile (90 feddan) in January of this year. 215 feddan have been cultivated this season already, mainly with parsley, onions, cilantro, dill, and garlic. In the coming summer season, the team intends to concentrate on basil and alfalfa.

Alfalfa is known to serve as a potent instrument in increasing the nitrogen content of the notoriously nutrientpoor desert soil. It thus contributes to the long-term building of a valuable humus top-soil cover.

The small community of workers and planners has started work on the farm with renewed vigour and motivation and set itself new priorities. A major focus in the future will be on the greater mechanization of the cultivation and harvesting processes. This development is led by Wolfgang Schulz. Together with Simon Merckens and the mechanics on the site, they have worked hard in recent months to bring all tractors, generators, chamomile and leaf harvesters, who had taken on rust during their involuntary break from work, back on track. The first leaves of parsley and cilantro could now be harvested in early January and were shipped to a nearby processing plant belonging to Lotus Upper Egypt, a company of SEKEM. There they will be dried and further processed. The beginning of the chamomile harvest is expected to begin in February and March.

A second focus of the future development work will be on activities of the cultural and social development in the immediate vicinity of the new farm.

Soraya Abouleish has dedicated herself to this task. She is supported in this endeavour by Arabi and the other co-workers on the farm. An initial success is already perceptible: four coworkers have joined a local nonprofit organization in Minya in August 2011 and have since participated in theatre and an art education courses.

The establishment of a branch of the SEKEM Foundation for Development (SDF) is also in progress. It is supposed to give as many people as possible in

62 sheep are currently reared on the SEKEM farm in Minya.

the vicinity of the premises access to cultural training and social engagement programmes. At the moment, a eurythmy teacher and a painting instructor from the SEKEM School are visiting the Minya farm for two weeks.

They have put together a popular programme in eurythmy, drawing, and other seminars for the co-workers.

The third focus will be on the integration of livestock into the life and work on the farm. Livestock breeding is a central component of demeter agriculture completing the integrated organism of the farmstead. Two camels - Casimir and Chamomile - have already settled in well. They also seem to have taken on a certain parenting role for the 62 sheep that are also presently raised on the grounds.

Since the re-launch of life and work on the Minya site, many friends and supporters from Egypt and Europe have visited the local team. They rarely stay for long, but are an important addition to the life of the farm’s current inhabitants. They encourage all co-workers time and again to continue their mission to take the momentum of the “SEKEM idea” and make it strike roots in this quite different part of what is still the same country. The visits of so many supporters are a great sign of sympathy and the SEKEM Minya staff wishes to thank everyone for all forms of help they are providing.

Soraya Abouleish, Philipp Maximilian Boes Soraya and her husband Philip Maximilian Abouleish Boes live on the Minya farm and are in charge of desert greening projects and community development

SEKEM Insight | Februar 2012 | Page 2

Culture

SEKEM Group Reworks Code of Conduct The SEKEM group of companies introduced a code of ethical conduct in 2009.

The document has now been revised and its signature is mandatory for all employees. Our article summarizes the concept behind its introduction.

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alues must ​​ be embodied by leadership personalities within any organisation or institution to become a living part of its organisational or corporate culture. However, it is always helpful to summarize in writing the conceptual core of specifically such a large and astonishingly diverse organization as SEKEM. This process of formalisation makes it easier for co-workers, partners, and clients to understand what an initiative intends to stand for - ideally and ethically. SEKEM has now revised its code of ethical behaviour (Code of Conduct) that had originally been released in 2009. Signature of the document is now mandatory for all employees.

Solid Basis for Training and Leadership SEKEM’s code of conduct summarizes the core values that ​​ are of particular importance to the initiative. It makes reference to the SEKEM vision for sustainable development, the ten principles of the UN Global Compact, several other relevant conventions of the United Nations and International Labour Organization as well as the International Declaration of Human Rights. The text formulates voluntary commitments by SEKEM regarding regulatory compliance, business ethics, the fight against corruption, labour standards, human rights, and environmental protection. Implementation and compliance is monitored by a dedicated, independent officer within the SEKEM group of companies.

Beyond the social institutions such as the co-workers forums with Dr. Ibrahim Abouleish the revised instrument now provides for a formal and structured basis for the communication of the values that coin life at

SEKEM. They are not supposed to replace the interpersonal encounter and discourse among co-workers and senior members of staff, but rather complement it. The new code improves clarity in these matters for everyone at SEKEM. In addition, the code creates an efficient system of assessment and introduces mechanisms to be activated in case of non-compliance.

Code Complements Annual Reports The code of conduct will now supplement the existing sustainability reports that SEKEM already produces on an annual basis. SEKEM thereby intends to continue its chosen course of gradual professionalisation which relies on the clear and understandable communication of those values that ​​ were previously implicitly but have always been a vital constituent of the culture of work and life at the initiative.

The code is designed to help individual co-workers in taking on more responsibility and to ensure sustainability in cases where it can or should no longer be exemplified by a small group of leadership personalities for example as a result of the organisation’s strong growth.

Code Follows International Trend The new document also provides a means of identification and self-conscious representation. It reflects a development that has increasingly become an international standard.

Many large companies employ such codes and sustainability reports to improve their operations. Therefore, it is important that SEKEM as a pioneer in many fields makes its commitment visible to its members and the public.

Magdalena Kloibhofer

Helmy Abouleish Attends SOAAN-Launch Meeting

With his participation in the launch meeting of the Sustainable Organic Agriculture Action Network (SOAAN) Helmy Abouleish has kicked off SEKEM’s engagement in the new initiative. SOAAN exists to develop a reference and program that positions organic agriculture and its related supply chains as a holistic, sustainable approach to the production of food and fiber for all of human society.

Working together as an alliance of likeminded organizations, members can use the SOAAN’s outputs to jointly and individually impact the world’s practices around the production and consumption of agricultural products.

Through these efforts, good organic production shall become a real and significant institutional alternative to conventional agriculture and its related policies, and members be seen as increasingly desirable partners.

The scope of the SOAAN’s work encompasses all aspects of agricultural production and downstream product supply chains, centering around the products themselves, but also taking into consideration the infrastructure on which their production, distribution, and consumption depends. In addition to these ecological aspects, the human aspect of all of these interactions is taken into consideration.

Tangible products of the SOAAN’s work may means and materials with which leaders in the organic movement can strategically position organic agriculture and the organic movement as having a critical and central role in world ecological stewardship, economic, and social development; Quelle: SOAAN

SEKEM Insight | Februar 2012 | Page 3

Economy

Business Development of the SEKEM Group of Companies in 2011 Sales (consolidated)

217 Mio. EGP

2010

209 Mio. EGP

2011

The fiscal year 2011 resulted in a slight reduction of the total consolidated sales of the SEKEM group from 217 million to 209 million EGP. The main reason is to be found in the Egyptian general economic crisis that the country has seen since the uprising in early 2011. However, especially the fourth quarter in 2011 again shows a positive trend.

Shares of Sales (Domestic vs. Foreign)

2010

75%

2011

25%

70%

30% Lokal

Export

SEKEM has managed to increase the share of exports in total sales in 2011 from 25% to 30%. This strategy aims to provide group’s companies with an additional market somewhat more independent from the Egyptian one to allow it to better absorb shocks from economic crises. The positive numbers from Naturetex, that are mostly due to strong exports, specifically underline the success of this strategy.

Shares of Sales (by product category)

17%

15%

Farming

17%

Pharma

51%

Textiles

FMCG

Fast Moving Consumer Goods (FMCG) remain the core business of SEKEM and account for 51% of the total revenue mix in 2011. They mainly include food from organic farming. SEKEM agriculture (17%), natural textiles (17%) and the pharmaceutical sector (15%) all account for approximately equal shares in the mix.

SEKEM Insight | Februar 2012 | Page 4

Impressions

Impressions from SEKEM

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gain this year SEKEM will exhibit at BioFach, the largest organic trade fair in Germany. As in previous years, the state SEKEM booth will be part of the common Demeter Group exhibition. You can find it 15-18. February in Hall 7, Booth 111.

Helmy Abouleish will also speak at the BioFach in the framework of several talks. Firstly, he will speak at the sustainability forum on „Developing Organic Agriculture‘s Leadership in Sustainability“, on „100% Organic is the Best Agricultural System: Internalizing external costs related to water pollution, CO2 emissions and soil erosion”. Then, he will also speak on the reshaping of the economics of the global food industry in his talk on “‘Organic Plus’ is the most competitive option”. He will also present SEKEM at a separate event.

BioFach is a professional trade fair and aimed primarily at employees of the organic food market in Europe.

SEKEM Insight | Februar 2012 | Page 5

News in Brief

Demeter Congratulates 15th Prize Winner

Online Biodynamic Course Ready to Go Live

SEKEM Scandinavia Begins Marketing New Product

The twelfth Award for Organic Farming by the Federal Ministry for Agriculture in Germany has recently been awarded at the International Green Week in Berlin. For the demeter community of biodynamic farmers the award that went to the Obergrashof in Dachau (Bavaria) was already the 15th prize to claim. „This is testament to the broad social appreciation of the exemplary performance of biodynamic farmers, gardeners and growers,“ proudly comments Stephan Illi, member of the board of demeter.

The UK Biodynamic Association (BDA) has announced the launch of the first ever online, fully accredited distance learning course in biodynamic agriculture. The programme, “Biodynamic Agriculture – Principles and Practices”, has been developed by the BDA’s Biodynamic Agricultural College (BDAC).

SEKEM Scandinavia, the Scandi­ navian association in support of SEKEM that is also commercially active in the local marketing of products produced by SEKEM, is in the process of introducing an innovative new product. Produced by SEKEM’s company Naturetex the “SeaCell” towel is made ​​from cotton and cellulose fibre into which algae and silver have been woven. This treatment renders the fibre that bears the name “SeaWash” antibacterial without the use of any chemicals and makes it particularly suitable to sensitive skin. The algae promote the regeneration of cells, stimulate blood circulation, and have an anti-inflammatory and antipruritic effect, says the manufacturer of the fibre. „The Lyocell technology that forms the basis for SeaCell is environmentally friendly. It is not cytotoxic and does not cause allergic reactions.

In fact, SeaCell pure has been granted the Eco label for environmental excellence”, the producer adds.

The two managers of the Obergrashof, Julian Jacobs and Peter Stinshoff, began their work in 1992 with only five acres and three employees. Today, the two manage 30 employees and 110 acres of surface area. Still, the team has managed to stay true to the philosophy of demeter and to develop a truly versatile organism of a farm. „Organic farming and biodynamic agriculture in particular are two approaches to agriculture that we do not perceive as complete sets of ‘methodologies’, but rather as lifelong processes, as one continuous joint development of the ‘dialogue’ between soil, plants, animals and the people caring for them“, the two emphasize.

Both farmers say their enthusiasm to further develop their ideas in organic farming is greatly encouraged by the award of the prize. They aim to use the prize money to expand their public relations.

Arjen Huese, one of BDAC’s course leaders, wrote the course together with other staff in response to an increasing demand for an online course building on the experience and success of the courses BDAC has been running for over the last ten years, the Association said in a statement.

“It became evident to us all at BDAC that an online course in biodynamics is a great way to reach more people and spread the insights in biodynamic methods to farmers, gardeners and all people interested in sustainable food production,” Huese said.

More information: http://www.demeter.de

Source: Manufacturer

Going live in January 2012 with the first “Introduction to Biodynamic Agriculture” module, ten modules will be rolled out in total over the following two years.

According to the BDA, the modules feature a wide range of topics including composting, astronomy, etheric formative forces and community supported agriculture. Each module runs for three months and includes eight lessons each with a video and detailed lecture on the subject.

Source: NNA

Source: Demeter e.V.

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The product will be marketed by SEKEM Scandinavia under the name „Arctic Queen“ and will be first presented at the BioFach in Nuremberg in February (see our post on the previous page).

Masthead: The editors of SEKEM Insight wish to thank all contributors to this issue.

Editor: Bijan Kafi Contact: SEKEM-Insight c/o SEKEM Holding P.O.Box 2834, El Horreya, Heliopolis, Cairo, Egypt insight@SEKEM.com Pictures: Page 1, 2: Philipp Maximilian Boes; 5: Bijan Kafi.

No republication without written consent by the publisher.

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More information: http://www.bdacollege.org.uk

SEKEM Insight | Februar 2012 | Page 6