SEKEM Insight 12.10 EN

Nr. 100 - December 2010

Insight

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

Editorial Dear Readers,

SEKEM customers in Egypt and in Europe know that they are promoting human development through every purchase of the initiative’s goods they make. But do they know how that development looks like?

Initiative

Fun

New Clothes

Joining Forces for Rural Development

Slacklinen at the SEKEM School

ISIS Reworks Sesame Bars

Joining Forces for Rural Development in Egypt SEKEM promotes the social initiative of their suppliers. The Farmers Development Association (FDA) is a successful example of small-scale activism with big impact.

SEKEM does not only realise development projects itself and supported by international aid.

The organisation also supports the work of its partners in indirect ways by focusing on furthering individual initiative and entrepreneurship. Such activities are not always implemented through large projects in cooperation with local and international partners but also small-scale actions with the hundreds of farmers who supply SEKEM with their organic products.

Its daily business practice already gives SEKEM effective tools such as the fairtrade premium that are used to boost human development in remote places. In this issue we introduce you to one of these initiatives in which individuals have joined forces to improve livelihoods in their community.

SEKEM Insight will highlight other projects from the diverse portfolio of initiatives supported by SEKEM in greater detail in future issues.

Your Team of Editors

New looks: the farmers of the Farmers Development Association (FDA), a farmers cooperative engaging in local development, proudly wear their new uniforms.

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arek Mohamed Moustafa, a demeter farmer from Kom el Ahmer in Qaliubiya, one of the Northern governorates of Egypt, says he never regretted to join the association he helped found several years ago. „Since the FDA (Farmers’ Development Association) built the tailoring workshop at my farm and trained the young women from the village they have started to make clothes and sell them.

They are now able to improve their livelihoods and provide an additional

income to their families.”, he says smiling.

Tarek has been working for and with SEKEM for many years supplying a large variety of herbs, cereals, and vegetables. Now he is happy that the families in his village have another source of income besides the work he can provide through his farm. Plus, he is proud that the organic herbs and the cotton from his farm are sold in Europe bearing the fairtrade seal.

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Economy

Together with a group of other organic farmers Tarek founded the FDA 6 years ago and in 2005 received certification by FLO-Cert, the Fairtrade Labelling Organization. Today the group has 60 full and 124 associate members. Since their certification they have been able to sell a portion of their products including various varieties of herbs, vegetables, rice, cotton, and sesame under the fairtrade seal.

Rigorous standards The distinctive green and black seal enjoys strong awareness among consumers in Europe and the United States. However, only few of them are aware of the impact their purchases have on the livelihoods of farmers.

FLO-Cert implements a set of rigorous criteria for the production and trade of each individual product.

These standards encompass precise rules prescribing minimum wages, the exclusion of any form of discrimination, or the protection of basic rights of all people involved in the production chain. Minimum prices for the farmers are fixed by the fairtrade standards and all traders of certified products are themselves certified through annual inspection visits.

A core feature of the fairtrade criteria is the so-called “fairtrade premium”. This surcharge on any individual product’s price serves as an extra payment from the customer to the producers within the fairtrade system and is intended to act as a tool for local socio-economic development. While the fairtrade standards do not prescribe how producers must make use of the premium they stipulate that the project selection process and the management of the premium monies must be made through transparent, participative, and democratic processes.

The members of the FDA regularly meet to decide which development projects they wish to finance with the premiums they expect to receive. The board of the association is responsible for their purposeful implementation.

Apart from the tailoring workshop the FDA carried out a number of projects during the past year that were all intended to respond to the most pressing local problems identified by its members: access to public health care (specifically for Hepatitis C and kidney-related illnesses), literacy courses, awareness raising programmes in personal and community hygiene and its relation to related illnesses.

The FDA has also developed a literacy training programme to facilitate the provision of basic health care services also involving outreach campaigns. The programme has been carried out on all member farms and is since receiving regular updates to sustain awareness levels. Planned future projects include the construction of a drainage pit and a treatment plant to improve the provision of clean drinking water. In general these projects will aim at improving awareness on public health issues, and on environmental pollution and conservation.

We can do it by ourselves “All our efforts have lead to very positive development on the farms of our members.”, says Tarek Mostafa. “But most importantly, they have made many of us more conscious of our social and natural environments. We now understand that it is within our own ability to change the situation in our communities. We do not have to wait for anybody else.”

Other projects financed through fairtrade premiums by Libra Cultivation, another SEKEM firm working on largescale farms, include literacy and computer courses, measures to improve employee safety on their way home, or the establishment of an employee library. The diversity of these social projects demonstrate the tremendous impact consumers can have on human development by choosing fairtrade products.

Christina Boecker

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More information: http://www.fairtrade.net

Studies on Mistletoe Therapy Show Positive Impact Several decades ago already Dr. Hans Werner, a German doctor and long-standing SEKEM friend, had initiated a cooperation between the pharmaceutical companies Atos (Egypt) and Abnoba (Germany). The cooperation was launched through a small study in 2004 involving 30 cases of liver cancer in Egypt and carried out by the University of Mansoura. It resulted in strong evidence for an efficient application of the mistletoe-based medication Abnobaviscum Fraxini in cases of liver cancer with Egyptian patients.

Inspired by these results another study involving 120 patients again carried out by the University of Mansoura was recently completed and first results are now available. They confirm the evidence gathered already in 2004, summarised by Professor Mohamed A. Ebrahim of the University of Mansoura: „On the basis of the study’s results we have come to the conclusion that treatment with Abnobaviscum Fraxini serves as an effective and safe treatment for patients in advanced stages of liver cancer“.

After many years after the first scientific collaboration the renewed cooperation among SEKEM’s Atos and Abnoba has thus lead to additional insights into the impact of a therapy that ask for further research. Another joint study on bladder cancer is set to be completed in 2011. Both bladder and liver cancers are among the most prevalent cases of cancer in Egypt motivating the interest of SEKEM’s pharmaceutical venture Atos in developing alternative approaches to their successful treatment.

The cooperation is foreseen to continue in the future.

Christina Boecker

You can visit SEKEM yourself: www.SEKEM-reisen.de www.aventarra.de SEKEM Insight | December 2010 | Page 2

Culture

Popular Sesame Bars Get New Look

Slacklining Popular With SEKEM Schoolchildren

The popular sesame bars being sold in Egypt and abroad have recently received a new look - and are being accepted exceptionally well by consumers.

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ast November the sales team at ISIS began with the relaunch of its renowned sesame bars on the Egyptian market. The new line of products sports a new, colourful, appealing design. The product ranks among the most well known food products in ISIS’ portfolio in Egypt and the bars are also being sold in Europe through SEKEM’s European subsidiary based in Bochum, Germany.

Different background colours of the new packaging material now make it easier for customers to quickly identify the varieties of the product on market shelves. An enlarged image of the flavouring ingredient also makes identification easier when strolling the aisles of Egyptian supermarkets the shelves of which are usually brightly decorated, and normally filled with colourfully presented and aggressively marketed products in high-gloss packaging.

Besides ensuring that the new products do not get lost in the crowd of their competitors the new design also more clearly underlines the unique

selling point of the product’s certification according to organic standards.

With the new products ISIS has also for the first time approached pharmacies as unique points of sale. SEKEM’s sales teams have successfully used this channel for the marketing of pharmaceutical products and nutritional supplements as well as ISIS’ honey.

To support the new efforts various ads have also been placed in pharmacy magazines that are commonly read by the health-conscious, affluent Egyptian consumer.

The re-launch of the well-known sesame products has already led to a remarkable doubling of their sales in the short term. But for the ISIS marketing team that is only the beginning: „I still see a lot of potential for the sale of this unique product in all its varieties.

After all, it is one of our most popular products.”, said Lamyaa Farouk, junior marketing manager at ISIS. In Europe, the sesame bars are available for purchase via the SEKEM webshop and through organic food stores.

Christina Boecker

In Germany the new sport has been a familiar sight in parks for a few years already: a loose rope stretched between two trees and people performing various acrobatic exercises on it. The name „slackline“ refers to the rope that is being used as the only tool. As with climbing exercising on the rope trains ones motor and mental abilities at the same time.

Whether it is played in Europe or Egypt, the rope immediately attracts curious passers-by and almost all a give it a try, particularly children. What looks easy from afar actually requires strength, concentration, and substantial practice. The new sport not only is a good way to spend your leisure time - it also encourages personal encounters. Specifically during the early steps at least two people have to assist.

The German company Slackline Tools has now helped the SEKEM School in making the fun sport available to its children. With great enthusiasm the pupils immediately rushed to try it out as soon as the equipment arrived. Many were surprised by the challenge it posed and helped each other out. And most importantly: they are greatly enjoying experiencing their physical abilities in a completely new way.

Martin Haagen

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More information: http://www.slackline-tools.de

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Impressions

Impressions from SEKEM

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n 25 November the 33. SEKEM Annual Festival took place at the SEKEM farm’s Roman theatre open to all employees, students, clients, and friends of the initiative. A major focus this year was a on the report by Helmy Abouleish on progress on the new SEKEM farms in the Sinai desert, the oasis Bahareya, and Minya. Helmy outlined the hugely positive effects that biodynamic agriculture could have on the improvement of the food security of North Africa and of the world. Through his description he allowed all SEKEM employees to understand better the greater context of their work and the impact their efforts have both in the country and abroad. The employees of the new farms who had this time been invited to participate enjoyed getting to know their colleagues better. According to tradition the contribution of SEKEM co-workers of over 7 years were recognised through a formal ceremony. The performance of a folk dance group performing traditional dances representing the various cultures of Egypt concluded the event.

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News in Brief

Falk Zientz Honoured as Social Entrepreneur

17 Million Euro Annually for the Analysis and Control of Pesticide Use

As part of the ceremony of the “German Sustainability Award 2010” the Council for Sustainable Development honoured Falk Zientz, head of the microfinance department at the GLS Bank as „Social Entrepreneur of Sustainability 2010“.

The initiator of the micro credit fund for Germany and the manager of the department of microfinance at the bank was awarded the title for his exemplary and pioneering entrepreneurial achievements.

According to Greenpeace analysis and control of pesticide use in food and ground water costs the German taxpayer 17 million Euro annually. As the organic food association Naturland warns the country should make greater efforts to stop the further spiralling out of control of costs to the consumer largely incurred by the spread of agrobiotechnology in Europe. Naturland further states that dismissing entirely the employment of synthetic chemical pesticides as well as of agricultural genetic engineering technologies would be the optimal development as far as the environment and the consumers are concerned. „Organic farming methods need no heavily polluting methods of mass food production and still produce high quality products,“ said Hans Hohenester, organic farmer and Naturland chairman of the board.

The Council honoured Zientz’ successful “development and implementation of a sustainable micro-credit business in Germany”. Earlier this year the Federal Government of Germany had charged the GLS Bank with the expansion of the model developed earlier and had provided 100 million Euro together with the European Social Fund for local micro-loans.

According to the laudator and vice chairman of the Sustainability Council Marlehn Thieme the work of Falk Zientz brings back to the financial industry something it seemed to have already lost in recent years: trust and human relation.

The advisory board of the Federal Government of Germany has been offered the prize for the second time this year. Through the award the Sustainability Council underlines the insight that development in sustainable economics flourish to a great extent on the ideas and the commitment coming from the centre of society. Criteria for their awarding of the prize include the potential for systemic effects in the fields of activity of the German sustainability strategy and the pioneering nature of the successes achieved for sustainable development in Germany.

Source: GLS Bank

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More information: http://gls.li/social

80 percent of consumers in Germany reject the use of genetically modified organisms (GMO) in food. The commercial cultivation of the GM-maize MON 810, a product by agricultural firm Monsanto, is currently prohibited by the Federal Ministry of Agriculture (BMELV) due to security concerns. The cultivation of the GM-potato Amflora has been approved and it has been cultivated in Germany for the first time this year. Nevertheless, part of its harvest had to be destroyed because the danger of its intermixture with the non-EU approved GM-potato Amadea could not be excluded according to Minister for Agriculture Till Backhaus.

Still, all processors producing GM-free foods have to carry out GMO analyses to ensure non-contamination of their raw materials. Customers want the assurance that no mixing with GMO products could have taken place at any point in the supply chain. All suppliers of organic raw materials must also be able to produce test results certifying that they, too, have carried out the appropriate analyses. Should the cultivation of GMO plants be extended

costs may spiral out of control for all partners along the organic value chain. Depending on the analysis type and laboratory costs can be up to 150 Euro per sample with another 150 Euro being incurred in case further analysis is needed.

However, no inspection or analysis would be needed in case of a full conversion of conventional to organic agricultural production. The costintensive treatment of drinking water to minimize the amount of pesticides and nitrates could also be omitted.

These so-called external costs are currently borne by taxpayers and do not enter into price calculations of food producers. Naturland demands that marketers and users of pesticides and agro-genetic engineering technologies are required to bear these costs.

Naturland promotes organic agriculture worldwide and with over 55,000 farmers and more than 500 manufacturers as partners is one of the country‘s largest ecological associations.

Source: Eco-World.de

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More information: http://www.eco-world.de

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

Editors: Christina Boecker Bijan Kafi Contact: SEKEM-Insight c/o SEKEM Holding P.O.Box 2834, El Horreya, Heliopolis, Cairo, Egypt insight@SEKEM.com Pictures: 1,4: SEKEM; 3: Martin Haagen No republication without written consent by the publisher.

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