What is an agroecological enterprise (AEE)
Agroecological enterprises (AEEs) aim to operate in line with the 13 principles of agroecology, seeking to regenerate rather than degrade soils, biodiversity, climate, water and health.
They also contribute to:
- local economies (incomes, job opportunities, tax revenue and value generation)
- healthy diets (availability and access to local, diverse, safe and nutritious food)
- territorial markets (that are local, resilient and circular)
- resilience and sustainability (of communities and economies).
The Alliance for Food Sovereignty in Africa (AFSA) uses the following criteria to select AEEs to work with:
- Adhering to at least six of agroecology’s 13 principles
- Conducting business for at least one year
- Some form of official registration, lowest village/sub-county/district level
- Annual revenue of at least USD 8,000 before tax.
An AFSA study from 2021 found that AEEs in Africa “have in common an approach to agricultural production that privileges natural processes, local knowledge, seeds and crops, and in which farming and the pursuit of food and nutrition security constitutes part of a larger socio-ecological process underpinned by a commitment to sustainability.”
Despite agroecological enterprises facing multiple challenges and disadvantages, research shows (see resources below) that there is a large and diverse set of AEEs all over Africa.
However, the environment for agroecological enterprises is still difficult (read more in the section on what support AEEs need) and therefore the reality is that many are not yet adhering to all 13 principles.
In 2023, as part of preparation for the launch of the Neycha Agroecology Accelerator & Fund, Ichuli Consulting conducted a market study on agroecology enterprises in Uganda and Kenya. The report analysed a total of 56 enterprises and presented the following major findings:
- There is a pool of high-potential AEEs across Uganda and Kenya and, even though not all are yet perfectly agroecological, most are in transition.
- The enabling policy environment and business conditions make it difficult for AEEs to operate in line with all 13 principles of agroecology.
- There is a need to strengthen AEEs’ wider influence on their value chains.
- There is suggestive evidence that the AEEs are profitable and scalable.
- AEEs still require capacity building in their business operations.
The full study will be published at a later date.
- No agrochemicals: business activities and/or suppliers encourage production without use of external synthetic inputs, instead relying on and strengthening natural processes and synergies and closing resource cycles (i.e. no use of synthetic pesticides, no regular application of synthetic fertiliser, and reduced use of veterinary drugs such as preventive antibiotics).
- Diversity: business activities and/or suppliers actively protect and work towards increasing natural biodiversity in and around the production area (ranging from crops and animal breeds to land-use diversity at the landscape level) and build on diversity instead of uniformity (e.g. through mixed cropping, hedgerows, biodiversity lanes, crop association and perennial crops).
- Healthy soil: business activities and/or suppliers actively preserve and enhance soil health by explicitly designing for improved biological activity and structure of soil and prevent and protection against soil erosion (e.g. through cover crops, crop rotation, minimal tillage, mulching, composting and agroforestry).
- Animal health: business activities and/or suppliers ensure the highest standards of animal health and welfare during the entire life cycle, with a focus on species-appropriate environments and locally adapted and resilient breeds.
- Healthy diets and strong social values: products and services deliberately contribute to healthy, diversified, seasonally and culturally appropriate diets. Enterprises uphold social values, such as gender equity, youth empowerment, inclusion and cultural identity and tradition.
- Fairness and governance: the business builds relationships in a manner that ensures fairness and participation, for instance by promoting decent work and adequate pay, the right to food and water, and respect for smallholder farmers’ rights. Business practices are designed for the fair treatment of farmers, workers, processors, distributors, traders and consumers.
- Connectivity: the business promotes fair and short distribution networks, as well as proximity and strong relationships between producers and consumers, and focuses on strengthening cooperatives. The business actively seeks and builds relationships with the community members it works with and sources from.
- Holistic approach: the business actively considers undesired consequences and reduces negative environmental and social effects of its production methods or those of its suppliers.
- Red lines*: AEEs do not engage in the following activities:
- Introducing genetically modified organisms (GMOs) and associated genome-editing technologies
- Promoting synthetic fertilisers and pesticides
- Promoting extensive single-cash-crop production (monoculture) at the expense of diversified strategies
- Focusing exclusively on productivity, resulting in the avoidable destruction of vital ecosystems and their services
- Actively promoting regulations or actions that hamper or destroy local and farmer-managed seed systems (e.g. by promoting the intellectual property rights of natural resources, such as through patenting seeds or traits)
- Focusing on the large-scale intensification of animal production (factory farming)
- Excluding or discriminating against women and other marginalised groups
- Focusing exclusively on promoting highly processed, industrially produced foods with low nutrient value
- Promoting extractive raw material production without local value addition
- Promoting approaches that violate rights, including customary rights, and result in the displacement of local populations and/or land and resource grabbing
- Ignoring free, prior and informed consent of affected local communities
- Blocking participation of affected local communities.
*The Agroecology Criteria Tool for Businesses (B-ACT) methodology and framework used by Biovision was a key resource for the development of the Agroecology Finance Assessment Tool by the Agroecology Coalition, which was designed to track funds from donors. Take a look at the peer-reviewed study on the agroecology framework, including a definition and justification for the 10 ‘red lines’ just listed: Measuring agroecology using a methodological framework and a community of practice approach