‘Sekem’ means vitality from the sun, the ripples of which have touched people, environment and community in multitude of ways. It is an initiative in Egypt with a vision of sustainable development through economic, social and cultural progress. Operating via an umbrella organization called Sekem Holding, products like natural pharmaceuticals, organic food, and organic textiles are manufactured in a hope to heal the earth and spread prosperity in the country.
Innovation
Sekem was the first company to develop biodynamic farming methods in Egypt. This practice has had a miraculous impact on the soil quality, truly transforming the desert into a worldwide gem of sustainable agriculture and healthy ecosystem. Sekem’s efforts in organic cultivation lead to the conversion of entire Egyptian cotton industry to organic methods.
The vision of contributing toward the comprehensive development of individual, society and environment is manifested through several specialized companies. These companies are subsidiaries of Sekem Holding and enable the production and marketing of its products. All products are sold nationally and internationally with Europe being the major market.
To promote the benefits of natural medicine, Sekem started a company called ATOS which produces phyto-pharmaceuticals. Only biodynamic grown herbs, plants and natural ingredients go into these products. The research and development for these medicines is done at Sekem Academy for Applied Arts and Science.
Another company called ISIS produces organic food and adheres to strict guidelines throughout the production process. Hazard Analysis Critical Control Points (HACCP) is used to control the processes from cultivation to end customer. Similarly, a company called LIBRA produces oils, rice and dried legumes by ownership as well as partnership with the local farms. The network of independent farmers from all over Egypt provides LIBRA with cotton, grains and seeds. On the same lines, a company called LOTUS produces organic herbs and spices from biodynamic plants.
Sekem also manufactures organic cotton through a company called Naturetex. In addition to saving the farmer from pesticides, supporting biodiversity, preserving a healthy soil and balanced ecosystem, organic cotton grown by Sekem is of higher yield and superior quality. Through a partnership with Paul Reinhart AG, Switzerland, a worldwide cotton merchant, Sekem is attempting to expand the areas of biodynamic cotton cultivation in Egypt. Sekem has also collaborated with the Ministry of Agriculture to deploy a new plant protection system and hence reduce the use of pesticides.
To promote biodynamic farming from the initial step, Sekem produces seedlings and grafting seeds through a company called MIZAN. The principle of grafting involves using a vigorous rootstock with high absorbing and transporting capacities to provide the plant with the required water and nutrients. This enables the farmer to produce higher yield at a lower cost.
According to Sekem’s founder Ibrahim Abouleish, cooperation is essential for making a lasting difference. Thus, there is a strong thrust on establishing partnerships and associations for information, resources and support. ‘Farmers Development Association’ is one such partnership of organic farmers that conducts training schemes in organic farming and health programs in villages. On the same lines, dissemination of biodynamic farming methods to the local farms is done by partnering with Egyptian Biodynamic Association (EBDA). Sekem has leased much of the farm land and provides advisory services to the farms to maintain biodynamic standards. More than 800 farms are now applying the international guidelines for biodynamic agriculture in their farming methods.
Similarly, Sekem was instrumental in forming the ‘International Association of Partnership’ (IAP) to bring together farmers, traders and producers. The members of IAP regularly meet to discuss new ways of cooperation to achieve progress in biodynamic and organic movement. This way Sekem’s partner farms have access to international markets and are ensured a fair prices. Sekem has also established a ‘Center for Organic Agriculture’ which certifies organic products.
Impact
Sekem’s innovations have been pivotal for the development of its employees, for the villages in the local geographic area surrounding Sekem, for the broader Egyptian society and for the environment. The combined annual revenue of all subsidiaries equals $40 million in a country with a per capita GDP of $1200. The overall revenue growth stands at 25% per year. In a region of poverty Sekem’s more than 2000 employees enjoy access to excellent health care, above average wages, general adult education offerings and continued professional development. In a country with a spotty human rights record, all Sekem employees receive rigorous training about their civil rights. The CSE (cooperative of Sekem employees) attends to the personal and professional needs of employees.
The biggest impact of Sekem’s efforts can be seen in the fact that at the start most of Sekem’s medicines and agricultural products were exported. But through consistent efforts Sekem has successfully created awareness within Egypt such that 55% of its sales are now domestic.
Inspiration
Sekem came into being as an effort to provide impetus to Egypt’s economic, social and cultural progress. According to its CEO Helmy Abouleish, comprehensive community development is a part of their business model and adds to the profitability.
Working with the three pronged approach of curing the environment through biodynamic agriculture methods; manufacturing products that meet the consumer’s true needs and marketing and distributing products in partnership with farmers, producers and vendors, Sekem has established an innovative business model for fostering sustainable development.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
