Trade Success No.19: HavaMad - The EPA promoting the development of sustainable, fair trade and inclusive production in Madagascar

"Trade Success" is a series about stories of entrepreneurs who benefit from the Economic Partnership Agreement (EPA) between the European Union (EU) and signatory countries of the Eastern and Southern Africa (ESA) region. In this 19th issue, we are pleased to introduce to you HavaMad, a company based in Madagascar, promoting the development of sustainable, fair trade and inclusive production in Madagascar.

Madagascar is gifted with soils and a climate that are naturally conducive to the production of high-quality fruits. These same characteristics give the fruit a unique flavour and aromatic notes, which enjoy a prime position on the international market. Based on this, HavaMad selects the best fruit from Malagasy growers for the production of its juices and purées. 

Key facts about HavaMad:

  • Founded in 2013 in Madagascar.
  • From 1 employee when it was set up, the company employs 50 people in 2023.
  • Exports pineapple, lychee, ginger and passion fruit juice, as well as mango and soursop purées.
  • 85% of its exports goes to the EU, while 15% of the products are sold in Madagascar, Mauritius and the United States of America.
  • The main export destinations in the European Union are the Netherlands, Germany, France, Spain and Poland.
  • The majority of certified organic production is exported to the EU.
  • HavaMad has benefitted from the exemption of customs duties for products exported to the EU since its creation.

Company profile:

Founded in 2013, HavaMad is an agri-food company specializing in the design, processing and marketing of organic fruit juices and purées from Madagascar. The raw materials is sourced directly from small producers, grouped together in cooperatives. HavaMad imports its packaging, spare parts and various materials from the EU under the interim Economic Partnership Agreement (EPA).

The company ensures that its producers are fairly remunerated for their work within the framework of a direct and transparent relationship, in order to contribute to the development of fair trade and solidarity. This enables producers and their families to make a decent living from their work and look to the future with peace of mind.  

HavaMad has succeeded in connecting small Malagasy producers with international markets thanks to their quality products, which have received quality labels by independent certification bodies such as Organic, Fair Trade, FSSC 22000 and Kosher. Through contract farming[1], the company contributes to the social and economic development of the producer communities in Madagascar.

Training service for a sustainable supply:

Ensuring a sustainable supply of raw materials remains a challenge in Madagascar, particularly in the fruit sector. HavaMad's partner producers operate in a complex rural context, which makes it difficult for them to maintain a supply in terms of quantity and quality. The majority of these producers are family farmers with plots of between 0.5 and 3.5 hectares. The lack of infrastructure, poor access to services and limited technical support in rural areas restrict the adaptation of their practices to the growing demands of international markets. To ensure a secure, responsible and sustainable supply, HavaMad is committed to supporting its producers.

Between 2016 and 2019, HavaMad partnered with the Gezamenlijk Inschatten Zorgbehoeften (GIZ) within the "Promotion of sustainable supply in the fruit sector" project to set up a support service dedicated to the professionalization of producers and cooperatives. A team of 9 field agents devote 25% of their time to training and support to:

  • the producers:

o Contractual commitment: raising producers' awareness of the terms of the contract, hygiene standards, traceability, quality and organic certification.

o Good agricultural practices: training producers in production techniques and helping them to adopt good practices.

o Social aspects: producers are made aware of social standards through a charter. A health insurance service is offered to all producers.

  • the cooperatives:

o Cooperative management: training cooperative board members to improve their financial management and governance.

Main achievements over the years:

  • A member of the VISEO Group, a Malagasy business group that is also socially committed through the VISEO Foundation, which focuses on health, children's education and culture.
  • The company is certified by independent certification bodies, namely: Organic, Fair Trade, FSSC 22000 and Kosher.
  • With the support of the Fit For Market SPS programme, the company has benefited from the visit of an expert from Reunion Island and a Malagasy expert from the Tamatave Horticultural Technical Centre (CTHT) in order to revise its technical itinerary for the production of passion fruit and set up an itinerary for bananas, as well as support for fair trade certification.

How did the EPA help?

The development of the EPA over time has been an opportunity to establish a degree of reciprocity in trade between the partner countries, which today enables us to import our packaging (bottles, closures, aseptic drums and bags), spare parts and various equipment from the EU, benefiting from preferential customs duties.

“The EPA enables exporting companies in Madagascar to benefit from preferential access to the European market as compared with other countries where competitors do not enjoy this advantage. The EPA also allows us to import our packaging, spare parts and other equipment from the EU at preferential customs rates.”

HavaMad

Adrien Jacque, Managing Director and Co-founder

Havamad Culture Ananas

 

People HavaMad

Ananas Culture

 

Juice HavaMad

Certifications  HavaMad

[1] Contract farming is a system of agricultural production based on commercial agreements between buyers in the agri-food industry and farmers and other agricultural operators.