Trade Success No.21: LECOFRUIT - The EPA promoting the economic and rural development 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 21st issue, we are pleased to introduce to you LECOFRUIT, a company specialising in the sterilisation of vegetables in jars and tins. The company mainly exports extra-fine beans, asparagus, gherkins and artichoke hearts, fresh or tinned, to European markets.

LECOFRUIT is a company specialising in the sterilisation of vegetables in jars and tins. The company mainly exports extra-fine beans, asparagus, gherkins and artichoke hearts, fresh or tinned, to European markets, with the distinctive feature of produce that is hand-picked and packed.

Key facts about LECOFRUIT:

  • LECOFRUIT was founded in 1989 in Madagascar. The company is a member of the BASAN family-owned group founded in 1947.
  • From 50 employees when it was founded, the company employs around 2,900 full-time staff in 2024.
  • The founder of LECOFRUIT is French and has a subsidiary in France which markets and distributes LECOFRUIT products.
  • The main export destinations in the European Union are France, Spain, Germany, Belgium, Romania and the Netherlands.
  • The export market share to the EU is 12,000 tonnes of finished products (equivalent to 38 million sales units).
  • Today LECOFRUIT is one of the world's leading producers of extra-fine green beans, with both conventional and organic (LABEL AB) production.

Company profile:

LECOFRUIT is one of the divisions of the Basan group, one of Madagascar's leading agribusinesses. It is also a responsible and committed player in the country's economic and rural development.

LECOFRUIT's agricultural production is based on a network of 15,000 partner producers and integrated farms. Processing and packaging are carried out at versatile and complementary industrial sites.     

LECOFRUIT establishes healthy, long-term relationships through a contract that pre-finances small equipment and agricultural supplies and guarantees the purchase of crops at a selling price known to the farmer in advance. The company also supports farmers through 550 agricultural extension workers who are responsible for training and disseminating good farming practices.

To ensure good soil fertility and limit erosion in the long term, LECOFRUIT has been committed from the outset to nourishing the soil, in particular through the systematic use of compost, a guarantee of yield and quality for its producers. Each partner farmer produces their own compost, and 150 tonnes of natural compost is therefore used to nourish the soil in Madagascar every year.

The company also received support from Fit For Market (FFM), a programme of the COmmittee Linking Entrepreneurship-Agriculture-Development (COLEAD) funded by the European Union (EU), the Secretariat of the Organisation of African, Caribbean and Pacific States (OEACP) and Agence Française de Développement (AFD). As part of this programme, the company has received three types of support, focusing on improving the fresh produce chain, training in Corporate Social Responsibility (CSR), marketing and sales strategy, and assessment of the High Environmental Value (HVE) standard.

Sustainable, fair and socially responsible production:

Aware of the environmental footprint of its activities, LECOFRUIT takes daily action to minimise its impact. 85% of its employees are trained each year in the rational use of resources. In collaboration with producers and on its farms, the company has planted 275,484 trees in 2023 and 301,980 in 2022. LECOFRUIT has sequestered the equivalent of 2726 tonnes of CO².

LECOFRUIT also pays particular attention to improving the working conditions of its employees by ensuring a healthy and safe working environment while providing training and skills development.

Finally, to improve the living conditions of local communities, 800 kilometres of rural tracks are maintained by the company every year, and several social projects have been set up thanks to funds dedicated to fair trade.

As part of its commitment to society and the environment, LECOFRUIT was awarded a bronze medal in 2022 by EcoVadis, the global benchmark for CSR ratings for companies.

Main achievements over the years:

  • Before the implementation of the EPA in 2012, LECOFRUIT exported 5,000,000 jars to the EU in volume (1986 to 2012) and since the implementation of the EPA in 2012 (2012 to 2024) the company has exported 12,000,000 jars to the EU, an increase of 140%.
  • In addition to LECOFRUIT's successes with its partner producers, who benefit from additional income to supplement their food crops, the company is also a commercial success, notably with:

- 155 ready-to-serve vegetable products on the market;

- A presence in six European countries;

- Distribution of its products to 25 major retail and industrial accounts;

- The world's 2nd largest producer of extra-fine beans, hand-picked and packed;

- Awarded the CSR prize in the 'local and responsible purchasing' category in 2023;

- 6,000 m² of process water recycled each year;

- 75% of waste recycled.

  • More than 577,000 trees planted in 2022 and 2023.

How did the EPA help?

According to LECOFRUIT's Head of Import and Export Logistics, Ms Harentsoa Andrianaivoravelona, the creation of the REX system in Madagascar has enabled LECOFRUIT to dematerialise the EUR 1 certificate of origin under the EPA. This has saved time, reduced the number of errors in documents and reduced paperworks that circulates, enabling customs clearance documents to be completely dematerialised. In addition, the EPA allows LECOFRUIT to benefit to benefit from duty-free on most items imported from the EU.

“The EPA has enabled us to increase our export volumes, which in turn has helped us to grow our business and hire more staff”

LECOFRUIT

Mr. Christophe BERTHOU, Division Director at LECOFRUIT

LECOFRUIT Madagascar 1

LECOFRUIT Madagascar 1