For Larry Jacobs and his wife, Sandra Belin, it began almost 30 years ago with business plan handwritten on a half a sheet of paper. “We’ve got a few ideas that we’d like to share with you if you’re interested . . .” Jacobs told a group of farmers on Mexico’s Baja Peninsula, “…these could be things that drive change in your community for you to build on the skills you already have.”
The skills the Mexicans had were agricultural, what they lacked was a market. Jacobs and Belin proposed forming a co-op, so small family farms could benefit from economies of scale in the distribution and processing of vegetables. They called it Del Cabo, and that company now ships millions of pounds of fruits and vegetables into North America every year.
Larry Jacobs began his life in agriculture as the owner of a small nursery in southern California. He studied soil science at California Polytechnic and eventually ended up in Maine, where he met his wife Sandra. After a trip to Guatemala they hit on the realization that commercial agriculture could be used to promote social change by empowering small growers, particularly in areas where family incomes are low. Returning to California they started Jacobs Farm, which has become one of the largest producers of organic vegetables in California, and a few years later the Del Cabo Co-op in Mexico. They were young, wanted to change the world and decided to do it by using free enterprise.
“The way to do this is through a business,” Jacobs thought at the time. It was a somewhat controversial idea in an era where NGOs and charities gave out grants with few benchmarks set for success. The Del Cabo model was different, says Jacobs.
“Create a business that has these kind of values, and the business is sustainable. Use the profits from the business. Roll those profits back into it year after year and use those profits to expand, or reach more families.”
By banding together Mexican farmers were able to take advantage of economies of scale, lowering input costs. By pooling production Jacob’s Farm had a more reliable supply of vegetables which in turn allowed them to expand distribution in the United States. Larry and Sandra began teaching farmers how to grow crops organically focusing on increasing soil organic matter, growing cover crops and creating more plant species diversity in each field to increase populations of beneficial insects. And maybe most importantly when choosing what varieties to grow their focus was flavour, not just yield.
“We still focus on flavour…” Larry says, “…though yield is critical to success.”
So far they’ve reached hundreds of Mexican families who farm small land holdings, feeding the needs of the Dell Cabo co-op and in the process feeding themselves. Like any business the whole thing has to be financially viable. And since it’s inception in 1986 Del Cabo has never stopped growing.
Jacobs and Belin are examples of people who over the years have blended their work life and social values to the point where the two are indistinguishable. But it’s based on business, not just the fuzzy feel good idea of helping people. And some charities have taken notice.
“We’re on the side of a volcano in a broad leaf tropical forest.” said Jacobs on Skype from Tanzania. Three years ago the American couple was asked by World Vision to start a “Del Cabo” type business in Africa.
“We’ve started a company modeled after Del Cabo, with the same mission; increase people’s family income and do it in a way so the environment benefits and people are growing food that’s good for them to eat, tastes good and is not loaded with chemicals.”
There are challenges in the new business, some of them coming from African agronomists who have been trained to use chemicals for weed and pest control. But there are also similarities to the early days of Del Cabo — even in Africa you have to develop your market if you want a sustainable company.
Jacobs and Belin have moved away from the day to day operation of Jacobs Farm and Del Cabo allowing them to live in Africa and help small farmers there. They design their companies around a business model, but even for them there are feel good reasons for what they do, particularly as they grow older.
“Why does anybody do something nice for other people?” Jacobs says. “Because it feels good. It’s personally satisfying. I think we both find it personally satisfying to be doing things . . . that will ultimately reflect in people’s incomes . . . it’s one way to help families that are started in farming. It’s personally satisfying to be doing things that you know are beneficial to other people.”
And it all started with a plan written on half a sheet of paper. The irony is that while being strong proponents of small farms, the companies founded by Jacobs and Belin have grown large. A U.S. hedge fund recently wanted to buy Jacobs Farm. Jacobs knew that eventually the fund would re-sell the company he founded and that there was no guarantee the new owners would be socially responsible. The hedge fund’s bid was rejected.
- Ed Watson