Improving access to quality local rice

Businesses such as Estevao’s are sustainably dealing with the increasing demand of staple foods in Timor-Leste

July 2, 2018

Since starting his business in August 2017, Estevao has been very successful

Most of the rice we consume in Timor-Leste is imported. This makes it expensive for local families and unfavorable to local rice farmers…” Estevao, 22, a businessman from Dili.

In Timor-Leste, rice makes up a large proportion of total imports. Due to the growing population and popularity of rice as a staple food, the cost of local rice is more expensive. Estevao knows that the distribution of rice in Timor-Leste is commonly not beneficial for farmers.

Local rice supplies grown in municipalities is hard to find in supermarkets in Dili which means that buying imported rice is usually preferenced. Small rice farms in Timor-Leste therefore suffer an economic disadvantage compared with larger international companies.  

Access to the economy for rural farmers and producers is difficult. A lot of farmers focus on managing their own profits. I think it is necessary for communities to branch out. To develop business models, make stocks available, negotiate prices and work with different supermarkets,’ he says.

Estevao wanted to find a way to link rice farmers in the municipality, Viqueque, with the formal markets in Dili. The Knua Juventude Fila-Liman (KJFL)e, a one-stop-shop supporting youth-entrepreneurship, has played a large role in helping Estevao develop his business. Estevao’s business supplies rice from Viqueque to the capital, Dili. With the assistance of the business trainers at the Knua Centre, Estevao was able to map out his supply chain, find contacts to supply his product to different supermarkets, and complete his business registration. The aim of his business was to help local communities generate an income and build the capacity of the farmers in Viqueque.

Since starting his business in August 2017, Estevao has been very successful. His products are now supplied to nine different supermarkets in Dili. Estevao wants to increase this number and is working to decrease the costs of transportation, so that more rice can be transported from Viqueque to Dili. Estevao has also helped build the capacity of local rice farmers. Now, farmers are generating income from their hard work. They are also learning about profit-management and developing their financial resource capacities.

 ‘My plan is to have a community training in Viqueque where I can show the community how to improve rice production, which will enable more rice of higher quality,’ he says.

Business’ such as Estevao’s are sustainably dealing with the increasing demand of staple-foods in Timor-Leste. His business contributes to strengthening the local capacity of farmers to participate in the formal economy, thereby increasing their income. By increasing the income of rural workers, Estevao is increasing rural livelihoods. The support of UNDP and the Knua Juventude Fila Liman Centre, to enable youth entrepreneurship, contributes towards Timor-Leste’s progress in reaching the projected 2030 Sustainable Development Goals.