LONXANET DIRECTO S.L.: Sustainability, regional development and social responsibility Antonio García Allut www.lonxanet.com Galicia-Spain
WHAT IS LONXANET DIRECTO S.L? A joint marketing and direct distribution company for ARTISANAL fishing products from Galicia, founded in 2001 DISTRIBUTION FROM FISHERMEN S ASSOCIATIONS TO ANYWHERE IN SPAIN Distributes traditional fishing products from Cedeira and Lira fishermen s associations, principally. Cold transportation Anywhere in Spain within 24 hours TURNOVER AND MAIN SPECIES 60 tons per year 700,000 Euros (2009) Over 45 different species Barnacles Hake Velvet swimming crabs Sole Monk fish Clams Etc.
LONXANET OWNERSHIP STRUCTURE AND COMPANY GOALS OWNERSHIP STRUCTURE 5 Artisanal fishermen's associations (15%) Lonxanet Foundation (51%) 20 small private investors (34%) Cedeira A Coruña Muxia Lira Porto do Son ULTIMATE GOALS OF THE COMPANY Social economy company (no dividends distributed) Profits are returned to the traditional fishermen s communities and associations in the form of: - Projects (made trought Lonxanet Foundation): Environmental Social Educational - Direct support for fishermen and fishermen s associations
WHY WAS IT FOUNDED?: MOTIVATION The company was set up with the desire to correct (solve) the negative impact generated by traditional marketing 1.ECONOMIC AND SOCIAL Fishermen: they obtain a value well below market price for their products 2. AMBIENTAL THE NEGATIVE IMPACT OF TRADITIONAL MARKETING The marine ecosystem and its resources: over-exploitation due to uncertainty and fluctuation of prices at first sale (fresh fish auction). Opaque Market: 3. ON CONSUMER TRUST - Product quality: - Product origin: - Product legality: - Setting a price:
Supply Chain and Value: from the origin to the end consumer 1 Manufacturing systems 2 3 4 Traditional Value Chain vs. Lonxanet Retail Distribution 24 HOURS End consumer Traceability Traditional fishing Traditional fresh fish auctions Restaurants Mercados Industrial fishing Auctions Grandes Superficies Lonxanet Fishmongers Fish farming MERCAMADRID MERCABARNA Wholesalers Retailers Fishmongers Families
HOW WE DO IT: SALES CHANNELS 1. SALE BY TELEPHONE (CALL CENTRE): restaurants, individuals, families, consumer organisations, etc. 3.LONXANET FISHMONGER NETWORK (4) 2. INTERNET-PASARELA DE COMPRA: venta al particular
THE BUSINESS MODEL AND ADDED VALUE ADDED VALUE THROUGH THE BUSINESS MODEL: Exclusive channel of Artisanal Fishing - Quality assurance: quality auditor at source Fast service: direct marketing, cold transport and less than 24 hours Customer Service: home delivery Capillarity: access to any point in Spain and islands Traceability and transparency: source, fishing tackle selectivity, traditional manufacturing system, date of catch Links between producers and consumers: feeb-back Involving traditional fishermen s organisations: five fishermen s associations as shareholders Social Economy: profits for traditional fishing communities
TEMORES DE LAS COFRADÍAS A INTEGRARSE EN LA EMPRESA COMO ACCIONISTAS Escepticismo inicial ante una propuesta externa Incertidumbre ante la respuesta (amenazante) de los intermediarios Resistencia a modificar el sistema después de tanto tiempo Temor al fracaso ante otras cofradías y ante la sociedad (opinión pública) CONFIANZA OPORTUNIDAD PARA REDUCIR LA DEPENDENCIA DE LOS INTERMEDIARIOS EMPRENDER FORTALECER Temor al uso de las nuevas tecnologías. Recursos económicos escasos para invertir en el proyecto. Complejidad formativa.
CÓMO RESPONDIERON UNA VEZ DENTRO DE LONXANET Dificultad para tomar decisiones rápidas: ejemplo la clasificación de productos en lonja Visión del mundo centrada en lo local. Dificultad para responsabilizarse de las incidencias causadas en origen. Actitud centrada en la priorización de búsqueda de beneficios rápidos para las cofradías sin tener en cuenta a la empresa.
Participation of fishermen in territorial development initiatives Why they do not take part Weak fishermen s organisations Subject to public authorities Fragmentation Short-term results Politicisation and personalisms Fear of alliances with third party agents outside the sector Fear of failure and social ridicule Fishermen have a poor selfconcept Resistant to change Why and how they should participate Fishermen have good ideas Building confidence in themselves and in their potential Including fishermen s knowledge in the projects Valuing fishermen as project authors and managers Symmetry in relationships with others and vice versa Make them visible in a positive way Etc.
HOW WE DO IT: Involving fishermen in human projects that pivot on fishing but go beyond Bottom-up processes: from fishermen to association and from there to another actors (civil sector, economic sector, public sector, scientific community, etc Partipitaroy methodologies Working in values: Empathy and active collaboration Fairness Governance Transparency Social inclusion Citizen participation Co-responsibility Sustainability and long-term vision
FISH AND INDUSTRIAL MARKET!!! ARTISANAL FISH S.O S: LONXANET!!! THANKS FOR YOUR ATTENTION