Planeta Orgânico visits Sítio do Moinho

Dick e Angela Thompson, Sítio do Moinho's owners had  Planeta Orgânico em Itaipava, State of Rio de Janeiro,  from where organic products are daily delivered in residences, supermarkets and restaurants. 

In this interview diferent aspects of the organic world are focused, since production to the perspectives of Brazilian organic market. 

Sítio do Moinho was one of the sponsors of 2003 BioFach Conference organic dinner and Mr.and Mrs.Thompson were present in the Business Round promoted by AL-INVEST.

Get to know Sitio do Moinho's ambitions to a near future!

How did the idea of organic production come up?
Dick – When we acquired a piece of land in the Itaipava region, in 1997,  we decided to start growing organic vegetables experimentally. It was an unpretentious start. For 4 years we looked for an area in which we could settle. When we discovered this piece of land, we were enchanted and bought it straight away. This area amounts to 500,000 square meters, 50 hectares, of which 350,000 sq.m. are covered with Atlantic Forest; we are situated in a valley, with woods on one side and cliffs on the other. We have a flat area of 5 hectares and about 2 hectares of hillside on which we also manage to plant, though without irrigation, which makes it a little more difficult.

Mata Atlântica em torno do Sítio do Moinho

When we bought this land, it was love at first sight for the place, precisely because it had such a good, big flat part, and the hills covered with virgin woods. We then built our house and decided to do something to make the “Sítio”, or little farm, self-sufficient. It was at that moment that we started to look for an activity for the land. We did not know if it was suitable for breeding frogs or horses, or growing mushrooms... we hadn’t the faintest idea of what to do. So we asked “Agrosuisse” to carry out an economic feasibility study.
Why Agrosuisse?
DickBecause I had met Werner Eisler, one of the owners, at the time I still worked in the financial market. Some friends suggested I should look him up. Werner came here with Fábio Ramos. In the economic feasibility study they did, they suggested growing vegetables, because of the flat area. I must say that I had no idea of what was involved in growing vegetables, I did not know what transplanting was, what a seedling was, I knew nothing of that. The idea was that growing greens, tubers, vegetables in general could be an interesting business, and that we could make home deliveries because we had a small area and a consumer market close by. All that made sense but did not attract us. Only when they started talking about organic farming did the idea start to interest us.

The land we purchased had already been cultivated by a Frenchman, who had used a lot of pesticides, but the land had been resting for about 7 years; we were told a lot had been produced there. At that time we did not know what it meant to recover the soil, but we were attracted to the idea of producing vegetables in a healthier way.  
AngelaThose were the very first steps; there was a lot of experimenting, a lot of loss, a lot of lab work, until June, 1991, when we decided to make our first delivery. How could we go ahead with the project? Neither of us had any experience in farming. It was then that we asked Fábio Ramos, of Agrosuisse, to find us someone who could be in charge of the technical side. That was when we met Maria Claudia Arueira, who is still with us today and is the technical mainstay of our production.

When did that happen?
AngelaIt must have been in middle of 1990.  We were very much at the beginning, everything was still very difficult, but we said “It’s now or never”. And we went ahead. We started planting beans, offering them to friends, still in a very amateurish way, some vegetables, until we finally made our first home delivery in June, 1991. At that time everything was very rough and simple. We had to generate some income in order to pay the Sítio’s expenses, and the person who made the home delivery of our baskets was our caretaker.

Instead of the trucks we have today, we used a small pick-up truck covered with a white canvas, and I used to drive down with him. I was directly involved in putting the baskets together, took care of harvesting and operations such as cleaning, washing, tying, weighing … and at the time we had no proper scales, it was the beginning of the beginning. I very often drove down before dawn, had breakfast at the restaurant Brazão, climbed onto the back of the car, in order to teach our caretaker the addresses of our clients in Rio.

Dick - For years we started putting the baskets together on Sundays. It was done during the whole of Monday, up to 10, 11 in the evening. We rose at 3:00 a.m. in order to finish the work, adding to the baskets the bunches of greens that had been left in buckets of water, so that they were very fresh when they arrived at the client’s home. It was a lot of hard work to keep up with everything until we got to point we’re at now.
AngelaClaudia and I used to go down before dawn to finish putting the baskets together. Because, just as it is in all start-ups, the team was small, new difficulties every day, also new discoveries, finding out how to go about it, finding solutions to the problems that turned up. It was filling in invoices until dawn, everything by hand, just like all the controls; everything that is automated now was done by hand. It was a huge amount of work, but I think all that was part of the beginning and enabled us to live each part of our business. When you manage to put things in place, you slowly start increasing your project. There was never any direct advertising. Our advertising was word of mouth. It is was a task that was always done with a lot of care, because we think that a job is worth doing well. Quality control in practice is difficult. We see that the choice of products for our clients is a great responsibility. They trust us and leave it up to us to choose what they’re buying, without seeing it. For that reason, we have always been very demanding with regard to the quality of our services. For example, the products are selected individually and separated by size.

When did you start operating with Supermarkets?

Dick  - One day, Jovelina Fonseca appeared in our lives. We had no greenhouse at that time, no cold store, we had no real team and the shed was very simple. In 1991, our house was finished. We made improvements to the shed, though it was still quite simple. We also refurbished Maria Cláudia’s house. All this is to get to 1997, when Jovelina Fonseca turned up at the Sitio; it was she who, together with Cristina Ribeiro, made contact with Jaime Xavier, the director of the Zona Sul Supermarkets. In 1997, Jovelina won herself the merit of being the first supplier of organic products to Zona Sul Supermarkets. She initially spoke to Jaime Xavier. He bet on her and bet on organic products. He thought that it was not just a fad, but a product that was there to stay. Jovelina and Cristina had started the work, which was very similar to our home delivery, very simple, with a small structure. And they started feeling that delivery to stores was becoming impossible. Jovelina wanted Sitio do Moinho to continue that work.  
Angela
-  This was a watershed for the Sítio. Up to then our work was very much like a handicraft. In order to deliver to stores, you must have a certain production volume, you must work fast, you must be efficient, and for all that you would have to have a proper shed.  

Angela Thompson has always been present in every stage of Sitio do Moinho's comercialization

Dick - At that time, in August 1997, we started to make test deliveries at a “Zona Sul” branch, branch 8, that large branch in Ipanema. We delivered 200 units per day, three times a week, Mondays, Wednesdays and Fridays. I can’t remember exactly how soon, but a few months later we were already present in all the branches, making deliveries 6 times a day.

Two years later you were operating with three supermarket chains, weren’t you?
Angela - We started operating with Zona Sul in October 1997. With Extra Supermarkets in 1999, and soon after we included other stores:  Pão de Açúcar, Carrefour, Sendas. We received proposals to supply several stores. At that time we thought that production could rise according to demand. We tried very hard, but this growth in production is not immediate and it’s not so simple. Today we are present in 30 stores and we do not intend to operate with new ones, so that we can continue to offer good service. 

DickAs I was saying before, in two years, we went from a delivery of 600 units per week to 25,000 units per week.

When did that happen?

Dick - Between 1997 and 1999. In view of this demand, we had to recognize the need to be better structured. We made an investment in Sítio do Moinho. We improved the shed, the supply of electricity, changing the transformer from 15 to 75kva.  We had to install a generator because there were many power cuts here; then we had two cold stores, one for goods to be dispatched, and one for goods received, and we modernized all the packaging equipment. A product that enters Sítio do Moinho goes straight to a moisturized cold store in order to give greater protection to the product, giving it a longer shelf life, thanks to the way it’s handled. For that reason, we acquired refrigerated trucks; we once had as many as five trucks for delivery to Rio de Janeiro. At present, we operate with three refrigerated trucks and two vans in Rio.

AngelaJust as important as the structuring of the logistics was the creation of a logo and the right package to preserve the integrity of the organic products in the stores and prevent them from being mixed up with conventional products. It was also the experience in stores that led us to place bar codes on the packages, and to realize the need to supervise the products in the stores.    

It is important to stress that, at that time, we felt the need to legitimate our work, by seeking certification. Because we had been practicing organic farming for 8 years, the IBD Seal (RJ 004) was given to us 6 months later, after some adjustments. We also became members of the Abio. Some years later, we were the first to implement a traceability process for our products.

Dick - Today, I think that our brand has acquired an identity, an association with the name Sítio do Moinho, the yellow-colored package, which stands out very well on the shelf. When consumers look for a Sítio do Moinho product, they look for that package, the “brand with the little basket”, and the color yellow.

Marca do Sítio do Moinho

What about acquiring knowledge, studying?

Dick - Angela and Maria Claudia, as well as our technical staff, are always updating their knowledge, taking courses, such as Organic and Biodynamic Agriculture in Botucatu, and several others.

Angela - By that time, we had already read a lot, studied a lot, and we gradually gained knowledge through practice and especially through interchange with people who are experts in the technical side, considering that neither of us had previous experience in this area. At the beginning of the project, we also had the advice of Nasser, a consultant in the organic market, with offices in Itapemirim, in the State of Espirito Santo. 

Sítio do Moinho invests in home delivery with special care. How do you do that?

Dick  - We have a differential in the way we deal with our home delivery services. Today, there is competition in Rio from suppliers from São Paulo, selling at supermarkets, but our service and the way we do the delivery of the product makes all the difference. The same is true in relation to our home clients. The quality of the product arriving at people’s homes is what most concerns us. It has to be improving all the time. In addition to a staff and process structure that is efficient and correct, we want to improve it even further, so much so that we are thinking of importing organic products. The differential that we offer our clients is the involvement we have with them. They are people with whom we maintain a dialogue and a good relationship. There is a common denominator between the market garden and people’s homes. Angela is the person to talk about that, because she keeps permanent contact with these people.
ÂngelaWe are greatly concerned with the quality of products and the selection of what reaches the client’s home. For that purpose, you must have a good team that shares this care and this concern. But that’s not all. The other sectors involved, such as the staff who register orders, the work of putting the baskets together, payment collection, delivery, and all the employees involved in this process, all these sectors have to work together. What’s the good of a good product delivered by a badly behaved employee, or that takes so long to deliver that it is wilted on arrival, or if the invoice is wrong? As our baskets are customized, there’s a great deal of work and it’s very detailed.

Mistakes sometimes happen, but the important thing is to identify them, to find out why they happened, correct them and learn from them so that it doesn’t happen again. You have to be constantly careful. 

Do you think it is important to have your product in the supermarkets, because it fixes the brand-name in the consumer’s mind?
Angela Yes, it fixes the brand-name, it is the sales segment that reaches the greatest number of people and today, there is a specific clientele for organic products in the stores. 
DickIf it were not for the supermarkets, organic production would never have had the coverage given by the media – TV, magazines and newspapers. Supermarkets give enormous visibility to organic products.

Angela Now that we have learnt how to work with home delivery, we have the chance to have a more conscious client, because those who opt for organic products believe in a healthy life. The home client is easier to deal with. We continue operating with supermarkets today, because we also work very carefully with this supermarket client in terms of product quality, which is the basic premise. Every product has to be of the highest quality. Vegetables are subject to climate problems, humidity, etc. We sometimes have problems with products delivered to the stores, but the important thing is to be always on the watch to correct them. It’s not for nothing that we have a team of supervisors that visit the stores every day, in addition to permanent promoters in some of them.

produtos do Sitio do Moinho embalados

That’s why you get client loyalty.

AngelaThat’s true, we have a very loyal home clientele; some of them have been with us for 12 years. When we talk to a client on the phone we have a much better opportunity to show him what the organic product means, and he’ll go after a product that is healthy, well chosen, looks good and is conveniently delivered at home. With the growth in the market, with a much greater variety of products available for delivery, we always try to select those that are included in our weekly list with great care, because they have to be certified. The few non-organic products we have, such as home-made salad dressings, are mentioned in our home delivery list as non-organic. We are now able to bring in products from abroad, and we have reached the stage at which we have to restructure ourselves once again in order to grow.

Are you thinking of increasing the range offered because you realized that the consumers want more?

AngelaCertainly. And since you are making home deliveries, the greater the variety, the better. If you can also deliver good quality whole rice, brown sugar, juice, dairy products … I think that a varied supply is much more interesting to the client. For the same delivery fee he will receive many more products at home. In view of that, we are thinking of also offering a line of imported products. Sítio do Moinho is becoming an importer. Home delivery will be combined with delivery to other clients, that is, restaurants and supermarkets. We are strengthening this home delivery structure, so that we can enhance this client segment that we operate with.  Sítio do Moinho is today a benchmark for organic agriculture in the State. The Rio de Janeiro Rural University has sent several students of the subject Organic Agriculture. Universities, schools, students, agricultural scientists, trainees - they usually seek the Sítio as a reference because of the importance the Sítio has reached in terms of organic production.  

DickThe Rio de Janeiro Rural University has just sent two trainees who spent one week here, and this is already the 4th or 5th time they’ve sent students to do training at Sítio do Moinho.
AngelaIt’s also important to say that what you saw here today is only part of the production, because we have another 3 areas under lease. In these areas there is a great variety of plants that we grow. 

DickI’d like to emphasize this work we do with schools. The organic concept fits into subjects such as environmental education, science, clean food, which are taught at school.

AngelaWe have received groups of students here, for practical lessons on the environment, recycling, clean products, healthy agriculture. This is a kind of work we would like to increase, because we believe that if you succeed in educating a child, you are educating tomorrow’s consumer, with a clearer perception of the damage pesticides cause to health, the environment and the farmer. The same way that we see today a very great interest in young mothers who look for organic products for their babies’ soup. They are very different consumers from 5 years ago, when older ladies were the consumers. Today it is very different, because younger people are very concerned. The range of consumers is much greater.  

DickWe have already received state schools, the University of Viçosa, a school from Jacarepaguá, from Itaipava, secondary schools from Rio, groups of senior citizens, families bringing children to see an organic plantation. This is all part of our responsibility.

AngelaWe also feel this responsibility in relation to our employees. We are developing the implementation of a project in which we will bring them together for classes on organic agriculture, recycling, separate trash treatment, how to use vegetable peel and stems, or other subjects that may interest them, in the belief that they may apply some of that in their own lives. The rivers in our region are highly polluted, with the sad tradition of floods in the rainy season, due to the fact that trash and sewage are thrown in them. Collecting plastic generates income for a lot of people and avoids empty cans and PET bottles being thrown in the rubbish, due to a lack of awareness. We’d also like to find a solution for some of our employees who cannot read or write, by hiring a teacher. Today, the organic concept goes much further than actual production. We take it into our lives, by means of practices that involve more conscious choices, and that imply less waste and greater use.

Sítio do Moinho will be present at the Biofach, sponsoring the organic dinner with its products. It will also be present in the All Invest business round and this shows how alert to the market you are. Were you pioneers in the market?

AngelaYes, we were the first in the supermarkets in a more professional way. Just as we are planning to bring several products from abroad, within this spirit of growth, we are taking part in the Biofach as sponsors and specially by enrolling in the business round, where we’ll be talking to producers, purchasers or organic product firms coming from Europe, and that are interested in setting up partnerships with South American producers. That’s how we’ll be seeking some form of growth.

Sítio do Moinho now covers a huge universe of people. Have you any idea of how many people you have managed to reach? Ana Maria Primavesi has been with you here. Tell us a little about that.

Angela Ana Maria Primavesi came to Itaipava as one of the teachers of a course on Natural Agriculture promoted by the Mokiti Okada Foundation. We took part in the course as students and one of the practical classes was at Sítio do Moinho. We were very happy to have Ana Maria Primavesi here, when she was able to see all that was good, and at the same time, she made some remarks that were very productive in terms of what could be improved. It is important to pass on to all our clients this feeling that we work with great concern for product quality, and for rendering good service to all of them. We give each client a specific service.

Especially because you let your clients choose the products they want. It is a “tailor-made” basket.
Angela Whether it is a home client, or the head of a sector at a supermarket who we visit every day to see if products are well presented, in fact, for it to be a stable relationship. We take the same care in relation to restaurants. Our employee talks to them every day. This “connection” is what gives the client a lot of security. The fact that we visit the stores leads to a feeling of respect for the service. Dick and I go into both a sales department in order to negotiate and also the stores during holidays, so as to see our products in the sales area. People have often seen us working with knives and cloths, wearing the Sítio T-shirt. The feeling is that we are taking the project seriously. We dedicate ourselves body and soul to our work. We try to work with the greatest transparency, as correctly as possible, which is the only way to win your client’s respect.
Dick - We are very proud of what we do. We believe in the basic philosophy of organic agriculture. That was the principle that roused our interest in this project and at no time did we regret taking this decision. We are convinced that our involvement in this project is enabling us to add a good bit in terms of a healthier life for all who share our work. This, more than anything else, is what makes us very happy to be involved in this organic universe.This seriousness, this honesty with which we undertake our work, the modus operandi of Sítio do Moinho, comes from a lot of perseverance; this ethic is part of the organic concept; you treat your employee correctly, you treat your product correctly.

In the growing, the harvest and the post-harvest phases we give our product noble treatment, so that it reaches the client’s home well looked after. And what is incredible is that we started very small, we are growing and in fact what we see today is that the stage we have reached is still the tip of an  iceberg, because there is a lot still to come.

How do you see the prospects for the organic market here?

DickSome people are concerned because there are a lot of false organic products in supermarkets, some people may take advantage of this wave that is reaching us, but if you work seriously within the organic philosophy the work evolves, and it evolves a lot. What is making the organic market evolve is the demand for honest products. The reason for that demand has a reason to be. It is because it’s a nobler, healthier product and it is the alternative to products carrying pesticides, agro-chemicals, and that are consequently not good for the health. Organic agriculture means the product that is grown without harming nature. It implies in its principles the clean, positive and healthy aspect; in short, ”it comes from Goodness”. Today you have State governments interested in changing the school meal into an organic meal, because they know that this is for the good of the population’s heath, especially the younger generation, because this may result in lower expense with health treatment. I think organic agriculture is in a rising trend.

Do you think that there is still a lot to come, that it has not “taken off” yet?

DickWe have already done a lot, taking into consideration that we started from scratch. But don’t think, for one moment, from what one sees in the market, that we have already reached the top. The organic movement is starting now.

Do you think that Biofach in Brazil will help to give it a push?

DickNo doubt.  Biofach will help to make the Brazilian consumer aware of a reality that he may be unaware of. You have held seminars throughout Brazil. You went to Juiz de Fora yesterday. There were 70 people in the audience, wishing to learn a bit more about the organic movement.  Producers are beginning to understand that they have to change their life concept a little. Be it regarding cattle, poultry, dairy products, meat … because they know that the demand is going in that direction.

AngelaVery often the consumer wants to have healthy food because he wishes to introduce changes in his life, but he doesn’t know how to go about it. I would like to highlight the excellent work BioFach has done in the course of these months, by organizing so many seminars on organic production, the dissemination of information and opening up opportunities for new enterprises to be started.

The work done with restaurants, for example, was unprecedented. If the seventies and eighties were a time of organic production mostly as an alternative and on lower scale, the nineties signaled the introduction of organic products in supermarkets. This year seems to be the restaurants’ turn to wake up to a new trend already observed in Europe and in the USA, with the presence, if not only of organic ingredients, of at least one organic dish in their menus.
The “Rio Orgânico” event has the merit of spreading the concept among the restaurants, and we hope that, at the end of the event, some of them will continue presenting organic products in their menus. We recently received a visit from a “churrascaria” (barbecue restaurant), which is not taking part in the “Rio Orgânico”, but told us its clients are asking for organic food in their salad buffet.  
People, in fact, know very little about organic products and this lack of information is a huge bottleneck for the development of organic production.
Dick A newspaper we subscribe to, “Acres”, published a news item that really horrified me. There was a problem with a chicken breeding farm, whose hens stopped producing eggs for some reason. There were thousands of birds, and they had to be killed.  The way they found was to throw the birds into a grinder, alive. This process was criticized so much that they are being prosecuted. Within the organic concept this would never happen. Animals are very carefully treated.
AngelaThe consumer mixes up concepts a lot and needs information. It is up to us to help spreading it. Despite the fact that the media helps a lot in that respect, there is a lot to be done. The increase in organic production needs to go hand in hand with work to enhance consumers’ awareness.
Dick - Today, the consumer demands quality, he wishes to know how the product was made, and he respects the producer or manufacturer who is concerned with environmental preservation or social  responsibility. All this is changing in the world. That’s why I say that we are at the tip of an iceberg. 

A lot will happen in the future. In two years’ time, we’ll be sitting here and will see that what we have today is very little in relation to what we’ll have in the future in terms of organic products.

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