The main problems in Peru as poverty, low productivity, inadequate infrastructure and poorly integrated markets are often exacerbated by an under-developed agro-industrial sector. Little attention has usually been paid to the value chain through which agricultural commodities and products reach the final consumers in Peru and abroad.
According to the United Nations Industrial Development Organization (UNIDO, 2007), while high-income countries add US$180 of value by processing one tonne of agricultural products, developing countries generate only US$40. Moreover, while 98 percent of agricultural production in high-income countries undergoes industrial processing, barely 30 percent is processed in developing countries.
In this context, Agro Products Design (APD) can make a vital contribution to the development of developing and transition economies, which typically have a predominantly agricultural and rural base. Since these services are at the centre of the agro-industrial value chain, it serves to strengthen forward and backward agro-industrial linkages in order to raise productivity and increase the potential for promoting growth in value added and employment. The impact of these activities consequently has a strong potential outreach to poor and marginalized rural population groups, and is closely in line with several of the MDGs, in particular the eradication of extreme poverty and hunger.
APD comprise a range of technical assistance and know-how, which encompass the following key areas:
A. Inclusive Business: APD business model enables small scale farmers, grassroot entrepreneurs and SMEs to be value chain actors through the production of organic, natural, non GMO and fair trade products, made of native plants, for local and global markets. We design and develop new products including packaging, promotion, marketing and sales. All the others business activities will be outsourced to local SMEs. Project activities are designed to: -Improve profitability, market access, operational efficiency, crop/livestock diversity, environmental stewardship and business relationships for clusters of farmers and processors. -Offer products to satisfy the health and eco market needs for consumers in Peru, North America and Europe.
B. Web2.0 Tools: Agri Mashup offer relevant content by visualizing key information in areas such as market demands, legal advice, sources of financing, government services, business opportunities and technical information. It also addresses some of the major problems facing farmers and low-income entrepreneurs: access to formal economy, integration with global markets, fair trade conditions, better prices and how to giving aggregate value to their products.
C. Zero-Energy Warehousing and Greenhousing System: Our new warehousing and greenhousing system for sustainable agro-industry is designed to use only energy from renewable sources generated on site. Rain water falling on the site is collected and reused. Building materials are selected from renewable sources on the site, to minimize the energy required for transportation.
Agro Products Design is an initiative of Nutri Pro Salud and Quantum Solutions. Nutri Pro Salud is a nonprofit entity that assists vulnerable groups in Peru, primarily in underprivileged areas, through health, nutrition and social entrepreneurship activities. Quantum Solutions is a business incubator. It promotes entrepreneurship in rural communities by developing and providing solutions for starting and growing enterprises. Its products and services range from appropriate technologies and technical training to microfinancial services.