Sustainable Organic Value Chains

Our primary activities are the wholesale distribution of organic food products to both supermarkets and food stores and the marketing and sales of our own branded foods, for which the production is outsourced to third parties (farmers and SMEs). We aim to continuously increase our shareholder value by capitalizing on our differentiating capabilities in category/channel management, strong brands and value-added distribution services.

Our goal is to differentiate our products and brands through rigorous adherence to authenticity. As part of this process, we will make the heritage and sources of our products more transparent, using packaging and other marketing elements to emphasize their quality, purity and originality.

A key factor in our strategy is to develop a stream of new and highly authentic products for the Premium Taste/ethnic and natural/health food markets in Europe and North America. We believe this clear focus will help to differentiate our brands from those of our competitors.

With a compact management structure, we are able to make quick decisions about which new product ideas can be turned into viable profitable lines. Our core competencies include an established expertise in sourcing ingredients, an ability to create marketable products that retain their authenticity, and an advanced understanding of how to use modern logistics techniques to ensure the fastest possible distribution to the marketplace.

Innovation is a defining element on our project. It starts with product innovation: the search for new ethnic and natural health products that will surprise and excite our customers. But innovation does not stop at products. It encompasses the whole spectrum of our business. We will find new processes, new distribution methods, new marketing techniques, new ways to analyze and understand our marketplaces. The refinement process will be continuous.

Critical Success Factors:

- We see sustainability as the core of our businesses, and we are actively working to embed the principles of sustainability throughout our processes.

- There can be no true authenticity without transparency. As long as our stakeholders can see what we are doing, we believe they will understand that we are motivated by a desire to act in their best interests – to make money for our stakeholders, to provide good working conditions for our employees, to treat our suppliers fairly, to supply our customers with premium quality food and to minimize harm to the environment.

-It will review all the ingredients we use in the light of social and environmental factors involved in their production before they reach us through the supply chain. Next, it will start the process of assessing the sustainability standards of our suppliers, to produce a ranking system that will, in future, be taken into account by our procurement staff.

- We only offer distribution services if it enables us to differentiate from our competitors or to gain a sustainable competitive advantage. Distribution is an element to strengthen our market position in relation to category management and branding. Our distribution services include vendor management, category management and local sales and trade promotions.

-Use of community leaders for the formation and mobilization of clusters. Successful training to all the participants (farmers and SMEs) and staff involved.

Establishing sustainable products through our supply chain processes:

Scientific research has confirmed that amaranth is highly nutritious, high in protein and rich in lysine, an essential amino acid. It is also high in fiber and contains calcium, magnesium, iron and other essential minerals and trace elements.
Amaranth is a very popular organic ingredient in European countries. We can launch a type of crunch-muesli with amaranth for the breakfast table. By working only with a fixed group of growers and maintaining direct contact with them, we can guarantee a constant quality and supply of the product. The growers harvest the grains, clean and pack them. Next, a SME from an urban area will process this type of crunch-muesli with the original ingredient: amaranth. We must emphasize that we do not produce a “mass product” so we do not produce large quantities. Finally, the packs are sent to our customer in Europe.

Our project aims to be the link among small-scale farmers and micro and small enterprises to markets and agri-food chains from a pro-poor perspective.
Our primary activities are the wholesale, distribution of food products to both supermarkets and health food stores and the marketing and sales of our own branded foods, for which the production is outsourced to third parties. We aim to continuously increase our shareholder value by capitalizing on our differentiating capabilities in category/channel management, strong brands and value-added distribution services. Our actions are intended to achieve a fair balance between the interests of all our stakeholders, by focusing on authenticity, transparency and sustainability.

This experience could be deployed in Andean countries because we share a set of characteristics as the socio-cultural profile of the BoP, the agricultural base, biodiversity, political framework and trade policies.

A vision and a strategy for scaling up will be developed as the first phase of a program or pilot. We have a clear vision of the appropriate scale of intervention, although it started with a pilot phase, it aimed from the beginning to eventually provide a business environment for the incorporation of the BoP (in Peru and in Andean Countries) in the value chain as providers, clients, consumers, distributors, employees and so on.

The pilot phase will be funded by local development agencies. After, the revenue will be generated from selling our products in local and global markets. Our model ensures capital-efficiency to ensure that this is scaleable.

We propose to focus the poorest regions in Peru, because these people are mainly farmers of small scale agriculture (self-consumption) or belong to small associations of farmers. It means that, in few cases, they are sellers of raw materials. We want that they become farmers of organic products or processors of bio-products (urban poor). Our aim is that they are able to export finished products as health food products and eco-products. Our role is to be in charge of design products and distribute them.

Agriculture employs about 30% of the labour force and represents about 9% of GDP. Peru’s agricultural zones include:

- Irrigated valleys of the coastal belt, which account for 60 per cent of agricultural output.

- Andean highlands, cultivated mainly by small farmers who produce basic foods for local consumption, accounting for about 25 per cent of agricultural output (for example: Ayacucho, Huancavelica, Puno).

- Tropical lowlands, producing 15 per cent of agricultural output (for example: Loreto).

The market for organic and prepared food is expected to continue to expand although at a slower rate in the future. In 2011, it is estimated that sales of prepared and packaged organic food will be $1.11 billion, an increase of 70 percent from 2006.

No comments:

Science, Technology, Business, Development, Innovation, Business Plans, Entrepreneurship, Social Responsibility, Open Source, Software, DIY, Citizen Science, Research, University, Laboratory, Startups, Spin-offs, Society, High Tech, Appropriate Technology, Inventors, Scientists, Technologists, Health, Global Change, Poverty, Third World, Design, Green, Physics, Mathematics, Biology, Chemistry, Medicine, BoP, Communities, Networks, Jam, Creative Commons, Wiki, Hacking, Labs, Public Domain, Pro Poor, Sustainability, Renovable Energy, Research, Nature, Peer to Peer, Books, Teaching, Web 2.0, On Line Learning, Lemelson RAMP, Google Summer of Code, Google Code In, Google Science Fair, Intel Challenge, BIOMOD, OLPC, iGEM, IDDS, Microtelcos, Wireless, Create the Future Design Contest, Moonbots, Knowledge, Entrepreneurs, Open Access, Inventions, Incubators, Projects, Engineering, Engineers, Women, Policy, Popular Science, Astronomy, Agriculture, Water, Climate Change, REE, Hacker Spaces, Open Innovation, Yachachiq, BiD Network, Technoserve, Peru, MOOC, Crowdfunding, Startup Chile, Startup Peru, Instructables, NASA, FabLab, FoodLab, GSoC, GCI