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BRAZIL MALVA PROJECT
By Martin McLendon, Allie Long and George Morgan
HOW IT STARTED
Initial contact made last year through a visiting professor
The problem: small villages along the Rio Solimões who produce malva and jute fibers are being exploited by a middle man who buys the fiber for close to nothing and sells it at market price for a large profit
Asked to research the problems associated with the exploitation and look into possible demands made for the fiber
Submitted initial deliverable with recommendations on how to enter the “green” market in the U.S. and Brazil
TRIP TO BRAZIL
Spring break last year 3 of us went to Manaus to present our work and get feedback from graduate students and professors involved with PIATAM
Got a very positive response from our work but realized that we overlooked limitations faced by the villages I.e. lack of electricity, poor health,
low technology Asked to write chapter of a book
for PIATAM
CURRENT FOCUS
Second trip to Brazil in August Asked to look deeper at the full
distribution chain of producing and selling the malva
INITIAL PLAN- OUR LOE
The first phase will focus on: Researching the complete distribution chain of producing a product
out of malva Researching ways to eliminate the power of the patrao by
aggregating a product in a way that makes him redundant Examining the formation of a cooperative and the steps necessary to
get legal recognition Contacting organizations who might be potential buyers of malva
products
The second phase will focus on: Present an approved business plan to companies willing to purchase
sustainable goods from these villages Obtain a grant to cover the start up costs for villages producing
malva
LIMITATIONS TO OUR PLAN
Communication to Brazilian companies caused numerous issues because of the language barrier
Implementation was complicated because of the distance
Decided to take a more consulting type role and compiled a document of our recommended steps for successfully creating a profitable business with the malva and eliminating the patrão
OUTLINE OF THE DOCUMENT
1. The process of forming a cooperative and the problems associated with it
2. The distribution chain of selling malva
3. Creating business relationships with potential buyers
COOPERATIVES
Explained what a cooperative is and how it is formed
Suggested contacting the OCB Noted the potential power struggles that
can exist in villages once a cooperative is formed
The formation of a successful cooperative would give the villages more economic power and would help them decrease their dependence on the patrão
DISTRIBUTION CHAIN OF SELLING MALVA
DISTRIBUTION CHAIN OF SELLING MALVA
Identified the large domestic demand for the fiber
Identified the necessary start up costs for seeds and transportation
Suggested forming relationships with local companies that purchase the fiber (i.e. JUTEL)
The main focus of the villagers should be growing the raw fibers and transporting them to the local outlets
CREATING BUSINESS RELATIONSHIPS
Suggested for the villages or possible cooperative to establish a spokesperson to be the main liaison between the villages and the companies
Identified the importance of marketing the fiber to local companies
Suggested implementing contracts to ensure they are not exploited
MOVING FORWARD?
We have submitted our recommendations and are waiting for feedback as to whether continued work is necessary
Questions?