agr colorEducate • Nourish • Empower
A business plan to promote a sustainable staple for stronger communities
PAI 705: Strategic PlanningOctober 1, 2012
Vicki Romo, Stefania Coco Scalisi, Maria Gomez Torres, Veronique Lee
Table of Contents
I. Executive Summary 3
II. Introduction 4
Mission 4
Vision 4
III. Program Design 5
Market Analysis and Program Proposal 5
Organizational Structure 6
Operations 7
Promotion Strategies 8
IV. Budget 9
V. Conclusion 12
VI. Appendix 13
References 13
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I. Executive Summary
The World Bank classifies Bolivia as a lower middle-income country, though it is among the poorest and least developed countries Latin America. Malnutrition afflicts destitute, rural communities in Bolivia, and climate change is leaving subsistence farmers with fewer crops. Agricolor proposes reintroducing amaranth—a plant with deeply rooted history in Latin America—to rural communities in Bolivia by promoting its nutritional benefits and providing technical assistance to subsistence farmers.
Amaranth’s ability to conserve water and tolerate soils high in salt, acidity, or alkalinity makes it easy to cultivate in adverse climates. It contains more protein, iron, magnesium, and calcium than any other comparable grain. Agricolor is working in collaboration with Andean Naturals LLC to make amaranth seeds available to farmers and has enlisted top chefs to produce a cookbook for distribution in partner communities. The ten-person and is funded by U.S. government agencies, partner government agencies, and endowment grants as well as private and individual donations.
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II. Introduction
Persistent droughts, cold weather, and flooding are threatening Bolivia with a major food crisis. Food prices are increasing, making the price of meat and other foods practically unattainable to low-income families. According to the CIA World Factbook, nearly 51.3% of the population in Bolivia is living below the poverty line on less than $2 per day. Close to 5 million people cannot meet their basic food requirements and suffer from malnutrition. More than 25% of Bolivian children under the age of 3 are malnourished, and the Center for Economic and Social Rights estimates that the percentage increases to 40% in the poorest households for children under the age of 5. The World Bank estimates that 27% of women of childbearing age are so anemic that they pass on iron deficiencies to their children. Bolivia has the second highest infant, child, and maternal mortality rates in the Western hemisphere due largely in part to malnutrition.
Agricolor’s Mission
Agricolor is a transnational non-governmental organization whose goal is to revive the cultivation of amaranth in rural communities as a means of addressing malnutrition and empowering subsistence farmers. Our main objective is to promote amaranth as a sustainable staple for stronger communities.
Agricolor’s Vision
Agricolor’s vision is one of hope and empowerment. By reviving the cultivation of amaranth, Agricolor seeks to mitigate the effects of food insecurity in rural communities. Our organization is committed to supporting subsistence farmers to cultivate amaranth in an environmentally responsible and economically sustainable way. The amaranth project will enable our partner farmers to reclaim a piece of their history while simultaneously giving them tools to create a brighter future for themselves and their families.
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III. Program Design
Market Analysis and Program Proposal
Agricolor is a transnational non-governmental organization with its main office based in Syracuse, New York. While the organization’s ultimate goal is to expand operations worldwide, it will open its first field office in Cochabamba, Bolivia. The initial amaranth program will be offered in three rural communities in the vicinity of Cochabamba.
These communities were selected based on their largely indigenous populations, who have shown receptivity to quinoa and amaranth cultivation in recent years. The Cochabamba region has hosted USAID-funded agricultural projects, a number of which focused on alternative crop development to lessen the region’s reliance on coca production as a primary source of income, though none included amaranth as a viable substitute crop. Moreover, Cochabamba’s relative proximity to the capital city makes it an attractive location from a logistical perspective, communication channels, transportation for our staff, and general supervision of the project’s development.
In 2008, Bolivia launched the Zero Malnutrition Program, which focuses on children under the age of 5 in areas with high food insecurity. The objective of the program is to inform parents about healthy diet, the importance of breastfeeding, and how to recognize symptoms of malnourishment. Agricolor will work in concert with this project to inform families about the benefits of amaranth as part of their diet.
Agricolor’s aim is to inform Bolivians about the benefits of amaranth in order to reduce malnutrition, particularly in rural communities. Amaranth is high in nutrients, containing iron, Vitamins A and C, magnesium, phosphorus, and potassium. Additionally, 100 grams of amaranth contain twice the amount of calcium in the same volume of milk. Most importantly, this gluten-free grain has a protein content of about 14%, more than corn or wheat. Compared to other grains, amaranth has one of the highest contents of an essential amino acid called lysine, which helps the body absorb calcium and converts fatty acids into energy.
The A. caudatus variety of amaranth is native to the Andes, however it can adapt to new conditions and grow quickly without requiring ample maintenance, The plant prefers high elevations, but can acclimate to low elevation. It grows in temperate climates where there is moist, loose soil with good drainage. It can also be cultivated on marginal soils in low-water conditions, which makes it exceedingly drought-resistant.
Some experts suggest that amaranth should be harvested by hand. This aspect of amaranth cultivation is in accordance with Agricolor’s endeavor to build local capacity; Agricolor recognizes the agricultural knowledge already present in rural Bolivian communities and views it as a resource that will be crucial to successful project implementation. Agricolor aims to work with local farmers and to lend technical support to improve current cultivation methods.
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The A. caudatus variety of amaranth native to the Andes also possesses significant economic potential. Andean Naturals LLC is the United States’ primary importer of quinoa grain. Bolivian-born founder and CEO of Andean Naturals, Sergio Nuñez de Arco, who shares Agricolor’s vision of promoting sustainable agriculture and raising rural farmer incomes, has been successful in capitalizing on the “all-natural” and “gluten-free” food phenomenon in industrialized countries. Agricolor’s partnership with Andean Naturals holds tremendous potential for partner communities in Bolivia in the future.
Organizational Structure
Agricolor aims to be an efficient and streamlined organization. Ten persons, with diverse backgrounds and skills, will constitute its initial staff. In order to avoid inefficiencies, all the staff members will handle different tasks and responsibilities. At the same time, to act harmoniously, they will also coordinate among themselves and report to the other officers.
The structure of the organization is visually represented as a pyramid, however, this hierarchy is meant to be a conceptual framework rather than one practiced within the organization. The Chief Executive Officer, the Chief Information Officer, and the Chief Financial Officer make up the apex of the pyramid. These are the only members of the staff based in Syracuse and their main function is to act as a linkage between U.S. donors, Bolivian stakeholders, and local field staff.
● The CEO will be in charge of the organization’s overall management and give the stimulus for enhancement of the program in Bolivia. The CEO will act as the main point of contact for the staff based in Bolivia and for all stakeholders. Additionally, the CEO along with the CIO and CFO, will strategically draft and submit all proposals to potential donor and make final approval of any decisions affecting the global vision of the organization.
● The CIO will develop and implement the communication strategy of the organization. Acting as Agricolor’s spokesperson, the CIO will be in charge of managing media relations and promoting the organization through new media outlets, including, though not limited to, Facebook, Twitter, and blogs.
● The CFO will be responsible for all of Agricolor’s accounting, acting as the primary budget analyst and tax accountant of the organization. The CFO will have a solid experience working with international financial institutions such as the World Bank or the International Monetary Fund.
Agricolor will recruit Bolivians to fill the positions of the field staff, which will consist of the Program Director, Agricultural Director, three Community Leaders, an Assistant to the Program Director, and a part-time Legal Counsel.
● The Program Director will manage the program’s budget and identify opportunities for expansion. The Program Director will also hire field support staff, seek opportunities to commercialize amaranth, and promote the Amaranth Festival in Cochabamba. He/she will hold bi-monthly meetings with the CEO via Skype and/or conference calls in order
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to report the program’s progress. The Program Director will also host bi-annual conferences with the U.S. leadership team in anticipation of annual review.
● The Agricultural Director will be in charge of all technical aspects of the program. He/she will conduct site visits on a rotational week-to-week basis, lending support to the three community leaders facilitating amaranth workshops. He/she will spend approximately one week in each partner community to provide technical assistance and to oversee and evaluate progress.
● The three Community Leaders will be prominent and well-respected members of the communities involved in the program. They will have a background in agriculture and know the dialects spoken in the villages. They will hold weekly workshops with the local farmers to assist them during the various phases of the project. Finally, they will report to the Program Director and Agricultural Director any progress or changes to the program.
● The Assistant to the Program Manager will provide administrative and logistical support to the Program Manager.
● The Legal Counsel will handle insurance and lease agreements. The Legal Counsel will be an expert of both indigenous law and Bolivian private law.
Agricolor’s team will offer support to the communities involved in the program to revive the cultivation of amaranth while at the same time fostering local ownership of the program. The final goal of the project, indeed, is to train the local farmers in order to let them be more independent in the future.
Operations
The cornerstone of Agricolor’s program is an eight-day workshop designed to inform locals about the history and cultural value of amaranth, its nutritional benefits, its versatility and adaptability as a crop, the economic potential of its cultivation, and the technical training necessary to grow it. The structure of the workshop is as follows:
Day 1 Rescatando valores: El Amaranto como sustento en la era Pre-Colombina
The inaugural seminar will discuss the role amaranth played in the Pre-Columbine era as a subsistence crop for Central and South America’s indigenous populations. The aim of this seminar is to spark interest among locals the intrinsic connection between the crop and Bolivia’s cultural past.
El valor del Amaranto en nuestra nutriciónThe second half of Day 1 will cover the high nutritional value of amaranth and the health benefits of its consumption.
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Day 2 Las mil y un posibilidades que el Amaranto nos ofrece en la cocina
The second day of the workshop will engage locals in a cooking demonstration intended to showcase the versatility of amaranth. At the end of the second day, Agricolor will provide families with a copy of a cookbook, co-produced by celebrity chef Jamie Oliver and Bolivian chef Oscar Mora.
The first and second day of Agricolor’s amaranth workshop will welcome all members of our partner communities, while the rest of the workshop will focus on agricultural methods, primarily targeted to local farmers.
Days 3-5 Group session technical training
This portion of the workshop will address the technical aspects of amaranth cultivation, including soil preparation, irrigation, best practices, etc.
Days 6-8 Individual technical support
The individual sessions will be one-on-one between local farmers and Agricolor’s Agricultural Director to discuss a specific plan tailored to individual farmers and households.
Following the conclusion of the workshop, Agricolor will maintain a communication channel between our main office in Syracuse and our officers in Bolivia to supervise the development of the program and the progress of the amaranth reintegration process. In addition to the aforementioned activities, Agricolor will promote and host a yearly “Amaranth Festival” in the city of Cochabamba. The festival will be held during the last week of September and will celebrate the harvest of the amaranth.
Promotion Strategies
Agricolor will seek funding from a number of sources, including individual donations. Individual donations will be sought through various promotional materials, including Agricolor’s website and other social media outlets. Agricolor will also continue to engage the private sector, both within the United States and without.
In addition to collaborating with entrepreneur Sergio Núñez de Arco of Andean Naturals, Agricolor has enlisted celebrity chef Jamie Oliver and Bolivian chef Oscar Mora to co-produce a cookbook. The cookbook will primarily be distributed in Agricolor’s partner communities, but will eventually be sold in La Paz and in major U.S. cities, namely in organic and natural foods markets. Forty percent of the book's proceeds will be directly reinvested in the organization. Agricolor’s Amaranth Festival is also expected to generate revenue for the organization.
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IV. Budget
Agricolor has identified a number of funding opportunities from various sources to support its first year of activity (Figure 1). In addition to a $500,000.00 start-up endowment awarded to the organization by an individual donor, Agricolor will seek funding from the United States Agency for International Development (USAID), the Inter-American Development Bank (IDB), and the United Nations Fund for Children (UNICEF). Agricolor’s proposed program aligns with USAID’s current objectives in Bolivia, namely the Agency’s Integrated Development Program, which aims to provide “assistance to promote sustainable development, a diversified economy, and the expansion of social services in coca growing and associated areas” (USAID Bolivia). Past IDB grant awardees have implemented projects similar to those proposed by Agricolor, though few have incorporated amaranth cultivation. Agricolor’s innovative and scalable program therefore qualifies it as an attractive candidate for funding.
Agricolor is also partnering with Andean Naturals LLC, the primary importer of quinoa grain to the United States. Bolivian-born founder and CEO Sergio Núñez de Arco shares Agricolor’s vision of promoting sustainable agriculture and raising rural farmer incomes. Mr. Nuñez de Arco’s entrepreneurial spirit is an asset that will support Agricolor’s mission through the medium to long-term.
Agricolor is committed to being a transnational organization and will therefore seek support from its partner governments. Agricolor will apply for modest grants from the Bolivian Ministerio de Desarrollo Sostenible y Planificación (Ministry of Sustainable Development and Planning) and the Ministerio de Culturas (Ministry of Culture). The award from the Ministry of Culture will support the cultural aspects of Agricolor’s program, including the Amaranth Festival in Cochabamba.
Figure 1: Anticipated Revenue – 2012-2013
U.S. Government Agency Grants $90,000.00
IFI/IO Grants $100,000.00
Partner Government Grants $20,000.00
Endowments and Foundation Grants $500,000.00
Private Partnerships/Corporate Donations $100,000.00
Individual Donations $5,000.00
Total $815,000.00
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Agricolor projects that in the years to come, donations from individual donors and, more importantly, capital from private partners, will increase, making up for the 500,000.00 USD seed money the organization received in its first year.
Figure 2 outlines Agricolor’s personnel costs. The organization’s leadership will be housed in Syracuse, New York, though the majority of the organization’s staff will be based in Agricolor’s Cochabamba office. According to World Bank data, Bolivia’s gross national income (GNI) per capita is approximately 2,000 USD; however, Agricolor is committed to providing fair salaries for its local staff. Community leaders will receive a salary equivalent to 20,000 USD. The Program Director and Agriculture Director will each receive salaries equivalent to 50,000 USD.
Figure 2: Personnel Costs
Chief Executive Officer $70,000.00
Chief Financial Officer $70,000.00
Chief Information Officer $70,000.00
Program Director $50,000.00
Agriculture Director $50,000.00
Community Leader (3) $20,000.00 ($60,000.00 total)
Assistant to the Program Director $14,000.00
Legal Counsel (part-time) $35,000.00
Total $419,000.00
Figure 3 provides a detailed outline of Agricolor’s anticipated operational costs. Agricolor’s field office will be housed in a modest space located in Cochabamba, Bolivia. Agricolor will allocate the equivalent of 24,000 USD for office rental and associated utility costs based on average real estate prices in La Paz and surrounding communities.
Agricolor will allocate 41,500 USD for program costs. The program costs consist of Agricolor’s marketing campaign, which includes producing a cookbook primarily for distribution to partner communities in Bolivia; the Workshop Series, to be facilitated by the Program Director, Agriculture Director, and guests speakers such as Mr. Nuñez de Arco; the Cultural Activities, which includes the aforementioned Amaranth Festival; and any costs associated with community agricultural activities.
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Figure 3: Operational Costs
Syracuse Office: Rent and Associated Utilities $72,000.00
Field Office: Rent and Associated Utilities $24,000.00
Office Supplies (including computers) $9,000.00
Sport Utility Vehicles (2) $35,000.00
Travel $8,500.00
Marketing Campaign
Workshop Series
Cultural Activities
Agricultural Assistance
$20,000.00
$3,500.00
$8,000.00
$10,000.00
Total $190,000.00
Net Total (Revenue-Program Costs) +$206,000.00
In its first year, Agricolor expects to maintain significant overhead capital. The anticipated grants, totaling 210,000 USD, will be used to carry out the program into 2013-2014. In the unlikely event that the partner government does not award Agricolor funding, the organization will draw upon its other sources of revenue in order to continue normal operations.
The anticipated overhead is also a testament to the organization’s forward thinking. As Agricolor gains momentum, it hopes to locate opportunities to expand its activities in other regions where there is an identified need.
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V. Conclusion
The Center for Economic and Social Rights states, “the root of the problem of hunger and malnutrition are not lack of food but lack of access to available food due to poverty.” Agricolor seeks to address malnutrition in the area by reintroducing amaranth as a staple for a healthy and wholesome diet. Agricolor aims to support subsistence farmers by facilitating workshops and providing guidance needed for environmentally responsible and economically sustainable amaranth cultivation. Agricolor would like to expand beyond three rural communities to six upon successful completion of its first year. Once the organization becomes self-sustaining in Bolivia, Agricolor hopes to expand to additional Latin American markets and eventually Sub-Saharan Africa. Agricolor hopes to promote the slogan “Educate, Nourish, Empower” to impoverished communities around the globe.
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VI. Appendix
ReferencesAndean Naturals LLChttp://www.andeannaturals.com
“The Andes’ New Cash Crop – Quinoa Selection” (accessed 28 Sept 2012):http://www.economist.com/node/21554570
Cambridge World History of Food (accessed 26 Sept 2012):http://www.credoreference.com/entry/cupfood/ii_a_1_amaranth
Canadian International Development Agency (accessed 29 Sept 2012):http://www.acdi-cida.gc.ca/acdi-cida/ACDI-CIDA.nsf/eng/CAR-112215732-RLShttp://www.acdi-cida.gc.ca/CIDAWEB/cpo.nsf/vWebCSAZEn/7D46B7BAEE85B6B385257443003724B1
Center for Economic and Social Rights (accessed 27 Sept 2012):http://www.cesr.org/downloads/Bolivia%20Fact%20Sheet.pdf
The CIA World Factbook (accessed 26 Sept 2012):https://www.cia.gov/library/publications/the-world-factbook/geos/bl.html
Foundation for Sustainable Development (accessed 29 Sept 2012):http://www.fsdinternational.org/devsubject/health/boliviaissues
“Gluten-Free Lifestyle Offers a Growing Market for Entrepreneurs” (accessed 26 Sept 2012):http://www.msnbc.msn.com/id/49042812/ns/business-small_business/t/gluten-free-lifestyle-offers-growing-market-entrepreneurs/#.UGSM5Riis7k
InkaNatural (accessed 28 Sept 2012): http://www.inkanatural.com/en/arti.asp?ref=amaranto-en
“Trader Andean Naturals expands taking quinoa to the next level” (accessed 26 Sept 2012):http://organicwellnessnews.com/en/?p=2883
United Nations World Food Programme (accessed 27 Sept 2012): http://www.wfp.org/countries/bolivia/operationshttp://www.wfp.org/stories/drought-bolivia-drives-farmers-their-fields
United Nations Economic and Social Council (accessed 27 Sept 2012):http://webapps01.un.org/nvp/indpolicy.action?id=1262
USAID Bolivia (accessed 27 Sept 2012): transition.usaid.gov/oig/public/fy08rpts/1-511-08-007-p.pdf
The Whole Grains Council (accessed 28 Sept 2012):http://www.wholegrainscouncil.org/whole-grains-101/amaranth-may-grain-of-the-month-0
World Bank (accessed 26 Sept 2012):http://data.worldbank.org/country/bolivia
Bolivia’s Morales promotes quinoa against food crisis (accessed 27 Sept 2012): http://health.yahoo.net/news/s/afp/bolivia-s-morales-promotes-quinoa-against-food-crisis
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