Hi Cecilia, thanks for joining the Tools, Concepts and Field Based Business Models Group. I'll be looking over your information. I saw that you're focusing on poverty reduction through eco-sensitive business approaches. I'd love to hear more. How about posting a blog on what kind of businesses your organization gets behind, and some of the ways people can duplicate, or partner with you? Let's keep in touch.

Hi Celia

In our model we don't exclusively use "western" experts per se. In fact what we do is largely dependent on African experts. Doing business in Africa requires Africans to make most of the field decisions. The western component is to provide confidence, accountability, quality and distribution. We presented a concept to the Guineans and then together with the nationals we groomed the concept. At one point they were in agreement but then in refining the numbers we realized that production costs required we would have to finish the product for retail. They would never have caught that. So, over time we developed something that is distinctly symbiotic. All of us own it, and all of us learn from it. As it has worked out that the production uses african approaches, while in the capitalization and distribution aspects, rigorous quality control, there is a blend. Usually what we end up doing is saying to the nationals "For us to compete in the global marketplace this is what we want to accomplish, how do you recommend we get it done." Sometimes there are immovable non-negotiable value that we must embrace, sometimes there are such values that they must embrace.

On recruiting business people: We've not relied a great deal on outside business people. We really only needed a couple of us to engage in country. Now, it needs to be said that raising funds and awareness of our work has had to be done in Europe and the US. Everything thus far has been privately funded, which means a LOT of donor development. While our african counterparts may be able to qualify for some forms of micro-financing, that will not provide nearly enough to create industry - probably only about (5-10%). The Guineans we work with have the capacity to produce millions of dollars of processed cashews, but there isn't sufficient capital available to buy raw product and for production costs. So we do the bulk of the capital improvements.

It really isn't us telling them what to do. It's a trust based relationship meant to improve their lives, and believe me they appreciate it. They work very very hard.

Hello Cecilia ,
I am intersted to in a possible scheme (Bioenergy Village Complex) based on a crop and aimed to provide rural villages in developing countries by sufficient energy, fuel, food and feed . I appreciate anyone who is intersted in this venture.The project does not compete with food production (Food vs Fuel).
Girma Mitiku , PhD
Addis Ababa , Ethiopia

Hi Cecilia,

I was just thanking you for joining the PANGEA group and letting you know that we will be sending out our 2008 annual report soon. Additionally, we are putting together a major biofuels conference in June in Addis that may be of interest to you.

Hi Cecilia I don't know if you got my email correct - try either mblondino@integrity.com or m.blondino@leadinternational.com. Both will come to the integrity address. I'm very hard to offend, so please feel free to express your thoughts. You are welcome to question me on anything. Our approach really wasn't the fruit of academic models or the latest greatest emerging trends. I came up with the original concept of working on the subsector, when I shared this with the President of the National Farmers Association (a man quite savvy in working with and against the government) he was very supportive. From that point I tasked the project to our managing director - a Spaniard named Mario Martinez. Mario worked through the existing national relationship base I had created over a decade, and then he built on this by focusing on people who understood the industry. Eventually we "washed our hands" of people who were not able to contribute either in reputation or in expertise. The handful of people who became the core not only critiqued but also modified the plan. So the systems we have are both sound in business and compatible with the culture in the our target area.

I love the fact that you're taking a private sector approach. That attitude is the right way to go. This government granting model is a flop from word one. Business takes time, and it takes heart. There is always initial capital required to get a market rolling, but if your plans are sound, and you have people who believe in you then it's the beginning of a good work. My concern with the grant model is that if there isn't sufficient self-discipline to watch expenses, the grants become counter productive because they deceptively give a sense of security. Start up time is a time for extreme creativity on maximizing resources. We see grant recipients running out to buy a fleet of SUV's and office space. We have never purchased a new vehicle. Even our large capacity trucks were refurbished or used.

For the first five years of operations we spent only about 1/3 of the funds we raised. 1/2 of the funds were in capital improvements, and rest we kept in reserves for production.

Cecilia let's continue this dialog in the field model group because I think others who are looking for this kind of information will appreciate engaging in this discussion. Are you ok with that? I think you have a lot to offer by way of encouraging others in doing business.

Email me any time you want. I look forward to communicating.
Mike

That's a lot of information on the tree of challenges! I would LOVE to see the propositions on the tree of solutions. Did I send you the flow chart of the things we have to do to support the cashew processing industry? Without solid involvement in overseeing most of the challenges faced it seems virtually impossible to get a new bio industry rolling. What kind of buy in are you getting from the farmers and what are you offering them as incentive to participate. How many farms? What is your anticipated output of raw product over five years and the gross and net return on product per unit (you define the unit) after processing? Those would be the questions I'd like to know more answers to.

Dear friend,

I will send you a copy of our flow chart when I'm on my other computer later this evening. First of all, let me say that I completely understand the frustration of lack of field data. For two years we struggled with our pro forma because we simply could not get correct data, partially because the farmers didn't know or understand our objectives. Second because the processors frankly didn't understand the vital importance of production data. We had to actually do it with them to get right information. At the time it was a major pain in the neck, but over the long haul it showed them that we were committed to them which now we see as a valuable investment of time.

While the cost was more than we wanted to pay our field staff they used it to create additional relational capital that believe me we have used!

To do our test production only took one site, and several collaborative meetings to get everyone on the same page and then we set up sort of regular reviews. I can't imagine how tough it was to try it with ten. You're a hero in my book taking that on.

Relying on someone else for data is a very very difficult prospect when you're in the formative stages. Let me ask you, is it possible for you to engage with one farmer in the field as sort of a partner in the process? Because it looks like you need data at several levels... raw agri. product and then at the production level. Knowing your awareness of business and your obvious training I apologize if this is too basic, I hope you aren't offended by my observations.

I'd love to discuss your direct field engagement because that's where my passion is. In my opinion that is where the profitability is found.

Keep in touch.

You know, the biggest problem with most efforts these days is pride. I totally agree that going back to the basics is exactly where we need to go. I think people just want to get famous quick so everything is about fast not sound. You can always increase scale when you've proven profitability in a test venture. I wish you the best, and I would love to hear more when you take the next step. Blessings on you.
Mike