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Royal Quinoa (Quinua Real) A great opportunity for Bolivian producers

Royal Quinoa (Quinua Real) A great opportunity for Bolivian producers. Bolivia-Sudamérica Noviembre 2010. Uyuni Salt Lake ( Salar de Uyuni ) 45.000 ha cultivated - 26.000 mt of food Annual export of $us 10 MM Average family-based farming between 2 and 8 ha.

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Royal Quinoa (Quinua Real) A great opportunity for Bolivian producers

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  1. Royal Quinoa (Quinua Real)A great opportunity for Bolivian producers Bolivia-Sudamérica Noviembre 2010

  2. Uyuni Salt Lake (Salar de Uyuni) • 45.000 ha cultivated - 26.000 mt of food • Annual export of $us 10 MM • Average family-based farming between 2 and 8 ha

  3. 15.000 peasants: self-consumption and commercial crops • 60.000 persons taking care of the crops

  4. INCLUSIVE BUSINESS FINANCING IN THE CHAIN OF QUINOA The initiative presented to the European Microfinance Award on Value Chain Finance OBJECTIVE: BENEFICIARIES: Facilitate the production of organic quinoa promoting fairer trade relations between peasant producers and processors 271 peasant producers RESULTS, 2 years of operation: CLIENTS: 4 primary processors Disbursements: US$ 501,500 Portfolio: US$ 205,000 Default: 0% Administrative Efficiency: 6.1% Self-sufficiency: 128%

  5. How do we generate sustainable benefices for all involved actors?

  6. How do we generate added value for primary producers? Inclusive business Knowledge Fair rules Model and product

  7. Results for peasant producers • Income: 94,6% • Utilities: 101,7% • Sales: 86,7% • Net assets: 13,3% • Employment: 11,67%

  8. How can we assure lasting links? Productive chain focus Building social stock Financing product Financing model PRODUCERS ASSOCIATION Community Municipality CERTIFICATION COMPANIES Goods and services provider GATHERING AND TRANSFORMATION COMPANIES PRODUCER

  9. Financialproduct: DiscountRate QUINOA TRANSFORMER ASSOCIATED PRODUCERS • Oriented to working capital and conditioned to cash payments • Finance applying a discount rate (4% to 8% flat) with mortgage guarantee. • Diagnosis and improvement plan for the producer and the buyer focusing on organic production. • Single payment at the end of the credit. Deadlines according to business cycle - 3 months to 1 year • Amounts from US$ 30,000 to US$ 90,000

  10. Intervention Model Agreement Credit contract Business Plan Buying and selling agreement 3 4 2 Gathering and primary transformation 5 IDEPRO Commercial articulation diagnosis Product Delivery 1 Producers Association 6 Organic Certification Agency Monitor results Enterprise payment to the producers 10 7 Balance payment to the producers Amortization BDS 8 9 FS

  11. Results - Benefits • Cash payment and competitive prices • Long-term relationships with transformers • Technical services towards organic production • Organic certification • Better income • Increase in supplier bases • Operating capital • Technical assistance services • Consolidation of intervention strategies • Promotion of impact results • Reduction on transaction costs (increasing demand) and financial recovery

  12. How can we mitigate the risks? Integral focusConditions of the financial productBetter information and more investment

  13. Default at IDEPRO and the Industry

  14. How do we scale-up results?

  15. Six value chain financing on operation Brasil nut Certified timber Textile confections Grapes, wines and singanis Camelid fiber, meat and leather Tourism

  16. Value chains and selected regions • Brasil nut • Timber • Textile confections • Camelids and Quinoa • Grape, wines and Singanis (drycolorlessalcoholicbeveragedestilledfromfermented grape) • Tourism (National)

  17. Evolution of the Institutional Portfolio 2006 – 2010 (US$)

  18. Disbursements, Portfolio and Clients on Productive Chains

  19. Lessons Learned

  20. Lessons Learned L1.Explanation of focuses through institutional documents L2. Sub sectorial specialization articulates other focuses L3. Long-term funds L4. Information and knowledge

  21. Lessons Learned L4. Business services are essential for the product value L5. Innovation L6. Influence on public policies L7. Accountability

  22. THANK YOU rcasanovas@idepro.org BRASIL NUT jcaba@idepro.org MADERA ivargas@idepro.org GRAPES, WINES AND SINGANIS vavila@idepro.org TEXTILE CONFECTIONS eguerrero@idepro.org QUINOA AND CAMELIDS jsoto@idepro.org TOURISM acatacora@idepro.org www.idepro.org PHOTOGRAPHS CREDITS: Alain Messilli. Thomas Cristofoletti. Tony Suarez. IDEPRO

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