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Beans packaging in the village
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News
farip board recently approved financing for a first milestone of this idea by Adelina. At present beans are being sourced and stocked in metal silos, for then testing the technology in the village and testing whether consumers in towns like clean, dry beans packaged in transparent plastic bags.
Short description of venture
Adelina is a young woman in Magunguli village in Tanzania. With a team of people from the village she wants to run the business of cleaning, drying and packaging beans in the village for end-consumers in town. Tanzania Biashara Mapema (TBM), a local service company that provides the Transaction Security Services (TSS) will pay farmers an advance when they deliver beans. Then TBM pays Adelinas team a pre-fixed fee for each bag of 5kg or 10kg clean and dried beans they have made ready for marketing to the end-consumers. This fee will be a middle cost of a TSS deal by Biashara Mapema. On behalf of the farmers TBM then markets the packaged beans to retail shops in the urban centres who sell to the big majority of low-income consumers (BOP markets; bottom-of-the-pyramid in economic terms).
There are two innovations here: a) The added value of cleaning and packaging is earned in the village and b) There will be a new branded product of clean beans with standard quality available for urban consumers . This creates incomes in the village for the packaging. Plus the TSS mechanisms allow farmers to share in the added value up to the sale of their beans to urban retail shops. TBM earns a commission on those sales.
Status of financing | USD committed | USD not yet raised |
1. First milestone: Technical proof of concept for sealing plastic bags with beans and test marketing of 3 tons | 4'000 | 700 |
2. Second milestone: Proof of operational concept with 10 tons of beans (estimate). To be projected as TSS pilot deal. | 0 | 25'000 |
3. Third milestone: Proof of scaling up concept with at least 20 tons and repeat deals. | not yet budget | |
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Shall we keep you regularly informed on progress and bottlenecks?
Do you want to discuss this venture with FARIP?
Send Email to ueli@farip.ch
