Map of Chiapas - areas with high concentration of soy growers

The areas in orange have the highest concentration of soy growers

Press on a truck

The Team thus far...

•Sonia Weiss Pick (HBS ‘12) is fascinated by ag. supply chains. Before b-school she designed a pilot that helps small dairy farmers in Mexico improve the yield and quality of their product and, in so doing, sell their product at a higher price to DANONE.

•Ferrante Benvenuti (Int. Business- Fletcher ’12) worked in a marginalized area of Buenos Aires where he set up various small businesses. He then helped to launch a consulting start-up in Milan focused on social business.

•Jeronimo Silva (Int. Business- Fletcher ’12) has experience in the Colombian agricultural sector, specifically on the flower and herbs export business. He also promoted the city of Bogota for FDI as part of a public-private venture involving the city government and chamber of commerce.

•Vagn Knudsen (HEC/MIT ’12)   has experience in finance and entrepreneurship in Colombia. From 2006 to 2010 he managed an industrial services firm that used scale of distribution to bring mobile laboratory services to manufacturing plants.

Expected financials

Growth strategy

Supply chain: traditional vs. Agilagro

Monetary benefits to small holder producers

We offer the small holders two modalities:

• They can sell us the seed for us to process and sell
• For the more entrepreneurial individual, we process their product for them to sell directly

As observed in the chart bellow, both options offer significant improvement over the price that the middlemen are currently offering:

Scenarios	Revenue to farmer	Assumptions
1) Current price for 1 ton of soy seeds (US$)	$              249	They receive 60% of spot price
2) Price they will receive for 1 ton of soy seed from Agilagro (US$)	$              332	We offer 80% of international spot price
Additional revenue	$               83
% increase	33%
3) Revenue they receive if they sell the oil and flour from one ton of soy themselves (US$)	$                     376	They are able to sell the oil at US$ 1.15 per lt and the flour at US$159 per ton
Additional revenue	$              127
% increase	51%

Example of Mobile Oilpress

The following link shows an amazing example of how an oilpress can be powered by a truck:

http://www.youtube.com/watch?v=poZioiHLIY4&feature=related

Phase 1: Chiapas our target geography

Chiapas is our target region for the following reasons:

• Most underdeveloped soy-farming practices
• Many small holder farmers
• Most price-sensitive market (lowest GDP per capita)
• Over 10,000 ha of land already in use by small holder soy farmers
• Close to other regions with small holder soy farming