Creating Youth Business Acumen and Micro-enterprise in Rural Nicaragua Fabretto Children’s Foundation Mayorga Coffee Roasters September 2013
TABLE OF CONTENTS Contents • About Fabretto • SAT Program Overview • Microenterprise & SAT • Impact Assessment • Case Studies SEPTEMBER 2013 2
ABOUT FABRETTO History SEPTEMBER 2013 3
FABRETTO’S MISSION To empower underserved children and their families in Nicaragua to reach their full potential, improve their livelihoods, and take advantage of economic opportunity through education and nutrition.
ABOUT FABRETTO 5
SAT PROGRAM OVERVIEW SAT: Sistema de Aprendizaje Tutorial (Tutorial Learning System) SEPTEMBER 2013 6
SAT PROGRAM OVERVIEW The SAT Program • Non-formal high school degree program • Founded by FUNDAEC in the 1970’s • Focus on sustainable agriculture and rural development • Uses trained tutors to facilitate learning SEPTEMBER 2013 7
SAT PROGRAM OVERVIEW The Need • Just 20% of rural Nicaraguans continue beyond 6 th grade • SAT serves 760 students in 40 communities • SAT reaches a diverse, traditionally underserved population: young women, young parents, older students SEPTEMBER 2013 8
SAT PROGRAM OVERVIEW Methodology • 5 competencies : communication, mathematics, science, technology, and community service • Hands-on learning • Develops strong values • Fosters entrepreneurship SEPTEMBER 2013 9
SAT PROGRAM OVERVIEW SAT Impact in 2013 200 760 student cooperative members enrolled SAT students 100% 22 of SAT graduates are employed SAT small business owners or furthering education Tinker Foundation/UPenn study SEPTEMBER 2013 10
MICROENTERPRISE The SAT Difference: Microenterprise M oving from “Learn by Doing” to “Learn by Earning” SEPTEMBER 2013 11
MICROENTERPRISE Microenterprise & SAT Fabretto’s Goal: Grow student businesses and link student producers to value chains to contribute to rural community development SEPTEMBER 2013 12
MICROENTERPRISE Role of SAT • Foster values: responsibility, organization, ethics • Develop technical skills • Anchor clients and link students with existing markets SEPTEMBER 2013 13
MICROENTERPRISE Process Learn Practice Purpose Profit Case se Study: udy: Comp omposting osting Practice Earn money Science lesson Offer compost composting from sale of about to local techniques in organic composting producers Fabretto garden compost SEPTEMBER 2013 14
MICROENTERPRISE Connecting Students to Markets • Fabretto develops relationships with buyers • Encourage corporate social responsibility and investment in education • Connection with Mayorga Coffee SEPTEMBER 2013 15
MICROENTERPRISE • We are importers, roasters, wholesalers and retailers of sustainably grown specialty coffees. • We have been partnering with Fabretto since 2007. • How we begun partnering with Fabretto. September 2013 16
MICROENTERPRISE Our role in the strategic partnership with Fabretto: • Informing consumers that that they are ultimately responsible of how an industry behaves and that they can change it, by choosing where they decide to spend/invest their money. As a consumer you can make a significant difference in other people’s lives and change industry standards. • We translate the consumers’ choice to buy from us; we take it very seriously that we are responsible for sourcing sustainably - both socially and environmentally conscious decision making. There is a close link between economic growth of local communities and maintaining environmental health of their natural resources. • We do this by buying coffee to craft roast from cooperatives and small agricultural producers whom are fostering growth in their local communities, empowering women and youths with education and nutrition. Coffee serves as a substantial tool for empowerment and development of the producing communities. • Creating a stable market for agricultural producers to continue their trade with confidence and without reservations of not being able to sell their products in local markets. September 2013 17
MICROENTERPRISE Partnering with Fabretto allows us to concentrate on what we do best: roasting, marketing, and engaging consumers . Meanwhile, Fabretto can gain funding from sales and do what they do best, creating growth in key points of developing communities. September 2013 18
MICROENTERPRISE Our Sourcing Model , which allows us to compensate producers fairly, while still allowing Mayorga Coffee to keep competitive pricing: FARMER MILL ROASTER RETAILER CONSUMER FINANCING/RISK MANAGEMENT OPEN COMMUNICATION & SHARED VALUES BETWEEN ALL PARTICIPANTS September 2013 19
MICROENTERPRISE Creating future opportunities with Fabretto: Coffee is just one of many tools to help underprivileged communities. We are adapting the same values, sourcing principles, and sourcing model to other agricultural products; teas, chia seeds, cacao, honey, bee pollen, X-product. ? What next.. Selling handmade Pine needle baskets, made by women in the Cusmapa community, in our retail stores for example , creates an additional marketplace to generate second incomes for these women and their families. Aside from the monetary benefit, young women grow confidence in themselves, which helps them assume more prominent roles in their communities and in their personal lives. September 2013 20
MICROENTERPRISE Creating future opportunities with Fabretto: Continuing to grow as a company = continued growth for Fabretto and more funding of important youth development projects… Portions of our proceeds are donated to Fabretto to invest where they see best fit. September 2013 21
IMPACT ASSESSMENT Impact Assessment • Measure Progress in Poverty Index (PPI) • Current stage: collecting large-scale baseline information • Data will be collected yearly to trace changes in behavior, health, income generation, and overall community development to student economic activity SEPTEMBER 2013 22
Moving Forward • Provide access to credit • Use student knowledge to build community production capacity Example: Students learn about soil sampling; apply knowledge to improve organic fertilizers OCTOBER 11, 2013 SAMPLE PRESENTATION 23
CASE STUDIES
CASE STUDIES Coffee • 5 de Junio Cooperative founded June 5, 2001 • 300 producers • 20 students and families produce organic compost • Partnership with Mayorga Coffee to produce and sell School Grounds coffee SEPTEMBER 2013 25
CASE STUDIES Honey • Buyer: Inglemann Exporter (to Europe) • 5 Fabretto youth producers • Work with coffee cooperative • In April 2013, sale of first 90 kilos of honey • 3 of the student beekeepers in Cusmapa make $200/month profit SEPTEMBER 2013 26
CASE STUDIES Tabasco Chili Peppers • Chiles de Nicaragua S.A., a key supplier to the McIlhenny Company • Collaboration began June 2012 • 5 producers SEPTEMBER 2013 27
CASE STUDIES Pineapple & Dragonfruit • Connection to Burke Agro to produce organic pineapple and dragon fruit • Dried fruit product sold under Sol Simple brand in U.S. • Example of corporate social responsibility and a large company integrating small producers into value- added chain and export market SEPTEMBER 2013 28
Questions and Comments SEPTEMBER 2013 29
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