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    ICCO

    ICCO/KerkinActie is Main Partner of the BiD Network and the BiD Challenge. ICCO/KerkinActie gives worlwide support to pro active ...

 
Business start-up

2

Going into a Sweet Adventure

The central point of this idea consists of promoting, among farmers of the tropical zones , the production of STEVIA, a plant native to America which replaces, with great advantage, to sugar cane as far as its sweetening properties is concerned ( it is 200 — 450 times sweeter than sugar). In addition, due to its component elements it is a healthy product, recommended for people who suffer from diabetes or who do not want a fattening product in their diet.
It is highly prized in the international markets but it is not well known among the small farmers of tropical lands.
At the current market prizes, stevia is one of the most profitable harvests for the tropics. If we have the chance to process Stevia into a cristal —like product, the surplus will go back to the producers.

Although the present area of cultivation is small, because of its multiple advantages Stevia could be cultivated in a wide range of soils around the world.

The Business

What is your product/service?

The cultivation of stevia is highly profitable as compared with other tropical products. A hectare of stevia might bring up to 3.000 Kg. of dried leaves which, at an average prize of us$ 4 per Kg. would mean as much as us$ 12.000 .
Since we are not promoting cultivation at large scale neither the replacement of existing crops, stevia cultivation could become a complementary although permanent income for farmers growing it in plots ranging from 500 to 2.000 square meters.
Since the cost per Kg. of dried stevia range between us$ 1.10 to 1.50, the minimum profit a farmer will make is us$ 1.00 to 1.50 per Kg (given an additional 30%-50% for marketing and transport). In a 1.000 sq. meter plot one family will get some us$ 1.500
If we have 2.000 families cultivating a 1.000 sq. meter plot each in the first two years, we might expect an income of us$ 3.000.000 to us$ 4.000.000

We have two target groups, one is that of small farmers who may cultivate this product, the other are the people, companies, businessmen and others which will consume the product as raw material or processed as an industrial product.
2.1 The small farmers of the tropical lands of Bolivia (as many in other neighboring countries) are quite poor, with a low income and rather precarious conditions of living. The demand to be satisfied is referred to the need they have of technical assistance and shoots of stevia. We intend to sell them both, the service as well as the appropriate plants for a given ecological niche.
2.2 The other customers are the consumers of alternative sweetening products in the cities and other centers of Europe, the United States and other countries. This population constitutes a quite large market demmand which for the moment cannot be satisfied but in a minimal proportion.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

In a way it is a new activity for this region because very few people in the proposed area (Bolivia, Peru, Ecuador) know how to cultivate stevia. As far as the processing, only Brazil in the region has a processing technology.
Potential competitors are companies which might get ahead in a short time providing they have the know how and the needed money .
My idea stands out because we have already had contacts with farmers who have tried the cultivation of Stevia and are willing to expand their plots if they are provided with more plants, technical assistance and a steady market demand . Besides, we are planning to solve one of the main problems, the invasion of weeds by growing plants in individual pots, in which case the productivity increases as much as twice or three times the present volumes of harvest.
If we come to the processing we will have the chance to absorb the promoted production and that provided by other suppliers.

At the time being we do not have business partners yet, although we have contacts with some agronomists and biologists who have an in depth knowledge of the technical aspects involved in stevia cultivation and are interested in being part of the association. At any rate, the potential membership of these technicians is highly valuable for the success of the proposed activity since they know the results
obtained up to now in the different places where the cultivation of stevia was tried.

We have thought of two levels of marketing: a) With potential producers and b) With consumers of the stevia, dried or processed. In the case of a) we will visit the potencial areas apropriate for stevia and will inform, in communal meetings, about the perspectives of stevia and will draw a list of all interested and willing people to cultivate offering them technical assistance and the plants they need. In the case of b) we will visit companies, food and beverage industries, pharmaceutical product factories and other potential groups or institutions who might use substitutes for sugar trying at the same time to reach some initial agreements referring to their interest of buying dried or processed stevia.
Selling the product directly in the streets or indirectly, through the companies or commercial dealers:
a) We intend to reach some 2.000 stevia producers in two years
b) In the same period, we expect to reach near or around 50.000 consumers of stevia as a sweetening product.

Development

How does your business improve the local living standards (social and environmental)?

As we have seen cultivation of stevia allows a significant income for the families of the small farmers. We think that women in the families cultivating stevia will be in a better position of authority and respect since most of the tasks of cultivation will be in their hands due to the special care and attention that is required in certain stages of the cultivation process. Thus income generated can properly be managed by women.
The income generated will remain fairly constant in the near future since the growth in the levels of production as proposed will not keep up with the growth of the market demand neither it is expected a boom in the number of additional suppliers. On the contrary, it might be expected a drastic growth of the market demand if the present trends continue in the mid and long term.

2 comments

Stevia in India Like to join hand in the effort

I am from India
Keen Interest in Stevia
Like to join hand for development of stevia and stevia products.
Please contact back.
Thanks
Sourabh Agarwal
0091 9811988880
New Delhi India
stevialife@gmail.com

28 Mar 07, 14:18 SOURABH AGARWAL, 28 Mar 07, 14:18

www.steviabiotech.com

www.steviabiotech.com

28 Mar 07, 14:19 SOURABH AGARWAL, 28 Mar 07, 14:19