This week we completed the nursery certification project on our last trip to Nueva Segovia. Together with our TechnoServe partners we prepared the materials for the final meeting to help the producers present their business models.

I am happy with what we have achieved and how it can serve Ever in the future:

  • This project helped him understand the value of his product and its differentiation on the market thanks to the certification
  • Ever learned about the norms he has to follow in order to get certified and the agricultural practices important for both the health and quality of his plants
  • This is the first time Ever has found out what his costs of production are. By selling the plants at 3 cordobas (0.10 cents) in the past he was selling at cost which of course is not a viable business model. We set the prices of certified plants at 6 cordobas with 38% profit margin.
  • We provided Ever with a financial projection. To start the production of 24,000 plants in the first year he needs an initial investment of $5,000. This includes the costs of certification by the government (IPSA) which will be covered by TechnoServe. The rest will require financing from the cooperative with whom Ever is associated (banks do not provide loans to small producers). His investment will be paid back in the third year and after 5 years he will receive 2.9 dollars for every dollar he’s invested.

Ever was not able to come to our final meeting on Friday to deliver the presentation so we decided to go and visit him on his farm in the mountains! We showed him what we prepared and discussed the future of his nursery and the certification program. Ever’s nursery will be one of the first certified nurseries in the market and there is a strong desire from all parties involved for him to succeed.

The partnership between producers, IPSA and TechnoServe is a good opportunity for Ever which he will hopefully take advantage of by working on his new business in line with the recommendations he has received. All in all, I am convinced this has been a rewarding experience for everyone!

The Volunteer

Marzena Loos

Senior Associate, Shareholder Services & Funds Administration

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