WAYUUMANGROVEBEEKEEPINGGEE PROJECT

PromotingaSustainableFuture

TEAM20 OmisakinYinkaWaliyat ZeeshanArshad RosarioTatisMarin MariaPaulinaLopezMorales ClaudiaDucrot LeeChongDe MariaFernandaGallego

BusinessProposal
TheWayuuReforestationandBeekeepingInitiativeisabusinessaimedatcreatinga moreeconomicallyandenvironmentallysustainablefuturefortheIndigenousWayuu Community.Ourprojecthastwointerlacingcomponentsthefirstistocreatea sustainablebeekeepingbusinessusingwildandfree buildingcoloniesthatsourcethenectarfromthe mangroveplantslocatedontheLaGuajiraPeninsula thehoneyextractedwillbethenexportedtotheEUin bulkcontainerstocollaboratewithotherexporthoney cooperativestopackage,marketandsell. Thesecondcomponentofthisbusinesswillbedealing withreforestationoftheblack,redandwhitemangrove plantsthatprovidethesweetnectartothebeesandalsoreplantingotherplantssuchas perennial&indigointotheecosystemthisaspectisimportantforthefuturegrowthof thehoneyproductionandisimperativetothelongtermsustainabilityofthemangrove ecosystemwhichhasbeenseriouslyerodedfromtheeffectsofshrimpfarminginthe region.Beekeepingisasustainableincomegeneratingactivitythatispracticedby manypeopleandcompaniesaroundtheworld.However,beekeepingontheLa GuarjiraPeninsulahasbeencurrentlyunexploredasanoptionforsustainable development.

BusinessOverview
WAYUU

TheWayuucommunityareanindigenousgroupthatoccupytheLaGuajiraPeninsula whichspanstheVenezuelaColombiaborderonthe CaribbeanSeaCoast.ThelandinhabitedbytheWayuu communityisveryaridandnotveryidealforharvesting crops.TheWayuurelyonsaltproduction(throughthe mangroves),subsistencefarminggrazinganimalssuchas goatsandcowsandhaverecentlysomeartisanshave begantotradetheirtraditionalwovenchinchorros (hammocks)andmochilas(bags)toworldmarkets. ProblemsthattheWayuupeoplefaceisthescarcityof resources,presenceofviolentgroupsintheareaand extractiveminingandenergycompaniesexploitingtheir landresources. WhiletheWayuuslandisdesolateandisnotveryproductiveforharvestingcrops,the WayuuhasaccesstothelargeMangroveecosystemaroundsomeofitsshorelinewhich actsasabufferzonebetweenthelandandtheseas.Mangroveshavevarietyofuses: Mangrovestwigsprovideagoodsubstituteforcharcoal,provideagoodchoiceoffeed forgrazinganimalssuchascows,buffalosandgoats,provide thefoodthatthemanycrustaceansdependonforsurvival andattractandsustainthebeesthatfacilitateapiculture activities.AccesstoalargeMangroveecosystemhasbeen exploitedforshrimpfarmingbytheWayuupeopleasthe mangroverootsprovideasuitablehomeforalargenumber

ofmarinefaunasuchasshrimpsandprawns.Particularlyasthedemandforshrimps hasincreased,collectingshrimpsfrommangroveshasbecomeaveryattractive enterprise. Mangroveshaveother,veryimportantenvironmentalfunctions.Theyareamongthe worldsmostuniqueandproductiveecosystemsthatexhibitvariousadaptationsin differentenvironments.Mangrovesprovideanaturalbarriertothedamagingeffectof stormsandprotecttheforeshoresfromsoilerosionandflooding.DespitetheWayuus relianceonshrimpfarmingforeconomicreasons,shrimpfarmingunderitscurrent practices,hasanegativeimpactonthelongtermsustainabilityofthemangrove ecosystembecauseitimpliescuttingdownmanyofthefloratomakeroomforshrimp pondsandeventuallystripsthemangroveofmuchofitsfaunawhichisessentialforits survival. Mangroveshavealwaysbeengoodhabitatsforbeecoloniesbecausemangroveflora suppliesayearroundsourceofnectarandpollen,providesanunlimitedsourceof waterandthelevelofvegetationisagoodshelterforhivesfromunpredictableweather.

BusinessObjectives

Createasustainablegreenventurethatlessenstheimpactofcurrentactivities (suchasshrimpfarming)thatthreatenstodestroyavaluableecosystemthat protectstheWayuuslandfromsoilerosion,greenhousegasesandtheimpact ofstormsonshorestabilizationandsoilerosion. Tocontinuallystrengthenthemangroveecosystemthroughpropagation throughcreatinganurseryfromparenttrees,andasanindirectresultof beekeeping(beesarenaturalpollinators).Replantingthemangroveswillhelp producemorenectarwhichwillenhancethecapacitytohandlemorebee coloniesandthusincreasefuturehoneyproduction. ToimprovethebiodiversityoftheLaGuajiraPeninsula,whichwillbenefitthe longtermsustainabilityoftheWayuuPeople. TheProduct Ourproductis100%naturalcertifiedorganicmangrovehoneysourcedfromthe blackmangrovetrees.Withfundingfromourcreditorsweplantobecomea CertifiedOrganichoneyproducerinour1st2yearsofbusiness.Certified OrganichoneyishighlysoughtafterintheEUmarketsduetomanycold wintersandlackofunpollutedareasintheEUwhichinhibitsorganic beekeepingpractices.Incontrast,ourproductisorganicbydefaultas mangrovesandbalmyconditionsareanaturalbreedinggroundforbees.We willnotuseanyadditives,chemicals,syntheticfertilisersorpesticidesinany aspectofthesupplychainasthesearecostlyandtheirpresencecoulddamage ourbeesanddegradethemangroveecosystem.Wewillconserve,reuseandrecycleall materialsusedintheoperationandmostmaterialsusedforourhivesandextraction techniqueswillbeusedfromlocalingredientsorsourcedfromlocalsuppliers.

BeekeepingMethod

Wewillusetopbarhivesforthebeestodeveloptheirnestandcollecthoney.This methodisidealforourbusinessasthebarscanbeeasilyattachedtothemangroves whichmeansthebeescanbekeptcloseaspossiblytotheirnaturalhome.Topbarhives arealsoinexpensiveastheycanbeconstructedoutoflocalresources(Wewillbeusing thetoughinsideofthecactusatraditionalbuildingmaterialusedbytheWayuu

peoplethatissimilartobamboo).Whenitistimetoharvestthehoney,smokingwillbe usetocalmthehoneysandmovethemawayfromthehoneycomb.Thehoneywillthen beextractedusingthetraditionalextractionmethod.

MangroveReplanting

Weplantopropagatethemangrovetressbytakingseedsandsamplingsfromthe parenttrees.Placingtheminnurseryinashallowtidalarea(surroundedbyafence madefrominnercacti)willgivethemangrovesachancetogrowbeforetheyareplaced backintotheecosystem.Wewillcollecttheseedsthathavefallenonthegroundforthe black,redandwhitespecies.Ourhiredhelpwillprovidetheknowledgeneededtocarry outthegerminationprocessandgiveadviceforfuturemaintenanceandreplanting.We willalsoplantotherplantspecies(notpartofthemangroves)inordertofurtherassist thebeescollectingpollen.Thesespecieswillhavetobetolerancetodroughtsowewill useperennial,windowboxes,indigo,milkweed,coneflowerwhichwewillsource locally.

TargetMarket:TheEU
AccordingtotheCBIreportthereisasteadygrowingmarketforfairtradehoney particularlyinGermany,UK,Spain,Italy,BelgiumandFrance..By2007thismarkethad reached1.7thousandtonnesandseemstobegrowingatasteadyrate.

MarketAnalysis

Marketopportunity

On taking the CBI sponsorship, the Wayuu community will be exporting within 18 months, afterthe necessary beehive lay outbe established in accordance to European standards. Beehive installed capacity should be at least 125 million pounds a year of natural honey to ensure full container deliveries on a monthly basis since using a cooperativeapproachforconsolidatedshipments. For the Wayuu community Honey beekeeping is attractive since it is not just a profitableactivitybutagreenone.Itisnotincontemptwithnature,onthecontraryit is pro nature and in consequence this can be a strong argument to count on CBI sponsorshipprogramstoentertheEuropeanmarket.Theseprogramsworkonanaudit basisapproach,thathelpstheagencydetectthoseorganizationsthathavethewilland strongcommitmenttomeetCBIstandardsthatwouldenablethemtoexporttoEurope. Honey global market is likely to carry a deficit due to climate challenging issues. According to the CBI report, climate changes has become an issue for major producer countries therefore it is probable that prices and demand remain strong. EU consumers praised natural honey as a basic nourishing for their diet. European consumers do not appreciate Chinas natural honey due to past contamination of chloramphenicolinit.

Riskandbarriers
Fundingfortheproject TheEUonlyallowsentranceofbulkhoney.Overseaspackedhoneyisnotallowed. Nochemicalsareallowedtobeusedinbeehivesoronthebees. Quality assurance/ meeting EU and Ecolabel standards and requirements EnsuringtheWayuupeoplefullyunderstandtheappropriatemethods Lack of access to EU market establish strategic alliances with EU import packer cooperatives

Fulfill basic EU import requirements: Health Certificate, approved EU Border InspectionPost,EUApprovaloftheResiduesMonitoringPlan(RMP)

CompetitiveAdvantage

Usingsustainablemethodsandinvestingintotheecosystemisconsidereda valueaddingactivityanditallowstheproductaccessintotheEUmarketsand makesourproductsmoreappealingtobuyers. Asasmallproducerwehavetheadvantageofbeingabletomonitoreveryaspect ofthesupplychaincloselyandmakesureweareadheringtotheorganic standards. SecuremarketaccessthroughCBIsponsorshipandcollaboratingwithother honeycompaniesmeansthatwedonothavetofocusonmarketing.Byselling thewholesalehoneytoimporterswecanfocussolelyontheproductionofhoney andinvestingourreturnsbackintotheecosystem Duetothebiologicallycomplexitiesofmangroves,workingwithhoney mangrovesprovidesaddedbenefitstothehoneyextractionastermitesandants (problemswithnonmangrovebeekeepers)arenotmuchofaproblemand mangrovesarealsowellprotectedfromseasonalbushfiresandstorms NichemarketspecialityorganichoneyiswellsoughtafterinEuropeanmarkets.

Businessstrategies

Partnerships Duetoourlowproductionvolumeswewillbemakingpartnershipswithpacker cooperativesintheEU.Thesepackercooperativesareagroupofbeekeeperswho purchase,packandmarkethoney,mostlyundertheirownlabel.Collaboratingwith other(muchbigger)companieswillallowourcompanytofocusontheproductionof honeyandpreservingthemangroveecosystem.Potentialpartnershipscouldbewith LamexFoodsGroupUKwhospecialiseinallsortsofdifferenthoneyandbuyfrom suppliersallaroundtheworldorF.E.E.D.M(EuropeanFederationofHoneyPackersand Distributors)whoimportalargechunkoftheirhoneyinfromothercountriesand requireveryhighqualitystandards. An partnership with the CBI (Centre for the Promotion of Imports from developingcountries)isimportantastheyareinterestedinhelpinginitiativesin developingcountriesbecomesuccessfulinEUmarkets.Thereexperiencesand knowhowcanprovideuswithmarketknowledgeandcontacts Ourcompanywillalsobelookingtowardscreatingrelationshipswithsomelocal organizationssuchas:SociedadGeogrficadeColombia&AcademiadeCiencias Geogrficas both who work as a government advisory bodies and have experienceintheColombianmangroves.Theselocalsupportsystemscanfurther helptheWayucommunitytofulfilltherequirementsforEUimports

Resources
NaturalResources:Bees(sourcedfromalocalsupplier...willbe,Mangroves Humanresources:Ourcompanywillhiretwoadditionalpeople(fromColombia) onacontractualbasistohelpwithtrainingtheWayuuinbeekeepingmethods andtrainingtheWayuuinreplantingtheMangrovesinnurseriesusingthe parenttreesforseeds.

BeeKeepingequipment:TopBarHives(madeforminnercacti),protective clothing(sourcedlocally),asmoker,knifes,abucket,beebrush,extractor containeranddrumsfortransport.

Distributionandtransport

Thebestoptionistotransportthehoneybeebysea,duetotherelationinweightand volumeoccupiedbytheproductandalsotheWayuterritory(PeninsulaofGuajira)is veryclosetothelargestseaportofColombiaPuertoBolivar Thetransportisusuallyinbulk,instandardlacquered,epoxylinedsteeldrums,which cancontain200litres/300kgofhoney.1Theconditionsoftheneedtobefreeofodors and smells and not used before for chemicals. The drums must have a rubber seal aroundtheclosure.2 Afullcontainercouldcarryapproximately62drumsof300kgofhoney.

GrowthStrategies

StageOne(year1year3):Establish60100hives;Beginexportingafter 18months;Beginmangrovenurseryprogrammeandstartgrowingotherplants. WeplantobecomecertifiedOrganicintheEU(EcoLable)fromthemomentof inception.ThiswillincreaseourpremiumsintheEUmarketsby10%andgive usabettercompetitiveadvantagewhennegotiatingwithbuyers.Beingfroma developingcountryalsohasadvantagesinthecostoftheEuropeanEcolabel certificationfeesastheirarereductionsintheapplicationandintheannualFee. StageTwo(year35):Astheskillsandresources(bothhivenumbersand equipment)increasessowillthelevelofourhoneybeeproductivity.Afterthe Wayuuhasbecomeestablisheditcanintroducevalueaddingactivitiesusing wastesuchasbeeswaxtocreateotherproductstheWayuucanselltotourists (forexampleWayuuointment) StageThree(year510):Atthisstagethefirstcoupleofmangrovenurseries shouldbereadytobereplantedbackintothemangrovesystemandtheprocess restarted.Atthisstagethecompanyshouldhavepayedbackallofitsinvestors/ fundersandbemakingsomenicehealthyprofits.

FinancialStrategy
Wewillliketostartsmallandtrytokeepourcostatminimumwithoutcompromising thequalityofourhoney.Wewillraisetherequiredcapitalthroughdonationfundsand grantsbyWorldBank,UNDPandCBIsponsorship.Wealsoplanongainingfundingfor ourorganiccertificationprocesswithhelpfromtheEUEcolabelorganization.Weare anticipatingtocollectafairlygoodamountofmoney(requiredcapitalandoperational Cost). We are not choosing to apply for micro financing as you have to pledge some assettothebanktosecurealoaninwhichcasetheWayuucommunitywouldnotbe eligible. After 18 months the apiaries would be self sufficient to supply the ample numberofbeesandqueenstoexpandthebeefarm.Thisexpansionwillresultinmore honeyproductionandrevenues.

MangroveYearlyHiveHoneyProduction=30kg/66LbSalePriceLb=$2.49 200*66=13200Lb13200*2.49=$32868 *NoteinUSdollars

BalanceSheet Assets Cash Livestock(Bees) Tools&Equiptment Operatingexpenses Total Equity $1,000 Capital $18,000 $4,953 $8,000 $31,953 Year1 $ $(5,000) $(3,000) $(8,000) $31,953 Year2 $32868 $(7,000) $(10,000) $15868 $ $31,953

ProjectedIncomeStatement Sales COGS Operatingexpenses *IncomeTaxExcluded NetIncome

CashFlowstatement Cashflowfromoperationactivities CashFlowfromInvestment Activities TotalCashFlow cashreceivedfromsales cashpaidforexpenses purchaseoflivestock(bees+queen) purchaseoftoolandequipment Year1 $0 ($8,000) ($18,000) ($4,953) ($30,953) Year2 $32,868 ($17,000) 0 0 $15868

References
Battcock,M.H.(2009).ShrimpAquaculture,Sustainability,andtheEnvironment.USA: MangroveActionProject.

CBI.(2009).CBIMARKETSURVEY:THEHONEYANDOTHERBEEPRODUCTSMARKETIN THEEU.Retrieved2011,fromCenterforthePromotionofImportsfromDeveloping Countries(CBI):http://www.cbi.eu/marketinfo/cbi/?action=showDetails&id=5291 Chandler,P.(2009).KeepingBeesUsingtheTopbarBeekeepingMethod.RetrievedApril 5,2011,fromMotherEarthNews:http://www.motherearthnews.com/Sustainable Farming/TopBarBeekeepingMethod.aspx#ixzz1JFZatKUG EuropeanCommission.(2011,0219).EcoLabel.Retrieved0401,2011,fromEuropean CommissionEnvironment: http://ec.europa.eu/environment/ecolabel/ecolabelled_products/application_procedur e_en.htm Kathiresan,k.DistributionOfMangroves.CenterOfAdvanceStudyinMarineBiology: AnnamalaiUniversity. Lee,Geraldine.(2003).TheMangroveEcosystem.RetrievedApril02,2011,from MangroveManagementintheNorthernTerritory:ReportNumber25/2003D: http://www.nt.gov.au/nreta/wildlife/nature/pdf/mangroves/2003_mangrove_educati on_pack.pdf MinisteriodeCulturalaColombia.(2007).DireccindePoblaciones:Caracterizacindel puebloWayu.RetrievedApril5,2011,fromDireccindePoblaciones: http://www.mincultura.gov.co/index.php?idcategoria=41794 RangelBuitrago,N.,&Anfuso,G.(2009).AssessmentofCoastalVunerabilityinLa GuajiraPeninsula,ColombianCarribbeanSea.JournalofCoastalResearchCS56,792 796.