1. Royal Quinoa (Quinua Real) A great opportunity for Bolivian producers Bolivia-Sudamérica Noviembre 2010

2.  Uyuni Salt Lake (Salar de Uyuni)  45.000 ha cultivated - 26.000 mt of food  Annual export of $us 10 MM  Average family-based farming between 2 and 8 ha  Uyuni Salt Lake (Salar de Uyuni)  45.000 ha cultivated - 26.000 mt of food  Annual export of $us 10 MM  Average family-based farming between 2 and 8 ha

3.  15.000 peasants: self-consumption and commercial crops  60.000 persons taking care of the crops

4. INCLUSIVE BUSINESS FINANCING IN THE CHAIN OF QUINOA Disbursements:US$ 501,500 Portfolio:US$ 205,000 Default:0% Administrative Efficiency:6.1% Self-sufficiency:128% The initiative presented to the European Microfinance Award on Value Chain Finance Facilitate the production of organic quinoa promoting fairer trade relations between peasant producers and processors OBJECTIVE:BENEFICIARIES: 271 peasant producers CLIENTS: 4 primary processors RESULTS, 2 years of operation:

5. How do we generate sustainable benefices for all involved actors?

6. How do we generate added value for primary producers? How do we generate added value for primary producers? Inclusive business Knowledge Fair rules Model and product

7. Results for peasant producers Income: 94,6% Income: 94,6% Utilities: 101,7% Utilities: 101,7% Sales:86,7% Sales:86,7% Net assets: 13,3% Net assets: 13,3% Employment:11,67% Employment:11,67%

8. How can we assure lasting links? PRODUCER GATHERING AND TRANSFORMATION COMPANIES CERTIFICATION COMPANIES PRODUCERS ASSOCIATION Community Municipality Goods and services provider Productive chain focus Productive chain focus Building social stock Financing product Financing product Financing model Financing model

9. Financial product: Discount Rate QUINOA TRANSFORMER Oriented to working capital and conditioned to cash payments Oriented to working capital and conditioned to cash payments Finance applying a discount rate (4% to 8% flat) with mortgage guarantee. Finance applying a discount rate (4% to 8% flat) with mortgage guarantee. Diagnosis and improvement plan for the producer and the buyer focusing on organic production. Diagnosis and improvement plan for the producer and the buyer focusing on organic production. Single payment at the end of the credit. Deadlines according to business cycle - 3 months to 1 year Single payment at the end of the credit. Deadlines according to business cycle - 3 months to 1 year Amounts from US$ 30,000 to US$ 90,000 Amounts from US$ 30,000 to US$ 90,000 ASSOCIATED PRODUCERS

10. Intervention Model Commercial articulation diagnosis Agreement Credit contract Buying and selling agreement Enterprise payment to the producers Amortization Balance payment to the producers Monitor results Gathering and primary transformation Producers Association IDEPRO Organic Certification Agency BDS FS 1 1 3 3 4 4 5 5 7 7 8 8 9 9 Business Plan 2 2 Product Delivery 6 6 10

11. Cash payment and competitive prices Long-term relationships with transformers Technical services towards organic production Organic certification Better income Increase in supplier bases Operating capital Technical assistance services Consolidation of intervention strategies Promotion of impact results Reduction on transaction costs (increasing demand) and financial recovery Results - Benefits

12. How can we mitigate the risks? Integral focus Conditions of the financial product Better information and more investment

13. TYPE OF SERVICE 2006200720082009sep-10 QUINOA0% PRO-Chains0,06%0,57%0,67%1,38%0,97% PRO-Micro2,85%3,28% 1,32%0,93% Default at IDEPRO and the Industry

14. How do we scale-up results?

15. Six value chain financing on operation Brasil nutCertified timber Textile confections Grapes, wines and singanis Camelid fiber, meat and leather Tourism

16. Value chains and selected regions Brasil nut Timber Textile confections Camelids and Quinoa Grape, wines and Singanis (dry colorless alcoholic beverage destilled from fermented grape) Tourism (National)

17. Evolution of the Institutional Portfolio 2006 – 2010 (US$)

18. Disbursements, Portfolio and Clients on Productive Chains CHAIN2007sep-10TOTAL DISBURSEMENTS773,7923,214.1529,552.883 PORTFOLIO871,4735,622.629 Textiles and confections63,905272,053 Tourism23,506320,965 Timber68,8011,064.890 Quinoa and camelids208,8541,595.933 Grape, wines and singanis125,7591,268.205 Brazil nut380,6481,100.584 CLIENTS1703911,116

19. Lessons Learned

20. L1.Explanation of focuses through institutional documents L2. Sub sectorial specialization articulates other focuses L3. Long-term funds L4. Information and knowledge Lessons Learned

21. L4. Business services are essential for the product value L5. Innovation L6. Influence on public policies L7. Accountability

22. THANK YOU rcasanovas@idepro.org BRASIL NUT jcaba@idepro.orgjcaba@idepro.org MADERA ivargas@idepro.orgivargas@idepro.org GRAPES, WINES AND SINGANIS vavila@idepro.orgvavila@idepro.org TEXTILE CONFECTIONS eguerrero@idepro.orgeguerrero@idepro.org QUINOA AND CAMELIDS jsoto@idepro.orgjsoto@idepro.org TOURISM acatacora@idepro.orgacatacora@idepro.org www.idepro.org PHOTOGRAPHS CREDITS: Alain Messilli. Thomas Cristofoletti. Tony Suarez. IDEPRO