UPAVIM Soy Food Processing, Marketing
& Nutrition Program: 2003-2004

UPA-SOY (name of proposed small business)

 

INTRODUCTION/BACKGROUND

Unidas para Vivir Mejor (UPAVIM - United to Live Better) is a women's association and non-profit organization with 70+ members. Members manage a clinic, pharmacy and medical laboratory, providing health care services for families living in barrio Esperanza, one of the most economically disadvantaged areas of Guatemala City. UPAVIM manages preschool and elementary education services and provides small financial scholarships to help make sure children are able to go to school. UPAVIM manages growth monitoring and breast feeding advocacy and support programs. Members and non-members are employed to produce and market crafts, funding from which helps support community medical and education services.

In 2000 UPAVIM contacted Plenty to request its assistance in establishing a soy food processing, marketing and nutrition education program. UPAVIM wanted to set up a soy food processing facility that will provide jobs, expand availability of low cost and high quality food sources, and help meet the costs of providing much needed social services within Barrio Esperanza. UPAVIM received contributions from the Palmer and Woods Foundations, Global Fund for Women and individuals to construct rooms and purchase small equipment needed to initiate bakery and soy food processing and marketing activities.

During 2001 Plenty representatives worked on-site with UPAVIM Staff in January and October. In the first quarter of the year Plenty helped develop a floor plan for the soy food processing room, and identify and design small equipment that will be used to process soybeans into milk. UPAVIM then had the processing room built. In the last quarter of the year a representative from Plenty helped locate and purchase an electric stone mill for the project and develop a plan for initiating food processing, marketing and nutrition education activities during 2002.

Over the next two years UPAVIM (2003-2004) has requested on-site technical assistance for its staff, supporting their efforts to develop food processing, distribution, marketing and small business management skills, and to initiate nutrition education services.

PROGRAM PURPOSE

Improve the ability of women living in barrio Esperanza, Guatemala City to address community nutrition, health care, employment and education issues through development and management of a business owned by a non-profit women's organization. Increase family knowledge of nutrition needs, how they can address those needs, and their access to high quality, low cost protein, vitamins and minerals within communities that have high percentages of undernourished children, pregnant and nursing mothers and elderly.

SPECIFIC OBJECTIVES

A) Assist UPAVIM staff and administrators improve knowledge and develop skills needed to initiate and sustain a food processing and marketing business.

B) Provide food processing, nutrition and home economics education services for a minimum of 180 economically disenfranchised families living in Esperanza, Guatemala City.

C) Provide technical assistance for 10 micro and small business entrepreneurs who want to enhance the nutrition value and marketability of traditional foods (breads, tortillas, meals, snacks) by adding fresh soy milk, tofu (cheese), flour and/or okara (pulpa) to their recipes.

MEANS TO ACHIEVE OBJECTIVES

A-1) Person to person, and group processing, marketing, business management, nutrition education skill development activities. Every aspect of operating the business will be carried out with staff over several months. Printed information will be provided, including a how to manual. Workshops will be organized and completed to address specific skilled development needs. Staff will learn how to approach retail owners and present the products they have for sale. Staff will visit SOYNICA's Casa Nutrem to exchange ideas with women who have several years of experience managing a soy foods processing and marketing enterprise.

Needed: Describe how ongoing technical support will be provided through email, mail and regular on-site services.

B-1) Staff will conduct presentations in cooperation with the Alt Ed Cent, Fe y Alegria School, UNICEF Health Center in Mezquital, Mayan Hands, Ninos y Ninas Sanas (a children's growth monitoring program). Participants will learn methods of making soy flour, milk, tofu (cheese) with cooking tools they have at home. Staff will use large charts to help participants understand nutrition values of common food sources and how they can ensure their children receive the nutrients they need.

C) Staff and technicians will help micro and small business entrepreneurs learn methods of including soy food products within traditional foods. This will include tortilla processors, micro entrepreneurs making chili rellenos and other corn masa based foods, bakeries and restaurants. Product development, suggestions for marketing, nutrition value improvements, market identification. Staff will also conduct processing and nutrition education activities at hospitals, school feeding programs, public health clinics and nutrition centers for undernourished children.

BUDGET

Personnel
Processing Staff (3) $333/month x 18 months) - $13,500/grant, UPAVIM ($4,500)
Marketing/Nut. Education (1) $333/month x 12) - 3,000/grant, UPAVIM (1,000)
On-Site Technical Services (- 12,000/grant, UPAVIM (2,000) & Plenty (2,000)
Off -Site Technical Services (equipment identification/purchase/shipping) -3,000/Plenty
Processing/Marketing Education (@ Nicaragua/SOYNICA) (5 x 300) - 1,500/grant,
Administration & Accounting (2) (200/month x 18) - 3,600/UPAVIM
sub-total $44,100

Equipment Needed
semi-manual milk packaging machine - $5,000/grant
ice cream machine - 5,000/grant
stainless steel blender (1 gallon) - 1,000/grant
small refrigerated truck - 10,000/grant
in-store refrigerators (10) - 10,000/grant
sub-total $31,000

Equipment Secured
steam jacketed kettle - $2,500/UPAVIM
plate heat exchanger - 2,000/UPAVIM
walk-in refrigerator - 2,000/UPAVIM
grinder - 260/UPAVIM
chest freezer - 800/UPAVIM
stainless steel sinks - 500/UPAVIM
stainless steel soy milk press - 700/UPAVIM
stainless steel tables (2) - 250/UPAVIM
stainless steel pots - 300/UPAVIM
heat sealers (2) - 220/UPAVIM
tofu/cheese press boxes (2) - 150/UPAVIM
assorted ss utensils, buckets, trays, cloth - 250/UPAVIM
sub-total $9,930

Packaging and Promotion
initial point of purchase materials - (100 retail outlets x $5.00) $500/grant
initial milk packaging materials - (50,000 - 500ml units x 0.05) 2,500/grant
newspaper/radio advertising - 1,800/grant
sub-total $4800

Building Rent
processing/packaging room ($100/month x 18) $1,800/UPAVIM
dry storage room (25/month x 18) 450/UPAVIM
sub-total $2,250

Product Nutrition Certification
soy milk - $100/grant
2 other products - $200/grant
sub-total $300

Facility/Product Sanitary Certification
soy milk - $200/grant

Total Program Costs - $94,580

Assistance Needed - $66,300
UPAVIM Contribution - $23,280
Plenty International Contribution - $5,000

UPAVIM staff, administration and the soy food specialists will conduct participatory evaluations of the project. At the end of each month individuals participating in the soy food processing and marketing education activities will be asked to complete a survey of the quality of services provided by the soy foods specialist. Questions will include but not be limited to: Were the education activities started and completed in a timely manner? Was the presenter organized and have a good understanding of information provided?

Did the presenter adequately answer the participant's questions? Was the information provided in a manner that was easy to understand? Are you able to explain information and/or demonstrate skills that were addressed at the workshops? Will the skills/information you learned help you address personal/family needs? and if so, how? (example: improved cooking or recipe development skills; awareness of family nutrition needs; ability to address family needs; ability to transfer skills to others; improved communications, reading or math skills..) How could the presenter and participants improve activities you attended? What other information, opportunities or resources would help you achieve your personal, family and employment goals?

During and at the conclusion of services provided by the soy food specialist, UPAVIM Administrators will evaluate:

If education activities adequately address the needs of UPAVIM and its Soy Foods Processing, Marketing and Nutrition Education Initiatives?

Is staff satisfied with the quality of technical services provided?

Is the food processing equipment operating as designed?

Have soy food specialists, with UPAVIM Staff, developed and distributed easy to understand procedures for processing, storing and marketing soy foods?

Can participants operate the processing equipment safely and effectively?

Are participants learning to make high quality soy foods?

Do participants understand and are they able to complete all cleaning and sanitation procedures?

Can participants explain to others about basic nutrition qualities and some of the benefits of including soy foods within traditional meals?

Are participants developing or improving customer service, sales and marketing skills?

Is staff developing sufficient food business management awareness, and implementation skills?

Is staff improving documentation skills and procedures?

Is staff developing regular retail and wholesale customers, how many of each?

What is the average monthly sales volume? What are average monthly operating costs?

During and after providing requested technical and education services, the soy food specialists will evaluate UPAVIM's soy foods processing staff in relation to their:

ability to operate equipment safely and effectively;

ability to produce soy products UPAVIM or SOYNICA wants to sell;

ability to complete all necessary cleaning and sanitation procedures;

knowledge of nutrition content of soy foods and nutritional needs of children;

improvement in micro/small business sales and marketing skills;

progress towards implementation of an initial or revised marketing plan; and continuing education needs following this phase of the project.

PRODUCTS COST AND VALUES

STAFF TIME
Processors (3) ($15/day/each) $45.US
Administration (2) ($5/day each) $10.
Labor cost $55.00

SOYMILK
50 lbs organic soybeans - ($0.25/lb) $12.50
5lbs sugar - ($0.25/lb) $1.25
chocolate - ($5./lb) $10.
sea moss - ($5./lb) $5.
packaging - ($0.02/unit) $8.
Milk ingredient/pack. cost = $81.75 / 400 half liter soy milk units, or $0.20 per unit
+
TORTILLA FILLING
75 lbs of pulpa/okara (bi-product from milk process with 4% protein, other nutrients)

50 lbs flour - (.25/lb) $12.50
thyme - (1.00/32 bunches) 1.
anato/ricada/achote - 1.
salt - .50
onions - (10lbs) 2.00
garlic - (10) 1.00
packaging (0.05/unit) 7.50
Tortilla filling ingredient/pack. cost = $25.50 / 150 - 1lb units, or $0.17 per unit

Assume UPA-SOY will produce and sell 11,000 units of product per month

OTHER COSTS
Electricity - $4/day
Gas - $2/day
Water - $1/day
Rent- $5/day
Security - $2
Waste disposal - $0.50
Cleaning supplies - $0.50
Equipment repair and renewal ($15,000/US over ten years) - $6.25/day
Product ingredient and packaging loss of 5% - $5.62/day
Distribution Cost 13% of product wholesale value - $33.35
Total Other Costs - $60.21

Production and Distribution Cost Summary
Daily labor costs $50.00 or $0.09/unit
Total other costs $60.21 or $0.11/unit
+
Milk ingredient/packaging cost $0.20/unit
or
Tortilla Filling ingredient/packaging cost $0.17/unit
=
Total milk cost = $0.40 unit x 400 = $160/day
Total tortilla filling cost = $0.37/unit x 150 = $55.50/day
Total costs = $215.50/day

Income Summary
Soy milk product wholesale value = $0.45/unit x 380 units = $171.00/day
Tortilla filling product wholesale value = $0.60/unit x 143 units = $85.80/day
Total income = $256.50/day

Projected Daily Income Over Cost Summary
$256.50 income
215.50 cost
40.00 net (15.59%)

FOR MORE INFORMATION PLEASE FEEL FREE TO CONTACT PLENTY AUSTIN REPRESENTATIVES

Karen and Thomas Heikkala @ 512-462-1486; or heikkala@bga.com, or karen@plentyaustin.org

Chuck Haren and Casta Calderon @ 512-912-1429; or ctci@earthlink.net, or chuck@plentyaustin.org

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