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Economic Development in Haiti through Organic
Food
Opportunity - A
window has opened for economic development in Haiti. Improved
governmental stability and support by international
governments and NGOs for ‘profitable’ economic development
means that interested persons can now begin to leverage the
natural advantages of Haiti: close proximity to the US;
tropical climate; naturally organic environment; massive
outside support programs; and natural entrepreneurial spirit.
If economic, social and political factors continue in a
self-reinforcing spiral, then Haiti can become one of the next
– and most surprising! – world economic tigers. The
easiest entry point for economic development and one of the
more obvious and attractive markets is organic food. Haitian
poverty has crippled the ability of the country to develop
intensive agricultural production - few farmers could afford
chemical fertilizers and insecticides necessary for typical
western style factory farms. But this misfortune is now an
opportunity in a world with increasing demand for organic
food. Haiti is a naturally green island. With low land and
labor costs and close distance to the US, Haitian farmers can
grow organic food for US markets at very advantageous
costs.
Model – There are real
challenges to launching a business in Haiti. At the
core, there is a significant circular problem: businesses need
infrastructure (both physical and social) to operate
successfully, but to support the cost of developing
infrastructure, there have to be businesses that demand – and
will financially sustain – the infrastructure. Generations of
government and non-government efforts have failed because
there has been little consideration of the entire value chain.
Programs start with great intentions, but no plan for long
term operations. When the outside money is gone, the
program stops. In addition there has been a serious disconnect
between Haitian cultural standards and American business
expectations; there has been continual frustration on both
sides because of a lack of understanding and ability to bridge
the gaps. A new approach and business model is
needed for Haiti. This business model is to set up
small, for-profit businesses in decentralized (rural) areas
that partner with both a local Haitian non-profit and its
international supporters. This hybrid model allows the
non-profits to do what they do best – providing education,
training, micro-credit loans, etc. – while the “for profit”
business buys, processes and distributes the goods. The
businesses also combine the best of Haitian culture and
American standards in a harmonized approach. Bel
Soley (“beautiful sun”) is the first manifestation of this
hybrid model, formed by a combination of business people and
Community Coalition for Haiti (CCH: a non-profit based in
northern Virginia supporting health and improvement efforts
primarily in Pignon, Haiti) . Bel Soley, Inc., is the
American based distribution company with a Haitian subsidiary,
Bel Soley d’Ayiti, SA (Société Anonyme) for Haitian
operations. The companies are a true Haitian-American
combination: Haitian in appearance and culture, American in
quality, information technology and business standards, and
Haitian-American in management.
Application of the Model to the Organic Food
Opportunity The Haitian-American Bel Soley
business concept is being applied as Bel Soley Foods. With
initial investor capitalization of more than $1M (US)
and purchase orders from American wholesalers, Bel Soley Foods
is active in two areas of Haiti. The Bel Soley operation
in the northern part of Haiti leverages CCH support in Pignon
to produce dried fruit and noni juice and the operation in the
southern part of the country leverages NGO support in Les
Cayes to produce peppers and dried fruit.
Substantial growth is planned for both locations. Bel Soley is
also actively developing businesses in other locations in
Haiti and is actively seeking partners for those locations.
Benefits- American investors
benefit by investing in a high yield operation. Because of low
costs in Haiti and excellent purchase prices in the US, Bel
Soley is targeting net profit margins in excess of
30%. Individual Haitians and the Haitian economy as a
whole will benefit. Within five years, at the two initial
locations of the company alone, the company plans to employee
directly more than 300 employees at average pay well in excess
of average Haitian pay. The indirect benefit will be much more
far reaching. Intial indication is that the income of the
individual farm family supplier to Bel Soley would increase
dramatically (2X to 4X), both through a sustained market
outlet and increase yield. Farmers would be able to
afford clothes for school, roofs that do not leak, medical
care, a diet with protein and a bit of extra income for
micro-business for the women after the season is over.
At the five year mark, at the two initial locations alone, Bel
Soley will be acquiring products from over 3,000 farm
families. In addition, the increased prosperity in Bel Soley
towns would provide economic support for improved medical
care, construction of roads and utilities, improved schools
and police and such fundamentals as improved goods in
stores.
The opportunity is real…..the time is
now….the costs are minimal –Let's make it
happen! | |
| A New
Investment Model Adopting a mission investing approach,
Bel Soley is bringing changes to the way we
invest. read more |
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Bel Soley makes
sense Hear what investors,
non-profits organizations, international development groups
are saying about Bel Soley. read
more |
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Corporate
Responsability Treating employees, suppliers
and customers with respect and dignity is our drive for
success. read
more |
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Environmental Responsability Helping Reforest Haiti as an economic activity
through partnership with farmers. read
more |
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