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Hugh commented on Haiti Impact Alliance

Hi Ashley,

Happy to provide more information on the business model.

In answer to your question, farmers participate by working in tree nurseries in order to earn the inputs for their farms including seed, tools and agricultural training. They do not pay to be part of the program, but working in the tree nurseries is a requirement.

You asked if it is subsidized by donations, and the answer is yes… but for a limited period. The Haiti Impact Alliance (HIA) is a 5 year project, and for the first year the 12 smallholder services that constitute the HIA, both the 6 development services and the 6 commercial services, will be provided through the existing non-profit Smallholder Farmers Alliance (SFA) using grant funding.

By the end of the first year, the HIA will have split into two entities. The SFA will continue to function as a non-profit and will provide the 6 development services, while the 6 commercial services will form the basis of a business plan for the new for-profit commercial arm as it seeks equity investment.

The general concept is that from year 2 onwards, the commercial entity will implement the 6 commercial services. Also from year 2 onwards, the 6 development services will be managed through the SFA using grant funding that is initially supplemented and gradually replaced by earned income from 3 of these services as they become profitable and self-financed: “farm cluster management,” “tree nurseries,” and “supplies & seed banks.” Increased profits from these 3 services will be used to underwrite the other 3 development services: “training,” “research & development,” and “community advocacy.” The goal is that at the end of 5 years, grant funding for the HIA is as close to zero as possible, noting that these last 3 development services may continue to require some degree of external philanthropic support.

Inherent in this general concept is that by the end of year 5, the 4 self-sufficient and farmer-operated agroforestry cooperatives managing the 4 farm clusters will replace the SFA in the HIA structure in terms of implementing the 6 development services. The SFA will, however, remain a shareholder in the HIA.

In answer to your question about specific funding needs, the budget for the first year is broken down as 1) administration, 2) smallholder commercial services (exporting, processing, marketing & sales, financing, data & traceability, and certification), and 3) smallholder development services (farm cluster management, tree nurseries, training, supplies & seed banks, and research & development).

HUGH

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Hugh commented on Haiti Impact Alliance

Hi Ashley,

I have just added an attachment called "Haiti Impact Alliance - Theory of Change" that will give you additional information as to how the overall project is structured and what the outcomes are projected to be. More information to follow shortly.

HUGH