COOPERATIVE AGRICOLE GABARD LE VAILLANT (CACGAVA) COMMUNITY AGRICULTURAL STORE Enterprise is Seeking: _X__ Loan ___ donation SNAPSHOT Project Name: Request: Location: Department: Legal Status*: Number of Employees: Products or Services: Project Category (Type): Milestones: Goal: Community Agricultural Store $2,585 Dondon North Agricultural FT: 2 PT: Contractors: Agricultural tools for farmers. Agriculture CACGAVA is the oldest coffee cooperative in the country and contributes to the local infrastructure, which includes road development and connecting part of the town of Dondon to electricity. To maintain an agricultural store selling agricultural products wholesale to coffee producers and other farmers. This will provide an alternative purchasing environment compared to requiring them to travel all the way to Cap Haitian in order to purchase agricultural goods. REQUEST Amount of Request: $2585 Agricultural tools Items Quantity Unit Cost USD Total Cost USD Hoe 9 dozen $90/dozen $810 Mattock 5 dozen $135/dozen $675 Machete 5 dozen $67.50/dozen $337.50 Rake 5 dozen $47.50/dozen $237.50 Shovel 5 dozen $105/dozen $525 Total - - $2,585 Purpose of Request: The cooperative wishes to have an agricultural store available to the farmers of Dondon allowing them to access these agricultural tools at a nominal rate. This is a first phase of the community store that will sell agricultural tools and then expand to selling ground coffee in the near future. Anticipated impact of the proposed activity on the larger community: Having these agricultural tools available right in Dondon will help the farmers immensely by allowing them access to them tools locally for which they would otherwise have to travel over two hours away to Cap-Haitien in order to purchase. The travelling expenses will instead now be able to remain invested in the community of Dondon. Another benefit of this loan would be to eventually create employment once the community store is up and running and making a profit, within a few months. The hope is to hire an Agro-Economist, an Agricultural Technician, a store Manager, and a sales associate. The lower scaled employees will be the first ones hired and start with the minimum wage of 200 gourdes ($5 USD) a day. II. BACKGROUND: ORIGINS/HISTORY CACGAVA was created in 1955 by 15 coffee producers/farmers with the objective of economic advancement of other coffee producers in the area. These 15 pioneers had the vision of countering the monopolistic ways of 4 big coffee plants who would exploit the coffee producers by paying them a very low rate for wholesale coffee, then reselling this coffee at a much higher price. These farmers wanted to be managing the sales of their products and benefits 100% from their sales. These 15 farmers enlisted the help of an agricultural technician who helped them obtain a loan for US$2,500 to build a location in which to produce coffee, store it and sell it on their own without selling it in bulk to these factory owners. III. ORGANIZATIONAL STRUCTURE AND KEY MANAGEMENT PERSONNEL Unfortunately all the founding members are deceased. Today CACGAVA has 850 members and is run an Administrative Council of 7 members: • • • • • • • 2 | CeDieu Joseph, President Marie Jeanne Zephir, Vice-President Blondel Marcellus, Treasurer Elizette Bien-Aime, Secretary General Antonide St. Jean, Secretary Gaston Marcellus, Advisor Josius St. Breux, Advisor PROJECT REPORT © 2010 ZAFEN IV. INDUSTRY/SECTOR OVERVIEW Dondon is a town of about 52, 000 inhabitants. Its principle production is coffee. Most of the farmers in the area are coffee producers. CACGAVA is the oldest coffee cooperative in the country. It is one of three coffee cooperatives of the area. Cooperative Capois La Mort and Cooperative Vincent Oge de Dondon are its competitors. All three cooperatives are members of REKOKARNO (a coffee brokerage firm). All three export coffee to Europe (parts of France and England). V. PRODUCTS AND SERVICES CACGAVA exports coffee to France and England. They also sell unrefined coffee beans in the local market at an affordable price. The varietals of coffee beans they produce are: Arabica, Typica, Caturra and Catimor. They are currently experimenting with Blue Mountain coffee. VI. MARKETS/POPULATIONS SERVED CACGAVA typically exports 33,000-36,000 lbs and sometimes up to 46,000 lbs of coffee each year to parts of France, England and Canada. This year, they are unable to export the quantity of coffee they are accustomed to exporting because their crops were affected by Tropical Storm Ana last year. They receive the bulk of their profits from exporting coffee. A small percentage of their products is sold in the local market, which is mostly of unrefined coffee beans. VII. FINANCIAL OVERVIEW The farmers who are members of CACGAVA receive a return on their investment each year at the end of the year. This return usually depends on the amount of coffee sold during the year. If the sales were significant, they receive a significant return and vice versa. A percentage of the profits are re-invested back into the cooperative either for operational purposes or to make improvements to the area in which they process the coffee. Currently CACGAVA sells coffee in the local market of Brosage, a neighborhood of Dondon. They plan to cover the entire area of Dondon and the surrounding area with the creation of the community store. DUE DILIGENCE CHECKLIST Specific Mission Statement: Professional Business Plan/Strategic Plan: Financial Statements: Appropriate Legal Registration: Annual Reports: Clearly articulated Corporate Governance Structures: 3 | PROJECT REPORT To continue to work to improve the quality of lives of coffee producers in Dondon. Related documents have been reviewed by our business analysts. Not available. Related documents have been reviewed by our business analysts. Not available. Related documents have been reviewed by our business analysts. © 2010 ZAFEN VIII. COMMUNITY IMPACT This agricultural store will be the first one created in Dondon. Farmers will now have the opportunity of purchasing their agricultural tools here instead of travelling to neighboring towns such as St. Raphael and as far as Cap Haitian. These funds will be invested in Dondon. The goal is to have these tools readily available to these farmers to increase productivity in the area. 4 | PROJECT REPORT © 2010 ZAFEN
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