BRAZIL MALVA PROJECT

By Martin McLendon, Allie Long and George Morgan

HOW IT STARTED

Initial contact made last year through a visiting professor

The problem: small villages along the Rio Solimões who produce malva and jute fibers are being exploited by a middle man who buys the fiber for close to nothing and sells it at market price for a large profit

Asked to research the problems associated with the exploitation and look into possible demands made for the fiber

Submitted initial deliverable with recommendations on how to enter the “green” market in the U.S. and Brazil

TRIP TO BRAZIL

Spring break last year 3 of us went to Manaus to present our work and get feedback from graduate students and professors involved with PIATAM

Got a very positive response from our work but realized that we overlooked limitations faced by the villages I.e. lack of electricity, poor health,

low technology Asked to write chapter of a book

for PIATAM

CURRENT FOCUS

Second trip to Brazil in August Asked to look deeper at the full

distribution chain of producing and selling the malva

INITIAL PLAN- OUR LOE

The first phase will focus on: Researching the complete distribution chain of producing a product

out of malva Researching ways to eliminate the power of the patrao by

aggregating a product in a way that makes him redundant Examining the formation of a cooperative and the steps necessary to

get legal recognition Contacting organizations who might be potential buyers of malva

products

The second phase will focus on: Present an approved business plan to companies willing to purchase

sustainable goods from these villages  Obtain a grant to cover the start up costs for villages producing

malva

LIMITATIONS TO OUR PLAN

Communication to Brazilian companies caused numerous issues because of the language barrier

Implementation was complicated because of the distance

Decided to take a more consulting type role and compiled a document of our recommended steps for successfully creating a profitable business with the malva and eliminating the patrão

OUTLINE OF THE DOCUMENT

1. The process of forming a cooperative and the problems associated with it

2. The distribution chain of selling malva

3. Creating business relationships with potential buyers

COOPERATIVES

Explained what a cooperative is and how it is formed

Suggested contacting the OCB Noted the potential power struggles that

can exist in villages once a cooperative is formed

The formation of a successful cooperative would give the villages more economic power and would help them decrease their dependence on the patrão

DISTRIBUTION CHAIN OF SELLING MALVA

DISTRIBUTION CHAIN OF SELLING MALVA

Identified the large domestic demand for the fiber

Identified the necessary start up costs for seeds and transportation

Suggested forming relationships with local companies that purchase the fiber (i.e. JUTEL)

The main focus of the villagers should be growing the raw fibers and transporting them to the local outlets

CREATING BUSINESS RELATIONSHIPS

Suggested for the villages or possible cooperative to establish a spokesperson to be the main liaison between the villages and the companies

Identified the importance of marketing the fiber to local companies

Suggested implementing contracts to ensure they are not exploited

MOVING FORWARD?

We have submitted our recommendations and are waiting for feedback as to whether continued work is necessary

Questions?