Introducing peruvian farmers to value-added services

COMPANY: ProSynergy
POSITION: Paganucci Fellow at Tuck School of Business (Summer 2014)
SKILLS OBTAINED: Client Interaction, Value Chain Analysis, Market Research, Business Model Development

BACKGROUND: ProSynergy is a Peruvian social contribution program run by SK Innovation that aims to improve quality indicators in education, health, sanitation, and population well-being. It has developed two eco-technology demonstration centers, known as yachaywasis, in Peru for the purpose of introducing these technologies to Alpaca and Dairy farming communities to increase their efficiency.

Currently, there exist well-developed value chains where most of the families act exclusively as producers of raw materials.

 
 

PROBLEM: The issue with these value chains is that the farmers sell raw materials to intermediaries for extremely low prices.
OBJECTIVE: To advise ProSynergy with a developed plan on how the established Yachaywasis can help these farmers learn value-adding processes and move up the value chain.

FINAL PROTOTYPE: After spending two weeks in Peru, talking to farmers and key market players, the following three-phased strategy was proposed to our client: