Abundance Agro, LLC - elissapeterson20.files.wordpress.com file · Web viewSince Kyrgyzstan’s...
Transcript of Abundance Agro, LLC - elissapeterson20.files.wordpress.com file · Web viewSince Kyrgyzstan’s...
Running Head: ABUNDANCE AGRO BUSINESS PLAN 1
Abundance Agro, LLC
Business Plan and Executive Summary (Revised)
Jamie Bolley
Jasmine Edwards
Charity Flores
Elissa Peterson
Josh Ross
Scott Wells
Oral Roberts University
Running Head: ABUNDANCE AGRO BUSINESS PLAN 2
EXECUTIVE SUMMARY
The Problem
Since Kyrgyzstan’s independence from the Soviet Union in 1991, the Kyrgyz people
have struggled to stabilize their economy and poverty has become the standard way of life for
most (Fisher, 2004). Farming and agriculture were once the stabilizers of this economy, but
poverty has devastated the farming industry. Poverty is not only negatively affecting farming,
but basic necessities such as running water and public sewage have significantly deteriorated as
well (“Rural Poverty,” 2009). The need for education of new farming techniques, and ultimately
an economic stimulus is apparent. The people have tried different methods of economic stimuli
but the market seems to be prime for chicken farming. The country uses eggs in their daily meals
and the farms are not costly to start.
Though this economic stimulus might help relieve the issue of poverty, man’s soul cannot
be satisfied through materialism. Spirituality plays a critical role in the overall health of a person
and this issue is not resolved in Kyrgyzstan. Both farming and spiritual education for the
Kyrgyz people are necessary to acquire resources that meet their survival needs. A higher
possibility for receiving spiritual education will exist when combined with the education of
productive farming practices. These people will then be able to experience true independence
and freedom as they utilize these resources to create a healthy and stable lifestyle. Kyrgyzstan
can become an economically independent country that offers its people acceptable living
standards while experiencing spiritual development.
The Culture and History
The people of Kyrgyzstan are rich in both culture and tradition as seen in their religious
background, food, and daily lives. Though Kyrgyzstan is not politically an Islamic nation, the
Running Head: ABUNDANCE AGRO BUSINESS PLAN 3
citizens seem to observe Muslim practices in everyday life. The Kyrgyz people are strongly
committed to their families. Family structure is similar to many Islamic and nomadic traditions
alike. The traditional family structure of the nomads is best described as a clan. They often live
in groups and move around due to the movement of their sheep, or horse herds. There is definite
competition within these clans for leadership and status, which assures social and economic,
advantages (Curtis, 1996). The people are extremely loyal to their specific clan and the color of
their clothing is indicative of their clan.
It is clear the country of Kyrgyzstan is not exempt from many of the political, social, and
economic issues that much of the world is facing today. A failing economy may be to blame for
many of the social problems plaguing Kyrgyzstan. Without adequate rainfall, however, much of
the agricultural needs cannot be met as well. Many Kyrgyz people are in need of a project that
will both stimulate Kyrgyzstan’s economy as well as give the native people hope for a better
future. Everyday another family goes hungry, and everyday hope diminishes. Change must take
place if Kyrgyzstan is to return to its stable economy and become a strong, independent nation.
The Plan and Evaluation
In the life of the Kyrgyz people, the desperation and need for survival is a daily
occurrence. Hope seems as distant as the moon. They need a chance to get out of their poverty
stricken lives. Four and a half million residents in Kyrgyzstan are living on only two dollars a
day or less (Frantz, 2000). There are solutions to ending this devastating way of life. Due to
Kyrgyzstan’s fertile land, farming and agriculture are valuable assets to the livelihood of all
citizens. The Kyrgyz people need a chance. Start up costs for farms are significantly small but
many people cannot afford them due to the interest rate offered by the World Bank at a
financially crippling rate of 32 percent (Frantz, 2000).
Running Head: ABUNDANCE AGRO BUSINESS PLAN 4
Abundance Agro LLC wants to bring hope and a future to struggling people in
Kyrgyzstan. Their plan is to establish local chicken farms through business initiating skills and
the recruitment of local people to work on the chicken farms. The local workers will gain the
necessary skills to run the farms not just to survive, but also thrive beyond current expectations.
Detailed and measurable goals are attached to Agro Company’s plan to ensure a positive
response from the Kyrgyz people in order to be set free from the bondage of poverty.
The Budget
Abundance Agro has raised a total of $20,000 for the initial planning of their project to
begin at the end of the 2009. The additional costs required to push this project into action total
$40,000 before March 2010. This amount of money provides the funds for all legal fees, rent,
supplies, payroll, and marketing plans. This money can be acquired through both donations and
investments.
THE PROBLEM
Introduction
Two young women appear before us. Lauren, an eighteen-year-old American, has just
graduated from high school and is worried about finding a job in a slowly falling economy. She
needs this job to help pay for her college education. Aida, a young Kyrgyz girl the same age as
Lauren, is looking for work as well. She joins her parents who have been unemployed for the last
five years. Their search is different, though, for they have no choice. Working to end the struggle
that comes with feeding a family of four children, Aida puts other desires aside. Aida does not
live a life filled with choices, and does not dream of college and youthful luxuries, but only
dreams of merely getting through each day. Hope feels a million miles away.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 5
The Anguish of Poverty
Aida’s situation is common for most families in Kyrgyzstan. Since Kyrgyzstan’s
independence from the Soviet Union in 1991, the Kyrgyz people have struggled to stabilize their
economy and poverty has become the standard way of life for most (Fisher, 2004). Livestock
breeding is a popular occupation for those in rural areas of Kyrgyzstan. However, due to poor
resources and the lack of education for farmers, the national income has dropped to an average of
four hundred dollars per year (“Rural Poverty,” 2009). It is difficult to see an end to this
devastating cycle.
Farming can essentially sustain an entire economy. Unfortunately, for Kyrgyzstan, this is
not the case. The amount of money to keep farms in a profitable state does not exist. They can no
longer afford to keep their animals since the price of hay has tripled in recent years. “In
Kyrgyzstan there was low precipitation over the last three years, so there was already enormous
pressure on the feed base,” stated one Kyrgyz man (Trilling, 2009). Bad luck, along with other
reasons such as new independence, has caused the economy to drop so quickly that Kyrgyzstan
is now one of the poorest countries in the world. The people are forced to resort to other
measures such as the buying and selling of illegal drugs for basic survival (Trilling, 2009). The
farms are no longer able to keep the economy afloat.
Poverty is not only negatively affecting farming, but basic necessities such as running
water and public sewage have significantly deteriorated as well (“Rural Poverty,” 2009). Those
in rural farming areas are unable to acquire these basic needs, and poor farming practices are
leading to the deterioration of natural resources causing disease and malnutrition. This has
created a problem for the overall health of the Kyrgyz people. Something must change.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 6
Kyrgyzstan has not always been considered a destitute country. Before its independence,
Kyrgyzstan’s agriculture was the “backbone of their economy,” (Fisher, 2004). Under Soviet
rule, living standards were much better but the people lacked independence, which they so
desperately desire. Sacrifice is almost inevitable in gaining independence and the Kyrgyz people
were ready to face loss in other areas. Knowing this country is capable of economic stability
offers light in the darkness of the situation.
A Country in Need of a Solution
The need for education in new farming techniques, and ultimately an economic stimulus
is apparent. With the literacy rate of 99 percent for adults in Kyrgyzstan, hope still remains.
(“Kyrgyzstan,” 2009). The people have tried different methods of economic stimulus but the
market seems to be prime for chicken farming. The country uses eggs in their daily meals and the
farms are not costly to start. In a country with natural geographic conditions that will sustain
chicken farming, this could be a turning point in the economic growth for Kyrgyzstan. If the
correct steps are taken, Kyrgyzstan can become an economically independent country that offers
its people acceptable living standards once again.
Spiritual Poverty
Though this economic stimulus might help relieve the issue of poverty, man’s soul cannot
be satisfied through materialism. Spirituality plays a critical role in the overall health of a person
and this issue is not resolved in Kyrgyzstan. Unfortunately, the issue of poverty is not limited to
the physical world alone. The people of Kyrgyzstan are also spiritually poor and are in need of
freedom. Though the country is predominantly Muslim, the ethnic Kyrgyz people do not practice
Islam religiously. This is seen more frequently in ethnic Uzbek groups. This presents identity
issues involving continuity with religion and self-image (Chotaeva, 2008). Islam has become a
Running Head: ABUNDANCE AGRO BUSINESS PLAN 7
form of ethnic identity instead of a faith and because critical needs are not being met, religion
and faith are more of an afterthought for the Kyrgyz people. Moreover, these people are turning
to superstitions and animistic practices to find answers to their devastating situation. The gospel
of Jesus Christ is a foreign concept if not a myth, to the world of Islam. The few who claim to be
Christians in Kyrgyzstan are persecuted even to the point of death. The government has recently
restricted religious freedoms and people who share their faith are at great risk. This makes it
increasingly difficult for the people to hear the gospel and gain knowledge of the redemption that
Jesus offers. It has also made it nearly impossible for church plantings to be successful as other
churches have been closed down and banned from the country already. Therefore, Kyrgyzstan is
in need of evangelism through unconventional methods.
The Hope of Needs Being Met
The need for economic and spiritual growth can potentially be met at the same time. Both
farming and spiritual education for the Kyrgyz people are necessary to acquire resources that
meet their survival needs. A higher possibility for receiving spiritual education will exist when
combined with the education of productive farming practices. These people will then be able to
experience true independence and freedom as they utilize these resources to create a healthy and
stable lifestyle.
Conclusion
A healthy and stable lifestyle does not exist in the life of Aida. This will remain until the
needs for running water and a healthy meal for Aida and her family are met. She is doing
everything in her power to help her family, but what about Aida? What about her spiritual needs?
She needs help, hope, and the knowledge that a brighter future is possible. Without this, she is
Running Head: ABUNDANCE AGRO BUSINESS PLAN 8
just another statistic and each day is reduced to a number on a calendar lacking significance and
freedom.
CULTURE AND HISTORY OF KYRGYZSTAN
Introduction
A glass of clean water, a new pair of shoes, and a full meal for dinner are luxuries we
enjoy every single day. This is not common for Rustam, a resident in the Bishkek community in
Central Kyrgyzstan, where over 30 percent of children are malnourished due to poverty
(“Poverty Resource: Kyrgyzstan,” 2007). Rustam works all day long only to produce an income
of one dollar per day, while some Americans spend three times this amount for a morning latte at
their local Starbucks. While trying to provide for his wife and two children, Rustam faces the
harsh reality that he may have to go hungry tonight in order to feed his family. Nevertheless, he
relies on his strong community and his love for his family does not waver. Though economic
struggles are prominent, Rustam is proud to be from a country with such a rich and complex
culture that continually contributes to the glories of the Eastern world.
Political Background
When discussing the political background of Kyrgyzstan, the history of the laws in
Kyrgyzstan and the laws pertaining to the economy, as well as the political beliefs of today, must
be examined. First, Kyrgyzstan is founded on republic doctrines. This republic nation was once
united with the Soviet Union until 1991 when Kyrgyzstan became isolated and formed an
independent republic nation. Kyrgyzstan’s economic laws allow citizens to produce goods and
live life more freely without much oppression. The most common form of income in Kyrgyzstan
is agriculture. Popular crops include wheat, barley, and cotton. Other goods produced in this
region are sugar beets, tobacco, fruit, vegetables, and chickens. According to Kyrgyzstan’s
Running Head: ABUNDANCE AGRO BUSINESS PLAN 9
privatization law, state agricultural assets are distributed according to a share system in which all
citizens have the right to a garden plot (Curtis, 1996).
Modern local government in Kyrgyzstan is a republic divided into seven administrative
regions including one province containing the capital city of Bishkek within its borders
(Coutsoukis, 1996). Although Kyrgyzstan’s constitution establishes a government of three
branches, the presidency has the strongest governmental power. President Bakiev can overrule
any branch, putting him in control of choosing the prime minister and court judges as well as
other government positions (Coutsoukis, 1996). The republic's constitution previously provided
strong guarantees of personal liberty, protection of privacy, freedom of assembly and expression,
and other characteristics of modern democratic societies. Unfortunately, the constitution has
been significantly amended and many of these freedoms have been restricted today. Kyrgyzstan
is currently flourishing as a republic under the Presidency of Bakiev and in 2008, USAID
launched a two year, sixteen-million-dollar assistance activity to support the Kyrgyz Republic’s
Millennium Challenge Account Threshold Program, an intensive effort to overhaul the country’s
judicial, law enforcement, and criminal justice systems (“Governing Democratically,” 2008).
Social Issues in Kyrgyzstan
While the Middle East has general social issues involving oppression associated with
Islamic culture and religious control, Kyrgyzstan has specific cultural problems relating to
substance abuse. These social issues in Kyrgyzstan present opposition and create boundaries in
the daily lives of the Kyrgyz people. According to the Central Asia-Caucasus Institute, “The
southern borders of Kyrgyzstan are a route for drug trafficking from Afghanistan to Western
countries,” (Moldogozieva, 2000). Because of the prominent drug trafficking in the area, around
6,000 Kyrgyz people are addicted to opium and other drugs (Moldogazieva, 2000). Along with
Running Head: ABUNDANCE AGRO BUSINESS PLAN 10
any widespread drug use comes the spread of disease such as Hepatitis and HIV. In the past,
Kyrgyzstan has been low in ranking with HIV positive citizens compared to other countries.
With a 250 percent increase in the contraction of this disease since 1987, the HIV virus afflicts
three in ten drug addicts in Kyrgyzstan today (Moldogazieva, 2000).
Due to a struggling economy, the buying and selling of drugs has increasingly become
the means of survival for many Kyrgyz families. Although opium and poppy cultivation remains
small in size in Kyrgyzstan, it greatly effects the population as a whole (Moldogazieva, 2000).
Along with the cultivation of opiates, cannabis and ephedra also pose a great threat to the people
of Kyrgyzstan. Cannabis has similar effects of marijuana on humans, and ephedra is often linked
with dietary supplements, which can cause serious side effects and even death. The Central Asia-
Caucasus Institute reports between 60 and 80 percent of families in two regions of Kyrgyzstan
are involved with the gathering of cannabis (Moldogazieva, 2000). While many non-
governmental organizations are attempting to deal with the drug abuse in Kyrgyzstan, the initial
step in combating a nation-wide drug problem is to first resolve economic pressure in rural areas
of Kyrgyzstan (Moldogazieva, 2000). Poor living standards leave the Kyrgyz people desperate
for income, even if it means being involved with drug trafficking.
Another aspect of Kyrgyzstan’s culture that has a negative effect on the people is the
consumption of alcohol. Vodka is the most common choice of alcohol in the region according to
the British Broadcasting Corporation (BBC) News (Foulkes, 2008, p. 2). Due to a struggling
economy with low cash flow, many Kyrgyz people accept payment for work in the form of
vodka (Foulkes, 2008, p. 2). Vodka is a part of daily life in Kyrgyzstan and is consumed at
birthdays, weddings, and even funerals (Foulkes, 2008, p. 2). The overall consumption of alcohol
is slightly falling due to health concerns that have swept across the country, but it is difficult for
Running Head: ABUNDANCE AGRO BUSINESS PLAN 11
Kyrgyz people to imagine a day when vodka cannot be found in the cupboards of homes in these
regions.
A trend seen in many communities across the world involves the abuse of alcohol and
tends to lead to other problems within the home. Depression, domestic violence, and poor
decision-making in general are social issues plaguing the people of Kyrgyzstan. As previously
mentioned, solving issues of a poor economy will be key in the genesis of a drug and alcohol
free Kyrgyzstan. While it may not be entirely realistic for a country to be free of all substance
abuse, it is important for communities to focus on ways to relieve citizens and future generations
of the threat such a poor economy may have on the actions and beliefs of its people.
The Economy of Kyrgyzstan
Desperation is not just a word to the people of Kyrgyzstan but a constant emotion in their
daily lives. Economic stress has taken a tragic toll on the citizen's lives. Beginning with the
collapse of the Soviet Union, the Kyrgyz economy has been negatively affected due to a loss in
the market. Approximately 98 percent of Kyrgyz exports since 1990 went to other parts of the
Soviet Union (“Background Note: Kyrgyzstan,” 2009). The economy has improved slightly but
is still not adequate enough to sustain itself without sufficient hard work and better resources.
Kyrgyzstan has inadequate trading systems and relies heavily on agriculture and animal farming
to sustain its economy (“Facts and Stats,” 2009). Only 7 percent of the land in Kyrgyzstan is
arable and about 55 percent of the population works in the agriculture business (“Facts and
Stats,” 2009). An astonishing 55 percent of Kyrgyzstan's population lives below the poverty
level. This seems strange when taking note of the national adult literacy rate of 97 percent
(“Facts and Stats,” 2009). In a country that values education, the people should naturally be
prepared to work and make intelligent choices. The literacy rate appears to have no significant
Running Head: ABUNDANCE AGRO BUSINESS PLAN 12
connection with high unemployment rates. Aforementioned, the main agricultural products
produced are tobacco, cotton, wool and meat. One resource available to the Kyrgyz people is the
natural mountainous terrain, which creates opportunity to develop hydroelectric power
(“Background Note: Kyrgyzstan,” 2009).
The unemployment rate at the end of 2008 was 11.1 percent. The gross domestic
product, which is a measurement of a country's economic performance and market value of
goods and services in one year, was 4.6 billion dollars in 2008. This is an increase of 7.6 percent
from the previous year. Another important part of Kyrgyzstan’s economic history is its title of
becoming the first former member of the Soviet Union to create its own currency. After Russian
rule, the ruble was removed and the som became the new currency (“Facts and Stats,” 2009).
The effects of economic strain are reflected on individual as well. The average annual
income in Kyrgyzstan is 280 dollars per year. The average annual salary of a woman is 34
dollars per year, according to the Women's Support Center in Bishkek (“Facts and Stats,” 2009).
"There are no jobs here, no money," Kalykeb, a Kyrgyzstan resident stated, "and I have to feed
and support my children,” (Trilling, 2009). The crisis of not having enough revenue has existed
for many years, according to farmers and experts. A low precipitation level over the last three
years has also greatly affected the agriculture in Kyrgyzstan. The major source of income in
Kyrgyzstan is agriculture, but the price of hay has soared in recent years preventing citizens from
privately owning animals (Trilling, 2009). According to experts and farmers, this crisis is not
new to the Kyrgyz. "People are in a desperate situations; they're really loosing their economic
capacity," stated an agriculture expert. "In the long term, people might lose their economic
assets; it will be extremely difficult for the small farming households and small livestock keepers
to recover" (Trilling, 2009).
Running Head: ABUNDANCE AGRO BUSINESS PLAN 13
Another important factor in Kyrgyzstan's economy is the heavy reliance of trading with
other countries for basic necessities. Major agricultural products being exported include: wool,
hides, meat and cotton (“Facts and Stats,” 2009). These exports total 1.6 billion dollars per year
(“Background Note: Kyrgyzstan,” 2009). The main exports use 3.3 billion dollars of
Kyrgyzstan's national budget and include machinery, equipment, food, oil and gas. The main
countries trading with Kyrgyzstan are Russia, Switzerland, Uzbekistan, and Kazakhstan (“Facts
and Stats,” 2009). The total debt during 2008 was 3.16 billion dollars, of which 2.19 billion
dollars contributed to public debt (“Facts and Stats,” 2009).
Culture and Traditions
The people of Kyrgyzstan are rich in both culture and tradition as seen in their religious
background, food and daily lives. Though Kyrgyzstan is politically an Islamic nation, the citizens
seem to observe Muslim practices in everyday life. Being Sunni Muslims and a part of the Sufi
order, the Kyrgyz typically do not practice the Islamic religion in the orthodox sense. They do,
however, have “one of the important holy places for Muslims in the southern city of Osh” called
the Throne of Suleyman (“Kyrgyz: Religion and Expressive Culture,” 2008). They also celebrate
Islamic traditions in ceremonies such as “births, circumcisions, weddings, funerals, and Islamic
holidays…” (“Kyrgyz: Religion and Expressive Culture,” 2008).
The Kyrgyz people participate in a variety of arts. They often take part in acrobatic
horseback riding as well as the making of leather saddles and silver jewelry (“Kyrgyz: Religion
and Expressive Culture,” 2008). This is a direct reflection of their traditional nomadic history.
Oral tradition and the recitation of folklore is also a prominent activity for the Kyrgyz. Music is
also important, for it holds a reminder of the original Soviet background (“Kyrgyz: Religion and
Expressive Culture,” 2008).
Running Head: ABUNDANCE AGRO BUSINESS PLAN 14
The Kyrgyz people show a strong commitment to family and their family structure is
similar to many Islamic and nomadic traditions alike. The traditional family structure of the
nomads is best described as a clan. They often live in groups and move around due to the
movement of their sheep, yak or horse herds. There is definite competition within these clans for
leadership and status, which assures social and economic advantages (Curtis, 1996). The people
are extremely loyal to their specific clan and the color of their clothing is indicative of their clan.
The domestic life of the Kyrgyz looks very different from the Western culture. The
traditional ethos of the nomadic people depends on their particular herd. Though there are many
Kyrgyz who are no longer Nomadic in occupation, family traditions still reflect this culture.
These traditions include, “The markings of religious and magical rites, the naming of a child and
the cutting of the child’s hair conducted in such a way to appease supernatural forces” (Curtis,
1996). The wedding celebration also demonstrates this culture with the animal sacrifice and
dowry that must be paid by the bride.
The nomadic traditions also have a direct effect on the role of the women. The demands
of a nomadic life take precedence over Islamic traditions. The duties and responsibilities of a
woman are equal to the man. Because of this shift, women are more respected and can even hold
political positions (Curtis, 1996). This is drastically different from other Islamic nations who
observe the practices religiously. Additionally, they do eat lamb. Their nomadic ancestors
created dishes with what meat was available to them depending on their herd. These traditional
dishes have continued among the Kyrgyz. Most of their dishes consist of noodles and meat.
Fortunately, the making of noodles creates a need for the production of eggs (Curtis, 1996).
Running Head: ABUNDANCE AGRO BUSINESS PLAN 15
Conclusion
Rustam's culture is rich in nature and consists of traditions that have been around for
centuries. It is clear the country of Kyrgyzstan is not exempt from many of the political, social,
and economic issues that much of the world is facing today. A failing economy may be to blame
for many of the social problems plaguing Kyrgyzstan. Without adequate rainfall, however, much
of the agricultural needs cannot be met as well. Many other Kyrgyz people like Rustam are in
need of a project that will both stimulate Kyrgyzstan’s economy as well as give the native people
hope for a better future. Everyday another family goes hungry, and everyday hope diminishes.
Change must take place if Kyrgyzstan is to return to its stable economy and become a strong,
independent nation.
THE PLAN AND EVALUATION
Introduction
This mother’s only desire is that her family’s needs are met. Love is demonstrated in its
purest form through a mother’s love for her family. Her sole purpose in life is to nurture and love
her children. Alymkan, wife and mother of four, understands this love and must overcome the
daily obstacles to maintain a peaceful home in Bishkek, Kyrgyzstan. The days are long and hard
as Alymkan cleans the house and uses everything in her undersized kitchen to make her one and
only meal, while her husband and oldest daughter are out looking for work so they can survive
for the rest of the week. The food is sparse and the eggs are unclean, but Alymkan does her best
to cook a meal her entire family can share, for it is tradition. This tradition of family compels
Alymkan to keep going, though her clothes are tattered and worn and her pantries are bare, she
moves forward and hopes that the economic crisis will cease and change will come tomorrow.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 16
Creating New Jobs
One of the primary ways to solve any economic crisis in a struggling country is the
creation of new jobs. Businesses are needed to establish new, local jobs for the citizens of
Kyrgyzstan. Few of the Kyrgyz people have the resources to be self-sufficient, while the
remaining 4.5 million residents are living on only two dollars a day or less (Frantz, 2000).
Although seemingly hopeless, the economy can still be saved. Because of Kyrgyzstan’s natural
inclination towards farming and agriculture, these resources can be utilized to boost the economy
and produce profits beyond the scope of mere survival. In order for these 4.5 million Kyrgyz to
escape poverty, an initial form of financing is needed. Microloans may be necessary, followed by
mentorship and education in proper farming practices.
Existing Programs in Kyrgyzstan
The practice of chicken farming has proved to be immensely profitable in Kyrgyzstan. In
recent years, the United Nations has placed workers throughout the region who are teaching the
natives how to be successful farmers (Frantz, 2000). An article from the New York Times reports
that although the initial loans to start these farms are small (anywhere between ten to one
hundred dollars) the World Bank has attached a steep interest rate of 32 percent (Frantz, 2000).
The article also claims that officials say no one has failed to repay any of these loans. This
success rate proves the people in Kyrgyzstan are ready for the responsibility of taking on these
loans and farms, and are responsible with their money and businesses.
Another group, the Sustainable Livelihoods for Livestock Producing Communities
Project (SLLPC), which is managed, by the Hunting Technical Services and P-E International
Limited (HTSPE) has also been sent into Kyrgyzstan to initialize new chicken farming projects
(“New Breeds,” 2007). This organization is sent on a humanitarian basis through the United
Running Head: ABUNDANCE AGRO BUSINESS PLAN 17
Kingdom Department of International Development (DFID). The SLLPC emphasizes the value
of mentorship for each new farmer. It is essential to the success of the program. One family who
purchased chicks through their program failed to listen to the advice given to them, and all the
chicks died within the first month (“New Breeds,” 2007). Though failure is a possibility with
chicken farming, one Kyrgyz man says, “We are proud of our new poultry and livestock
business,” showing how, when done correctly, chicken farming can change lives (“New Breeds,”
2007). While this organization, along with others, is solving the issue of economic poverty in
Kyrgyzstan, no spiritual fulfillment is taking place in the lives of the Kyrgyz people just yet.
A New Hope for Kyrgyzstan
A different team attempting to end the poverty in Kyrgyzstan is Abundance Agro LLC,
which consists of a small number of American workers. Abundance Agro LLC offers a different
approach to the idea of chicken farming in Kyrgyzstan. Founded in 2009, this company knows
entering Kyrgyzstan as profitable business initiators will not only allow required farming
mentorship to take place, but will also create a way for relationships to be built with the Kyrgyz
people on a deeper, more spiritual level. Other foundations doing similar work in Kyrgyzstan
consistently prove chicken farming is the answer to reducing economic poverty, and one expert
claims that due to the mountainous areas in Kyrgyzstan chicken and poultry farming may be the
most profitable way to earn a living for these people (Ajibekov, 2005). Abundance Agro LLC
intends to follow this lead while taking it even further. Aiming to solve both economic and
spiritual poverty through relationship building, the company’s vision is to see thousands of lives
touched for Christ through this exciting and profitable business venture.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 18
How This Will Work
The specific plan Abundance Agro LLC intends to follow includes four phases. Phase
one, to be completed between 2009 and 2010, includes securing funding, finding the right
national partners, and the set up of locally owned egg producing facilities. Phase two will include
the addition of five new local or foreign workers to the team with the intent of developing 50-
100 new contacts by the year 2012. During phase two, 50-100 families will be helped and
through acts of compassion, the company will expand operations with the goal of ten potential
egg production facilities and church plants. By 2014, phase three will include the further
expansion of an additional 20-30 potential church plants. The final phase includes the
employment or empowerment of 100 national church planters and 1,000 new contacts within
local families by 2016.
Evaluation
In order to determine the success of Abundance Agro LLC (AA), these four phases must
be evaluated upon completion. The measurable goals outlined in each of the four phases of this
project will enable the staff at AA to determine the rate and level of progress. Producing clean
and great tasting eggs will establish a strong reputation in the market for AA. Because of this
positive reputation, AA will further enable more local farms to grow while allowing other
purchases and investments to be made by the Kyrgyz people through their chicken farming
profits.
Conclusion
Though Alymkan is thankful for even unclean eggs, her children are malnourished and
Alymkan dreams of more for them. She wishes to see them prosper and have a healthy family of
their own someday. Through the careful plan of AA, this can be a reality. A stable and healthy
Running Head: ABUNDANCE AGRO BUSINESS PLAN 19
environment for Alymkan’s family is now a realistic possibility. With a little help and effort by
those containing knowledge and resources, Alymkan and others like her can feed their families
for a lifetime. Her four children will be able to dream of a better future and her husband will be
able to breathe easier and enjoy the freedom of financial stability and peace. The change
Alymkan so desperately wishes for is finally on its way.
THE BUDGET
Introduction
The devastating economic conditions in Kyrgyzstan may seem overwhelming. They need
help. Alik, a fourteen-year-old boy from Kyrgyzstan, needs our help. He must quickly become a
man and find work so his family can eat. Thousands of miles away, he may never experience the
financial freedom found in America, but we still have the opportunity to make a difference in his
family’s life. The problem may seem insurmountable, but there is hope. With help, other families
like Alik’s can have food on their table at dinnertime and come home from a job everyday. The
project is simple and the requirements minimal. A few extra dollars can make a difference in the
economic status of an entire country, due to the vision of the Abundance Agro Company.
Start-Up and Initial Costs
Current members of the Abundance Agro team have set aside $20,000 during the
planning of this project. Additional costs will arise beginning in October of 2009. Starting
expenses during the first phase, which will take place between November 2009 and October
2010, include legal fees, rent for office space, supplies, payroll, and marketing. Legal fees will
total $1,300 during the first year although this total does not include payment for work visas for
foreign employees and taxes. An amount of $1,600 will fund the rent for both the main office
and feed mill facility. Renovations for the feed mill facility will cost $500. A computer, along
Running Head: ABUNDANCE AGRO BUSINESS PLAN 20
with other various office supplies will cost $700. One year of payroll full and part-time national
employees will be $2,000 due to the low cost of living in the Jalalabat region, which will be the
main target area for this project.
Marketing and advertising is very inexpensive in the Jalalabat area of Kyrgyzstan and
only $400 will be needed during the first year to cover the expenses for spreading the word about
Abundance Agro. This can be accomplished through the free use of word-of-mouth strategies
and emails. Posters and flyers will be budgeted with $100 while all newspaper ads will cost
$140. This is possible because a one-eighth-page color advertisement in a local newspaper
currently costs under $18 a week. Promotions and discounts will use the remaining $160. Any
remaining costs or fees will be covered by an allotment of $500 in the event of any emergencies
or unexpected expenses. The aforementioned costs will total $6,600 and will cover all start-up
expenses.
At least $40,000 in investments must be obtained before March 2010. Abundance Agro
will provide three-month-old pullets, or young hens, to contracted chicken growers. These
contracted employees will be asked to maintain their facilities according to certain company
specifications and will be required to turn over the eggs produced to Abundance Agro, which
will then be sold in the marketplace each day. Abundance Agro will also set up an independent
feed mill production site to lessen the reliance on other similar businesses for chicken feed. The
three most essential products needed to run Abundance Agro include equipment, pullets, and
feed. The first batch of pullets will cost $1,400 plus transportation fees. The cost for cages
needed to house the 400 chickens will be ordered from China and will cost around $1,000. The
remaining budget will cover costs for the previously mentioned feed mill as well as a lightweight
truck for the delivery and transportation of the pullets and cages.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 21
This information is displayed on a table on the following page and can be found in the
official business plan written for the Abundance Agro Company.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 22
Start-up Expenses
Legal $1,300
Rent (office & feed mill facility) $1,600
Feed Mill Facility Improvement $500
Computer $500
Office Supplies $200
Payroll $2,000
Marketing & Advertising $400
Other $500
Total Start-up Expenses $6,600
Start-up Assets
Cash Required $15,000
Start-up Inventory $5,000
Other Current Assets $1,000
Long-term Assets $12,000
Total Assets $33,000
Total Requirements $40,000
(Taken from: Abundance Agro, LLC business plan, October 2009, pg. 16)
Running Head: ABUNDANCE AGRO BUSINESS PLAN 23
Annual Costs
The following phases two through four will take place between November 2010 and the
year 2016. Due to the profitable nature of chicken farming, much smaller amounts of funding
will be needed for the continuous maintenance or operating costs of the farms than the initial
projected $40,000. Sales profits from eggs will create the necessary funds for this business to
thrive in the Jalalabat region of Kyrgyzstan.
Putting It Into Perspective
While $40,000 is equivalent to one year’s worth of average income for just one
American, this total can be broken down into more reasonable segments. Large donations are
always welcome, and investment opportunities may be available in the near future. However,
with only four dollars, one pullet can be purchased and given toward the goal of establishing the
first chicken farm propelling Abundance Agro into a future of economic growth for the Kyrgyz
people. Instead of purchasing a four-dollar latte before work each morning, the average
American could donate this money and fill one chicken farm in just five months. By giving up
five four-dollar lattes a week for just five months, one donor could place the needed 400
chickens into a farm that could benefit dozens of Kyrgyz families. If this donor teamed with four
friends, they would only have to live through one month without their morning coffee, but still
be contributing just as significantly.
Conclusion
Many people like Alik’s family are starving and become slaves to Kyrgyzstan’s
devastating economy. Financial freedom for the Kyrgyz people is reachable through this project.
The chance to save a country’s economy and offer a brighter future is now possible. Children
will be able to attend school instead of searching for jobs. Mothers and fathers can spend less
Running Head: ABUNDANCE AGRO BUSINESS PLAN 24
time worrying about where the next meal will come from and finally spend more time with each
other and their children. A small sacrifice today can mean a lifetime of blessings to a family like
Alik’s. Hope is rising and freedom is near. Join the Abundance Agro Project and do your part to
put an end to poverty.
Running Head: ABUNDANCE AGRO BUSINESS PLAN 25
References
Ajibekov, A. (2005). Paper 5: animal husbandry in Kyrgyzstan. Retrieved September 23, 2009 from
http://www.akdn.org/publications/2005_akf_mountains_paper5_english.pdf
“Background Note: Kyrgyzstan.” (2009). U.S. Department in State: Diplomacy in Action. Retrieved
September 13, 2009 from http://www.state.gov/r/pa/ei/bgn/5755.htm/.
Chotaeva, C. (2008). The Ethnic and Religious Situation in Kyrgyzstan. Retrieved September 15, 2009
from http://www.ca-c.org/journal/2005-03-eng/08.cotprimen.shtml.
Coutsoukis, P. (1996). Kyrgyzstan Structure of Government. Retrieved September 13, 2009 from
http://www.photius.com/countries/kyrgyzstan/government/kyrgyzstan_government_structure_of
_governm~478.html.
Curtis, G. (1996). Kyrgyzstan: A country study. Library of Congress. Retrieved September 14, 2009
from http://countrystudies.us/kyrgyzstan/11.htm.
Curtis, G. (1996). Kyrgyzstan. Country-Data.com. Retrieved September 13, 2009 from
http://www.country-data.com/cgi-bin/query/r-7687.html.
“Facts and Stats.” (2009). Frontline World PBS. Retrieved September 13, 2009 from
http://www.pbs.org/frontlineworld/stories/kyrgyzstan/facts.html#03.
Fisher, R.J. (2004). Poverty and forestry: A case study of Kyrgyzstan with reference to other countries in
West and Central Asia. FAO Corporate Document Repository. Retrieved September 17, 2009
from http://www.fao.org/docrep/007/j2603e/j2603e05.htm.
Foulkes, I. (2008). Kyrgyzstan’s quiet health revolution. BBC News. Retrieved September 13,
2009 from http://news.bbc.co.uk/2/hi/health/7318385.stm.
Frantz, D. (2000). A chicken in every Kyrgyzstan pot. The New York Times. Retrieved
September 24, 2009 from
Running Head: ABUNDANCE AGRO BUSINESS PLAN 26
http://search.ebsocohost.com/login.aspx?direct=true&db=n5h&AN=28902690&site=eh0
st-live
“Governing Democratically and Justly.” (2008). USAID Kyrgyzstan. Retrieved September 13, 2009
from http://centralasia.usaid.gov/page.php?page=article-61&from_t=kgfirst.
“Kyrgyz: Religion and expressive culture.” (2008). World Culture Encyclopedia. Retrieved September
14, 2009 from http://www.everyculture.com/Russia-Eurasia-China/Kyrgyz-Religion-and-
Expressive-Culture.html.
“Kyrgyzstan." (2009). World Resources Institute. Retrieved September 16, 2009 from
http://earthtrends.wri.org/povlinks/country/kyrgyzstan.php
Moldogazieva, N. (2000). Drug use in Kyrgyzstan. Central Asia-Caucasus Institute
Analyst. Retrieved September 13, 2009 from
http://www.cacianalyst.org/?q=node/546/print.
“New Breeds, More Money.” (2007). RDC Elet. Retrieved September 24, 2009 from
www.livelihoodsrc.org/uploads/File/CS1.pdf
“Poverty Resource: Kyrgyzstan.” (2007). World Resources Institute. Retrieved September
13, 2009 from http://earthtrends.wri.org/povlinks/country/kyrgyzstan.php.
“Rural Poverty in the Kyrgyz Republic.” (2009). IFAD, World Bank. Retrieved September 16, 2009
from http://www.ruralpovertyportal.org/web/guest/country/home/tags/kyrgyzstan.
Simpson, B. and Simpson, C. Last revised, (October 1, 2009). Abundance Agro,
LLC: Abundance for today and tomorrow.
Trilling, D. (2009). Kyrgyzstan: Farmers in distress turn to selling livestock. Business and Economics.
Retrieved September 13, 2009 from http://www.eurasianet.org.
Trilling, D. (2009). Kyrgyzstan: Farmers in distress turn to selling livestock. Eurasianet. Retrieved
Running Head: ABUNDANCE AGRO BUSINESS PLAN 27
September 15, 2009 from
http://www.eurasianet.org/departments/insightb/articles/eav012309.shtml.