1 remarkable experience

University of Washington

Machuca Village, Coclé Province, Panama March 20-27 2010

7 Panamanian families

29 UW students

Presentation made by: Karthika Appiah

Introduction

Granja Apros• Sell to community• For personal

consumption Chicken GoatsFarming – yucca, ….Tilapia

7 families Live in community (Machuca) Work on the farm (Apros) Maintain additional jobs

GRANJA APROS

Granja Apros

Farm began as source of subsistence Cheaper to farm on

vegetables, process own chicken, etc.

A communal effort from families of village Each family contributes

work Expansion of the chicken

business Currently, most of the farm’s

businesses are for subsistence

In the future, they hope to expand the farm as a source of steady income

SUBSITENCE VS. INCOME

Panama

Panama City, Panama Province Source of revenue:

Panama Canal Minimum wage:

$285/month, $1.78/hr Casco Viejo

Penonomé, Coclé Province City closest to

Machuca Village Machuca Village Low standard of

living Poor family

planning

Machuca and UW

Goal:- Provide the villagers with a tools, resources and knowledge to create a sustainable business.

Community Investment

Fund

• $2900• $100/student

Knowledge

• Marketing• Accounting

• English

Resources

• Chickens • Freezer• Building materials

REASON FOR VISIT

Potential Projects

Chickens• Expand the chicken business

Goats• Expand the goat business

Bakery•Build a bakery to bake and sells goods

Organic Farming• Sell goods grown on the farm

Strengths

• Big profit maker

• Source of food for families

• Demand in the community

• Customers are aware of the chicken business

• Farmers are passionate about the chicken business

Weaknesses

• Weather in winter interrupts chicken production

• Capacity of fifty chickens

• No storage for processed chickens

• Inability to compete with local chicken business

Opportunities

• Expansion of chicken coup

• Ability to compete with local business

• • Provide

chickens at a higher price

• Build stronger business relationship

• Increase profit $1.16 / lb. of chicken

Threats

• Too much demand

SWOT ANALYSISChickens

Buying 150 chickensExpanding the coop and making it

weather-proof

SOLUTIONSChickens

Buying a freezerCreating a two

week processing cycle

Material Amount Price

12 sheets of 8ftx42in zinc

$2.20/ft $211.2

0

9 columns of 12 blocks

$1 each $108.0

0

300 normal cinder blocks

$0.60 each

$180.0

0

12 pieces of rebar $7 each $84.00

5 pieces of different rebar

$2.25 each

$11.25

120 ft of beams $1.20 each

$144.0

0

200 screws $0.20 each

$40.00

20 sacks of cement

$9 each $180.0

0

Roll of mesh $100.00

COST INFORMATIONChickens

Material Amount Price

3 lbs of 14 in. wire $1.25 per lb

$3.75

4 lbs of nails $1.20 per lb

$4.80

Transportation cost

- $50.00

150 chickens $0.50 each

$75.00

6 bags of chicken feed

$22.50 each

$135.0

0

9 bags of fatty feed

$24 each

$216.00

3 varieties of vitamins

$4.50 each

$13.50

Freezer - $300.00

TOTAL $1900

$1900 out of the $2900 Community Investment Fund was used to expand the chicken project

Goats

Farm has 1 male goat, 2 females, and two offspring Expansion limited by need

to prevent inbreedingGoat milk primarily used

for children’s’ consumption and occasional sale

Farmers have training to make both cheese and yogurt

CURRENT SITUATION

GoatsSWOT ANALYSIS

Strengths

• Goats are a high quality Costa Rican breed

• Low cost of production

• Multiple uses: milk, fertilizer, sale of excess goats

• Self sufficient

• Long useful lifespan

Weaknesses

• Expansion into sustainability requires additional goat

• Demand less well defined than chickens

• Current pens at capacity

• Viability of selling dairy products limited by lack of refrigeration

Opportunities

• No local competition

• Potential for exponential growth

• Relatively low cost to expand

Threats

• Price may be too high for community

• Goats may difficult to replace in case of death or disease

Goats

Optimal number & gender of additional goats for expansion

Forecasted financial projections from expansion of goats over the next 3 years

Financial gains from expansion of goats versus chickens

Financial gains from expansion of goats versus kitchen remodel

CONSIDERATIONS

Goats

$400 out of $2900 Community Investment Fund was used to expand goat project

COST INFORMATION

Material Price

1 male goat $250.00

Immunizations/vitamins/medicine $50.00

Construction of goat pen $100.00

Zinc roofing material

$30.00

Chainsaw operator

$70.00

TOTAL $400.00

Kitchen CURRENT SITUATION

Only small area for cooking

A roof that needs replacement

A cleaner, proper area for processing the chickens o Expansion in chicken

business requires a better kitchen

Kitchen

Renovate and expand the kitchen

Total estimated cost for total renovation = $1500

We gave $500o A cement expansion to the kitchen

with a zinc roofo Steel tables for preparing chickens to

sell and food to eat

This extra space provides:o Comfort o Increased capacityo Increased labor efficiency

SOLUTION/COST

Future Projects

Transportation Projects

Bakery

Expansion of Goat Business

Future ProjectsTRANSPORTATION

2-mile trail to the farm30-minute up-hill hike to

communityFarmers carry bags full of goods

over their back20 ft. river crossing at the end

Future Projects TRANSPORTATIONPROBLEMS

Rainy Season Trail especially dangerous Less trips to the community More time, energy, and risk

Low Capacity 5 lb. Carrying bags 2 horses used for most transportation

Labor 2-mile transport of goods uphill 30 minutes by foot

Future Projects TRANSPORTATIONSOLUTIONS

Gravel

•Sections of the trail benefit from heavy gravel/cement

•Rainy season would be less taxing

•Easier on farmers and horses

Bridge

•Allow farmers to get across river

•Prevent the damage of food

•More accessibility in rainy season

Horses

•Increases time/energy for farmers to complete other tasks

•Less taxing on the farmers

•Faster trips to and from the farm

BAKERYFuture Projects

Women are formally trained bakers

Demand in community

No competition

Need an infrastructure that would meet food safety requirements

CostlyBreak-even point could

occur very long down the road

Unstable marketAdding the bakery

could provide too much work for the farmers and therefore not be a sustainable operation

PROS CONS

Would be an ideal business 5-10 years down the road

Dual benefit for Machucha Farm and Community

Increased infrastructure from more capacity

Buying another male and female

Research and develop milk process

GOATSEXPANSION

Future Projects

Accounting Workshop

Looked through notebooks Columns with amounts Each commissioner had a

different notebook

Asked questions of treasurer, Graciela Understanding of her

expectations Her current frustrations Communication between all

members of the farm with her

ACCOUNTING ANALYSIS

Goal:- Provide farmers with the knowledge and skills for efficient accounting

Accounting Workshop

More thorough documentation Consolidation of books by

animal, revenues and expenses

Describing costs Calculating profits

On a per pound basis Knowledge of profit level

OUR RECOMMENDATIONS

Streamlining the process: Purchases – Commissioner – Graciela

Marketing Workshop

Marketing Workshop

English Workshop

Goal:- Provide farmers with an interactive experience to learn English

PRESENTATION

Created set of pictures to teach vocabulary to the farmers

Common phrasesCultural exchange

“Hello” in many different languages

English Workshop

Farmers were eager to learn the words and phrases we taught them

They took notes and were very involved

In the days following, a few of the farmers would try out the phrases they had learned

RESPONSE

Application of Classroom Learning and Knowledge

Applied marketing and accounting skills Calculated financial

projections, breakeven points, and profit forecasts

Communicated in Spanish

Strengthened teamwork

Farmers’ Comments on Their Experience

First, nervous and anxious for our arrival

Hopeful for the help we could give in creating a more consistent income that would allow them to send their children to school

Surprised and happy to see how caring, involved, and helpful we were

Overcome with gratitude for our contributions

Pleased to have made a “new family”

Students’ Favorite Parts of the Trip

Cultural InteractionExploring Panama CityEnjoying Delicious

FoodLearning about and

spending time on the Machuca Farm

Helping Others/ Making a Difference

Most Powerful Experiences of the Trip

Lives, aspirations, and cultural values of the farmers

Education is important yet unaffordable

Power we, as students, have in helping those less fortunate than ourselves

Dedication of farmers

Students’ Overall Experience

“It was the most amazing experience I have ever had. I have never felt so connected with a group

of students than I did on the trip. I met some amazing people and had the time of my life while

helping others.”

“Everyone should do it.”

“This trip was an excellent balance between a fun spring break vacation and a meaningful

academic excursion. It was a fun and rewarding learning experience.”

S T U D E N T S G AV E A R E S O U N D I N G :

DEFINITELY!

Would You Recommend this Trip to Other Students?

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