EGK 2011: Agriculture 06 ECOPIA

Ecopia

Ecological Products of Ethiopia (ECOPIA)

„The Pure Joy of Nature“ November Addis Ababa

Content

1. Ecopia 2. Ecopia in Rural Areas3. Ecopia Future

Base of the Pyramid1. Ecopia


80 % of the Population


Build Bridge


Create Value for Top

Structure1. Ecopia

Basic Information

Ecopia is a social company that orchestrates the value chain of organic food production, processing and marketing

1. Ecopia

Basic Information

The headquarter is in Addis Ababa, Ethiopia

1. Ecopia

Basic Information

Processing facilities are in

Chucko and Safa for pineapples,

Chencha for highland fruits,

Bahardar for Guava Assosa for mango.

1. Ecopia

Ecopia Holding Structure1. Ecopia

Ecopia Holding Addis Ababa

Ecopia Chencha•Apple•Plum

Ecopia Chuko

•Pineapple •Amaschok

Ecopia Safa

•Pineapple

Ecopia Assosa

•Mango •Hibiscus

Objective1. Ecopia

Training Establish

IncubationCenter

Collect, investadministrate moneyfor local businesses

Structure of Business Unit1. Ecopia

Ecopia Services invest in equipment, knowledge and

resources transfer from the different sources in their

business units in an early stage (seed investment)

Ecopia Assosa: co-investment in training with World Vision

1. Ecopia

Finances1. Ecopia

Ecopia Products1. Ecopia

Fruits & Vegetables: Apple Ambaschok Mango Zetuene (Guava) Casmer, Papaya, Plum etc.

Products: Jam & Compote Juice, Syrup, Wine, Vinegar Dry fruits for tea & cereals Pickles & Soup

Ecopia Products1. Ecopia

We have developed 42

products, which are sold

in Supermarkets

& Hotels

1. Ecopia

Content

1. Ecopia

2.Ecopia in Rural Ethiopia

3. Ecopia Future activities

Aim of the project

Train 100 Organic Mango Producers

2. Ecopia in rural areas

Results

5 processed products in high quality standards with traceability of organic farmers

Ecopia in rural areas

Traceability Labels indicate:

Traceability Code Expiration date Consumer information Contact


Ecopia Lante and Assosa Products

Mango Juice & Syrup


Ecopia Assosa Products

Mango Jam & Compote

2. Ecopia Assosa

Ecopia Safa/Chuko Products

Dried Mango for

Tea & Cereals


Mango Wine & Vinegar



Hibiscus Wine & Vinegar


Content

1. Ecopia 2. Ecopia rural area

3.Ecopia future work in rural areas

Structure Model3. Ecopia Assosa’s

Future

Farming Field School

Lodge

Incubation Center

Incubation Center

Incubation Centre

Ecopia Holding(Services)

Production and selling to Ecopia

Investment centre Services&Support

to create companies

Investment Model: IC

Ecopia: Equipment, Training Staff, Services

INCUBATION CENTER

Ecopia plc.

Production Facility

(equipment)Services (glass, training, quality

control, traceability) & management

Others like shop,Café &

tourisms

Marketing &promotion

World Vision

Cooperative

Primary Cooperatives members

are processing

Ecopia plc

Ecopia Asosa

Issues:- Coop does not pay tax/VAT-- price build-u: 21 birr + 4 birr VAT is 25 birr for jam when Ecopia sells-- direct sales: 5 birr to Ecopia for jam-- World Vision provided land and facility to cooperative-Initial rent was shared by WV and Ecopia

Ecopia plc.

Production Facility

(equipment) Services (glass, training, quality


Others like shop,Café & tourisms


SNV JACA

Cooperative

Primary Cooperativesmembers are

processing

Ecopia plc

Ecopia Lante

Issues:- Coop does not pay tax/VAT Contract for pricing needed Direct sales: x birr to Ecopia for payment services- Investment possibilities of coop limited?

Ecopia plc.

Production Facility




tourisms


Others

Cooperative

Primary Cooperatives members are

processing

Ecopia plc

Ecopia Chencha (option 1)

Issues:- Coop does not pay tax/VAT- Contract for pricing needed- Direct sales: x birr to Ecopia for payment services-Investment possibilities limited?

Ecopia plc.

Production Facility




tourisms


Others

Cooperative

Primary Cooperativesmembers are

processing

Ecopia plc

Ecopia Chencha (option 2)

Issues:-Coop members are processing and sell to Ecopia- alternative cooperative only supplying (not preferred)-Contract for pricing needed

Ecopia plc.

Production Facility




tourisms


Others

Women group member areprocessing

Ecopia plc

Ecopia Dire Dawa

Groups

Issues:-Contracts for pricing needed-Groups need to be strengthened not only technical but also organizational-Groups pay tax? Since plc’s-Limited investments possibilities groups

Processing groups members are

processing

Ecopia plc.

Production Facility


control) & management


tourisms


Others

Cooperative

Primary Cooperatives

Ecopia plc

Groups/ individuals / staff

Ecopia Chuko/Safa

raw materials/services

raw materials

Issues:-JV with Ecopia, venture capital, groups, staff and coop (last one doubtful)-- Idea Ecopia 80% or less and rest 20% or more-Groups selected form 100 trained (coherent, locality) with potentially service link with cooperative- Coop does not pay tax/VAT but JV does- MoA and articles of association required- contracts for pricing needed

Ecopia plc.

Production Facility




tourisms


OFWE

Association group member areprocessing

Ecopia plc

Ecopia Bale

Groups

Issues:-Contracts for pricing needed-Groups need to be strengthened not only technical but also organizational-Groups pay tax? Since plc’s-Limited investment possibilities associations

OFWE


Ecopia

Corporative: 20 % of

Initial Investment CostsINCUBATION CENTER


Ecopia

Government: LandWorld Vision: Cold Room

other NGOsCorporative

INCUBATION CENTER

Subventions & Co-financing

Ecopia Assosa

Ecopia Chucko

Ecopia Safa

Ecopia Chencha

EcopiaAddis

20 ha: Production facilities

50 ha: Planting

20 ha: Production facility & Lodge

20 ha: Production facility & Lodge

?

20 hectare

Thank you for your attention!

Ecopia is a social company www.ecopia.de that uses mobile telephones to orchestrates the value chain of organic food, cosmetics and herbal production, processing and marketing. The head quarter is in Addis Ababa, Ethiopia. We have an office in Chocko, Safa, Lante, Chencha, Konso (in the southern Region) Dre Dawa and Assosa.

Introduction

Traceability Labels indicate:

Traceability Code Expiration date Consumer information Contact


Track me We are working that our lables to integrate

barcode system where by: Traceability Code Baracod system for tracking system that is integrated in

the mobile phone. (Ecopia is disusing this functionalities with Motorola mobile phone hardware providers)


Pay me !!! Ecopia will implement the first quarter of 2012, its

concept of Trace, tack and pay me with the use of Dashne Bank: mobile pay card system.


Essentially, ECOPIA has invested for the past five years in establishing a database of its suppliers (we have now 11,000 farmers in our database of suppliers). Whereby the suppliers are advised to acquire mobile phone in order to implement our tractability code. We have started with our traceability code to bring a product from its conception to its end use consisting of the input suppliers, producers, processors and buyers.

Ecopia Plc.

Organic products rely heavily on technology, transportation, management and logistics for physical fulfilment, and on marketing and government regulation for maintaining an efficient consumer market. ECOPIA business model is structured on the co-creation of organic products value chain in East Africa; we control the activities in the market by using mobile networking.

Ethiopian organic products challenges:

Ecopia Plc is the first mobile phones based conductor in Organic Food production in East Africa and we want to process our products on web-based food processing software for mobiles. We are the first food industry that has been able to bring products, technologies and services to the regional market by orchestrating 12 Ethiopian organic value supply-chain sectors:1. Organic products: fruit, vegetable, cereals, herbal producers and sellers 2. Buyers of Ecopia products and Ecopia farmers products3. Producers4. Consumers5. Processing facilities6. Logistic and linkage service providers7. Labelling8. Marketing 9. Packing companies10. Regulator and Certification providers11. Research Institutions and Universities12. Dealers and Retailers

Mobile based application

We use mobile phones to address the major constraints at each level of the supply; demand and net work chain, rather than concentrating on just one group (e.g., producers and processors) or on one geographical location.

Mobile based sourcing

We use mobile because our suppliers (11,000 2011 and 2 milion in 2015) can not read and write, have no access to transport and computers . Therefore Ecopia use mobile for:•Orchestrating the 12 value chain of organic food processing •Increasing the offer •Planning •Controlling•Tracing •Tracking

Mobile based sourcing

1. To bring together demand and supply without any corrupted middlemen, who misuse their position of dealers.2. Enable the organic farmers to participate directly in the market and price making process.3. They are accessible for every one4. Easy for every one5. Every farmer can participate in the market6. Distance is no long an attribute to access to the market7. Food market becomes transparent.8. You only need mobile to be part of the web based processing team of Ecopia.

Why mobile phones?

Ecopia wants now to develop Mobile Phones based ERP and MRP

We want to use mobile for web-based Enterprises Resources Planning (ERP) and integrating our partners and consumers who are decentralised in the region to regional and international Market. We need web-based Market Resources Planning (MRP).

Mobile based sells and distributions

•Create a Real time Reversed Auction (RTRA) for African food Sector.

•To develop a platform that integrate all the decentralised farmers and partners in Organic food processing to Ecopia ERP and Regional and International Organic Food market without any special devices by just using mobile phones.

Our aim: Real time reversed auction

Why reversed and not ebay system?

1. Advantage to the Farmers: as price is always an offer 2. In the ebay system the price is created in the last second.3. We determine the price by auction4. Get repayable price5. ERP for African Food Processing .6. MRP for African Food to go to International Market (European, American and Japan market) planning: Organic Market is growing at 15% in the world market.

Real time reversed auction

The interface technologies we are going to use are:

1. SMS interface2. Voice application 3. Voice human to human and in the near future Human Computer interface.

Real time reversed auction