Manada Chile - Regenerative economy as a novel approach to creating shared value for rural development.
Our goal is to introduce a production scheme that is collaborative, inclusive, with regenerative development, taking care of land and people
I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.
Growth (the pilot has already launched and is starting to expand)
Annual budget in 2017 (USD)
Number of beneficiaries impacted so far
Headquarters location: Country
Headquarters location: City
Valdivia, Región de los Rios, Chile
Location(s) of impact
Chile: Valdivia, Paillaco, Panguipulli, Rio Bueno, Mafil, Osorno, Puerto Octay and Frutillar.
Problem: What problem is this initiative trying to address?
Today, intensive animal production in Chile and Latin America (world´s largest beef exporter region: FAO, 2017), is not sustainable.
Soil degradation has increased due to poor grazing strategies, decreasing water retention, nutrients and soil organic matter. Already reaching around 70% of grazing areas (FAO, 2017)
Use of antibiotics and hormones are common practices to increase weight.
And the price is not transferred in a fair way to producers. A situation which does not allow SME local producers and communities.
Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?
Our solution consists of a shared value creation model in rural development which transforms the meat market, from the small producer to the final consumer, in a space of collaboration, inclusion, and responsible development, taking care of land and people who live from its benefits. Our approach is built on a three-pillar framework:
Regenerative Agriculture: Our chemical-free production allows us to drastically reduce soil degradation and return production to ecologically balanced levels. This way, we preserve natural resources, like water, taking care of the environment and animal welfare.
Responsible Production: We base our values on fair trade opportunities, working with small and local ranchers, contributing to community cohesion.
100% Grass Fed - Healthy Meat: Cattle raised by our associated ranchers are not treated with hormones or antibiotics within the diet. Also, their feeding regimen consists of pure grass, which is allowed to grow naturally, without fertilization.
Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work
Our purpose is to build a herd (Manada) around our regenerative economy approach to rural development. An approach based on building a community of practices, with relevant actors from all sectors, and validating a paradigm shift in the traditional livestock production model through an inclusive value chain.
Lead a process of changing the livestock paradigm in the region and at the national level. Betting on a regenerative management that improves environmental impacts and productivity.
Positioned ourselves as strategic partners for relevant national and regional public institutions to advance this paradigm shift.
Built an inclusive value chain that recognizes and supports rural development through consumer decisions.
22 medium-small producers, equivalent to 5,000 animals (representing 0.2% of national production) and an average of 4 workers, learning with us this regenerative approach.
Managed to reach more than 30 sales points in Santiago.
Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?
The plan that we followed so far has been financed mainly in three ways. Firstly, with minor contributions from the partners to start operating (around 15%). Secondly, through multiple public instruments and contests (at national and regional level) that we have been applying and winning, somehow acknowledging our impact and innovative approach (around 55%). And thirdly, the own income generation model is progressing well (around 30%).
In this sense, the Manada model is expected to be 100% self-sustaining in two years' time. Consolidate an income generation model by increasing the volume of sales and once the two new value-added products that we are developing come onto the market (see attached files). More details below on spread strategies section.
Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?
Three central elements of our unique value proposition are:
- Pioneers to implement a regenerative management: addresses water scarcity, improves soil, increases productivity, and recognizes the key role of small producers.
- Change of paradigm that requires producers, consumers, universities, public institutions, health professionals, and entrepreneurs like us.
- Develop innovative products with added value: first meat bars for athletes in Chile, first burgers of natural meat in the market.
Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.
The moment that triggered the origin of Manada was when the stories and purposes of two Chilean brothers crossed. Cristobal, agronomist who was worried about the sustainable agriculture, and Sebastian, who is an Ashoka fellow for his rural development initiative called Travolution. After several conversations, the idea emerged, as replicating what Travolution did when challenging a paradigm of rural development. In this case, towards greater prosperity for local communities and more environmentally sustainable agricultural model.
Convinced that revolutionizing the system of livestock production in Chile and Latin America will not be an easy task, they decided to build a movement. They needed them all, starting with the regional University and all the innovation and leadership capacities within the region. Where appears the third partner and co-founder of Manada, Patricio Olavarria.
Where did you hear about the Nestlé Creating Shared Value Prize?
Program Design Clarity: We are hungry to know more about what exactly your model consists of. Succinctly list a) what main activities are you doing with your beneficiaries, b) where you carry out the activities? c) how often? d) for how many hours? e) who delivers the services? and f) any other brief details
As described above, our goal is to introduce a production scheme that is collaborative, inclusive, with regenerative development, taking care of land and people. To achieve this, our main focus has been on building the producers herd. In this line, some of the activities that have been carried out during the last year lead by Manada professionals and in partnership with the regional and national government, Universities and local producers organisations are the following:
1. A study was carried out on the current situation in Chile and international trends in the natural and organic meat market.
2. Open seminar and launch to beneficiaries and the meat market value chain, presentation of results on current situation and trends.
3. Workshops for beneficiaries. Management of meadows for natural meat production systems. Holistic Theoretical Management Exhibition -Practice. At University and also fieldworks on a local holistic management farm at Paillaco (see images attached)
4. Workshops for beneficiaries. The quality of bovine meat. Connection with industry and certification of organic meat.
5. Workshops for beneficiaries. Animal management for sustainable production Theoretical – Practical. At Universidad Austral Laboratories, Valdivia.
We are interested in learning more about your initiative's broad impact on sustainable development. Please reply ONLY to the question(s) related to your above focus area.
The scheme presented by Manada is based precisely on a holistic approach that has multiple impacts on rural development.
Access to market: Manada seeks to establish an scheme that brings producers and consumers together under this herd of regenerative economy. For example, communicating the benefits of this holistic management through national tv to consumers (see image attached).
Economic development: There is an increase of the economic margin. Reduction of the production costs by 10% and an increased of 10% of the income due to fair trade price paid by Manada.
Gender equality: the theory of change followed by Manada is based on the construction of communities of practice. And in itself, these suppose a horizontal space of participation, favoring the rescue of rural life, and the role that women have in this development.
Water Management: one of the key attributes of this pioneering management system is associated with its capacity to face the problem of water scarcity and its impacts on the quality of soils.
Nutrition and Health: the impacts on nutrition of a production meat based on 100% grass feed are enormous. And even more, if the management has been done without agrochemicals.
Wellness: one of the central contributions of the model has to do with favoring resilience and well-being of the communities, taking care of land and people.
Creating shared value: How does your initiative create value for different stakeholders?
Manada seeks to transform the important meat market in Chile and Latin America into a space for collaboration, which allows the convergence of purposes among different actors that seek a more sustainable development of our rural communities. For example, the interests of local farmers to improve the quality of life of their families, and at the same time, improve the quality of their soils; the interests of public institutions, which require novel approaches that can lead paradigmatic changes towards greater sustainability of industries such as meat; of the universities where they require key allies in the generation and dissemination of these new knowledge; and even consumers, who every day seek new options for healthier foods and reliable companies aligned with their purposes.
Thus, it is possible to see how this approach, which has been developed by Manada, seeks to encourage the creation of shared value with each of the different stakeholders and also for its shareholders.
How is your initiative funded, now and over the next 5 years?
The strategy we have been designing and the results to date allow us to project that within 2 years we will be able to achieve financial self-sustainability. Today we have an approximate annual growth of 40% of sales, and above all, of new and diverse customers that allow us to find niches to the different SKUs that are generated. With a focus on innovation and value-added, we plan to advance from 30% of the cost-recovery level that we already have towards 100% of the costs covered. This, either by the sales of the various products introduced to the Market, or by the income from the services that we expected to continue providing to consolidate the paradigmatic change of regenerative management in Chile.
How do you plan to influence your field of work if you are a winner of this edition of the CSV Prize?
In Manada we believe in collaboration and systematic approaches to favor the socio-environmental transformations that we need. That is why, from the beginning we have focused on co-constructing with the key actors at the regional and national level, an approach that allows us to move towards a regenerative rural economy, which favors the creation of value for all actors and allows to project wellness for the land and for people. In this sense, if we are winners of this award, we hope to take advantage of the networks, visibility and resources, to deepen the influence and share our model and impacts in Chile and Latin America.
How will you leverage an investment from Nestle to expand the impact of your work?
In the interest to introduce and consolidate this new scheme of production that favors a regenerative economy, with this investment one could consider the possibility of accelerating mainly two processes. First, to give efficiencies and competitiveness to what would consolidate our value chain from producers to the final consumer, improving systems, preparing the model to reach greater scale and investing in certain equipment that will help to manufacture the new value-added products. Second, to be able to accelerate certain areas of work with local farmers that could develop a productive-associative model that allows achieving economies of scale and greater strength to potential initiative outputs, as for example, reaching new markets.
Spread Strategies: Moving forward, what are the main strategies for scaling impact? What’s the projected impact for the coming years? Are you planning to expand your programme into new locations? On what assumptions do you build your scale-up plans?
Our strategies to scale the impact of Manada come mainly in three ways
Firstly, scaling up. We are focused on being able to sell all the differents SKUs and grow in the number of units, so we can reduce costs reaching certain economies of scale given a larger volume of animals.
Secondly, scaling deep. Thinking of the same national market, we seek to deepen the positioning of Manada as a leading and pioneer company in this niche, to incorporate new products. Thus, we open ourselves to the possibility of scaling deep with new value-added products (protein bars, burgers, minced meat, etc.), and even take advantage of the channel to arrive with other animal proteins produce under the same protocols such as chicken or lamb.
Thirdly, scaling out. We have already been contacted from key countries in Latin America to think about the replication of our model. Besides at the end of this year, we won a Prochile fund (government) that will allow us to travel to Peru and explore Lima´s market.
Team: What is the current composition of your team (types of roles, number of full-time vs. part-time staff, board members, etc.)? How will this team evolve as your initiative grows?
We are 4 professional partners who actively participate in Manada. First, Cristobal, Agronomist of the PUC of Chile, recognized nationally for his knowledge in regenerative management. Second, Patricio, food engineer and MBA from the Polytechnic University of Valencia. Patricio is behind the management of the company and involved in the processes of design and innovation of new products. Third, Tomas, an agronomist who leads the entire process of validation and commercialization of Manada products. And finally, Sebastian, who is MSc and PhD in planning the development of the UCL, London, and fellow of Ashoka for his organization dedicated to the promotion of rural community tourism in Latin America, http://Travolution.org. Sebastian mainly fulfills a strategic leadership role in the organization
Awards: What awards or honors has the initiative received?
To date, we have not applied for any fund or prize. However, at the national and regional level, we have been recognized multiple times by various public and private organizations. Corfo, FIA and regional government funds, and invitations to share our model in various events inChile, Argentina, and Mexico, are already part of the acknowledgements.
Organizational leadership: How are you influencing your field of work in the present?
As a pioneering enterprise, we work hard on our brand, consolidate presence and open advocacy spaces. With a unique value proposition, we seek to lead a transformation towards a regenerative management. In this, the first step has been to install the concept of natural meat, reaching the most influential restaurants in Santiago, including 3 of the best 5, and also various written media and even on TV (see attachments). However, the main influence is achieved by our example. This is how we are able to validate a sostenible and even profitable option, where we already have another 22 farmers participating in our activities. And the most interesting thing is that we are learning together public and private organizations. Like a herd!
Should you be successful, please confirm your availability to attend the Ashoka Impact Boot camp and Creating Shared Value Prize Live Pitch Event at the World Water Forum 13-16 March 2018
Yes, I am available to attend the events on 13-16 March 2018