Food For Progress

SAMPLE INTRODUCTORY STATEMENT

 

Program Summary: 

For the Dry Valley of western Elbonia, ABC will monetize 3,000 MT of soybean oil and 5,000 MT of soybeans and use generated proceeds over a one-year period to (1) produce a protein supplement through the use of new technology for income generation; (2) train select local food processors to use new technology to produce more efficiently; and (3) provide micro-credit loans to women seeking to create, improve, or expand their agribusiness or food production activities.   In addition, ABC will give a four-pound bag of green peas to up to 200 select workers in exchange for advertising the new protein food product in western Elbonia.   

 

Organization’s Capability to Implement the Program:  Beginning in 1990, ABC has successfully managed Food for Progress programs in the Elbonia and several other countries using monetization proceeds totaling over $50 million.  ABC also currently manages a Section 416(b) program in Olotu  valued at $3 million, and two Section 416(b) monetization programs in Retono valued at $2.4 million.  ABC is also presently managing USAID Title II Monetization programs in 3 Caribbean nations.  ABC has an office and staff located in Cristobel.

 

ABC has implemented numerous programs in food processing, agricultural production and agribusiness development, and  business and financial services around the world.  More specifically, ABC has implemented a similar program to develop the soy utilization in Olotu.  Under that program, which is currently in its third and final year, a total of 9 small food processing companies have new machinery and  increased their production of value added soy foods for the consumer market.  ABC has worked closely with several USDA commodity cooperator groups and developed this proposal in coordination with those groups which have expertise in soybeans and green peas.  ABC has also successfully implemented micro credit programs aimed at women in the Caribbean. 

 

Description of the Need for the Proposed Program:  Elbonia is a low-income food deficit country in need of food aid. The per capita annual income remains around $400 and the rural unemployment hovers around 25 percent.  The number of unemployed female heads of household tops 35 percent.  The sale of soybeans and soybean oil will complement commercial imports in a country where foreign exchange remains scarce.   This proposed program fits the Food for Progress criteria, as it will promote private sector development in agriculture, by introducing new technology into the food processing industry that will  promote  growth of privately owned, rural and agricultural small and medium enterprises. 

 

The Government of Elbonia (GOE) plans to increase the pace of economic reform and to focus particularly on rural development. In addition to restructuring its economy, the GOE places priority on the reduction of poverty and job creation. The agricultural sector is key to these objectives. Agriculture contributes 35% of the GDP in Elbonia and employs approximately 80% of the population. As part of its strategy to reduce poverty, the GOE is promoting diversification of rural and agricultural incomes, and job creation through growth in privately owned small and medium rural enterprises.   In addition to promoting agricultural diversification, the GOE has also enacted reforms to promote the development of rural small and medium enterprises. These new privately owned enterprises could lead to even more significant job creation and market growth in sectors including agro-processing and value-added agricultural products. 

 

 

Funding Request:

 

Expense	Requested Dollar Funding	Estimated Monetization Proceeds
Administrative Expenses	0	$253,000
ICR on Administrative Expenses	0	$26,000
Monetization Activity Expenses	0	$2,540,000
ICR on Activity Expenses	0	$130,000
ITSH	0	$60,000
Total	0	$3,009,000