G-2270

Generation of self-sustainable

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Project Description

Region: South America

Country: Perú

Location: Cusco

Total Budget: $153,884

Area of Focus: Community economic development



To strengthen the economic resilience on Alpaca family producer from High mountains communities. This could happen through the development of fiber marketing with added-value to improve substantially and sustainable their incomes using the right technology of processing and transformation

The Project will support directly 100 families belonging to alpaca's breeders' asociations from Trinki, Marampaqui and Huacaticgo from the Ocongate district in Cusco Region.

Also, indirectly will support another 40 artisan families, who change the alpaca's fiber to textils, getting artisan quality threads, and link the fiber production to the local,national and international market.

PROJECT PLANNING

• Describe the community needs that your project will address:

In Peru the Alpacas' breeding is a common activity on high mountains zone, over 4000 m. over sea, representing the main economic support for 600.000 families, of which, the majority are in extreme poverty.

About the distribution of the alpacas' population and according to the race, Huarcaya become the predominant one inside the flocks (96%) and the Alpaca Suri, represent only 4%

The Alpaca fiber, because of its textile characteristics, become exotic, appreciated and with high demand on the national and international market, competing in quality with the 3 natural fibers in the world

On the other hand, it is evident that carded fiber (Tops) filters and thread, from alpaca's fiber have a high commercial value at the national and international Market. Nowadays there is a non satisfied demand at the national industry, which is composed mainly by big industries articulated with the international alpacas' fiber market, tops market, thread market, related with "fair trade"). However, most of the alpaca's families and organizations sale the alpaca's fiber without added -value to intermediate marketers, that means as a brush (fiber freshly sheared) or perhaps classified between 18 and 20 soles per kg,.

Most of the high mountains communities, from Cusco regions, over 4000 m.o.s, work with camelids (92%), as a main occupation, emphasizing that occupation in other economic sectors, has not significance. The main source of family income is the alpacas fiber production and marketing.

- The alpaca family breeders, don't know the process or added - value in alpaca's fiber.

- The intermediation affected the alpacas' breeders, who receive between 5 to 9 soles per pound (colors and White respectively)

- Lost of color diversity (20 different color tones),because of the market industry, which doesn't value the genetic resource, despite of the growth of the market niche about the natural fiber

In order to allow the own alpacas breeders, who can process and give added value to their own fiber, Rotary Club and partners will promote the capacities development, market opening and process equipment of scarring, washing, carding and spinning, allowing alpaca's fiber processing into tops, thread and improving the prices for the alpacas family breeders, according to the quality and type of fiber

The handmade thread production belongs to a value chain. This value chain is inside the production chain of alpaca's fiber. However this chain has its deficiencies and still has to be developed, it is a very old chain of the sector, and it is possible to trust on the agents, which interact to run a common business. There is already a social and economic structure, this is why we predict success in the production of thread..

Economic At the beginning of this study, we can see that the craftsman had as a better income, an average of 900.00 Per year This income meant as a net income per labor hour S/. 1.00 p, on average. Knowing that the craftsman is partner of the alpaca breeder, but as a simple producer, doesn't have incomes because he doesn't change the raw material

The proposal business let the craftsman to get also a minimum utility that will cover his labor 2, 50 per hour. Also an alpaca breeder will be included on the thread process, so he will receive the same as the craftsman That means if we include the artisan and breeder in thread production there will have an income of 2.50 soles per each labor.

Social. The craftsmen from Ocongate, as in our entire Highland zone, have an ancestral identification on their habits, race, language and Andean values. Because of that, it is affirmed that the thread craft, is part of their identity and culture, hardly leave this activity.

An alpaca's fiber thread at low price, less than the market one, with a basic technology, will let them to reach faster than their soul and blood want to express. The 100% alpaca thread, at a competitive price, well done, very regular and high production would excite them to express and revalue their culture through their woven..

The communities of alpaca's breeders are convinced, with strong will, that when they commit, they fulfill their responsibilities. After that, we have the agent commitment, between the fiber collector, the maquila, the dyer, the sketching, the twisted, the open and the carding operators Finally having a competitive alpaca's fiber yarn to the market.

Technology. This Project aims to get handmade products, under a basic technology. A very old aspiration from the highland alpaca's breeders. Needless to say when a new central government authority come to this, zone, the first thing that they ask, is a factory that could process the alpaca's fiber. This situation is repeated in Puno, Huancavelica, and other alpacas' regions

Because of that, the Project place elemental machines to have not only better products, more regular and at less cost, but also to promote an important impact inside the South American camelids chain, that will be favored by the technological process of fiber, to access on new and most demanding markets

• How did your project team identify these needs?

The sustainability is based on an existing thread market, with a known unsatisfied demand. The economic circuit is achieved, that means that we have already operators in each link that makes the operation possible. So the Ocongate breeders only would have to be inserted on it, where they have to be, that implies as craftsmen suppliers of handmade yarn.

The determination of the needs is based on the secondary information from the national statistic, the regional poverty situation and vulnerability of the intervention zone.

To get the primary information, many techniques and participative instruments are used to determine the problematic, actors' identification and future visión since the perspective and distrital authorities, families, leaders and local entrepreneurs.

• How were members of the benefiting community involved in finding solutions?

Strength is the sustainability of institutional alliances, which promote the collaboration between the different actors from the handmade productive chain. Strengthen this relationship: Enterprise - alpaca's breeders- public and private institutions will be the keys to business

The cooperating entity that support the organizations must be clear on its mission and where must be and how far should it go The craftsmen will do not by themselves, so the professional staff of the institution have to take action.

The intervention must be based on the Business Plan, considered the most important tool. Immediately must be selected the coordinator, that within his leadership characteristics must have another like wide call, knowledge about the geographic zone and habits, and definitely, to have clear the business focus and reach a close contact with the customer Since the business start, we must have clearly the role and the customer's importance. This concept must be driven by the coordinator and transmitted to the recipients. A success key must be the trust that could develop between buyers and alpacas' breeders. His mission must be to strengthen this relationship. By the other hand alpaca's breeders promote the training aimed at improving skill to satisfy the requirements from the known customer. Likewise, by the buyers side, the products must be presented in the best way, telling the truth about its real potential

Primary Host Partner

District: 4455

Rotary Club of: Nueva Era Cusco

Primary Contact: Lili Huallpa Camero

Email: amec.cusco@gmail.com

Primary International Partner

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Project Status

Need $97,590
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Project listed for the 2019-20 Rotary Year.

Proposed Financing

Existing Contributions Towards This Project

Date

Cash

DDF

Total

Nueva Era Cusco (4455)

14-Nov-19

$5,000

$0

$5,000

Remaining Amount to Raise

Additional Club Contribution (Needed) - Add a contribution

$97,590

-

$97,590

Amount Requested from The Rotary Foundation

$51,295

$0

$51,294

Total

$153,884

Note: as of July 1, 2015 there is a 5% additional support fee for cash contributions. This fee does not appear in the financials above because it does not apply if the funds are sent directly to the project account (without going through TRF, and therefore without Paul Harris credit). Clubs sending their cash contribution to TRF must be aware they will have to send an additional 5%.

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History Log Entries

14-Nov-19

System Entry

System Entry: Creation of project page.

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