No to an economy of exclusion
“Just as the commandment “Thou shalt not kill” sets a clear limit in order to safeguard the value of human life, today we also have to say “thou shalt not” to an economy of exclusion and inequality. Such an economy kills. How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points? This is a case of exclusion. Can we continue to stand by when food is thrown away while people are starving? This is a case of inequality. Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalized: without work, without possibilities, without any means of escape.”
Apostolic Exhortation Evangelii Gaudium
Of the Holy Father Francis
A Compassionate Institution
The PUMP-PINAS Agri-Business Corp. (PPAC) is a private for-profit firm with a social-oriented mission & vision. The firm acts as the First Impact Investment Company in the Philippines inviting and harnessing primarily the potential investment of all capable Filipinos, locally or abroad, for whatever amount or effort they compassionately desire to invest. Impact Investors can also be foreign individuals as they can be said as Pinoys by heart. The raised capital for investment, combined with obtained grants, will be utilized for massive agri-business developments primarily in poverty stricken regions. PUMP-PINAS Agri-Business Corp. will provide capital, guide and support to the farmers, fishermen and locals in the places wherein poverty incidence is relatively high. The main task of firm is to comprehensively and primarily ensure tremendous societal impact referring to poverty eradication in every PUMP-PINAS project, while generating minimal and acceptable investors’ financial return. The coverage of the company’s activities cover the full value-chain from pre-harvest to post-harvest. This includes any incidental activities in the agri-business operations like education, training and research or feasibility studies for high-value crops being crucial aspect of pre-harvest processes.
The PUMP-PINAS Project is a specific undertaking in a targeted poverty stricken area. The project proponents will ensure that the preparation, plantation, production, manufacturing and exporting/selling processes of high-value products or raw materials are efficiently and effectively done. Together with the partner association or cooperative, assigned PUMP-PINAS officers in a targeted area are there present and engage in the field to provide comprehensive technical assistance, monitoring, needed financing and guide for the success of the operation. Once a successful operation for specific high-value crop/product is done, the proceeds or net profit will be divided between the group of farmers, fishermen and locals who collaborated in the Project and the PUMP-PINAS Agri-Business Corp. The sharing of the net profit is 80/20 as the ideal sharing; there might be times that the sharing could be at 60-40 or 70-30 between the PPAC and the partner cooperative, depending on the projected returns and risks accompanied in the project. The 80% will go to the group of farmers and fishermen together with some locals who also worked, while the 20% will go to PUMP-PINAS for the Impact Investors’ minimal return and for the operation’s sustainability. During the operation, all locals in the targeted area who worked will also have daily allowance; above the minimum wage. The PUMP-PINAS Project may cover infrastructure development if, for example, the area highly needs better irrigations and roads for more efficient operation. All the tasks under the operation will first be studied and grounded by intensive collaborative research by key institutions for the overall operations including the selection of high-value crops very suitable to the targeted locations. The establishment of the Agri-Business Center (incubator) for Research and Development (R&D) and post-harvest facilities is also included. The production will be based on economies of scale (huge volume production), efficient logistics, cost-efficient market ready packaging, product specifications desired by end buyers, and continuous enhancement in the product quality, high productivity level, and, most importantly, cover the full value-chain of the selected high-value crops. All the activities and performance will have assessment based on the Advisory Board set criteria and some criteria will come from Impact Reporting and Investment Standard (IRIS) of Global Impact Investment Network (GIIN).
The Company’s foundation is a combination of developed and effective structures that could contribute in addressing socio-economic problems: Impact Investment, Business Incubator, and Cooperatives. Most of these structures have been existing and tested for more than a decade and all of them are seen to be effective in eradicating poverty around the globe. These three (3) are the underpinnings of PPAC.
In a nut-shell, PUMP-PINAS Agri-Business Corp. (PPAC) is an innovative firm that harnesses capital for Agri-Business Projects utilizing Impact Investment concept which indicates lower return to investors but high societal impact, cooperatives as an effective collaborative and entry channel to provide projects with economies of scale, and business incubator for product/operation developments. The PUMP-PINAS Projects will target areas with high poverty incidence. PPAC aims to move with the collaboration of other institutions with shared vision. Its mantra is “Connecting Key Institutions for Poverty Eradication.” PPAC projects aim to contribute heavily in poverty eradication, at least initially, in the financial aspect but is seen to gradually address other poverty related concerns and provide integral human development along the progress. On top of everything, PPAC aims to foster a nationwide Bayanihan, rekindling and bolstering its Spirit, and contribute to a Strong Nation Building collaboration among Filipinos locally and abroad; thus, Pinoys Uplifting Marginalized Pinoys (PUMP). An institutionalized unitive movement, both of persons and institutions, that reflects and nurtures love and care for one another.