Submitted
Last Updated July 19, 2018
Work of the Future
Safi Organics
Team Leader
Samuel Rigu
Basic Information
Our tagline:
Using technology to decentralize fertilizer production, supporting networks of village-based fertilizer plants that create sustainable and profitable rural employment.
Our pitch:
In emerging economies such as Sub-Saharan Africa, there is a lack of rural employment opportunity. As such, many rural residents have to migrate to urban slums to find work. Not only is this a rural talent drain, but it also leads to unsustainable megacities. Meanwhile, most agricultural inputs such as fertilizers are processed/produced near urban areas before being shipped to rural communities, and this is logistically expensive.
We use technology that has been developed based on new biomass chemistry and licensed exclusively from Massachusetts Institute of Technology to downsize/decentralize fertilizer production, thus supporting village-based, small-scale, and profitable fertilizer plants ('MiniPlants') utilizing only locally available resources/labour, instead of importing fertilizers from the outside. Each of our 'MiniPlant' creates rural job/income opportunities worth ~US$250,000 per village (about 10% of the entire village's GDP), encouraging rural youths to stay rather than migrating to urban slums. Additionally, our process produces a carbon-negative fertilizer blend that also restores the health of degraded soil, improves farmers' post-harvest yields by up to 30%, doubles their income, and sequesters 3.4 tons/acre/year of CO2 equivalent. Therefore, our solution develops the rural work economy in a carbon-negative way.
We have set up a pilot in Kenya, demonstrated a positive production gross margin, and have acquired 1,000+ paying customers. We will scale through a franchise model, where we provide farming cooperatives and microentrepreneurs the training and equipment to help them deploy and operate MinPlants in their own villages and create village-based jobs in exchange for a franchise fee.
We use technology that has been developed based on new biomass chemistry and licensed exclusively from Massachusetts Institute of Technology to downsize/decentralize fertilizer production, thus supporting village-based, small-scale, and profitable fertilizer plants ('MiniPlants') utilizing only locally available resources/labour, instead of importing fertilizers from the outside. Each of our 'MiniPlant' creates rural job/income opportunities worth ~US$250,000 per village (about 10% of the entire village's GDP), encouraging rural youths to stay rather than migrating to urban slums. Additionally, our process produces a carbon-negative fertilizer blend that also restores the health of degraded soil, improves farmers' post-harvest yields by up to 30%, doubles their income, and sequesters 3.4 tons/acre/year of CO2 equivalent. Therefore, our solution develops the rural work economy in a carbon-negative way.
We have set up a pilot in Kenya, demonstrated a positive production gross margin, and have acquired 1,000+ paying customers. We will scale through a franchise model, where we provide farming cooperatives and microentrepreneurs the training and equipment to help them deploy and operate MinPlants in their own villages and create village-based jobs in exchange for a franchise fee.
Where our solution team is headquartered or located:
North Kinangop, Kenya
The dimensions of the Challenge our solution addresses:
- Other (Please Explain Below)
If you selected other, please explain the dimension of the Challenge your solution addresses here:
Income Growth & Job Creation
About Your Solution
What makes our solution innovative:
Our MIT technology relies on a new thermochemical process that is 100 times faster than composting and can complete fertilizer production in under 2 hours. This reduces operating costs by 1/10, and makes it possible, for the first time, to support profitable and self-scaling village-based enterprises that also scale rural livelihood with it.
One prominent competition is organic composting. However, the biological process of composting is excruciatingly slow, requires significant land and labour, and often the operating costs are too high to be profitable/self-scaling.
One prominent competition is organic composting. However, the biological process of composting is excruciatingly slow, requires significant land and labour, and often the operating costs are too high to be profitable/self-scaling.
How technology is integral to our solution:
We rely on a new scientific concept developed at MIT as the PhD thesis of the company's co-founder (Kevin Kung) to enable decentralized production of high-yield fertilizer using locally available resources/labour in rural villages. The concept, called oxygen-lean torrefaction, is a simpler method of processing biomass into upgraded products such as fertilizer. Dr. Kung demonstrated how it can work with variety of input feedstock; drastically simplify the fertilizer production technology and downsize its scale; require no external energy to operate; and can be repaired using locally available parts when broken. These discoveries make the technology suitable for village-level deployment.
Our solution goals over the next 12 months:
We are working on scaling and expanding our operations to 5 villages in the next 12 months, allowing us to create around 150 jobs.
By scaling our production to 5 tons/day, we anticipate becoming profitable in the next 6 months. Each new village-based operation will take about 12 months to reach break even.
In the next 12 months, we will expand this impact assessment to 3 villages involving 200 farmers, such that we obtain a more robust set of impact data over a larger range of agricultural contexts.
By scaling our production to 5 tons/day, we anticipate becoming profitable in the next 6 months. Each new village-based operation will take about 12 months to reach break even.
In the next 12 months, we will expand this impact assessment to 3 villages involving 200 farmers, such that we obtain a more robust set of impact data over a larger range of agricultural contexts.
Our vision over the next three to five years to grow and scale our solution to affect the lives of more people:
We imagine a dense network of decentralized and profitable fertilizer production plants in various rural villages, each serving a radius of ~15 km (500-1000 farmers). Each of these plants will produce around 5 tons/day of fertilizer for the local farmers, and will create (in receipts/profits) an additional 10% to the village's total GDP. At full scale, each of these 'MiniPlants' can support ~50 casual workers, and the post-harvest income the local farmers. By 2023, we plan to engage 5,000 villages in such endeavors, creating US$200 million/year in additional rural job opportunities.
Our website
http://safi.strikingly.com/
Our promotional video:
Find out more about us. First link:
https://www.youtube.com/watch?v=L1i-hntEW8w
The regions where we will be operating in the next 12 months:
- Sub-Saharan Africa
How we will reach and retain our customers or beneficiaries:
We have already deployed 150 preliminary reactors in rural Kenya, each unit costing ~US$20 to manufacture. We have set up a pilot production with a capacity of 2.5 tons/day. This enabled us to hire 6 full-time and 4 part-time employees, and engage in 35 village-based workers. Based on the audited financial figures in the past 12 months, our production proved to have a 40% gross margin and is profitable at 2 tons/day.
How many people we are currently serving with our solution:
We have expanded to more than 1,000 paying customers largely through very positive word-of-mouth reviews.
We predict that a full-scale production at 5 tons/day will create $250,000 in value in a village, or about 10% of the village's GDP. We have begun training local microentrepreneurs, such that they can run and expand the operation in their own villages, creating even more rural jobs/impact.
We predict that a full-scale production at 5 tons/day will create $250,000 in value in a village, or about 10% of the village's GDP. We have begun training local microentrepreneurs, such that they can run and expand the operation in their own villages, creating even more rural jobs/impact.
About Your Team
How our solution team is organized:
- For-Profit
Explaining our organization:
In the U.S., we are a Delaware C corporation (established in May 2015). In Kenya, we are a private limited company (established in February 2015). Currently our main operation is in Mwea, with a satellite office in Ekalakala. Currently, as we expand, we are setting up a new company in Delhi, India, and will be operating near Kolhapur, Maharashtra, though our primary work so far is Kenya-based. <br><br>We have 2 employees in the US and 1 in India. In Kenya, we employ 6 full-time and 4 part-time employees, and a network of 35 village-based workers for our pilots.
How many people work on our solution team:
- 13
How many years we have been working on our solution:
- 3-4 years
The skills our solution team has that will enable us to attract the different resources needed to succeed and make an impact:
Samuel Rigu and Kevin Kung worked on the project full-time since 2013. Samuel grew up in rural Kenya and became an agribusiness manager interested in how to decentralize fertilizer production to bring jobs back to his village. He developed several proprietary recipes that, combined with Kevin's MIT technology, became the core of this company.
Kevin, with background in engineering design in resource-constrained settings, conceived the technology on his 2012 visit to Kenya. He worked on it as his MIT PhD thesis (completed in 2017). The technology resulted in two patent applications that the company will be licensing exclusively from MIT.
Kevin, with background in engineering design in resource-constrained settings, conceived the technology on his 2012 visit to Kenya. He worked on it as his MIT PhD thesis (completed in 2017). The technology resulted in two patent applications that the company will be licensing exclusively from MIT.
Our revenue model:
We create a dense network of village-based, locally-run fertilizer production plants called 'MiniPlants', each serving a radius of 15 km and around 500-1000 farming families. Initially we own/operate our first pilot production in Mwea to prove its technical and financial effectiveness, and plan to own and operate the first 5-10 as we expand in other communities in Kenya, so that we become familiar with how our solution can be adopted to different soil/crop conditions and retain such learnings in-house. As we expand, we will undertake a community franchising model. Initially, we will target community-based organizations/youth groups working on behalf of local farmers' welfare. These organizations will help provide the initial financing to set up the village-based project (US$50 in upfront capital cost to start a small operation), and will hire the local operation team. We will provide the training and licensing to use our technology and recipes for a franchising fee based on the profits from the local production.
As these village-based production becomes profitable and attract other microentrepreneurs to invest in their own villages, each village will also create 30-50 new job opportunities. Therefore, as these enterprises scale, driven by profitability, they automatically create more rural livelihood.
As these village-based production becomes profitable and attract other microentrepreneurs to invest in their own villages, each village will also create 30-50 new job opportunities. Therefore, as these enterprises scale, driven by profitability, they automatically create more rural livelihood.
Partnership Potential
Why we are applying to Solve:
We will use the validation/publicity we receive to cement the ongoing partnership discussion with the 3 prospective community-based organizations such that the replication of our pilot can commence in the planting season of 2019. 50% of the prize money will also provide us with our side of the funding to purchase the equipment and conduct community training in operation in order to set up these 3 additional village-based operations that will then triple of current impact (the partners will cover the local labours initially). The remaining 50% of the money will be invested in initial batch-manufacturing of our technology.
The key barriers for our solution:
The manufacturing/distribution of our technology at scale to many villages remains a challenge. To reduce the complexity, we have designed our equipment such that more than 70% of the components can be locally manufactured/repaired. The remaining 30% requires specialized machining and distribution. To lower this risk, we will work with a reputable local distributor of agricultural equipment (e.g. tractors) to leverage their distribution network to deliver our equipment and training. We are already in close partnership discussion with two prospective distributors (whose names cannot be disclosed yet).
The types of connections and partnerships we would be most interested in if we became Solvers:
- Other (Please Explain Below)
Solution Team:
Samuel Rigu
CEO
CEO