cienegaagroexchange.com. executive summary increasing demand for sustainable agricultural products...

Executive SummaryIncreasing demand for sustainable

agricultural productsCommercialization of sustainable production

not bullet proof Improved quality products for consumerBottom line gains for producers, suppliersBroader access to marketsCompliment technology with current

practices

Agricultural IndustryU.S. is world leaderCalifornia’s # 1 industryIncrease in exports and imports by 20%Large scale farming, processing, selling etc.Opportunities to revert operations to small

scale farming, more specializedLong term. No matter how much technology

we still have to eat

Product/ServiceBusiness to business modelTransactional revenue modelBuyers meet SellersFacilitate the transactions between bothRevenue is generated from transactions and

annual membership fees

Future ExpansionBusiness to business modelSubscription revenue modelAgronomic adviceAgribusiness consulting

MarketOpen to allGeared for the small farmer, shipper,

marketer not aligned with big business giantsSpecialty producers. I.e.. Exotic fruits and

vegetablesOversupply allocationUndersupply procurement

Marketing StrategyAg expos, tradeshows, conferencesNational and International Trade SitesRegional and local ag coalitionsWord of mouth. News spreads fast in

agricultural communityPiggy-backingAg journals, websites, etc..

CompetitionCompetition- Only 1 similar business.

Conventional growing, shipping, logisticsBig players do not do good job with specialty

productsMargins are less with big coolers, farms, etcMany executives in top firms know little

about farming and its constituentsCan be considered not attractive for large

firms

OperationsMainly web based Latest technologyTwo offices: Salinas, Zamora ,Michoacán

MexicoOffice managers with tech support personnelOwners maintaining conventional jobs and

providing support on daily operationsAs business grows addition of customer

agronomists and other tech support

ManagementJose Ramirez- B.S. Crop Science. Experience

in agricultural operations from seed to salad. Trilingual. Existing potential customer contacts. Work experience in Mexico.

Tony Ojeda-B.S Agricultural Business. Exceptional experience in sales and marketing. Existing customer base.

FinancialFunded by self and partnerStart-up costs minimalOffice facilities based out of personal

propertyMajor costs in marketing and advertising1st year loss to break even2nd year on profits gradually increasing

Exit StrategyMinimal risk involvedCompany will be consumed by existing

playersCustomer base will benefit employers of

owners