Ancestral Organics - Chamber of Commerce of Armenia and Quindío (CCAQ)

Investing in Impact

P4G has awarded the partnership with about US $350,000 in grant funding. 

Ancestral Organics is a Colombian startup working with dozens of smallholder farmers to produce organic superfood products using regenerative practices in regions like Quindío where conventional monoculture practices and heavy chemical use have led to about 70% of the soil being degraded or in the process of degradation. 

The startup has an integrated value chain from crop cultivation to direct consumer marketing that enables it to have control over the entire process and ensure the quality and traceability of their products. Shortening the supply chain also allows it to offer significantly higher prices to farmers for their products. 

Ancestral Organics pays farmers between 50% to 200% more than the market rate and transforms their crops into higher value-added products such as Sacha Inchi protein powder, specialty coffee and goldenberries with dark chocolate. The startup also trains farmers on agroforestry methods such as chemical-free production and crop rotation to ensure healthier crops that can deliver higher incomes to farmers. During the partnership period, it will develop a baseline study on current agricultural practices in rural Colombia and will identify best practices in terms of regeneration that can have an impact on revenue and soil. 

Early experience has shown the startup that more training is required among farmers, government agencies and other relevant stakeholders on the principles and benefits of regenerative agriculture. The startup is working with a few farm owners to develop demonstration and education sites that will build long term capacity in regenerative agriculture in the region. 

Ancestral Organics currently has 25 products in its portfolio that it sells to consumers in Colombia, USA and the UK. 

The startup was recently approved to sell its products in Mexico and the United Arab Emirates, and finalized a partnership with a distributor in Lyon, France. To further strengthen its current markets, the startup focused on optimizing its digital stores across premier e-commerce platforms including Amazon, Walmart and Etsy. Ancestral Organics also secured a UPS partnership that gives it a cost-efficient delivery service for U.S.-bound products and will facilicate easier access to international markets. 

As part of its growth strategy, Ancestral Organics is looking at two distinct revenue streams: 

• An expansion of its current line of products
• A new business line focused on advisory services for producers transitioning to regenerative agriculture 

The Chamber of Commerce of Armenia and Quindío (CCAQ) brings a wealth of experience in strengthening early-stage startups and will help Ancestral Organics improve its business processes and connect it to national and international stakeholders who can help the company grow. CCAQ is currently helping Ancestral Organics develop their Environmental, Social and Corporate Governance strategy and design a robust Monitoring, Reporting and Verification system. 

During the partnership period, Ancestral Organics aims to raise investment, bring 50 hectares of land under certified organic management, and expand its client base into four new country markets. 

The partnership comprises the following partners: Ancestral Organics (lead business partner); Chamber of Commerce of Armenia and Quindío (CCAQ) (lead administrative partner).