At a Glance

Location: Chile

Impact Areas: Labor Inclusion, Environment, Sustainable Income

People Supported:
Small Farmers, Rural

Joined NESsT Portfolio:
2021

ngseeds.cl

Overview

NG-Seeds produces, processes and commercializes  lupine and its byproducts, for both animal feed and human consumption. Its customers are companies in the food industry who buy the raw material provided by NG-Seeds as an essential ingredient in the composition of their finished products.  The company is owned by five Mapuche cooperatives and its partner CGNA, a regional center for plant and food science and technology that developed the lupine variety.  

Araucanía in Southern Chile is the poorest region in Chile and also highly vulnerable to climate change. The indigenous farmers who live in the region face limited distribution channels that tend to undervalue their product by placing greater emphasis on yields as opposed to the quality of their crop. Additionally, indigenous farmers lack access to financing to invest in technological upgrades and to cover costs during difficult seasons, as well as low internet connectivity that would enable them to access resources online.

In response to these challenges, the local Mapuche farmers formed cooperatives to help them cope with difficult production seasons and to manage the high costs of agricultural inputs. More than 1,000 indigenous families in the region cultivate lupine, a gluten-free grain that provides essential amino acids, antioxidants and fiber that is appealing to consumers globally, especially those maintaining special diets for diabetes or celiac disease. NG-Seeds provides farmers with technology, technical assistance, and access to capital, enabling these producers to integrate into the local and global food value chains and generate stable income sources.

NESsT Investment

Mapuche farmers live in extreme poverty unable to produce enough income and food to sustain their families. This plight is not unique to Chile, but a story that resonates with farmers around the world. NG-Seeds, in partnership with NESsT and IKEA Social Entrepreneurship, will launch multiple marketing initiatives, including outreach to academic institutions, publications, and media to increase awareness about the importance of this heirloom product and the work of the cooperatives.

NG-Seeds has a lean and non-hierarchical governance structure that allows the organization to make decisions quickly as it leverages diverse viewpoints. During the next few years, NG-Seeds will be evolving its governance structure as its production volume grows, as well as equipping its management team to oversee larger-scale agricultural operations and building a larger sales team. NESsT and IKEA Social Entrepreneurship will support NG-Seeds with selecting and training new leadership within the cooperatives, including recruiting more women for leadership positions.

As NG-Seeds increases its capacity, NESsT and IKEA Social Entrepreneurship will also support the enterprise with improving its reach and engagement of commercial clients; and to channel these sources of revenue into its investment program exclusive to the Mapuche farmer cooperatives. NESsT will advise the company on this program and to define internalized and outsourced operations.