Markley.tuesday

Deborah Markley

NADO Training ConferenceAugust 27, 2013

Building Wealth Using WealthWorks Value Chains 

• Learn about the WealthWorks approach to economic and livelihood development through story and discussion

• Understand the fundamental elements of the approach

• Principles• Tools

• Discuss how these principles and tools relate to your own work

Objectives of this Presentation

• Wealth, broadly defined, is the foundation for prosperity.

• Poor places and people will stay poor unless they are connected to larger economies – and they have assets to bring to the table!

• Those assets can be developed and linked to markets in ways that create multiple forms of wealth.

• Structures exist or can be created to cause wealth to stick.

• Wealth that sticks leads to improved livelihoods.

Why focus on Wealth Creation??

#1 WealthWorks is demand driven.

#2 WealthWorks is intentionally inclusive.

#3 Wealth is tied to place by WealthWorks value chains.

#4 Measurement is used as a tool for planning and adaptive management.

#5 Wealth sticks through attention to structures of ownership and control.

#6 The WealthWorks approach is strategically flexible while doing no harm.

WealthWorks Principles

Biofuels in the Arkansas DeltaCamelina: Fuel for Thought

WealthWorks Story

AGEN

Regional/Urban Demand:

• Purpose: Bring new money into rural communities

• Valero needs biofuel to meet blending requirements per EPA RFS2; interested in investing in getting value chain to scale.

• FedEx commitment: 50,000 gallons/day

Local Demand:

• Purpose: Price stabilization for vulnerable budgets

• Municipalities and county governments want stable fuel prices

• School system want to burn cleaner fuel in school buses transporting children

Principle #1: WealthWorks is demand driven.

Discussion Question

In what ways are you connecting to demand in your work?

Share some examples

• Winter crop for soybean and cotton farmers Focus: Minority and small

farmers• New Entrepreneurial Opportunities

Micro-Bio-Refineries Waste Oil Collection Seed Management Seed Crushing Manufacturing of Refineries

Example: Intentional focus on minority farmers by providing technical assistance, help with planting and harvesting.

Principle #2: WealthWorks is intentionally inclusive.

Discussion Question

In what ways are you intentionally including low income individuals – as

consumers, employees, entrepreneurs – in your work?

Share some examples

Principle #3: Wealth is tied to place by WealthWorks value chains.

A WealthWorks value chain is a network of people, businesses,

institutions and non-profits who collaborate to meet market demand

for specific products or services – each advancing individual self-interest

while together creating greater local wealth.

AGEN: Deep Collaborations

• Seeking larger systems change

• A move beyond partnerships focused on specific projects

• Deep collaboration built on each member’s self interest

• Self interest creates momentum!

• Example: Initial conversations with individual members identified their self interest. “What is in it for YOU?”

• Collaboration is problem solving together almost on a weekly basis.

Demand for biofuelLocal municipalities, school districts, farmers, truckers

Regional companies - Valero, FedEx

Local and

State Policy

Support

MSCC Mini Refinery Micro Refinery

Spring-board

Diesel Mfg Dist

Gir Energy

Mfg

Angel Investor

Net workLoan Funds

Waste Vegetable Oil Collection Businesses

Source of WVO: restaurants,

convenience stores, schools,

hospitals,prisons,casinos, etc.

Community Mktg

Strategy Ed/promo materials

Community Recycling Programs

Progressive Community Leadership

Trans-porta-

tion

Camelina Seed Processing Company

Growers of Camelina: Minority, Non-

Minority Farmers

Camelina research

ASU, PCCUA

Camelina Agronomic

Service Business

USDA Support

Programs: NAP, Cover Crops, Crop Insurance

ADTEC RET

Training

Fuel Blender Distributor

Animal FeedComposting

Cosmetic mfg

By Products Meal

Glycerol

Principle #4: Measurement is used for planning and adaptive management.

Intellectualcapital

Socialcapital

Individualcapital

Naturalcapital

Builtcapital

Politicalcapital

Financialcapital

What are we measuring? Seven forms of capital that, together, comprise wealth.

Type of Wealth Interventions in Value Chains

Individual# of farmers growing Camelina Baseline: 0; 3 in Spring 2013# of entrepreneurs who have started micro-refineriesBaseline: 0; Today: 1 entrepreneur preparing to produce by Oct 2013

Social # Number of groups engaged in renewable energy policy work and the strength of their relationships Baseline:1; Today: 5

Intellectual # of requests for renewable energy installations from municipalities, residents, and business. Baseline: 0; Today: 3

Natural # of gallons replaced by biodiesel produced in the Delta Baseline: 0; Today: 1360 gallons

Built# of micro refineries functioning within the value chainBaseline: 0; Today: 1 micro-refinery on campus of MidSouth CC fully operational

Political # co-sponsors on renewable and energy efficiency bill and how far the bill advances in the political process. Baseline: 0; Today: 10 legislators; 4 bills approved by committees

Financial Value of external investment in value chain. Baseline =0. Today 5 local investors committed to invest $1.2 million.

Principle #4: Measurement is used for planning and adaptive management.

Discussion Question

In what ways are you building and measuring outcomes that go beyond

jobs and income?

Share some examples

Value chain meeting in January 2012

focused on ownership structures

Principle #5: Wealth sticks in rural areas through attention to structures of ownership and control.

1. Entrepreneurial Model: Individual/local investors purchase refinery to serve local and regional markets

2. Farm Coop Model: Coop owns refinery and converts farmers’ crop into fuel for on-farm use on a contract basis

3. Municipality owns refinery and leases it to entrepreneur with right to purchase % of output

Intentionality: Focus on micro-refinery that costs $250,000 enabling investors to be local and wealth to stay in local

communities

Principle #6: The WealthWorks approach is strategically flexible while doing no harm.

1. Members introduce new opportunities Solar Bioenergy

2. Problem solving together Financing barrier led to 3 potential models

3. Connectedness Community leaders Market players Political influence

4.Do no harm – how to grow camelina with fewer chemicals

Transformational Benefits of a Value Chain

Intermediary’s role: Maintain values, do no harm

Central Appalachia

Energy efficient housing, energy efficiency, food, forestry

Alabama Black Belt and Mid-South

Renewable energy, investment, forestry, food, community-based tourism

Lower Rio Grande Valley region in Texas

Green housing/neighborhoods, literacy

Where are we working on the ground?

Visit:www.wealthworks.org www.altconsulting.org

Join the Community of Practice:www.ruralwealth.org

Contact:Deborah Markley

Center for Rural Entrepreneurship919-932-7762

[email protected]

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