Ethiopia - Startup under 3 years old

Describe your project or startup in a few words

GUARO FARMS processes spices and herbs at the farm gate using micro-factories in 20-foot shipping containers, a modular concept with hyperlocal and agile manufacturing possibilities. our micro-factories are within walking distance of 500 farmers.

01.01 Describe your startup in more detail

our first-mile processing eradicates food safety concerns due to mycotoxins, such as aflatoxins, food fraud concerns in spices like adulteration, the development of mold, and the loss of volatile oil content. And we use cloud-based Apps for traceability. we are piloting micro factories for the micro-production of smallholder farmers. a new approach to manufacturing called distributed manufacturing. we design and build micro-factories that process spices and herbs into high-value products like essential oils and hydrosols at the farm gate. A socially pulled and technologically pushed approach to manufacturing, to create agricultural systems that are more inclusive and diverse, enabling women to participate on equal terms with men. Our micro-factories are designed to be modular and scalable, fitting into 20-foot shipping containers. This allows us to easily set up production in new areas and increase capacity as needed.

01.02 What is the main problem you are trying to solve?

the spice value chain is a nightmare on the “first mile” leading to 30 % losses, Smallholder farmers bear the largest share of this loss on the first mile. There are a large number of consecutive intermediaries, smallholders sell only a few kilograms, to village traders who do not have access to appropriate storage facilities. Traditional drying methods like spreading out in the sun, cause contamination by dust, infestation by insects and rodents, the development of mold, and loss of volatile oil content. And food safety concerns due to mycotoxins. it’s this broken system and untapped potential that ignited the idea for Guaro. Guaro takes over the process at the farmgate and partners with smallholders on their farms. our micro-factories enable local processing, which helps maintain the freshness and potency of the end products, resulting in higher quality and more marketable goods.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

Social Impacts Job Creation-By establishing micro-factories in local communities, we create employment opportunities for local women. These jobs are not only in the manufacturing process itself but becoming suppliers of the herbs they grow. Economic Empowerment- Local processing adds value to raw materials at the source, so local farmers can command higher prices for their products. Community Development- Increased economic activities will lead to broader community development Environmental Impacts Reduction in Carbon Footprint- By localizing the production process, we significantly reduce the emissions associated with transporting raw materials to distant processing facilities. Waste Reduction- our model involves using agricultural by-products and food waste, which would otherwise end up in landfills emitting methane—a potent greenhouse gas. By converting these by-products into valuable products, we reduce overall waste and the environmental problems associated with waste disposal.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

In traditionally female-led production like spices women face challenges due to low prices, difficulty in finding good markets and problems of long-distance transport, lack of capital for transport, lack of marketing information, and a small amount to sell at a time. In spite of a large number of consecutive intermediaries, smallholders sell little amounts, frequently just a couple of kilograms, to nearby local collectors and village traders. The farmers are working independently and do not benefit from any economies of scale. these traders do not have access to proper storage and packaging materials and may resort to malpractices, such as adulteration with low-value materials. In cases where preliminary washing is performed by local collectors and village traders, the quality of the water used is generally poor and further reduces the product quality. we are helping women smallholder farmers to get the value of their small produce.

01.05 When was your company established?

2023-12-26

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

1

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

My co-founder (Hana Rago ), with expertise as a chemical and process engineer, complements my skills by bringing a critical technical perspective to our operations. her knowledge in chemical processing and engineering ensures that our methods for extracting essential oils and hydrosols are both cutting-edge and sustainable. This expertise is crucial for maintaining the integrity and purity of our products while optimizing the production processes to be as eco-friendly and efficient as possible.

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://www.linkedin.com/company/93265778/admin/feed/posts/

01.11 Which industry best describes your project?

d) Primary commodities (food, drink, household and personal products)

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

By increasing their incomes, GUARO is helping smallholder farmers to lift themselves out of poverty.

02.02.01 My startup contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification for my startup

02.03.01 My startup contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification for my startup

02.04.01 My startup contributes to the Quality education goal

3

02.04.02 Quality education - Justification for my startup

02.05.01 My startup contributes to the Gender equality goal

7 - Strongly Agree

02.05.02 Gender equality - Justification for my startup

we are bringing processing power close to where the women are leveling the playing field for women who can't afford transport fees

02.06.01 My startup contributes to the Clean water and sanitation goal

3

02.06.02 Clean water and sanitation - Justification for my startup

02.07.01 My startup contributes to the Affordable and clean energy goal

2

02.07.02 Affordable and clean energy - Justification for my startup

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

Guaro Farms creates decent work opportunities for young women and marginalized groups in rural areas (Target 8.5). By promoting sustainable agricultural practices and processing methods, Guaro Farms fosters economic growth within the agricultural sector (Target 8.A).

02.09.01 My startup contributes to the Industry innovation and infrastructure

7 - Strongly Agree

02.09.02 Industry innovation and infrastructure - Justification for my startup

02.10.01 My startup contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification for my startup

02.11.01 My startup contributes to the Sustainable cities and communities goal

7 - Strongly Agree

02.11.02 Sustainable cities and communities - Justification for my startup

02.12.01 My startup contributes to the Responsible consumption and production goal

7 - Strongly Agree

02.12.02 Responsible consumption and production - Justification for my startup

02.13.01 My startup contributes to the Climate action goal

7 - Strongly Agree

02.13.02 Climate action - Justification for my startup

by promoting energy-efficient technologies and reducing greenhouse gas emissions (Target 13.2).

02.14.01 My startup contributes to the Life below water goal

2

02.14.02 Life below water - Justification for my startup

02.15.01 My startup contributes to the Life on land goal

7 - Strongly Agree

02.15.02 Life on land - Justification for my startup

we work with women farmers who already practice natural farming methods, our project promotes regenerative agriculture. Improved soil health, reduced chemical use, and potentially increased organic matter content. preservation of natural habitats within farms.Reduced reliance on chemical pesticides, and minimized environmental pollution.

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

7 - Strongly Agree

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

02.17.01 My startup contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification for my startup

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

7 - Strongly Agree

06.02 The product/service represents an entirely new type of product/service.

7 - Strongly Agree

06.03 The product/service could be described as a new technology.

7 - Strongly Agree

06.04 The product/service is an improvement on an existing product or service.

1 - Strongly Disagree

06.05 The product/service could be described as an extension of a range of products or services.

1 - Strongly Disagree

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

06.07 The product/service is a new version of an old product/service.

1 - Strongly Disagree

06.08 Justification for my startup

the global essential oil market for was around 15 billion USD in 2023, our decentralized factories can produce up to 500 k USD worth of essential oils per year

06.09 Competitive Analysis

The competitors in Ethiopia are Damascene, Tchakka Origins, and Ariti Herbal,all of them process in central locations and often struggle with sourcing, storage, aggregating, and loss of volatile oil content. Our nano factories are reconfigurable, cheap, geographically distributed, and can process fresh small amounts at the Farmgate, reducing the risk of spoilage, transport, and storage costs and giving us a competitive edge.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

yes, we need a strong relationship with our farmers to sustain our business