Exploring the Power of Village Incorporation
How does a village of undernourished, unemployed desperate people transform itself into a corporation with annual revenues in excess of $100 Million? Isn’t that over-inflated or optimistic?
Let’s do the numbers! GSR village corporations will have about 10,000 acres of land, with at least 5000 acres dedicated to producing cash crops and a further 3000 acres handling, permaculture food forests, grazing, and local requirements. Treating the soil with amrut mitthi will enable annual production of as much as $10,000 per acre. Village corporations, in conjunction with GSR Cooperative Marketing will choose which cash crops they wish to cultivate. For example, peanuts are a major cash crop in West Africa. Amrut mitthi treatment will enable annual harvest of about 4 tons of peanuts per acre per year. Farmers currently sell unshelled peanuts for $385/ton, and the average farm size if 8 acres. This results in gross revenues of $12,320 per farmer, with net profit somewhere around $6000 per year (compared with current average GDP of $1700 in Nigeria). This means about $10 Million of revenues for all the farmers in the village
Vertical integration multiplies this number considerably. By setting up a modern milling plant, GSR in partnership with the Village Corporation can get $6000 per ton for peanut butter, $2000 per ton for refined oil, $1200 for free fatty acids (used in making soap) and $400 per ton for peanut cake (used as animal feed). Profits from these various products should be about $12 Million per village. Add a packaging plant and this increases to about $20 Million. Add a soap plant using the free fatty acids produced during the refining process. Total revenues are now somewhere around $30 Million.
A large portion of these profits are invested locally in infrastructure projects (irrigation, warehousing, electricity production etc), extending the network to neighboring villages, and small business joint ventures.JVs are possible in manufacturing clothing, building supplies, value added food products, agriculture support industries. Products produced in these industries are purchased by the GSR Marketing Cooperative and sold in the Community Superstore at prices far lower than available anywhere else. Systematically building the local economy will ultimately result in an economy greater than $100 M.