ZaïralMystery Inc., 39
Background
Currently, improper farming techniques, soil erosion, and groundwater depletion have caused
once arable lands to rapidly undergo desertification, the process by which fertile land deteriorates into
unusable desert. In the 1980s, a farmer in Burkina Faso(1) first implemented the practice of using small
holes to restore soil damaged by desertification. The holes are filled with both a seed and amanure/nutrient solution which attracts insects to break up arid soil and provide necessary nutrients tothe surrounding area. Additionally, the holes serve as basins to collect water which would otherwise failto penetrate the soil, thereby mitigating runoff and erosion. Since its inception, the Zaï system has
consistently been effective in reversing desertification and has improved crop yields of once degradedlands in Ghana by 500%(2). However, as the practice is extremely labor-intensive, it is not practical as alarge-scale solution to the problem of desertification. Zaïral is an innovative product that significantly
reduces the labor input required to utilize the Zaï system. Thus, it serves as a large-scale, long-term,
climate friendly solution to combat the effects of desertification on soil quality.
Product Description
In its most basic form (see Figure 1), the Zaïral is a mechanical instrument
containing a unique compost solution and a seed of the farmer’s choice, allowing Zaïholes to be dug and filled with compost in significantly less time than the original
method. The instrument consists of a handle, attached to a smooth cylindricalmidsection by a diverging metal bar, through which users can manipulate a cone
lined with helical grooves. This cone serves as a screw, penetrating the soil andenabling the body of the instrument to enter into it. Once the instrument has reacheda suitable depth, the user then twists the handle in a counterclockwise direction,
partially lifting the instrument out of the hole. Then, the user pushes a button on topof the instrument’s handle, opening the cone and allowing the compost solution,
previously situated within the cone, to fall into the hole. The solution is encased in abiodegradable frame that allows it to maintain its shape throughout theprocess. In this form, individual farmers can easily produce Zaï holes.
However, the instrument can also be situated within a larger system (seeFigure 2), allowing for multiple Zaï holes to be produced simultaneously
without the use of manual labor. This system utilizes solar power toelectrically lower five instruments, screw the holes, and distribute thecompost. Although the latter situation’s efficiency is preferable in mostenvironments, it may not appeal to some subsistence farmers, and may not
be possible in some countries due to infrastructural limitations. The Zaïral
can be therefore utilized in any environment to reverse the effects ofdesertification, and the freedom of choice in seeds ensures that cultural andenvironmental differences across the world are accounted for.
Market Research
The primary target market for Zaïral consists of governments, NGOs, and other charitableorganizations seeking to reverse the effects of desertification. Although targeting individual farmers iscurrently not a viable marketing strategy due to a lack of disposable income, this may change in thefuture and is therefore kept as a consideration. According to the United Nations Convention to Combat
Desertification (UNCCD), desertification affects 168 countries worldwide and costs 490 billion US
dollars(3) per year. Additionally, all member nations of the UN signed the United Nations Convention toCombat Desertification(3), committing themselves to implement National Action Programmes to reverse
desertification. Therefore, one can reasonably assume that nearly every nation on earth is open topurchasing affordable solutions to desertification, such as Zaïral. The secondary target market consistsof wealthier commercial farmers in places such as farms in Europe, the US, and Canada. Desertification
is a problem in developed countries as well as developing. Nearly 1 billion tons of soil is lost every year
in Europe due to desertification(4). Farmers in these countries can purchase and utilize the electricversion of the Zaïral to reverse desertification in their countries and increase the availability of arable
land.
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Nuraddeen Danjuma, Muhammad & Mohammed, Salisu. (2015). Zai Pits System: A Catalyst for Restoration in the Drylands. 8. 2319-2372. 10.9790/2380-08210104.
FarmingAfrica, et al. “Zai System Overcomes Desertification.” Farming Africa, 1 Oct. 2014, farmingafrica.net/2014/09/zai-system-overcomes-desertifacation/?lang=en.
King, Ed. “Desertification Crisis Affecting 168 Countries Worldwide, Study Shows.” Our World, 2013, ourworld.unu.edu/en/desertification-crisis-affecting-168-countries-worldwide-study-shows.
Panos Panagos, Pasquale Borrelli, Jean Poesen, Cristiano Ballabio, Emanuele Lugato, Katrin Meusburger, Luca Montanarella, Christine Alewell, The new assessment of soil loss by water erosion in Europe,
Environmental Science & Policy, Volume 54, 2015, Pages 438-447, ISSN 1462-9011, https://doi.org/10.1016/j.envsci.2015.08.012. (https://www.sciencedirect.com/science/article/pii/S1462901115300654)

Marketing PlanAs of now, Zaïral has no competition. However, if a product were to emerge in the market, Zaïralwould have a competitive advantage against other products due to the Zaïral having two different
models: an individual unit and an electrical roller. Through these models, the product can be marketed
towards a larger population, with more traditional farmers using the individual units and more advanced
farmers using the electrical roller to combat desertification on a larger scale.
In order to effectively market to the various target audiences, we will sponsor international
conferences that focus on climate change and desertification. At these conferences, the target
audiences will view product demos and be informed of the detrimental effects of desertification. At futureconferences, such as the International Conference on Environment Pollution and Prevention and theArid Environments and Land Degradation Conference, we will set up booths that inform about
desertification and show product demonstrations of Zaïral. We will also fund research on the use of ourproduct to reverse the effects of desertification, proving its viability. Strategic relationships involving freeproduct demos with major international organizations and companies will also aid in the marketing of ourproduct.
Financial Plan & Estimated Costs
By utilizing mass production for both the compost solution and instruments, variable costs are
fairly low for both the individual units and electric rollers. For the individual units, the cost per unit is$65.35 and for the electric roller, the cost per unit is $315. Given a selling price of $99.99 for theindividual units and $599 for the electric rollers, this results in a substantial contribution per unit of$34.64 and $284 respectively. Ultimately, the break-even point (using average monthly fixed costs) for
the individual units is 849 units and the break-even point for the electric rollers is 103 units. Due to thesmall size of these numbers relative to market demand, one can reasonably assume there will be a large
margin of safety. Notably, individual units come with 10 compost capsules and electric rollers come with50 compost capsules. However, additional capsules can be purchased at a price of $30 per 10 capsules,
providing an additional revenue stream whose break-even point is not considered here. This revenue
stream, however, is accounted for in the projected income statement.
As seen in the forecasted incomestatement, we expect to make a profit by 2022.
Given the previously stated prices and costs
per unit, we expect revenue to steadily
increase each year. Initially, a substantial
marketing budget and costs related to renting a
manufacturing plant suppress profits. However,as our product becomes more established andrevenue increases, net income becomes
positive only 1 year after founding. Although
forecasted cash flow was not analyzed, bypurchasing supplies on credit when possible
and responsibility managing accounts
receivable, we can reasonably expect toremain cash positive. For startup costs, we willneed approximately $400,000. In order to raisethese funds, we will first seek grants fromenvironmental and developmentalorganizations. Further funds will be raised through equity financing from venture capital firms and impact
investors and crowdfunding from sites such as GoFundMe. If any additional funds are required, we will
utilize debt financing. Startup costs will be associated with initial manufacturing, marketing, andadministration.
Works Cited
King, Ed. “Desertification Crisis Affecting 168 Countries Worldwide, Study Shows.” Our World, 2013, ourworld.unu.edu/en/desertification-crisis-affecting-168-countries-worldwide-study-shows.
Panos Panagos, Pasquale Borrelli, Jean Poesen, Cristiano Ballabio, Emanuele Lugato, Katrin Meusburger, Luca Montanarella, Christine Alewell, The new assessment of soil loss by watererosion in Europe, Environmental Science & Policy, Volume 54, 2015, Pages 438-447, ISSN 1462-9011, https://doi.org/10.1016/j.envsci.2015.08.012.
(https://www.sciencedirect.com/science/article/pii/S1462901115300654)
Kabore, David, and Chris Reij. ser. 114, International Food Policy Research Institute (IFPRI), 2004, The Emergence and Spreading of an Improved Traditional Soil and Water Conservation
Practice in Burkina Faso.
Nuraddeen Danjuma, Muhammad & Mohammed, Salisu. (2015). Zaï Pits System: A Catalyst for Restoration in the Drylands. 8. 2319-2372. 10.9790/2380-08210104.
FarmingAfrica, et al. “Zaï System Overcomes Desertification.” Farming Africa, 1 Oct. 2014, farmingafrica.net/2014/09/Zaï-system-overcomes-desertifacation/?lang=en.