Production of natural medicine in gel capsules In Latin America, there is a trend to change from chemical to natural medicine. However, most of these products are currently being imported. The applicant Padova and the local partner Formulas Alternativas will tap into this trend and will set up a joint venture to start a production plant to produce natural medicine in capsules and liquids.All products will be scientifically proven and approved by the government. The input herbs will be supplied by rural herb farmers which are organised in cooperatives. These farmers will be supported in gaining knowledge on organic production technologies and certification.Additionally 60 direct jobs will be created at the production plant in Guatemala city. This project will lead to affordable healthy medicine for the local and regional market and will be an alternative to chemical medicine.Corporate Social Responsibility (CSR)A CSR policy was already developed for the project. It includes issues such as employment standards, workplace health and safety, gender policy, non-discrimination, exclusion of child labour, employee participation, chain responsibility, measures to prevent corruption and environmental management. Furthermore, an Environmental Impect Assessment (EIA) will be done and a GMP and MayaCert (organic) certificate will be obtained.Impact•	Employment and working conditionsAt the end of the project 15 basic-level employees will be contracted, 43 medium- and 22 high-level. Two years after the PSI phase this will increase to 18 basic-level jobs, 81 medium-level and 64 high-level. The employees will at least earn 115% of the minimum salary. There will be a lunch room and a changing room with lockers and showers. Also, 10,000 euro will be used to provide employees' children with school packages and non-business-related courses for employees. Health insurance and working clothes are provided.Additionally, 80 rural farmers will supply the joint venture with herbs and flowers during the PSI phase. In the spin-off this will be grown to 96.•	Innovation / Transfer of knowledgeKnowledge on capsule production is totally new for Guatemala. This includes pharmaceutical production techniques, use of machinery and techniques for inventory control and quality control.For most of the farmers' organic certification and transfer of best organic production practices for herbs and flowers will also be new.•	Chain effectsAn extension programme will be set up with 80 rural farmers which are organised in cooperatives. The joint venture will support them with training and obtaining organic certificates. The cooperative will provide the pre-financing with regards to input materials. Throughout the project also new medicinal plants will be introduced for which the joint venture will contract a specialist which will support the farmers.•	EnvironmentIt is the goal of the joint venture to become fully organic. Within the PSI phase it aims for 40% organic production. It will take time for small farmers to change their cultivation practices and therefore, 100% will not be feasible within three years. Nevertheless, cultivation practices will be implemented with no environmental impact. Furthermore, for the establishment of the processing plant an EIA will be done and also a permit of the Ministry of health will be obtained for all medicinal products. Additionally, waste will be collected two times per week by a professional company which separates hazardous and non-hazardous waste.•	Position of womenAmong the personnel 40% will be female. The production of organic medicine in the form of 44 million capsules and 158,000 bottles of liquids per year for the local and regional market.