Piloting the production of organic injectable medicine in Guatemala Note: This project has been cancelled, because the applicant has not been able to fulfil his obligations.Applicant Cargo Expreso S.A. from Costa Rica was founded in 2007. Cargo Expreso forms part of a larger group of companies whose members are located in different countries throughout Central America. The activities of this group is transporting documents and packages throughout Central America, providing sea freight services mainly to and from China, pick and pack services for mobile phone companies and the pharmaceutical industry. Local partner Desarrollos Magicos S.A. has been established in July 2004. It has been set up to create an organisation that is structured in such a manner that it can meet the strict procedures of governmental and big commercial organisations regarding the distribution of natural medication and vitamins. Customers of the company buy medication in bulk volume and subsequently distribute the medicine to pharmacies and final customers themselves. The joint venture will produce organic medication in ampoules based on homo-toxicology. Homo-toxicology focuses on the causes of diseases, and not on symptoms. The organic injectable medication will activate the body's self-healing powers and reinforce the immune system. In the production only organically grown materials will be used. Currently, organic injectable medication is not produced in Guatemala or in any other country in Central America, all organic injectable medicine used in the region are imported. The project partners will be the first in Guatemala to establish a professional pharmaceutical laboratory that is dedicated to the production and distribution of organic medicine in ampoules. Approximately 67% of the organic crops needed for the production will be locally sourced by contracting 7 cooperatives – herewith creating additional income for 188 outgrowers. Partners notice an increasing demand to injectable organic medication throughout Central America. Local partner also notice an increased turnover coming from the distribution of natural medication.Corporate Social Responsibility (CSR)The joint venture will comply with international conventions such as OECD guidelines regarding CSR, ILO declaration on fundamental principles and rights at work and UN convention on biodiversity. The joint venture will adhere to the CSR guidelines laid down in Grupo Almo's Code of Ethics. All employees of the joint venture will receive training where the CSR policy is explained.Furthermore the partners will integrate CSR into their business and supply chain by working according to various certification standards. The joint venture will facilitate seven Guatemalan cooperatives that will supply the raw materials, to become certified according to the MayaCert certification standards. Also the production facility will be MayaCert certified.Impact•	Employment and working conditionsEmployees will receive a salary that at least is 20% above the minimum wages, and 5% above living wage. All employees will be offered long-term employment contracts including severance pay. Work weeks will be 44 hours and employees are entitled to 15 days of paid annual leave. Employees will get a pension scheme and payment for private health insurance. Costs of transport to and from the laboratory and costs of daily lunch will be reimbursed to all employees. Good and safe working conditions will be offered.Employees will get extensive training to perform their duties.•	Innovation / Transfer of knowledgeThe product is at the moment available in Central America, but it is imported from Germany.The production method is new as there is no pharmaceutical laboratory in Guatemala or elsewhere in Central America that produces organic injectable medicines. The only producer of this type of medicine is located in Germany.Logistics improve, because it substitutes imports from Germany.•	Chain effectsSeven cooperatives of outgrowers will be selected to provide raw materials to the joint venture. The 188 outgrowers will be trained and educated about organic cultivation of crops. The joint venture will support the outgrowers financially in obtaining certification. The outgrowers will get long-term contracts with the joint venture. The profit that the joint venture will earn per hectare of cultivated organic crops lies much higher than the price outgrowers usually receive for each hectare of produced corn or beans. The outgrowers will become less dependent on the cultivation of commodity crops which are sold for low prices. The outgrowers will supply 67% of the total amount of organic materials needed by the joint venture for the production of medicines.The joint venture will also buy packing materials in Guatemala.The medication that will be produced will be sold to intermediary organisations like drugstores, health clinics, etc. The customers will benefit, because the prices will be lower than the price for the same medicines which are now imported from Germany. Furthermore the availability of the medicines will improve. By incorporating flexibility in its production line, the joint venture will be able to quickly adapt production to a changing market demand. Finally the joint venture will use its sales and marketing employees to capacitate its clients.•	Impact on the sectorProject partners will share their experiences with other local pharmaceutical business through the Guatemalan Asociación de Laboratorios of which they will become a member.The joint venture will also be actively involved in the development of improved production processes and quality control processes that can be used by all pharmaceutical laboratories in Guatemala, Members of the Asociación are frequently asked by the Guatemalan Ministry of Health to provide input on changes they are planning to implement in laws.Project partners will cooperate with Universidad San Carlos de Guatemala. The joint venture will create internships for students. Furthermore, project partners will organise various symposia on the use of organic injectable medication which can be attended by members of medical umbrella organisations, doctors, pharmacists and other medical professionals and students.•	EnvironmentThe project will carry out an environmental impact assessment before the pharmaceutical laboratory will be constructed. Measurements to mitigate the identified risks will be taken during the implementation of the project.All crops for raw material have to be produced in an organic manner and other products like ampoules and carton boxes will be made from recycled materials.•	Position of womenEighty job positions out of the 150 will be held by female workers; 10 will be basic-level workers and 70 will be holding medium- or high-level positions. To establish a professional pharmaceutical laboratory dedicated to the production and distribution of organic medicine in ampoules in Guatemala with a maximum production capacity of around 250,000 ampoules per year.