Processing of chia seed into value added products Although chia has been known for centuries in Guatemala, Mexico and south-western parts of the USA, it has recently been rediscovered for commercial consumption in the Health Food markets, thanks to its high levels of Omega 3, antioxidants, protein and fibres. Functional Products S.A. started the production of chia in Argentina, in the year 2000. In 2006, shareholders of Functional Products S.A. established Productos Funcionales DelAgro SRL in Santa Cruz de la Sierra – Bolivia, to diversify their sources and reduce vulnerability to climatic conditions. Relying on outgrowers for the supply of raw seeds, Productos Funcionales DelAgro S.R.L. has been using the services of third parties, for cleaning and processing. This is done in plants designed for the handling of soybeans, wheat and corn, but because the chia seeds are much smaller (about 25% the size of sesame seeds) the processing losses are very high (up to 22%). At the same time, processing plants do not give a high priority to the processing of chia, as the volumes are small (compared to their core products), and chia is frequently just processed in between larger soy or corn jobs. This can lead to additional losses, as the chia will spoil if it is not processed soon (1 to 2 days) after the harvest.Functional Products S.A. and Productos Funcionales DelAgro S.R.L., facing a continuous strong growth in demand, now decided to constitute a joint venture to establish a dedicated chia seed processing facility, designed for the small chia seeds, which will substantially reduce the handling losses. At the same time, production of chia seeds will be increased 3-fold, by expanding the cultivation areas, from 1,500 ha to 4,200 ha. This will be achieved by addition of at least 30 new outgrowers, as well as expansion of the cultivated areas with current outgrowers.The dedicated processing facility will be unique and completely new for Bolivia, and will also include the first (value adding) production of chia oil for consumption.Corporate Social Responsibility (CSR)The company has a good reputation of supporting outgrowers with technical assistance, as well as pre-financing of inputs. HACCP certification of own facilities is included in the project, as is the GlobalGAP certification of outgrowers.Impact•	Employment and working conditionsThe company offers attractive working conditions. The salaries are at least 40% above the minimum salary in Bolivia. All other strict Bolivian labour regulations will be adhered to. The cost of transportation for employees of the processing plant in Santa Cruz will be reimbursed or transport will be arranged, as the plant will be in the country side near the cultivation areas. A meals will be provided at the plant. All employees will receive a portion of chia seeds per month for family consumption purposes. Employment contracts will be indefinite, opening the possibility for the employees to have access to banking services. Safe working conditions are ensured. Employability of the staff will be increased through the technical trainings but also through the general trainings in food safety and GMP practices.•	Innovation/Transfer of knowledgeThe dedicated chia processing line is completely new for Bolivia and the cleaning technology, though simple and extensively proven in Argentina, will result in improved results and substantial reduction in product losses. Apart from the processing, the project will also introduce a new product (and thus production technology) in Bolivia, namely the Chia seed oil, for which there is a strong demand on the world market.•	Chain effectsThe number of outgrowers that supply the raw chia seeds will increase from 35 to 65, as the total volume to be produced will increase significantly.•	EnvironmentThe partners are leading promoters of the "direct planting" method in the region. This system eliminates the ploughing of the land and leaves all residues of former crops, thus reducing erosion, and conserving organic matter as well as humidity in the ground. As such, the chia cultivation fits perfectly with the rotation needs of the farmers, and the plants have a natural repellent effect on insects, eliminating the necessity of pesticide applications of any kind.•	Position of womenAbout 30% of the contracted staff will be women, including 4 medium-level management positions.•	Impact on food safetyThe project will mostly produce for the export market and will produce under strict food safety regulations. However, as it will not sell much of its products on the Bolivian market, it will not have a significant positive impact on food security situation in Bolivia, except for the indirect effect of a long term stable market access with good prices for the farmers. To set up a dedicated chia seed processing facility, with a capacity for raw seeds and chia oil.