Piloting the production of cassava starch Currently, high quality cassava starch is not produced in Nicaragua or in any other Central American country. All companies processing starch in the region are therefore forced to source their cassava from different parts of the World. During the implementation of this project the partners will establish a high quality cassava starch production facility in the region of Léon. Herewith, they will give starch processing companies in the region the possibility to source cassava starch locally.To supply the plant with enough fresh cassava the project partners will implement an extensive outgrower programme. The joint venture will create employment for 39 people, contract 200 outgrowers and create indirect employment for an extra 100 employees. The joint venture will be HACCP and ISO 9000 certified. Applicant is Hoffman Associates Inc. from Panama. The founder of the company has vast experience with the agricultural business. He holds multiple stores throughout Nicaragua selling agricultural chemicals and equipment. At the end of 2012 Hoffman has restructured its holding company. Before Hoffman was the holding company of Isabela Estate Agricola S.A., a Nicaraguan coffee producing business located in Matagalpa. Furthermore the owner of Hoffman had shares in various agricultural companies, of which one was the company of the local partner Alminodes y Harinas de Exportación S.A. (ALHEXSA). After changing its structure, all those agricultural companies are now part of the Hoffman holding. Local partner ALHEXSA has been active since 2009 and was officially established in 2011 in Léon. ALHEXSA produces annually approximately 10,000 tons of cassava. A joint venture between Hoffman and ALHEXSA will be established.Corporate Social Responsibility (CSR)The joint venture will develop a formalised CSR policy based on OECD guidelines for multinational enterprises, the ILO declaration on fundamental principles and rights at work and the UN convention on bio diversity. To make sure all employees understand the formalised CSR policy and the goals the partners want to achieve with this policy, all employees will receive training in where the CSR policy is explained.Furthermore, the production facility will be HACCP and ISO 14000 certified.Impact•	Employment and working conditionsEmployees of the joint venture receive at least 150% of the legally established minimum wage and at least 20% above living wage. All employees will be offered long-term employment contracts including severance pay. The joint venture will pay 42% for social benefits like social security, health insurance, one month extra wage at the end of every year, one month extra wage for each year the employee stays on the job and thirty days of paid annual leave. All employees will be offered two meals each workday. And the joint venture will cover all costs for education of its employee's children up to high school.•	Innovation / Transfer of knowledgeThe product and production method are new for Nicaragua. The project has an advantage for companies processing starch; local sourcing will enable companies to save on transport costs and will increase flexibility in terms of quantity and delivery time.•	Chain effectsImpact on local suppliersThe project partners will work with 200 outgrowers and supply them with steady employment. By teaching the farmers how they can grow cassava, a crop that goes well on marginal land and can go without water for a long time, the farmers will increase the yield of their land and their income.Each outgrower that signs a contract with the joint venture will be offered extensive technical assistance.Impact on local customers or consumersA number of other local suppliers will also benefit from the project. The joint venture needs plastic and paper for packaging of the cassava starch. Furthermore the joint venture needs food for the meals for the employees.•	Impact on the sectorThe project partners will show local entrepreneurs their factory and teach them about the operation. Furthermore the joint venture will become a member of the Nicaraguan Chamber of Agricultural Business. By sharing their knowledge and experience with the other members of this chamber, the project partners will contribute to strengthening the Nicaraguan agro-industrial sector.The project partners will cooperate with the University of Léon by creating internships for students.Finally, cattle farmers get the waste of the production to be used as animal feed.•	Position of womenThe joint venture will employ seventeen women of which nine in medium-/high-level jobs. This is about 50% of the total number of employees employed by the joint venture.•	Impact on food safetyIndirectly, the project contributes to food stability. It is assumed that more outgrowers will start producing cassava as they see a good possibility to sell second and third grade cassava to the joint venture. This would mean that more first grade cassava becomes available for the local market. To establish a production facility for high quality cassava starch with a maximum capacity of 60 tons of cassava starch per day for the Central American market.