Organic, small-farmer passion fruit pulp production in Nicaragua Note: This project has been cancelled, because the applicant has requested to prematurely terminate the project.Applicant Collaborative Food and Beverage LLC is a USA based importer and distributor of sustainable produced coffee, tea and other products for the food service industry. The applicant also operates a chain of seven coffee bars in the USA. Local partner Burke Agro de Nicaragua S.A. is a producer of organic dried fruits, sourced from small farmers. Partners have identified a growing demand for organic fruit smoothies. However, organic fruit pulps are hardly available in the USA. In this project partners will establish an organic certified processing facility in Managua to produce organic passion fruit pulp. To secure the supply of passion fruit, long-term cooperation will be set up with 90 small farmers and fruit collection centres will be developed. Farmers will receive training and support in obtaining organic certification. All products will be for export. Partners will establish a joint venture. In the spin-off period. Partners will invest in additional processing lines to process other fruits like mango and banana. The project is new for Nicaragua and will have positive impacts on small farmers. The farmers will obtain organic certification and get technical assistance to improve the productivity and quality of their crops.Corporate Social Responsibility (CSR)The joint venture will develop and implement a Corporate Social Responsibility policy. The small farmers and the processing facility will be organic certified. The joint venture is committed to offer a safe and stimulating work environment for staff with opportunities for training and career development.Impact•	Employment and working conditionsSalaries will be at least 45% above the applicable minimum wage in Nicaragua. Employees will receive a 13th month and salary will be corrected for inflation every year. Secondary benefits are: medical insurance paid by the employer, an interest-free loan programme in case of emergencies, the joint venture will pay school materials for all children of the employees, employees are offered a training programme and growth opportunities. Finally the joint venture will sponsor a sports team that employees can join.•	Innovation / Transfer of knowledgeThe product is new for Nicaragua as no fresh fruit pulp is currently produced. Also, on the supply side the project is innovative for the country; small farmers will become organically certified and supply the joint venture with the fruits. The production method is new as currently no fresh pasteurized fruit pulp is produced in Nicaragua. The processing facility will be HACCP and organic certified.•	Chain effectsImpact on local suppliersAll raw materials will come from local farmers. In total 90 farmers will get long-term supply contracts with the joint venture. At the end of the project, small farmers will supply in total 2,000 tons of passion fruit to the joint venture. Farmers will also benefit from the project, because they will get training and technical assistance to improve productivity. Finally the joint venture will pay for the costs of obtaining organic certification.Impact on local customers or consumersNo impact, the total production will be exported.•	Impact on the sectorThe joint venture will conclude a partnership agreement with a NGO for the selection of farmers. Furthermore, the joint venture will establish framework agreements with two universities to offer regular internships to students.Partners will actively disseminate its knowledge and practices of processing organic products and working with small farmers. They will set up a small model farm to showcase organic cultivation practices to farmers, students and other visitors.Finally, the joint venture will use the demonstration farm to give workshops to children to teach them how to plant, cultivate and harvest fruit crops. This will be done in collaboration with a NGO.•	EnvironmentThe joint venture will follow strict environmental sustainable standards as the factory will become USDA Organic certified. A biodigester will be installed to recycle the passion fruit waste and generate renewable energy. Grey water from the processing facility will be recycled through a grey water recycling installation.•	Position of womenThe joint venture will recruit at least 60% women and it will aim to have 25% women among the small farmers.•	Impact on food safetyThe joint venture will indirectly contribute to the issue of food security as it helps farmers to improve productivity and concludes long-term supply contracts with fixed prices with those farmers.•	Impact on waterFor recycling of water, a waste water treatment installation will be installed and water will be re-used during processing. To establish a processing facility for the production of organic passion fruit pulp with a capacity of 675,000 kilo per year.