Cigar Box method: Difference between revisions

Revision as of 01:37, 11 September 2022

Revision as of 15:38, 27 September 2022

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The '''Cigar Box Method''' is a toolkit which consists of a series of spreadsheets to help entrepreneurs, notably those in [[agribusiness]] in emerging markets, to calculate the costs of goods, margins, contribution, break-even quantity and profitability. It can be used for a single product or a complete portfolio of products. There are six Cigar Box (CB) categories:

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== History and current use ==

The method was first used in 1999 as an analytical tool during a course on [[foreign direct investment]] (FDI) at the [[Wageningen University]]. It analyzed the suitability, including a risk analysis and potential benefits, of specific agricultural production processes for foreign investors. Between 1999 and 2012 over 180 students were trained in the use of the Cigar Box Method. It has since developed into a business analysis tool with multiple purposes and used by various targets groups: as analytical tool for foreign investors and bankers, as business planning tool for fruit and vegetable processing factories and business development service providers. An adapted version for women entrepreneurs in Africa has been developed recently. The method is described in the ''Agribusiness Handbook for Fruit and Vegetable Processing'' published by the [[Food and Agriculture Organization]] (FAO).<ref>http://www.fao.org/docrep/012/al177e/al177e.pdf {{Bare URL PDF |date=December 2021}}</ref> The Cigar Box is being used daily by [[Bakery Initiatives Group]] as a navigator to bakery profit.<ref>http://www.bakeryinitiatives.com</ref> Since 1999, over 500 people from all over the world have trained in the use of the Cigar Box Method during courses carried out by [[Wageningen Centre for Development Innovation]] (WCDI). <ref>{{cite web | url=https://www.wur.nl/en/Research-Results/Research-Institutes/centre-for-development-innovation.htm | title=Wageningen Centre for Development Innovation | date=12 May 2022 }}</ref>

== Profit parameters ==

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* https://bakeryinitiatives.com/5p-profit-program/planning/bakery-feasibility-study/

[[Category: Agricultural economics]]