Cigar Box method: Difference between revisions

Revision as of 13:36, 19 November 2012

Revision as of 13:48, 19 November 2012

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* CB4: investment and finance projections with yearly cash flow,

* CB5: cost price based value chain analysis,

* CB6: invoicingpyramid and sales analysis.

== Origins ==

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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 2008 over 150 students were trained in the use of the Cigar Box Method. It has since developed into a fully fledged 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 Agricultural Organization]] (FAO)<ref>[http://www.fao.org/docrep/012/al177e/al177e.pdf]</ref>. The Cigar Box is used frequently by [[Bakery Initiatives]] as a navigator to bakery profit. <ref>[http://www.faobakery-initiatives.org/docrep/012/al177e/al177e.pdfnl]</ref>.

== Profit Parameters ==

The Cigar Box Method consists of profit calculation uses only five parameters:

P = Price (per unit),

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* [http://www.globalfacts.nl Global Facts : Download the free Cigar Box Method]

* [http://www.wageningenuniversity.nl/UK Wageningen University]

* [http://www.bakery-initiatives.nl Bakery Initiatives : we sell bakery profit!]

[[Category:Agricultural economics]]