EXECUTION AND SCALEUP

 

A. Social business description

Hi, my name is Mary Grace Silverio and I am the founder of Tambanokano Aqua Farm. Our mantra is Developing Livelihood Through Sustainable Mudcrab Production from Farm to Table. We envision creating a sustainable future for coastal communities by revolutionizing the aquaculture industry with our innovative crab modular system. We foster environmental sustainability while empowering local economies.

We’re facing a global food shortage by 2050. This crisis is already manifesting in specific sectors, such as seafood. For instance, the Philippine Statistics Authority (PSA) has reported a 29% average annual decrease in mud crab production from 2018 to 2022. This trend isn’t isolated to the Philippines. On a global scale, the UN Food and Agriculture Organization (FAO) notes a 30% decline in catch per unit effort (CPUE) for various fisheries. If these declining trends continue unsolved, they will significantly contribute to increasing food insecurity worldwide.

As a social enterprise, we focus on the planet, people, and profit. We’re preserving marine biodiversity, enhancing food security, providing economic growth and ensuring long-term sustainability.

Our recirculating aquaculture system allows mud crab harvesting in 15-20 days, reduces risks from pollutants and diseases and we reuse 85% of water. The system can be built in any size and place, as long as it’s enclosed making it adaptable for any scales of operation.

Our business model has five revenue streams. Two-thirds of our live harvest is sold to exporters and restaurants, generating $12,000 annually. The remaining one-third is cooked and sold through our subscription model as Crab-in-a-box to seafood lovers yielding $8,000 per year plus $2000 additional revenue from our Taba ng Alimango crab paste. The franchise model contributes $12,000 yearly. Through social partnerships with NGOs, we allocate the income as follows: 40% to TAF, 40% to the NGOs, 18% benefits the fishermen and 2% seed fund for single parents launching crab paste businesses. With these five revenue streams, we project an annual revenue of $45,000 and enhanced community impact and operational sustainability. 

There’s a $1B supply gap in Asia’s crab market. We’re targeting Metro Manila, focusing on exporters, restaurants, seafood enthusiasts, and franchisees. 

What sets us apart is our holistic approach. Unlike traditional crab farming and businesses, we focus on the entire ecosystem – from the environment to the community. We are the only ones who are traceable and sustainable. This not only ensures a sustainable supply of crabs but also fosters long-term economic and social benefits.

B. Resources and capabilities to execute

At Tambanokano, our key capitals are crucial for execution and scale-up. Our human capital includes myself as founder with 15 years in digital marketing, Hannah Herradura as our business intern, Kuya Boyong with 35 years in aquaculture, and Jeremy Salomon, our export consultant with 8 years at PhilExport. We have strong community partnerships with local organizations. Batang Muntinlupa, Lingkod Muntinlupa, and NGOs for Fisherfolks’ deep local ties ensure a smooth entry for our crab modules and wide acceptance among fisherfolk.

Our financial capital comes from angel investors, crowdfunding, and government sources. We have market access through various channels including the Department of Agriculture, exporters, and local restaurants. We receive policy support from multiple government agencies.

For research and innovation, we collaborate with universities and institutions like Sultan Kudarat State University and the Department of Science and Technology. Hub for Innovation for Inclusion is exploring potential Intellectual Property rights for our systems. Bridge for Billions, Arizona State University, De La Salle College of Saint Benilde helps us with incubating our business. 

This blend of expertise, partnerships, and support positions us to innovate in aquaculture while creating social impact.

Since our launch, We’ve gained 250 paying customers, a restaurant partner, and see 13% month-over-month growth.  And market our products through our online and offline channels.  Our customer lifetime value to acquisition cost ratios are strong: 3 for live crabs and 3.3 for Crab in a Box. We’ve been featured in different media outlets like Rappler RNG News Channel and The New Channel, won the Trailblazing Creative Disruptor Award at 2024 BEAT Awards powered by DOST-PCIEERD and De La Salle College of Saint Benilde. 

We understand that success requires proactive risk management. We’ve identified key risks and developed robust strategies to mitigate them. To mitigate revenue risks, we’ve diversified our income streams across live crab sales, subscriptions for cooked, and franchising. Our recirculating aquaculture system addresses environmental risks by reusing 85% of water and providing a controlled environment, with the remaining 15% used to water neighboring community plants. We manage waste by collaborating with community farmers to repurpose crab shells for agricultural compost and exploring partnerships with cosmetics companies for chitosan use, while food waste from crab paste is composted. To tackle market risk, customer base locally and internationally, partnering with restaurants and focusing on exports. For health risks associated with our crab paste products, we maintain rigorous quality control and are pursuing Halal and HACCP certifications. As we grow, we remain vigilant, regularly reassessing our risk landscape and adapting our strategies accordingly.

C. ESG performance

Our commitment to Environmental, Social, and Governance (ESG) principles is at the core of our operations. 

Environmentally, our recirculating aquaculture system reuses 85% of water, significantly reducing consumption and pollution risks. We’re unique in releasing 1% of queen mother crabs for wild replenishment. Our ‘crab condos’ minimize habitat destruction.

Socially, we’ve doubled local fishermen’s monthly income from ₱5,600 to ₱12,000 through steady employment and profit sharing. Our impact is exemplified by Ivan, who returned to school after his father found work at our farm. We also support single parents in launching crab paste businesses.

Our governance framework ensures transparency and accountability. We’ve set clear ESG objectives, regularly engage stakeholders, and measure our performance using industry-standard KPIs. These cover water efficiency, community employment, and governance transparency. We’re committed to continuous ESG improvement for long-term sustainability and positive impact.

Our governance structure ensures ethical, transparent, and accountable operations, crucial for sustainable development and investor confidence. We align strategic decisions with our long-term vision and relevant UN Sustainable Development Goals. Our advisory board, comprising experts in aquaculture, sustainable business, and community development, provides oversight and guidance.

We’ve implemented comprehensive data collection and reporting systems for financial performance, environmental impact, and social contributions, preparing us for investor due diligence. Our ESG communication and measurement strategy follows the Global Reporting Initiative (GRI) Standards, specifically GRI 13 for our sector.

We maintain open communication with all stakeholders through regular engagement sessions, addressing ESG concerns and expectations. This approach ensures ethical operations and positions us as an attractive partner for impact-focused investors.

The $40000 grant from UNDP will fund the implementation and operation of our hatchery and grow-out tank prototype. This includes staffing, equipment acquisition, and initial crab seedlings to ensure smooth expansion and operations over the next 12 months

With your investment, we project to impact 4 crab fishermen and 10 solo parents, while generating significant sales revenue.

You can also help us through crab farming research, working capital, green packaging, strategic partnerships, introduction to restaurants, exporters and investors.

Join us in our mission to revolutionize crab farming, ensure food security, and create positive social impact. Together, we can change lives, one crab condominium at a time. Thank you.