UCLA Anderson MBA students conduct Applied Management Research (AMR) projects in lieu of a thesis. The nation’s first business school field study program, AMR partners students with top organizations to solve a key strategic problem. The Center for Global Management sponsored four UCLA Anderson Class of 2018 teams to work with Conservation International, which partners with indigenous groups internationally and pairs local expertise with student consultants.
This story is one of the four by students who collaborated with CI to help find sustainable solutions to enhance economies in environmentally sensitive parts of the world. UCLA Anderson Class of 2018 AMR students made their final presentations on March 9.
By Pascual Daniel George Eley, Santiago Fernandez Quiroz, Ryan Seiji Imamura, Alfredo Jose Noriega Aurazo, Michael David Snyder (Class of 2018)
Our Applied Management Research (AMR) team engaged with Conservation International to support the development of an environmentally sustainable value chain for coffee production in the San Martín region of northern Peru. The goal was to identify the key to scaling current efforts to improve sustainability by identifying optimal linkages in the value chain for intervention. Evaluating the current split of value-capture across the chain to understand how best to incentivize local farmers was inherent to these efforts and any intervention efforts need to consider the social and economic impact on the small communities in the San Martín region.
After several weeks of extensive secondary research, we understood the broader economic context in which the coffee sector in Peru operates. A combination of price pressure and limited power relative to middlemen in the value chain left smallholder farmers exposed to the fluctuations of the volatile coffee market. Along with the unfavorable effect this had on living conditions, the corresponding drive for increased yield to make up for limited pricing power adversely impacted the environment (coffee farming has been identified as the leading cause of deforestation in the San Martín region). Our primary research entailed interviews with coffee industry players and subject matter experts, and an in-country visit to meet with smallholder farmers, local community representatives and leaders of cooperatives.
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