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HIDROCULTURA ROQUE MONTEIRO Growing plants with little water The Brazilian Sergio Roque, son of Cape Verde emigrants, returned to his parent’s homeland to start an agricultural business based on hydroponics. The incentive was more of a mix of ‘family home sickness’ and idealism, to help the Cape Verdean people, rather than seizing a business opportunity. Having studied agricultural engineering, with a strong background of hydroponics, he was able to set up a successful business for which he received national recognition This case serves as the basis for class discussion rather than to illustrate either effective or ineffective management. The case is based on data provided by interviews with the management of Hidrocultura Roque Monteiro and Internet resources. It was prepared by Professor Peter Augsdörfer (THI Germany). 30/11/2014

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Page 1: HIDROCULTURA ROQUE MONTEIRO - UNESCO...HIDROCULTURA ROQUE MONTEIRO Growing plants with little water The Brazilian Sergio Roque, son of Cape Verde emigrants, returned to his parent’s

HIDROCULTURA ROQUE MONTEIRO Growing plants with little water

The Brazilian Sergio Roque, son of Cape Verde emigrants, returned to

his parent’s homeland to start an agricultural business based on

hydroponics. The incentive was more of a mix of ‘family home

sickness’ and idealism, to help the Cape Verdean people, rather than

seizing a business opportunity. Having studied agricultural

engineering, with a strong background of hydroponics, he was able to

set up a successful business for which he received national recognition

This case serves as the basis for class discussion rather than to illustrate either effective or ineffective management. The case is based on data provided by interviews with the management of Hidrocultura Roque Monteiro and Internet resources. It was prepared by Professor Peter Augsdörfer (THI Germany).

30/11/2014

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[HIDROCULTURA ROQUE MONTEIRO] 2014

| Country Information 2

HIDROCULTURA ROQUE MONTEIRO

Growing plants with little water

Abstract: The Brazilian Sergio Roque, son of Cape Verde emigrants, returned to his parent’s homeland

to start an agricultural business based on hydroponics. The incentive was more of a mix of ‘family home

sickness’ and idealism, to help the Cape Verdean people, rather than seizing a business opportunity.

Having studied agricultural engineering, with a strong background of hydroponics, he was able to set

up a successful business for which he received national recognition.

CONTENT

Country Information ................................................................................................................. 3

Agriculture and Food ............................................................................................................... 6

The founder .............................................................................................................................. 7

Company ................................................................................................................................. 8

Technology............................................................................................................................. 11

Competition ........................................................................................................................... 13

EXHIBIT .................................................................................................................................. 15

Exhibit 1 .............................................................................................................................. 15

Exhibit 2 ............................................................................................................................. 15

Exhibit 3: What is hydroponics? .......................................................................................... 15

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| Country Information 3

COUNTRY INFORMATION1

The Cape Verde islands span an archipelago of ten volcanic islands in the central Atlantic

Ocean, about 570 kilometres off the coast of Western Africa. The capital is Praia, which is

about a one-hour flight distance form Dakar, and three hours from Brazil. The country has

around 500,000 inhabitants.

Caught in the Sahel zone, the islands

have a semi-arid climate. The area

has a very low precipitation, a very

long, prevailingly dry season and a

short rainy season (irregular rain

between August and October, with

frequent brief-but-heavy

downpours). The temperature does

not really vary. However, Cape

Verde's climate is milder than that of

the African mainland, because the

surrounding sea moderates

temperatures on the islands and cold

Atlantic currents produce an arid

atmosphere around the archipel. Therefore, the air temperature is cooler than in Senegal, but

the sea is actually warmer.

Cape Verde, or Cabo Verde, has had a sound and working democracy since gaining

independence from Portugal in 1975. It has not experienced a single coup d’état, a regional

record shared only by Senegal. The country is well governed; its macroeconomic

management is sound, trade is open and it is increasingly being integrated into the global

economy and is adopting effective social development policies.

In the mid-1990s, the government began a series of reforms that have transformed a

previously centrally-planned economy into a market-oriented economy. The number of

publicly-owned enterprises has decreased from forty to six, as of today. Privatization came

through either private sector sales or liquidation. The two main utility companies, Electra

(electricity and water) and Cape Verde Telecom; the country's three banks, and the main

1 Sources adapted: http://en.wikipedia.org/wiki/Cape_Verde and www.worldbank.org/en/country/caboverde/overview#1 and

www.state.gov/r/pa/ei/bgn/2835.htm and (map) www.cia.gov/library/publications/cia-maps-publications/Cape%20Verde.html, and (photo)

www.afropop.org/wp/10133/cape-verdean-american-story-with-marilyn-halter/ and

www.americanprogress.org/issues/security/report/2013/08/22/72557/guinea-bissau-and-the-south-atlantic-cocaine-trade/ , and

www.un.cv/files/One%20UN%20in%20Cape%20Verde.pdf ; accessed 2.10.14

Figure 1: Cape Verde

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| Country Information 4

state-owned entities in the tourism sector have all been sold off. Since 2007, it has been

classified by the UN as a developing nation due to its impressive results.2

Cape Verde has few natural resources and its isolation is unfavourable for

its economy. It issubject to high unit costs for its core infrastructure and

public goods, and its relative remoteness and isolation mean transport

costs are high. Despite this, it had notable economic growth (GDP) per

capita of 7.1% during 2005-08, well above the average for Sub-Saharan

Africa, and for small island states. Unfortunately, after 2009 growth

slowed to a disappointing 0.5 % (2013). The slowdown reflects the fall in

private investment, which in turn is associated with a drop in foreign direct investment (FDI)

and tighter monetary conditions. All of which is the aftermath, to a significant extent, of drug

smugglers using the Cape Verdes as a stopover on the way from Latin America to Africa

(Guinea-Bissau). However, an anti-drugs trafficking operation started in 2008 has been very

successful.3

The economy of Cape Verde relies on a narrow

range of economic sectors. Cabo Verde consistently

runs a high trade deficit, which is bankrolled by

foreign aid and remittances from its large pool of

emigrants. Today, more Cape Verdeans live abroad

than in Cape Verde itself, and their remittances

supplement GDP by more than 20%. Its economy is

mostly service-oriented, with commerce, transport,

and public services accounting for more than 70%

of the GDP. There is a growing and successful focus

on tourism, inspired by Cape Verde’s diverse

landscape and cultural wealth, especially in music.

Tourism is estimated to account for 21% of the GDP (2013). It depends, however, very much

on the economic situation in Europe. That is why the Cape Verdean escudos (CVE) are linked

to the European euro. The construction and industry sector remains the least confident

sector, following stagnation of new investments in hotels and secondary residences since

2008 (19% of GDP in 2013). Its main industry includes food and beverages, fish processing,

shoes and garments, salt mining, and ship repair. Main export goods are fuel, shoes,

garments, fish, and hides.

2 Source: http://praia.usembassy.gov/climate-report.html

3 Since 2005, the country has cooperated with U.S. law enforcement officials to fight drug trafficking. At the same time the One UN programme and first

Millennium Challenge Corporation (MCC) compact (for $110 million) have been strengthening Cape Verde’s capacities in the Judicial Police, the Ministry

of Justice, the National Anti-Corruption Group, the Coordination Commission for Drug Control and Prevention centres and the Financial Intelligence Unit,

as well as among civil society, in the fight against transnational organized crime, drugs trafficking.

Figure 2: GDP growth (annual %)

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| Country Information 5

In an attempt to increase FDI, the government gives foreign investors important guarantees.

For example: privately managed foreign currency accounts, which can be credited from

abroad or from other foreign accounts in Cape Verde. In addition, it allows undisputed

repatriation of dividends, profits and capital from foreign investment operations. The

regulatory legislation specifies that for the first five years of operation, dividends may be

freely expatriated without tax and that for the next fifteen years dividends may be expatriated

with a flat tax rate of ten percent.

Cabo Verde’s arid conditions and mountainous terrain put the country at a disadvantage for

agricultural production. Only four islands have substantial agricultural production (9% of GDP,

2013). Over 90% of all food consumed is imported. The fishing potential, mostly lobster and

tuna, is not fully exploited. Main products are bananas, corn, beans, sweet potatoes,

sugarcane, coffee, peanuts, and fish.

Overall unemployment is at around 13% (2011), however, within that percentage, youth

unemployment is particularly high at 27%. Business confidence remains pessimistic overall

and future prospects depend heavily on the maintenance of aid flows, the encouragement of

tourism, and remittances from their diaspora. Cabo Verde’s main export partners are Spain

66.9%, Portugal 13.9%, US 5% and its main import partners are Portugal 38.1%, Netherlands

21.5%, China 7.9%, and Spain 7% (2012).

There are an estimated 25,000 immigrants in Cape

Verde of whom 72% are from West Africa, 17% from

Europe and 12% from China. Chinese immigrants

come as an unsuspected surprise to people visiting the

islands. Since 1995, the Cape Verdes have experienced

a wave of Chinese entrepreneurial immigration, which

has transformed local retail significantly. All inner

cities are filled with Chinese shops.4 However, profit

margins have since fallen, because there are too many

Chinese in the Cape Verdes.

Cabo Verde's main bilateral donors are China,

Luxembourg, Portugal, Spain, and the United States.

Cabo Verde also receives smaller commitments from

Japan, Kuwait, Saudi Arabia, and Angola. The Chinese

government has given $63.5 million in development

finance. These projects include $4.4 million for

construction of the Poilão dam in the Santa Cruz area,

$22 million to build a sports stadium in Monte Vaca,

4 China pursues a policy of entrepreneurial migration, which during the past fifteen years has reached countless places off-the-beaten-track, in a search

for markets still unconquered by others, from the Marshall Islands and Kamchatka to remote villages in Romania (source adapted: Haugen, H. and

Carling, J. (2005), On the edge of the Chinese diaspora: The surge of baihuo business in an African city, in Ethnic and Racial Studies, Vol. 28, No. 4, pp.

639-662)

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| 6

and $2.3 million in debt relief. China’s capital flows into the Cape Verdes mainly to create

business opportunities for Chinese service contractors, such as construction companies.

Figure 3: Praia Bay

AGRICULTURE AND FOOD

Since the 1960s, a number of

development aid programs have targeted

the agricultural industry, but progress has

been frustrated by drought and ongoing

water shortages, locusts, overgrazing,

and old-fashioned and ineffective

cultivation methods. Nearly all the

agricultural development efforts focused

on irrigation and humidity issues, such as,

improving techniques for seed

multiplication; for potato and sweet

potato cultivation in the humid areas; and

water management in the irrigation

schemes (dikes and stone retaining-

walls). In contrast, the arid, semi-arid and sub-humid zones, accounting for by far the greater

part of the island area - and rural population - have received little attention.5 The most

important effort was a tree planting programme of 40, 000 major acacia (prosopis) trees in the

arid zones. 6

5 Source: http://www.ifad.org/evaluation/public_html/eksyst/doc/prj/s025cvae.htm; accessed 03.10.2014

6 Source: http://faostat.fao.org/DesktopDefault.aspx?PageID=339&lang=en&country=35

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| The founder 7

Gardening for domestic consumption is the most widespread agricultural activity of the Cape

Verde islands. Crops include maize, cassava, sweet potatoes, and bananas. Only about 11.2%

of the land area is suitable for crop production7. Only five islands (São Tiago, São Vicente, São

Nicolau, Fogo and Santo Antão) have conditions suitable for raising cash crops. Bananas are

the most important agricultural export. Increasingly wine and coffee are grown for export.

Sugarcane is used to produce rum, which is also exported.

At the markets, fresh available fruits include bananas, mangoes, papaya, passion-fruit, (and

imported apples), grapes, kiwi and citrus fruits. Potatoes, carrots, squash, cucumbers,

tomatoes, onions, green peppers, green beans, eggplant and lettuce are almost always

available, while seasonal stocks of more exotic fruits and vegetables (such as strawberries and

broccoli) have longer seasons and better quality than a few years ago. Dried beans and

manioc are always in the market. Some frozen vegetables can also be found, including peas,

maize, green beans, and sometimes spinach and broccoli. The availability of fresh herbs and

the variety of vegetables overall is less good.

Most of the stores tend to buy through the same wholesalers/importers − which mean that

when one runs out, they all do. The wholesalers also seem to buy and ship what is available at

a good price. Thus, the items in the stores tend to be what came in on the last ship. So some

goods, even basics, can be occasionally unavailable. Fresh dairy products, with the exception

of excellent ice-cream, and local goat cheese, are scarce. Most residents consume either UHT

(ultra-pasteurized) milk, imported from Europe or powdered milk. Butter, Gouda cheese, and

margarine are imported and are almost always available. Other imported cheeses such as

Edam, camembert, brie, Swiss and Roquefort can occasionally be found in the supermarket

and in some of the more exclusive mini-markets. People generally buy things whenever they

see them, and maintain a stock in their own freezers and store room.8

THE FOUNDER

Sergio is a Cape Verde immigrant. He was born in Sao Paulo/Brazil but his parents were both

from Cape Verde, although they only met while in Brazil. His parents left Cape Verde in 1940

when there was a terrible famine on the island and many people died9. It is said that about

50% of the population died, mostly children. He felt an intrinsic need to ‘return to his roots’

7 Source: http://en.wikipedia.org/wiki/Agriculture_in_Cape_Verde

8 Source: http://www.ediplomat.com/np/post_reports/pr_cv.htm

9 It seems that the disaster was the result of serious deforestation. The growing population had a pressing need for wood for shelter and cooking.

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| Company 8

and emigrate to Cape Verde. “Eu não sei!” was his reply when asked why he felt that way. This

translates as “I don’t know!”

Sergio received a degree in agricultural

engineering from a Brazilian university in

1994. His specialisation was the

fertilisation of plants. More specifically, it

was in hydroponics. Hydroponics is a

method of growing plants using mineral

nutrient solutions in water without soil

(see Exhibit 3 for more information).While

studying, his thoughts were constantly on

how hydroponics could be applied in the

Cape Verde where there is not enough

rainfall.

He continued working for the university,

but in 1997 contacted the first Cape

Verdean ambassador in Brazil for advice on how to immigrate to the Cape Verde. The

ambassador told him to apply for a job at INIDA10, which he did but was rejected. At the same

time, he also contacted the Ministry of Agriculture without success. There wasn’t even a reply

from them. He became increasingly fixated by the idea of moving to Cape Verde to the extent

that he applied for citizenship as a private investor, meaning without a job. And this against

the background of high unemployment in Cape Verde. Finally, in 1999, he managed to move

to Cape Verde. At that time, he was married, but his wife had no problems moving to the

island. On the contrary, she was a nurse and easily found a job at a Santo Domingo hospital. It

was she who supported his business financially during the initial years. Sergio had another

business partner, who helped finance the start-up. He still lives in Brazil and no longer holds

shares in the business. But, occasionally the partner still helps him to buy equipment and

seeds that are not available in Cape Verde.

COMPANY

Hydroponics was completely unknown to Cape Verde when he arrived. This gave him a

knowledge advantage. Agricultural education in Brazil is further advanced than in Cape Verde.

He started his business on a piece of land, donated to him by INIDA, in Santo Domingo

(Santiago Island), and which he was meanwhile able to buy. It is an area of 3000 m2, he

10 INIDA (Instituto Nacionai de Investigação e Desenvolvimento Agrário) is an agricultural research institute funded by the Department of Rural

Development and (since 2007) part of the University of Cape Verde. It is a located in a village in the central part of the main island of Santiago. It was

renamed in ECAA (Escola de Ciências Agrárias e Ambientais) in 2011 (www.unicv.edu.cv/index.php/unidades/ecaa ; accessed 22.06.2014

Figure 4: Sergio explaining how hydroponic

works

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| Company 9

currently only uses 500 m2. The ground was not very expensive. In a first step, he cleared the

place and built cheap frames for sun protection. He followed the method he had learnt at his

university. All tools and equipment literally had to be imported from Brazil (water tanks,

hosepipes, fertilizer, containers, seeds …). In total, it added up to a container load of five tons.

Today, most set-up materials are available for local purchase: tanks, netting, iron, wood and

cement.

In 2000 he had his first crop of

lettuce and sold it to hotels on the

island of Sal and on beach markets.

He was very proud and it proved

that his business idea worked.

However, in September 2001 he

experienced a huge setback. The

sun-protecting frames were

completely destroyed when a

cyclone hit the island. However,

because his business idea had been

successfully tried-and-tested, he

was able to ask the bank for a loan

and re-build the all-important

frames. Now they are made of steel and concrete. Similarly, the surfaces to plant the lettuce

were first made of eucalyptus wood. Today, they are asbestos-cement plates.

The start-up costs were very high. He spent US$ 17,000 setting up his system. However, he

broke even within a year. Sergio mainly grows lettuce and watercress, and to a lesser extent,

other vegetables. He cannot keep up with demand and is ready to expand his business.

Sergio earns up to CVE 200,000 per month11,12. He re-invests one third in the business.

However, he adds, “Hydroponics can raise more than just income,” and gets all-patriotic. The

Cape Verdes have bad soil and not enough water. Hydroponics can help the country to

become largely independent from the import of basic vegetables.

11 About US $2.300,- or €1.800 ,-

12 Cape Verde people enjoy a per capita income higher than that of many continental African nations. In order to compare this: the average monthly

salary in 2014 was estimated at CVE 26,000 (US $300) per month. Source: http://www.nationmaster.com/country-info/stats/Cost-of-living/Average-

monthly-disposable-salary/After-tax, and http://siakhenn.tripod.com/capita.html#C, and http://www.capeverde.com/forum/cape-verde-general-forum-

f2/salaries-t3038.html

Figure 5: Corporate headquarters

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| Company 10

That is why he actively promotes hydroponics technology in Cape Verde. In 2005, together

with the Institute of Training and Employment of Cape Verde, he organised the First

International Forum on Hydroponics with experts from Brazil, Spain and the Canary islands.

He became famous in 2006 when he was asked by the prison director on S. Vincente to

organize a project with prisoners. There was some money available from a Spanish fund, and

for him it was a matter of national pride to help them along. He thinks this matters more than

money, and he always enjoyed teaching. The prisoners’ greenhouse was 126 square meters

and assembled in six days. The first group of 36 inmates (aged between 18 and 24 years) was

chosen to participate by the prison management. They were candidates for rehabilitation. He

taught them a popular hydroponics method (static method), which they could continue once

they left prison. The prison became nearly self-sufficient with greens. He even was

interviewed for the British BBC. Following the state prison project, he received the Medal of

Merit of First Degree from the president of Cape Verde for services rendered to the nation.

Today, he not only supplies hotels, supermarkets and

restaurants on Sal Island but also on Santiago Island,

where his business is located. He has not exported,

because for the moment his capacities are limited. He

produces 75,000 units of lettuce per year – this is about

1,400 per week. He sells the lettuce for CVE 120.13 The

retail price of a lettuce is about CVE 18014. Most of the

vegetables consumed today in the Cape Verdean capital,

Praia, are produced by him. He guarantees delivery to his

customers. The production cycle is 30 days.

He hasn’t set up a website. He is not interested in

advertising or marketing. He relies on word-of-mouth

and, of course, on his tasty vegetables.

13 The exchange rate is 1 euro = 110 CVE

14 In the local corner shop (see photo)

Figure 6: His lettuce in the shop

shelf

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| Technology 11

TECHNOLOGY

Basically, Sergio is substituting gravel for soil and recycling a continuous stream of water and

minerals through trays that hold 600 lettuce and 200 watercress plants. With this method, he

uses less than one-fifth of the water and a fraction of the land that traditional farmers use.

Moreover, his yield is higher because normal soil is full of contaminants that weaken plant

growth.

Hydroponics has another advantage over soil culture. Pests

are easy to control in this type of system. In 1997 there was a

fascioliasis epidemic in the Cape Verde. Fascioliasis is a

flatworm, large enough to be visible to the naked eye. In

humans it causes abdominal pain, liver failure and ultimately

death. Animals (cattle, sheep) defecate in fresh-water and the

fascioliasis migrates via an intermediate host to vegetables.

People become infected by accidentally ingesting

(swallowing) the parasite. This stopped many people eating fresh lettuce15. However, Sergio’s

non-soil technique avoids contact with dung altogether and therefore is 100% parasite free.

When this fact became public it gave his business a huge boost.

Sergio uses continuous-flow solution culture for his lettuce

and static-flow solution for other vegetables. In the first

method, the nutrient solution constantly flows past the roots

of the lettuce. It is much easier to automate than the static

solution culture because sampling and adjustments to the

temperature and nutrient concentrations can be made in a

large storage tank that has the potential to serve thousands of

plants. They look a bit like patients being fed intravenously as

one can see their roots between the gravel. In a static-flow

solution, the plants are grown in containers of nutrient

solution. Whenever the solution is depleted below a certain

level, either water or fresh nutrient solution is added. Sergio

uses 15 minerals in the Xwater. The most important ones are

calcium (Ca2+), magnesium (Mg2+), potassium (K+), nitrate

(NO−), sulphate (SO2−), and phosphate (H2PO−). The plants are grown from specially treated

seed pellets, which guarantee a 100% growth success.

15 Fascioliasis is a zoonotic disease caused by the flatworm Fasciola gigantica, a liver fluke. Its usual hosts are sheep or cattle, in which it causes a disease

called “liver rot.” Humans are accidental hosts who become infected after eating uncooked vegetables, in particular lettuce or watercress on which

encysted organisms (freshwater snail) are present. In humans it causes abdominal pain most pronounced in the right upper quadrant, nausea, anorexia,

weight loss, weakness, intermittent diarrhea, and pruritus without fever or chills.

Figure 7: Fascioliasis

Figure 8: Sergio uses

special seeds

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| Technology 12

The biggest risk is a power cut. He needs electricity to power his water pump. If it fails, hand

watering is vital. The plants need constant watering because there is no soil to keep them

moist. Without water for a few hours, the plants die. That is why he has one employee. He is

from Nigeria and he looks after the watering. He can work independently without supervision

by Sergio. He receives a monthly salary of CVE 16,00016. However, all other work is done by

him.

Sergio also has a 15 m² greenhouse,

which he uses as an R&D lab. He

experiments with different sorts of

lettuce importing varieties from Brazil.

Rocket (rucola), for example, was

previously unknown ion Cape Verde

and today is a very popular lettuce. He

also grows medicinal plants, cauliflower

and beetroot. The future in his business

could be to grow strawberries, fruit and

flowers (e.g. also edible

chrysanthemums). However some of

these plans would require fully

acclimatized units not the semi-

acclimatized units he has on his site.

Moreover, value could be added by

vacuum-packing products and

exporting to other Cape Verde islands

or abroad.

16 Minimum wage is CVE 11,000/ month

Figure 10: Lettuce ready to be harvested

Figure 9: The R&D Laboratory

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| 13

COMPETITION

Sergio doesn’t see himself as a 100% entrepreneur who protects his knowledge, he is also half

scientist. And he is not afraid of competition because his higher goal is protecting the Cape

Verdes islands from ever again experiencing a famine disaster. Since 2006 he has trained

more than 100 people, at the request variously of the government and non-profit groups. But

he knows of only six people who have continued soilless cultivation professionally.

One of them is Emilio Lobo on Sal17. His company is Milot

Hydroponics, Lda. MHL grows a variety of high-quality produce

in greenhouses in Sal and has become the market leader on the

island. MHL uses also hydroponic techniques to produce fresh

vegetable products, including tomatoes, bell peppers,

cucumbers, lettuce and eggplants. Setting up a business is

relatively easy. Today, most set-up materials can be sourced

locally. Only in order to test the acidity of the mineral nutrient

solution, farmers must either hire a local agricultural company

or import special equipment. MHL is the market leader on Sal Island, and has also introduced

new products such as zucchini and endives.

Emilio’s hydroponic farm is possible because more and more tourists come to Sal. Tourists

discovered the white sand beaches and crystal-clear seas of Sal a couple of decades ago. And,

because tourists need fresh water, the island built a massive desalination plant. And, because

European tourists expect salad with their meals, Emilio realized here was a major business

opportunity. His first step was research on the Web. It gave him an idea what to expect. "The

technology − it's easy stuff," he says. "It's not complicated." Hydroponic farming uses far less

water than traditional agricultural farming practices. Even so, Lobo buys about 100 tons of

water every day; it accounts for one-third of his costs. He recently signed a contract with the

municipality to increase the water supply to 140 tons/day.

17 Source : http://www.npr.org/templates/story/story.php?storyId=11919910

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[HIDROCULTURA ROQUE MONTEIRO] 2014

| Competition 14

Even the ADF18 is supporting MHL’s project with funds. Emilio is importing a new technology

for growing lettuce from Brazil, called Nutrient Film Technique (NFT System). The NFT

system will allow MHL to increase current production of new plants from 1000 plants per week

to 5000 plants per week. MHL invested US $30,000 to get access to this system. His expected

turnover is: CVE 5,462,396 in year 1, CVE 10,978,312 in year 2, CVE 13,998,370 in year 3, CVE

14,840,030 in year 4, and CVE 14,902,358 in Year 5.

Coming back to Sergio, he likes teaching and tries to help the ECAA. For example, they work

with fully-acclimatized environments, which according to him is not good. However, they

have not as yet listened to his advice. They are only slowly breaking away from the old way of

thinking. This is one of the biggest cultural differences, as he has observed: “Brazilians are

curious, whereas the Cape Verde people are hard to convince.” He has stopped trying to teach

the ministries. He focuses on local communities. However, he adds with a smile on his face,

“When it comes to continuous flow technology and the ingredients I use in the water, I am not

telling them.”

18 African Development Foundation (www.adf.gov/capeverde.html). Their efforts center around tourism and the service sector, which exacerbates rural-

urban income disparities.

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[HIDROCULTURA ROQUE MONTEIRO] 2014

| EXHIBIT 15

EXHIBIT

Exhibit 1 Entreprise Hidrocultura Roque Monteiro

Owner: Sergio Augusto Roque Monteiro

S. Domingos - Cabo Verde

Exhibit 2

CAP VERDES

Data World Bank19

Population (2013) 498 900

BIP (2013) 1.888 $ milliard

BIP Growth (2013) 0.5%

Life expectancy at birth (2012) 75 years

School enrolment, primary (% gross ; in 2012) 112%

Exhibit 3: What is hydroponics? Hydroponics was discovered in the 18

th century. However, it was an American in 1929, William Gericke,

who first used the term ‘hydroponics’. Hydroponics derives its name from the Greek word ‘hydro’ or

water and ‘ponos’ meaning labour. Plants grown in hydroponics need no soil but only gravel and water

enriched with nutrients. The big advantage of hydroponics is that the plants have access to as much, or

as little, water as they need. Water which is not used can be collected and recirculated. This makes this

technology an ideal method for places where a lack of water is a major constraint, as is the case on

Cape Verde. 20

Wikipedia explains the technology, which today is an established part of agriculture: ‘Hydroponics is a

subset of hydroculture and is a method of growing plants using mineral nutrient solutions, in water,

without soil. Terrestrial plants may be grown with their roots in the mineral nutrient solution only or in an

inert medium, such as perlite, gravel, biochar, mineral wool, expanded clay pebbles or coconut husk.

Researchers discovered in the 18th century that plants absorb essential mineral nutrients as inorganic ions

in water. In natural conditions, soil acts as a mineral nutrient reservoir but the soil itself is not essential to

plant growth. When the mineral nutrients in the soil dissolve in water, plant roots are able to absorb them.

When the required mineral nutrients are introduced into a plant's water supply artificially, soil is no longer

required for the plant to thrive. Almost any terrestrial plant will grow with hydroponics … The most

common errors when growing are over- and under- watering; and hydroponics prevents this from occurring

as large amounts of water can be made available to the plant and any water not used, drained away,

recirculated, or actively aerated, eliminating anoxic conditions, which drown root systems in soil. In soil, a

grower needs to be very experienced to know exactly how much water to feed the plant. Too much and the

plant will not be able to access oxygen; too little and the plant will lose the ability to transport nutrients,

which are typically moved into the roots while in solution. These two researchers developed several

formulas for mineral nutrient solutions, known as Hoagland solutions. Modified Hoagland solutions are still

used today … One of the earliest successes of hydroponics occurred on Wake Island, a rocky atoll in the

Pacific Ocean used as a refuelling stop for Pan American Airlines. Hydroponics was used there in the 1930s

to grow vegetables for the passengers. Hydroponics was a necessity on Wake Island because there was no

soil, and it was prohibitively expensive to airlift in fresh vegetables.’21

19 www.worldbank.org/en/country/caboverde accessed 26/08/2014

20 See also : www.irinnews.org/report/83198/cape-verde-growing-food-without-soil

21 http://en.wikipedia.org/wiki/Hydroponics ; accessed 22.06.2014