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.
The method derives its name from pioneers in the 17th century Dutch Golden Age who were discussing foreign business deals while sipping coffee and smoking a cigar.
It analyzed the suitability, including a risk analysis and potential benefits, of specific agricultural production processes for foreign investors.
[2] 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).
The Cigar Box Method purposely does not make use of specific software, is free of charge and is available in English, French, Russian and Spanish.