Transnational Diaspora Case Studies_en 1.51 Mb

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Develop Your World
Case Studies
June
2011
This publication is a product of the ATN/ME 9732 Promoting Diaspora Support for Local Productive
Initiatives Project of Multilateral Investment Fund, member of the Inter-American Development Bank
group and Hispanics in Philanthropy with their local funders network.
The program “Promoting Diaspora Support for Local Productive Initiatives” by Hispanics in Philanthropy (HIP), in association
with the Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IADB), with the aimed to strength
philanthropic networks in Latin American countries in conjunction with diaspora groups, to invest in their communities
which maintain high levels of migration in order to create economic opportunities. Under the program a grant fund that
includes both local and international counterpart funding sources was established to support local productive initiatives
backed by partnerships with Latin American diaspora groups from the participant countries.
Our transnational program local partners include:
Daniel and Karen May Foundation, David and Lucile Packard Foundation, Ford Foundation,
Fundación del Empresariado en México, A.C. (FUNDEMEX), Fundación Falcondo,
Fundación Los Grobo, Fundación Minetti, Fundación Standard Bank, The William and
Flora Hewlett Foundation, Western Union Foundation.
Table of contents
President’s message
About HIP?
About the program Promoting
Diaspora and Local Support for
Productive Initiatives
4
5
5
Fammi Olio
6
15
Increase in Goat’s Milk and
Cheese Production
25
Barbecue as a Means for Economic
Development in Coroneo, Guanajuato
34
Organic Bananas: An Ecosystem
Restoration Project in Azua
41
Capacity Building for Santiago
Rodríguez Cassava Bread Producers
50
Trade For Export Made
by Argentineans
President’s message
Hispanics in Philanthropy was a transnational network
even before we began to partner with funders and
nonprofits in Latin America in 2001, and before we
opened the Mexico City office in 2006. In the first strategic
planning retreat our leadership defined “community” as all
of the Americas, North, Central and South. This identity,
as well as the trends towards globalization, has shaped
our vision of working across borders.
The statistics are well known: more than a third of the
Latinos in the United States are foreign born, and many
maintain a close connection with their countries of origin;
witness the more than $60 billion in remittances that IDB
estimated had flowed in 2009 to our families left behind.
Our Diasporas are a valuable resource for creating
economic opportunity and advancing democracy.
Moreover, U.S. Latinos and the people of Latin America
as a whole show enormous potential for growth in
philanthropic investments. In the United States, our
numbers: will be a determining factor in the economic
prosperity of communities; will generate new leadership in
the public, private, and civil sectors, and add intellectual
and cultural capital to our already rich heritage.
For this reason, when the former President of the InterAmerican Development Bank, Enrique V. Iglesias, invited
HIP to partner with the IDB, we welcomed the challenge.
We knew that projects entail risks and opportunities.
And we set about the task of growing our competence
to work in Latin America by reaching out to our network
of donors to identify, support and connect productive
initiatives.
In the Dominican Republic, our longstanding partnership with Fundación Falcondo and a score of
banks, businesses and individual philanthropists contributed to spearheading the search for projects
that would build capital for Dominicans in the United States and the Dominican Republic.
In Argentina, under the leadership of Fundación Minetti, Standard Bank and others, we began a
similar process.
In Mexico, we invested in projects in partnership with the Ford, Hewlett, and Packard foundations,
as well as Fundemex, and the Daniel and Karen May and the Western Union foundations.
Among comparative advantages that HIP brought was our ability to aggregate funds and knowledge from local,
as well as U.S.-based funders. This collaborative approach, which has been at the heart of HIP’s values-driven
strategies, provided greater leverage for all the partners, while lowering risks.
This report captures the outcomes of our investments, and the lessons learned from these projects now become
the fertile ground for the next harvest, for HIP’s next decade of transnational investment.
I invite you to join HIP and its network of more than 600 funders in
engaging all sectors to develop a sustainable prosperity in the Americas.
Diana Campoamor P R ES I DENT
Hispanics in Philanthropy
About HIP?
Founded in 1983 to promote stronger partnerships between organized philanthropy and Latino communities,
Hispanics in Philanthropy (HIP) is a transnational association of grantmakers, with more than 600 members
representing corporate, public and private philanthropies.
HIP’s mission is to serve as a catalyst to increase resources for the Latino and Latin American civil sector; to increase
Latino participation and leadership throughout philanthropy; and to foster policy change through philanthropy to
enhance equity and inclusiveness. HIP’s work contributes to the greater effectiveness of philanthropy and to further
increase equity and diversity. Its vision of the future reflects the organization’s diverse origins and projects a model of
philanthropy that is congruent with the increasingly diverse global community in which we live.
About the program Promoting Diaspora Support for
Local Productive Initiatives in Latin America
The Multilateral Investment Fund (MIF) of the Inter-American Development Bank was designed as a new type
of technical assistance mechanism to stimulate innovation and extend beyond existing bilateral and international
assistance instruments for Latin America and the Caribbean. MIF projects focus on testing new development
approaches and work to promote inclusive economic growth. The central objective was to use both grants and
investment mechanisms to demonstrate new ways to develop micro and small enterprises, build worker skills,
strengthen environmental management and improve the functioning of financial and other markets. MIF undertakes
small, targeted development projects in partnership with business groups, NGOs and public sector entities to build
the capabilities and skills standards of the workforce, broaden the economic participation of smaller enterprises,
and strengthen the environment for doing business.
HIP was the executing agency of an approved MIF program whose main objective was to create economic
opportunities in diverse Latin American communities that have been affected by high levels of migration. Under the
Promoting Diaspora Support for Local Productive Initiatives in Latin America program, a fund was established to
support local economic development projects backed by Latin American diaspora organizations from Argentina,
Mexico and the Dominican Republic. Resources from the MIF, HIP and counterpart funds from local in-country
funders sustained the program. All projects financed focused on income-generating activities.
Within the program goals of reaching low-income communities, priority was given to projects submitted by NGOs
or other eligible institutions serving minority or underserved populations such as people of African descent, youth,
women and indigenous groups.
5
Trade For Export Made by
Argentineans
Asociación Mutual de Empleo
y Gestión Solidarios (Mutal
GESOL) Case Study
Background and description
The Asociación Mutual de Empleo y Gestión Solidarios (Mutual GESOL) was established in 1989 , in
response to Argentina’s hyperinflation, mass closure of factories and high unemployment rates in the
country. Mutual Gesol main purpose is to promote the implementation of projects that aim at creating
jobs for vulnerable groups in Argentina. To this end it provides training, assistance, and technical
support to groups that strive for attaining financial self-sufficiency. In addition, with each initiative it six
to enforce the basic rights of families living in poverty. Mutual GESOL comprises more than 60 social
organizations working on, food, housing, health, education, culture, and recreation.
Mutual GESOL, through the regional program Support for Local Productive
Initiatives through the Diaspora and Local Entities of HIP-MIF, carried out the
project “Trade for export made by Argentineans”. It”s purpose was to create an
area of foreign trade within the organization. To facilitate the export of products of
more than 600 entrepreneurs in Buenos Aires, while promoting the association
of entrepreneurs to improve their competitiveness.
The project operated through networks that worked out of the Social Businesses
Incubator of the Buen Ayre, a production center run by Mutual GESOL in
Hurlingham. From this center, Mutual GESOL provided support to the networks
on several aspects.
The project aimed to expand the networks’ trading volumes by placing them in
foreign markets with the help of Argentine immigrants who live and work abroad
but maintain emotional and economic ties to their community. In 2006, prior to
the support recived from HIP, Mutual Gesol in collaboration with the Argentine
Diaspora living in Spain, selected three products that had export potential and were incubated in
the Metropolotan Area of Buenos Aires ( MABA). As a result, the project submitted to HIP proposed
actions in the short-, medium- and longterm to facilitate the integration of products and services
made and produced by socio-economically vulnerable entrepreneurs from Buenos Aires, Argentina
into the European market.
In order to work, the project had to overcome the existinf barriers that prevented the insertion of such
products into the market. In particular, and given the country”s low economic growth prospects,
the project sought to incorporate the working poor into the market throught self-production and
commercialization strategies. Institutional projects that helped small producers to become self-sufficient
were very important.
7
Producers were grouped by productive sectors. And
beacuse of the goals of the project was to establish
a production or commercial “value chain,” producers
were organized in Productive Affinity Group (PAG)
there were four Productive Affinity Groups:
Manos Bonaerenses’ Hand-woven Crafts and
Hand Loom Weaving, Catalina Lama Textiles &
Accessories, Food Products and Decoration and
Nina Candles and Lanterns.
In early 2007, Mutual GESOL established an agreement
with ATACATÁ a civil association located in Valencia,
Spain and who mission is to provide assistance to
vulnerable people of Argentina. Under this agreement,
Mutual GESOL was granted a free space in Orihuela
that could be used as a warehouse to store the goods
exported from Argentina.
The project initially started with 69 workers. Most of
them did not participate in the formal labor market and
relied on small-scale production and commercialization
strategies. Mutual GESOL administered them a
quiestionnaire to find out the main characteristics of the
entrepreneurs and their businesses. By May 2009,
there were 169 participants and by September 2009,
193. At present, ther are 203 entrepreneurs involve
in the project.
8
Implementation strategies and tools
The strategies of the project were as follows: (1) to increase the quality and quantity of production, to claim a share
of foreign markets by trading as part of a group, which would mean a larger number of units and influence, and,
ultimately, to establish sustainability for the group of producers; (2) to establish strategic partnerships in designated
countries (i.e., the Diaspora community in Argentina) that could be counted on to contribute regularly to improving
the program both to initiate entrance into and build strength in the market, thus supporting “the interests” of the
producers’ networks; and (3) to conduct and encourage activities that contributed to the achievement of the
project’s objectives by facilitating government agencies, NGOs and private sector program and project activities.
Another strategy of the project was the establishment of the “2009 Annual Operating Plan, Program for Strengthening
the Entrepreneurs,” which supported the identification of obstacles throughout the project and provided technical
support to overcome them. The plan aimed to engage the developing entrepreneurs in the “Productive Affinity
Group” and to improve production and trading processes for their products, increase the quality of the products
being manufactured and lower the costs of production and trading.
Development process
Creation of a nodal network
as a unit of foreign trade within
and between Argentina and
Argentine residents in Spain.
Operation and stabilization
of an intercontinental foreign
trade unit for the Argentina
products and services in the
European market.
Strengthening the area
of foreign trade of the
Social Marketer GESOL
with the creation of a
multi-actor management
unit associated with
Argentines living abroad
(mainly Spain).
Strengthening of group
managing to market
horizontal productive
networks of the Buenos
Aires region, improving
the value chain of its
products for greater
competitiveness.
To Incorporate technology
and design with international
competitiveness to three item
line of production with the
potential to export.
Designing
a
quality
program and appropriate
cost reduction for each
of the three horizontal
networks.
Organization and partnership
stategies to form clusters /
horizontal networks in three
areas in order to trade.
Stably insert into the
external
market
the
products of the three
horizontal networks.
Shipments of samples and
commitments to purchase.
IIncrease competitiveness
(value chain and quality
process)
of
three
incubated
productive
lines: furniture and wood
industry, regional food
and clothing (textile and
footwear) for trade.
9
Detectition of the demand for
products and services made
in Argentina in the international
market and capable of being
satisfied by networks or cluster
of social enterprises based in
the Program GESOL incubator
Network.
Detection by Argentinean
diaspora community of the
demand of other products.
Selection or search of
products of the social
economy mainly incubated
but also associated with
governmental and / or non
govermental expiriences.
The beneficiaries
Several authors that have analyzed the issue of informal
small companies agree that when talking about such
companies, besides referring to the small size, the
concept refers to the low value of assets, to a standard
technology, to an economic rationality more concerned
with reproduction than accumulation, driven by those
seeking to stay busy and earn adequate income.
Therefore, neither the capitalization nor the expansion of
their markets is important.
Another distinctive feature is that the cost structure is only
appropriate on occasions where one takes into account
the lowest price that is assigned to the work provided
by its members and to the imitation of familiar labor.
Experts also point out that these economic activities
are characterized by imitation and not innovation, a fact
that makes the venture very vulnerable when the market
sector is satisfied.
An additional coincidence that the authors agree on is
that the group of small companies can be extremely
diverse, from subsistence-focused economic activity
that is highly vulnerable to small enterprises based in
sustainable niche markets that grow when the business
cycle is positive.
In turn, the group of institutions dedicated to promoting
the industry, as well as Mutual GESOL, serves informal
companies. Consequently, the work strategy of these
organizations confuses two types of tasks. On the one
hand, there are those focused on supporting people
who seek or have found a self-employed, low-skilled,
sustainable job, channeled through very small, fragile
companies, and carried out by people with low education
and poor skills whose only possibility of sustaining their
work is through the injection of external resources. On
the other hand, there are those who perform tasks
for the sector of small companies providing products
and services demanded by the market, which need a
more structured organization with competent managers
and techniques, so that they have a real chance to
survive and grow. The scholars tend to emphasize
that if you analyze the contents and activities of most
programs designed to strengthen small companies, the
problem is that these companies target the first type of
members, while their methods and resources align with
the second.
10
Main concerns addressed by the project
Lack of training in quality, commercial and
group management of entrepreneurs who
also have low levels of education to achieve a
competitive advantage.
Lack of response from the formal system of
work, even during the economic recovery, in
generating sufficient quantity and quality of jobs
in the region where high poverty rates remain
due to insufficient income.
Lack of governmental support in accessing
new markets, fundamental to the foreign trade
of products by socially-based entrepreneurs.
Lack of horizontal and vertical integration
among socially-based producers and lack
of articulation in value chains with other more
stable and dynamic sectors of production.
Technological difficulties in industrialized
processes and consequently lack of added value
in products with the potential to export.
Difficulties in structuring costs due to
fragmentation of the demand for raw materials and
services (shopping) and the lack of diversification
in suppliers.
Low quality and quantity of products and
problems in packaging, among other tools,
which affects the sale price in more demanding
markets.
Poor marketing strategies, especially in foreign
markets.
Beneficial factors
The GESOL organization proved to be highly flexible and able to adapt and incorporate conceptual
and methodological tools that were offered by HIP in order to solve problems that arose in the process
of changing strategies from individual work to cooperative associations, focusing on both improving
the quality of production and lowering production costs.
The project faced complex problems and remedial actions that required the use of the logical framework
methodology, which successfully systematized concrete and realistic goals and products. This was
critical for the achievement of the project.
11
Critical factors that influenced the results
The project faced a major obstacle related to the placement of the products in foreign markets, a
difficult goal to achieve in the lifetime of the project. Export production must first meet sustained
production levels of quality and volume. These levels of quality and production did not exist for
any of the supported production lines at the beginning of the project, due primarily to the relative
lack of production capacity of the entrepreneurs assisted by GESOL.
Added to this was the crisis that engulfed the Spanish economy during the period of 2006-2008,
the main market targeted. There was evidence that it was not possible to respond to external
demand as the project proposed.
Finally, the decision making process depended on people and not institutions. This made the
project vulnerable, such as the case of the death of the founder of RED GESOL (and first President
of the Responsible Organization - Mutual GESOL), mentor of this project and a point of reference
for the Argentine community living in Spain. This meant not being able to count on fundamental
human resources for their commitment and ability to mobilize the diaspora community and who
had created conditions to develop cooperation projects in the commercial area from 1992
onwards. This unexpected event complicated the project.
Diaspora ties
The diaspora played a key role in the promotion and exportation of products made by the Mutual
GESOL.
The death of the founder and first president of the organization, Mr. Juan Carlos Scarpati, weakened
the interest and commitment of the Diaspora. This event significantly impacted the viability of the
project, especially the marketing products to Spain.
12
Lessons learned
The main progress made by the producers was as follows:
The project achieved the goal of at least one
monthly meeting that brings together entrepreneurs.
The attendance of producers at these meetings has
increased, growing from 60% in the first stage to 80%
in the final stage. In addition, these meetings have
created synergy between, and increased collaboration
among participating producers, resulting in the improved
economic viability of their ventures.
Progress is being made in reducing costs however,
GESOL’s organization value regarding pricing (i.e. “fair”
prices) should be taken into consideration.
GESOL’s trading channel, although limited to the
domestic market, is an important achievement because
it provides producers another way to increase sales,
and also leads to product acceptance that is otherwise
difficult to achieve.
GESOL continues to use the tool provided by HIP
for its project, the “Product Evaluation Grid”, that
Producers continue to test some products with target
applies to each type of product and/or product group. markets, in addition to selling some of the products,
Entrepreneurs used a measurement tool that is able to although sales were affected by the poor Spanish
offer guidelines to evaluate progress made in the process economy.
of assisting producers.
Main lessons learned
The GESOL organization has made new and significant improvements in its work, which has led to a positive
impact on the entrepreneurs they serve.
It can be concluded that, at the end of the support received from HIP, the project will transition to a new self-guided
consolidation phase with a favorable outlook on the sustainability of the institutional transformations achieved. The
project could continue and be replicated and extended to assist new groups of vulnerable people who use
entrepreneurship as their only viable strategy for entering the job market.
The project strengthened both established and newly-formed partnerships and networks between entrepreneurs.
New partnerships among entrepreneurs created avenues for working towards common goals. There were some
new alliances formed that resulted in increased sales for participating entrepreneurs.
13
References
Ugo, Marcelo, 2010. Informe Final del Proceso
de Monitoreo y Evaluación, efectuado sobre los
resultados e indicadores del proyecto Comercio
Exterior Solidario-Hecho por Argentinos y
Argentinas – Mutual GESOL, Programa de Apoyo
a Iniciativas Productivas a Través de la Diáspora y
Entidades Locales de Hispanics in Philanthropy,
Buenos Aires Argentina.
Contact information
Asociación Mutual de Empleo y Gestión Solidarios
Address
Independencia 3090
Código Postal: 1225
Ciudad Autónoma de Buenos Aires, Argentina
Phone: + (54) 911 4665-9445/ 1605
Email: [email protected]
Web site: www.gesol.org.ar
14
Fammi Olio
Fundación Pedro Antonio
Marzano Case Study
The area of Maipu, Argentina, is located in the northern central region of the province of Mendoza. It is renowned
for cultivating vines and olive trees, as it is an essentially agro-industrial area. It is also the first producer and
manufacturer of olive trees in the province as well as the first wine region of Argentina.
The Mendoza province accounts for 50% of Argentina’s olive groves, whereas Gran Mendoza covers 18% of
plantings and is characterized by the high fragmentation of its producers. The vast majority of these farmers lack
expertise and their trading processes are performed without receiving any additional payment, thus maintaining a
high level of poverty and high rates of migration.
Established in 1952, the Pedro Antonio Marzano Foundation works to promote social development in rural areas
through the comprehensive training of its population, particularly its youth. In its work to create educational equality,
the Foundation has conducted many effective projects, as well as provided training and technical assistance for
those who are self-employed. The organization provides numerous benefits to its communities, including training
adults for reemployment, promoting community entrepreneurship, supporting women through various programs,
and strengthening both personal and community development in rural areas to reduce heavy migration to nearby
cities. The Foundation has a strong history of collaborating on international projects with the European Union,
the Belgian Government, the Government of Spain, the Region of Lombardy, Italy, and the Canada
Fund, among others.
Through the Marzano Fammi Olio project, the Foundation supported 26 small
olive producers in the area of Maipu, in the Mendoza Province, to
improve their social and economic status. These included 15
olive producers that had formed the cooperative Gold Mine,
in the town of Fray Luis Beltrán, and 11 others that had
formed the Olivares Integrated Group, in the Coquimbito
area.
Unfortunately, the project did not achieve all of its
intended outcomes, as these groups faced numerous
challenges, including coordination problems, extreme
weather conditions and inadequate technical support.
Additionally, the structure proved difficult, as it depended
on the coordinated and complementary involvement of
16
three agencies: the National Institute of Agricultural
Technology (INTA), the Municipality of Maipu and the
Marzano Foundation. However, the main achievement
was the integration of two Gold Mine Cooperative
groups of producers, who received technical assistance
from INTA technicians on a regular basis. They used
agricultural extension work usually performed by
the institution. This was achieved through one of its
programs, the Integrated Olive Program - IOP, that
strengthens small olive producers (PPO) and fosters
horizontal integration and expansion into activities that
advance the production of olive oil and its direct trading.
In addition, 19 producers were provided site visits and
technical training tailored to their needs, which effectively
improved their farming practices.
17
Producers participated in a conference on olive oil
processing and its quality, which was held in the
province of San Juan INTA EEA Pocito and INTA EEA
Junín. They also attended the promotion of regional
products organized by the province of Mendoza in
Buenos Aires.
In 2010, a total of 30,000 kg of olives were
processed, yielding an estimated 5,000 liters of
oil, an industrial output of 16.5%. In that year, 32
farmers processed their olives in factories. In 2009,
50% of the production was sold locally and a smallscale test of direct sales was carried out to final
consumers in Mendoza and Buenos Aires. Both
trading and sales improved in what remained of 2009
and for the production of 2010.
Strategies that olive oil producers developed
Three strategies were considered in the project: (1) improve
and deepen the producers’ and local professional groups’
knowledge of techniques for cultivating and harvesting olives,
as well as working in groups to process olives for olive oil; (2)
horizontally integrate olive producers to collectively produce
olive oil; and (3) promote trading channels to bring the oil to
local and international markets.
Selected strategies
A
Horizontal integration: to promote the integration of beneficiaries into
groups with the specific purpose of becoming olive oil producers.
The intention was to create two groups: each group would consist
of 15 to 20 producers and would be assisted by a technician who,
together with the beneficiaries, would determine the training needs,
cultivation techniques and group work in order to set a common
production strategy with the goal of obtaining high quality olive oil.
integration: the members of the groups would process the
B Vertical
olives into olive oil in an effort to fund a small factory.
of sales channels: develop products to place the oil into
C Promotion
both regional domestic and international export markets.
18
Through participatory processes, it was identified that
many of the olive producers’ problems were associated
with low yields of raw material per unit area, primarily
due to a lack of training and education, as well as
the degree of marginalization, high fragmentation of
small olive producers, and the absence of production
strategies, such as horizontal integration between
producers. The lack of vertical integration and
industrialization, and consequently the lack of added
value meant that the difference in price of Mendoza olive
oil, which is used by brokers and by the industry, did not
reach the small producer. This problem was exacerbated
by the weather-affected olives, which produced lowerquality oil and reduced the sale price, and poor trading
strategies, particularly in foreign markets.
Development process
Horizontally integrated
producers processing
the olive into olive oil.
Provide producers with a technical
assistence from local technicians.
Conducting technical training
sessions for integrated producers.
Equipment and operation of
an olive oil factory.
Organization of training seminars
with technicians.
Development of marketing
channels in the domestic
market.
Development of marketing
channels in foreign markets.
The groups of associate producers
and local professionals, improve
and deepen their knowledge
of techniques of cultivation and
harvesting of olives as well as to
the associated work to produce
olives for oil.
Marketing channels are
promoted to place the oil
in both local and export
market.
19
Consequences
Critical Factors
Cause
Financial
The contribution to INTA technicians
was not covered for some of the project
partners.
Conditions in the international market.
The lack of training and technical assistance to agricultural
producers.
Fluctuation in the price of oil.
Lack of farmers’ financial ability to recover
costs of processed production.
Land acquisition was not consolidated and the project lacked
true sustainability due to inadequate income during the period
in which the product was marketed to the industry.
Planning
Lack of adequate facilities for producers
to establish the manufacturing plant.
Machinery installed in the School of Agricultural Sciences,
National University of Cuyo, so that the line of oil could be
placed in the institution’s Industry area.
Adverse trading
environment
Lack of local development and
international depression in the market
price of premium olive oil.
High-quality oil sold at a lower price and generated less
revenue than anticipated.
Adverse weather conditions.
Decrease in crop production and oil yield.
Environment
20
Diaspora ties
Several factors impeded the impact of the Diaspora in this
project. There were two main barriers: (1) a low level of production
in both volume and quality, which resulted in an insufficient amount
of oil to meet overseas orders; and (2) a lack of designated production
facilities, due to inadequate commitment by the municipality, which made
it impossible for producers to obtain the necessary certifications and export
permits from health authorities.
Main challenges
Despite many challenges, the producers achieved several important outcomes:
Received the Gold Medal Award in 2009 at the CuyolivaTrade Fair, for
excellent quality.
Established and operated an oil-production line within the manufacturing
sector of the School of Agricultural Sciences at the Universidad Nacional
de Cuyo and succeeded in servicing small olive producers.
Established a cooperative.
Maximized use of olive crop and generated additional income by producing
oil from olives that were unfit to be canned due to their small size, or
because they were bruised or very ripe.
Obtained 15% overall performance of Premium oil which, divided can be
placed at a reasonable price in the local market.
More than 70% participating producers processed their olives in
the factory at the end of the project.
21
Lessons learned
One of the factors that can negatively influence the
decision to process olives into olive oil is the producers’
economic situation, as small producers often need to
sell quickly to prevent cash deficits. For future initiatives,
it is recommended that revolving funds be explored to
address this challenge.
In these types of enterprises, producers find it difficult,
even in good times, to sustain themselves without
income during the product trading and transaction
period. In the future, it would be best to consider
these factors during the project’s planning phase
and to suggest solutions in the business plan.
Providing the producers’ with the proper commercial
structure and sales knowledge is critical for successfully
transforming the raw materials into revenue. While
the olive producers had experience in the production
and sale of olives, they initially lacked the knowledge
necessary to produce and market olive oil.
The project began with the assumptions that the
producers’ primary obstacle to production growth
and sustainability was their low income from selling
olives without processing them, and that they could
Although domestic consumption of olive oil in Argentina
is growing, there is currently no “consumer culture”
that appreciates the quality of the product. However,
the consumer segment of “Premium oil” holds great
potential for business development by small farmers, as
this segment is not served by large oil companies.
Heavy dependence on external institutions for the
knowledge and resources necessary for olive oil
production significantly affected the producers’ work
plan and reduced the efficiency of the project. Training
and technical assistance, as well as access to storage
tanks and proper facilities to install machinery, would
enable producers to be more time- and cost- efficient,
and result in better production, a higher-quality product
and increased earnings.
22
not process or market the olives due to low savings
and investment capacity. Therefore, the lack of
capital to purchase or access a machine to produce
the oil appeared to be the obstacle that had to be
overcome; however, during the execution of the
project it was identified that the primary problem
might, in fact, be the poor quality and volume of the
olives.
The development of additional administrative skills
to that of the main agricultural production and that
of the manufactured agriculture production are
processes that take time and require producers to
develop administrative skills. It is advised that future
efforts to strengthen production and trade include
a component focused on building administrative
capacities.
Strategies that the producers of the Fammi Olio
project are developing
Maximizing olive oil
production by processing
olives that do not meet
quality standards for canning.
Marketing and selling
olive oil locally, and thus
taking advantage of an
underserved market.
Introducing their oil to
international markets.
Best practices
One of the project’s primary achievements was the installment of olive oil machinery in the School of Agricultural
Sciences at The National University of Cuyo. The university and its manufacturing center have been traditionally
linked to strengthening small producers in the area, and this installment shows a commitment to serving
small olive producers. This takes some of the burden off of small producers, as the university can ensure
proper maintenance of the equipment, at least in the short- to medium- term future, and enables small olive
producers, the project’s target population, to use the equipment as a catalyst for sustainable growth in the
coming years. This partnership exemplifies a best practice in that it provides access to critical equipment and
reduces the burden on developing producers, thus providing them the flexibility to expand production and to
develop the capacity for more self-sustained maintenance.
Main challenges
Setting up revolving funds for producers to cover the
cost of emergencies during harvest. Producers would
then return the funds following the sale of their oil.
Strengthening producers in terms of business structure,
as well as marketing and selling oil.
Maintaining premium quality given limited resources.
23
Expanding export routes through the increased
production and sale of oil.
Preparing a business plan that considers the
socio-economic factors of local producers and
establishes objectives and actions to strengthen
their production and commercial capacities.
References
Ugo, Marcelo, 2010. Informe Final
de la evaluación realizada al proyecto
Fammi Olio, Programa de Apoyo a
Iniciativas Productivas a Través de
la Diáspora y Entidades Locales de
Hispanics in Philanthropy, Buenos
Aires, Argentina.
Contact information
Fundación Pedro Antonio Marzano
Address
Av. Pte. Roque Sáenz Peña 615 –piso 12 oficina F
Phone: + (54) 11 – 4326 22 98
Email: [email protected] /
[email protected]
Web site: www.fundacionmarzano.org.ar
24
Increase in Goat’s Milk
and Cheese Production
Centro Humanitario Para las Obras y el
Intercambio Cultural Case Study ICE)
The mountain regions of Irapuato and Salamanca, in the
State of Guanajuato, have very similar economic and
social conditions: they are underdeveloped and have
high levels of poverty; they are surrounded by tropical
dry forest ecosystems, with extensive dry seasons, and
have restricted access to water. This limits agricultural
activities. Human needs are not met, encouraging low
quality of living and lack of food staples and jobs. As
a result of this imbalance, these populations, mainly
young men, migrate to the United States where they
traditionally support their families and communities with
remittances.
Notwithstanding these difficult conditions in this region,
goat breeding has grown as a deeply rooted traditional
job with high potential. However, this is performed with
technical and productive deficiencies as well as difficult
survival conditions. In 2001, a group of 11 farmers
formed in the Tamaula community, in the municipality of
Irapuato. They were interested in improving conditions
and establishing better production processes in
collaboration with the Centro Humanitario de Obras
para el Intercambio Cultural y Educativo A.C. (CHOICE).
The group worked for six months. Two years later, this
group was part of a government program called Grupo
Ganadero de Validacion y Transferencia Tecnologìa
(GGAVATT).
CHOICE has been working with various programs in the
Guanajuato region. A technical and financial feasibility
study was carried out in 2003, at the installation of a
milk shop in Tamaula, where milk obtained from goats
was processed. By June 2004, the plan Fortalecimiento
Integral de Comunidades Migrantes (FODICOM) was
26
launched, in coordination with the Acciòn Comunitaria
del Bajio, A.C. Different activities were carried out: from
talks on preventing addictions to establishing a formal
partnership with the Instituto Tecnologico de Estudios
Superiores de Monterrey, the Irapuato campus, to train
producers as entrepreneurs.
Once the projects were developed, a physical location
had to be found, where the collection of goat’s milk and
cheese making, packaging, product control and sales
could be centralized. In September 2005, the dairy
shop was launched, where men collected milk from
farmers and women made cheese every three days,
and all received remuneration for their work.
CHOICE shared the model with other communities,
although it was originally expected to be replicated in
communities in the region. The model was implemented
in two communities: in Tamaula where the model was
launched and in Huaricho, in the region of Salamanca,
another community with high marginalization and the
same social and environmental characteristics. An
important feature of the Huaricho group was that it was
formed by women, whose experience in the management
of goats and cheese making was basic. The model
proposed by CHOICE had two distinctive features, one
was working under a microcredit in-kind scheme, i.e.,
Two groups were legally constituted as a cooperative
and they were certified in the public property records.
Twenty women, from both groups, were trained in
techniques from standardizing and processing cheese
hygienically to techniques for making cheese.
deliver 100 “goats for production and, after a year,
farmers will return the same amount of young goats
plus a payment of 20% interest, also in goats “, giving
a total of 120 goats. The other feature was that the
project was conducted under the specific philosophy of
cooperation. The spirit of collaboration encouraged and
promoted this commitment, the organization, as well as
the decision to take on new risks and build a profitable
production company, whilst always seeking common
good over individual good.
Initially, the project responded to a purely technical
approach of production. During the implementation, it
fully developed. This included the complete management
of the product cycle, the integration of various socioenvironmental and cultural management aspects, as well
as the development of both humans and organization.
This improved the living conditions of the groups.
Two groups were trained to manage goats and goat
pens. Fifteen jobs were generated in the different
phases of production. Twenty-one people were selfemployed and trained in the management, breeding and
reproduction of goats. By working in partnership with
CHOICE, a production model was established in two
The main challenges of this project were: increasing communities, and finally, two workshops were equipped
the production of goat’s milk and cheese at a steady with facilities that met the standards established by the
rate, increasing the number of goats in the herd, Mexican officials for the production of cheese and other
improving herd management practices, standardizing dairy products.
the processing of dairy products, proper handling of
food, cheese equipment and the implementation of a
marketing plan at both local and regional levels.
27
The main problems were: living conditions in the Tamaula and Huaricho communities, the lack
of jobs, poor development opportunities, the lack of investment projects for migrants and the
low level of income for farmers and women that make the cheese as a traditional activity. Most
of the men in these communities migrate to America in search of economic resources that will
help improve the lives of their families, as the bad management of the goats, the low price of
agricultural products and traditional agriculture make it difficult to succeed.
Objectives and expected results
The project established six objectives:
1
2
3
4
5
6
Promote goat breeding as the focal point.
Increase and constantly maintain goat’s milk production during the year.
Standardize the production of goat’s cheese.
Improve the marketing of dairy products.
Generate jobs for the community.
Replicate the model in other rural communities, within the state of Guanajuato.
The expected outcomes of the project consisted of:
1
2
3
4
5
6
Increase the number of goats in the herd.
Maintain milk production throughout the year to produce cheese and sweets.
Produce cheese with the same appearance, hygiene, quality, weight and
packaging.
Wrapped products, brand, label and bar code.
Jobs for men and women within the community.
Establish a microcredit mechanism to pay for the goats: head by head (animal
by animal).
28
Facilitating elements
One element that facilitated the cohesion between the cooperatives was that, when groups were formed to fight
against brucellosis, it allowed people to realize that working together could help them earn higher salaries.
A major contributing factor in learning a more complex vision and scope, for both production activities and their
processes, was exchanging experiences with other organized groups: those located in the northeast mountains of
the state of Puebla, the Reserva Azul, the women of the Maseualsiuamej Mosenyolchicauanij indigenous group, a
group in Atlixco, Puebla and the Instituto Poblano de Readaptacion, A.C. (IPODERAC), whose purpose is to help
improve self-management levels of producer groups.
Critical Factors
Consequences
Cause
Financial
Delay in the management of additional
resources from government programs
and contributing groups.
Delay in the acquisition and installation of infrastructure for the goat
pens and drawing workshops in both dairy cooperatives.
Planning
Difficulty to support four groups due to
organizational circumstances.
Adjustment to the project, reducing the number of communities
supported: only two groups, out of the original four, were supported.
The project’s sustainability and the ability to replicate the model were
based on the marketing of the products. The quality, strengthening
of the production process and marketing had to be ensured before
conversations with new groups.
Deaths of adult and young goats due
to malnutrition in the second year.
Delay in payment and amount of goats from the Tamaula group to the
Huaricho group.
Possibility to replicate the process in other communities decreased.
The estimated time in adapting the process and reproducing the first
herd in Taumala was higher than originally expected.
Commercial context
Technical
Access to markets with less competition increased both production
and orders. Production and sales quantities grew and generated two
types of market.
Change in business destination.
The Comision Federal de Electricidad
did not respond to the request of
installing an electrical outlet in the
dairy production workshop in both
communities.
Water supply and drainage.
Equipment at risk of being damaged by very low voltage. The switch
had to be conducted by staff of the Comision Federal de Electricidad.
Change in the production strategy as a mature cheese was made from
a cooked paste that required no refrigeration.
There is a well in Tamaula that provides good quality water to the
community; however, it will not be exploited by the workshop until it can
be determined how much water it can supply.
There are three water wells in Huaricho for the entire community.
A drainage system for Huaricho is planned: a septic tank system and
oxidation ditch that can recover treated water for irrigation of shrubs
and cactuses.
29
Lessons learned
In Tamaula
After having experienced food shortages due to
a prolonged drought in the area, Tamaula producers
created a fund to support the operating expenses of the
project.
Migrant members returned to their communities
during the implementation of the project. This was due
to external factors such as, the global financial crisis
in 2008 and the lack of job opportunities for migrants
in the United States. The groups established policies
for the integration of new members, and also created
succession strategies for partners within the group. This
was due to the role that younger women in the community
played in improving the production and management of
dairy products in the workshop.
Women who were active in the production process
learned about the products they made as well as the
importance of diversification. This was achieved by
exchanging experiences and allowing them to integrate
themselves in the market with other dairy products as well
as getting involved in other activities such as Asociaciòn
Mexicana de Mujeres y Jòvenes Empresarias (AMMJE),
30
an association that promotes the improvement of
women entrepreneurs.
Ten years ago, the community where the
project was located was ranked as one of
extreme poverty (Class 5). The situation has now
changed, and it is now ranked as a Class 4, in
conditions of poverty alone. In a decade, residents
of Tamaula have improved living conditions, in both
their households and communities. The municipal
government and/or state have installed electricity
and education institutions ranging from preschool
through to a televised high school. They have
also been able to install rain water catchment
systems and tanks to store water for households,
with private support.
In Huaricho
The group adopted technology and made
the organizing of goats timely and orderly, which
is now becoming common practice. This
has allowed them to realize the importance of
keeping records and controlling the production
of milk and goats. They have also learned that
having goats of different ages and conditions
makes their natural reproduction very easy to
implement.
The group has learned to use financial
resources in a responsible way. They have
acquired their own monthly governmental
resources (“Oportunidades”) for food and
supplies needed for the integrated management
of the herd. They have also obtained an
additional loan from the Mexican Caja Popular
where one partner is responsible and the other
pays each month to make his/her payments.
integrate new members, rules of procedure
were established; this raised the company’s
policies that govern inter alia, the requirements
for admission and discharge of the members to
the company. After exchanging experiences,
the members of the cooperative learned that
diversification of products, production and
services allow them to be more competitive
and improve not only their income but also
their quality of life.
The women of the cooperative carved a
niche and created a new identity for themselves
as well as respect within the community and
their family, especially from the men. This
was achieved by empowering themselves
during the implementation of the project.
They are now viewed as entrepreneurs with a
developing project.
After reflecting on the new dynamics
of production processes and the need to
Lessons learned
The project has helped to strengthen the identity of farmers in both locations. They are also
developing and defining their market, according to their own characteristics and capabilities in
both production and operations.
Members of both unions are becoming less dependent on individual institutions, in addition
to getting their own supplies.
Members of the Cooperative of El Huaricho have succeeded in obtaining both economic
resources and supplies on their own, and have managed to obtain local permits to sell at market
places.
With regards to the integrated model of microcredit goats, it is important to include more
items related to planning and the environment.
31
Strategies that producers of goat’s milk
and cheese are developing
Continue with the microcredit
in-kind scheme and end
payments as the planning and
production of goats has been
rethought in both groups and
the model will be replicated
with other groups in the state.
Continue to sell
packaged and labeled
cheese to hotel and
restaurant chains as
well as flea markets,
grocery stores and
general retail.
Continue to develop more sources of
employment through business diversification,
such as the case of Huaricho, where they
intend to establish a grocery store and to sell
Billy goat broth (a local delicacy), as well as a
barbecue and quesadillas although these have
not been covered in the original draft and they
are being considered as additional targets.
Best practices
The Huaricho group has achieved, through dialogue and good communication, a democratic decision-making
process. They have established policies and regulations that contribute to the good relations and good management
of the project.
The Tamaula group has organized and established preventive contingency plans, such as forest fires, which on
one hand demerits quantitative and qualitative production capacity and the other threatens the heritage and life of
the residents of the community.
Strategies have been established to register the management of herds. It has been productive in the cooperatives
and has allowed them to establish production costs, yields and a better understanding of the productive activity
and generate health practices in herds against brucellosis.
By empowering women and developing their capacities to lead in making decisions democratically.
Main challenges
A major challenge
has been the
consolidation
and commercial
sustainability of the
products.
Financial sustainability
by maximizing
infrastructure.
Another challenge is to maintain
a productive group in the long
run and transcend through the
community and to replicate
the process in other groups of
entrepreneurs.
32
Structure a community
savings account that allows
them to not only treat
emergencies, but also invest
in new initiatives.
References
Aguilar, R., M., 2011, Informe de la Evaluación
Final, Proyecto Incremento en la Producción
de Leche de Cabra y Elaboración de
Quesos, Hispanics in Philanthropy, México.
Guadarrama, L., A. 2011, Informe de
consultoría al proyecto Incremento en la
Producción en la Producción de Leche de
Cabra y Elaboración de Quesos, Centro
Humanitario de Obras para el Intercambio
Cultural y Educativo A.C. (CHOICE), Irapuato
Guanajuato, México.
Contact information
Centro Humanitario Para las Obras y el Intercambio Cultural y
Educativo A.C. (CHOICE)
Address
Flandes 287, Colonia Rafael Galván
Irapuato, Guanajuato México
C.P.36544
Phone: 52(462)6269942
Email: [email protected] / [email protected]
Web page: http://www.choicehumanitarian.org/mexico.php
33
Barbecue as a Means for
Economic Development in
Coroneo, Guanajuato
CRECE
Guanajuato A.C.
Case Study
The Municipality of Coroneo, located in the State of
Guanajuato, Mexico, is known for its sheep production,
as well as its traditional barbecue (a local specialty
prepared with sheep’s meat). Current systems of
production mean that sheep producers are generally
able to sustain themselves and their families at no more
than subsistence levels. The conditions of poverty and
marginalization in these communities provoke varying
levels of emigration to both domestic and international
destinations.
In a short time period, the OVICORO group was able to
position itself at a regional level due to good business
practices, both in the integration of its supply chain, and
in the systems of planting, harvesting and storage of
food to feed its livestock consumption, thus reducing
costs and improving performance.
The project’s main goal was to add value to the primary
product—first, by transforming it into a final consumer
product, and second, by marketing it regionally as
barbecue and steaks through the establishment of three
Despite this situation, in 2006, a group of 13 self-managed restaurants. This project was selected as
producers that were part of the Grupo Ganadero de a beneficiary of the program “Promoting Diaspora and
Validación y Transferencia de Tecnología ( GGAVATT , Local Support for Productive Initiatives”.
Livestock Validation and Technology Transfer Group)
joined together and formed the group called OVICORO, The project’s objective is to improve the quality of life for
SPR RL. Their goal was to obtain joint benefits for producers and generate jobs for their families and others
agriculture and livestock activities from government in the region. It is of note that, currently, over half of the
group’s members have at least one child working in the
institutions in the State of Guanajuato.
U.S.
The process of forming and integrating OVICORO
created a strong sense of cohesion among its members,
despite the diversity of member profiles. The producers,
most of whom are farmworkers who owne their own
land and livestock, had extensive experience producing
different crops. In addition, some of them were involved
in commercial activities relating to the sale of prepared
foods and the grocery sector.
To fulfill this goal, the project employed four strategies: the
standardization of nutritional, reproductive and productive
practices in order to better integrate the management of
livestock; the strengthening of the business skills of the
producers, suppliers and women of the community; the
operation of self-managed restaurants to sell barbeques;
and the sustainability and dissemination of the model.
35
Main challenges
CRECE, Guanajuato A.C. is a business consulting firm that conducts various programs at a regional, national and
international level, in the areas of tourism, agriculture, and social and economic development..
Based on diagnostic tools, CRECE has identified the following issues:
The added value of the region’s
natural resources has not been
adequately realized to achieve
commercial development.
Poverty and marginalization impact
the producers’ quality of life.
Local producers view sheep
production as a means of subsistence
rather than a commercial activity.
There is a need to increase production
capacity according to the demand of
regional markets
Local
producers
lack a culture of
entrepreneurialism
Beneficial factors
The project arose out of the collaboration of local producers in the area of Coroneo, the Social Development Secretariat of the Mexican Federal Government (SEDESOL), the Ministry of Agriculture, Livestock, Rural Development,
Fisheries and Food (SAGARPA), the Ministry of Agricultural Development of the State of Guanajuato, the producers
of OVICORO, SPR of R.L., and as coordinator and facilitator, CRECE, Guanajuato, A.C.
CRECE has brought in a wide range of specialists for each area of work. To ensure the project’s integrity, CRECE
incorporated representatives from various disciplines, including administration, accounting, marketing, graphic design and architecture, among others, ensuring the integrity of the project.
36
Critical factor
Consequences
Cause
Lack of municipal infrastructure in
certified slaughterhouses and lack
of interest on the part of producers
in continuing with the initiative .
Diversification of commercial activities,
without achieving commercialization of
steaks.
As the project evolved, priorities
changed to focus on investing
in the completion of the process
area.
Modification of planned activities, including
training workshops on organizational
development, recruitment and selection of
personnel, and the acquisition of a local
store to sell the group’s products.
Planning
Diaspora ties
CRECE, Guanajuato, contacted several hometown
associations in the US to seek their participation in the
project. The result was a collaboration with the Federation
of Guanajuatenses in California, led by migrants from
Guanajuato who were interested in participating in a
project to generate economic opportunities in their
community of origin.
In addition, the President of the Federation of
Guanajuatenses visited the town of Coroneo, where
he trained local producers in improving the production
process. The visit was also an opportunity to share
experiences and ideas, and to reaffirm the Diaspora
associations’ roots in the community as it contributed to
generating employment opportunities for local youth.
The Guanajuato Diaspora associations committed
financial resources to the project, which were used to
purchase purebred cattle for breeding, ensuring the
quality of the product throughout the entire process of
production.
Finally, the Federation of Guanajuatenses committed
to sharing and replicating this model of transnational
collaboration with the goal of enhancing the entrepreneurial
spirit in Guanajuato and, in this way, reducing current
levels of poverty, marginalization, and emigration.
37
Lessons learned
Perfecting Traditions: The development of a handbook
to guide the production process for barbeque,
including “secret local recipes”, to standardize
product quality.
Learning to Learn: Through diverse trainings and
workshops, the group developed both individual
and collective skills, as well expectations for
commercial and administrative growth.
Identification of Local Priorities: The members of the
group prioritized the completion of the process area
for the barbeque.
Assuming New Challenges: The development of
an organizational structure for the operation of the
three restaurants managed by the producers.
Building Skill Sets: Standardization of production
practices among the project’s direct beneficiaries
and regional producers in order to establish a reliable
chain of supply.
Main lessons learned
The group’s cohesion and collective responsibility
for the project were highly influential factors in the
success of the project.
The beneficiaries of the project must also be
its primary agents. The role of the intermediary
executing agency is to support the empowerment
of the group.
It is crucial to continually address the group’s
motivation and cohesion throughout the
implementation period.
38
The individual profiles of the program’s participants
influence their ability to achieve the defined goals.
OVICORO team members generally chose to
assume responsibilities that entailed minimal risks,
a fact which delayed the timely implementation of
the program.
Strategies that producers of
barbecue are developing
Best practices
Establishment of a method of monitoring and
evaluation to achieve the project’s efficiency
Strengthening the supply chain and, managing
training workshops for local producers via
government agencies.
Establishment of a strategic plan for sustainability
Disseminating the business model through the
participation of the Diaspora community in order to
replicate best practices and act as both an example
and an impetus for future joint ventures.
Measuring customer satisfaction through regular
evaluations of food and service quality
Development of a corporate image and identity of
the restaurants.
Improving marketing and advertising strategies in
order to promote the restaurants and foster longterm financial sustainability.
Registering OVICORO’s brandname, DON
BORREGO, with the Mexican Institute of Industrial
Property.
Diversifying sources of income by raising purebred
sheep herds and selling offspring.
Main challenges
with deeplyHelping producers take
1 Breaking
3
5
rooted paradigms and
on an entrepreneurial
ideologies held by project
participants.
2 Working with the group’s 4
resistance to change and
fear of taking on risks for
the collective project.
role.
Exploring new economic
sectors that diverge from
traditional practices.
39
6
Synchronizing the individual activities
of each project participant with
those of the three restaurants.
Achieving the sustainability of
the business model.
Contact information
CRECE Guanajuato, A.C.
Address
Viento 1018
Col. Las Reynas, Irapuato, Gto. Mex.
C.P. 36660
Phone:(462) 63 5 06 78
Email: [email protected] / [email protected]
Web site: http.//www.crecegto.org.mx
40
Organic Bananas: An
Ecosystem Restoration
Project in Azua
Cooperativa de la Federación de
Productores y Campesinos Azuanos Inc.
(COOPFEPROCA) Case study
When local production of tomatoes, the agricultural
mainstay of the Azua Valley in the Dominican Republic,
dropped by 80 percent, an opportunity opened up
to not only reconfigure the region’s productivity but
also to introduce more environmentally-friendly farming
techniques. Such farming with bananas seemed like a
good fit, since it has entailed the use of few agricultural
chemicals since the late ‘80s, and it offers high returns
on the international market.
The goals were set:
Through a novel approach, the Cooperativa de la
Federación de Productores y Campesinos Azuanos,
Inc. (COOPFEPROCA), has worked since 1994 through
district cooperatives, which weigh in on the creation and
improvement of community-level social structures.
project. Although the facility was not established during
the project, land for it has been secured and a request
for support of its construction has been presented to the
Agriculture Ministry.
Increase the organic banana production
Support the commercialization of organic bananas
Monitor and evaluate the project
Since the project started, 92 producers of organic
bananas farm 115 planted hectares (284 acres) that
are in the process of being certified, and 41 hectares
(101 acres) are undergoing preparations to start
Azua Province, where the valley is located, also stands the process. The estimated production stands at 40
out for its high poverty rate, which has turned it into boxes, each weighing 18 kilograms (39.6 pounds)
one of the Dominican Republic’s major sources of out- per hectare each week.
migration of native sons. Consequently, the province
receives private investments through remittances from One proposal called for increasing production through the
those migrants, which fund housing projects and social creation of a plant production facility in order to prepare
services centers.
the land and encourage organic farming within the
The main challenges for members of this cooperative
have been to contribute to improving the quality of life
for small banana farmers and, on the other, to maintain
the sustainability of Azua Valley’s productive ecosystem
through the organic farming of bananas.
An export packaging center, operated by small
producers, was built and equipped. During the
project, 28 producers commercialized 19,145
boxes of 18 kilograms each of conventional (not
certified organic) bananas for the national market.
Their product is also promoted through two internet
websites: www.Bananodominicano.com /
http://
bananoorganicocoofeproca.com/
42
Main concerns
addressed by the project
Main concerns within a
national context
Through the collaborative process, it came to light that
much of the problems actually dated back to prior farming
of the land and the poor agricultural management that
had been largely responsible for low production in those
days. It had led to the farms lying fallow, to Azua Valley
producers falling into a world of economic hurt and other
consequences, such as:
With a local production of 32 boxes of 18 kilos each
per hectare weekly, Dominican farms have a significantly
lower productivity rate than its main competitor countries,
such as Ecuador, Costa Rica and Colombia, which
average close to 56 boxes.
From a production standpoint, there were problems
related to the mismanagement of the plantations and
the lack of technical assistance.
From an economic standpoint, there were problems
related to commercialization mechanisms, the generally
low prices for agricultural produce, and a total lack of
access to financial resources.
The Dominican Republic harvests bananas earmarked for
export from 11,321 hectares (27,975 acres), according
to the Asociación Dominicana de Exportadores de
Banana (Adobanano). Of the total national production,
Valverde Province has 50 percent of the farmland
dedicated for that purpose, while Monte Cristi has 33
percent and Azua and Santiago split the remaining
seven percent.
The priorities identified by the Dominican Republic’s
1,300 producers are: fertilization processes, irrigation,
From a social standpoint, problems included transportation and handling of the fruit.
unemployment in rural communities, small producers
leaving the area and a selloff of farmland, as well as The fruit currently produced in the Azua project area
weakness in the Valley producers’ organization and is the conventionally farmed eating banana, since the
health problems resulting from malnourishment.
process to get them certified as organic is still under
way. Establishment of micro-propagation units has
been proposed and is considered a vital step for any
improvement program. Their purpose would be to obtain
more uniformity in the way the plants grow and in their
shape, among other desirable factors.
The limited access to credit has resulted in low competitive
drive in the country’s banana production sector. Training
and introducing technological innovations in the planting
process and farm maintenance area has been pretty
much nonexistent, which is why, along with technical
support, it draws such great producer interest.
43
Beneficial factors
A fundamental development for getting the project off the ground was the willingness of the co-op
COOPFEPROCA to help organize the Azua Valley producers and to be the legal entity through which the
funding could be channeled.
Project strategies
Facilitate communications and
decision-making between the co-op
and the affiliated organization.
Take on commitments produced
through collaborative planning.
Make small producers aware of the
challenges.
Provide local support for
organic banana farmers to
increase their production
Develop meaningful measurements
to help the small farmer of organic
bananas.
Empower and strengthen
organizational and managerial
capacity.
Collaborate on the design and use of
techniques and instruments.
Promote local development initiatives.
Stakeholders must participate and
share responsibility for monitoring the
project’s development.
Create a common project agenda.
Create a culture of learning, where
everyone gets to consider, exchange
ideas and collectively build.
Regularly scheduled meetings.
Activities are developed through a
collaborative process.
Set up a system for follow up,
evaluation and final audit.l.
Bring small farmers
into the project
44
Type of Critical
Factor
Consequence
Cause
The producers did not get the
expected financing with which to build
the processing center
Financing
It limited the scope of the project.
The financial resources necessary
to carry out export logistics were not
available.
The producers felt uncertainty in not being able to pursue
commercialization of the 155 planted hectares.
Follow Up and
Communications
The local consultant who took care of
following up dropped out of the project
Communication with HIP was seriously hampered.
Planning
The project could not plan the export
logistics.
The process of shipping exports to the United States never got
off the ground, and no export license has been granted.
The logistics of moving the project’s
technical support equipment was not
taken into consideration.
Delays in the project’s technical support efforts
The situation with the local market
being dominated by intermediaries and
the unfair commercialization.
The product was distributed and sold at prices up to 70
percent less than its commercial value. The commercialization
through intermediary enterprises caused economic damages
for the producers, for which COOPFEPROCA ultimately had
to foot the bill.
Adverse Commercial
Context
Higher rates paid by businesses that
commercialize with bananas and have
commercialization niches for fair trade.
Technical
Presence of illnesses, such as black
sigatoka.
45
Some producers deserted the effort to seek better pricing for
their fruit.
Some plantations were excluded.
Diaspora ties
The strategy for coordinators of this project to approach the Dominican Diaspora was undoubtedly on target and
effective. It consisted of calling the directors of the various retail groups that operate in New York City, which is
home to the largest U.S. concentration of Dominicans. A calendar was booked with visits and meetings in their
respective offices with co-op members to show them the project and develop a working relationship from its very
earliest stages.
This kind of approach has turned out to be effective. The ties to the associations that were visited are maintained
through periodic communications with the contacts in each, who have said that they continue to be interested in
buying bananas from project members, once they start exporting.
The main lessons learned
highlight the importance of:
Lessons learned:
Developing the capacity to connect with the Diaspora
is key to generating commercial contacts in the United
States.
Having the producers join a specialized group, which
has legal standing.
Getting the cooperation of the Dominican Diaspora’s
U.S. partners to help with commercialization of the
project’s banana production.
Developing planning capacity to package product at
the producers’ local plants.
Having experience at the local level in
commercialization strategies.
Introducing organic practices to get better prices in
the international market (a box of organically grown
bananas sells for about 46 percent more than
bananas grown by conventional methods).
Creating a business (limited partnership) to take
advantage of the Export Development Law’s incentives,
which can mean a significant savings through deductions
of certain taxes on imported materials that are used for
an export project.
Beginning of the process to obtain fair trade
certification.
Having producers become part of the Clúster de
Banano Orgánico trade group. In addition to increasing
demand for their product, it gives them greater access
to best practices and information that will help them
improve the quality of their fruit.
Getting the Asociación de Productores de Banano
Orgánico and the COOPFEPERATIVA to join the
Dominican agricultural products cluster and become
integrated in the regional network of banana-producing
organizations that work collaboratively to address needs
and aspirations that they have in common.
47
The strategies that the organic banana
producers are developing
Develop and maintain the farming of organic bananas.
Finish construction of the organic banana exports packaging center.
Complete creation of the germplasm center to assure a high quality supply of new
banana plants.
Improve commercialization, targeting ethnic segments of the European and North
American markets.
Establish an organic fertilizer production facility.
Forge stronger ties with the Dominican Diaspora in the United States.
Best practices
The project had a good managerial team, which worked systematically during the
project and carried out the project’s activities in an appropriate manner.
Main challenges
1.
2.
3.
4.
5.
6.
7.
8.
Obtain financing for the project producers.
Increase support for production activities
Get the critical mass of logistical support to oversee and monitor the project
Commercialize the 155 working hectares (383 acres), with a capacity of
178,000 boxes of banana yearly
Maintain the production of those 155 working hectares.
Renew the organic certification
Continue technical support for the producers and their product
Be able to depend on the institutional support of the organic producers
group, Asociación de Productores de Banano Orgánico
48
References
Bautista, B.I., 2010, Línea de Base del Proyecto Orgánico
de Producción de Musáceas Para el Mantenimiento del
Ecosistema Productivo en la Provincia de Azua, Hispanics in
Philanthropy, Santo Domingo, R.D.
Contact information
Estudio de caso Cooperativa de la Federación
de Productores y Campesinos Azuanos Inc.
(COOPFEPROCA)
Address
Calle Bartolomé Olegario Pérez No.141,
Azua, Republica Dominicana
Phone: + (809)-521-3255
Web site: http://www.coopfeproca.org/
49
Capacity Building
for Santiago Rodríguez
Cassava Bread
Producers
Instituto para el Desarrollo
de la Producción
Organizada, Inc.
(INDEPRO) Case Study
50
The main agribusiness in the Dominican Republic has
fallen on increasingly harder times in the past few years.
The $9 million annual production of the cracker-thin and
yucca-based cassava bread is dominated largely by
family-owned businesses and generates 18,000 jobs
a year.
The greatest concentration of the cassava producers
in the Dominican Republic lies in and around the
northwestern province of Santiago Rodríguez. The
number of cassava production sites in that area dropped
from 70 in 2002 to 43 in 2004. The lack of jobs caused
an exodus of adults from the area, some to other parts
of their Caribbean homeland and others to the U.S.
mainland and Puerto Rico. There are 54 production
sites working in that area, and they provide 6,254 direct
jobs. Within that province, most of the cassava bread
is made in the Los Almácigos, Palmarejo and Monción
municipalities.
Some of the main reasons for the remarkable decline in
cassava bread production include a lack of adaptability
and maintenance of the production infrastructure; the
use of obsolete production techniques; a failure to follow
basic sanitation standards, and limited marketing of the
final products.
In providing consulting services to the Asociación
de Productores de Casabe, a producers’ group, the
Instituto para el Desarrollo de la Producción Organizada,
Inc. (INDEPRO) found that there were 43 artisan cassava
bread producers that meet certain criteria. On one
hand, they lacked capitalization, had very low levels of
knowledge and information about the cassava market,
and had infrastructure deficiencies that hampered
marketing of their products.
On the other hand, they had a vast experience in cassava
production, which offered a strong potential for improving
product quality and national and international marketing.
Those production sites are located in the Monción
municipality’s Palmarejo, Las Eneas, Mamoncito,
Asiento Frío, Cacique, Cañada Grande and El Chipero
neighborhoods.
The project consisted of developing the competitive
capacity of 400 cassava producers in the Monción
municipality. It had three goals related to increased
production:
• Provide technical assistance about manufacturing
processes, start using new techniques for downstream
products and put appropriate technology to work
• Strengthen marketing and improve product quality
• Establish good business practices by increasing
quality and institutional capacity of the Asociación de
Productores de Casabe
51
The lynchpin for the project was the development of a collaborative network
among the producers, getting them to move beyond the perspective of
individual, isolated businesses to a collective efficiency grouping concept.
Under that model, the group of businesses and collaborative stakeholders take
on common problems collectively to improve quality and productivity levels in
order to navigate successfully in today’s highly competitive environment.
The cassava producers association (PC) helped its members’ situations by
creating a chain of value that combined production and commercialization and
created the Centro de Apoyo a la Producción de Casabe (CAPC) technical
support center.
The program prepared 15 production spaces away from living quarters
and overseen by a group of 29 property owners and administrative
personnel. A manual on proper food handling and hygienic practices was
prepared. A total of 87 employees in the peeling, sifting, baking and packaging
operations have been trained in these standards.
In terms of creating a collaborative network, five collective efficiency groups
have been formed. They meet regularly, and their work covers 35 production
units. The joint commercialization effort has drawn 65 percent of the
producers to use the Centro de Apoyo a la Producción de Casabe for their
commercialization needs.
The groundwork was laid for plants in the project to prepare for indirect exports,
with 16 percent ready for export production and three already consistently
doing so. A tractor-trailer load of cassava bread has been exported weekly since
early November 2009 to target the New York-New Jersey ethnic Dominican
market. So far, it has generated 150 new jobs, all seasonal because they are
harvest-driven. The project has generated eight new members for the Clúster
Asociación de Productores de Casabe de Monción, which now represents a
roster of 105 producers.
52
Low and uneven quality and productivity
Lack of knowledge about technical specifications for production
Lack of knowledge about marketing and organized commercialization trends
Flat product sales and prices on a downward spiral
High level of reliance on middlemen
Weak organizational capacity and lack of training for producers
Beneficial factors
The producers really wanted the entrepreneurs and trainers to add good production and hygiene practices to their
skill sets and traditional way of production, so that the artisanal products could meet the needs of their market.
The establishment of the Centro de Apoyo a la Producción de Casabe technical support center was important for
putting training and more efficient commercialization techniques within the producers’ reach.
Another important component for development of the project was the identification of two important needs:
production improvements and commercialization upgrades. The identification of these two areas allowed for clear
planning of the steps that would be needed and the expected outcomes.
Strategy and measurement tools
A strategy was formulated through the logical framework methodology to join the production and commercialization
phases. So the two important subcomponents were: Industry Productivity Improvements and Commercialization.
Selected strategies
Revamping of family work spaces to separate dwelling and production areas.
Workshops on food handling and hygiene.
Technical assistance for byproduct utilization and the introduction of spinoff products.
Workshops on business administration and finance for small manufacturing concerns.
Technical support for establishing plant-level quality controls.
Strengthening of the Collective Efficiency Groups to assure sustainability in the progress achieved in the
specific communities.
The project did not complete all of its goals. The main reasons were: a lack of adequate financing, planning,
follow up and communication problems, as well as an adverse market situation, and technical problems. Some
activities were also delayed due to a lack of available resources, rotation of INDEPRO personnel, and environmental
concerns resulting from insufficient timely knowledge of pertinent regulations and procedures.
Diaspora ties
The main contact that this project developed with the Dominican Diaspora resulted from the personal relationship
that the president of the Asociación de Casaberos de Monción producers group had with the then president of the
Asociación de Bodegueros de la Ciudad de Nueva York, a large group of Latino corner market owners. The head
of the market owners’ organization traveled to Monción and met with project producers to find out about their plans.
He promised to provide contacts and follow up. No other networking had produced real commitments by the end
of the project, despite representatives of various other organizations having been contacted and efforts also having
been made to work through institutional channels.
54
Lessons learned
The biggest improvements in cassava bread production were:
15 production spaces were upgraded in strengthening the industry’s productivity.
In the end, it benefitted 33 cassava producers and about 400 workers.
The biggest benefit in improvements to those 15 plants has been their increased
value, enhancing the stake for the owners and their families.
The most important commercialization progress for cassava bread producers has
included:
A commercialization plan and marketing efforts. Once the quality seal of approval is
obtained, there will be a push for creation of a regional brand.
The producers, on their own initiative, decided to participate in the multiline
EXPOCIBAO Fair, which takes place each October. It is the most important trade fair
in the Dominican Republic and draws nearly a half-million people.
A total of 65 percent of the businesses commercialize their products through
the local Centro de Apoyo a la Producción de Casabe technical support center, as a
result of the collaborative cassava bread commercialization project.
The producers association set up an office for the support center.
The most important lessons came from recognizing:
Opportune information about the extent, magnitude and purposes of the projects
and support at the local community level
The need for making direct contacts in the communities to encourage participation
and assure the program’s success
The need for a good communications strategy targeting all project stakeholders,
including among others, administrators, beneficiaries and trainers.
Local groups needing to increase their understanding of what it really takes to
succeed in a project of this size, in technical as well as managerial terms.
The necessity of having a core of businesses with the structural capacity and
practical skills to provide leadership and support to the program participants
55
Best practices
The use of collaborative techniques to identify problems and make decisions was among the program’s strongest
good practices. Another was the design and implementation of manuals and their use in both the management
and technical production areas, which allowed for standardization of processes that had been done in a poorly
organized and sporadic way in the past.
The program also showed the good practice benefits of creating an organization that allows producers to conduct
training and commercialization activities, generating synergies, savings and greater efficiency by doing so.
Main challenges
1.
Get the certified quality seal approved for all of the
project’s businesses
2.
Create a joint commercialization structure, under which
the product has a single uniform price and the focus of
competition is on product quality
3.
Be able to partner with local organizations that have the
institutional strength and some degree of expertise that
will increase the likelihood of project success.
4.
Carry out periodic evaluations to make sure that businesses that were in the project maintain the standards
of quality and hygiene high enough to allow for them to
export their products to other markets.
5.
Coordinate with the U.S. corner market
owners group to set up the storage and
commercialization capacity to make the
process seamless.
6.
Consolidate the Centro de Apoyo a la
Producción de Casabe’s operations to
assure that the product is exported with
sufficient quality to satisfy demand.
References
Bautista, B.I. 2010-2011, Baseline Report
and Final Evaluation for the Santiago
Rodríguez Cassava Production Improvement
Project. Santo Domingo, D.R.: Hispanics in
Philanthropy, 2010-2011.
Contact information
Instituto para el Desarrollo de la Producción Organizada, Inc. (INDEPRO)
Address
Plaza Jasansa, Mod. 6 - b Calle Boy Scout 83
La Joya, Santiago de los Caballeros
República Dominicana
Contact Person: Carlos Peterson
Phone: + (809)-226-0828
Web site: http://www.indepro.org.do/
57
Developed by:
M. Sc. Armando Guadarrama
55 Second Street
Suite 1500
San Francisco, CA, 94105
(415) 837 0427
55 Exchange Place
Suite 402
New York, NY 10005
(646) 602 2105
Blvd. Virreyes 145
2do piso
Col. Lomas de Chapultepec CP11000
México Distrito Federal
(52) 55 55 20 71 68
www.hiponline.org
Hispanics in Philantrhropy 2011

Transnational Diaspora Case Studies_en 1.51 Mb

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