Central Americans share good agribusiness practices related to market access

San José, Costa Rica, August 16, 2011 (IICA). Two organizations in Nicaragua and one in El Salvador shared with producers in Central America and the Dominican Republic their experiences with the implementation of best agribusiness practices designed to improve integration into markets, chain linkages and value added.

The activity was organized by the Central American Initiative for Integrating Small-scale Agricultural Producers into Markets, which is being implemented by the Inter-American Institute for Cooperation on Agriculture (IICA), the Regional Unit for Technical Assistance (RUTA) and the Executive Secretariat of the Central American Agricultural Council (SECAC).

Held in the form of a video conference, the activity provided an opportunity for representatives of two Nicaraguan organizations – the Santa Lucia Producers’ Association (ASOPROL) and NICARAOCOOP – and the Coordinación Cadena de la Miel de El Salvador, which coordinates the honey chain in that country, to explain how they managed to integrate themselves into national and international markets and develop agribusinesses, with producers working as members of a group instead of separately.

Achieving linkages of this kind is one of the objectives of IICA’s “Agribusiness and Commercialization” technical concentration program.

“The Institute is endeavoring to establish effective mechanisms for sharing information and experiences related to market access. This will make it possible to raise agricultural productivity, which, logically, will contribute to rural development,” said IICA’s Director General, Víctor M. Villalobos.

The manager of the Agribusiness and Commercialization Program, Miguel García, explained that the IICA-RUTA-SECAC initiative, which is geared towards small-scale producers and has been under way for more than a year, is designed to strengthen the linkages between agribusinesses and their current and potential markets.

Marcelo Núñez, a specialist with the IICA program, said that information and communication technologies were being used to equip the Central American countries with innovative approaches to issues such as agricultural health, food safety and quality, financial instruments and risk management.

RUTA representative Rónald Meza pointed out that sharing experiences also made it possible to identify ways of improving agricultural institutions in Central America and the Dominican Republic as part of the Central American Strategy for Territorial Rural Development (ECADERT).

Success stories

In Nicaragua, ASOPROL groups together some 1000 bean producers. The farmers receive certified seed and the collection of their harvest is guaranteed, as they have contracts with firms that purchase their production at differentiated prices.

The organization offers its members a series of benefits, including financing, post-harvest services, business advice and technology transfer. It also faces a number of challenges, however. For example, it needs to modernize the varieties of seed used and add value to the beans that it markets – e.g., by selling canned refried beans.

In the same country, NICARAOCOOP operates as a third-level cooperative, i.e., it is an umbrella group of producers’ associations. It specializes in the sale of sesame and honey, especially in the domestic market.

The nearly 2000 members produce certified organic and fair trade sesame, which they export, as well as honey, to the United States, the rest of Central America and the European Union.

As members of a cooperative, the small farmers can afford the costs involved in certification and have been able to diversify markets and sell their products under a single brand name (Vida natural) within Nicaragua, where they target middle and upper-middle income consumers.

Finally, a buying firm called Joya de Cerén is the driving force behind the Coordinación Cadena de la Miel de El Salvador and exercises leadership among producers. The company’s suppliers must meet a series of standards related to aspects such as hygiene, honey moisture, traceability, the absence of chemical residues and the use of safe containers.

The organization’s 320 members also produce queen bees, wooden beekeeping supplies and wax they can sell along with their honey to Joya de Cerén or any other Salvadorian or foreign firm.

For more information, contact:
marcelo.nunez@iica.int

Audio, Spanish only