Agricultural producers: differentiation drives access to new markets

San Jose, Costa Rica, December 9, 2011 (IICA). Small-scale bean producers linked to AGROCOOP in Costa Rica and ARSAGRO in Honduras share more than cultivation of this crop on behalf of millions of Central Americans, they also focus on the differentiation of their product in order to achieve greater marketability, a strategy that has allowed them to conquer new markets in their own countries.

The seven organizations that comprise AGROCOOP, with nearly 900 farmers affiliated, has benefitted from the intense campaign undertaken by this consortium so that Costa Rica can become more self-sufficient in its consumption of beans. This work combines a focus on territorial development in the districts of La Cruz, Upala and Los Chiles (in the north of the country) with development of management skills and use of improved seeds.

Field work is also done, indicated Vanessa Solano, legal representative of AGROCOOP, and this has contributed to increasing the sale price and finding new distribution channels, “We are going to sell directly to agricultural fairs, with our own packaging and seal”.

For its part, ARSAGRO (Asociación de Servicios Agropecuarios de Oriente), which groups 800 producers from the Honduran district of El Paraiso, selects and labels a bean under the brand name “Marciano”, for local sale, while also supporting farmers with credit and technical assistance.

According to Jairo Aguilera, president of the association, acting as a bloc and not as individual producers has facilitated a reduction in costs and an increase in profit margins.

Both experiences were described during a videoconference organized by the Central American Initiative for the Linking of Small-Scale Agricultural Producers to Markets, which combines the efforts of the Inter-American Institute for Cooperation on Agriculture (IICA, the Executive Secretariat of the Central American Council on Agriculture (SECAC) and the Regional Unit for Technical Assistance (RUTA).

During the videoconference, which was attended by producers at the IICA offices in Central America and the Dominican Republic, representatives of the World Food Programme (WFP) were also in attendance.

Victor M. Villalobos, Director General of IICA, asserted that this exchange was a part of the support provided by the Institute to promote commercial participation of small agricultural companies. According to Mr. Villalobos, “Raising productivity is good, but this is useless without adequate access to markets”.

Strengthening membership in associations

During the videoconference, the PMA presented some results of its program Purchase for Progress, P4P, in the region, and highlighted the support being provided to ARSAGRO and ASODINA (Guatemala), organizations which it assists with their administrative management and by buying their maize production later.

Blanca Estela Azañon, president of ASODINA (Asociación de Desarrollo Integral Nuevo Almanecer, located in the department of Retalhuleu) indicated that thanks to this technical assistance, the association was able to increase the quality and safety of maize and reduce the links in the agricultural chain.

This association has 100 affiliated farmers.

For Marcelo Nuñez, IICA Specialist in Agribusiness and Marketing, technical cooperation given by international organizations is expected to have a positive impact on the incomes of farmers and on the amount of employment that small-scale agriculture generates. According to Nuñez, “The cases of ARSAGRO, AGROCOOP and ASODINA are examples of coming together for the benefit of all”.

Laura Melo and Ronald Meza, representatives of P4P and RUTA respectively, agreed that there was need to strengthen the technical and managerial capacities of the organizations.

Meza added that there was still need to acquire agricultural insurance and risk management instruments for small farmers, to make them less vulnerable to climate emergencies or emergencies of another nature.

He added that these mechanisms would make them more competitive and would facilitate their entry into new markets.

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