Ecuador Local Economic Development Program (Prodel) Draft: Cooperative Agreement #518-A-00-08-00002-00 Final Report

ECUADOR LOCAL ECONOMIC DEVELOPMENT PROGRAM (PRODEL) DRAFT
Cooperative Agreement #518-A-00-08-00002-00 Final Report
OCTOBER 2007 - SEPTEMBER 2012 Submitted by: Sarah Mattingly, FIELD-Support LWA, FHI360 Esteban Becerra, Program Manager, ACDI/VOCA Submitted to: Hugo Ramos, USAID/Ecuador
DISCLAIMER The authors views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
Acronym List
AOTR APECAP BID BSC CAF CORPEI CQI CRM CTB ECA ERP ESPE FAPECAFES FDE FEPP FFS FIE FOB FY GOE GPC IICA MAGAP NDB NGO PERSUAP PRODEL Agreement Officer Technical Representative Agro-artisan Association of Ecological Producers of Palanda Inter-American Development Bank Balanced Scorecard Andean Development Corporation Ecuadorian Export and Investments Corporation Coffee Quality Institute Customer Relationship Management Belgian Technical Cooperation Farmer Field School Business Resource Planning Ecuadorian Military Technical University Organic Producers Federation of the South Economic Development Fund Ecuadorian Peoples Progress Fund Farmer Field School Italian Ecuadorian Fund Free on Board Fiscal Year Government of Ecuador Provincial Government of Carchi Interamerican Institute for Agricultural Cooperation Ministry of Agriculture, Livestock & Fisheries National Development Bank Non-Governmental Organization Pesticides Environmental Review and Safe Use Action Plan Ecuador Local Economic Development Program
1
PRODEL FINAL REPORT October 2007 through September 2012
SCAA SIGA TQM UCACNOR UNOCACE USAID WBC
Specialty Coffee of America Association Environmental Information and Management System Total Quality Management Northern Union of Savings and Loan Cooperatives Union of Cacao Farmer Organizations of Ecuador United States Agency for International Development World Barista Championship
TABLE OF CONTENTS
ACKNOWLEDGEMENTS ..................................................................................................... 5 OVERVIEW ..................................................................................................................... 65 EXECUTIVE SUMMARY .................................................................................................... 87 COMPONENT 1: PROMOTE AND STRENGTHEN THE GROWTH AND COMPETITIVENESS OF VALUE CHAINS ............................................................................................................. 149 COMPONENT 2: FOSTER ACCESSIBILITY OF FINANCIAL SERVICIES FOR VALUE CHAIN PARTICIPANTS ............................................................................................................ 5044 COMPONENT 3: MONITORING & EVALUATION ........................................................... 5549 COMPONENT 4: SUBCONTRACTS AND GRANTS ........................................................... 6458 ANNEXES .................................................................................................................... 7266
LIST OF TABLES TABLE 1: PRODEL PARTNERSHIPS 8
TABLE 2: EVOLUTION OF SCORES OF THE TOP 10 ECUADORIAN COFFEES, 2007 2011 1912 TABLE 3: MAJOR RESULTS IN COMPETITIVENESS IMPROVEMENT TABLE 4: TRADE SHOWS AND EVENTS TABLE 5: TRAINING EVENTS 26 TABLE 6: PLANTS PRODUCED IN NURSERIES, BY ANCHOR FIRM AND SECTOR TABLE 7: KNOWLEDGE MANAGEMENT DOCUMENTS TABLE 8: ANCHOR FIRM SUSTAINABILITY INITIATIVES TABLE 9: LOGOS AND CREDIT PRODUCTS 5444 TABLE 10: TOTAL NUMBER OF PRODUCERS THAT ATTENDED THE FINANCIAL LITERACY PROGRAM, BY REGION 5546 TABLE 11: TOTAL NUMBER OF PRODUCERS THAT SUCCESSFULLY COMPLETED THE FINANCIAL LITERACY PROGRAM, TO DATE, BY REGION 5746 TABLE 12: LOAN FUNDS AND NUMBER OF CREDIT OPERATIONS 5747 37 39 34 2215 2114
Formatted: TOC 1
TABLE 13: PRODUCER CREDIT ACCESS AFTER COMPLETING PRODEL FINANCIAL LITERACY COURSE 5947 TABLE 14: FIRMS, BY VALUE CHAIN 6049 TABLE 15: NUMBER OF TRAINED FAMILIES PER ANCHOR FIRM 6150 TABLE 16: NUMBER OF HECTARES OF NEW AND IMPROVED LICIT CROPS PER ANCHOR FIRM 6251 TABLE 17: NUMBER OF NEW FULL TIME EQUIVALENT JOBS PER ANCHOR FIRM TO DATE ERROR! BOOKMARK NOT DEFINED.52 TABLE 18: PRODEL I KEY INDICATOR ACHIEVEMENTS (REPORTED FOR 20 ANCHOR FIRMS) 53 TABLE 19: PRODEL II KEY INDICATOR ACHIEVEMENTS (REPORTED FOR 24 ANCHOR FIRMS) 6754 TABLE 20: PRODEL CUMULATIVE KEY INDICATOR ACHIEVEMENTS BOOKMARK NOT DEFINED.55 ERROR!
LIST OF GRAPHS GRAPH 1: PRODEL AREAS OF INFLUENCE 179
GRAPH 2: RELATIVE ANCHOR FIRM COMPETITIVENESS AND INCLUSION 2418 GRAPH 3: PARAMETERS OF AN EFFECTIVELY ORGANIZED ENTERPRISE 2520 GRAPH 4: BUSINESS STRENGTHENING PROCESS 2721
GRAPH 5: MODEL FOR ASSOCIATIVE BUSINESS MANAGEMENT 2722 GRAPH 6: QLIK VIEW SCREEN 49
GRAPH 7: PRODEL BENEFICIARIES 5952 GRAPH 8: ENVIRONMENTAL INFORMATION AND MANAGEMENT SYSTEM (SIGA) GRAPH 9: EDF GRANTS QUARTERLY CASH FLOW AS OF AUGUST 31, 2012 6660 6357
ACKNOWLEDGEMENTS PRODEL is profoundly grateful to the many persons and organizations connected with the 38 anchor firms across all of PRODELs value chains. PRODEL is also indebted to the public institutions including Plan Ecuador and our local government partners and private entities with whith whome the projectwe collaboratedch we coordinated our intervention. Among these institutions, we owe a special thanks to the United States Agency for International Development (USAID) for making this Program possible to the benefit of some of the most marginalized populations in Ecuador. PRODEL also appreciatewould also like to acknowledge the support from USAID AOTR Hugo Ramos, for championing the programs value chain approach and engagement throughout the project.
Formatted: Heading 1
Project Overview Ecuador has been a major staging and transit country of illegal drugs destined for the United States. Four hundred miles of porous border with Colombia facilitate illicit cross-border activities. The northern border region (NBR) has become a safe-haven for illegal armed groups and criminal organizations. The main security threat in the NBR is trafficking of weapons, explosives, drugs, coca paste, and precursor chemicals by the FARC and Colombian drug trafficking organizations (DTOs). Under this scenario, the lack of viable economic opportunities and basic social services makes people, and especially youth and young adults, particularly susceptible to illicit activities. Youth and young adults in the NBR are often being intimidated by the FARC and DTOs and thereby recruited to work for them. These organizations, almost exclusively Colombian, also recruit the disaffected youth of the indigenous and Afro-Ecuadorian communities that are presently at risk. The USAID Local Business Development project (PRODEL) commenced on November 30, 2007 with an aim to to impede the spread of the narco-economy into Ecuador by building higher-value economic opportunities for nothern and southern border communities. The PRODEL program worked to generate permanent employment and increase income through a value chain strengthening lead firm model. This model basically consists of identifying an effective market demand for a product or set of related products, identifying the value chain for the product and, within this chain, selecting a leading, anchor firm linked backwards to poor rural suppliers/producers (micro entrepreneurs) and forwards with buyers, local as well as foreign, and terminal markets. Using growth-oriented enterprises (anchor firms) as drivers, the PRODEL team strengthened the ability of micro, small and medium-size businesses and the local business environment in which they operate to take advantage of domestic and export market opportunities, thus absorbing more Ecuadorians into the formal economy and raising income levels and standards of living for program beneficiaries.
Formatted: Font: (Default) +Body (Calibri), Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Default Formatted: Font: (Default) +Body (Calibri) Formatted: Font: (Default) +Body (Calibri), Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Spanish (Ecuador)
This final report was prepared as a deliverable under the Ecuador Local Economic Development Program (PRODEL), Cooperative Agreement #518-A-00-08-00002-00. This was a joint activity of FHI Development 360 (FHI360, which on June 30, 2011 acquired the assets and programs of AED), ACDI/VOCA under the Financial Integration, Economic Leveraging, Broad-Based Dissemination and Support Leader with Associates (FIELD-Support LWA). The FIELD-Support LWA is a cooperative agreement awarded by the United States Agency for International Development (USAID). It was awarded to AED and a consortium of partners, and has novated to FHI360, to advance the practice of microenterprise development and microfinance and to assist USAID Missions in designing and implementing innovative, integrated, market-based approaches to sustainable economic growth with poverty reduction.
Executive Summary
Over the last five years PRODEL worked on building the capacity of the private sector to drive continual improvement in select value chains. The Program worked within the following value chains: cacao, coffee, processed vegetables, processed fruits, grains, and fish. Major activities included1: Promotion of International and National Market Linkages Developing training modules and delivering TOTs on Doing Business in the US and Trade
Comment [A1]: We need to summarize all the major results upfront. We should not be highlighting our close of project event in the executive summary.
Fair Promotion Best Practices for PROECUADOR. Working and planning with PROECUADOR & Ministry of Tourism to develop joint-activities to
promote an Ecuadorian national brand. coffee Enhance Lead Firm Upgrading Improving business management capacity and generating business plans of new and existing Facilitating international and domestic market analysis reports for cacao, chocolate and
anchor firms. Co-financing process and norms for target certification standards for new and existing
anchor firms Strengthening Producer Groups Delivery of Farmer Field School TOTs to Lead Firm Technicians Expanding plant material propagation for PRODEL anchor firms and producer groups.
Fostering Access and Availability of Financial Services

1
Designing and delivering f financial literacy trainings for farmers
PRODEL published its results in a digital book that can be accessed through the following link:
http://es.scribd.com/doc/102939976/Resultados-de-la-gestion-del-Programa-de-Desarrollo-Economico-LocalPRODEL
Conducting trainings and workshops in agricultural financing and micro-factoring for
financial institutions.
After five years of leading a successful, inclusive, and equitable initiative to promote local economic development in the border regions of Ecuador, PRODEL presented and celebrated its impact with supporters and partners on August 16, 2012 during an emotional ceremony at
Paul Guenette, Senior Vicepresident of ACDI/VOCA, receives a comemorative plaque from Jose Mayo, President of the FAPECAFES anchor firm, in appreciation for the support from PRODEL. Also present are Kelly Keehan, Obie Dienier, Meredith Jones, and the PRODEL team.
the Metropolitan Cultural Center in Quito. The presentation showcased the many ways in which PRODEL furthered the objectives of the Ecuadorian
Governments National Plan for the Good Life. Esteban Becerra, PRODELs Director, was proud to highlight the Programs successful completion. With the help of PRODEL partners, the Program helped accelerate economic development in Ecuador, generating permanent employment, increasing income, and improving the quality of life of more than 22,000 families in Ecuadors border regions. By strengthening productive agricultural value chains through 38 anchor firms, PRODEL helped create 17,909 new jobs, increase family income by $????? And increase farmer group sales to anchor firms by $10,217,072. PRODEL was able to surpass all of it performance monitoring targets indicated in the below table2. tpromoted associative commerce, strengthened local capacities, and helped develop local human capital.
LOP INDICATOR Number of Urban and Rural Anchor Firms (1)
2
Comment [A2]: How many people are in a family? How many people is 22,000 families? Comment [A3]: According to the below table we worked with 44 anchor firms.
LOP Actual Nov 2007 Mar 2012 44

Formatted Table
TARGET S 49
PRODEL did not meet its target number of anchor firms due to a reduction in USAID funding in the last year o of the program.
PRODEL FINAL REPORT October 2007 through September 2012 9
Formatted: English (U.S.)
Number of Municipalities assisted and that contributed to improve the business environment Number of beneficiary families (2) Number of hectares of new and improved licit crops (2) Number of new full time jobs (2) Increase in family (household) income from targeted sectors ($) Increase in Farmer Groups sales to Anchor Firms (5) Increase in anchor firms sales ($)(6) Number of GOE/NGO Technicians Trained
10
12
21,600 13,600 10,800 75% $ 969,132 $51,100,780 300
22,820 29,998 17,909 $ 1,100 11,186,204 181,646,534 507

Comment [A4]: This figure does not seem right?
The main challenge that the PRODEL value chains faced was the sub-optimal productivity of the crops in rural areas. To address this challenge, PRODEL worked with a team of field technicians and applied the Farmer Field School (FFS) methodology to improve local crop management techniques and plant more than 4 million plants in collective nurseries. As a result, PRODEL helped improve 29,998 hectares, increasing productivity and, by extension, increasing household incomes by more than 70% among producers linked to the cacao, coffee, grains, herbs, processed fruit and vegetables, and artisan fishing value chains.
Results The PRODEL project was able to achieved the following value chain specific results over the last five years:
Coffee Assisted Ecuador to enter into the US specialty coffee market through the continuous
participation in the SCAA event with a national pavilion and strategic market positioning support.
10
Stimulated a Ecuadorian coffee consumer culture of specialty coffee through a continuous
improvement process of coffee quality and cupping events. The project also helped establish the first ever internationally certified judges, cuppers, and baristas. For the first time coffee samples of producer organizations reached international standards
on the golden cup contests. Producers increased their average productivity from 500 to 1,500 kgs/ha in partnership with
lead anchor firms. Established more than 3 million plants on community nurseries
Cocoa Assisted Ecuador to enter the US specialty food market through continuous participation at
the Fancy Food show with a national pavilion Generated a chocolate consumer culture through a continuous improvement process of
chocolate quality and tasting events Established good manufacturing practices in chocolate processing facilities Established 541,000 coffee plants in community nurseries in partnership with lead anchor
firms and producer organizations Producers increased an average productivity from 5 to 11 quintals/Ha
Cereals and Grains Improved postharvest process efficiency through technology investment in QuinuaQuinoa,
Beans, and Chocho Increased sales and exports from $170,000 to more than $2,000,000. Established good manufacture practices in QuinuaQuinoa processing facilities
11
Developed local capacities of cereal and grain producer group organizations in the northern
border regions of Ecuador Improved productivity and technical management of golden berry crops
Fruit & Vegetable Processing Improved quality and productivity of golden berry Formalized agreements with exporters on transparent and beneficial conditions for
producers Improved organic technical management of Quinoa and Bean crops Assisted exporters in earning international awards for their innovative packaging and
products such as dried golden berries and dried vegetable chips.
Fish Improved the efficiency of the cold chain processes for several lead anchor firms. Improved good manufacture practices in fishery facilities for handling fish and sea food Developed an Artisanal Fisheries Training Manual Developed local capacities of artisanal fishery producer group organizations in the northern
border regions of Ecuador
Aromatic Herbs tea. The guayusa processing company, Runa LLC, won the award for best herbal teas in the US. Improved productivity and technical management of guayusa crops, an indigenous herbal
These products were featured at Fancy Foods Show 2012, with the support of PRODEL.
Dairy Improved logistics of operations by incorporating innovative transport technologies (GPS) to
enhance distribution channels. Improved good manufacture practices in dairy facilities Improved milk process efficiency through investment in new technologies.
Key Lessons Learned
Comment [A5]: Summarize the most important lessons learned from the value chain competitiveness and financial services section here.
13
COMPONENT 1: Promote and Strengthen the Growth and Competitiveness of Value Chains 1.1 Outcomes of PRODELs exit strategy During the final stage of the Program, the PRODEL team implemented its exit strategy focusing on transferring knowledge, experience, methods, and tools to strategic economic development actors in Ecuador. The PRODEL team built the capacity of local stakeholders to strengthen the competitiveness and growth of its partner value chains. Specifically, PRODEL coordinated with Local and National Government, trade promotion agencies, financial cooperative and unions and other apex bodies to continue the value chain development work with anchor firms post-project and to increase their capacity to respond to market changes and opportunities. These results are explained in more detail below. Private Sector Ownership PRODEL focused on building the capacity of the private sector to drive continual value chain upgrades over the long-term. The Program worked with the same value chains selected in December 2009, including cacao, coffee, processed vegetables, processed fruits, grains, and fish & seafood, while increasing the number of partner anchor firms and producer groups within each chain. PRODEL developed new partnerships, and supported existing ones, with diverse actors, including national and local governments, and a range of private sector actors who had the interest and capacity to leverage necessary resources to give continuity to the processes initiated by PRODEL. Building Capacity of Support Markets - Strengthening the capacity of financial service providers to deliver needed financial services and technical and business support services was critical in assisting anchor firms, producers and producer groups to grow their businesses and respond to changes in the market far beyond the life of the program. PRODEL worked through and built the capacity of local service providers to deliver training and technical assistance to value chain actors. Productivity and Impact Assessment The PRODEL team developed a study with a local university to deliver a comprehensive productivity and impact assessment of PRODELs work in key value chains. Productivity has been identified as one of the major constraints to value chain competitiveness in Ecuador. As a result, the PRODEL team led efforts focused on
PRODEL FINAL REPORT October 2007 through September 2012 14 Comment [A10]: Which university? Comment [A7]: This paragraph is very vague. We need more specifics that demonstrate private sector ownership. Can we discuss how many firms will continue to source from the NB regions? Other new business practices that PRODEL anchor firms will continue post-project? What evidence do we have that the private sector has taken over ownership of our model? Comment [A8]: Can we be more specific about how we strengthened financial service providers? Comment [A9]: What other local service providers did we support besides financial service providers? Comment [A6]: Didnt we select our value chains in 2007?
productivity enhancement and yield improvement. PRODEL disseminated this experience through Government entities and Ecuadorian universities. 1.1.1 Strategic Allies The PRODEL team coordinated with Local Governments in the border regions of Ecuador to support the promotion of sustainable economic development initiatives. As a consequence, PRODEL helped facilitate linkages between anchor firms and producer group representatives, and encouraged the establishment of alliances in each region. PRODEL focused its exit strategy on strengthening strategic alliances with public and private entities that have the capacity and interest in using the momentum generated by PRODEL initiatives. PRODEL promoted the value chain approach through workshops and trainings to disseminate Program tools and methodology among targeted technicians from both the public and private sector. The following table lists entities with whom
Representatives of the local governments, USAID, CARE, AACRI, and PRODEL in the inauguration of the lab in Intag, Ibarra
Comment [A11]: How? Comment [A12]: I dont see the link. How did coordinating with local governments lead to facilitating linkages between anchor firms and producer groups? Comment [A13]: Are alliances different than linkages?
PRODEL partnered and transferred the value chain model and the corresponding knowledge and technology.
Table 1: PRODEL Partnerships

Entity Ministry of Foreign Relations (MMRREE), Proecuador Role Promote exports and investments Joint Initiatives with PRODEL Events to promote Ecuadorian products, including SCAA, Golden Cup, Fancy Food Show, the Chocolate Salon, the Exporters Convention; Doing Business in the US and Canada; Promoting local consumer culture; Branding Stimulation Plan for Cacao and Coffee Sectors; nursery construction; and technical assistance for Farmer Field Schools. Social Responsibility labels, company ethics
Ministry of Agriculture, Livestock, and Fisheries (MAGAP) Coordinating Ministry of Production, Employment, and Competitiveness (MCPEC) Ministry of Industries and Productivity (MIPRO)
Develop Agriculture, Livestock & Fisheries sectors in Ecuador Coordinate Production, Employment, & Competitiveness Strengthen Production and Industries
Campaigns to promote Ecuadorian products and a consumer culture for high

15
Impact Consultants TEC ESPE Private Technical University of Loja (UTPL) Luis Vargas Torres University Provincial Government of Carchi Provincial Government of Esmeraldas Provincial Government of Sucumbos Ecuadorian Peoples Progress Fund (FEPP) Savings and Loan Union of the North (UCACNOR) Rural Financial Network Fedexpor National Finance Corporation
Export Services Academia Academia Academia Academia Promote local production Promote local production Promote local production
quality Ecuadorian products Doing Business in the US Trade Manual Training firms and producer groups in Strategic Management Training firms and producer groups in Marketing Improving coffee quality Research and development for increasing productivity in cacao Promote production and products in Carchi Promote production and products in Esmeraldas Promote production and products in Sucumbos Innovations in Organizational Strengthening Innovations in Financial Literacy Innovations in Financial Literacy Market innovations, Exporters Convention Training in the use and application of the 4 + Plus Tool
Comment [A14]: Can you spell these acronyms out? TEC and ESPE?
Comment [A15]: How?
Comment [A16]: What is this ? Comment [A17]: Be more specific on all the financial literacy examples.
Financial Services Financial Services Promote exports Financial Services
1.21.2 Value Chain Growth and Competitiveness Over the last five years PRODEL focused on building the capacity of the private sector to drive continual improvement in select value chains. PRODEL used the value chain model as the centerpiece of its intervention strategy. The value chain model links marginalized local producers with leading anchor firms, which contributes to more inclusive business practices that also stimulate the flow of goods to market. PRODEL also focused on improving the competitiveness of the firms by increasing productivity as well as the quality of production. This model is grounded in more equitable and transparent business practices that facilitate fairer prices and contracts. In this context, the PRODEL team identified critical constraints that affected each value chain. In collaboration with local partners, PRODEL addressed these constraints by developing innovative processes, technologies, teams, and governance mechanisms that to increased competitiveness by helping the value chains add value to their final products. For example, PRODEL worked with anchor firms to produce chocolate bars, gourmet coffee, granola, dried fruit, processed vegetables, and goat cheese. These new products can now be
Comment [A18]: I would change this to section 1.2. It does not seem to fit under 1.1 Exit Strategy.
Comment [A19]: Could you put together a small text box summarizing our VC and our identified constraints. Comment [A20]: ?
16
found in local and international markets. Such innovations helped the value chains accelerate growth in a sustainable way. The following image shows PRODELs areas of influence and the value chains and related anchor firms that PRODEL supported in Ecuador.
Graph 1: PRODEL Areas of Influence
1.2.11.2.1 International and National Market Development 1.1.2.1.1 Promoted market development and National Consumer Culture in Ecuador The PRODEL team worked closely with ProEcuador to cultivate a consumer culture for the higher quality value chain products as a way to penetrate new national and international markets. The efforts paid off, especially for the cacao and coffee value chains. Currently, Ecuadorian specialty coffees and chocolate celebrate greater recognition on the international market than ever before.
Comment [A23]: Do we have any evidence of this or statistics or journalist stories to back this statement up? Comment [A21]: This is too many degrees on our numbering. Lets keep it to 3 (1.1.1) max. I would delete this. Comment [A22]: How?
1.1.2.1.2 Improved Competitiveness and National Consumer Culture for Ecuadorian Coffee
PRODELs intervention had a significantly positive impact on the coffee value chain. The PRODEL field technicians made critical efforts to improve the quality of coffee production with local producers. As a result, high altitude coffee producers working with PRODEL began meeting international coffee quality standards for the first time in Ecuadorian history. In the 2011 Golden Cup National Coffee Competition, 67 of the 80 samples received international-level scores; PRODEL had supported 8 of the 10 top finalists. Also for the first time in Ecuadorian its history, Ecuador now has internationally certified coffee judges, tasters, and baristas due, in large part, to PRODELs assistance.
Tasting Ecuadorian coffee and awarding prizes at the Golden Cup National Coffee Competition
The partnership between PRODEL and the Coffee Quality Institute (CQI) was critical in this process. The following section describes the ways in which PRODEL and CQI worked together to cultivate a consumer culture for high quality Ecuadorian coffee. Q Grader Certification - CQI consultant KC OKeefe gave make-up tests to the cuppers that did not pass the first Q Grader training in September 2010. This enabled Ecuador to prepare better for upcoming harvests and competitions as well as review the lab needs that were assessed in the initial training. Barista Courses and Preparation for World Barist Championships (WBC) Involvement - CQI used a SCAA-certified volunteer, Rukiat DelRue, to train and select national baristas in Quito and Guayaquil and prepare them using World Barista Championship (WBC)WBC standards. Roasting and Coffee Shops CQI, in coordination with PRODEL, improved the knowledge within Ecuadors coffee industry of the importance of quality services and training to
Comment [A25]: How many? Comment [A24]: How many?
increase local consumption of the fine coffees produced in-country. CQI provided trainings on roasting and preparation of specialty coffees, improving local marketing of Ecuadorian coffee, teaching brewing techniques, and in-country retailing possibilities through coffee shops, hotels and restaurants serving high quality Ecuador coffees. CQIs efforts gave the beneficiaries the basic techniques and additional skills to offer diverse coffee-based products to their customers, promoted the consumption of high quality and sustainable Ecuadorian coffee and, improved the international reputation of Ecuadorian coffee.
Assistance for the Golden Cup Competition - The PRODEL team helped promote a consumer culture for high quality Ecuadorian coffee primarily through the Golden Cup National Coffee Competition. A look at the scores of the top 10 qualifiers for the best Ecuadorian coffee reflects the significant improvement in the quality of Ecuadorian coffee during PRODELs intervention (2007-2011) (see Table 3). CQI provided technical direction and credibility to the organization for the annual cupping competition and guided the logistics and up-front planning needed to carry out a successful and credible national coffee competition using SCAA protocols and standards. Table 2: Evolution of Scores of the Top 10 Ecuadorian Coffees, 2007 - 2011
Scores for the top 10 Ecuadorian Coffees from the Golden Cup Competition, 2007 - 2011 GOLDEN CUP GOLDEN CUP GOLDEN CUP GOLDEN CUP GOLDEN CUP N 2007 2008 2009 2010 2011 1 82 82,58 84,55 86,72 84,85 2 3 4 5 6 7 8 9 10 80 78,67 75,83 75,5 74,92 70,83 70,33 67,17 65,5 81,68 80,85 79,43 76,88 76,13 74,88 74,55 73,15 (Disqualified) 83,4 82,85 82,65 82,4 81,75 81,3 81,2 80,5 79,6 84,31 84,25 83,83 82,79 82,76 82,4 82,38 82,15 81,74 83,65 83,355 83,35 82,75 82,7 82,5 82,25 82,15 82,1
Comment [A26]: Hard to tell when we dont have any sense of scale? Are the competitors scored on a scale of 1 to 100? What are the scores of Ecuadors competitors such as Colobmbia?
19
1.1.2.1.32.2 Improved Competitiveness and National Consumer Culture for Ecuadorian Cacao PRODEL used the following strategy to promote a consumer culture for Ecuadorian cacao:
Increase productivity of plantations producing the national fino de aroma cacao
Stage 1.- PRODEL provided technicialtechnical assistance to cacao farmers that focused on farming practices that would increase and sustain plantation profitability, including: a) training in high yielding grafting practices, b) identifying useful local materials, c) setting up clonal gardens, d) nursery certification, e) increasing crop density, f) replacing materials susceptible to plagues, and, g) rejuvenating unproductive plots. Stage 2.- Improve cacao quality by: a) promoting best practices in post-harvest crop management, b) promoting and disseminating industry standards, c) certifying and standardizing collection and storage facilities, d) ensuring variety separation, e) training and certifying tasters, f) supporting events to promote Ecuadorian cacao production, and g) informing Ecuadorian producers of quality demands by foreign markets. Stage 3.- PRODEL helped develop artisan products for the local and international markets, including: a) improving local infrastructure for artisan production, b) hosting events to cultivate a consumer culture for high quality cacao-based products, including the Chocolate Hall, Ecuador Cultura Gourmet, and Aromas del Ecuador, and c) invest in scalable private ventures. Stage 4.- To position Ecuador on the global market as a premier cacao and chocolate producing country, PRODEL: a) developed marketing strategies, b) supported anchor firms in participating in local and international trade shows (FFS, ISM, ANUGA, BIOFACH, Russia), c) coordinated the participation of chocolate producers in local and regional events, d) developed promotional materials, and e) incorporated TICs in the firms communications strategies.
Comment [A27]: I dont see much here that focuses on a national consumer culture for cacao. Can you expand on this. Comment [A28]: Explain the importance of focusing on fino de aroma coffee production. Comment [A29]: What do you mean by artisan products in Stage 3? Is this small scale niche production?
Improve quality of Fino de Aroma Cacao
Increase supply of products with added value
Develop and implement communications and marketing strategies
This strategy, focused on strengthening the value chains byand developing new market linkages and, enablinged the anchor firms to take greater advantage of the new market opportunities. that the market offered. The anchor firms that added value to their products grew and saw an increase in the demand for their raw goods. To generate greater demand for their products, the anchor firms focused their investments in the following areas: Continuous participation in the Ecuadorian pavilion at the main trade shows in the US in
20
Comment [A30]: We need some statistics here? This is too general.
Comment [A31]: This table should go in the
...
Comment [A32]: Results need to be much more ... Formatted Formatted ... ...
order to penetrate the US specialty food market. Engaged in an intentional process to improve chocolate quality, which included hosting and participating in tasting events. Established good manufacturing practices in chocolate processing facilities.
Comment [A33]: Do we have any M&E data for ... Formatted Formatted Formatted Comment [A34]: I assume this was for the Formatted Formatted ... ... ... ... ... ...
1.1.2.1.42.3 Non-conventional Value Chains The PRODEL team had the foresight to select non-conventional value chains that used traditional Ecuadorian crops, such as lupine beans (chocho), Andean Gooseberry (uvilla), guayusa, quinoa, and native fruits, including soursop (guanbana) and Andean blackberries (mora). These crops are generally sold on the local and national market and offer greater possibilities for increasing household incomes than the conventional crops in Ecuador. The following table outlines the main improvements in competitiveness of other more conventional value chains. Table 3: Major results in competitiveness improvement
Value Chain Major results in competitiveness improvement Improved postharvest process efficiency through technology investment in Quinoa, Beans, and Chocho Increased sales and exports from a base line of $170,000 to more than Cereals and $2,000,000. Established good manufacture practices in Quinoa processing facilities Grains Developed local capacities of cereal and grain producer group organizations in the northern border regions of Ecuador Improved productivity and technical management of golden berry crops Improved quality and productivity of golden berry Formalized agreements with exporters on transparent and beneficial conditions Fruit & for producers Vegetable Improved organic technical management of Quinoa and Bean crops Processing Assisted exporters in earning international awards for their innovative packaging and products such as dried golden berries and dried vegetable chips. Improved the efficiency of the cold chain processes for several lead anchor firms. Improved good manufacture practices in fishery facilities for handling fish and sea food Fish Developed an Artisanal Fisheries Training Manual Developed local capacities of artisanal fishery producer group organizations in the northern border regions of Ecuador Improved productivity and technical management of guayusa crops, an indigenous herbal tea. Aromatic The guayusa processing company, Runa LLC, won the award for best herbal Herbs teas in the US. These products were featured at Fancy Foods Show 2012, with the support of PRODEL.
21
Comment [A35]: Is this a certification? What did ... Comment [A36]: How many? Formatted Formatted Formatted Formatted Formatted ... ... ... ... ...
Comment [A37]: This is mentioned twice.By ... Formatted Formatted Comment [A38]: How many? What did this Formatted Formatted Formatted Comment [A39]: Leading to what? Formatted Formatted Comment [A40]: Which ones? Formatted Formatted Comment [A41]: Which ones? Formatted Formatted Comment [A42]: Leading to what? Formatted Formatted Formatted Comment [A43]: For use by whom? Formatted Formatted Comment [A44]: Leading to what? Formatted Formatted Formatted Formatted Formatted ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Dairy
Improved logistics of operations by incorporating innovative transport technologies (GPS) to enhance distribution channels. Improved good manufacture practices in dairy facilities Improved milk process efficiency through investment in new technologies.
Formatted Comment [A45]: Results need to be more specific Formatted: Font: Arial, 10 pt Formatted: Font: Arial, 10 pt
...
The producer associations and anchor firms promoted their products locally through a partnership with the Fino de Aroma anchor firm. Fino de Aroma has its own tasting and show room for gourmet Ecuadorian products, called Galera Ecuador, located in Quitos primary tourist center.
Formatted Formatted Comment [A46]: This paragraph seems out of place?
... ...
Comment [A47]: Has this resulted in anything? Since we worked a lot with Procuador it would be good to have some thoughtful narrative on how ... Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt Comment [A48]: If this is the first time we are ... Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
1.1.32.4 Trade Fair Promotion Capacity Building PRODEL partnered with ProEcuador to promote national and international events and train anchor firm representatives. PRODEL shared documents regarding its existing experience with the Doing Business in the US and Canada with ProEcuador. As a result of PRODELs intervention, for the first time in history, Ecuador participated as a national pavilion in some of the most demanding international trade shows, including the Fancy Food Show and SCAA. The following table includes both international and domestic trade shows where PRODEL worked together with government entities to organize Ecuadorian national pavilions and company stands: Table 4: Trade Shows and Events
Event CHOCOFEST Chrystal Palace Expoalimentar Quito Convention Center Ecuador Calidad de Origen BioFach 2009 PRODEL Partner IMAGCOM, ESCOFFEE, APROCA ESCOFFEE SubjectResultsPRODEL Activities Presentation and promotion of Ecuadorian chocolate and cacao Stand with products to promote ESCOFFEE in this food fair Offer and promote products from 7 anchor firms to the Ecuadorian Commercial Attachs World Organic Trade Fair Venue / Date Guayaquil, Ecuador. November 2008 Quito, Ecuador. December 2008 Quito, Ecuador. February 2009 Duration 3 Days
Formatted Formatted Formatted Formatted Formatted
4 Days
Formatted Formatted Formatted
Ministry of Foreign Relationss, CORPEI and Grupo La Favorita COFINA and ESCOFFEE ESCOFFEE
1 Day
SCAA Exposition 2009
Coffee Market Development
Nremberg, Germany. February 2009 Atlanta, Georgia April 2009
4 Days
Formatted Formatted
4 Days
Formatted Formatted Formatted Formatted
22
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Expo Gourmet 2009 Good Life Fair 2010
ESCOFFEE Ecuadorian Central Government
Gourmet Products Opportunities to market and sell products directly to buyers, including the national Government. Promote cocoa products, and celebrateing the central role of this crop in the culture of Esmeraldas PRODEL Value Chain Market Development Ecuadorian flower trade show. Fino de Aroma publicized their cacao and coffee powders to both national and international attendees Food and Drink Hall
Guayaquil. June 2009 Cotacachi, Ecuador. May 2010 Esmeraldas, Ecuador. June 2010 New York. July 2010 Quito, Ecuador. October 2010.
4 Days 2 Days
2010 Cacao Fair
Fancy Food Show EXPOFLOR
Provincial and Municipal Esmeraldas Governments PROECUADOR Fino de Aroma
3 Days
5 Days 4 Days
Formatted Formatted Formatted Formatted Formatted Formatted Formatted
2010 SABE Trade Show First International Congress with Aroma of Cacao Tourism and Agricultural Fair Santo Domingo de los Tschilas (Ecuador SCAA Exposition Chocolate Salon (2011)
CAFECOM
CORPEI, MIPRO, MCPEC, USAID
INALPROCES
Promote a consumer culture for national products and the competitiveness of Ecuadorian cacao producers Trade show for agricultural products and tourism services.
Cuenca, Ecuador. October 2010. Guayaquil, Ecuador. October 2010. Santo Domingo de los Tschilas (Ecuador). October 2010. Houston, Texas April-May 2011 Quito. May 2011
2 Days
Formatted
Comment [A49]: ? How about :increase access ...
3 Days
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
3 Days
PROECUADOR French-Ecuadorian Chamber, Fedexport, Pacari Chocolates, and the Catholic University PROECUADOR PROECUADOR
Coffee Market Development (Ecuador Specialty Coffee) Attracting the attention of diverse actors within Ecuador
5 Days 3 Days
Formatted Formatted Formatted Formatted Formatted Formatted
Fancy Food Show Aromas of Ecuador
PRODEL Value Chain Market Development Coffee, cacao and derivatives. 10 PRODEL anchor firms participated. Coffee Market Development
Washington, D.C. July 2011 Guayaquil, Ecuador November 2011 Portland, Oregon April 2012 Quito, Ecuador June 2012 Washington, D.C. July 2012
5 Days 4 Days
Formatted Formatted Formatted Formatted Formatted Formatted
SCAA Exposition Chocolate Golden Bar Fancy Food Show
PROECUADOR
5 Days
Ministry of Patrimony PROECUADOR
Cacao Local Market Development PRODEL Value Chain Market Development
3 Days 5 Days
23
Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted
1.2.51.4 Upgrading Anchor Firms One of the underlying success factors of the Program was the competitive selection of value chains and anchor firms. The PRODEL team developed a selection tool that assessed diverse competitiveness variables. Once the tool proved to be effective at identifying high potential value chains and anchor firms, PRODEL transferred it to the Ministry of Agriculture, Livestock, and Fisheries (MAGAP) as well as to Savings and Loan Cooperatives. The following graph shows the outcome of the selection process: the firms are positioned within four quadrants that reflect the degree of competitiveness and inclusion that each firm is expected to have. The firms that land in the top right quadrant are those that are shown to be most competitive; those that show a larger circle are expected to be able to incorporate a greater number of local producers. The firms that are in the other quadrants with smaller circles are assumed to be less competitive and less inclusive, respectively.
Graph 2: Relative Anchor Firm Competitiveness and Inclusion
Comment [A51]: What are the categories on the x and y axises? This chart is hard to read since the font is so small
1.1.4.1 Selected Anchor Firms PRODEL selected the firms that scored the highest along four main criteria: management capacity, market development potential, degree of inclusion of producers from the border regions, and compliance with business ethics (as established and required by the Ecuadorian Government). The following graph shows the areas of influence of both PRODEL I and PRODEL II firms.
24
1.1.4.2 Improved Business Management Capacity of stakeholdersAnchor Firms The PRODEL team facilitated a number of Business Planning workshops for value chain stakeholders. During these events, the PRODEL team identified critical deficiencies in the firms managerial and administrative capacities. As a result, the Program began to train the firms and producers to use the 4 Plus Financial and Business Planning Tool. The 4 Plus Tool was developed at the beginning of PRODEL and integratesd business planning concepts that helped the firms improve their internal organization and management systems. Due to the overwhelming success that PRODEL had with the 4 Plus Tool, a wide range of economic development actors including public institutions, universities, and local governments organized training events for their own personnel. The following image illustrates the main criteria for a well-organized and managed enterprise.
Graph 3: Parameters of an effectively organized enterprise
Comment [A53]: This is not a useful graph. Comment [A52]: More information on our investment in 4 Plus tool would be good since we used it so much and it was well received. How was it first conceived, how did we develop it, how many people and anchor firms were trained with it?
25
El negocio est organizado de una manera que facilita que todos desempeen con xito su trabajo.
Formatted: Font: Not Bold, Font color: Auto
There is a sound corporate governance.
The management team has skills and qualities required.
The support structure is appropiate for the business.
1.1.4.3 Business Strengthening Process Working with the anchor firms and producer organizations to strengthen their business practices not only contributed to the continuous improvement of critical business indicators, but it also helped develop local capacities. The PRODEL business strengthening process used quantitative data to assess whether the firm or organization met the four central criteria listed above. In the first phase, PRODEL looked to see whether the firm or organization had a business focus, including financial reports, an organizational structure, and internal rules and regulations. In the second phase, the firm or organization adopted a basic management model, designing and incorporating a strategic, financial, commercial, operational, and business plan. During the third phase, the enterprise was expected to promote an internal culture toward continual improvement and results-focused decisionmaking processes. In the final stage, the firm or organization had to leverage that new culture to identify opportunities for greater efficiency, competitive advantages, and sustainable success. PRODELs intervention was focused on phases 1 and 2: developing local capacities and systems that would position the firms to move on to phases 3 and 4 under their own management. PRODEL used the Qlickview platform to monitor the progress of the firms and organizations throughout the four stages of the business strengthening process. Qlickview used a series of
Comment [A54]: This is the same thing as improved business management capacity above. I would not have a separate title for this paragraph or just get rid of the numbered section.
Comment [A55]: Do we have an example of how firms improved on these indicators?
26
stoplights to indicate the enterprises progress toward the end goal, as shown in the following image.
Graph 4: Qlickview Business Strengthening Process monitoring screen
Comment [A56]: I would delete the below image. Its hard to read and understand for people not familir with the project or who cannot speak Spanish.
1.1.4.4 Applying the business management model To carry out the business strengthening process, PRODEL trained facilitators from two wellrespected Ecuadorian entities the Ecuadorian Peoples Progress Fund (FEPP) and the Catholic University of Ecuador, Esmeraldas (PUCESE) to lead the trainings with the anchor firms and producer organizations. The facilitators used the following Associative Business Management model to structure their trainings.
Graph 5: PRODEL Model for Associative Business Management Strenghtening
Comment [A57]: What does associative business management ?
27
Strategic assesment
Product portfolio analysis
Value proposition
(BSC) Strategic Plan Strategic Operative Plan Income outcome forecast Business Plan
Investmen Plan and working capital
Cash Flow and Financial Plan
Sensibility analysis (Scenarios)
30% and 20%Approximately 25% of the Economic Development Fund (EDF) were was earmarked for Business Management strengthening in PRODEL I (30%) and II (20%), respectively. This included, specifically, improving the management of producer associations and anchor firms in the following ways: Strategic Management The cornerstone of the business model is the Strategic Plan. PRODEL and the facilitators used the Balanced Scorecard (BSC) as the main tool to define objectives, indicators, and goals along four axes: commercial, financial, operational, and internal (continuous learning). These elements were linked to the vision and strategic orientation of each entity. PRODEL, together with FEPP and PUCESE, used this model to lead more than 50 workshops with diverse value chain stakeholders. Operational Management Some entities used their EDF funds to improve their operational efficiency. In many of these cases, small investments in new technology or
28
equipment generated significant operational savings and efficiency gains that strengthened the overall production process. For example, quinoa, bean, and lupine bean producer organizations used EDF funding to acquire machines that facilitated the post-harvest threshing process, which not only made that stage more efficient, but also improved the quality of the final product. The lupine bean growers, specifically, adopted technology used by small-scale soybean growers in Brazil. The new equipment reduced the amount of time and waste associated with the post-harvest handling process: one hour with the threshing machine replaced 16 working days and reduced bean losses from 15% to nearly zero. The following pictures show the difference between the manual and mechanic threshing process for quinoa production. The threshing machine that was purchased through the EDF has the capacity to process 30 quintals (100 kg) per hour.
Threshing quinoa by hand (left) and with machines (right) acquired through the PRODEL Economic Development Fund
Fish producer organizations saw similar savings through low cost investments in local technology. Using local technology and innovations, PRODEL fishing partners insulated their fishing boats in order to meet higher standards for cold chain management. These investments helped minimize product losses and save gas on travel. For example, a fisherman no longer had to return to the port every day to unload his catch; with the newly insulated boats he could stay out at sea for up to three days. PRODEL provided funding to the San Pablo Cooperative and UCOOPANE that enabled them to insulate their fishing infrastructure, as shown in the following photos.
Boats from the San Pablo Cooperative, Esmeraldas, insulated using local technology.
Some of PRODELs producer partners had infrastructure or facilities that did not meet basic sanitary or quality control standards. The following photos show the collection and storage site belonging to the AAPSME Organization, where this was the case, prior to PRODELs intervention.
The AAPSME collection and storage site, before and after PRODELs intervention.
Commercial Management The most important variable for ensuring the sustainability of the value chain model is the relationship between producer organizations and firms and the market. It is critical that the value chain has access to a stable flow of buyers. Therefore, PRODEL leveraged the EDF to strengthen the commercial management of partner anchor firms. In close collaboration with ProEcuador, PRODEL helped anchor firms participate in
Comment [A58]: I am not sure I understand the difference between operational and commercial management
30
strategic trade shows and events, as well as to cultivate a consumer culture for the firms high quality, socially responsible Ecuadorian products. One of the most appreciated services that PRODEL provided anchor firms was the product portfolio analysis based on a tool developed by McKinsey. This tool compares the market share of a set of products or services with its respective contribution margin to determine an enterprises strategic positioning in a given market. With this tool, the firms could see which products were generating or consuming the most resources, and, by extension, decide where to invest their efforts. Using this tool, the anchor firm, Mondel, for example, was able to identify and focus its investments in the 30 products out of the original 80 that would generate the greatest profit. Financial Management Through FEPP and PUCESE, PRODEL worked with firms to analyze their financial statements and assess their financial management model, taking into account projections for income and expenses, investment plans, operational capital, cash flow, financial planning, and scenario-based sensitivity analyses. Internal Management Another important contribution from the Program was its focus on developing local capacities and aptitudes for stronger internal organization and associative business practices.
Comment [A59]: Could you come up with a better name for this heading or build it into the above paragraphs.
Training with the Monterrey Technological Institute
31
To this end, PRODEL made significant investments in training its partners. Not only did the PRODEL team facilitate a number of training events, but the Program also partnered with two higher education institutions the Monterrey Technological Institute and the ESPE University to host a certification program on Strategic Business Management and a Masters program in Marketing, respectively, for representatives of PRODEL anchor firms and producer associations. These training spaces also helped strengthen horizontal linkages among the different value chain stakeholders. The following table mentions the main training events that PRODEL hosted since 2009. Table 5: Training events
Event Financial Services Training for PRODEL Farmers (2009) Seminars to Disseminate PRODEL Research Results and Training Programs to Local Government Technicians and CEDETS/ADETS Diploma in Strategic Business Management, for Anchor Firm and Producer Group Representatives (Jan Jun 2009) Economic Perspectives for 2009 and Marketing Tools during and theEconomic Crisis, for Anchor Firm and Producer Group Representatives (Jan2009) Workshop on the Internal Tax System, for Anchor Firm and Producer Group Representatives (Feb 2009) Dissemination of the Value Chain Model, for 60 female producers from partner producer Venue Northern and Southern Border Locations Northern and Southern Border Locations Subject Value Chain Financing, Financial Literacy, Access to Financial Services for Farmers Duration Participants
Comment [A60]: It would be good if you could organize these events by thematic topics since there are so many (ie: Trade Promotion, Financial Services etc..) Also since this table is so long I would recommend placing it an annex in the final report. Formatted: Font: (Default) Arial, 10 pt Formatted Formatted Formatted Formatted ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
4 Days
400
Local Capacity Building
2 Days
100
Quito, Monterrey Technical Institute
Strategic Administration, Financial Analyses, Marketing and Sales, Operations, Organizational Management, and a final module of Business Simulations
Formatted Formatted
6 Months
70
Quito
Economic Projections and Marketing Advice
1 Day
45
Quito
Updates on the Ecuadorian Tax System
1 Day
60
Formatted Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted
... ... ... ...
Lago Agrio (Northern Border)
Formatted
Value Chain Model
1 Day
60
Formatted Formatted
32
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
associations (Feb 2009) Standardization of technical recommendations for coffee production, for field technicians. Coorganized with COFENAC, GTZ, and FAPECAFES (Mar2009) Corporate Governance and PRODEL, for anchor firm representatives (Mar2009) MAGAP - MIPRO Ministry of Industries and Productivity of Ecuador (2009) Second binational course to train coffee tasters, for field technicians associated with FAPECAFES and other firms from Northern Peru (Jul 2009) Informative workshop on Plan Ecuador, USAID, PIDEM and PRODEL (Aug 2009) Seminar on Innovative Ideas for Competitive and Sustainable Tourism, for PRODEL anchor firm representatives (Aug 2009) Workshop for Coffee Value Chain stakeholders (Sept 2009) 24 Informative Workshops on accessing credit through the National Development Bank (2009) Doing Business in the United States (2 training series) (2010-2011) Value Chain Financing
Vilcabamba Loja
New and improved techniques for growing and handling coffee
Formatted
2 Days
25
Quito
Introduction to corporate governance and renewing the partnership with PRODEL Training on topics such as competitiveness, value chains, business plans.
1 Day
34
Business management training Loja Private Technical University of Loja (Southern Border)
Formatted
2 Days
50
Introduction to coffee tasting
3 Days
25
Quito
Informative workshop to align work plans among Plan Ecuador, USAID, PIDEM and PRODEL Developing an alternative strategy for penetrating the national hotel chain, restaurants, and tourism establishments
Formatted
1 Day
34
Quito
1 Day
20
Guayaquil
Foreign trade, productivity, quality, and financing
2 Days
26
Northern and Southern Border Regions
Formatted
Accessing and managing NDB loans
1 Day each
Aprox. 1000
Quito Puerto
Legal requirements associated with contracts with US businesses. Other requirements. Accessing financial services,
1 Day each 1 Day
Formatted
36 67
33
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
(Jul-2010)
Francisco de Orellana
2010 Golden Cup National Coffee Competition (Oct 2010) Value Chain Workshop with representatives from the Provincial Government of Carchi (Oct-2010) Financial Services for Value Chain Stakeholders (Nov2010) 2 Workshops on Controlling the African Snail in Esmeraldas (Nov and Dec 2010) Training of Trainers workshop (Dec-2010) Doing Business in Canada (Jan-2011) Workshop for Integrated Management of the Coffee Berry Borer ( Feb -2011) First International Certification of Coffee Tasters (Feb-2011) Masters degree in Business Administration for Anchor Firm and Producer Group Representatives ESPE. (2011-2012) Barista Workshops (2) (Apr-2011) Workshop on coffee roasting (Apr-2011) Cacao Grafting Workshop (May-2011) Preparation for businesses to participate in the Fancy Food Show, PROECUADOR (May2011) Workshops (2) on integrated soil management and
Quito
including financing for value chain stakeholders National campaign to promote high quality specialty Ecuadorian coffee in the national and world marketplaces Applying Value Chain concepts, methods, and tools
1 Day
Aprox. 600
Tulcn
4 Days
36
Quito
Value chains stakeholders access to credit
Formatted
1 Day
72
Formatted Formatted
Esmeraldas
Controlling the African Snail Plague PRODEL financial literacy program Legal requirements associated with contracts with Canada businesses. Other requirements and opportunities. Alternative practices for monitoring and controlling the Coffee Berry Borer pest International certification training for coffee tasters
2 Days each 2 Days
Formatted
135
Formatted Formatted
Loja
20
Quito
1 Day
56
VilcabambaLoja
3 Days
40
Quito Quito Buenos Aires (Argentina) Quito Guayaquil Quito Joya de los Sachas, Orellana Quito Guayaquil Manta Loja Zamora
3 Days
18
Business Administration
2 Years
21
Formatted Formatted
Preparation and service of coffee-based drinks Coffee roasting techniques Cacao grafting techniques
2 Days each 1 Day 2 Days
Formatted
43 33 25
Prepare anchor firms for participation in the Fancy Food Show Soil management techniques and pest control for coffee plantations
Formatted
2 Days
35
2 Days each
24
34
Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
biological pest control for coffee plantations (MayJun 2011) Developing Business Plans and Strengthening Business using the PRODEL 4 Plus Tool (Apr-2012) Developing Business Plans and Strengthening Business using the PRODEL 4 Plus Tool (Apr-2012) Value Chains: A Model for Economic Development (Apr-2012)
Esmeraldas
Use of 4 Plus in development of business plans and strategic analysis. PUCESE students and technicians. Use of 4 Plus in development of business plans and strategic analysis. For MAGAP technicians. Value chains as an instrument for local economic development. For professors at the Ecuadorian Agrarian University Entrepreneurs had direct access to PRODEL tools, like the 4 Plus, and expert advice about how to improve their business competitiveness, the value chain approach, and how to strengthen business networks Training technicians in the Municipality of Los Andes (Carchi Province) in the Farmer Field School (FFS) Methodology Prepare 13 companies for participation in the Fancy Food Show Use of 4 Plus in development of business plans and strategic analysis. Use of anchor firm and subsector selection tools. For Carchi Provincial Government field technicians. Use of 4 Plus in development of business plans and strategic analysis. For technicians and enterprise promoters from the MCPECEMPRENDECUADOR Use of 4 Plus in development of business plans and strategic analysis. For technicians and enterprise promoters from the MCPECEMPRENDECUADOR
Formatted
2 Days
28
Quito
2 Days
42
Guayaquil
1 Days
27
Speed coaching worshop (May-2012)
Quito
1 Days
10
Transfer of Farmer Field School (FFS) methodologies (May2012) Preparation for businesses to participate in the Fancy Food Show, PROECUADOR (May2012) Developing Business Plans using the 4 Plus tool, and subsectors and anchor firm selection (Jun-2012) Developing business plans and strengthening enterprises, using the 4 Plus Tool (Jul 2012)
Los Andes, Carchi
5 Days
24
Quito Washington, USA
1 Day each
26
Tulcn
2 Days
21
Guayaquil
2 Days
23
Developing business plans and strengthening enterprises, using the 4 Plus Tool (Jul 2012)
Quito
2 Days
24
35
Developing business plans and strengthening enterprises, using the 4 Plus Tool (Jul 2012) Developing business plans and strengthening enterprises, using the 4 Plus Tool (Aug 2012)
Quito
Use of 4 Plus in development of business plans and strategic analysis. For technicians from local governments in the northern border region and PROMUNI Use of 4 Plus in development of business plans and strategic analysis. For regional MAGAP technicians.
Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto
2 Days
25
Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt
Guayaquil
3 Days
35
Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt
1.1.5 Strengthen Producers and Producer Groups The following sections describe the main progress to date to increase the competitiveness and strengthen the market linkages of selected value chainsfor producers.
Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto
1.1.5.1 Training of Trainers PRODEL used the Farmer Field School (FFS) methodology to ensure the local adoption of best practices and technologies among producer groups. Through the FFS, PRODEL trained 133 field technicians (90 linked to anchor firms and 43 linked to public institutions or nongovernmental organizations (NGOs)). The anchor firm field technicians had to pass the course in order to be hired for the position. The overwhelming success of the FFS initiative generated interest and buy-in among a wide range of public and private institutions, which integrated the methodology into their own programs. These institutions included: Local NGOs.- Sun Mountain, FEPP, the Interamerican Institute for Agricultural Cooperation (IICA), the Italian-Ecuadorian Fund (FIE), and Fundacin Maquipucuna. Public entities. MAGAP and Autonomous Governments from the Provinces of Santo Domingo de los Tschilas, Los Ros, Carchi, Esmeraldas and Pichincha. Universities.- Luis Vargas Torres and PUCESE.
Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt Formatted: Font: (Default) Arial, 10 pt Comment [A61]: You dont need to number these Comment [A62]: Which course? Comment [A63]: Can you provide a little more context here. Did we train these organizations on our FFS methodology, Hand over our manuals to them? Or did they just start copying our training methods on their own?
1.1.5.2 Technical Assistance and Improving Productivity
Comment [A64]: What were these farmers trained in? Technical Assistance workshop is not very specific.
36
Technical Assistance Workshop, Ecocacao, Esmeraldas, 2008
PRODEL provided technical assistance through a participatory, experiential process, in which the farmers developed new practices by applying those them in situ. 23 PRODEL II anchor firms hired 65 field technicians to facilitate the FFS. They taught farmers to use integrated crop management, promoted the use of agricultural best practices, strengthened producer organizations, improved channels of communication, and established commercial linkages based on high quality production. Overall, PRODEL helped form 427 FFS reaching 7,850 farmers. The rest of the producers that benefited from PRODELs training interventions did so outside of the FFS. 1.1.5.3 Use of Microbiological Agents (Biocatalization) Through training workshops and technical assistance, PRODEL promoted the use of beneficial and native microorganisms to increase productivity. At the same time, PRODEL worked closely with the PRODEL I anchor firm, by working with AACRI, to produce and market specific microorganisms for other producer groups and anchor firms. In Esmeraldas, the PRODEL team trained 50 field technicians from anchor firms and other public and private entities to use biocatalization as an innovation in integrated soil management. PRODEL carried out this event in coordination with the Luis Vargas University in Esmeraldas Province.
Comment [A70]: What is biocatilization. Explain? Comment [A68]: by promoting integrated pest management ? is that what we are saying here? Comment [A69]: Spell out? Comment [A67]: I would delete this unless we elaborate on the types of trainings and number of producers we supported. Its too vague as is. Comment [A66]: Do the FFS still function with the anchor firms? Comment [A65]: ? rephrase
37
Workshop on Innovations in Integrated Soil Management for cacao production, Mtile Esmeraldas, June 2011.
1.1.5.4 Mitigating Impacts of the African Giant Snail (Achatina flica) After verifying the presence of the African Giant Snail in cacao farms throughout Esmeraldas, PRODEL worked with MAGAP in Esmeraldas to train field technicians to monitor and control this devastating pest. They also focused on developing and implementing an early alert warning system with the public agricultural control office Agrocalidad to facilitate an efficient response to outbreaks in the region. Through workshops and communications materials, PRODEL and MAGAP-Esmeraldas successfully trained 134 field technicians from 32 local and national institutions in monitoring and trapping techniques to control the African Giant Snail. 1.1.5.5 Plant production in nurseries In collaboration with coffee, cacao, and guayusa anchor firms, and with the help of technicians, PRODEL has generated the production of 4,221,700 plants. High yielding plants enabled the producers to establish new plantations with greater genetic and productive potential. Specifically, PRODEL achieved the following results: 3,575,700 new coffee plants grown and replanted in
Comment [A71]: So has this resulted in a decrease in snails?
CAFECOM, Vivero de Caf, Las Lajas El Oro. Noviembre 2010
CAFECOM, Coffee Nursery, Las Lajas El Oro. November 2010
agroforestry plots that helped conserve natural resources while increasing household incomes; 541,000 new cacao plants grown and transplanted by partner firms; and 105,000 new guayusa plants grown by the Runa Tarpuna anchor firm and transplanted to the farms of indigenous beneficiaries in the Napo Province.
SAN CARLOS, Cacao Nursery, Joya de los Sachas Orellana. October 2010
39
Table 6: Plants produced in nurseries, by anchor firm and sector
Comment [A72]: This table is better as an annex.
Anchor Firm FAPECAFES CAFECOM GRUPPO SALINAS EL CAF FINO DE AROMA CAF MINERVA HOJA VERDE SWEET&COFFEE GRUPPO SALINAS UNOCACE COFINA ECUACOCOA SAN CARLOS ECOCAF UROCAL RUNA TARPUNA
Crop Coffee Coffee Coffee Coffee Coffee Coffee Coffee Coffee Coffee Cacao Cacao Cacao Cacao Cacao Cacao Cacao Cacao Guayusa Guayusa
Region Loja Province Cariamanga, EL Airo Zaruma Sucumbos Las Lajas Orellana and Loja Puyango, Celica, Paltas Paltas, Calvas El Oro El Oro El Oro / Esmeraldas / Sucumbos Esmeraldas Orellana El Oro El Oro Napo
Plants Produced 570 200 220 000 150 000 1 200 000 773 000 500 000 110 500 52 000 3 575 700 15 000 20 000 205 000 130 000 70 000 57 000 44 000 541 000 105 000 105 000 4 221 700
TOTAL NUMBER OF PLANTS PRODUCED IN NURSERIES
1.1.5.6 Controlling the Coffee Berry Borer At the end of 2010, PRODEL responded to alarming reports of infestations of the Coffee Berry Borer pest in the coffee growing regions of Loja Province in Southern Ecuador. The pest was threatening the productivity and quality of the high altitude specialty coffee. PRODEL developed and implemented a strategy to train local field technicians linked to the affected anchor firms in Integrated Pest Management systems designed specifically for the Coffee Berry Borer. As a result, the anchor firms built and set up more than 2000 artisan
40
traps to monitor and control the pest, which helped reduce related losses from 64% to 4.9% by the end of 2011. In collaboration with the anchor firm, FAPECAFES, and MAGAP, PRODEL documented the experience in a Manual on Managing the Coffee Berry Borer and distributed 2,000 copies to coffee growers in the Southern Border region.
Comment [A73]: Good!
1.1.5.7 Training Local Cacao Grafting Experts To increase the productivity of unproductive cacao trees, PRODEL trained a 85 local producers to train other farmers in grafting techniques. These local grafting experts used sprigs from highly productive supertrees to recuperate rehabilitate trees that were no longer producing optimal quantities of cacao. To train the local grafting experts, PRODEL held three regional workshops with anchor firms and local public institutions. 1.1.5.8 Coffee and Cacao Productivity PRODEL carried out a study on the effects of specific cultural practices on the productivity of coffee and cacao. The study helped the PRODEL team determine where to focus the technical assistance provided through the Farmer Field Schools (FFS). The PRODEL team worked with local field technicians to carry out a random sample of 1506 farmers, representing 20.65% of all coffee and cacao producers associated with the Program (as of September 2011). PRODEL partnered with the ESPE University to analyze the data. A
Comment [A75]: I would move this all under lessons learned around productivity of coffee and cocao. These are good lessons learned. Comment [A74]: Do we know if these experts trained other farmers? Do we know how many super trees were planted?
Workshop to train local grafting experts in Orellana Province
41
detailed report of the results can be found in Annex 2. The main conclusions from the study include: Pruned coffee and cacao plantations produce more than non-pruned plantations. Chemical and organic fertilizers have a similar effect in coffee and cacao productivity; therefore, organic fertilizer can replace chemicals without a negative impact on productivity. Coffee and cacao plantations that use efficient microorganisms are more productive than those without. Shaded coffee and cacao plantations are more productive than those without shade. Arabicabiga coffee was most productive on plantations with plant densities between 1000-2000 and 3000-4000 plants per hectare. Meanwhile, Robusta coffee production is higher in plantations with less than 1,111 plants/ha. Cacao production is higher in plantations with more than 1,111 plants/ha. Cacao plantations where chemical weed control is applied with scythes are more productive than those where weed control was applied manually. In coffee plantations all weed control methods had a similar effect on productivity. Coffee and cacao productivity in 2011 was higher than in 2008, 2009 and 2010 due to the efficient and timely technical recommendations on how and when to use appropriate management techniques. Pruning, soil fertilization, weed control, application of microorganisms, and shade management help increase productivity of both coffee and cacao.
Comment [A77]: All of this is repeated from above Comment [A76]: Scythes or sprayers? Scythe is a tool to cut high grass
1.1.6 Knowledge Management 1.1.6.1 Training Manuals to Improve Production and Quality Working with several MAGAP departments, including the Undersecretary of Fisheries, the Department of Innovation, and the Project for the Reactivation of Ecuadorian Coffee, the Program produced the following technical tools to be used in MAGAP training processes Artisan Fishing Manual, Methodological Trainers Guide
42
FFS Manual for Coffee Producers, Methodological Trainers Guide Coffee Berry Borer Monitoring and Management Booklet
Comment [A78]: Are these also all available on the PRODEL website? Formatted: Font: 12 pt, English (U.S.) Formatted Formatted: Font: (Default) Arial, Font color: Auto, Spanish (Ecuador) Comment [A79]: It would be better to just combine these two colums and put the title of each document Formatted: Font: (Default) Arial, Font color: Auto Formatted: Font: (Default) Arial, Bold, English (U.S.) ...
Table 7: Knowledge Management Documents The following are the main Knowledge Management pieces developed by the PRODEL team and that were transferred mainly to Universities, MAGAP, MCPEC and Financial entities:
Document Description Fisheries Farmer Field School ManualThis manual gathers the PRODEL experience in the fishery value chain
Content
Final user
Fishery Manual. It includes exercises using the FFS methodology Environment Fishery processes Cold Chain assurance Security Training exercises
MAGAP, SRP. GPE. PUCESE Fishery cooperatives CTB
Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted: Font: (Default) Arial, Font color: Auto
... ... ... ... ... ... ... ... ... ... ... ...
Formatted: Font: (Default) Arial, Bold, English (U.S.)
This manual gathers the PRODEL experience in the Coffee value chain
Coffee farmer field school methodology, it includes: Crop management Fertilization Pest and Disease control Training exercises
MAGAP, Coffee Program, other NGOs
Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted: Font: (Default) Arial, Font color: Auto
... ... ... ... ... ... ... ...
Formatted: Font: (Default) Arial, Bold, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador)
This manual
Its a graphic
MAGAP,
43
Formatted
...
describes good technical practices to control Coffee borer
manual that describes the coffee borer Monitoring practices Traps Biological Control
Coffee Program, other NGOs
Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador)
This manual is an adaptation of the ACDI/VOCA Farming as a Business manual
Financial literacy manual for the facilitator, it includes: Basic business planning activities Work planning Records Financial services
Financial cooperatives, banks and rural financial entities
Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, 10 pt, Font color: Auto Formatted: Font: (Default) Arial, Bold, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.)
This manual is an student work book
Financial literacy manual for the student, it includes: Basic business planning activities Work planning Records Financial services
Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.) Formatted: Font: (Default) Arial, Not Bold, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, English (U.S.)
44
Financial Literacy banners
Financial Literacy graphics and diagrams
Business Planning software (4 PLUS)
User Manual and Business Planning Software, it includes Strategic Administration planning, Marketing Benchmarking and Financial assessment
MCPEC, Local Governments, universities, MAGAP, Anchor Firms, Producer Group Associations, Financial Entities
Georeferencing
The PRODEL team included maps of the Program main activities in the Google Maps platform. It includes maps of value chains, anchor firms, technical assistance, FFS, regions of influence, gathering centers, and other points of interest.
Comment [A80]: I went to the link but it only seemed to have the anchor firms mapped. I did not see the other points of interest that you mentioned.
Web link: http://www.acdivoca-prodel.org/component/banners/click/2
1.1.7 Sustainability TPRODEL views sustainability as the capacity required to implement methodologies and activities for the efficient and long-term achievement of strategic goals, while benefiting the maximum number of people. There are numerous variables that need to be considered when assessing project sustainability. However, the program has shown that it has robust
Comment [A81]: I would move this section up to where we discuss our exit strategy.
and efficient relationships with value chain stakeholders that are the key indicators for longterm win-win outcomes. The PRODEL anchor firms incorporate the following sustainability measures. Table 8: Anchor firm sustainability initiatives
Anchor firm Sustainability measures ECUACOCOA Finances the organic certification process for 4.000 hectares of cacao for the Eloy Alfaro association in Esmeraldas. Plans to finance additional cacao certification in Shushufindi (AAPROCASH). Plans to continue to provide technical support to increase cacao productivity by means of a newly established cacao foundation that will generate funds and implement activities. Commitment to purchase all production from the AAPROCASH, ELOY ALFARO, and FEDECADE associations. Prioritizes open commercial linkages with smallholders, particularly with cacao producers from Arenillas. Commitment to continue providing technical support to producers. Technicians contracted after PRODELS departure will restructure the team to strengthen technical and commercial activities with producers. Continues to establish modules for cacao fermentation in Arenillas. Has identified a local purchase point in Arenillas with capacity for 90 metric tons. Has established commercial relations with 8 PRODEL producer associations, and has adjusted purchasing policies to ensure liquidity for paying cash on delivery when purchasing cacao. Previously, producers needed to wait 2-3 weeks after delivery to receive payment. Strong interest in replicating the Program model established in El Oro province. Will contract one of the PRODEL technicians (Edwin Castillo) until December 2012. Mr. Castillo will lead the local commercialization process and his potential longer-term permanence presence in the organization will be based on volumes purchased from local producers. Mr. Castillo will a) give continuity to the activities initiated by PRODEL, b) establish a productivity demonstration plot, c) initiate a certification process with producers, and d) participate in commercialization activities for the company. Will use $3000 (that were not spent in a previously planned activity for website publishing) to foster a coffee-drinking culture. A core activity is the creation of a center for coffee tasters and baristas. Clear sustainability measures have not yet been established. Only maintains commercial relations with producers from Las Lojas and Esmeraldas (coffee and cacao, respectively). Technical assistance to local producers is, however, not expected to continue. Continues to establish plantations with plants grafted from supertrees. Has converted the association nursery into a sustainable income generating activity for members. Maintains a strong focus on managing resources to strengthen productivity. Maintains horizontal linkages with other anchor firms, including APROCA and COFINA.
Comment [A82]: This is a really good chart Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Comment [A83]: Is this in the northern border region? Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto, English (U.S.) Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Comment [A84]: Why not? Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto, English (U.S.) Formatted Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto, English (U.S.) Formatted Comment [A85]: Why not? Formatted Formatted Formatted Formatted Formatted Formatted PRODEL FINAL REPORT October 2007 through September 2012 46 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
COFINA
ECOCAFE
HOJA VERDE
SWEET&COFFEE FINO DE AROMA
SAN CARLOS
UNOCACE UROCAL FAPECAFES PRODUCTOS MINERVA CAFECOM EL CAFE DEPRODEMAR INALPROCES TERRAFERTIL
Has replicated the technical assistance model successfully applied in other provinces. Has consolidated commercial linkages with producers, added value to the production process through KAOKA, and is commercializing to well defined market niches. Maintains certification and technical assistance processes in place. The present commercial system assures strong linkages between the company and its producers. Currently URUCAL produces and commercializes cacao powder in line with fair trade specifications Capacity to raise funds from both government agencies and NGOs to strengthen productivity and local capacity. The PRODEL technical team will remain linked to UROCAL after the close of the PRODEL program. Continues to commercialize and open new markets for specialty coffee. Continues to strengthen certification and technical assistance processes. Lacks sustainability measures. Maintains commercial linkages with local producers. Strong interest by company technicians to work with MAGAP to develop technologies for the coffee sector. However, maintains uncertain direct commercial linkages with producers. All new plantations are organically certified. Generates new markets at both the national and international level. Commercialization of all production coming from plantations established with PRODEL. Expansion of the Mega-Factory processing plant to ensure sufficient capacity to satisfy demand. Maintains commercial relations with the following producer organizations: 21 de Enero, Esmeraldas Chamber of Fish Producers, Tacusa Cooperative, and San Pablo. Expression of interest to establish linkages with locally driven programs to strengthen relations with producers. Participation in The Good Life trade shows forms a pillar upon which the anchor company maintains commercial relations with producer organizations. Has the capacity to raise funds from the central government and NGOs to strengthen productive processes. Expression of interest to incorporate Best Management Practices into their commercialization processes. Despite the closure of PRODEL, continues to work with other actors to finalize the ice production factory to improve product quality. Has contracted PRODEL field technicians for an additional 6 months beyond program closure. Is in contact with other organizations, including GIZ and INIAP, to establish projects applying the supply chain model with processed vegetables. Continues to strengthen commercial linkages with producers. Prioritizes strong relations with producers as market demand for Andean Gooseberry (Uvilla) continues to grow. By improving cold storage infrastructure, the anchor firm has constant storage capacity, reducing losses by 25%. Will continue with Andean Gooseberry organic certification after Program
Formatted Formatted Formatted Formatted Formatted Formatted Formatted Comment [A86]: How? Formatted: Font: (Default) Arial, 10 pt, Not Bold, Font color: Auto, English (U.S.) Formatted Formatted Formatted Formatted Formatted Comment [A87]: Why? Formatted Formatted: Font: (Default) Arial, 10 pt Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted Formatted
... ... ... ... ... ... ...
... ... ... ... ...
...
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
RUNATARPUNA
UCOOPPANE
47
closure.
Formatted: Font: (Default) Arial, 10 pt
1.2 Lessons learned 1.2.1 Value chains The value chain model has proven to be an effective tool for local economic development that fosters sustainable linkages and increases access to new technologies and market opportunities in the competitive production market. The value chain model improves the supply of high quality primary material, strengthens relationships between actors, and promotes equity. In this regard, several anchor firms, including SKS Farms, Terrafrtil, INALPROCES and Runatarpuna were recognized for their creativity, innovation and high quality products with international prizes and awards during their time working with PRODEL. Alongside these, several other organizations have also established strong relations with local producers to improve product quality, social inclusion, and transparency. In so doing, these anchor firms have formed relationships with producers that go beyond commercial activitiescommercial transactions. 1.2.3 Financial services PRODELs inclusive financial services component has shown to be a beneficial offering that generates sustainable results. This is demonstrated by the high levels of successful repayment rates for loans approved for local producers. Micro-credit lenders often characterize small producers in rural production value chains as high risk. However, the value chain model helps improve the credit opportunities for these groups by assuring them a market and price for their products increasing their credit worthiness and bankability.. 1.2.4 Technological Innovation The Program has shown that the application of innovative production technology, at relatively low cost, can generate large impacts in improved efficiency and profitability by strengthening competitiveness in the value chain. For instance, by introducing new equipment in the post-harvest phase for lupine beans, quinoa, and beans, the Program substantially contributed to improved production and product quality. In an example from the fish chain, the program contributed to improved cold chain and product quality by upgrading fish storage facilities. Additionally, new technology, like
cutting-edge software or GPS monitoring equipment improved the efficiency of logistical processes in the dairy chain, as well as in the financial services component. These examples underline how PRODEL effectively applied innovation and creativity to increase competiveness in these value chains. 1.2.5 Building relationships As in many parts of the world, time is required in Ecuador Tit takes significant investments in timeto establish solid relationships between producer associations and companies in the productive sector. Development partners Those developing projects in this area should be aware of this challenge, but also of the unexpected benefits that can come from forming informal relationships. By establishing new higher education courses, PRODEL has generated important opportunities for the creation of such meaningful relationships between company representatives and producer associations. One example of this is the Masters program that was successfully established with the Ecuadorian Military Technical University (ESPE). 1.2.6 Rules of negotiation Experience from the Program highlights that an important element in forming robust relationships is establishing and remaining true to a set of clear negotiation rules. This contributes to better understanding of mutual needs between parties, particularly in regard to product quality requirements, as well as pricing and company payment conditions. 1.2.7 Adopting new technologies through FFS Farmer Field Schools (FFS) contributed to considerable productivity and quality improvements in the value chains that PRODEL engaged with. The methodology applied in the FFS, based on participatory and experiential learning, led to the adoption of more productive technologies. Furthermore, the rigorous collection and management of data generated in the FFS helped participating actors to concretely identify the causes of low productivity. Producers were consequently better able to identify and implement solutions targeting specific problems, and in so doing, triple coffee yields and double cacao yields.
Comment [A89]: Can you explain further by giving a PRODEL example Comment [A88]: How has the higher education course led to improved relationships?
49
COMPONENT 2: FOSTER ACCESSIBILITY OF FINANCIAL SERVICIES FOR VALUE CHAIN PARTICIPANTS The PRODEL Financial Services team focused its efforts on getting supporting financial institutions to extend products and services to value chain producers. Additionally, PRODEL provided Financial Literacy training to producers so that they could engage more effectively with the financial institutions. 2.1 Financial Institutions Alter Perceptions of Anchor Firm and Producer Credit Worthiness Based on Formalized Commercial Relationships The following table describes the financial institutions and organizations that carried out Financial Services Pilot Projects:
Comment [A90]: It is unclear to me what role PRODEL has in all of these descriptions of their activities. Comment [A91]: It would also be good to add whether the financial institution has rolled out the new service or product across the whole organization as these were originally conevied as pilot projects. Formatted: Font: (Default) Arial, 11 pt, Font color: Auto, Spanish (Ecuador) Formatted: Font: (Default) Arial, 11 pt, Font color: Auto Formatted: Font: (Default) Arial, 10 pt, Bold, English (U.S.)
Table 9: Logos and credit products

Product Description Credienlace extends credit to groups of 10 25 individuals from the same community. While initial loans are relatively low (i.e., they do not exceed $600), they do help farmers establish a credit relationship with a financial institution. Groups need to be linked an anchor firm who acts as representative for the group at the financial institution. Several groups that received credits have paid back 100% of the loan, and now have access to individual credits that exceed $1,000 each.
Formatted: Font: (Default) Arial, 10 pt, English (U.S.)
50
CrediAlianza awards credit to producers who are part of a local association linked to a PRODEL anchor firm. Loans are for individuals and depend on his or her ability to pay. The financial institution assesses the entire familys credit worthiness before determining the loan amount and payment options. The local association is represented on the credit committee and plays an important role in evaluating the individuals capacity to pay back the loan. A large part of the process takes place in the countryside, so that the producer does not need to make repeated trips to the Savings and Loan Cooperatives offices. This financial product is tailored specifically for value chain producers. The Cooperative offers more favorable options for value chain producers in comparison to its other credit services: 17% interest rates on agricultural loans, and loans of up to $1000 without a deposit or guarantor. The objective of these terms is to reach the maximum number of producers to help them increase yields, and in so doing, improve their quality of life. The producer must be linked to a value chain.
Formatted: Font: (Default) Arial, 10 pt, Bold, English (U.S.) Formatted: Font: (Default) Arial, 11 pt, Font color: Auto Formatted: Font: (Default) Arial, 10 pt, Bold, English (U.S.)
Formatted: Font: (Default) Arial, 10 pt, English (U.S.) Formatted: Font: (Default) Arial, 10 pt, Bold, English (U.S.)
Formatted: Font: (Default) Arial, 11 pt, Font color: Auto Formatted: Font: (Default) Arial, 10 pt, Bold, English (U.S.)
Formatted: Font: (Default) Arial, 10 pt, English (U.S.)
PRODEL also worked with international financial entities, including the Inter-American Development Bank (BID), the Andean Development Corporation (CAF), Oikocredit and Robobank. Rabobank approved a value chain financing product to be channeled through the Northern Savings and Loan Cooperative (UCACNOR). This will play an important part in giving continuity to initiatives developed by PRODEL. 2.2 Financial Literacy Training to Producers and Producer Groups PRODEL carried out an evaluation of the Financial Literacy Program in the provinces of El Oro, Esmeraldas and Imbabura. Results show that financial literacy played an important part
Comment [A92]: When?
51
in changing producers relationships with their farms. Specifically, many farmers no longer saw their farm as simply the basis for household subsistence, but, rather, as a business that can generate improved incomes and quality of life. Producers are also more familiar with terms and concepts applied in the national financial system, which has helped them access credit. The Financial Literacy Program has generated broad acceptance among producer groups, who see the Program not only as an
Financial literacy graduation with producer groups
Comment [A93]: Any statistics? How many out of the number surveyed?
opportunity to gain new knowledge and skills, but also as a way to add increased
value to becoming a member of a producer organization. to their members participation in the associations themselves. Moreover, tThrough the Financial Services Pilot Project, PRODEL and its partner financial institutions have been awarding credit to selected Financial Literacy participants when they successfully complete the program. PRODEL and its financial partners have awarded 252 loans totaling $528,956 for producers and producer groups during the Financial Literacy Program graduation ceremonies. In addition to the credits awarded during the graduation ceremonies, many participating producers worked with PRODEL to access financing through the Financial Services pilot program. In this way, the producers perceived tangible benefits to participating in the PRODEL initiative. PRODEL has helped carry out 151 Financial Literacy FFS. The following table shows the main results that PRODEL has achieved in each region through the Financial Literacy Program.
Table 10: Total number of producers that attended the Financial Literacy Program, by region
Geographic Region Northern Sierra (Imbabura and Carchi) Northern Amazon Farmers Trained as of December 2011 533 1044 Farmers Trained between January and August 2012 52 0 Total Farmers Trained as of March 2012 585 1044
52 Comment [A94]: Just use the total for the life of project column.
(Sucumbos, Napo, and Orellana) Esmeraldas Southern (Loja, El Oro, and Zamora) TOTAL
652 1287 3516
173 265 490
825 1552 4006
The following table shows the number of producers who successfully completed the Financial Literacy Program (approximately 75%), which includes a minimum requirement of having attended at least 75% of the scheduled training hours: Table 11: Total number of producers that successfully completed the Financial Literacy Program, to date, by region
Geographic Region Northern Sierra (Imbabura and Carchi) Northern Amazon (Sucumbos, Napo, and Orellana) Esmeraldas Southern (Loja, El Oro, and Zamora) TOTAL Graduates as of December 2011 533 580 626 781 2520 Graduates between January and August 2012 0 0 72 472 * 544 Total Graduates as of August 2012 533 580 698 1253 3064
*Includes Financial Literacy program participants from 2011 who graduated in 2012 Using information collected from PRODEL producers, the following table indicates the number of loans and accumulated capital the same producers have received during PRODEL Phases I and II, whether through PRODEL or individual means: Table 12: Loan Funds and Number of Credit Operations
PRODEL I (US$ Loan Capital) PRODEL II (US$ Loan Capital) PRODEL II (US$ Loan Capital)** PRODEL I + PRODEL II (US$ Loan Capital) PRODEL I (Number of credit operations) PRODEL II (Number of credit operations) PRODEL II (Number of credit operations)** PRODEL I + PRODEL II (Number of credit operations)
PRODEL FINAL REPORT October 2007 through September 2012 Comment [A95]: This seems out of place in the middle of the FFS Literacy section. Can we move it to the beginning or end of financial services section.
PROGRESS TO 2012LOP Results $ 12,495,354 $ 14,960,751 $ 2,199,784 $ 29,655,889 2,569 4,771 575 7,915
MARCH
Comment [A96]: Can we just say progress over LOP
Comment [A97]: How does this column differ from the above.
Comment [A98]: Not clear on the difference here as well.
53
** Includes all credit operations received by producers from PRODEL I and PRODEL II since October 1, 2011
Comment [A99]: I dont understand this. What is a credit operation.
The Financial Literacy Program also aimed to increase producers abilities to gain direct and independent access to credit upon graduation from the FFS training. The following table presents data on the number of producers who participated in the Program and who have gained access to credit. These producers have been provided with the guidance and training necessary through the Financial Literacy Program to apply directly to financial institutions for the available credit products. Table 13: Producer Credit Access after completing PRODEL Financial Literacy Course PROGRESS TO AUGUST 2012 PRODEL II (US$ Loan Capital) PRODEL II (Number of credit operations) 2.3 Financial Inclusion for Value Chain Actors With the objective of fostering economic development through processes of financial inclusion and to increase the business and financial management capacities of small producers, PRODEL
Graduation ceremony for Andean Gooseberry Producers linked to Terrafertil
$2,185,629 668
Comment [A100]: Why just PRODEL II and not PRODEL I and cumulative statistics?
Comment [A101]: This section belongs as an annex under success stories.
hosted an event along with the Terrafertil anchor firm to celebrate the graduation of 76 Andean Gooseberry producers from the Financial Literacy
Program in Pimampiro. During the event, PRODEL and its financial institution partner, the Artesano Savings and Loan Cooperative, awarded14 loans, valued at a total of $15,000, to the local uvilla producers. Twenty more loans, worth $20,000, are expected to be approved. These loans are part of the PRODEL Financial Services pilot project that is aimed at extending financial services to value chain actors. It is worth noting that by the end of the Program, 30% of the loans will have been awarded to producers that are receiving credit for the first time from a formal financial institution.
54
Representatives from the Provincial Government of Carchi, the Municipal Government of Pimampiro, Terrafertil, the Santa Anita and Artesanos Savings and Loan Cooperatives, and UCACNOR attended the event. In June 2012, PRODEL trained partners in the Financial Literacy methodology and donated 1573 copies of the Financial Literacy for Rural Producers book to three training partner institutions: CEFODI (437 copies), UCACNOR (550), FUNDER (200). These efforts were aimed at ensuring that this successful program reaches a greater number of beneficiaries even after the Program ends. PRODEL also donated 386 copies to Root Capital, the organization responsible for bringing the FFS methodology to Ecuador.
Comment [A102]: Can we include lessons learned on the financial services section?
Representatives from UCACNOR, CEFODI, the Santa Anita and Artesanos Savings and Loan Cooperatives, ROOT CAPITAL, and PRODEL during an event to donate materials to Financial Schools.
COMPONENT 3: MONITORING & EVALUATION 3.1 Overview: results and achievements tables and graphs By the end of the Second Phase, PRODEL was working with 24 firms. These firms were associated with the following value chains: Table 14: Firms, by Value Chain
VALUE CHAIN Cacao and chocolate Coffee Cereals and grains Herbs
Comment [A103]: Why begin talking about the second phase? Why not talk about the program as a whole?
NUMBER OF FIRMS 8* 8* 3 1
55
Seafood Processed fruit Processed vegetables TOTAL FIRMS

*Two firms worked in coffee and cacao.
3 2 1 24
PRODEL used the Qlik View Program to track key Program indicators, including specific information about each beneficiary family. PRODEL II established the following indicator targets in collaboration with 24 firms: 13,041 beneficiary families; 14,173 new and improved hectares, and 7,562 new full time equivalent jobs.
Graph 6: Qlik View screen
Comment [A104]: I am not sure how important this graphic is?
Producer groups sales to anchor firms totaled $ 674,303 this quarter a relatively low level due to the seasonal drop in production at this time of year. For example, the cacao and Arabigo Arabica coffee harvests are just beginning and the Robusta coffee harvest will begin in July. PRODEL I firms continue to work with their partner producer groups in the area of product marketing and sales. Although these firms no longer receive direct financial support from PRODEL, they are invited on a regular basis to participate in PRODEL-funded events that reinforce the progress achieved during the first phase of the program.
PRODEL FINAL REPORT October 2007 through September 2012 56 Comment [A105]: This all seems like it is taken from a previous quarterly report. We need to summarize our achievements against planned performance targets in the M&E section.
Table 15: Number of Trained Families per Anchor Firm
# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Anchor Firm Caf Minerva Cafecom Cereales Andinos Cofina Deprodemar Ecocafe Ecuacocoa El Caf Fapecafes Fino de Aroma Gruppo Salinas Hoja Verde Inalproces Jugo Fcil L'Verde Nutrivital Runa Tarpuna San Carlos Sweet&Coffee Terra Frtil Ucooppane Universal UNOCACE Urocal Total
Cumulative Achievement to March 2012 574 450 260 1,565 461 229 1,108 1,137 520 350 413 308 343 423 441 256 1,040 1,017 339 162 171 588 464 422 13,041
Comment [A106]: Do we not have M&E data any later than March of 2012? Or is that when we closed all the grants? Easier to just say Results Over LOP
*This chart includes farmers trained through Farmer Field Schools and other training methodologies
PRODEL II producers improved 9,665 hectares of crops while also planting 4,508 hectares of new crops, primarily coffee and cacao. Of these 14,173 hectares, 4,322 received organic certification.
Comment [A107]: What about PRODEL I firms?
Table 16: Number of Hectares of New and Improved Licit Crops per Anchor Firm
Cumulative Achievement to March 2012
57
Anchor Firm
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Caf Minerva Cafecom Cereales Andinos Cofina Deprodemar Ecocafe Ecuacocoa El Caf Fapecafes Fino de Aroma Gruppo Salinas Hoja Verde Inalproces Jugo Fcil L'Verde Nutrivital Runa Tarpuna San Carlos Sweet&Coffee Terra Fertil Ucooppane Universal UNOCACE Urocal Total
411 523 152 2,961 NA 203 1,001 918 723 474 569 164 272 510 145 720 587 1,488 162 92 NA NA 830 1,270 14,173
*The Universal, Deprodemar and Ucooppane anchor firms work with fish producers to which this indicator does not apply.
To date, PRODEL II created 7,562 full time equivalent jobs, representing $ 20,145,168 of new household income overall, based on a $12/day rate.
Comment [A108]: Again why just PRODEL II Comment [A109]: Need to explain how a full time equivalent job is calculated since we are talking about full time farmers that were farming before they started working with PRODEL.
58
Table 17: Number of New Full Time Equivalent Jobs per Anchor Firm to date Cumulative # Anchor Firm Achievement to March 2012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Caf Minerva Cafecom Cereales Andinos Cofina Deprodemar Ecocafe Ecuacocoa El Caf Fapecafes Fino de Aroma Gruppo Salinas Hoja Verde Inalproces Jugo Fcil L'Verde Nutrivital Runa Tarpuna San Carlos Sweet&Coffee Terra Fertil Ucooppane Universal Unocace Urocal TOTAL 205 262 61 1,084 461 102 500 459 361 237 284 82 82 153 58 216 294 744 81 28 171 588 415 635 7,562
PRODEL II worked with three distinct ethnic groups, including mestizos (mixed indigenous and European descendants), indigenous peoples, and Afro-Ecuadorians. The large majority of PRODEL beneficiaries are mestizo.
Graph 7: PRODEL Beneficiaries
59
Afroecua dorian 15% Indigeno us 23%
PRODEL Beneficiaries
Mestizo 62%
Table 18: PRODEL I Key Indicator Achievements (Reported for 20 Anchor Firms)
INDICATOR Number of Urban and Rural Anchor Firms Number of Municipalities assisted and that contributed to improve the business environment Number of beneficiary families (1) (3) Number of hectares of new and improved licit crops (1)(3) Number of new full time employees (1) (3) Increase in family (household) income from targeted sectors ($) (2) Increase in anchor firms sales ($) (3)
1. 2. 3.
PRODEL BASELINE I TARGETS 0 20
PROGRESS PROGRESS CUMULATIVE TO FOR 3rd PROGRESS MARCH QTR FY TO 3rd QTR 2012 2012 FY 2012 20 N/A 20
Comment [A110]: Why do we have these columns? Why not have PRODEL I and II and cumalitive?
10
12
N/A
12
2,295
8,000
9,780
N/A
9,780
2,296
4,000
15,825
N/A
15,825
1,032
4,000
10,347
N/A
10,347
$845 $43,025,058 $51,762,500
$1,549 $47,344,753 +10%
N/A N/A
$1,549 $47,344,753 +10%
Comment [A111]: Is this increase in annual household income?
Does not include information from Cereales Andinos, COFINA, Fapecafes, Jugo Fcil, and Gruppo Salinas. This data will form part of PRODEL II given that these firms continue to work with the Program. No target was established for this indicator during PRODEL I. This data is no longer being collected for PRODEL I anchor firms and producers.
60
Table 19: PRODEL II Key Indicator Achievements (Reported for 24 Anchor Firms)
PRODEL INDICATOR BASELINE II TARGETS Number of Urban and Rural Anchor Firms Number of beneficiary families (1) Number of hectares of new and improved licit crops Number of new full time jobs Increase in family (household) income from targeted sectors ($) (2) Increase in Farmer Groups sales to Anchor Firms ($) (5) Increase in Anchor Firms sales ($) (6) PROGRESS PROGRESS CUMULATIVE TO MARCH 2011 23 FOR 3rd QTR FY 2012 1 PROGRESS TO 3rd QTR FY 2012 24
Comment [A112]: Again just keep it to PRODEL I, II and Cumalitive.
34
1,621
13,600
12,360
681
13,041
2,339 1,122
9,600 6,800
14,073 7,243
100 319 $ 1.100 (Total amount from Jan-June 2012) (3) 674,303 Data from 14 Anchor Firms) 11,627,138 Data from 11 Anchor Firms) 83
14,173 7,562
$1,060
75%
$1,821(4)
$1.100
$ 969,132 $50,006,616 (Data from 16 Anchor Firms) 0
75% $62,508,270 (Data from 16 Anchor Firms) 300
$ 10,511,901
11,186,204
$ 170,019,396
181,646,534
Number of GOE/NGO Technicians Trained

(1) (2) (3) (4) (5) (6)
424
507
These families were connected to the five anchor firms that continued from PRODEL I to PRODEL II and will not be counted for reporting purposes. The baseline corresponds to 17 anchor firms and is a LOP (three year) target. This indicator will be measured and provided according to the harvests of PRODEL-targeted crops. This data represents the average income for 20 anchor firms for the period of January 1 to June 30, 2011 according to the agricultural season in Ecuador. Average annual income from January 1 to December 31, 2011. This information is being reported for 14 anchor firms. No targets were required to be established for this indicator for PRODEL II. This information corresponds to data from 11 anchor firms.
61
Since 2008, PRODEL trained 22,820 families who are now applying new yield- and quality-enhancing techniques on their farms and productive units. Trainers and technical assistants saw best results when they used Farmer Field Schools to impart new knowledge and practices.
Since 2008, PRODEL improved or established 29,998 hectares of licit crops, of which cacao, coffee, and guayusa represent a significant proportion. In addition, a total of 17,909 full-time equivalent jobs were created for families who were dedicated to improving their farms and applying technical recommendations received through PRODEL.
Table 20: PRODEL Cumulative Key Indicator Achievements

LOP INDICATOR TARGET S Number of Urban and Rural Anchor Firms (1) Number of Municipalities assisted and that contributed to improve the business environment Number of beneficiary families (2) Number of hectares of new and improved licit crops (2) Number of new full time jobs (2) Increase in family (household) income from targeted sectors ($) 49 PROGRESS TO MARCH 2011 43 PROGRESS FOR 3rd QTR FY 2012 1 CUMULATIVE PROGRESS TO 3rd QTR FY 2012 44
10
12
12
21,600 13,600 10,800 75%
22,139 29,898 17,590 $1,821 (4)
681 100 319 $ 1,100 (Total amount from Jan-June 2012) (3) 674,303 11,627,138 83
22,820 29,998 17,909 $ 1,100
Comment [A113]: This figure does not seem right?
Increase in Farmer Groups sales to Anchor Firms (5) Increase in anchor firms sales ($)(6) Number of GOE/NGO Technicians Trained
$ 969,132
$ 10,511,901
11,186,204 181,646,534 507
$51,100,78 $ 170,019,396 0 300 424
(1) Includes 43 anchor firms (20 from PRODEL I and 23 from PRODEL II).
(2) Includes data from 43 anchor firms (20 from PRODEL I and 23 from PRODEL II). (3) This data represents the average income for 11 anchor firms for the period of January 1 to September 30, 2011 according to the agricultural season in Ecuador. (4) Average annual income from January 1 to December 31, 2010. (5) This indicator only pertains to PRODEL II Anchor Firms in this cumulative chart and corresponds to data from 17 anchor firms. (6) No targets were required for this PRODEL indicator.
PRODEL helped carry out 40 environmental reviews since 2008. The data generated from these reviews was registered in the Environmental Information and Management System (SIGA) developed and operated by USAID Ecuador.
PRODELs Monitoring and Evaluation Specialist, Jairo Andrade, participated in a workshop organized by the USAID Environmental office to use and apply the latest version of the SIGA Program.
Graph 8: Environmental Information and Management System (SIGA)
Comment [A114]: This graph is very hard to read.
63
PRODELs field technicians carried out their responsibilities in compliance with the recommendations from the Environmental Reviews and the Pesticides Environmental Review and Safe Use Action Plan (PERSUAP).
COMPONENT 4: SUBCONTRACTS AND GRANTS 4.1 Achievements during the PRODEL second phase In order to generate demand for the target markets, PRODEL worked closely with producers, associations, firms, and suppliers to identify strategies that would increase their competitiveness and accelerate growth. The Economic Development Fund (EDF) was a critical piece of this strategy. Through the EDF, PRODEL allocated funds in accordance with the norms and procedures outlined in the USAID Grants and Subcontracts Manual. The PRODEL subcontract and grants department focused on the following general results during PRODEL second phase: (1) supporting the selection process of anchor firms, (2) reviewing applications from interested anchor firms, (3) creating eight committees to review proposals and budgets, (4) evaluating and approving new anchor firms and signing cooperative agreements, (5) developing and processing grants, (6) processing funds disbursements based on the program work plan, (7) carrying out environmental reviews; (8) compiling information required for implementing projects and verifying benchmarks, (9) setting up the implementation of 24 grants with local anchor firms, (10) monitoring and evaluation results, and (11) closeout process. Services procured through the EDF during the Second Phase enabled beneficiaries and participating anchor firms to access financing for strategic actions that increased productivity, improved quality, strengthened commercial linkages, and developed human resources within producer groups and firms. PRODEL used the EDF to extend technical assistance to anchor firms and producer groups, promote financial literacy, distribute infrastructure and tools for collection and storage sites and to establish new and improved hectares, produce training manuals, provide marketing training, and to support anchor firm participation in trade shows and commercial tours.
Comment [A115]: You could provide some more information on the process of selection and evaluation of our grants.
64
The technical assistance focused primarily on the following topics: developing markets, applying business management tools, innovations in the transformation process, diversifying products, reducing costs, and strengthening exports, among others. The support that the PRODEL team provided anchor firms as they acquired goods and services and implemented activities was critical to the overall impact of these investments. The PRODEL team helped the firms develop internal capacities and adopt sound administrative and corporate practices, especially in the selection and management of service providers. PRODEL operative achievements in the area of subcontracts and grants during the second phase of the program include: A total of 24 PRODEL anchor firms presented applications for co-financing to the EDF for a total of $4,014,071 in planned direct investments from the program. Those same firms have pledged $7,289,675 in counterpart funding. Nine technical committees, which included USAID representatives, reviewed and analyzed all of the applications During the second phase the PRODEL team leveraged $ 2,175,403 in funding from both public and private entities that have decided to join the Program in support of the Value Chain Model and participating PRODEL anchor firms and producer groups (see table 00). As of August 31, 2012, PRODEL invested a total of $ 3, 933,603 through the EDF. This total amount can be disaggregated into the following three types of investments:
$208,960 for special projects through 14 PRODEL I anchor firms; $3,372,547 through contracts with 24 anchor firms; and $352,096 through subcontracts with local service providers for specific strategic activities.
65
Graph 9: EDF Grants Quarterly Cash flow as of August 31, 2012
Comment [A116]: Why just as of 2010? And not the whole project?
Cash Flow for PRODEL Investments

508,394 483,146 390,600 386,021 382,091 330,811 207,865 167,584 140,128 35,567
2nd QFY, 3rd QFY, 2010 2010 4th QFY, 2010 1st QFY, 2011 2nd QFY, 2011 3th QFY, 2011 4th QFY, 2011 1st QFY, 2012 2nd QFY, 2012 3th QFY, 2012 4th QFY, 2012
549,300
PRODEL awarded $ 352,096 USD in sub-contracts as of August 31, 2012 to local firms to carry out specific strategic results, including specific training and technical assistance, and organizing financial and sector-specific events. Table 21: Total Funds Disbursed to PRODEL II Anchor Firms as of August 31, 2012
ANCHOR FIRM PRODEL II GRANTS FAPECAFES CAFECOM MINERVA EL CAF FINO DE AROMA HOJA VERDE SWEET & COFFEE COFINA, S.A. GRUPPO SALINAS ASO. SAN CARLOS ECUACOCOA UNOCACE ECOCAFE JUGO FACIL VALUE CHAIN PRODEL II FUNDS APPROVED $ 248,700 $ 182,247 $ 113,000 $ 300,000 $ 106,900 $ 101,397 $ 97,500 $ 437,300 $ 206,200 $ 249,400 $ 299,250 $ 124,502 $ 95,200 $ 167,500 TOTAL FUNDS DISBURSED $ 228,854 $ 164,071 $ 96,906 $ 177,778 $ 100,486 $ 75,196 $ 84,818 $ 307,819 $ 183,685 $ 249,358 $ 236,879 $ 109,848 $ 81,161 $ 147,438
66
Coffee Coffee Coffee Coffee Coffee Coffee Coffee Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Fruits
UROCAL TERRAFERTIL CEREALES ANDINOS L VERDE NUTRIVITAL DEPRODEMAR UNIVERSAL INALPROCES RUNATARPUNA UCOOPPANE TOTAL
Fruits Fruits Grains Grains Grains Fish & Seafood Fish & Seafood Vegetables Guayusa Fish & Seafood
$ 112,350 $ 115,285 $ 99,400 $ 93,140 $ 97,200 $ 181,300 $ 228,900 $ 105,900 $ 220,300 $ 31,700 $ 4,014,571
$ 87,492 $ 83,143 $ 96,056 $ 71,666 $ 45,912 $ 178,279 $ 225,652 $ 88,117 $ 220,300 $ 31,636 $ 3,372,547
By the end of the Second Phase, 84% of the EDF funds had been invested through 24 anchor firms to the benefit of 13,041 families, 9,665 improved hectares, 4,508 new hectares, and 7,572 permanent jobs. 16% of the EDF funds were never allocated due to the Programs early closure. Table 22: PRODEL II and counterpart acquisitions
ANCHOR FIRM FAPECAFES CAFECOM MINERVA EL CAF FINO DE AROMA HOJA VERDE SWEET & COFFEE COFINA S.A. GRUPPO SALINAS ASO. SAN CARLOS ECUACOCOA UNOCACE ECOCAFE JUGO FACIL UROCAL TERRAFERTIL CEREALES ANDINOS L VERDE NUTRIVITAL DEPRODEMAR UNIVERSAL /UCOOPPANE INALPROCES VALUE CHAIN Coffee Coffee Coffee Coffee Coffee Coffee Coffee Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Cacao & Chocolate Fruits Fruits Fruits Grains Grains Grains Fish & Seafood Fish & Seafood Vegetables LOP ESTIMATED ANCHOR FIRM CONTRIBUTION $ 564,000 $ 315,600 $ 169,000 $ 733,000 $ 323,005 $ 119,850 $ 219,100 $ 753,000 $ 206,000 $ 321,100 $ 408,850 $ 666,780 $ 159,000 $ 171,788 $ 195,120 $ 179,905 $ 113,060 $ 124,950 $ 114,667 $ 323,700 $ 306,900 $ 270,300
67
RUNA TARPUNA UCOOPPANE TOTAL
Tea (agro forestry) Fish & Seafood
$ 466,500 $ 64,500 $ 7,289,675
4.2 Leveraging complementary funds In addition to the synergies created with diverse actors and institutions, the Program successfully leveraged funds from both public and private institutions. These are summarized in the following table: Table 23: Leveraged funds
Activity Operational funds for sales and transporting blackberry mora to Ibarra Inputs, seeds and technical support for lupine bean production. Andino 450 chocho seeds for producers in Imbabura Land and infrastructure for new collection and storage facility in Antonio Ante Transport for maqueo plantain production Transport for manioc production Technical assistance for producers from Chota Valley White panamito bean seeds to establish new plantations. Renovation of the Sirenita del Pailn collection and storage center, as well as capital for commercial operations Operational capital, 21 boats, 14 motors, materials, fishing inputs, and electric generator Support for organizational strengthening processes for fish producer cooperatives Provider Institution Beneficiaries / Anchor firm Investment $ 22,400 $ $ $ $ $ $ $ $ 43,000 21,800 36,800 4,500 1,500 2,400 1,000 10,000
Comment [A117]: I am not sure you need all this information in the main report. Might be better as an annex. Formatted Table
Carchi Provincial Mora producers / Jugo Government Fcil Carchi Provincial Chocho producers / La Government Verde INIAP Imbabura Chocho producers / La Verde Municipal Strawberry and beet Government of producers / Jugo Fcil, Antonio Ante Inalproces Municipal Vegetable producers / Government of Inalproces Mira Municipal Vegetable producers / Government of Inalproces Mira FORCAFREJOL Bean producers / Nutrivital Municipal Bean producers/ Government of Nutrivital Mira Municipal Artisan fish producers / Government of San UCOOPPANE Lorenzo Ministry of Artisan fish producers / Economic and UCOOPPANE Social Inclusion Municipal Artisan fish producers / Government of San UCOOPPANE Lorenzo
$ 207,052 $ 8,052
68
Operational capital, freezer, 3 boats, fishing implements Training materials and other inputs for the fish producer groups Pilot project applying PRODEL Farmer Field School (FFS) methodology and IOM Livelihoods approach. Repair of main road to the Calamari Fish Association storage center.
Italian-Ecuadorian Fund Undersecretary of Fishing Resources IOM & PIDEM
Artisan fish producers / UCOOPPANE Artisan fish producers / UCOOPPANE Colombian refugees / UCOOPPANE. Artisan fish producers/Calamari Association. Artisan fish producers / UCOOPPANE Artisan fish producers / UCOOPPANE
$ $ $
50,500 2,800 45,000
IOM & PIDEM
$ $
30,000 27,558
Improvement of the electric system IOM & PIDEM and seafood processing plant in San Lorenzo. Improvement of storage center, and The Belgian acquisition of refrigerated transport. Technical Agency (CTB) The Decentralized Autonomous Government (GAD) of San Lorenzo and Plan Ecuador. Strengthening artisan fish The GAD of production through associated Esmeraldas and production, storage and Eloy Alfaro, The commercialization between three Program for Rural associations in the Canton of Eloy Development in the Alfaro. North of Ecuador (PDRN), The Fund for shared rural investments (FIRC). Renting space, design, and PROECUADOR, construction of the Ecuadorian Commercial Office Pavilion at the Fancy Food Show, as in New York well as marketing and logistical support Renting space, design, and PROECUADOR, construction of the Ecuadorian Commercial Office Pavilion at the SCAA, as well as in New York marketing and logistical support Designing and building stands at the PROECUADOR, 3rd annual Chocolate Salon event, as Pakari, Frenchwell as marketing and logistical Ecuadorian support Chamber Plant nursery construction for German Socialguayusa production in Arosemena Technical Service Tola (DED) Financial support for the production Latin American and export of Amazonian Guayusa Development Bank tea (CAF)
$ 180,000
Artisan fish producers / UCOOPPANE
$ 162,584
Corporate event: coffee, cacao, herbs, and processed vegetables Corporate event: coffee
52,379
40,000
Corporate event: cacao
20,000
Guayusa producers Runa Tarpuna Runa Tarpuna
$ $
19,901 25,000
69
Construction of Guayusa nursery in Arosemena Tola
tea Municipal Government of Arosemena Tola Land and infrastructure for new Municipal coffee nursery Government of Zaruma Support for dehydrated mushroom MIPRO value chains Support for coffee producers in the Municipal Canton of Zaruma. Government of Zaruma Operational capital for collecting, ARMAJARO storing, and selling cacao Construction of a drying area in GIZ cacao storage facility Training and technical support for Species in Danger Sacha cacao producers Foundation Support for increasing cacao CORPEI, GTZ productivity Organizational and commercial KAOKA strengthening, as well as quality improvement for coffee from UNOCACE Strengthening sustainable agriculture Pan para el Mundo
Guayusa producers Runa Tarpuna Coffee producers Gruppo Salinas
/ /
$ $ $ $ $ $ $ $ $
20,000 13,000 51,000 30,300 60,000 12,000 7,500 50,000 80,000
Mushroom producers / Gruppo Salinas Coffee producers / Gruppo Salinas Cacao producers / San Carlos association Cacao producers, San Carlos association Cacao producers / San Carlos association Cacao producers / Unocace Cacao producers / UNOCACE
Cacao producers / Urocal Improving APECAP productive ACSUD LAS Coffee producers chain SEGOVIAS /Fapecafes - Apecap Improving high quality and organic Equal Exchange Coffee producers / coffee production in the Southern Fapecafes Sierra region Strengthening plantain production VECO ANDINO Coffee producers / chain Fapecafes Increasing profitability of CADERS Center Coffee producers / PROCAFEQ production systems for Rural Fapecafes, Procafeq Development Support for associative marketing Municipal Coffee producers / and sales and increasing Government of Fapecafes competitiveness Olmedo Sustainable management of agro- Italian-Ecuadorian Fapecafes, Procafeq ecosystems in the South of Ecuador Fund Assistance to the Ecuadorian Fair VECO ANDINO Coffee producers / Trade Coordinator. Fapecafes Materials for constructing modules Municipal Coffee producers/ for coffee washing for Caf Minerva Government of Canton of Sozoranga producers. Sozoranga Training to improve Robusta coffee COFENAC, Technicians and leaders quality in the Amazon Municipal from coffee producer Government of organizations. Lago Agrio. Tools and supplies to construct OXFAM, Italy Quinua Producers /
$ 100,000 $ 200,000 $ $ $ $ 46,100 70,000 56,000 35,000
$ 300,000 $ $ $ 10,277 10,000 7,000
3,000
70
artisan dryers and for organic certification.
Mama Murucuna
TOTAL
$ 2,175,403
4.3 Lessons learned Despite sometimes being profitable, family-run companies, as in the case of Jugo Fcil and Universal are likely to present greater risks in achieving organizational consolidation. This is due to the challenges presented by close personal relationships in the professional environment, as well as a tendency towards greater dependency on fewer clients.
Events of a political nature and external administrative changes led to budget cuts and the early closure of Program activities. In many cases this obliged anchor firms to increase their project contributions to accelerate activities and other processes to achieve objectives.
71
ANNEXES ANNEX 1. Public relations El contrato con la empresa Taktikee trajo grandes resultados en relaciones pblicas para mostrar el trabajo de PRODEL y visibilidad de USAID. Las siguientes fotos muestran un extracto de las publicaciones en principales medios de comunicacin. Durante la gestin que realiz Taktikee en el perodo 2011 2012 se consigui un total de 247 publicaciones que alcanzaron un ahorro publicitario de 400. 861 dlares. Estas publicaciones permitieron que cerca de 24 millones 292 mil 629 personas accedan a esta informacin. (Esta cifra se estima en base al nivel de lectora de cada medio).
72
73
74
ANEXO 2. Distribucin de ingresos y agregacin de valor en las cadenas: Se realiz un anlisis de distribucin de ingresos en algunos de los encadenamientos productivos con los que ha trabajado PRODEL. El anlisis realizado permite observar de manera grfica la distribucin de ingresos a lo largo del encadenamiento productivo, el valor agregado en cada fase de la cadena, la distribucin general de ese valor agregado y su distribucin dentro del pas, el margen de utilidad para cada actor y estimar el incremento en ingresos para los casos en que por efectos del trabajo de PRODEL se tenga un mejoramiento en la productividad de los cultivos. Luego de haber preparado las tablas de datos, se diagram la estructura de precios y costos de cada cadena de valor de acuerdo con el siguiente modelo aplicado en el ao 2011 para cacao nacional:
Como resultado, se obtuvieron grficos que muestran la agregacin de valor a lo largo de la cadena y las utilidades obtenidas en cada etapa de la misma, como se observa en los siguientes grficos para cacao nacional y para caf robusta:
75
CACAO NACIONAL
VALOR AGREGADO (USD / qq)
1,200.00 1,000.00 800.00 600.00 400.00 200.00 0.00
Produccin Poscosecha Procesamiento Procesamiento Importacin Exportacin Procesamiento Distribucin Mercado
Valor agregado en cada etapa de la cadena de valor para cacao nacional de la Amazona Norte del Ecuador
76
CACAO NACIONAL
DISTRIBUCIN DE VALOR AGREGADO
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 5.01% 6.57% % 2011
Distribucin de valor agregado en cada etapa de la cadena de valor para cacao nacional de la Amazona Norte del Ecuador
Valor Agregado Pas Exportador (acopio/proceso) Valor Agregado Pas Importador
88.41%
Valor Agregado Productores
77
CACAO NACIONAL
Utilidad % (margen bruto / costos)
120.00% 113.3%
100.00%
80.00%
60.00%
40.00% 23.3% 20.5%
20.00%
18.3%
19.9%
0.00%
Productor Asociacin Empresa Empresa Internacional Venta Final
Porcentaje de utilidades brutas para cada etapa de la cadena de valor de cacao nacional de la Amazona Norte del Ecuador
De los grficos anteriores para cacao nacional del Ecuador, se encuentra que la mayor porcin de valor agregado se da en el extranjero, en la fase de importacin-procesamientodistribucin. En realidad esa es la dinmica actual de varias industrias globales, entre ellas la chocolatera. Al agregar valor y por tanto generar utilidades las empresas mantienen y acrecientan su competitividad, pueden mantener y ampliar sus mercados y asegurar de este modo la continuidad de funcionamiento de la cadena de valor.
Las mayores utilidades porcentuales respecto a costos las obtiene el productor en Ecuador. Sin embargo al ser expresadas en montos monetarios, resultan ser pequeas, pues una familia tpica de productores de cacao de Ecuador produce dos hectreas, con una
78
produccin total de 10 qq, percibira como ganancia al ao alrededor de USD 580 (es decir USD 290 por hectrea). En cambio los acopiadores-exportadores y las industrias comercian y transforman cantidades de cacao muchsimo mayores.
CAF ROBUSTA
VALOR AGREGADO (USD / qq)
100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00
Produccin Poscosecha Procesamiento Procesamiento Entrega a Exportador Exportacin Importacin Transformacin Empaque Distribucin Mercado
Valor agregado en cada etapa de la cadena de valor para caf robusta de la Amazona Norte del Ecuador
79
CAF ROBUSTA
DISTRIBUCIN DE VALOR AGREGADO
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 12.36% 30.00% 20.00% 28.14% 10.00% 0.00% % 2011
Distribucin de valor agregado en cada etapa de la cadena de valor para caf robusta de la Amazona Norte del Ecuador
59.50% Valor Agregado Pas Importador
Valor Agregado Pas Exportador (acopio/proceso)
Valor Agregado Productores
80
CAF ROBUSTA
Utilidad % (margen bruto / costos)
80.00% 74.1%
60.00%
40.00%
35.0% 26.4%
20.00%
17.7%
3.7% 0.00%
Productor Asociacin Empresa Intermediaria
4.7%
5.7%
Exportacin (Broker)
Importacin (Broker)
Empresa Transformadora
Venta Final
Porcentaje de utilidades brutas para cada etapa de la cadena de valor de caf robusta de la Amazona Norte del Ecuador
El caso del caf robusta ecuatoriano es especial: la mayor parte es exportada a Colombia para consumo interno en ese pas, en especial en su industria de cafs solubles instantneos. Los datos estadsticos varan segn la fuente, pero esa exportacin a Colombia sera de alrededor o ms del 90 % de l caf robusta producido en Ecuador. La regin del pas que produce en mayor cantidad el caf robusta es la Amazona norte.
Del total de valor agregado en la cadena de valor de caf robusta a Colombia, el productor tiene un 28,14 %, que es un porcentaje importante. La ilustracin anterior tambin muestra que el productor es el actor de esta cadena de valor que obtiene un mayor porcentaje de utilidades respecto a sus costos. Sin embargo estos datos no deben guiarnos de manera
errnea. El productor de caf robusta de la Amazona norte produca al 2009 en promedio 5,4 quintales de caf oro por hectrea (INEC). Mientras tanto, los dems actores comercian cantidades multiplicadas por factores de miles. Entonces, los ingresos del productor son exiguos comparados con los de los dems actores. Falta mucho por trabajar para lograr un mejor equilibrio y una distribucin ms equitativa de ganancias en la cadena.
Rentabilidad de las cadenas de valor: En PRODEL tambin se realizaron determinaciones de rentabilidad en las cadenas de valor, con nfasis en aquellas cadenas y aquellos productores que han mejorado sus prcticas productivas por efecto de la asistencia tcnica y apoyo del programa.
Un ejemplo de este anlisis fue el preparado para el caso de super rboles de cacao de la Amazona norte del Ecuador. Para este anlisis se realiz un levantamiento detallado de costos para establecer y trabajar una hectrea de cacao nacional perteneciente a clones de los denominados sper rboles.
Los sper rboles son plantas de cacao del cantn la Joya de los Sachas y en especial de la parroquia San Carlos, que presentan alta resistencia a las plagas y enfermedades ms comunes en el lugar. Adems su rendimiento es alto tanto en calidad como en productividad. Con los sper rboles se consiguen mejoras de 600 % en productividad, pues mientras en un cultivo tradicional las familias del sitio obtienen entre 3 y 6 quintales de cacao por hectrea, con las nuevas plantas y un adecuado manejo tanto de la plantacin como del cultivo se logran rendimientos de 20, 30 y hasta 40 quintales por hectrea.
Los sper rboles han sido descubiertos y probados durante aos por agricultores de San Carlos, con el apoyo de proyectos de desarrollo. Dos de esos proyectos han sido financiados por USAID (PRONORTE y PRODEL).
82
A diferencia de la productividad tradicional promedio por hectrea en el pas de alrededor de 5 quintales de cacao seco, al plantar super rboles y aplicar una tecnologa adecuada de cultivo se pueden alcanzar productividades tan altas como 50 quintales por hectrea. Para los agricultores beneficiarios de PRODEL se han determinado productividades de 40 quintales por hectrea.
A continuacin se presenta la grfica obtenida de esta determinacin:
Costos, ingresos y punto de equilibrio para una hectrea de cacao de sper rboles en cultivo establecido
Como se observa, para una produccin tpica de 35 quintales por hectrea, la familia cacaotera obtendr una utilidad anual de alrededor de USD 3800, bastante mayor que la utilidad ya reseada de USD 290 por hectrea de cultivo tradicional de cacao. De igual manera se obtuvo el siguiente grfico para el cultivo de caf robusta, con manejo tecnificado, es decir siguiendo las recomendaciones y las tcnicas desarrolladas a travs de las Escuelas de Campo:
Costos, ingresos y punto de equilibrio para una hectrea de caf robusta en cultivo establecido
En este caso, para una produccin tpica de alrededor de 25 quintales por hectrea, los productores obtienen una utilidad de USD 2300. Es decir que aplicando las nuevas tecnologas de cultivo, rescatadas y desarrolladas en conjunto con PRODEL, pueden incrementar sus utilidades por hectrea en alrededor de USD 2000 al ao. La productividad tradicional de caf robusta en la Amazona norte era de 5,4 quintales por hectrea, que producan una utilidad de USD 215 al ao. Por favor ntese que si aplicamos esos 5,4 quintales en el grfico, ni siquiera se alcanza al punto de equilibrio. La nueva tecnologa implica tambin una mayor inversin tanto de tiempo de trabajo, como de insumos, pero que se traduce en productividad y utilidades mucho ms altas.
PRODEL realiz otros seguimientos y anlisis para monitorear y asegurar la sostenibilidad de las cadenas de valor apoyadas. Un ejemplo es el seguimiento de precios para las dos variedades de caf que se cultivan en el pas, para el cual se presenta aqu un grafico desde enero de 2010:
Precios indicadores del mercado internacional y precios de compra a productor dentro del Ecuador, para caf arbica y robusta. Elaboracin propia con base en datos tomados de ICO (International Coffee Organization, http://www.ico.org/coffee_prices.asp)
Se observa que el precio del caf arbica se ha mantenido con un margen de USD 50 a 60 respecto al precio indicador para caf arbica other milds, categora ala que pertenece. Sin embargo en el ltimo semestre del ao 2011, el caf ecuatoriano mantuvo su precio de compra al productor mientras el caf en mercado internacional sufra una baja.
Como ya se indic, el caf robusta del Ecuador tiene un nicho particular de mercado, Colombia. Tambin por eso, tomando en cuenta la cercana geogrfica y bajos costos de transporte, as como ciertas restricciones en Colombia para la importacin de caf que no pertenezca a pases andinos, provoca que el caf robusta ecuatoriano sea pagado a los
productores con precios muy prximos y en ocasiones superiores al precio indicador de los mercados mundiales.
ANEXO 2. Estudio de Productividad

A continuacin se presentan, tanto para caf como para cacao los factores ms representativos que en el 2011 incidieron en el incremento productivo de las plantaciones de los beneficiarios. La productividad para caf se registr en quintales de caf oro (verde o pilado) por hectrea, y en cacao se registr en quintales de cacao (fermentado y seco) por hectrea.
Anlisis de productividad en el cultivo de caf (2008 al 2011) Como se aprecia en el grfico continuo, en el ao 2011 los productores de caf de PRODEL alcanzan un promedio de 8.58 qq/ha, se evidencia un incremento positivo y representativo que rompe la tendencia decreciente entre el 2008 y 2010; este incremento refleja en las fincas de los beneficiarios la actividades de intervencin del Programa.
Productividad anual - CAF

Productividad (qq/ha) 10.00 8.00 6.00 4.00 2.00 2008 2009 Aos 2010 2011 7.22 7.18 7.08 8.58
86
Regin fronteriza
16 Productividad (qq/ha) 14 12 10 8 6 4 2 0 Frontera Norte 2008 2009 2010 Frontera Sur 2011 7.1 6.96 6.61 13.88 10.44 11.15 8.04
En cuanto a las regiones de intervencin, en el 2011 se logra una productividad de 11.15 qq/ha en las provincias de la frontera norte (Sucumbos y Orellana), en tanto que la productividad en la frontera sur fue de 8.04 qq/ha (Loja). Cabe destacar que esta brecha tambin se genera por las diferentes variedades producidas en cada regin. En la frontera norte se produce caf de variedad robusta (sin aroma, con cuerpo, de ms alta productividad); y en la frontera sur se produce el caf de variedad arabica (especial por su aroma) pero de menor productividad.
Efecto de la poda La poda es la eliminacin de la yema terminal de una planta de caf para detener su desarrollo vertical u y estimular el crecimiento lateral, es decir ramificacin secundaria y terciaria zonas donde la planta produce. Durante el periodo 2008-2011 el rendimiento de caf en plantaciones que han sido podadas fue superior al rendimiento de las plantaciones que no han sido podadas (p<0,0001). Al comparar los rendimientos de caf durante los aos 2008 y 2011, se determin que en el ao 2011 fueron superiores a los rendimientos alcanzados en los aos 2008, 2009 y 2010, tanto para plantaciones podadas como para plantaciones no podadas.
Promedio+ error estndar del rendimiento del cultivo de caf en plantaciones podadas y no podadas, durante el periodo 2008-2011. PLANTACIONES AO 2008 2009 2010 2011 p-valor NO PODADAS 3,76+0,27 b 3,87+0,21 b 4,56+0,38 b 5,46+0,33 a 0,0002 PODADAS 6,27+0,28 c 6,65+0,29 c 7,39+0,31 b 9,88+0,34 a <0,0001
Como se aprecia a continuacin, la relacin entre el periodo productivo y rendimiento de caf en plantaciones no podadas y podadas. Se puede apreciar que en el ao 2011, las plantaciones han tenido los rendimientos ms altos que en los aos 2008, 2009 y 2010.
NO PODADAS PODADAS Relacin entre el periodo productivo y rendimiento de caf en plantaciones de caf podadas y no podadas.
Efecto de la Recepa La recepa consiste en cortar completamente el tallo o tallos de las plantas de caf que han agotado su capacidad productiva o han sido afectadas por enfermedades, mediante un corte ligeramente a desnivel o bisel, a una altura de 30 a 40 centmetros del nivel del suelo. Durante el periodo 2008-2011, las plantaciones de caf que han sido recepadas, presentaron rendimientos mayores que las plantaciones que no han sido recepadas (p<0,0001). Tanto las plantaciones recepadas como no recepadas presentaron mayores rendimientos en el ao 2011 que en los aos 2008,2009 y 2010.
88
Promedio+ error estndar del rendimiento del cultivo de caf en plantaciones no recepadas y recepadas, durante el periodo 2008-2011. PLANTACIONES AO 2008 2009 2010 2011 p-valor NO RECEPADAS 2,90+0,24 c 3,34+0,25 c 5,16+0,36 b 8,11+0,47 a <0,0001 RECEPADAS 7,37+0,31 b 7,60+0,31 b 7,60+0,33 b 9,06+0,32 a 0,0005
A continuacin se presenta la relacin entre el periodo productivo y rendimiento de caf en plantaciones no recepadas y recepadas. Las plantaciones evaluadas presentaron los rendimientos ms altos en el ao 2011 que en los aos 2008, 2009 y 2010.
NO RECEPADAS RECEPADAS Relacin entre el periodo productivo y el rendimiento de caf en plantaciones no recepadas y recepadas.
Efecto del tipo de fertilizacin Los productores de caf de las 5 provincias evaluadas realizan fertilizaciones orgnicas y qumicas al suelo. Sin embargo, otros productores no realizan ningn tipo de fertilizacin edfica. Al evaluar la relacin entre el tipo de fertilizante utilizado y el rendimiento del caf, se determin que los fertilizantes qumicos y orgnicos ejercen un efecto similar sobre esta variable productiva. Es decir que las plantaciones de caf presentaron rendimientos estadsticamente similares al ser fertilizadas con productos orgnicos o qumicos. Al evaluar la productividad por periodo productivo se encontr que en el ao 2011, las plantaciones de
89
caf presentaron los mayores rendimientos, que en los aos 2008, 2009, y 2010, tanto para plantaciones que no utilizan fertilizantes al suelo como para aquellas que utilizan fertilizantes qumicos u orgnicos.
Promedio+ error estndar del rendimiento del cultivo de caf en plantaciones no fertilizadas, fertilizadas qumicamente y orgnicamente, durante el periodo 2008-2011. AO 2008 2009 2010 2011 p-valor TIPO DE FERTILIZACIN EDAFICA ORGANICA 7,96+0,33 b 7,97+0,33 b 7,75+0,35 b 9,48+0,37 a 0,0010
NINGUNA 3,54+0,27 c 4,11+0,29 c 5,45+0,35 b 7,53+0,36 a <0,0001
QUIMICA 2,85+0,99 b 3,42+1,36 b 8,60+1,63 b 15,09+2,94 a <0,0001
A continuacin se presenta la relacin entre el rendimiento de caf y el tipo de fertilizante edfico utilizado. Se observa mayores ndices productivos de las plantaciones de caf en el ao 2011, que en los aos 2008, 2009 y 2010, con los diferentes tipos de fertilizantes.
NINGUNA
ORGANICA
90
QUIMICA Relacin entre el periodo productivo y el rendimiento de caf en plantaciones no fertilizadas, fertilizadas qumicamente y orgnicamente.
Relacin entre el rendimiento y las prcticas culturales en el cultivo de caf Para el ao 2011 el rendimiento de caf fue modelado bajo la siguiente expresin:
Rendimiento = 12,01 (-1,06 nmero de ejes) x -0,00045 (densidad) + 2,06 (si poda)
Con un nivel de significancia de (p<0,0010 para nmero de ejes; p=0,0037 para densidad; y p=0,0100 para si poda o no). En esta ecuacin la variables poda o no las plantaciones present una relacin directamente proporcional con el rendimiento y las variables nmero promedio de ejes y densidad de siembra presentaron una relacin inversamente proporcional con el rendimiento de caf. Anlisis de productividad en el cultivo de cacao (2008 al 2011) Como se aprecia en el grfico en el ao 2011 la produccin de cacao con los beneficiarios del Programa alcanz un promedio de 7.01 qq/ha; evidenciando tal como en el caf un incremento positivo y representativo frente a los aos 2008, 2009 y 2010.
91
Productividad anual - CACAO

8.00 7.00 Productividad (qq/ha) 6.00 5.00 4.00 3.00 2.00 1.00 2008 2009 Aos 2010 2011 5.73 4.98 5.18 7.01
Por regiones el comportamiento de la productividad de cacao es muy similar durante los aos analizados, es decir que se mantienen diferencias mnimas entre las regiones. La tendencia de crecimiento es positiva: sin embargo, marginalmente en el 2011 la brecha de crecimiento es superior a la mantenida anteriormente, posiblemente la intervencin de PRODEL incidi positivamente para generar este incremento productivo superior a la tendencia esperada.
Regin fronteriza
8.00 Productividad (qq/ha) 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Frontera Norte 2008 2009 2010 Frontera Sur 2011 5.22 5.38 5.87 7.06 5.24 5.43 5.80 7.11
92
Efecto de la poda La poda del cacao consiste en la eliminacin de las partes vegetativas, improductivas o con problemas fitosanitarios en niveles no tolerables permitiendo darle al rbol una estructura area balanceada y estimular la emisin de frutos. Durante el periodo 2008-2011, el rendimiento de cacao en plantaciones podadas fue superior al rendimiento de las plantaciones no podadas (p<0,0001). Al comparar los rendimientos de cacao durante el periodo 2008-2011 en plantaciones que no han sido podadas, se encontr que los rendimientos alcanzados en los aos 2009, 2010 y 2011 fueron mayores a los rendimientos en alcanzados en el ao 2008. Mientras que en las plantaciones podadas, se determin que en el ao 2011 el rendimiento fue mayor que en los aos 2008, 2009 y 2010.
Promedio+ error estndar del rendimiento del cultivo de cacao en plantaciones podadas y no podadas, durante el periodo 2008-2011. AO 2008 2009 2010 2011 p-valor PLANTACIONES NO PODADAS 2,89+0,26 b 4,17+0,31 a 4,04+0,26 a 4,89+0,34 a 0,0001 PODADAS 4,52+0,22 c 5,01+0,22 c 6,40+0,29 b 7,86+0,31 a <0,0001
En el grfico que se presenta a continuacin, se aprecia la relacin entre el periodo productivo y rendimiento en plantaciones de cacao no podadas y podadas. En el ao 2011, las plantaciones de cacao podadas presentaron los rendimientos ms altos que en los aos 2008, 2009 y 2010.
93
NO PODADAS PODADAS Relacin entre el periodo productivo y rendimiento en plantaciones de cacao podadas y no podadas.
Efecto del mtodo control de malezas Los productores de cacao de las 4 provincias evaluadas realizan el control de malezas con mtodos manuales, qumicos y con motoguadaa. Al evaluar la relacin entre el tipo de control de malezas y el rendimiento del caf, se determin que los mayores rendimientos se obtienen utilizando los mtodos de control qumicos y con motoguadaa (P<0,0001). Al evaluar la productividad por periodo, se encontr que en el ao 2011, las plantaciones de cacao presentaron mayores rendimientos que en los aos 2008, 2009 y 2010, cuando las malezas fueron controladas con los tres mtodos.
Promedio+ error estndar del rendimiento del cultivo de cacao bajo el efecto de tres mtodos de control de malezas, durante el periodo 2008-2011. AO 2008 2009 2010 2011 p-valor METODO DE CONTROL DE MALEZAS MANUAL MOTOGUADAA QUIMICO 3,94+0,19 c 4,35+0,61 c 6,47+0,82 b 4,42+0,18 c 5,58+0,65 c 7,01+0,76 b 5,38+0,24 b 8,36+1,04 b 7,64+0,83 b 6,36+0,24 a 11,17+1,18 a 9,70+0,94 a <0,0001 <0,0001 <0,0001
A continuacin se aprecia la relacin entre el rendimiento de caf y el tipo de control de malezas utilizado. En el ao 2011 los rendimientos fueron mayores cuando las malezas
fueron controladas con los mtodos manuales, qumicos y con motoguadaa, que en los aos 2008, 2009 y 2010.
MANUAL
MOTOGUADAA
QUIMICO Relacin entre el periodo productivo y el rendimiento en plantaciones de cacao bajo el efecto de tres mtodos de control de malezas.
Efecto del uso de microorganismos
Los microorganismos eficientes son una combinacin de microorganismos benficos de origen natural y comprenden un cultivo mixto de microorganismos benficos naturales, sin manipulacin gentica, presentes en ecosistemas naturales y fisiolgicamente compatibles. Durante el periodo 2008-2011, las plantaciones de cacao influenciadas por los microorganismos benficos, presentaron rendimientos mayores que las plantaciones donde no se han utilizado microorganismos (p<0,0001). Al evaluar los rendimientos de cacao
95
durante el periodo 2008 - 2011, se determin que en el ao 2011 fueron superiores a los rendimientos alcanzados en los aos 2008, 2009 y 2010, para plantaciones donde no se han aplicado microorganismos. Mientras que en las plantaciones donde se han aplicado microorganismos el rendimiento de cacao fue mayor en el ao 2011, que en los aos 2008, 2009 y 2010.
Promedio+ error estndar del rendimiento del cultivo de cacao en plantaciones que han utilizado o no microorganismos benficos al suelo, durante el periodo 2008-2011. AO 2008 2009 2010 2011 p-valor USO DE MICROORGANISMOS NO UTILIZA SI UTILIZA 4,09+0,19 c 5,93+0,81 b 4,65+0,18 c 6,89+0,85 b 5,70+0,25 b 9,06+1,11 a 6,94+0,25 a 11,53+1,38 a <0,0001 0,0011
La relacin entre el periodo productivo y rendimiento en plantaciones de cacao donde se ha aplicado o no microorganismos se presenta a continuacin. Las plantaciones donde se aplicaron microorganismos presentaron los rendimientos ms altos en el ao 2011 que en los aos 2008, 2009 y 2010.
NO UTILIZA SI UTILIZA Relacin entre el periodo productivo y el rendimiento de cacao en plantaciones donde se ha utilizado o no microorganismos benficos.
Efecto de la densidad de siembra
96
Los productores de cacao de las 4 provincias evaluadas utilizan 20 diferentes densidades de siembra. Para poder analizar esta variable se han agrupado las densidades de siembra en 4 CATEGORAS: <625, 625-800, 800-1111 y > 1111 plantas ha-1. El rendimiento de cacao ms alto se present en plantaciones con ms de 1111 plantas ha-1, mientras que el rendimiento ms bajo se observ en plantaciones con menos de 625 plantas ha-1.
Rendimiento de plantaciones de cacao bajo el efecto de 4 densidades de siembra.
Al analizar el efecto de las 4 densidades de siembra sobre el rendimiento de cacao durante el periodo 2008-2011 se determin que el rendimiento en el ao 2011 fue superior al rendimiento en los aos 2008, 2009, 2010, en plantaciones con densidades de <625, 625800 y >1111 plantas ha-1 . Mientras que para plantaciones con densidades entre 800 y 1111 plantas ha-1, el rendimiento fue mayor en los aos 2010 y 2011 que en los aos 2008 y 2009.
Promedio+ error estndar del rendimiento del cultivo de cacao bajo el efecto de 4 tipos densidades de siembra, durante el periodo 2008-2011. DENSIDAD DE SIEMBRA (plantas ha ) 625-800 800-1111 3,93+0,25 c 3,91+0,56 b 4,46+0,24 c 4,33+0,56 b 5,96+0,32 b 5,22+0,65 a 7,21+0,36 a 6,04+0,74 a <0,0001 0,0834
-1
AO 2008 2009 2010 2011 p-valor
<625 2,77+1,05 b 2,81+0,92 b 3,44+0,93 b 4,16+0,97 a 0,0137
>1111 5,26+0,35 c 6,13+0,35 c 7,02+0,52 b 8,88+0,55 a <0,0001

97
A continuacin se presenta la relacin entre el rendimiento de cacao y la densidad de siembra. Las plantaciones con densidades de <625, 625-800 y >1111 plantas ha-1 presentaron los rendimientos ms altos en el ao 2011. Mientras que las plantaciones con densidades entre 800 y 1111 plantas ha-1 presentaron los rendimientos en los aos 2010 y 2011 que en los aos 2008 y 2009.
<625
625-800
800-1111 >1111 Relacin entre el periodo productivo y el rendimiento en plantaciones de cacao, bajo el efecto de cuatro densidades de siembra.
Relacin entre el rendimiento y las prcticas culturales en el cultivo de cacao
Para el ao 2011 el rendimiento de cacao fue explicado por la siguiente ecuacin:
98
Rendimiento = 0,18 + 2,24 (poda o no) + 3,45 (si utiliza microorganismos) + 1,31 (si maneja la sombra) + 0,01 (densidad de siembra).
Con una significacin estadstica para cada variable de: p=0,053 para poda; p=0,0001 para microorganismos; p=0,0210 para manejo de sombra; y p<0,0001 para densidad de siembra. Todas las variables evaluadas presentaron una relacin directamente proporcional con el rendimiento de cacao.
99

Ecuador Local Economic Development Program (Prodel) Draft: Cooperative Agreement #518-A-00-08-00002-00 Final Report

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ecuador Local Economic Development Program (Prodel) Draft: Cooperative Agreement #518-A-00-08-00002-00 Final Report

Uploaded by

Copyright:

Available Formats

ECUADOR LOCAL ECONOMIC DEVELOPMENT PROGRAM (PRODEL) DRAFT

Cooperative Agreement #518-A-00-08-00002-00 Final Report

PRODEL FINAL REPORT October 2007 through September 2012

SCAA SIGA TQM UCACNOR UNOCACE USAID WBC

PRODEL FINAL REPORT October 2007 through September 2012

LIST OF TABLES TABLE 1: PRODEL PARTNERSHIPS 8

PRODEL FINAL REPORT October 2007 through September 2012

LIST OF GRAPHS GRAPH 1: PRODEL AREAS OF INFLUENCE 179

PRODEL FINAL REPORT October 2007 through September 2012

PRODEL FINAL REPORT October 2007 through September 2012

PRODEL FINAL REPORT October 2007 through September 2012

PRODEL FINAL REPORT October 2007 through September 2012

Fostering Access and Availability of Financial Services

Designing and delivering f financial literacy trainings for farmers

PRODEL FINAL REPORT October 2007 through September 2012

Conducting trainings and workshops in agricultural financing and micro-factoring for

LOP Actual Nov 2007 Mar 2012 44

Formatted: English (U.S.)

21,600 13,600 10,800 75% $ 969,132 $51,100,780 300

22,820 29,998 17,909 $ 1,100 11,186,204 181,646,534 507

PRODEL FINAL REPORT October 2007 through September 2012

Stimulated a Ecuadorian coffee consumer culture of specialty coffee through a continuous

PRODEL FINAL REPORT October 2007 through September 2012

products such as dried golden berries and dried vegetable chips.

border regions of Ecuador

Dairy Improved logistics of operations by incorporating innovative transport technologies (GPS) to

Key Lessons Learned

PRODEL FINAL REPORT October 2007 through September 2012

Table 1: PRODEL Partnerships

Campaigns to promote Ecuadorian products and a consumer culture for high

PRODEL FINAL REPORT October 2007 through September 2012

Comment [A15]: How?

Financial Services Financial Services Promote exports Financial Services

PRODEL FINAL REPORT October 2007 through September 2012

PRODEL FINAL REPORT October 2007 through September 2012

Improve quality of Fino de Aroma Cacao

Increase supply of products with added value

Develop and implement communications and marketing strategies

PRODEL FINAL REPORT October 2007 through September 2012

Comment [A31]: This table should go in the

PRODEL FINAL REPORT October 2007 through September 2012

Formatted Formatted Comment [A46]: This paragraph seems out of place?

Formatted Formatted Formatted Formatted Formatted

Formatted Formatted Formatted

Formatted Formatted Formatted

SCAA Exposition 2009

Coffee Market Development

Nremberg, Germany. February 2009 Atlanta, Georgia April 2009

Formatted Formatted Formatted Formatted

PRODEL FINAL REPORT October 2007 through September 2012

Formatted Formatted Formatted Formatted

Expo Gourmet 2009 Good Life Fair 2010

ESCOFFEE Ecuadorian Central Government

Formatted Formatted Formatted Formatted Formatted

2010 Cacao Fair

Fancy Food Show EXPOFLOR

Provincial and Municipal Esmeraldas Governments PROECUADOR Fino de Aroma

Formatted Formatted Formatted

Formatted Formatted Formatted Formatted Formatted Formatted Formatted

CORPEI, MIPRO, MCPEC, USAID

Comment [A49]: ? How about :increase access ...

Formatted Formatted Formatted

Formatted Formatted Formatted Formatted