26 • Latin America • C&CI May 2013
Funding supports the revival of coffee and cocoa in Ecuador T
he coffee project funded by the CFC is entitled ‘Reconversion of small coffee farms into self-sustaining agricultural family units in Ecuador,’ and has been so successful that it hopes it could be a model for similar efforts elsewhere.
The project was developed against the background of a steady decline in coffee prices between 2000 and 2005, resulting in reduced income for farmers. Reduced income led to migration to cities or to other countries, leaving farms abandoned with higher rates of rural poverty and rural degradation.
The National Coffee Board of Ecuador (COFENAC) in collaboration with the National Association of Coffee Exporters (ANACAFE) developed the project in response to the crisis experienced at that time in the coffee sector, consulted the International Coffee Organization (ICO) and submitted it to the CFC. The project, at an estimated cost of US$3.20 million, was approved by the Common Fund in the form of a grant of US$1.12 million with co-financing from COFENAC and the US Department of Agriculture ‘DA Pl-480’ programme of US$860,000, with counterpart contributions of US$1.22 million from national institutions.
The overall objective of the project was to alleviate poverty in coffee-growing families through the introduction of new, more profitable agricultural activities that guarantee higher income levels, greater food security and preservation of natural resources.
Self-sustaining units
This objective was to be realized through reconversion of coffee farms into self- sustaining agricultural units through diversification of their agricultural production systems based on the principles of income security, food security and natural resources conservation. The project also promoted processing of primary commodities and the development of co-operative marketing channels for the local market.
Cocoa and coffee are both important to Ecuador’s economy
C&CI has obtained details of highly successful projects funded by the Common Fund for Commodities (CFC) and by the cocoa industry that are helping coffee and cocoa farming in Ecuador to make a comeback
The project was a model for sustainable development, motivating organisations to get involved in social development. The introduction of new production techniques on farms, agro-industry and co-operative marketing, contributed to enhanced household incomes and overall food security and poverty alleviation in the project area.
One of the specific results achieved during implementation of the project was organizational strengthening. “It should be emphasized,” said the CFC, “that this project had a dual nature, as it had a direct beneficiary/producer focus as well as a focus on institutional strengthening. “The latter aspect was reflected in the importance of creating the institutional capacity in producer organisations to operate effectively as well as within COFENAC, the project executing agency, to develop effective strategies which can be replicated elsewhere.
“Thanks to the project investment channeled through COFENAC a substantial income increase for some 1,250 producer families was obtained. In fact, the project resulted in a more than three-fold income increase for these families.”
Organisational strengthening activities involved the direct participation of 1,244 small coffee family units (including 101 female heads of households), organised into 31 producer organisations in the provinces of Manabí (10) El Oro (6) and Loja (15).
Direct participation
The training focused on technical management of sustainable farms, leadership and general management and served to strengthen the social, administrative and legal capacities of the producer organisations involved. The collection of funds of approximately US$3.8 million allowed for the implementation of complementary sub-projects further contributing to local development and organizational strengthening.
An Internal Control System (ICS) was established within the farmers’ organisations, which constantly monitored the achievements against targets and served as a decision making tool for deployment of resources to areas of need. A revolving fund was established to
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